Here are 1-3 brief analogies for Scully Royalty (SRL):

• The Berkshire Hathaway of royalties and passive investments.
• Franco-Nevada for a broader range of assets beyond precious metals.

• Mineral Royalties: These are passive income streams derived from owning rights to a percentage of the production or revenue from various mining operations (e.g., iron ore, precious and base metals) conducted by third parties.
• Streaming Agreements: These involve providing upfront capital to a producer in exchange for the right to purchase a percentage of future mineral production at a predetermined discounted price.
• Industrial Royalties: These are passive income streams generated from owning rights to a percentage of revenue or production from certain industrial assets or processes.

Scully Royalty (symbol: SRL) is a royalty company primarily focused on its 7% net profits interest (NPI) royalty from the Scully Mine (formerly Wabush Scully Mine) located in Labrador, Canada.

For a royalty company, its "customers" are typically the operating entities that extract resources or generate revenue from the underlying assets and then pay the agreed-upon royalties. In the case of Scully Royalty:

• Its major customer, or more accurately, the primary payor of its royalty, is Tacora Resources Inc., which operates the Scully Mine.
• Tacora Resources Inc. is a privately held company and does not have a public stock symbol.

Therefore, Scully Royalty primarily sells (or rather, derives its income from an agreement with) one specific company, Tacora Resources Inc., which is a private entity.

Samuel S. Morrow, President, Chief Executive Officer, Chief Financial Officer and Director

Mr. Morrow became President and Chief Executive Officer of Scully Royalty Ltd. on May 1, 2021, and has served as Chief Financial Officer since 2017. He was also the Deputy Chief Executive Officer from 2017 to 2021. Prior to his roles at Scully Royalty, Mr. Morrow was the Vice President of Tanaka Capital Management and held positions as Treasurer, Chief Financial Officer, and Chief Operating Officer of the Tanaka Growth Fund. He is also the CEO of Merkanti.

Michael J. Smith, Executive Chairman and Director

Mr. Smith assumed the role of Executive Chairman of Scully Royalty Ltd. on May 1, 2021, after serving as the President and Chief Executive Officer from June 2017. He has extensive experience as a director and in executive positions across various publicly traded and private companies, with a background in corporate finance and restructuring. From 1997 to 2011, as CEO, he oversaw a period of spin-offs and restructurings that generated 15% annualized shareholder returns.

Silke S. Brossmann, Independent Director

Ms. Brossmann is an independent business consultant and coach with experience across the automotive, plant engineering, cement, franchising, and consulting industries. She previously served as the vice chairperson of KHD Humboldt Wedag International AG. Her past roles include Chief Financial Officer of Management One Human Capital Consultants Limited and Head of Investor Relations for Koidl & Cie Holding AG.

Shuming Zhao, Independent Director

Dr. Zhao is a Senior Distinguished Professor and Honorary Dean of the School of Business at Nanjing University, China. Since 1994, he has provided management consulting services to numerous Chinese and international firms. He is also a director at Daqo New Energy Corp. (China) and JSTI Group (China) Ltd. Additionally, he has been a visiting professor at the Marshall School of Business, University of Southern California, USA, since 1997.

Jochen Dümler, Independent Director

Mr. Dümler served as the President and Chief Executive Officer of Euler Hermes North America from 2010 to 2015. Before that, he was a member of the Board of Management of Euler Hermes Kreditversicherung AG from 2002 to 2010, and a member of the Board of Management of PRISMA Kreditversicherung AG from 1995 to 2002.

The accelerating global transition to a low-carbon economy and circular economy principles represents an emerging threat to Scully Royalty Ltd.'s core mineral royalty assets, particularly those related to iron ore and industrial sands.

• Green Steel Initiatives: The steel industry, a major consumer of iron ore, is undergoing a profound transformation with significant investments in decarbonization technologies such as hydrogen-based Direct Reduced Iron (DRI). This shift could alter the specific demand for certain qualities of iron ore, potentially making some conventional deposits less competitive or reducing overall demand for newly mined ore due to increased recycling.
• Circular Economy for Materials: Broader adoption of circular economy models across industries could lead to increased recycling and reuse of materials like glass and construction aggregates, thereby reducing the long-term demand for virgin industrial sands (silica).
• Energy Transition: The ongoing global transition away from fossil fuels, if accelerated, could decrease demand for silica sand used as proppant in hydraulic fracturing.

These trends are not merely cyclical commodity fluctuations but represent structural shifts in industrial demand and supply chains, potentially impacting the long-term value and production volumes of the underlying assets from which Scully Royalty derives its revenue.

Global Iron Ore Market

• The global iron ore market was valued at approximately USD 275.23 billion in 2024 and is projected to reach USD 313.02 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 4.0% from 2025 to 2030. Other estimates place the 2024 value at USD 297.82 billion, growing to USD 392.11 billion by 2032 with a CAGR of 2.7% (2024-2032). Another source indicates a value of USD 372.00 billion in 2024, projected to reach USD 498.78 billion by 2035 with a CAGR of 2.74% (2025-2035).

