
Gold Royalty Corp. (NYSE: GROY) is pleased to announce the filing of its operating and financial results for the three-month transition period ended December 31, 2022. As previously announced, the Company has changed its fiscal year end to December 31 to better align with the reporting cycle of its peers. All amounts expressed in U.S. dollars unless otherwise noted.
David Garofalo, Chairman and CEO of Gold Royalty, commented, “Gold Royalty’s portfolio of long-life, high-quality assets saw several significant advancements in the first quarter of 2023. The organic growth within our portfolio is coming to fruition, fueling increased revenue and cash flow as key development stage royalties enter production over the coming years. Odyssey is ramping up production in 2023; Côté is on track to commence production in 2024; and Ren continues to grow as a key high-grade extension of the Goldstrike Mine. With a strong balance sheet and access to capital, we enter 2023 well-positioned to deliver long-term shareholder value through our significant organic growth profile.”
Highlights for the three months ended December 31, 2022, include:
The following table sets forth selected financial information for the three-month transition period ended December 31, 2022 and the three months ended December 31, 2021, respectively:
Three months ended | |||||||
December 31, 2022 |
December 31, 2021 |
||||||
(in thousands of dollars, except per share amounts) | ($) | ($) | |||||
Total revenue | 582 | 533 | |||||
Net loss | (2,204) | (6,841) | |||||
Net loss per share, basic and diluted | (0.02) | (0.06) | |||||
Dividends declared per share | 0.01 | — | |||||
Non-IFRS and Other Measures | |||||||
Total Revenue and Option Proceeds* | 1,131 | 1,018 | |||||
Adjusted Net Loss* | (3,373) | (3,540) | |||||
Adjusted Net Loss Per Share, basic and diluted* | (0.02) | (0.03) | |||||
Total Gold Equivalent Ounces | 336 | 297 | |||||
Cash flow used in operating activities, excluding changes in non-cash working capital* | (2,315) | (5,894) | |||||
Adjusted Cash flow used in operating activities, excluding changes in non-cash working capital and transaction related expenses* | (2,200) | (1,836) | |||||
* See Non-IFRS Measures below. |
For further detailed information, please refer to the Company’s audited financial statements and management’s discussion and analysis, for the three months ended December 31, 2022, copies of which are available under the Company’s profile at www.sedar.com and www.sec.gov.
Outlook
Gold Royalty expects to receive $5.5 million and $6.5 million in Total Revenues and Option Proceeds in 2023 based on the production guidance published to date by the operators of the properties underlying the Company’s existing royalties and a forecasted gold price ranging from $1,700 per ounce to $2,000 per ounce and expected payments on optioned properties. The Company expects to incur $7.0 million to $8.0 million in recurring cash operating expenses in 2023, a midpoint decrease of 30% compared to fiscal 2022. Gold Royalty is poised to generate net free cash flow in 2024 when a number of its growth projects ramp up in production, including the long-life cornerstone mines at Cote and Odyssey.
The foregoing projected outlook constitutes forward-looking information and is intended to provide information about management’s current expectations for the Company’s 2023 fiscal year. Although considered reasonable as of the date hereof, such outlook and the underlying assumptions may prove to be inaccurate. Accordingly, actual results could differ materially from the Company’s expectations as set forth herein. See “Forward-Looking Statements”.
In preparing the above outlook, the Company assumed, among other things, that the operators of the projects underlying royalties will meet expected production milestones and forecasts for the applicable period and that operators of optioned properties will elect to make all expected option payments over the period. This section includes forward-looking statements. See “Forward-Looking Statements”.
Portfolio Update
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 Americas.
Qualified Persons
Alastair Still, P.Geo., Director of Technical Services of the Company, is a “qualified person” as such term is defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects of Canadian Securities Administrators and has reviewed and approved the technical information disclosed in this news release.
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