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“We are now on the cusp of several key development stage assets ramping up to full capacity, such as Côté, which recently achieved commercial production, Vares which is set to achieve commercial production in the fourth quarter, and Borborema, which is on track for initial production in the first quarter of 2025.”
David Garofalo,
Chairman & CEO,
Gold Royalty Corp.
In a period marked by strategic milestones and financial growth, Gold Royalty Corp has emerged as a formidable player in the mining finance sector. The second quarter of 2024 saw the company not only boost its revenue and enhance its portfolio but also make significant strides in sustainability, setting a new standard in the royalty and streaming industry.
The period was truly transformative for Gold Royalty Cotp. With the successful completion of the Vares Copper Stream transaction, the company significantly bolstered its growth outlook. This acquisition was not merely a financial achievement but a strategic move that underscores the company’s commitment to securing long-term value in an ever-evolving market.
Chairman and CEO David Garofalo highlighted the company’s forward momentum, stating, “We are now on the cusp of several key development stage assets ramping up to full capacity, such as Côté, which recently achieved commercial production, Vares which is set to achieve commercial production in the fourth quarter, and Borborema, which is on track for initial production in the first quarter of 2025.” His words reflect a company that is not just adapting but leading with confidence and purpose.
Financially, Gold Royalty posted impressive results. Quarterly revenue skyrocketed to $1.8 million, marking an approximately 300% increase compared to the same period in 2023. This surge was driven by the company’s first royalty payment from IAMGOLD’s Côté Gold Mine and continued strong performance from its existing cash-flowing assets, including the Borborema Project and other key mines. With an annual guidance targeting between 6,500 and 7,000 Gold Equivalent Ounces (GEOs) and forecasted revenue of $13 million to $14 million, Gold Royalty is poised for continued success.
Yet, financial success is only part of the equation. Gold Royalty’s commitment to cost management and operational efficiency was evident with a 9% reduction in Cash Operating Expenses compared to the same period in 2023. This disciplined approach ensures that the company remains agile and competitive in a dynamic industry.
What truly sets Gold Royalty apart, however, is its dedication to sustainability. During the quarter, the company published its second annual Asset Handbook and Sustainability Report, which highlighted its position as a leader in low-carbon intensity within the royalty and streaming sector. This report underscores Gold Royalty’s forward-thinking approach and its commitment to environmental stewardship, setting a benchmark for the industry.
The acquisition of the Vares Copper Stream from Orion Mine Finance for $50 million, supported by a $34.5 million equity financing, further strengthens Gold Royalty’s portfolio. This strategic move aligns with the company’s long-term vision of sustainable growth and reinforces its position in the market.
As Gold Royalty looks ahead, it is clear that the company is not just content with its current achievements. With a robust asset portfolio, a strong financial foundation, and a clear commitment to sustainability, Gold Royalty is well-positioned to lead the charge in the royalty and streaming industry. The second quarter of 2024 was a pivotal moment in the company’s journey, but it is clear that this is only the beginning of an exciting and prosperous future.
Conclusively, in an industry often defined by its challenges, Gold Royalty stands out as a leader, driving growth and innovation while staying true to its principles. This quarter’s results are a testament to the company’s vision, strategy, and execution and a sign of even greater things to come