• Total Revenue (Q4 2024): $3.8 million, a 192% increase from Q4 2023.
• Total Revenue (Full Year 2024): $12.8 million, a 146% increase from 2023.
• Operating Cash Flows (2024): Positive $2.5 million.
• Adjusted EBITDA (2024): Positive $4.8 million.
• Gold Equivalent Ounces (GEOs) Forecast (2025): 5,700 to 7,000 GEOs, a midpoint increase of 16% from 2024.
• Five-Year GEOs Outlook (2029): 23,000 to 28,000 GEOs, over 360% increase from 2024.
• Land Agreement Proceeds (2025): Expected $1.6 million, approximately 600 GEOs at the consensus gold price.
• Gold Price Assumption (2025): $2,668 per ounce.
• Copper Price Assumption (2025): $4.23 per pound.

• Warning! GuruFocus has detected 6 Warning Signs with GROY.

Release Date: March 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Gold Royalty Corp (GROY) reported record revenues and positive operating cash flows for 2024, demonstrating significant growth.
• The company expects to receive between 5,700 and 7,000 GEOs in 2025, with a five-year outlook projecting 23,000 to 28,000 GEOs by 2029, marking a 360% increase from 2024.
• Strong financial performance was noted with a 192% increase in revenue for Q4 2024 compared to Q4 2023, driven by the ramp-up of key assets and strong commodity prices.
• The company achieved its first full year of positive operating cash flows and adjusted EBITDA in 2024, indicating improved financial health.
• Gold Royalty Corp (GROY) has a diversified portfolio with royalties on large-scale, long-life mines, providing significant optionality and growth potential.

Negative Points

• Despite strong performance, Gold Royalty Corp (GROY) continues to trade at a discount relative to peers, indicating potential market undervaluation.
• The company faces challenges in maintaining a low debt level, with plans to prioritize debt repayment as a key capital allocation strategy.
• Some assets, such as Canadian Malartic, are expected to have relatively flat production, which may impact overall growth projections.
• The company is conservative in its guidance, using the lower end of operator guidance for assets still ramping up, which may lead to lower market expectations.
• There is a focus on later-stage operating assets, which are few and far between, potentially limiting immediate acquisition opportunities.

Q & A Highlights

Q: Can you provide some color on the longer-term outlook beyond 2029, particularly regarding the breakdown between gold and copper? A: Peter Behncke, Director of Corporate Development and Investor Relations, explained that many cornerstone assets like Canadian Malartic, Cote, Vares, and Borborema have 20-year plus mine plans, supporting a sustainable outlook beyond five years. Currently, the portfolio is approximately 90% gold and 10% copper, with expectations for more growth on the gold side due to the expansion of assets like Canadian Malartic Underground at Odyssey and REN. Jackie Przybylowski, Vice President of Capital Markets, added that copper's share might decline as Cozamin's production decreases over time.

Q: What is the company's strategy regarding debt management over the next five years? A: Andrew Gubbels, CFO, stated that the company plans to use free cash flow to pay down debt, which was initially used to build the portfolio. The goal is to maintain low levels of debt, using available credit for strategic opportunities. David Garofalo, CEO, emphasized the priority of reducing debt to have capital available for future non-dilutive acquisitions.

Q: How is the cash flow expected to be distributed throughout 2025? A: Peter Behncke noted that cash flow is expected to be stronger in the second half of 2025 due to the ramp-up of assets like Vares, Cote, and Borborema.

Q: What types of new opportunities is Gold Royalty Corp considering for portfolio expansion? A: Peter Behncke mentioned that the company is focused on quality opportunities that meet pricing thresholds for accretive deals. They are particularly interested in cash-flowing or near-cash-flowing assets rather than early-stage projects. David Garofalo added that the company is disciplined in its approach, focusing on later-stage operating assets.

Q: Are there any properties in the 2025 guidance that might have a decline in production? A: Jackie Przybylowski explained that the guidance is conservative, particularly for assets like Cote and Borborema, which are still ramping up. Canadian Malartic is expected to have flat production, and the guidance uses the lower end of operators' forecasts for these assets.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.