GOLD ROYALTY REPORTS FOURTH QUARTER AND 2024 RESULTS, RECORD REVENUE AND POSITIVE OPERATING CASH FLOWS WITH CONTINUED SIGNIFICANT GROWTH EXPECTED IN 2025 AND OVER NEXT FIVE YEARS
Rhea-AI Summary
Gold Royalty Corp. (NYSE: GROY) reported record financial results for Q4 and full-year 2024, achieving positive operating cash flows. Q4 2024 highlights include record revenue of $3.4M, 1,445 Gold Equivalent Ounces (GEOs), and positive operating cash flow of $1.3M.
Full-year 2024 delivered record revenue of $10.1M, 5,462 GEOs, and positive operating cash flow of $2.5M. The company projects significant growth, with GEOs expected to increase to 5,700-7,000 in 2025, representing a 16% increase from 2024. Their five-year outlook forecasts exceptional growth of over 360% from 2024 levels, with GEOs projected to reach 23,000-28,000 by 2029.
The company's portfolio includes royalties on several key mining projects, including Borborema (2.0% NSR), expected to complete construction in Q1 2025, and Vareš mine (100% copper stream), anticipated to reach commercial production in Q1 2025. The company generated eight new royalties in 2024 through their royalty generator model.
Positive
- Record Q4 2024 revenue of $3.4M and positive operating cash flow of $1.3M
- Full-year 2024 revenue reached $10.1M with positive operating cash flow of $2.5M
- Projected 16% GEO growth in 2025 and 360% growth by 2029
- Eight new royalties added to portfolio in 2024
- Multiple assets advancing toward production or ramping up in 2025
Negative
- Several key assets still in ramp-up phase, not yet at full production
- Growth projections dependent on successful development of multiple projects
- Company still focused on debt repayment
News Market Reaction – GROY
On the day this news was published, GROY declined 12.42%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
David Garofalo, Chairman and CEO of Gold Royalty, commented: "We are pleased to report record revenues and positive operating cash flows for 2024. These strong results demonstrate the built-in growth of our portfolio, which we expect to continue in 2025. Our portfolio's growth profile was achieved through transformative value-accretive acquisitions made over the Company's four-year history; these acquisitions secured royalties on large-scale, long-life mines in the late-development, near-production, and ramp-up stages. We believe that these assets position Gold Royalty for continued growth in revenue and Gold Equivalent Ounces ("GEOs") over the long-term, including through the end of the decade."
Fourth Quarter 2024 Highlights
- Record revenue of
$3.4 million $3.8 million - 1,445 GEOs* for the quarter
- Positive operating cash flow of
$1.3 million $1.2 million
Full Year 2024 Highlights
- Record revenue of
$10.1 million $12.8 million - 5,462 GEOs* for the year
- Positive operating cash flow
$2.5 million $4.8 million
2025 and Five-Year Outlook
- Total GEOs are currently expected to increase to 5,700-7,000 in 2025, a year where three of our seven cash flowing assets continue to ramp up towards full production. This outlook represents an increase of approximately
16% from 2024. - Peer-leading growth of over
360% from 2024 levels is expected in the next five years, with GEOs forecasted to increase to between 23,000 and 28,000 GEOs in 2029. The projected five-year outlook reflects continued contributions from our cornerstone producing assets, as well as new production from assets currently in development. See the below "2025 Outlook" and "Five-Year Outlook" sections. - Going forward, the Company's balance sheet is expected to be strengthened by greater expected cash flow generation, stable and low operating costs and our recently improved credit terms. While the Company's capital allocation priorities continue to focus on debt repayment and disciplined growth, the increased facility terms provide flexibility to pursue opportunities as they may arise.
*Total Revenue, Land Agreement Proceeds and Interest, Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) Per Share and GEOs are each non-IFRS measures and do not have a standardized meaning under IFRS. See "Non-IFRS Measures" for further information. |
Selected Financial Highlights
The following table sets forth selected financial information for the three months and year ended December 31, 2024:
For three months | For the years | |||||||
December | December | December | December | |||||
(in thousands of dollars, except per share and GEOs amounts) | ($) | ($) | ($) | ($) | ||||
Statement of Loss and Comprehensive Loss | ||||||||
Revenue | 3,355 | 1,016 | 10,103 | 3,048 | ||||
Net loss | (3,193) | (19,360) | (3,411) | (26,756) | ||||
Net loss per share, basic and diluted | (0.02) | (0.13) | (0.02) | (0.18) | ||||
Cash provided by (used in) operating activities | 1,262 | (1,727) | 2,543 | (6,876) | ||||
Non-IFRS and Other Measures | ||||||||
Total Revenue, Land Agreement Proceeds and Interest(1) | 3,846 | 1,319 | 12,847 | 5,216 | ||||
Adjusted EBITDA(1) | 1,240 | (3,049) | 4,779 | (4,440) | ||||
Adjusted Net Income (Loss)(1)(2) | (2,721) | 935 | (1,150) | (3,965) | ||||
Adjusted Net Income (Loss) Per Share, basic and diluted(1) | (0.02) | 0.01 | (0.01) | (0.03) | ||||
GEOs(1) | 1,445 | 667 | 5,462 | 2,703 | ||||
1) | See "Non-IFRS Measures" for further information. |
2) | Adjusted Net Income for the year and quarter ended December 31, 2023, includes |
Please refer to the Company's Annual Report Form 20-F, including the audited financial statements included therein, copies of which are available under the Company's profile at www.sedarplus.ca and www.sec.gov.
