How Fitzroy River’s Royalties Are Poised to Benefit from Key Project Advances
Fitzroy River Corporation reported steady royalty income for the June quarter and highlighted significant progress on several royalty projects, including government approvals for Buru Energy’s Rafael Gas Project and a major equity raise for Endura Mining’s Snowy River Gold development.
- Royalty income of $171,609 for June 2025 quarter; $619,145 over 12 months
- Government extends production licence application for Rafael Gas Project
- Bowden’s Silver Project advances with regulatory submissions completed
- Endura Mining raises A$150 million to develop Snowy River Gold Project
- Fitzroy holds diverse royalties across hydrocarbons, silver, and gold assets
Steady Royalty Income Maintains Cash Flow
Fitzroy River Corporation Ltd (ASX – FZR) reported royalty income of $171,609 for the June 2025 quarter, contributing to a total of $619,145 received over the 12 months to September 2025. This reflects a relatively stable revenue stream from its Weeks Royalty in the Gippsland Basin, where Fitzroy holds a 1% interest in a 2.5% royalty on hydrocarbons produced by ExxonMobil and Woodside Energy.
Despite some volatility in global oil and gas prices, Fitzroy’s cash position improved modestly during the quarter, with net cash inflows from operations of $35,000 and cash reserves reaching $770,000 at quarter-end. The company’s cash flow remains sensitive to commodity price fluctuations and geopolitical risks, particularly ongoing conflicts in the Middle East and Ukraine.
Buru Energy’s Rafael Gas Project Gains Momentum
Fitzroy’s royalties in the Canning Basin and Lennard Shelf, primarily linked to Buru Energy Limited, saw no receipts this quarter due to the Ungani Oilfield being under care and maintenance. However, significant progress was made on the Rafael Gas and Condensate Field, with government approval granted for a two-year extension to apply for a production licence. Environmental approval was also secured for a 2026 resource appraisal campaign, and a potentially material prospect named Flying Fox was identified beneath the Rafael field.
These developments, coupled with Buru’s strategic agreement with Clean Energy Fuels Australia to finance and operate Rafael LNG infrastructure, substantially de-risk the project and set the stage for a Final Investment Decision targeted for early third quarter 2026. Fitzroy’s 2-3% net wellhead royalties on these tenements position it to benefit from future production.
Silver and Gold Projects Progressing
The Bowden’s Silver Project in New South Wales, Australia’s largest undeveloped silver deposit, advanced with Silver Mines Limited completing all requested information submissions to the New South Wales Department of Planning, Housing and Infrastructure. Fitzroy holds a 2% net smelter return royalty on production from this project, which hosts a substantial mineral reserve of 180 million ounces of silver.
Meanwhile, Endura Mining (formerly Federation Mining) completed a A$150 million equity raising to fund development of the Snowy River Gold Project in New Zealand. Construction of the processing plant has commenced, and the company officially opened accommodation facilities for workers. Fitzroy holds a 1-3% overriding royalty on Snowy River, with Endura holding an option to buy out the royalty for approximately A$12 million indexed from March 2024. The project’s probable ore reserves and mineral resources total nearly 1 million ounces of gold, underscoring its significance.
Exploration and Resource Updates at Sam’s Creek
At the Sam’s Creek Gold Project, also in New Zealand and operated by Siren Gold Limited, exploration drilling recommenced in October 2025 aiming to upgrade the mineral resource estimate from inferred to indicated categories. Fitzroy holds a 1% royalty on all product from Sam’s Creek, which currently has a resource estimate of 953,000 ounces of gold. Siren targets an updated resource estimate and a comprehensive scoping study by mid-2026, potentially enhancing the project’s value and Fitzroy’s future royalty income.
Risks and Outlook
Fitzroy’s royalty income remains exposed to commodity price volatility, foreign exchange fluctuations, and operational risks such as production interruptions at key assets like the Gippsland Basin. Geopolitical tensions and trade uncertainties continue to cloud the outlook for oil and gas markets, which underpin a significant portion of Fitzroy’s revenue. Nonetheless, the company’s diversified royalty portfolio across hydrocarbons, silver, and gold provides a balanced exposure to multiple commodity cycles.
With key project approvals secured and substantial capital raised by operators on its royalty assets, Fitzroy is well positioned to benefit from advancing developments. Investors will be watching closely for updates on production milestones and royalty receipts in coming quarters.
Bottom Line?
Fitzroy’s steady royalties and advancing projects set the stage for potential growth, but commodity and geopolitical risks remain key watchpoints.
Questions in the middle?
- When will production restart at Buru Energy’s Ungani Oilfield to resume royalty income?
- Will Endura Mining exercise its option to buy out Fitzroy’s Snowy River royalty before mining begins?
- How will global commodity price volatility impact Fitzroy’s royalty receipts in the next 12 months?
