Gold Royalty Corp. (NYSE: GROY) has filed its operating and financial results for the second quarter ending June 30, 2024. The company’s performance during this period has been described as “transformational” by David Garofalo, Chairman and CEO, underscoring significant milestones that position the company for sustained growth in the latter half of the year.
The second quarter of 2024 marked a pivotal period for Gold Royalty Corp., largely driven by strategic acquisitions and key projects approaching full production. Among these, the Vares Copper Stream was acquired for $50 million from Orion Mine Finance. The project is expected to achieve commercial production in the fourth quarter of 2024.
Garofalo emphasized the importance of these developments, stating, “The second quarter of 2024 was transformational for Gold Royalty as we meaningfully enhanced our growth outlook through the Vares Copper Stream transaction.”
This acquisition complements the progress at other key projects like Côté, which recently reached commercial production, and Borborema, set to commence production in early 2025.
At the end of Q2 2024, the firm produced 947 gold equivalent ounces (GEOs), an improvement from the 282 GEOs produced in the same period last year.
In its financials, Gold Royalty reported a quarterly revenue of $1.8 million, a substantial increase from the $468,000 reported in the same quarter of 2023. This represents an approximate 300% increase in revenue, driven by the company’s diversified portfolio and the commencement of royalty payments from IAMGOLD’s Côté Gold Mine. The total revenue, land agreement proceeds, and interest for the quarter reached $2.2 million.
The company has also achieved its second consecutive quarter of positive cash flows from operations, reporting $1 million in operating cash flow. This is a marked improvement from the negative cash flow of $1.3 million reported in the same quarter of 2023.
“Our strategic acquisitions over the past twelve months and effective cost management have reinforced our robust financial outlook and resulted in our second consecutive quarter of positive operating cash flow,” Garofalo noted.
However, despite these improvements, Gold Royalty still reported a net loss of $2.2 million for the quarter, slightly down from the $2.5 million loss in the same period last year. This translated to a net loss per share of $0.01, compared to $0.02 in the second quarter of 2023.
The company’s adjusted net loss, which excludes certain non-operational expenses, was $1.7 million, also reflecting a slight improvement over the previous year.
Looking ahead, Gold Royalty remains optimistic about its growth trajectory for the remainder of 2024. The company expects to generate between 6,500 and 7,000 gold equivalent ounces (GEOs) for the year, equating to approximately $13 million to $14 million in total revenue, land agreement proceeds, and interest. This forecast is based on the anticipated ramp-up of the Côté Gold Mine, which is expected to reach 90% of its nameplate capacity by the end of the year, and the commencement of commercial production at the Vares Project.
The outlook is also supported by favorable commodity prices, with the company’s forecasts based on an assumed gold price of $2,000 per ounce and a copper price of $4.25 per pound.
Gold Royalty last traded at $1.32 on the NYSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
