Gold Royalty’s 2025 Earnings Call: M&A Geography and Capital Priorities Clash

Date of Call: Mar 19, 2026

Financials Results

• Revenue: $5.2M in Q4, translating to 1,255 gold equivalent ounces; $17.8M for full year 2025, a 38% increase from 2024

Guidance:

• Expect 7,500 to 9,300 GEO in 2026, a 62% increase at midpoint from 2025 production.
• Longer-term outlook of 28,000 to 34,000 GEO in 2030, a peer-leading over 490% increase at midpoint from 2025.
• Assumes average gold price of $5,150/oz and copper price of $5.75/lb.

Business Commentary:

Revenue and Financial Performance:

• Gold Royalty Corp reported record revenue of $5.2 million for Q4 2025, representing an increase in both adjusted EBITDA and operating cash flow.
• The company's adjusted EBITDA for Q4 was $3.2 million, up from $2.5 million in the previous quarter and $1.2 million in the same quarter of the previous year.
• This financial growth was driven by higher cash flows from assets acquired in recent years and a continued focus on maintaining low operating costs.

Portfolio Expansion and Strategic Acquisitions:

• Gold Royalty Corp expanded its portfolio to 258 royalties and streams, including 8 cash flowing assets, since its IPO in March 2021.
• The company completed the acquisition of the Pedra Branca royalty, which grants 25% of net smelter returns from gold and 2% from copper, and an additional royalty in Borborema.
• These strategic acquisitions were facilitated by a strong balance sheet, allowing the company to opportunistically acquire accretive assets.

Guidance and Outlook:

• Gold Royalty Corp provided guidance for 7,500 to 9,300 gold equivalent ounces (GEO) in 2026, representing a significant increase from its 2025 production.
• The company's longer-term outlook for 2030 includes 28,000 to 34,000 GEO, with over 70% of this growth based on derisked assets that are already permitted, financed, and built.
• The optimistic outlook is supported by various asset updates, including expansions and permit progress, contributing to a steady stream of growth catalysts.

Sentiment Analysis:

Overall Tone: Positive

• Management reported 'record revenue, adjusted EBITDA and operating cash flow' and 'third consecutive quarter of positive free cash flow'. They stated the company is 'in a very strong financial position' and 'has the flexibility to execute our strategy in the long term'. The tone emphasized 'lots to get excited about' and 'peer-leading growth'.

Q&A:

• Question from Heiko Ihle (H.C. Wainwright & Co): Walk us through your thought process on potential M&A and discount rates given current geopolitical turmoil, and if you're focusing more on certain countries than before.
  Response: Management stays disciplined, evaluates opportunities based on consensus commodity prices, and sees no pressure to deploy capital in higher-risk jurisdictions, as ~85% of NAV is in low-risk North America.

• Question from Tate Sullivan (Maxim Group): Are you still focused mostly on copper and gold in evaluating assets, and did the tungsten asset sale demonstrate that strategy?
  Response: Focus remains on precious metals and conventional base metals like copper; the tungsten sale was opportunistic, as the buyer had a different strategic focus.

• Question from Tate Sullivan (Maxim Group): Can you comment on today's gold price move down and short-term market fluctuations?
  Response: Attributed the sell-off to risk-off trade from political turmoil, views such events as distractions from fundamentals; believes gold will ultimately rise due to currency debasement from unsustainable debt.

Contradiction Point 1

Availability of Q&A Session

Contradiction on whether a live Q&A session occurred.

N/A - N/A

2025Q4: Below are the transcripts of the Questions & Answers section... for the latest 2025Q4 quarter's earnings call - [Implicit from provided data]

N/A - N/A

20251106-2025 Q3: Here is a summary of the Q&A session from the Gold Royalty Corp. Q3 2025 Earnings Call. Based on the provided transcript, there are **no questions raised by participants**. - Summary of Q&A

Contradiction Point 2

Geographic Focus for M&A and Capital Deployment

Contradiction on whether the company is limiting M&A to stable, high-quality jurisdictions or is pressured to deploy capital in higher-risk regions.

Heiko Ihle (H.C. Wainwright & Co, LLC) - Heiko Ihle (H.C. Wainwright & Co, LLC)

2025Q4: The current volatility has led others to accept lower returns, but Gold Royalty maintains its standards. Regarding geography, ~85% of the company's net asset value is in North America, and there is no pressure to deploy capital in higher-risk regions. - John Griffith(CDO)

How are geopolitical turmoil and volatile gold prices influencing your M&A strategy, discount rates, and regional focus? - John Bair (Ascend Wealth Advisers)

2025Q2: While the company has a strong base in Canada and the U.S., it may look abroad in stable jurisdictions with high-quality assets and enforceable contracts, such as Brazil, Australia, and select parts of Africa. However, opportunities are less frequent. - Peter Behncke(CFO)

Contradiction Point 3

Capital Allocation Priority: Deleveraging vs. Shareholder Returns

Contradiction on the timeline and priority for returning capital to shareholders versus maintaining financial flexibility.

Heiko Ihle (H.C. Wainwright & Co, LLC) - Heiko Ihle (H.C. Wainwright & Co, LLC)

2025Q4: The volatility has led others to accept lower returns, but Gold Royalty maintains its standards. The focus on cash flow allows for disciplined capital deployment without pressure to accept lower returns. - John Griffith(CDO)

How are geopolitical turmoil and volatile gold prices influencing your M&A strategy, including discount rates and country-specific focus areas? - John Bair (Ascend Wealth Advisers)

2025Q2: The current priority is deleveraging. The company expects to be net debt-free by the end of 2026... Once in a steady, long-term free cash flow generating phase, they will be in a position to discuss returning capital to shareholders. - David Garofalo(CEO)

Contradiction Point 4

M&A Strategy and Capital Allocation Discipline

Contradiction on maintaining discipline versus seeking accretive deals in a competitive market.

Heiko Ihle (H.C. Wainwright & Co, LLC) - Heiko Ihle (H.C. Wainwright & Co, LLC)

2025Q4: The company remains disciplined and is not influenced by short-term market noise... Gold Royalty maintains its standards. - John Griffith(CDO)

How are geopolitical turmoil and volatile gold prices influencing your M&A strategy, discount rates, and focus on specific countries? - Email Question (Attributed to Conference Participant)

2025Q1: Gold Royalty's priority is disciplined capital allocation... The focus is on acquiring cash flowing or near-cash flowing royalties/streams. However, this market is increasingly competitive, so the company will maintain discipline, focus on accretive deals... - Peter Behncke(CFO)

Contradiction Point 5

Geographic Focus and Asset Prioritization

Contradiction on geographic focus from broad-based to predominantly North American.

Heiko Ihle (H.C. Wainwright & Co, LLC) - Heiko Ihle (H.C. Wainwright & Co, LLC)

2025Q4: Regarding geography, ~85% of the company's net asset value is in North America, and there is no pressure to deploy capital in higher-risk regions. - John Griffith(CDO)

How are geopolitical turmoil and volatile gold prices influencing your M&A strategy, discount rates, and regional focus? - Email Question (Attributed to Conference Participant)

2025Q1: The focus [on acquiring royalties] is on acquiring... cash flowing or near-cash flowing royalties/streams. However, this market is increasingly competitive... - Peter Behncke(CFO)