Metalla Royalty and Streaming Ltd. (MTA) saw its largest shareholder, Tether International, increase is position to over 12%. Tether has been a steady buyer since it first reported a 5.5% position in October, with six subsequent filings each reporting an increase in its ownership, highlights Adrian Day, editor of Global Analyst.
Although Tether has reportedly approached most of Metalla’s large shareholders about buying blocks of stock, most of the buying since the initial filing has been in the market. It is not thought that Tether has made any hostile efforts to control the company. Nonetheless, its position is approaching an ownership position where it can start to demand a board seat or otherwise have a say in the company’s direction (exercising its proxy rights and so on).
Metalla Royalty and Streaming Ltd. (MTA)
There are rumors (reasonably well-informed, I would say), that Metalla has had informal discussions with other royalty companies, but it’s not clear if any of these will progress. The company is not commenting.
Metalla is also now seeing strong growth in revenues from multiple mines. It also holds royalties on some significant long-duration projects, including IAMGOLD’s Gosselin, adjacent to its producing Cȏté mine in Ontario; Hudbay’s Copperworld in Arizona; and First Quantum’s Taca Taca, another copper project, in Argentina.
I do not think that Metalla is getting proper value in the market for these non-producing but long-duration royalties. It continues to trade at less than my estimate of net asset value.
Recommended Action: Buy MTA.
