GOLD ROYALTY REPORTS SECOND QUARTER 2024 RESULTS; CONTINUED GROWTH IN OPERATING CASH FLOW
Gold Royalty Corp. (NYSE American: GROY) reported its Q2 2024 results, highlighting continued growth in operating cash flow. Key points include:
- Revenue increased 300% year-over-year to $1.8 million
- Positive operating cash flow of $1.0 million for the second consecutive quarter
- On track to achieve annual guidance of 6,500-7,000 GEOs ($13-14 million in Total Revenue)
- Completed acquisition of Vares Copper Stream for $50 million
- Published second annual Asset Handbook and Sustainability Report
The company's portfolio saw significant developments, including commercial production at IAMGOLD's Côté Gold Mine and progress at Adriatic Metals' Vares Silver Project. Gold Royalty expects further growth in H2 2024 with the ramp-up of key assets.
Gold Royalty Corp. (NYSE American: GROY) ha riportato i risultati per il secondo trimestre del 2024, evidenziando un costante aumento del flusso di cassa operativo. I punti chiave includono:
- I ricavi sono aumentati del 300% rispetto all'anno precedente, raggiungendo $1,8 milioni
- Flusso di cassa operativo positivo di $1,0 milioni per il secondo trimestre consecutivo
- Sulla buona strada per raggiungere le previsioni annuali di 6.500-7.000 GEOs (da $13 a $14 milioni in totale ricavi)
- Completata l'acquisizione del Vares Copper Stream per $50 milioni
- Pubblicato il secondo manuale annuale sugli asset e il rapporto di sostenibilità
Il portafoglio della società ha visto sviluppi significativi, tra cui la produzione commerciale presso la miniera d'oro Côté di IAMGOLD e i progressi nel progetto di argento Vares di Adriatic Metals. Gold Royalty si aspetta ulteriori crescite nel secondo semestre del 2024 con l'aumento dei principali asset.
Gold Royalty Corp. (NYSE American: GROY) informó sobre sus resultados del segundo trimestre de 2024, destacando un crecimiento continuo en el flujo de caja operativo. Los puntos clave incluyen:
- Los ingresos aumentaron un 300% interanual alcanzando los $1.8 millones
- Flujo de caja operativo positivo de $1.0 millón por segundo trimestre consecutivo
- En camino para alcanzar la guía anual de 6,500-7,000 GEOs ($13-14 millones en ingresos totales)
- Se completó la adquisición de Vares Copper Stream por $50 millones
- Se publicó el segundo manual anual de activos y el informe de sostenibilidad
El portafolio de la empresa experimentó desarrollos significativos, incluyendo producción comercial en la mina de oro Côté de IAMGOLD y avances en el proyecto de plata Vares de Adriatic Metals. Gold Royalty espera un crecimiento adicional en la segunda mitad de 2024 con la expansión de activos clave.
골드 로열티 코퍼레이션(Gold Royalty Corp. NYSE American: GROY)은 2024년 2분기 실적을 발표하며 운영 현금 흐름의 지속적인 성장을 강조했습니다. 주요 사항은 다음과 같습니다:
- 수익이 전년 대비 300% 증가하여 180만 달러에 도달했습니다.
- 두 번째 연속 분기 동안 100만 달러의 긍정적인 운영 현금 흐름을 기록했습니다.
- 6,500-7,000 GEO(총 수익 1,300만-1,400만 달러)라는 연간 가이던스를 달성할 준비가 되어 있습니다.
- 5천만 달러에 Vares Copper Stream 인수를 완료했습니다.
- 두 번째 연차 자산 핸드북 및 지속 가능성 보고서를 발행했습니다.
회사의 포트폴리오는 IAMGOLD의 코테 금광에서 상업 생산과 아드리틱 메탈스의 바레스 은 프로젝트에서의 진전을 포함한 중요한 발전을 보였습니다. 골드 로열티는 주요 자산의 확대와 함께 2024년 하반기에 추가 성장을 기대하고 있습니다.
Gold Royalty Corp. (NYSE American: GROY) a annoncé ses résultats pour le deuxième trimestre 2024, mettant en avant une croissance continue du flux de trésorerie d'exploitation. Les points clés incluent:
- Les revenus ont augmenté de 300 % par rapport à l'année précédente, atteignant 1,8 million de dollars
- Flux de trésorerie d'exploitation positif de 1,0 million de dollars pour le deuxième trimestre consécutif
- En bonne voie pour atteindre les prévisions annuelles de 6 500 à 7 000 GEOs (13 à 14 millions de dollars de revenus totaux)
- Acquisition du Vares Copper Stream pour 50 millions de dollars achevée
- Publication du deuxième manuel annuel des actifs et du rapport de durabilité
Le portefeuille de l'entreprise a connu des développements significatifs, notamment la production commerciale à la mine d'or Côté d'IAMGOLD et des progrès dans le projet de l'argent de Vares d'Adriatic Metals. Gold Royalty s'attend à une croissance supplémentaire au second semestre 2024 avec l'accélération des actifs clés.
