Stock Chart Gold Royalty Corp
Writer: Kevin Dwyer CEO,Head Trader
December 9, 2023
GOLD ROYALTY CORP: TRANSFORMATIVE GROWTH WITH A FOCUS ON PRECIOUS METALS IN THE AMERICAS
INTRODUCING GOLD ROYALTY CORP
Gold Royalty Corp GOLD ROYALTY is a leading growth-focused precious metals royalty and streaming Company. The Company has one of the strongest revenue growth outlooks in the sector, driven by a foundation of royalties on some of the largest gold mines in Canada and the USA. The portfolio is anchored in the best mining jurisdictions in the world, with critical assets fueling future growth operated by Newmont, Barrick, and Agnico Eagle. Gold Royalty acquired over 240 royalties in just three years, generating immediate cash flow growth and significant underlying exploration potential and optionality.
UNVEILING A STRATEGIC MOVE
At the crux of the recent investor webcast, CEO David Garofalo and his accomplished team outlined the details of Gold Royalty Corp's most recent transaction—the acquisition of a 2% net smelter return royalty on Aura Minerals' Borborema Gold project in Brazil. The investment structure provides a $31 million capital boost for the Borborema project through this royalty investment and a gold-linked convertible loan. The Borborema investment offers immediate cash flow per-share accretion, propelling the company towards positive free cash flow three years after its initial public offering.
To fund this transaction, Queens Road Capital (QRC) and Taurus Mining Royalty Fund (Taurus) have agreed to provide an aggregate of $40 million in financing through an unsecured convertible debenture investment in Gold Royalty Corp. These institutional investors are leading financiers in the global resources sector, and their strategic investment further validates the value-accretive transactions Gold Royalty is executing as part of its growth strategy.
ACQUISITIONS IN 2023: A YEAR OF CONCRETE MILESTONES
Gold Royalty Corp has had a busy year of acquisitions in 2023. In addition to—Borborema, the company acquired a royalty over the cash-flowing Cozamin mine as well as a royalty portfolio in Quebec from SOQUEM. This highlights the company's continued growth and ability to create value through increased uncertainty and volatility in the gold sector. Garofalo highlighted that this track record of accretive growth has attracted strategic shareholders, such as Barrick and GoldMining Inc., and other reputable investors.
BORBOREMA PROJECT: A GOLDEN ASSET
Borborema is expected to be one of Brazil’s next high-quality, low-cost gold mines, with tremendous exploration and expansion potential not incorporated into the mine plan. Aura Minerals is building the asset – a proven operator and developer with a solid local presence in Latin America who has recently successfully built the Almas mine in Brazil on time and on budget.
Gold Royalty Corp. has developed a remarkable de-risked financing structure, including pre-production payments, ensuring revenue and cash flow to the company before production, significantly reducing asset development risk.
STRATEGIC DEBENTURE FINANCING: STRONG ENDORSEMENT BY LEADING FINANCIERS
The orchestrated financing structured by Gold Royalty delivers a robust balance composition, offloading drawn borrowings under the credit facility and hence enhancing liquidity. When fully integrated, the careful economic alchemy underscores the company's strategic and malleable posturing for inexorable growth to further compound the organic and M&A-driven growth.
ESG COMMITMENT: ENVISIONING A SUSTAINABLE FUTURE
Gold Royalty's investment strategy interlaces seamlessly with its unwavering commitment to Environmental, Social, and Governance (ESG) imperatives. In partnership with operators such as Aura Minerals, the co-investment strategy fosters social and environmental advancements in communities proximate to mining activities. Aura is thus empowered to identify and enhance suitable programs, heralding a new epoch of responsible and impactful corporate contribution.
CONCLUDING REMARKS: A TRIUMPH OF STRATEGIC FINANCE
Gold Royalty's transformative transaction emboldens its market position, solidifying a forward trajectory favoured by sturdy double-digit returns and the potential for extended gains linked to gold market escalations. The collaborative endeavour demonstrates this world-class team’s expertise, business acumen in the sector, and ability to deliver continued growth.
VIDEOS & INTERVIEWS
THE STOCK
You can access the financial statements of the company by clicking on this link.
**Gold Royalty Corp - 90-Day Trading Performance**
Gold Royalty Corp (GROY) has positively traded over the last 90 days.
GROY has a market capitalization of approximately 216.66 million USD
- The stock price has shown volatility, with a 52-week range of 1.18 USD to 2.695 USD
- GROY has received a Buy rating from H.C. Wainwright, with a price target of 5.50 USD
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