Gold Royalty Corp. (NYSE American: GROY) is pleased to announce the filing of its operating and financial results for the three months and six months ended June 30, 2023. The Company will be hosting an Investor Webcast to discuss these results and update on Friday, August 11 at 10:00 AM EDT. All amounts are expressed in U.S. dollars unless otherwise noted.
David Garofalo, Chairman and CEO of Gold Royalty, commented: “We have maintained our 2023 financial guidance and are encouraged by the expected near-term organic cash flow growth of our portfolio with assets such as Cote and Odyssey on the cusp of entering and ramping up production. Our team has continued to execute our growth strategy in a disciplined manner, having recently announced the agreement to acquire the Cozamin royalty while simultaneously achieving a 30% decrease in quarterly cash operating expenses year over year. We expect a strong second half of 2023 with increased production from Canadian Malartic, initial revenues from Cozamin, and Cote nearing completion of construction.”
Highlights for the three and six months ended June 30, 2023, include:
|*Adjusted Net Loss Per Share, Total Revenue and Land Agreement Proceeds and Cash Operating Expenses are non-IFRS measures and should not be considered in isolation or as a substitute for analysis of the Company’s results under IFRS. See “Non-IFRS Measures” below for further information.|
The following table sets forth selected financial information for the three and six months ended June 30, 2023:
|For the three months
|For the six months
|(in thousands of dollars, except per share amounts)||($)||($)||($)||($)|
|Net loss per share, basic and diluted||(0.02)||(0.03)||(0.04)||(0.05)|
|Dividends declared per share||0.01||0.01||0.02||0.01|
|Cash used in operating activities||(1,337)||(4,205)||(3,398)||(11,821)|
|Non-IFRS and Other Measures|
|Total Revenue and Land Agreement Proceeds*||557||2,024||2,527||3,783|
|Cash Operating Expenses*||(1,822)||(2,618)||(4,345)||(6,383)|
|Adjusted Net Loss*||(2,487)||(2,036)||(3,805)||(4,184)|
|Adjusted Net Loss Per Share, basic and diluted*||(0.02)||(0.02)||(0.03)||(0.03)|
|Total gold equivalent ounces (“GEOs”)*||237||1,031||639||1,376|
|* See Non-IFRS Measures below.|
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 and six months ended June 30, 2023, copies of which are available under the Company’s profile at www.sedar.com and www.sec.gov.
Management currently believes the Company is on track to meet its previously disclosed forecast of $5.5 million and $6.5 million in total revenues and land agreement proceeds in 2023 based on the production guidance published to date by the operators of the properties underlying the ‘Company’s interests, a forecasted gold price ranging from $1,700 to $2,000 per ounce and expected payments from land agreements. The Company expects to incur $7.0 to $8.0 million in recurring cash operating expenses in 2023 (forecasted operating expenses, excluding transaction-related and other non-recurring expenses) which remains unchanged as well. The Company currently expects that it will generate positive net operating cash flow in 2024 (forecasted operating cash flow before movement in non-cash working capital adjusted for land agreement proceed credited against mineral properties) when select key growth projects are expected to ramp up in production, including the long-life cornerstone mines at Côté and Odyssey.
The foregoing projected outlook constitutes “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws 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.
In preparing the above outlook, management assumed, among other things, that the operators of the projects underlying the Company’s royalties will meet expected production milestones and forecasts for the applicable period and that operators of land agreements will elect to make all expected payments over the period. See “Forward-Looking Statements”.
Royalty Generation Model Update
The Company’s Royalty Generator Model had a productive quarter with two new royalties during the quarter. The Company has now generated 37 royalties since the acquisition of Ely Gold Royalties in 2021 through this model. Details of the new royalties generated during the quarter are as follows:
The Company currently has 31 properties for land agreements and 7 properties under lease and expects to generate $3.2 million in land agreement proceeds in 2023 assuming all land option agreements are exercised. The model continues to be a low-cost portion of the business with only $81,000 spent on mineral interests maintenance expense during the first half of 2023.
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.
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.
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