Gold Royalty Corp. (NYSE American: GROY) hat seine Ergebnisse für das zweite Quartal 2024 veröffentlicht und hebt ein fortdauerndes Wachstum des operativen Cashflows hervor. Die wichtigsten Punkte sind:
- Der Umsatz ist im Jahresvergleich um 300% auf 1,8 Millionen Dollar gestiegen
- Positiver operativer Cashflow von 1,0 Millionen Dollar im zweiten aufeinanderfolgenden Quartal
- Auf Kurs, die jährlichen Prognosen von 6.500-7.000 GEOs (13-14 Millionen Dollar Gesamterlös) zu erreichen
- Erwerb des Vares Copper Stream für 50 Millionen Dollar abgeschlossen
- Zweites jährliches Asset-Handbuch und Nachhaltigkeitsbericht veröffentlicht
Das Portfolio des Unternehmens verzeichnete bedeutende Entwicklungen, einschließlich kommerzielle Produktion in der Côté Goldmine von IAMGOLD und Fortschritte im Vares Silberprojekt von Adriatic Metals. Gold Royalty erwartet weiteres Wachstum in der zweiten Hälfte von 2024 mit der Steigerung wichtiger Vermögenswerte.
- Revenue increased 300% year-over-year to $1.8 million
- Achieved positive operating cash flow of $1.0 million for the second consecutive quarter
- On track to meet annual guidance of 6,500-7,000 GEOs ($13-14 million in Total Revenue)
- Completed strategic acquisition of Vares Copper Stream for $50 million
- Cash Operating Expenses decreased by 9% compared to the same period in 2023
- Commercial production achieved at IAMGOLD's Côté Gold Mine
- Net loss of $2.236 million for the quarter, although improved from $2.496 million in Q2 2023
Insights
Gold Royalty's Q2 2024 results show significant growth and positive momentum. Revenue increased by
The acquisition of the Vares Copper Stream for
Investors should note the company's effective cost management, with Cash Operating Expenses decreasing by
Gold Royalty's portfolio is showing strong development progress across key assets. The Odyssey Mine reported record quarterly mining rates and gold production, while exploration efforts aim to expand resources further. The Vares Silver Project is ramping up production, with nameplate production expected in Q4 2024 and potential for increased throughput.
The Côté Gold Mine achieving commercial production is a significant milestone. Although production guidance is at the lower end of the range, the ramp-up to
The company's royalty generator model continues to yield results, with 43 royalties generated since 2021. This diversified approach provides multiple avenues for future revenue growth while maintaining low operating costs.
Gold Royalty's performance should be viewed in the context of broader market trends. The company's focus on gold and copper aligns with strong commodity prices, with their 2024 outlook based on gold at
The company's low carbon intensity portfolio positions it well in a market increasingly focused on ESG factors. This could attract environmentally conscious investors and potentially command a premium valuation. The diversified portfolio across various stages of development provides a balance of near-term cash flow and long-term growth potential, appealing to different investor profiles.
Investors should monitor the progress of key assets like Côté and Vares, as their successful ramp-up will be important for meeting 2024 guidance. The company's ability to continue generating new royalties through its model will be important for long-term growth prospects.
David Garofalo, Chairman and CEO of Gold Royalty, commented: "The second quarter of 2024 was transformational for Gold Royalty as we meaningfully enhanced our growth outlook through the Vares Copper Stream transaction. We are now on the cusp of several key development stage assets ramping up to full capacity such as Côté, which recently achieved commercial production, Vares which is set to achieve commercial production in the fourth quarter, and Borborema, which is on track for initial production in the first quarter of 2025. Our strategic acquisitions over the past twelve months and effective cost management have reinforced our robust financial outlook and resulted in our second consecutive quarter of positive operating cash flow. Beyond this exceptional portfolio performance, we also published our second annual Asset Handbook and Sustainability Report during the quarter, highlighting Gold Royalty as one of the lowest carbon intensity portfolios in the royalty and streaming sector."
