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National Bank of Canada Maintains Versamet Royalties' Outperform Rating, $11 Price Target

BY MT Newswires | ECONOMIC | 09/24/25 11:33 AM EDT

11:33 AM EDT, 09/24/2025 (MT Newswires) -- National Bank of Canada on Wednesday retained Versamet Royalties (VMET.V)'s outperform rating and $11 price target.

Versamet Royalties announced it has purchased a 90% silver stream on the Rosh Pinah Zinc mine in Namibia and a 2.75% net smelter royalty on the Santa Rita mine in Brazil for upfront consideration of US$125 million and contingent consideration of up to $45 million.

The company is financing the transaction through an upsized $100 million revolving credit facility and a new $80 million term facility.

While the transaction would increase Versamet's net debt/EBITDA to 3-3.5x, the bank expects the company to be in a strong position to rapidly deleverage below ~2x ND/EBITDA by end 2026, while also pursuing additional accretive acquisition opportunities.

National Bank derived the price target from a 100% weighted 1.3x P/NAV target multiple.

Versamet traded at $9.29 per share at last look on the TSX Venture Exchange.

Price: 9.29, Change: +0.04, Percent Change: +0.43

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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