Regional Iron Ore Markets

North America

• The North America iron ore market generated a revenue of USD 12,352.1 million in 2024 and is expected to grow at a CAGR of 4.4% from 2025 to 2030, reaching a projected revenue of USD 14,439.0 million by 2030.
• The U.S. iron ore market specifically generated USD 4,205.9 million in 2024 and is expected to reach USD 5,024.7 million by 2030, with a CAGR of 4.9% from 2025 to 2030.
• North America is considered the fastest-growing regional market, with a projected CAGR of approximately 4.5% during 2026–2032.

Europe

• The Europe iron ore market generated a revenue of USD 35,089.9 million in 2024 and is expected to grow at a CAGR of 4.2% from 2025 to 2030, reaching a projected revenue of USD 39,840.8 million by 2030.
• Another estimate states the Iron Ore Mining industry in Europe had a market size of €9.5 billion (approximately USD 10.3 billion) in 2025.
• The EU iron ore market is forecast to grow to 119 million tons in volume and USD 13.6 billion in value by 2035.

Asia Pacific

• The Asia Pacific iron ore market generated a revenue of USD 192,594.4 million in 2024 and is expected to reach approximately USD 219,169.3 million by 2030, with a CAGR of 3.9% from 2025 to 2030.
• This region dominated the global iron ore market with a 70.0% revenue share in 2024.
• The market is forecast to grow at a CAGR of +2.8% in volume and +5.1% in value until 2035, reaching 3,493 million tons and USD 401.5 billion respectively.

Latin America

• The Latin America iron ore market generated a revenue of USD 19,449.7 million in 2024 and is expected to reach approximately USD 22,026.1 million by 2030, with a CAGR of 3.3% from 2025 to 2030.
• The market is expected to grow at a significant CAGR of 5.4% during the forecast period of 2025-2031.
• Brazil's iron ore market alone generated USD 11,103.7 million in 2024 and is expected to reach USD 12,756.3 million by 2030, with a CAGR of 3.5% from 2025 to 2030.

Africa (Middle East & Africa - MEA)

• The Middle East & Africa (MEA) iron ore market generated a revenue of USD 15,744.3 million in 2024 and is projected to reach USD 17,544.1 million by 2030, growing at a CAGR of 5.5% from 2025 to 2030.
• Africa's iron ore market is projected to reach 79 million tons in volume and USD 9.1 billion in value by 2035, with a volume CAGR of +0.3% and a value CAGR of +2.5% from 2024 to 2035.
• Another report projects the Africa Iron Ore Market to grow at a significant CAGR of 6.4% from 2025-2031.

Scully Royalty Ltd. (SRL) is expected to have its future revenue growth over the next 2-3 years primarily driven by factors related to its core iron ore royalty interest. The company's focus is on maximizing earnings from this interest.

Here are 3 expected drivers of future revenue growth for Scully Royalty:

1. Increased Iron Ore Production Volume: There are plans to double production from the Scully Iron Ore mine, where Scully Royalty holds a net revenue royalty interest. The mine currently has a capacity of six million tonnes per annum, producing a premium iron ore product. A significant increase in the volume of iron ore shipped from the mine would directly lead to higher royalty payments and, consequently, increased revenue for Scully Royalty.
2. Sustained Operational Stability and Financial Health of Tacora Resources: Tacora Resources Inc., the operator of the Scully Mine, successfully emerged from Companies' Creditors Arrangement Act (CCAA) proceedings in September 2024. This restructuring, which included a reduced debt burden, a leaner operating cost profile, and backing from a new consortium of well-capitalized shareholders, significantly strengthens the mine operator's long-term sustainability. The financial stability and operational improvements of Tacora Resources reduce the risk of royalty payment disruptions and support consistent and potentially growing royalty revenues for Scully Royalty.
3. Favorable Global Iron Ore Prices: Scully Royalty's revenue is directly linked to the market price of iron ore, as its royalty is a percentage of the net revenue from shipments. Positive trends in global iron ore prices, which are influenced by macroeconomic factors such as the Chinese economy, would lead to higher royalty payments from the Scully Mine and contribute to revenue growth for Scully Royalty.

Share Repurchases

There is no significant public information available regarding share repurchases by Scully Royalty Ltd. in the last 3-5 years.

Share Issuance

• Scully Royalty's board of directors approved two stock dividends on April 30, 2021, aimed at improving shareholder value and liquidity by increasing the number of shares outstanding without diluting individual shareholder positions.
• On November 30, 2021, Scully Royalty distributed an 8% stock dividend to shareholders of record as of November 15, 2021.

Inbound Investments

• In September 2024, Tacora Resources Inc., the operator of the Scully iron ore mine (from which Scully Royalty derives its revenue), emerged from creditor proceedings with a new consortium of well-capitalized shareholders.
• This transaction included a minimum of a $250 million equity investment in Tacora by the consortium, comprising Cargill, Millstreet Capital Management, and O'Brien Staley Partners.

Outbound Investments

Scully Royalty has been in the process of divesting its non-royalty assets, such as merchant banking operations, to focus solely on its iron ore royalty interest.

Capital Expenditures

• Scully Royalty's direct capital expenditures have been minimal, with approximately -$61,855 reported for the last 12 months.
• The operator of the Scully Mine, Tacora Resources, has commenced a multi-year capital investment and ramp-up plan to restore the mine to its historic production capacity of six million tonnes per annum of high-grade iron ore concentrate. This initiative is aimed at optimizing operations and enhancing the mine's long-term productivity, which indirectly benefits Scully Royalty's revenue stream.