The Prospector News

GOLD ROYALTY REPORTS FIRST QUARTER 2024 RESULTS; RECORD REVENUE DRIVES POSITIVE OPERATING CASH FLOW

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

GOLD ROYALTY REPORTS FIRST QUARTER 2024 RESULTS; RECORD REVENUE DRIVES POSITIVE OPERATING CASH FLOW

 

 

 

 

 

Gold Royalty Corp. (NYSE American: GROY) is pleased to announce the filing of its operating and financial results for the three months ended March 31, 2024. All amounts are expressed in U.S. dollars unless otherwise noted.

 

David Garofalo, Chairman and CEO of Gold Royalty, commented: “We are proud to have delivered on another growth milestone in the first quarter, generating positive operating cash flow for the first time. Our recent acquisitions, royalty generator model, and existing flagship royalties fueled our record revenue this quarter. We also continued to lower our cost profile compared to the prior year. With the gold price near all-time highs and the ramp up of the Côté Gold Mine in the second half of 2024, we expect to see continued royalty revenue growth through the remainder of the year.

 

Our peer-leading long-term growth outlook and fundamentals continue to improve, driven primarily by Agnico Eagle’s long-life large-scale Odyssey Mine, where underground development is ahead of expectations, Nevada Gold Mine’s REN deposit which continues to be advanced towards production later this decade, and at Aura’s Borborema gold project where production is expected by early next year.”

 

First Quarter 2024 Results Summary:

 

The following table sets forth selected financial information for the three months ended March 31, 2024:

 

For the three months ended
March 31
2024 2023
(in thousands of dollars, except per share amounts) ($) ($)
Revenue 2,894 767
General, administrative and project evaluation costs (2,875) (3,424)
Net loss (1,405) (3,083)
Net loss per share, basic and diluted (0.01) (0.02)
Cash provided by (used in) operating activities 336 (2,061)
Non-IFRS and Other Measures
Total Revenue, Land Agreement Proceeds and Interest(1) 4,185 1,970
Cash Operating Expenses(1) (2,260) (2,523)
Adjusted Net Loss(1) (930) (1,318)
Adjusted Net Loss Per Share, basic and diluted(1) (0.01) (0.01)
Total Gold Equivalent Ounces (“GEOs“)(1) 2,019 1,043
(1) 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.

 

For further detailed 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, 2024, copies of which are available under the Company’s profile at www.sedarplus.ca and www.sec.gov.

 

First Quarter 2024 Highlights:

  • Record quarterly revenue of $2.9 million and record Total Revenue, Land Agreement Proceeds and Interest of $4.2 million (2,019 GEOs), which was 112% higher than the same period of 2023. Record quarterly revenue was driven by the first full quarter of revenue from the recently acquired interests in the Borborema project, royalty payments under the recently acquired Cozamin royalty interest and increased revenue from Canadian Malartic and land agreement proceeds.
  • Achieved its first quarter of positive cash flows from operations of $0.3 million, which does not include an additional $1.1 million of land agreement proceeds credited against mineral properties.
  • Cost management initiatives resulted in a continued decrease in Cash Operating Expenses. Cash Operating Expenses decreased by 10% to $2.3 million from $2.5 million in the same period of 2023.
  • Continued advancement at key development stage assets, including first gold pour at the Côté Gold Mine, underground shaft and ramp development ahead of schedule at the Odyssey Mine, and construction at the Borborema project on track for production in early 2025.
  • Forged a strategic alliance with Taurus Mining Royalty Fund L.P. which expands the Company’s deal origination and identification in addition to improving its ability to compete for larger high-quality investments.

 

Portfolio Update

 

Odyssey Mine (3.0% NSR over the northern portion of the mine): Agnico Eagle Mines Limited owns and operates the Canadian Malartic Complex that is one of the world’s largest gold mining operations and is comprised of the open-pit Canadian Malartic mine and the underground Odyssey mine. The Canadian Malartic complex will progressively transition from open pit to underground mining between 2023 and 2028.