Second Quarter 2024 Results Summary:
The following table sets forth selected financial information for the three and six months ended June 30, 2024:
For the three months | For the six months | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in thousands of dollars, except per share amounts) | ($) | ($) | ($) | ($) | ||||
Revenue | 1,794 | 468 | 4,688 | 1,235 | ||||
General, administrative and project evaluation costs | 2,133 | 2,666 | 5,008 | 6,090 | ||||
Net loss | (2,236) | (2,496) | (3,641) | (5,579) | ||||
Net loss per share, basic and diluted | (0.01) | (0.02) | (0.02) | (0.04) | ||||
Cash provided by (used in) operating activities | 987 | (1,337) | 1,323 | (3,398) | ||||
Non-IFRS and Other Measures | ||||||||
Total Revenue, Land Agreement Proceeds and Interest(1) | 2,215 | 557 | 6,400 | 2,527 | ||||
Cash Operating Expenses(1) | (1,655) | (1,822) | (3,915) | (4,345) | ||||
Adjusted Net Loss(1) | (1,737) | (2,487) | (2,667) | (3,805) | ||||
Adjusted Net Loss Per Share, basic and diluted(1) | (0.01) | (0.02) | (0.02) | (0.03) | ||||
Total Gold Equivalent Ounces ("GEOs")(1) | 947 | 282 | 2,967 | 1,324 | ||||
(1) | Total Revenue, Land Agreement Proceeds and Interest, Cash Operating Expenses, Adjusted Net Loss, Adjusted Net Loss Per Share, basic and diluted and Total GEOs are each non-IFRS measures and do not have a standardized meaning under IFRS. See "Non-IFRS Measures" for further information. |
For further detailed information, please refer to the Company's unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three and six months ended June 30, 2024, copies of which are available under the Company's profile at www.sedarplus.ca and www.sec.gov.
Second Quarter 2024 Highlights:
- Quarterly revenue of
$1.8 million $2.2 million 300% increase compared to the same period of 2023. In the second quarter of 2024, the Company recorded its first royalty payment from IAMGOLD's Côté Gold Mine and continued to benefit from its existing cash flowing royalties at the Borborema Project and the Canadian Malartic, Cozamin, and Borden Mines. - The Company remains on track to achieve its annual guidance of between 6,500 and 7,000 GEOs, which equates to approximately
$13 million $14 million - Achieved a second consecutive quarter of positive cash flows from operations of
$1.0 million $0.2 million - Ongoing cost management initiatives resulted in a continued trend of decreased Cash Operating Expenses. Cash Operating Expenses decreased by
9% compared to the same period of 2023. - Completed the acquisition of a copper stream (the "Stream") on the Vares Silver Project ("Vares") from Orion Mine Finance for
$50 million $34.5 million - Publication of the Company's second annual Asset Handbook and Sustainability Report, which outlined Gold Royalty had one of the lowest carbon intensity portfolios in the royalty and streaming sector.
Portfolio Update:
Odyssey Mine (
On July 31, 2024, Agnico Eagle announced its results for the second quarter of 2024, outlining record quarterly mining rates and gold production at Odyssey South of approximately 3,750 tonnes per day and 22,300 ounces of gold, respectively. Ramp development continued to exceed Agnico Eagle's target, reaching the third production level at East Gouldie at a depth of 832 metres while shaft sinking advanced and reached a depth of 680 metres as at June 30, 2024.
Based on positive results from the exploration program near the Odyssey mine during the first half of 2024, Agnico Eagle has approved a supplemental exploration budget near-mine drilling and regional exploration drilling during the second half of the year. The objective is to further expand the mineral resource footprint laterally and add inferred mineral resources in support of a potential future Shaft #2 and the broader "Fill the Mill" strategy at the Canadian Malartic complex.
For further information see Agnico Eagle's news release dated July 31, 2024, available under its profile on www.sedarplus.ca.
Vares Silver Project (
With the regards to an earlier ruling made by the Constitutional Court of
For further information see Adriatic's ASX Announcements dated July 15, 2024 and July 30, 2024.
Côté Gold Mine (
On May 24, 2024, IAMGOLD announced the completion of a
Additionally, IAMGOLD announced on August 2, 2024, that it had achieved commercial production at the Côté Gold Mine with the mill operating at an average of
On August 8, 2024 IAMGOLD announced its second quarter results including initial production results and gold sales from Côté. IAMGOLD also noted production guidance at Côté Gold is expected to be on the lower end of the guidance range of 220,000 to 290,000 ounces, as improvements to mill availability are made during the ramp-up of operations towards
For further information see IAMGOLD's news releases dated May 9, 2024, May 24, 2024, August 2, 2024, and August 8, 2024, available under its profile on www.sedarplus.ca.
