Gold Royalty Corp: Q4 2024 Earnings Call Highlights

Gold Royalty Corp. (GROY) has released its Q4 2024 earnings report, showcasing a year of record revenue and positive operating cash flows. The company, which specializes in providing royalty financing solutions to the metals and mining industry, has built a diversified portfolio of royalty interests through strategic acquisitions. This portfolio has been the cornerstone of its financial success, with the company reporting significant growth in key metrics.

Record Revenue and Positive Cash Flow

Gold Royalty Corp. reported record revenue of $10.1 million for the year 2024, with total revenue, land agreement proceeds, and interest reaching $12.8 million. This financial performance is a testament to the strength of the company's portfolio and its strategic acquisitions. The company achieved positive operating cash flow of $2.5 million and an adjusted EBITDA of $4.8 million, reflecting the robustness of its business model.

Growth in Gold Equivalent Ounces (GEOs)

One of the key highlights from the report is the significant growth in Gold Equivalent Ounces (GEOs). The company reported 5,462 GEOs for the year 2024, demonstrating substantial growth compared to previous periods. Looking ahead, Gold Royalty Corp. expects an increase in GEOs to between 5,700 and 7,000 in 2025, driven by the ramp-up of three of its seven cash-flowing assets. This growth is expected to continue over the next five years, with the company anticipating a peer-leading growth of over 360% in GEOs, reaching between 23,000 and 28,000 by 2029.

Key Growth Assets

The expected increase in GEOs is supported by several key assets:

1. Côté Gold Mine: IAMGOLD expects gold production of 360,000-400,000 ounces in 2025 on a 100% basis from the full property. The company's primary focus is to achieve nameplate mill design capacity of 36,000 tonnes per day by the fourth quarter of 2025.

2. Borborema Project: Aura Minerals expects to produce 33,000-40,000 ounces of gold from Borborema in 2025, with commercial production expected in the second half of 2025.

3. Vareš Project: Adriatic Metals is forecasting 625,000-675,000 tonnes milled in 2025, with a ramp-up expected to be completed during the second half of 2025 to achieve 800ktpa.

Strategic Outlook

Gold Royalty Corp. remains optimistic about its growth trajectory, with expectations of strengthened cash flow generation and stable operating costs. The company plans to focus on debt repayment and disciplined growth while maintaining the flexibility to pursue new opportunities. The management's outlook suggests continued robust performance, supported by its strategic portfolio and favorable market conditions.

Portfolio Update

The company's portfolio update highlights several key developments:

1. Borborema Project: Construction capex is 100% committed, with Aura Minerals providing production guidance of 33,000 to 40,000 ounces of gold production from Borborema in 2025.

2. Borden Mine: Discovery Silver Corp. has entered an agreement to acquire the Porcupine complex, including the Borden operations, from Newmont Corporation for total consideration of $425 million. The transaction is expected to close in the first half of 2025.

3. Canadian Malartic / Odyssey Mine: Agnico Eagle Mines Limited confirmed that development activities at Odyssey remain on schedule, with ongoing ramp development and shaft sinking progressing as planned.

4. Côté Gold Mine: IAMGOLD Corporation announced that it had achieved successful startup of Côté, with a primary focus on achieving nameplate mill design capacity of 36,000 tonnes per day by the fourth quarter of 2025.

5. Cozamin Mine: Capstone Copper Corp. reported consolidated copper production for 2024 and provided operations and capital expenditure guidance for 2025. Cozamin Mine achieved 24,907 tonnes of copper production in 2024, with similar production expected in 2025.

Conclusion

Gold Royalty Corp.'s Q4 2024 earnings report paints a picture of a company on the rise. With record revenue, positive operating cash flows, and a strategic portfolio of royalty interests, the company is well-positioned for continued growth. The expected increase in GEOs and the ramp-up of key assets support a bullish outlook for the company. As Gold Royalty Corp. continues to focus on debt repayment and disciplined growth, investors can expect a robust performance in the years to come.