GOLD ROYALTY REPORTS FIRST QUARTER 2025 RESULTS HIGHLIGHTING CONTINUED REVENUE GROWTH
Rhea-AI Summary
Old El Paso is expanding its product lineup with several new taco offerings. The company introduced the first-ever Birria Taco Kit, featuring 10 soft tortillas, Tex-Mex seasoning, and chipotle sauce, capitalizing on the trending birria dish that has garnered over 1 million Instagram hashtags. Additionally, they launched a new Breakfast Taco Kit containing six soft tortillas with green chile and queso cheese sauces.
The company is also expanding its Carb Advantage line with new Nacho Cheese Hard Shells and Soft Tortillas, alongside a reformulated original Carb Advantage Taco Shell. The new products will be available at Walmart starting March 2025, with nationwide rollout planned for summer 2025.
Positive
- Introduction of trending Birria Taco Kit taps into popular social media food trend (1M+ Instagram hashtags)
- Expansion into breakfast category with new Breakfast Taco Kit
- Strategic expansion of Carb Advantage product line addressing health-conscious consumers
- Wide distribution through Walmart and planned nationwide rollout
Negative
- None.
AI-generated analysis. How Rhea-AI works. Not financial advice.
David Garofalo, Chairman and CEO of Gold Royalty, commented: "We are pleased to report continued year-over-year revenue growth and another quarter of positive operating cash flow. These strong results reflect the embedded growth within our portfolio, which we expect to continue in 2025 as the key assets in our portfolio continue to advance. This includes three assets that are currently in the production ramp-up phase, each backed by long-life, large-scale mining operations. One of these assets – our royalty on the Borborema mine acquired in 2023 – achieved initial production during the first quarter, marking another milestone in our organic growth strategy. These and other assets in our diverse portfolio position Gold Royalty for continued and sustained revenue growth and value creation over the long term, including through the end of the decade."
First Quarter 2025 Highlights
- Revenue of
$3.1 million $3.6 million - 1,249 GEOs* in the quarter
- Record positive operating cash flow of
$2.5 million $1.7 million $1.3 million - The Company remains on track to achieve its outlook of 5,700 – 7,000 GEOs for 2025, with production on its interests weighted towards the second half of the year as several projects continue to ramp-up and progress towards full steady-state production
* Total Revenue, Land Agreement Proceeds and Interest, Cash Operating Expenses, Adjusted Net Loss, Adjusted Net Loss Per Share, basic and diluted and Total GEOs are each non-IFRS measures and do not have a standardized meaning under IFRS. See "Non-IFRS Measures" for further information. |
Selected Financial Highlights
The following table sets forth selected financial information for the three months ended March 31, 2025:
For the three months ended | |||||
2025 | 2024 | ||||
(in thousands of dollars, except per share and GEOs amounts) | ($) | ($) | |||
Revenue | 3,138 | 2,894 | |||
Net loss | (1,255) | (1,405) | |||
Net loss per share, basic and diluted | (0.01) | (0.01) | |||
Cash provided by operating activities | 2,487 | 336 | |||
Non-IFRS and Other Measures | |||||
Total Revenue, Land Agreement Proceeds and Interest(1) | 3,577 | 4,185 | |||
Adjusted EBITDA(1) | 1,663 | 2,020 | |||
Adjusted Net Loss(1) | (1,253) | (930) | |||
Adjusted Net Loss Per Share, basic and diluted(1) | (0.01) | (0.01) | |||
Gold Equivalent Ounces ("GEOs")(1) | 1,249 | 2,019 | |||
1) | Total Revenue, Land Agreement Proceeds and Interest, Adjusted EBITDA, Adjusted Net Loss, Adjusted Net Loss Per Share, basic and diluted, and GEOs are each non-IFRS measures and do not have a standardized meaning under IFRS. See "Non-IFRS Measures" for further information. |
For further information, please refer to the Company's unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2025, copies of which are available under the Company's profiles at www.sedarplus.ca and www.sec.gov.
Portfolio Update
Borborema Project (
For further information, see Aura's news releases dated February 26, 2025 March 27, 2025, and May 5, 2025 available under its profile on www.sedarplus.ca.
Borden Mine (
For further information see such technical report and Discovery's news release dated April 16, 2025, each available under its profile on www.sedarplus.ca.
Canadian
For further information, see Agnico Eagle's news releases dated February 13, 2025 and April 24, 2025, available under its profile on www.sedarplus.ca.
Côté Gold Mine (
For further information, see IAMGOLD's news releases dated February 20, 2025 and May 6, 2025, available under its profile on www.sedarplus.ca.
Cozamin Mine (
For further information, see Capstone's news releases dated January 20, 2025 and May 1, 2025, available under its profile on www.sedarplus.ca.
Fenelon Gold Project (
For further information, see Wallbridge's news releases dated January 22, 2025 and March 27, 2025, available under its profile on www.sedarplus.ca.
Granite Creek Project (
For further information, see such technical report and technical report summary and i-80's news releases dated March 5, 2025, March 6, 2025, April 1, 2025 and May 5, 2025, each available under its profile on www.sedarplus.ca.
