Author: Atrium Research August 26, 2026
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
PLEASE REVIEW THE DISCLOSURES AT THE BOTTOM OF THE PAGE
What you need to know:
- Sailfish reported Q2 revenue of $1.3M (+87% YoY) and adjusted EBITDA of $0.5M. These were below our expectations due to Mako mining outside of the San Albino area and due to one-time bonus payments.
- The $168M sale to OR Royalties closed in early April, driving a $134.1M gain and $136.6M of net income. FISH repaid the $40M Wexford loan shortly after the sale closed.
- FISH ended the quarter with $130.8M in cash and marketable securities and no debt. Cash makes up 41% of the market cap.
This morning, Sailfish Royalty (FISH:TSXV, SROYF:OTC) reported its Q2 financial results, which came in mixed relative to our expectations. This was due to its partner Mako mining outside the original San Albino area as well as one-time senior management and director bonuses being issued. Nevertheless, the results were objectively strong with revenue up 87% YoY, gross margins of 96%, and continued share repurchases. FISH ended the quarter with $130.8M in cash and marketable securities, being 41% of its market cap, ready to be deployed into new royalties/streams. We are maintaining our BUY rating but temporarily removing our target price on FISH as we await the cash deployment.
Key Highlights
- Q2 revenue came in at $1.3M (+87% YoY), below our estimate of $1.7M. The growth was driven by royalty revenue of $0.8M (+35% YoY) and stream sales of $0.5M (vs. $0.1M in Q2/25).
- Mako reported Q2 production results of 12.4Koz of gold and 11.3Koz of silver, steady compared to recent quarters.
- Stream sales reflected 6,268oz of silver for $0.5M and nil oz of gold from gold streams. The lack of gold ounces was due to Mako mining outside of the original San Albino area.
- Gross profit was $1.3M (+87% YoY, 96% gross margin), well above our 85% estimate and significantly higher than the gross margins posted by its peers.
- Adjusted EBITDA was $0.5M (39% margin) vs. our estimate of $4.1M, due to the new gold stream only bringing in $1.8M (remainder that is booked as a fair value adjustment) and senior management fees/director fees largely increasing YoY from one-time bonuses. Excluding these bonuses, adjusted EBITDA would have been $2.8M.
- Q1 net income was $136.6M, above our estimate of $4.0M because of the $134.1M gain from the sale of the Spring Valley assets.
- Sailfish repurchased 498.2K shares over the six month period, representing 0.6% of all shares outstanding. Subsequent to the quarter, FISH repurchased an additional 364.9K shares.
- The Company ended Q2 with $114.1M in cash and $14.7M in marketable securities alongside no debt, having repaid the $40.0M Wexford loan plus $1.8M of interest in April.
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Atrium Research Ratings System
BUY: The stock is expected to generate returns of over 20% over the next 24 months.
HOLD: The stock is expected to generate returns of 0-20% over the next 24 months.
SELL: The stock is expected to generate negative returns over the next 24 months.
NOT RATED (N/R): Atrium does not provide research coverage on the respective company.
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