 

On April 25, 2024, Agnico Eagle announced its first quarter 2024 results, including an update that construction at the Odyssey mine is progressing well. Ramp development continued to exceed Agnico Eagle’s target and shaft sinking improved during the quarter. The shaft is expected to provide hoisting capacity by mid-2025, six months earlier than previously planned and will provide added development and production flexibility. As at March 31, 2024 the shaft has reached a depth of approximately 452 meters and Agnico Eagle expects to complete excavation of the shaft in 2027.

 

Agnico Eagle further outlined a summary of its first quarter operating results at the Odyssey mine. At the Barnat pit, good equipment availability and productivity, drove solid operational performance despite challenging weather conditions. At Odyssey South, the mining rate and production were slightly below plan at approximately 3,300 tpd and 17,700 ounces of gold, respectively. The underground operations are expected to gain additional flexibility in the second quarter of 2024, with the start of a second mining front and the addition of four 65 tonnes haulage trucks. Stope reconciliation at Odyssey South remains positive, primarily from the contribution of the internal zones, which resulted in approximately 16% more gold ounces produced than anticipated.

 

For further information see Agnico Eagle’s news release dated April 25, 2024, available under its profile on www.sedarplus.ca.

 

Côté Gold Mine (0.75% NSR royalty over the southern portion of the mine): On March 31, 2024, IAMGOLD Corporation announced the first gold pour at the Côté Gold Mine. It stated that its next step is to focus on ramp-up towards commercial production in the third quarter of 2024, with the goal of achieving a 90% throughput rate at year end. IAMGOLD maintained its production guidance for the project for the year at 220,000 to 290,000 ounces of gold (100% basis), assuming the remaining milestones are achieved.

 

For further information see IAMGOLD’s news release dated March 31, 2024, available under its profile on www.sedarplus.ca.

 

Borborema Gold Project (2.0% NSR royalty and gold-linked royalty-convertible loan): On May 7, 2024, Aura Minerals Inc. announced its first quarter 2024 results including an update on construction at the Borborema project. Following commencement of construction in the third quarter of 2023, Aura announced that construction is well underway with 25% completed to date, and production expected to start in early 2025. Gold Royalty expects to receive 1,440 GEOs in 2024 from Aura through fixed pre-production payments associated with the 2.0% NSR royalty and gold-linked coupon payments associated with the gold-linked royalty-convertible loan.

 

For further information see Aura’s news release dated May 7, 2024, available under its profile on www.sedarplus.ca.

 

Ren Project (1.5% NSR royalty and 3.5% NPI): In its management’s discussion and analysis for the year ended December 31, 2023, Barrick Gold Corporation highlighted continued exploration success at the Ren deposit. The step-out surface drilling program intercepted the targeted Corona dike at a depth of approximately 900 meters downhole and returned 4.7 meters at 24.90 g/t Au, which it stated confirmed the continuity of high-grade mineralization and paving the way for underground platform development in the future to convert more material to the west.

 

In its management’s discussion and analysis for the three months ended March 31, 2024, Barrick included an update on growth and exploration projects. At Carlin, underground conversion drilling commenced across all sites in the first quarter, with step-out growth drilling expected to commence early in the second quarter at a few key project areas.

 

For further information see Barrick’s management’s discussion and analysis for the year ended December 31, 2023 and management’s discussion and analysis for the three months ended March 31, 2024, each available under its profile on www.sedarplus.ca.

 

Granite Creek Mine Project (10.0% NPI): On February 7, 2024, i-80 Gold Corp provided a summary of 2023 activities and 2024 exploration and development plans, including ongoing initiatives at the Granite Creek Mine Project. The South Pacific Zone is a priority area of development for i-80 and, and they have announced plans to advance a development plan that will include extending a decline in order to provide access to the SPZ allowing it to become part of Granite Creek mine plan in H1-2024. Ewan Downie, CEO of i-80 stated, “The results from our 2023 definition programs demonstrate the potential for the SPZ to be a significant deposit located on strike from one of North America’s largest gold mining operations. Mineralization remains open at depth and along strike to the north with the average intercept grade in the northern extension definition program of approximately 15 g/t gold with true widths ranging up to 15 metres.”

