20-F: Gold Royalty Corp. Reports Record Revenue and Positive Cash Flow in 2024

Gold Royalty Corp. announces record revenue and positive cash flow for 2024, driven by strategic acquisitions and strong performance from key assets.

Summary

• Gold Royalty Corp. (GROY) reported record revenue of $10.1 million for the year ended December 31, 2024, a 231% increase compared to 2023.
• The company achieved positive cash flow from operations of $2.5 million and Adjusted EBITDA of $4.8 million.
• Revenue growth was attributed to the Borborema project, Ct Gold and Vare mines, and consistent contributions from Cozamin, Canadian Malartic, and Borden mines.
• Approximately 72% of revenues in 2024 were derived from the Borborema Project, Borden Mine, Canadian Malartic Property, Cozamin Mine, Ct Gold Mine, and Vare Mine.
• The company completed the acquisition of a copper stream on the Vare Mine in Bosnia and Herzegovina for $45 million in cash and $5 million in shares.
• A strategic alliance was formed with Taurus Mining Royalty Fund L.P. to expand deal origination.
• The Credit Facility was amended and extended to March 31, 2028, with a reduced interest rate.
• A 1.2% NSR royalty on the Garrison Project was acquired for C$2.8 million.
• The company's royalty generator model added nine new royalties in 2024, bringing the total to 48 since 2021.

Sentiment

Score: 7

Explanation: The document presents a positive outlook with record revenue and positive cash flow, but also acknowledges risks and challenges, resulting in a moderately positive sentiment.

Positives

• Record revenue and positive cash flow indicate improved financial performance.
• Strategic acquisitions, such as the Vare Mine stream, are expected to contribute to future revenue growth.
• The royalty generator model provides a low-cost method of adding potential future upside to the portfolio.
• The strategic alliance with Taurus Mining Royalty Fund L.P. expands deal origination and improves the ability to compete for larger investments.
• The extension of the Credit Facility provides financial flexibility.

Negatives

• The company incurred a net loss of $3.4 million for the year ended December 31, 2024.
• The company incurred finance costs of $8.0 million in 2024, compared to $1.8 million in 2023, which includes accretion of the convertible debentures throughout the year and cash and non-cash interest expense on additional funds drawn on our Credit Facility.

Risks

• Volatility in gold, copper, and other commodity prices could negatively affect revenue.
• The company has limited access to data and operations underlying its existing interests.
• A significant portion of revenue is derived from a small number of operating properties.
• Operations in foreign countries are subject to various risks, including expropriation and political instability.
• Opposition from Indigenous peoples may delay or suspend development or operations at the properties where the company holds royalty or similar interests.
• The company may be classified as a passive foreign investment company, or PFIC, for U.S. federal income tax purposes.

Future Outlook

The company expects continued revenue contributions from its existing royalty and streaming interests, with potential for growth from development projects and exploration upside. The Borborema project is expected to start production in the second quarter of 2025.

Industry Context

The royalty and streaming business model provides greater diversification than typical mining companies, offering a relatively lower risk investment with potential upside to resource expansion and commodity prices.

Comparison to Industry Standards

• The document does not contain enough information to make a detailed comparison to industry standards.
• However, the document does mention several companies that are comparible to Gold Royalty Corp.
• These companies include Agnico Eagle Mines Ltd., IAMGOLD Corporation, Capstone Copper Corp., i-80 Gold Corp., Aura Minerals Inc., Wallbridge Mining Company Limited, Orla Mining Ltd., Blackrock Silver Corp., and U.S. GoldMining Inc.

Related Party Transactions

• Queen's Road Capital Investment Ltd., an entity whose Chief Executive Officer is also one of our directors, subscribed for $30 million principal amount of the convertible debentures in our convertible debenture financing completed in December 2023.

Stakeholder Impact

• Shareholders may benefit from increased revenue and positive cash flow, potentially leading to higher share value.
• Employees may benefit from the company's continued growth and success.
• Customers and suppliers may be impacted by the performance of the mines underlying the company's royalty and streaming interests.
• Creditors may be impacted by the company's ability to repay its debt obligations.

Next Steps

• Continue to pursue accretive royalty and streaming transactions.
• Implement the royalty generator model.
• Monitor the progress of development projects underlying the company's interests.
• Continue to ramp up production at the Ct Gold Mine.
• Complete construction of the Borborema mine and commence production.

Key Dates

Keywords

royalties, streaming, gold, copper, acquisitions, financial results, mining, Borborema, Vare Mine, Canadian Malartic, Cozamin, Ct Gold, Garrison