Newport has royalty interests in producing oil and gas permits in the Cooper Basin, Australia, and a mining project in British Columbia, Canada.
Newport holds up to a 2.5% gross overriding royalty on several permits in Australia. These include permits currently being operated and explored by Beach Energy Ltd. ("Beach") and Santos Ltd. ("Santos"), both companies are major Australian oil and gas producers.
Newport has a 100% interest in the Chu Chua massive sulphide deposit project in British Columbia, Canada.
Exploring, developing and operating oil and gas projects is an expensive business, with substantial sustaining capital requirements that are difficult to maintain in smaller companies.
However, the royalty portfolio over several permits in the Cooper Basin in Australia provides Newport with low-risk exposure to both the production and exploration upside of these permits. Newport has no obligation to contribute any capital to the development of the oil and gas permits in Australia, and as such, sees direct cash flow from the applicable royalties.