 

i-80 also announced on May 7, 2024 that the work being conducted in 2024 at Granite Creek is expected to include definition and expansion drilling, underground development and test mining of the South Pacific Zone, and a Feasibility Study.

 

For further information see i-80’s news releases dated February 7, 2024 and May 7, 2024, available under its profile on www.sedarplus.ca.

 

Cozamin Mine (1.0% NSR over a portion of the mine): On January 24, 2024, Capstone Copper Corp. reported 2023 production and 2024 guidance. Production from Cozamin in 2024 is anticipated by Capstone to be similar to 2023 at 22,000 to 24,000 tonnes of copper on a 100% basis. Operating costs in 2024 are forecasted by Capstone to be higher than those in 2023 driven by a higher proportion of cut-and-fill mining methods compared to longhole stoping, along with a stronger Mexican peso.

 

On May 2, 2024, Capstone announced its first quarter 2024 results which outlined that first quarter 2024 production was 15% higher than the first quarter 2023 due to higher grades consistent with the mine plan.

 

For further information see Capstone’s news releases dated January 24, 2024 and May 2, 2024 available under its profile on www.sedarplus.ca.

 

Royalty Generator Model Update

 

Our Royalty Generator Model continues to generate positive results with one new royalty added in the three months ended March 31, 2024. We have generated 40 royalties since the acquisition of Ely Gold Royalties Inc. in 2021 through this model.

 

We currently have 31 properties subject to land agreements and 6 properties under lease generating land agreement proceeds. The model continues to incur low operating costs with only $0.002 million spent on maintaining the mineral interests in the first quarter of 2024.

 

2024 Outlook

 

The Company remains on track to meet its previously disclosed forecast of between approximately 5,000 and 5,600 GEOs in 2024 which equates to approximately $10.0 million to $11.2 million in Total Revenue, Land Agreement Proceeds and Interest at a gold price of $2,000 per ounce. This would represent a midpoint increase in GEOs of approximately 100% relative to 2023.

 

The Company’s recurring Cash Operating Expenses are currently expected to be consistent with 2023 and the Company expects to achieve positive operating cash flow in 2024 when a number of its growth projects ramp up in production, including the long-life cornerstone mines at Côté and Odyssey and a full year of cash inflows from the recently acquired Cozamin and Borborema royalties.

 

The 2024 outlook regarding total GEOs is based on public forecasts, expected development timelines and other disclosure by the owners and operators of the properties underlying our interests and our assessment thereof.

 

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 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

Posted May 14, 2024

Share this news article

MORE or "UNCATEGORIZED"


NEW GOLD COMPLETES US$173 MILLION BOUGHT DEAL FINANCING

New Gold Inc. (TSX: NGD) (NYSE American: NGD) is pleased to annou... READ MORE

May 17, 2024

SILVER VIPER CLOSES LIFE OFFERING

Silver Viper Minerals Corp. (TSX-V: VIPR) (OTC: VIPRF) announces... READ MORE

May 17, 2024

MAX Power Closes $1.9 Million Private Placement

MAX Power Mining Corp. (CSE: MAXX) (OTC: MAXXF) (FRANKFURT: 89N) ... READ MORE

May 17, 2024

McEwen Copper Announces Completion of the Feasibility Drilling Program

70,000 meters completed, highlights include:   349.0 m of 0.77... READ MORE

May 17, 2024

Rupert Resources Reports Results From Project Drilling Including 120m at 6.2g/t Gold

Rupert Resources Ltd. (TSX:RUP) reports assay results from projec... READ MORE

May 16, 2024

Copyright 2024 The Prospector News