Versamet Royalties Posts Record Q2, Outlines Path to 35,000 GEOs by 2027

Versamet Royalties Corp (VMET) is stepping into the next chapter of its growth story. In a recent conversation with The KE Report, company president Paul Jones walked through Q2 results and the asset pipeline that, in his telling, sets up a step change in production through 2027.

**Q2 by the numbers**

For the second quarter, Versamet delivered 5,255 gold equivalent ounces (GEOs), bringing the year-to-date total north of 10,000 GEOs. Year-to-date revenues came in at roughly $48 million, with about half of that generated in Q2 alone. Operating cash flow in the quarter was just shy of $20 million (~$40 million YTD), and EBITDA was a near-twin at $19 million (~$37 million YTD).

The year-over-year growth was the headline. Jones noted that Q2 2026 revenue grew 392% versus Q2 2025, GEOs grew 256%, operating cash flow grew 506%, and EBITDA grew 747%. Jones framed those as "almost nonsensical" percentages, attributing them to a small starting base. Versamet was founded roughly four years ago, with 5,000 GEOs in 2023 and 10,000 in 2024.

Management is guiding to 20,000–23,000 GEOs in 2026 and a run rate of about 35,000 GEOs in 2027 once SK Creek comes onstream. Jones was clear that triple-digit growth is not the expectation from here, but the absolute scale-up is.

**Why partner quality matters**

Jones spent time on operator selection. He distinguished Versamet from "royalty" companies that hold long-dated optionality without cash flow. The current portfolio, in his view, is anchored by operators already producing and growing.

A few examples Jones cited:

- **Equinox / Greenstone**: Greenstone produced about 65,000 ounces last quarter, with mill throughput up 20% quarter-over-quarter and running above nameplate seven out of ten days. - **West African Resources / Kiyaka**: A multibillion-dollar Australian-listed producer that delivered 67,000 ounces from Kiyaka — a mine that only started about a year ago. - **Endeavor Silver / Colpa**: Throughput lifted from roughly 1,900 tons per day in Q1 to north of 2,500 tons per day this quarter — hitting the operator's target.

The pitch is that mine-life extensions, throughput improvements, and grade upgrades at these operator assets flow directly to Versamet's bottom line without further capital outlay.

**Rosh Pinah: silver by way of streaming**

For investors looking beyond gold, Jones highlighted Rosh Pinah, a long-life base-metals asset in production for over 50 years and now operated by Appian. Appian's RP 2.0 expansion — about 95% complete — is on track to double mill capacity to roughly 1.4 million tons per year. The new SAG mill was commissioned in June, with the underground decline scheduled for completion in early 2027. Jones noted the stream was priced against silver in the $30s, and current prices near the mid-$60s are boosting returns.

**Three near-term growth assets**

Jones flagged three assets he expects to drive the next leg of growth:

1. **SK Creek (3.52% gold stream with Skeena Resources)**: Described as the "cornerstone" of the portfolio. Construction is north of 60% complete, with first concentrate targeted for spring 2027 and commercial production around mid-2027. Management expects the asset to contribute about 10,000 GEOs over the first five years. Jones pointed to an upcoming project optimization study as a potential catalyst for life-of-mine extensions and high-grade core growth.

2. **Cabral Gold / QUQU (Brazil)**: An oxide project coming online "way ahead of schedule," with first gold expected in September 2026. Contribution to 2026 will be modest, but Jones flagged the sulfide potential underneath as the bigger prize.

3. **Southern Copper / El Palar (1% GRR, Mexico)**: A 65-million-pound copper mine that recently received board approval from Southern Copper. Construction is set to start in early 2027, with first production by 2029. At roughly $6 per pound copper, Jones estimated the asset could generate about $4.5 million per year to Versamet, or roughly 1,000 GEOs.

**Capital deployment outlook**

On M&A, Jones said Versamet has "no great pressure to add to the portfolio" after closing the SK Creek deal earlier in the year, but is actively evaluating opportunities. The team's sweet spot is the $100–150 million range, with a broader $25–250 million search. He framed the competitive landscape as favorable: junior royalty companies lack the capital, and major royalty companies are focused on billion-dollar deals that wouldn't move the needle — leaving Versamet in a "Goldilocks" middle bracket.

He also pointed to longer-dated optionality in Prairie Creek, Hackett River (which could benefit from northern Canadian infrastructure spending), and a royalty on Erdene's Zuun Mod in Mongolia.