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SRL

Scully Royalty Ltd.

SRL

Scully Royalty Ltd. • NYSE
$7.06 ▲ 26.07% (+1.46)
Market Cap $104.65 M
52w High $9.99
52w Low $5.13
Dividend Yield 0.26%
P/E -7.13
Volume 182
Outstanding Shares 14.82M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q4-2024 $26.256M ▲ $19.761M ▲ $-10.627M ▼ -40.473% ▼ $-0.72 ▼ $-20.41M ▼
Q3-2024 $8.604M ▼ $7.093M ▲ $-332.5K ▲ -3.864% ▲ $-0.022 ▲ $-10.416M ▼
Q2-2024 $9.046M $5.574M $-9.961M -110.114% $-0.67 $11.101M
Q1-2024 $9.046M ▼ $5.574M ▼ $-9.961M ▼ -110.114% ▼ $-0.67 ▼ $11.101M ▲
Q4-2023 $14.219M $8.504M $250.5K 1.762% $0.015 $3.003M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q4-2024 $42.539M ▼ $438.095M $127.77M $302.277M
Q3-2024 $44.35M ▼ $438.095M ▲ $127.77M ▲ $302.277M ▼
Q2-2024 $46.156M ▼ $433.137M $121.151M $304.495M
Q1-2024 $47.321M ▼ $433.137M ▼ $121.151M ▼ $304.495M ▼
Q4-2023 $91.21M $452.467M $122.797M $322.459M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q4-2024 $-665K ▼ $-15.581M ▼ $-1.704M ▼ $-948K ▼ $0 $-15.561M ▼
Q3-2024 $-332.5K ▲ $-7.79M ▲ $-852K ▼ $-474K ▼ $0 $-7.78M ▲
Q2-2024 $-19.923M ▼ $-15.962M ▼ $4.464M ▲ $-209K ▼ $0 $-16.071M ▼
Q1-2024 $-9.961M ▼ $-7.981M ▼ $2.232M ▲ $-104.5K ▼ $0 ▲ $-8.036M ▼
Q4-2023 $250.5K $-2.051M $-3.17M $-101K $-5.21M $-2.106M

Five-Year Company Overview

Income Statement

Income Statement SRL’s income statement shows a small but fairly steady royalty revenue base, with profits that swing between modest gains and modest losses. Earnings have been volatile, suggesting that even small shifts in iron ore prices, production volumes, or costs can move the company from profit to loss. Operating profitability is thin, and recent results tilt back toward loss-making after a breakeven period, which underlines the sensitivity of the model to external conditions. Overall, the business looks stable in top-line terms but quite variable at the bottom line, reflecting both its narrow focus and exposure to commodity and operator performance.

Balance Sheet

Balance Sheet The balance sheet appears relatively simple and conservatively financed, with equity funding the bulk of assets and a modest amount of debt that has stayed broadly unchanged. Cash levels move around from year to year, which matters more here because the company is small and does not have a large buffer for prolonged weak periods. Asset levels have edged down from earlier peaks, but there is no sign of aggressive borrowing or heavy capital commitments. In short, the balance sheet looks reasonably solid, but its modest scale means resilience depends heavily on maintaining steady royalty inflows.

Cash Flow

Cash Flow Cash flow has been choppy, moving between positive and negative over the last few years, which is notable for a royalty business that has little to no capital spending. Because investment needs are minimal, free cash flow essentially mirrors operating cash flow, making operating performance the key driver of the company’s ability to fund dividends, debt service, and any potential new royalties. Periods of negative cash flow highlight the reliance on consistent mine production and timely royalty payments from the operator. The pattern suggests a business that can generate attractive cash in good conditions but does not yet have a long track record of stable, predictable cash generation.

Competitive Edge

Competitive Edge SRL’s main strength is its long-term royalty agreement on a high-grade iron ore mine, which gives it a clear and focused competitive position. This contract, extending for decades, provides a structural advantage versus many miners that face higher operating and capital risks. The quality of the underlying ore and the operator’s improvements in processing support the potential for premium pricing, which directly benefits SRL’s royalty stream. However, the company is highly concentrated: one mine, one operator, and one commodity. That concentration creates a meaningful vulnerability to operational issues at the mine, counterparty risk with the operator, and swings in iron ore demand and pricing.

Innovation and R&D

Innovation and R&D SRL’s “innovation” is mainly in its business model rather than traditional research and development. By choosing to become a pure-play royalty company and shedding non-core businesses, it has simplified its structure and sharpened its exposure to a single high-grade iron ore asset. Technological advances at the Scully mine—such as better ore processing and more efficient, lower-emission water treatment—belong to the operator, but they indirectly enhance SRL’s long-term royalty economics. Future upside innovations include the potential monetization of manganese byproducts and any new royalty deals SRL might pursue, though these are still more strategic and contractual than R&D-driven. Overall, the company benefits from its partner’s technology rather than investing heavily in its own.

Summary

SRL today is essentially a focused royalty stream on one high-grade iron ore mine, with a simple financial structure and limited direct operating risk. The long-dated royalty contract, the quality of the ore, and relatively low leverage are clear strengths, offering the potential for attractive cash generation when the mine runs well and iron ore markets are supportive. At the same time, earnings and cash flows have been uneven, underlining the company’s dependence on a single asset, a single counterparty, and a cyclical commodity. Future outcomes will likely hinge on the operator’s ability to sustain and ramp production, successfully monetize additional byproducts like manganese, and on SRL’s discipline in managing cash, dividends, and any new royalty acquisitions. The story is one of concentration and leverage to a specific asset: powerful when conditions are favorable, but inherently exposed when they are not.