Gold Royalty (GROY) 5 Nov 24 2024 Q3 Earnings call transcript

The third quarter of 2024 marked a significant inflection point for Gold Royalty Corp., with record revenues and a positive outlook for 2025. During the earnings call, management provided a comprehensive update on the company's performance, strategic initiatives, and future prospects. Here are the key takeaways from the call.

Record Revenues and Positive Outlook

Gold Royalty Corp. reported record revenues for the nine months ending September 30, 2024, and reiterated its full-year guidance for expected total revenue, land agreement proceeds, and interest of $13 million to $14 million. The company's focus on ramping up key assets across its portfolio has led to this positive outlook, with the expectation of more cash flowing assets in 2025 and stable commodity prices contributing to growing revenues and cash flows.

Strong Financial Performance and Operational Updates

Andrew Gubbels, the Chief Financial Officer, highlighted the strong financial performance during the quarter, with total revenue, land agreement proceeds, and interest of $2.6 million, a 90% increase relative to the third quarter of 2023. The company maintained stable cash operating expenses below $2 million for the quarter and is on track for its first year of positive cash flow from operations.

Operational updates included the progress at the Cote Gold Mine in Ontario and the Vares Mine in Bosnia, both showing significant growth and the expectation of full revenue growth from both assets in 2025. Additionally, Jackie Przybylowski, Vice President of Capital Markets, provided updates on several other key projects across the portfolio, including the Odyssey mine, Borborema project, Tonopah West project, and Isabella Pearl mine.

Growth Opportunities and Catalysts

The call highlighted several growth opportunities and catalysts across the portfolio, including the ramp-up of the Cote Gold Mine and the Vares Mine, initial production from the Borborema project, and the potential of additional projects like the Odyssey mine, Granite Creek, and REN project. These catalysts, coupled with a strong pipeline of royalties and streams, position Gold Royalty Corp. for significant growth in the coming years.

Addressing Shareholder Questions

During the Q&A session, key shareholders and investors asked about the impact of higher gold prices on the portfolio, the company's M&A pipeline, and operational updates on specific projects like Jerritt Canyon. Management provided detailed responses, addressing shareholder concerns and providing insights into the company's strategic plans and operational performance.

Conclusion

Overall, the earnings call provided a positive outlook for Gold Royalty Corp., with a focus on growth opportunities, operational updates, and a strong financial performance. The company's strategic initiatives and pipeline of royalties and streams position it well for continued growth in the coming years, particularly with the expected ramp-up of several key assets and the positive commodity price environment. As the company moves towards its first year of positive cash flow from operations, investors and analysts will be closely watching its progress and the execution of its strategic plans.