Ren Project (
For further information, see Barrick's management's discussion and analysis for the year ended December 31, 2024 and for the quarter ended March 31, 2025, available under its profile on www.sedarplus.ca.
South Railroad Project (
For further information, see Orla's news release dated February 25, 2025, available under its profile on www.sedarplus.ca.
Tonopah West Project (
For further information, see Blackrock Silver's news releases dated February 18, 2025, February 20, 2025 and March 31, 2025, available under its profile on www.sedarplus.ca.
Vareš Mine (
For further information see Adriatic's Australian Stock Exchange announcements dated February 18, 2025, March 31, 2025 and April 30, 2025.
Whistler Project (
For further information see U.S. GoldMining's news releases dated February 10, 2025, April 15, 2025 and April 24, 2025, available under its profiles at www.sedarplus.ca and www.sec.gov.
Royalty Generator Model Update
Our royalty generator model continues to generate positive results with two new royalties added in the three months ended March 31, 2025. We have generated 50 royalties since the acquisition of Ely Gold Royalties Inc. in 2021 through this model.
We currently have 33 properties subject to land agreements and 6 properties under lease generating land agreement proceeds. The model continues to incur low operating costs with only approximately
2025 Outlook
The Company maintains its forecast of between 5,700 and 7,000 GEOs, which includes approximately 600 GEOs of contractual Land Agreement Proceeds, based on an assumed gold price of
The Company expects to achieve positive free cash flow in 2025 when a number of recently completed and cash flowing projects ramp up in production, including a full year of cash inflows from the Company's interests in the Côté Gold mine and Vareš mine, initial production revenue from the Borborema project as it achieves commercial production in 2025 and continued cash flow from the Cozamin mine,
First Quarter 2025 Results Conference Call Details
A conference call will be held on Thursday, May 8, 2025, starting at 11:00 am ET (8:00 am PT) to discuss these results. To participate in the live call, please use one of the following methods:
Webinar: Click Here
US (toll-free): 1-866-652-5200
International: 1-412-317-6060
The first quarter 2025 presentation materials will be available on Gold Royalty's website at www.goldroyalty.com and a replay of the event will be available following the presentation.
About Gold Royalty Corp.
Gold Royalty Corp. is a gold-focused royalty company offering creative financing solutions to the metals and mining industry. Its mission is to invest in high-quality, sustainable, and responsible mining operations to build a diversified portfolio of precious metals royalty and streaming interests that generate superior long-term returns for our shareholders. Gold Royalty's diversified portfolio currently consists primarily of net smelter return royalties on gold properties located in the
Qualified Person
Alastair Still, P.Geo., Director of Technical Services of the Company, is a "qualified person" as such term is defined under NI 43-101 and has reviewed and approved the technical information disclosed in this news release.
Notice to Investors
For further information regarding the project updates regarding properties underlying the Company's royalties, stream and other interests, please refer to the disclosures of the operators thereof, including the news releases referenced herein and the other disclosures of such operators. Disclosure relating to properties in which Gold Royalty holds interests is based on information publicly disclosed by the owners or operators of such properties. The Company generally has limited or no access to the properties underlying its interests and is largely dependent on the disclosure of the operators of its interests and other publicly available information. The Company generally has limited or no ability to verify such information. Although the Company does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accurate.
Unless otherwise indicated, the technical and scientific disclosure contained or referenced in this news release, including any references to mineral resources or mineral reserves, was prepared by the project operators in accordance with NI 43-101, which differs significantly from the requirements of the
Forward-Looking Statements:
Certain of the information contained in this news release constitutes "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and
Non-IFRS Measures
We have included, in this document, certain performance measures, including: (i) Adjusted Net Loss and Adjusted Net Loss Per Share, basic and diluted; (ii) GEOs; (iii) Total Revenue, Land Agreement Proceeds and Interest; and (iv) Adjusted EBITDA which are each non-IFRS measures. The presentation of such non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures do not have any standardized meaning prescribed by IFRS and other companies may calculate these measures differently.
