Gold Royalty Reports Strong Second Quarter Revenue

Rhea-AI Summary

Gold Royalty Corp. (NYSE American: GROY) reported strong second quarter 2024 revenue, with a 298% increase in Total Revenue, Land Agreement Proceeds and Interest to $2.2 million compared to the same period in 2023. The company's revenue growth was driven by cornerstone royalties, recent acquisitions, and its royalty generator model. Key highlights include:

- First royalty payment from IAMGOLD's Côté Gold Mine
- Continued benefits from existing cash-flowing royalties
- $0.4 million in land agreement proceeds from the royalty generator model
- On track to meet 2024 forecast of 6,500-7,000 GEOs ($13-14 million in Total Revenue)
- Expected growth in second half of 2024 due to strong commodity prices and new projects

Positive

• 298% increase in Total Revenue, Land Agreement Proceeds and Interest to $2.2 million in Q2 2024
• 153% increase in Total Revenue, Land Agreement Proceeds and Interest to $6.4 million for H1 2024
• First royalty payment received from IAMGOLD's Côté Gold Mine
• On track to meet 2024 forecast of 6,500-7,000 GEOs ($13-14 million in Total Revenue)
• Expected revenue growth in H2 2024 due to Côté ramp-up and Vares Project commercial production

Negative

• None.

Insights

Financial Analyst

Gold Royalty's strong second quarter revenue is a significant indicator of its financial health and future prospects. The reported 298% increase in revenue to $2.2 million is substantial and suggests effective management and successful execution of its royalty model. This substantial growth also reflects the strategic importance of their recent acquisitions and the commencement of payments from the Côté royalty. For retail investors, the short-term implications are positive, as the company's strong revenue growth is likely to boost investor confidence and potentially the stock price.

Long-term benefits include continued revenue from established royalties and future payments from upcoming projects like the Vares Project. Investors should keep an eye on commodity prices, as the company’s forecasts are based on assumed prices for gold and copper. Any significant deviation in these prices could impact profitability. The company's ability to meet its projected revenue of $13-$14 million for 2024 is critical. The launch of commercial production in the third and fourth quarters will be pivotal events to watch.

Overall, this news demonstrates the company’s strengthening position in the market, making it a potentially attractive investment for those looking for exposure to the gold royalty sector.

Market Research Analyst

The 300% increase in revenue is a remarkable achievement, underscoring the effectiveness of Gold Royalty's business strategy. The company’s unique royalty generator model seems to be paying off, creating a diversified revenue stream that is less susceptible to market fluctuations compared to traditional mining operations. This model also allows Gold Royalty to capitalize on rising commodity prices without the high risks associated with direct mining activities.

The commencement of payments from the Côté Gold Mine and contributions from other projects like the Borborema and Canadian Malartic Mines highlight the company's diverse portfolio. The expected ramp-up in production at these mines suggests a continuing positive revenue trend. Investors should note the strategic value of these diversified income sources, which reduce the company's risk exposure.

From a market perspective, Gold Royalty’s robust second-quarter performance may positively influence its stock price in the short term. Long-term investors might also find the company’s steady growth and revenue diversification strategy appealing, providing a balanced risk-reward profile in the gold investment space.

Tech Expert

While the main focus of the news is financial, it’s worth noting that technology plays a significant role in Gold Royalty's operations. Advances in exploration technology and data analytics have likely contributed to the effective identification and management of profitable royalty streams. Improved technologies in mining operations also benefit the company's partners, leading to more reliable and increased royalty payments.

For retail investors, understanding the role of technology might not be immediately obvious, but it’s a important component of the company’s competitive edge. Companies that leverage advanced technology in their processes often have better operational efficiencies and lower costs, contributing to improved financial performance.

In the long run, Gold Royalty’s commitment to incorporating cutting-edge technology could further enhance its ability to generate higher returns on its investments. Investors should look for updates on how the company plans to integrate new technologies into its royalty management strategy, as this could be a strong indicator of future growth potential.

•    Approximate 300% increase in both revenue and Total Revenue, Land Agreement Proceeds and Interest* from the same period of 2023.
•    Côté royalty, acquired in 2022, commences payments in the second quarter of 2024.

