Apple is joining the energy transition: OR Royalties as a model, RE Royalties as a beneficiary

OR Royalties Demonstrates What Is Possible

OR Royalties has established itself as one of the leading companies in the field of precious metal royalties and demonstrates how efficient the royalty business model is. Unlike mining companies with mines that struggle with fluctuating production costs and geological uncertainties, OR Royalties operates as a specialized financial services provider. The company generates its revenue primarily from stakes in top-tier projects in stable jurisdictions such as Canada, Australia, and the US. According to its own figures, the company achieved a cash margin of nearly 97% in fiscal year 2025. This exceptional efficiency stems from the fact that OR Royalties incurs no direct operating costs for the extraction or processing of raw materials. Any increase in gold or silver prices flows almost directly into operating income. A key development project in OR Royalties' portfolio is the Cariboo Gold Project, where activities resumed following a brief hiatus early in the year with an extensive drilling program totaling 160,000 m. Additionally, the company is advancing the Tintic Project with partners, which is already contributing to gold production on a small scale and providing regional diversification. Analysts at major banks such as Barclays and BMO largely rate OR Royalties' stock as promising. With total revenue of USD 277.4 million, OR Royalties was able to fully repay its loans and has been debt-free ever since, which is a clear advantage in times of volatile interest rates.

RE Royalties Applies Royalty Concept to Clean Energy

RE Royalties is a pioneer, applying the proven OR Royalties concept to the renewable energy sector. Project developers in solar, wind, and storage often face financing challenges. RE Royalties provides these developers with capital and, in return, receives a contractually fixed share of gross revenue. Since these contracts typically run for periods of 20 to 25 years, they offer long-term stability. The remuneration is linked to revenue rather than profit, which largely shields RE Royalties from increases in the operator's operating costs. The company is currently active in the US market, as evidenced by its recent USD 9 million partnership with Solaris Energy, but has supported projects worldwide, thereby generating revenue streams. To further accelerate its own expansion, RE Royalties utilizes innovative financing instruments and most recently issued so-called green bonds with an attractive interest rate of 9%. To ensure shareholders also benefit, the RE Royalties board, in collaboration with financial advisors from PwC, announced a comprehensive strategic review aimed at making the company attractive to institutional investors.

Apple drives the market with massive energy demand

RE Royalties' business model also benefits from the massive energy demand of corporations like Apple, which, in turn, invests in renewable energy. With its "Apple 2030" goal, the company has committed to being climate-neutral across its entire value chain by the end of the decade. A large portion of Apple's carbon footprint, about 75%, comes from the electricity used to manufacture its products. To address this, Apple launched the Supplier Clean Energy Program. By early 2026, more than 300 suppliers have committed to switching to 100% renewable energy for production. This corresponds to over 17.8 GW of renewable energy capacity that is already online.

Material sourcing also plays an important role here, as the company reports that it aims to one day no longer need to extract resources from the earth. The increased use of disassembly robots like Daisy and Dave, which break down old devices into their individual parts, is expected to significantly reduce the demand for newly mined raw materials in the long term and even alter the supply side of the raw materials markets. When Apple or its suppliers initiate projects, they need partners who can provide capital flexibly and are knowledgeable about the sector. However, RE Royalties also benefits indirectly from this capital inflow, as the growing renewable energy market shines a spotlight on experienced professionals like RE Royalties.