Adjusted Net Loss and Adjusted Net Loss Per Share, basic and diluted
Adjusted Net Loss is calculated by adding land agreement proceeds credited against other mineral interests, interests earned on gold-linked loan, accretion of convertible debentures, transaction related and non-recurring general and administrative expenses(1) and share of loss in associate and deducting the following from net loss: dilution gain in associate, changes in fair value of embedded derivative, short-term investments and gold-linked loan, gain on loan modification, foreign exchange gain and other income. Adjusted Net Loss Per Share, basic and diluted, have been determined by dividing the Adjusted Net Loss by the weighted average number of common shares for the applicable period. Management believes that they are useful measures of performance as they adjust for items which are not always reflective of the underlying operating performance of our business and/or are not necessarily indicative of future operating results. The following is a reconciliation of net loss to Adjusted Net Loss, Per Share, basic and diluted for the periods indicated:
(1) | Transaction related and non-recurring general and administrative expenses comprised of operating expenses that are not expected to be incurred on an ongoing basis. During the three months ended March 31, 2025, transaction related and non-recurring general and administrative expenses primarily consisted of professional fees related to ongoing tax reviews. |
For the three months ended | ||||
2025 | 2024 | |||
(in thousands of dollars, except per share amount) | ($) | ($) | ||
Net loss | (1,255) | (1,405) | ||
Land Agreement Proceeds credited against other mineral interests | 113 | 1,050 | ||
Interest income credited against gold-linked loan | 326 | 241 | ||
Accretion of convertible debentures | 519 | 395 | ||
Transaction related and non-recurring general and administrative expenses | 61 | 95 | ||
Share of loss in associate | 30 | 52 | ||
Dilution gain in associate | — | (9) | ||
Change in fair value of gold-linked loan | (290) | (639) | ||
Change in fair value of short-term investments | 74 | (101) | ||
Change in fair value of embedded derivative | (100) | (191) | ||
Foreign exchange gain | (29) | (87) | ||
Gain on loan modification | (693) | (310) | ||
Other income | (9) | (21) | ||
Adjusted Net Loss | (1,253) | (930) | ||
Weighted average number of common shares | 170,325,913 | 145,778,698 | ||
Adjusted Net Loss Per Share, basic and diluted | (0.01) | (0.01) | ||
GEOs
GEOs are determined by dividing Total Revenue, Land Agreement Proceeds and Interest by the average gold prices for the applicable period:
(in thousands of dollars, except Average Gold Price/oz and GEOs) | Average Gold | Total Revenue, | GEOs | |||
For the three months ended March 31, 2024 | 2,072 | 4,185 | 2,019 | |||
For the three months ended March 31, 2025 | 2,865 | 3,577 | 1,249 |
Total Revenue, Land Agreement Proceeds and Interest
Total Revenue, Land Agreement Proceeds and Interest are determined by adding land agreement proceeds credited against other mineral interests and interests earned on gold-linked loan to total revenue. We have included this information as management believes certain investors use this information to evaluate our performance in comparison to other gold royalty companies in the precious metal mining industry.
The following is a reconciliation of Total Revenue, Land Agreement Proceeds and Interest to total revenue for the three months ended March 31, 2025 and 2024, respectively:
For the three months ended | ||||
2025 | 2024 | |||
(in thousands of dollars) | ($) | ($) | ||
Royalty | 1,116 | 1,062 | ||
Streaming | 484 | — | ||
Advance minimum royalty and pre-production royalty | 1,078 | 830 | ||
Land agreement proceeds | 573 | 2,052 | ||
Interest income credited against gold-linked loan | 326 | 241 | ||
Total Revenue, Land Agreement Proceeds and Interest | 3,577 | 4,185 | ||
Land agreement proceeds credited against other mineral interests | (113) | (1,050) | ||
Interest income credited against gold-linked loan | (326) | (241) | ||
Revenue | 3,138 | 2,894 | ||
Adjusted EBITDA
Adjusted EBITDA is determined by adding the impact of depletion, depreciation, finance costs, current and deferred tax (recovery) expenses, interest earned on gold-linked loan, transaction related and non-recurring general and administrative expenses(2), non-cash share-based compensation, share of loss in associate, dilution gain in associate, change in fair value of gold-linked loan, change in fair value of short-term investments, change in fair value of embedded derivative, foreign exchange gain, gain on loan modification and other income to net loss. We have included this information as management believes certain investors use this information to evaluate our performance in comparison to other gold royalty companies in the precious metal mining industry. The table below provides a reconciliation of net loss to Adjusted EBITDA.
(2) | Transaction related and non-recurring general and administrative expenses comprised of operating expenses that are not expected to be incurred on an ongoing basis. During the three months ended March 31, 2025, transaction related and non-recurring general and administrative expenses primarily consisted of professional fees related to ongoing tax reviews. |
For the three months ended | ||||
2025 | 2024 | |||
(in thousands of dollars) | ($) | ($) | ||
Net loss | (1,255) | (1,405) | ||
Depletion | 91 | 520 | ||
Depreciation | 19 | 20 | ||
Finance costs | 2,205 | 1,784 | ||
Current tax expense | 68 | 789 | ||
Deferred tax (recovery)/expense | 360 | (363) | ||
Land Agreement Proceeds credited against other mineral interests | 113 | 1,050 | ||
Interest income credited against gold-linked loan | 326 | 241 | ||
Transaction related and non-recurring general and administrative expenses | 61 | 95 | ||
Share-based compensation | 692 | 595 | ||
Share of loss in associate | 30 | 52 | ||
Dilution gain in associate | — | (9) | ||
Change in fair value of gold-linked loan | (290) | (639) | ||
Change in fair value of short-term investments | 74 | (101) | ||
Change in fair value of embedded derivative | (100) | (191) | ||
Foreign exchange gain | (29) | (87) | ||
Gain on loan modification | (693) | (310) | ||
Other income | (9) | (21) | ||
Adjusted EBITDA | 1,663 | 2,020 | ||