Gold Royalty (GROY): A High-Conviction Play in a Rising Gold Environment Amid 100% YoY Revenue Surge

In the ever-evolving landscape of precious metals, Gold Royalty Corp. (GROY) has emerged as a standout performer, delivering a staggering 100% year-over-year revenue surge in Q2 2025 and posting record-breaking results in 2024. With gold prices surging to multi-year highs and global demand for secure assets intensifying, GROY's strategic positioning as a royalty generator—leveraging high-quality producing assets without operational risks—makes it a compelling high-conviction investment.

A Record-Breaking 2024 and Accelerating Momentum in 2025

Gold Royalty's 2024 full-year revenue soared by 231% to $12.8 million, driven by its diversified portfolio of royalties and streams. This included cash-flowing interests in key assets such as the Canadian Malartic, Côté, Borborema, Cozamin, and Borden (Porcupine) mines, as well as the Vares copper stream. The company's Total Revenue, Land Agreement Proceeds, and Interest metric hit $12.8 million in 2024, a 146% jump from 2023.

The momentum continued into 2025, with Q2 2025 revenue reaching $3.8 million—a 111% increase from Q2 2024. For the first half of 2025, total revenue hit $6.96 million, while Adjusted EBITDA surged to $4.04 million, reflecting operational efficiency and strong production growth. Gold equivalent ounces (GEOs) produced in Q2 2025 rose to 1,346 from 947 in Q2 2024, driven by ramping production at Côté, Vareš, and Borborema.

Drivers of Growth: Strategic Assets and a Gold-Friendly Environment

GROY's success stems from its unique royalty generator model, which aggregates income from producing assets without the capital-intensive burden of direct mining. This approach allows the company to scale rapidly while minimizing operational risks. Key contributors to its 2024 growth include:
- Canadian Malartic: One of the world's largest gold mines, providing consistent cash flow.
- Côté and Borborema: Newly ramped-up operations that are now major revenue drivers.
- Vares Copper Stream: A strategic copper exposure that benefits from rising industrial demand.

The company's performance is further amplified by favorable commodity prices. Gold prices have climbed over 20% in 2025 alone, while copper demand remains robust due to green energy transitions. GROY's portfolio is uniquely positioned to capitalize on these trends, with 5,462 GEOs generated in 2024 and a long-term guidance of 23,000–29,000 GEOs by 2029.

A Rising Gold Environment and Long-Term Catalysts

The macroeconomic backdrop is highly favorable for gold royalty plays. Central banks are aggressively buying gold, inflation remains sticky, and geopolitical tensions persist—all of which drive demand for safe-haven assets. For GROY, this environment translates to higher royalty payments and increased valuation for its assets.

Looking ahead, the company's 2025 guidance of 5,700–7,000 GEOs and its 2029 long-term target underscore confidence in its portfolio's maturation. The Côté royalty and Vares stream, in particular, are expected to ramp up production in line with operator plans, providing a clear path to sustained growth. Additionally, GROY's focus on strategic acquisitions—such as its recent land agreements—positions it to expand its royalty base without significant capital outlays.

Investment Thesis: A High-Conviction Buy

Gold Royalty's 100% YoY revenue growth in Q2 2025 and its 231% full-year 2024 surge demonstrate a business model that is both scalable and resilient. With a diversified portfolio of high-quality assets, a royalty generator structure that minimizes risk, and a rising gold environment, GROY is uniquely positioned to outperform peers.

For investors seeking exposure to the gold sector without the volatility of mining stocks, GROY offers a compelling alternative. Its asset-light model, combined with strong cash flow generation and a clear growth trajectory, makes it a high-conviction play. As gold prices continue to climb and the company's portfolio matures, GROY is poised to deliver outsized returns for shareholders in the coming years.

Final Takeaway: In a world where gold is increasingly seen as a hedge against uncertainty, Gold Royalty Corp. stands out as a masterclass in royalty-based growth. With its 100% YoY revenue surge and a pipeline of catalysts, this is a stock that deserves a prominent place in any investor's portfolio.