GOLD ROYALTY PROVIDES UPDATE ON THE CÔTÉ GOLD MINE ROYALTY; FIRST GOLD POUR SUPPORTS 100% REVENUE GROWTH IN 2024

Rhea-AI Summary

Gold Royalty Corp. announces IAMGOLD's successful first gold pour at the Côté Gold Mine in Ontario, Canada. Gold Royalty holds a 0.75% NSR royalty over the southern portion of the mine, expecting significant revenue growth in 2024. IAMGOLD targets commercial production in the third quarter with a production guidance of 220,000 to 290,000 ounces of gold.

Insights

Financial Analyst

The commencement of gold production at IAMGOLD's Côté Gold Mine is a pivotal event for stakeholders in Gold Royalty Corp. With the initiation of a 0.75% net smelter return royalty on the southern portion of the mine, there is a direct influence on Gold Royalty's revenue streams. The projected 100% growth in expected revenue for 2024 is a substantial figure that merits attention from investors. This growth projection is contingent on the mine's ramp-up to commercial production and achievement of a 90% throughput rate by year's end.

It's important to consider the stability and potential longevity of this revenue source. With Côté Gold's anticipated mine life of over 18 years, this operation could provide a long-term cash flow for Gold Royalty. However, investors should be aware of the risks inherent in mining operations, such as fluctuating gold prices, operational challenges and potential environmental regulations that could affect profitability.

Mining Industry Analyst

The successful first gold pour at Côté Gold underscores the technical proficiency of IAMGOLD and the viability of the mine's infrastructure, particularly the crushing, HPGR and processing circuits. The mention of power consumption aligns with industry focus on energy efficiency and cost management, which are critical factors in the profitability of mining operations. As Côté Gold is poised to become one of Canada's largest operating gold mines, its performance will be closely watched by competitors and could potentially set benchmarks for operational efficiency.

For the mining sector, the steady run-rate and production guidance provided by IAMGOLD are indicators of the company's confidence in the mine's capabilities. The long-term prospects of Côté Gold, coupled with significant opportunities for growth, suggest that the mine could become a key player in the market, influencing not only Gold Royalty's portfolio but also the regional mining landscape in Ontario.

Market Research Analyst

Gold Royalty's association with Côté Gold Mine and the positive outlook for the mine's productivity could attract investor interest in the mining sector, particularly in gold-related assets. The anticipated industry leading growth profile mentioned by Gold Royalty's CEO reflects a strategic positioning that could resonate with market participants looking for growth opportunities within the natural resources sector.

However, it's important for investors to monitor gold market trends and the broader economic environment that could impact the demand and price of gold. The geopolitical climate, inflation rates and currency valuations are all external factors that can significantly influence the performance of gold mining stocks. A diversified portfolio that includes gold mining assets like Gold Royalty Corp. could be seen as a hedge against market volatility, but it is essential to balance such investments with a comprehensive risk assessment.

VANCOUVER, BC, April 1, 2024 /PRNewswire/ - Gold Royalty Corp. ("Gold Royalty" or the "Company") (NYSE American: GROY) is pleased to announce that IAMGOLD Corporation ("IAMGOLD") has completed its first gold pour at the Côté Gold Mine ("Côté Gold" or "Côté"), located in Ontario, Canada. Gold Royalty holds a 0.75% net smelter return ("NSR") royalty over the southern portion of the mine, which is expected to be incorporated into phase I of the mine plan.

David Garofalo, Chairman and CEO of Gold Royalty, commented: "We are thrilled to see IAMGOLD achieve first gold pour at Côté and are excited to see the continued ramp up of the mine through the remainder of the year. For Gold Royalty, this is a significant catalyst as Côté will be a meaningful contributor to our 100% growth in expected revenue in 2024. As one of our cornerstone assets, Côté represents the high-quality, long-life, and reliable operations which build the foundation of our portfolio and underpin our industry leading growth profile which extends towards the end of the decade."

