Royalties Inc. Reports Q3 Results For September 30, 2025 and Success on Capstone Copper Lawsuit for 2% NSR on Cozamin Mine

Core Viewpoint - Royalties Inc. reported significant financial results for Q3 2025, highlighting a substantial increase in revenue driven by dividend income from Music Royalties Inc. and a successful legal outcome regarding a 2% net smelter royalty on Capstone Copper's Cozamin Mine [3][5]. Financial Performance - The company generated revenue of $41,240, reflecting a 60% increase, with $36,150 from dividend income and $5,090 from other royalty income [3]. - Operating expenses rose to $111,727, a 130% increase, primarily due to costs associated with OTC US listing, legal fees, and marketing efforts related to the Capstone lawsuit, resulting in an operating loss of $70,487 compared to $22,875 in Q3 2024 [3]. - A non-cash foreign exchange loss of $62,273 led to a net loss of $132,760 for the quarter, compared to a net loss of $31,454 in Q3 2024 [3]. - For the nine-month period, the net loss was $54,584, an improvement from a loss of $118,762 in the previous year [3]. Asset Growth - As of September 30, 2025, total assets increased to $2.775 million, up from $1.25 million at the end of 2024, largely due to a $1,525,000 investment in Music Royalties Inc., expected to generate $181,800 in annual dividend income [4]. Legal Developments - Royalties Inc.'s subsidiary, Minera Portree de Zacatecas, secured a legal victory confirming its entitlement to a 2% net smelter royalty on Capstone's Cozamin Mine, with the appellate court rejecting Capstone's appeal [5][10]. - The estimated amount owed to Minera Portree for past production is approximately $9 million, based on Capstone's public disclosures [5][8]. - The 2% NSR is projected to yield around $1.5 million annually, with potential future value estimated at $25 million due to ongoing copper price increases and additional resource potential [9]. Market Context - Capstone reported $234 million in net revenues in 2024, paying $4.4 million in royalties, indicating the financial significance of the royalties landscape [7]. - The ongoing legal disputes and the company's commitment to accountability may influence Capstone's management decisions moving forward [10].