Borborema Gold Project (
For further information see Aura's news release dated August 5, 2024, available under its profile on www.sedarplus.ca.
Ren Project (
In its management's discussion and analysis for the three months ended March 31, 2024, Barrick included an update on growth and exploration projects. At Carlin, underground conversion drilling commenced across all sites in the first quarter, with step-out growth drilling expected to commence early in the second quarter at a few key project areas.
In its management's discussion and analysis for the three and six months ended June 30, 2024, Barrick outlined that project capital expenditures had increased during the quarter due to the continuation of dewatering and detailed engineering at the Ren Project.
For further information see Barrick's management's discussion and analysis for the year ended December 31, 2023 and management's discussion and analysis for the three months ended March 31, 2024, and for the three and six months ended June 30, 2024, each available under its profile on www.sedarplus.ca.
Granite Creek Mine Project (
Additionally, on May 7, 2024 i-80 provided an update on planned programs for Granite Creek in 2024. The work being conducted in 2024 is expected to include definition and expansion drilling, underground development and test mining of the South Pacific Zone, and a Feasibility Study
On May 14, 2024, i-80 released results from the 2024 exploration program at Granite Creek, from drilling meant to define mineralization in the upper portion of the South Pacific Zone including 22.0 g/t Au over 29.0 meters, 18.4 g/t Au over 14.4 meters and 60.5 g/t Au over 4.1 meters.
For further information see i-80's news releases dated May 1, 2024, May 7, 2024, and May 14, 2024, available under its profile on www.sedarplus.ca.
Cozamin Mine (
On August 1, 2024, Capstone announced its second quarter 2024 results which outlined that second quarter 2024 production was
For further information see Capstone's news release dated May 2, 2024, and August 1, 2024 available under its profile on www.sedarplus.ca.
Royalty Generator Model Update
Our Royalty Generator Model continues to generate positive results with one new royalty added in the three months ended June 30, 2024. We have generated 43 royalties since the acquisition of Ely Gold Royalties Inc. in 2021 through this model.
We currently have 31 properties subject to land agreements and 6 properties under lease generating land agreement proceeds. The model continues to incur low operating costs with only
2024 Outlook
As previously disclosed, the company expects to see further growth in Revenue in the second half of 2024 with strong commodity prices, the expected ramp up of Côté towards
The Company remains on track to meet its previously disclosed updated forecast for 2024 of between approximately 6,500 and 7,000 GEOs, which equates to approximately
The 2024 foregoing outlook is based on an assumed gold price of
Investor Webcast
An investor webcast will be held on Wednesday, August 14, 2024, starting at 11:00 am ET (8:00 am PT) to discuss these results. Management will be providing an update to interested stakeholders on the Company's quarterly results including key recent catalysts that have been announced on the assets underlying the Company's royalties. The presentation will be followed by a question-and-answer session where participants will be able to ask any questions they may have of management.
To register for the investor webcast, please click the link below: https://www.bigmarker.com/vid-conferences/GROY-Q2-Results
A replay of the event will be available on the Gold Royalty website following the presentation.
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
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 royalties, stream and other interests, please refer to the disclosures of the operators thereof, including the news releases referenced herein and the other disclosures of such operators. Disclosure relating to properties in which Gold Royalty holds 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
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
Non-IFRS Measures
The Company has included in this document, certain performance measures, including: (i) Adjusted Net Loss and Adjusted Net Loss Per Share; (ii) total GEOs; (iii) Total Revenue, Land Agreement Proceeds and Interest; and (iv) Cash Operating Expenses which are each non-IFRS measures. The presentation of such non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently.