As announced by IAMGOLD on March 31, 2024, commissioning activities at Côté have been progressing well, with performance achieved in the crushing, HPGR and processing circuits within expectations, including power consumption. IAMGOLD stated with first gold pour now achieved, the next step and focus is on the ramp up of the operation to commercial production in the third quarter, and towards the goal of exiting the year at a 90% throughput rate. IAMGOLD's production guidance from Côté this year, on a 100% basis, is unchanged at 220,000 to 290,000 ounces of gold, assuming the remaining milestones are achieved. At steady run-rate, Côté Gold is expected to be one of the largest operating gold mines in Canada with an expected mine life exceeding 18 years and significant opportunities for growth.

About Gold Royalty Corp.

Gold Royalty Corp. is a gold-focused royalty company offering creative financing solutions to the metals and mining industry. Its mission is to invest in high-quality, sustainable, and responsible mining operations to build a diversified portfolio of precious metals royalty and streaming interests that generate superior long-term returns for our shareholders. Gold Royalty's diversified portfolio currently consists primarily of net smelter return royalties on gold properties located in the Americas.

Qualified Person

Alastair Still, P.Geo., Director of Technical Services of the Company, is a "qualified person" as such term is defined under Canadian National Instrument 43-101 ("NI 43-101") and has reviewed and approved the technical information disclosed in this news release.

Notice to Investors

For further information regarding the project updates regarding properties underlying the Company's interests, please refer to the disclosures of the operators thereof, including the news releases referenced herein. Disclosure relating to properties in which Gold Royalty holds royalty or other interests is based on information publicly disclosed by the owners or operators of such properties. The Company generally has limited or no access to the properties underlying its interests and is largely dependent on the disclosure of the operators of its interests and other publicly available information. The Company generally has limited or no ability to verify such information. Although the Company does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accurate.

Unless otherwise indicated, the technical and scientific disclosure contained or referenced in this news release, including any references to mineral resources or mineral reserves, was prepared by the project operators in accordance with Canadian National Instrument 43-101, which differs significantly from the requirements of the U.S. Securities and Exchange Commission ("SEC") applicable to domestic issuers. Accordingly, the scientific and technical information contained or referenced in this news release may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC.

Forward-Looking Statements:

Certain of the information contained in this news release constitutes "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and U.S. securities laws (collectively, "forward-looking statements"), including but not limited to statements regarding: our expectations and IAMGOLD's announced plans and expectations regarding Côté and the development thereof. Such statements can be generally identified by the use of terms such as "may", "will", "expect", "intend", "believe", "plans", "anticipate" or similar terms. Forward-looking statements are based upon certain assumptions and other important factors, including assumptions of management regarding the accuracy of the disclosure of the operators of the projects underlying the Company's projects, their ability to achieve disclosed plans and targets, macroeconomic conditions, commodity prices, and the Company's ability to finance future growth and acquisitions. Forward-looking statements are subject to a number of risks, uncertainties and other factors which may cause the actual results to be materially different from those expressed or implied by such forward-looking statements including, among others, any inability to any inability of the operators of the properties underlying the Company's royalty interests to execute proposed plans for such properties or to achieved planned development and production estimates and goals, risks related to the operators of the projects in which the Company holds interests, including the successful continuation of operations at such projects by those operators, risks related to exploration, development, permitting, infrastructure, operating or technical difficulties on any such projects, the influence of macroeconomic developments,  the ability of the Company to carry out its growth plans and other factors set forth in the Company's Annual Report on Form 20-F for the year ended December 31, 2023 and its other publicly filed documents under its profiles at www.sedarplus.ca and www.sec.gov. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

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SOURCE Gold Royalty Corp.

FAQ

What is the name of the company mentioned in the press release?

Gold Royalty Corp.

Where is the Côté Gold Mine located?

Ontario, Canada

What is the ticker symbol for Gold Royalty Corp.?

GROY

What is the net smelter return royalty percentage held by Gold Royalty over the southern portion of the Côté Gold Mine?

0.75%

What is IAMGOLD's production guidance for Côté Gold Mine in 2024?

220,000 to 290,000 ounces of gold