Portfolio Update
Borborema project (
Canadian
Côté Gold mine (
Cozamin mine (
Fenelon gold project (
Granite Creek project (
Ren project (
South Railroad project (
Tonopah West project (
Vareš mine (
Whistler project (
Royalty Generator Model Update
Our royalty generator model continues to generate positive results with eight new royalties added in the twelve months ended December 31, 2024. We have generated 48 royalties since the acquisition of Ely Gold Royalties Inc. in 2021 through this model.
We currently have 33 properties subject to land agreements and six properties under lease generating land agreement proceeds. The model continues to incur low operating costs with only
2025 Outlook
The Company currently forecasts GEOs between 5,700 and 7,000, 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,
Five-Year Outlook
In 2029, we expect GEOs to increase to between 23,000 and 28,000 which includes approximately 600 GEOs of contractual Land Agreement Proceeds. The midpoint of our five-year outlook range represents an increase in GEOs of
All production and expected production growth implied by our guidance is sourced from assets already held in our portfolio and is based on public forecasts, expected development timelines, and other disclosures by the owners and operators of the properties underlying our interests. In addition to the mining operations expected to be in production in 2025, our 2029 outlook includes contributions from development projects including Ren, Granite Creek, and South Railroad.
In addition to the price assumptions outlined above, the 2025 and five-year outlooks included herein are based on the disclosed forecasts and expectations of the owners and operators of the properties underlying our interests and our assessment thereof. We assume a gold price of
2024 Results Conference Call Details
A conference call will be held on Thursday, March 20, 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 fourth quarter and year end 2024 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 Canadian National Instrument 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 Canadian National Instrument 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 Income (Loss) and Adjusted Net Income (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 Income (Loss) and Adjusted Net Income (Loss) Per Share, basic and diluted
Adjusted Net Income (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 expenses1, share of (gain) loss in associate and impairment of royalty, net of taxes and deducting the following from net income (loss): dilution gain in associate, changes in fair value of derivative liabilities, embedded derivative, short-term investments and gold-linked loan, gain (loss) on loan modification, foreign exchange gain (loss) and other income. Adjusted Net Income (Loss) Per Share, basic and diluted, have been determined by dividing the Adjusted Net Income (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 income (loss) to Adjusted Net Income (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 year ended December 31, 2024, transaction related and non-recurring general and administrative expenses primarily consisted of professional fees related to an ongoing tax review and internal reorganization.
For three months ended, | For the years ended, | |||||||
December | December | December | December | |||||
(in thousands of dollars, except per share amounts) | ($) | ($) | ($) | ($) | ||||
Net loss | (3,193) | (19,360) | (3,411) | (26,756) | ||||
Land Agreement Proceeds credited against other mineral interests | 196 | 270 | 1,663 | 1,909 | ||||
Pre-acquisition royalty revenue credited against Cozamin purchase price | — | — | — | 226 | ||||
Gold-linked loan interests | 295 | 33 | 1,081 | 33 | ||||
Convertible debentures - accretion | 486 | — | 1,761 | — | ||||
Transaction related and non-recurring general administrative expenses | 8 | 268 | 424 | 967 | ||||
Share of (gain)/loss in associate | 97 | 72 | 64 | (172) | ||||
Dilution gain in associate | — | — | (9) | (12) | ||||
Impairment of royalty, net of taxes | — | 19,760 | — | 19,760 | ||||
Change in fair value of derivative liabilities | — | — | — | (242) | ||||
Change in fair value of gold-linked loan | (331) | (172) | (1,681) | (172) | ||||
Change in fair value of short-term investments | (19) | 45 | (38) | 264 | ||||
Change in fair value of embedded derivatives | (143) | (30) | (612) | (30) | ||||
Foreign exchange (gain)/loss | (102) | 55 | 14 | 132 | ||||
(Gain)/loss on loan modification | — | — | (310) | 249 | ||||
Other income | (15) | (6) | (96) | (121) | ||||
Adjusted Net Income (Loss) | (2,721) | 935 | (1,150) | (3,965) | ||||
Weighted average number of common shares | 169,505,388 | 145,086,763 | 159,516,299 | 144,729,662 | ||||
Adjusted Net Income (Loss) Per Share, basic and diluted | (0.02) | 0.01 | (0.01) | (0.03) | ||||
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 | GEOs | |||
For three months ended March 31, 2023 | 1,889 | 1,970 | 1,043 | |||
For three months ended June 30, 2023 | 1,978 | 557 | 282 | |||
For three months ended September 30, 2023 | 1,927 | 1,370 | 711 | |||
For three months ended December 31, 2023 | 1,977 | 1,319 | 667 | |||
For year ended December 31, 2023 | 5,216 | 2,703 | ||||
For three months ended March 31, 2024 | 2,072 | 4,185 | 2,019 | |||
For three months ended June 30, 2024 | 2,338 | 2,215 | 947 | |||
For three months ended September 30, 2024 | 2,475 | 2,601 | 1,051 | |||
For three months ended December 31, 2024 | 2,661 | 3,846 | 1,445 | |||
For year ended December 31, 2024 | 12,847 | 5,462 |
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.