VANCOUVER, BC, July 22, 2024 /PRNewswire/ - Gold Royalty Corp. ("Gold Royalty" or the "Company") (NYSE American: GROY) is pleased to announce strong second quarter 2024 revenue and Total Revenue, Land Agreement Proceeds and Interest*, driven by the Company's cornerstone royalties, recent royalty acquisitions and its unique royalty generator model. All amounts are expressed in U.S. dollars unless otherwise noted.

Preliminary Second Quarter 2024 Revenue

Gold Royalty recorded preliminary second quarter 2024 Total Revenue, Land Agreement Proceeds and Interest* of $2.2 million (Revenue of $1.8 million), representing a 298% increase compared to the same period of 2023 and equating to 947 gold equivalent ounces ("GEOs")*. For the six months ended June 30, 2024, the Company recorded preliminary Total Revenue, Land Agreement Proceeds and Interest* of $6.4 million (Revenue of $4.7 million), representing a 153% increase compared to the comparable 2023 period and equating to 2,967 GEOs*.

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's royalty generator model added $0.4 million in land agreement proceeds in the quarter.

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 commercial production in the third quarter of 2024, and the commencement of commercial production at the Vares Project in the fourth quarter of 2024.

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 $13 million to $14million in forecasted Total Revenue, Land Agreement Proceeds and Interest.

The 2024 foregoing outlook is based on an assumed gold price of $2,000 per ounce and copper price of $4.25 per pound and on public forecasts, expected development timelines and other disclosure by the owners and operators of the properties underlying our interests and our assessment thereof.

* Total GEOs and Total Revenue, Land Agreement Proceeds and Interest are non-IFRS financial measures. See "Non-IFRS Measures" below.

Second Quarter 2024 Results and Webcast Details

Gold Royalty will release its quarterly financial and operating results for the three and six months ended June 30, 2024, on Tuesday, August 13, 2024, after market close.

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 Americas.

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: estimated future total GEOs and Total Revenues and Land Agreement Proceeds; expectations regarding the operations and/or development of the projects underlying the Company's royalty interests, including the estimates of the operators thereof;; expectations regarding the Company's growth; and statements regarding the Company's plans and strategies. 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 30, 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.

Non-IFRS Measures

We have included, in this document, certain performance measures, including: (i) Total Revenue, Land Agreement Proceeds and Interest; and (ii) GEOs 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.

Total Revenue, Land Agreement Proceeds and Interest reconciliation

Total Revenue, Land Agreement Proceeds and Interest are determined by adding land agreement proceeds credited against mineral properties and the gold-linked loan interest. 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. Below is a reconciliation of our Total Revenue, Land Agreement Proceeds and Interest to total revenue for the three and six-months ended June 30, 2024 and 2023, respectively:

		For the three months ended June 30				For the six months ended June 30
		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

GEOs

Total GEOs are determined by dividing Total Revenue, Land Agreement Proceeds and Interest by the average gold prices for the applicable quarter:

(in thousands of dollars, except Average Gold Price/oz and GEOs)		Average Gold Price/oz		Total Revenue, Land Agreement Proceeds and Interest		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

View original content:https://www.prnewswire.com/news-releases/gold-royalty-reports-strong-second-quarter-revenue-302202178.html

SOURCE Gold Royalty Corp.

FAQ

What was Gold Royalty Corp's (GROY) revenue growth in Q2 2024?

Gold Royalty Corp. (GROY) reported a 298% increase in Total Revenue, Land Agreement Proceeds and Interest, reaching $2.2 million in Q2 2024 compared to the same period in 2023.

When did Gold Royalty Corp. (GROY) receive its first royalty payment from the Côté Gold Mine?

Gold Royalty Corp. (GROY) received its first royalty payment from IAMGOLD's Côté Gold Mine in the second quarter of 2024.

What is Gold Royalty Corp's (GROY) forecast for GEOs in 2024?

Gold Royalty Corp. (GROY) forecasts between 6,500 and 7,000 Gold Equivalent Ounces (GEOs) for 2024, which equates to approximately $13 million to $14 million in Total Revenue, Land Agreement Proceeds and Interest.

When will Gold Royalty Corp. (GROY) release its Q2 2024 financial results?

Gold Royalty Corp. (GROY) will release its Q2 2024 financial and operating results on Tuesday, August 13, 2024, after market close, with an investor webcast scheduled for Wednesday, August 14, 2024.