Adjusted Net Loss and Adjusted Net Loss Per Share
Adjusted Net Loss is calculated by adding back land agreement proceeds credited against mineral properties, loan interest earned on the gold-linked loan, convertible debentures-accretion, transaction related and non-recurring general administrative expenses* and share of loss and deducting the following from net loss: dilution income in associate, changes in fair value of derivative liabilities, embedded derivatives, short-term investments and gold-linked loan, gain on loan modification, foreign exchange gain (loss) and other income (expense). Adjusted Net Loss Per Share, basic and diluted have been determined by dividing the Adjusted Net Loss by the weighted average number of common shares for the applicable period. Management believes that they are useful measures of performance as they adjust for items which are not always reflective of the underlying operating performance of our business and/or are not necessarily indicative of future operating results. The following is a reconciliation of net loss to Adjusted Net Loss, Per Share, basic and diluted for the periods indicated:
For the three months | For the six months | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in thousands of dollars, except per share amounts) | ($) | ($) | ($) | ($) | ||||
Net loss | (2,236) | (2,496) | (3,641) | (5,579) | ||||
Land agreement proceeds credited against mineral properties | 163 | 89 | 1,213 | 1,292 | ||||
Loan interest | 258 | — | 499 | — | ||||
Convertible debentures - accretion | 426 | — | 821 | — | ||||
Transaction related and non-recurring expenses | 180 | 176 | 275 | 635 | ||||
Share of gain in associate | (152) | (350) | (100) | (222) | ||||
Dilution gain in associate | — | (12) | (9) | (12) | ||||
Change in fair value of derivative liabilities | — | (9) | — | (239) | ||||
Change in fair value of gold-linked loan | (311) | — | (950) | — | ||||
Change in fair value of short-term investments | 52 | 135 | (49) | 77 | ||||
Change in fair value of embedded derivatives | (179) | — | (370) | — | ||||
Foreign exchange loss | 100 | 59 | 13 | 107 | ||||
Loan modification (gain) loss | — | — | (310) | 249 | ||||
Other income | (38) | (79) | (59) | (113) | ||||
Adjusted Net Loss | (1,737) | (2,487) | (2,667) | (3,805) | ||||
Weighted average number of common shares | 153,412,808 | 144,560,621 | 149,595,753 | 144,425,846 | ||||
Adjusted Net Loss Per Share, basic and diluted | (0.01) | (0.02) | (0.02) | (0.03) | ||||
* | Transaction related, and non-recurring general administrative expenses comprised of operating expenses that are not expected to be incurred on an ongoing basis. During the six months ended June 30, 2024, transaction related and non-recurring professional fees primarily related to an ongoing tax review. |
Total GEOs
Total GEOs are determined by dividing Total Revenue, Land Agreement Proceeds and Interest by the average gold prices for the applicable period:
(in thousands of dollars, except Average Gold Price/oz and GEOs) | Average | Total | GEOs | |||
For three months ended June 30, 2024 | 2,338 | 2,215 | 947 | |||
For three months ended June 30, 2023 | 1,978 | 557 | 282 | |||
For six months ended June 30, 2024 | 2,157 | 6,400 | 2,967 | |||
For six months ended June 30, 2023 | 1,908 | 2,527 | 1,324 |
Total Revenue, Land Agreement Proceeds and Interest
Total Revenue, Land Agreement Proceeds and Interest are determined by adding land agreement proceeds credited against mineral properties and interest received under the gold-linked loan. The Company has included this information as management believes certain investors use this information to evaluate our performance in comparison to other gold royalty companies in the precious metal mining industry. The following is a reconciliation of Total Revenue, Land Agreement Proceeds and Interest to total revenue for the three months ended March 31, 2024 and 2023, respectively:
For the three months | For the six months | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in thousands of dollars) | ($) | ($) | ($) | ($) | ||||
Royalty | 943 | 399 | 2,005 | 633 | ||||
Advance minimum royalty and pre-production royalty | 613 | 25 | 1,443 | 356 | ||||
Land agreement proceeds | 401 | 133 | 2,453 | 1,538 | ||||
Loan interest | 258 | — | 499 | — | ||||
Total Revenue, Land Agreement Proceeds and Interest | 2,215 | 557 | 6,400 | 2,527 | ||||
Land agreement proceeds credited against mineral properties | (163) | (89) | (1,213) | (1,292) | ||||
Loan interest | (258) | — | (499) | — | ||||
Revenue | 1,794 | 468 | 4,688 | 1,235 | ||||
Cash Operating Expenses
Cash Operating Expenses are determined by deducting depreciation and share-based compensation from general, administrative and project evaluation costs. The Company has included this information as management believes certain investors use this information to evaluate our performance in comparison to other gold royalty companies in the precious metal mining industry. The following is a reconciliation of Cash Operating Expenses to general, administrative and project evaluation costs.
For the three months | For the six months | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(in thousands of dollars) | ($) | ($) | ($) | ($) | ||||
General and administrative costs | (2,120) | (2,590) | (4,976) | (5,841) | ||||
Project evaluation costs | (13) | (76) | (32) | (249) | ||||
General, administrative and project evaluation costs | (2,133) | (2,666) | (5,008) | (6,090) | ||||
Depreciation | 19 | 16 | 39 | 37 | ||||
Share-based compensation | 459 | 828 | 1,054 | 1,708 | ||||
Cash Operating Expenses | (1,655) | (1,822) | (3,915) | (4,345) | ||||
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SOURCE Gold Royalty Corp.
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