Below is a reconciliation of our Total Revenue, Land Agreement Proceeds and Interest to total revenue for the periods indicated:
For three months | For the years ended, | |||||||
December | December | December | December | |||||
(in thousands of dollars) | ($) | ($) | ($) | ($) | ||||
Royalty | 1,629 | 758 | 4,806 | 1,964 | ||||
Pre-acquisition royalty revenue credited against Cozamin purchase price | — | — | — | 226 | ||||
Stream | 893 | — | 893 | — | ||||
Advance minimum royalty and pre-production royalty | 732 | 137 | 2,982 | 646 | ||||
Land agreement proceeds | 297 | 391 | 3,085 | 2,347 | ||||
Gold-linked loan interests | 295 | 33 | 1,081 | 33 | ||||
Total Revenue, Land Agreement Proceeds and Interests | 3,846 | 1,319 | 12,847 | 5,216 | ||||
Land agreement proceeds credited against other mineral interests | (196) | (270) | (1,663) | (1,909) | ||||
Pre-acquisition royalty revenue credited against Cozamin purchase price | — | — | — | (226) | ||||
Gold-linked loan interests | (295) | (33) | (1,081) | (33) | ||||
Revenue | 3,355 | 1,016 | 10,103 | 3,048 | ||||
Adjusted EBITDA
Adjusted EBITDA is determined by adding the impact of depletion, depreciation, finance costs, current and deferred tax (recovery) expenses, interest earned on gold-linked loan, transaction related and non-recurring general and administrative expenses2, non-cash share-based compensation, share of (gain) loss in associate, dilution gain in associate, impairment of royalty, net of taxes, change in fair value of gold-linked loan, change in fair value of short-term investments, change in fair value of embedded derivative, foreign exchange (gain) loss, (gain) loss on loan modification and other income to net income (loss). We have included this information as management believes certain investors use this information to evaluate our performance in comparison to other gold royalty companies in the precious metal mining industry. The table below provides a reconciliation of net income (loss) to Adjusted EBITDA:
For three months ended, | For the years ended, | |||||||
December | December | December | December | |||||
(in thousands of dollars) | ($) | ($) | ($) | ($) | ||||
Net loss | (3,193) | (19,360) | (3,411) | (26,756) | ||||
Depletion | 1,771 | 249 | 3,204 | 943 | ||||
Depreciation | 20 | 20 | 79 | 70 | ||||
Finance costs | 2,188 | 814 | 8,043 | 1,839 | ||||
Current tax (recovery)/expense | (80) | (34) | 506 | 50 | ||||
Deferred tax recovery | (291) | (5,569) | (6,480) | (6,183) | ||||
Land Agreement Proceeds credited against other mineral interests | 196 | 270 | 1,663 | 1,909 | ||||
Pre-acquisition royalty revenue credited against Cozamin purchase price | — | — | — | 226 | ||||
Gold-linked loan interests | 295 | 33 | 1,081 | 33 | ||||
Transaction related and non-recurring general administrative expenses | 8 | 268 | 424 | 967 | ||||
Share-based compensation | 839 | 536 | 2,338 | 2,806 | ||||
Share of (gain)/loss in associate | 97 | 72 | 64 | (172) | ||||
Dilution gain in associate | — | — | (9) | (12) | ||||
Impairment of royalty, net of taxes | — | 19,760 | — | 19,760 | ||||
Change in fair value of derivative liabilities | — | — | — | (242) | ||||
Change in fair value of gold-linked loan | (331) | (172) | (1,681) | (172) | ||||
Change in fair value of short-term investments | (19) | 45 | (38) | 264 | ||||
Change in fair value of embedded derivatives | (143) | (30) | (612) | (30) | ||||
Foreign exchange (gain)/loss | (102) | 55 | 14 | 132 | ||||
(Gain)/loss on loan modification | — | — | (310) | 249 | ||||
Other income | (15) | (6) | (96) | (121) | ||||
Adjusted EBITDA | 1,240 | (3,049) | 4,779 | (4,440) | ||||
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 year ended December 31, 2024, transaction related and non-recurring general and administrative expenses primarily consisted of professional fees related to an ongoing tax review and internal reorganization.
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FAQ
What were Gold Royalty Corp's (GROY) key financial results for Q4 2024?
How many Gold Equivalent Ounces (GEOs) does GROY expect to produce in 2025?
What is GROY's five-year production outlook for 2029?
When will GROY's Borborema project (2.0% NSR) begin production?
When does GROY expect to achieve positive free cash flow?
