| The royalty company built for success
| | | Please find below a special message from our advertising sponsor, Gold Royalty Corp. Golden Opportunities is a free service that gives you valuable investment intelligence all year long at no charge, and advertisements allow us to continue sending these reports.
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Starting in 2021 with royalties on 14 projects in the Americas, Gold Royalty Corp. (GROY.NYSE-A) has gone on to absorb three smaller royalty companies and expand its portfolio to an amazing 192 royalties.
With foundational, long-lived assets and a deep portfolio of development and exploration stage projects, Gold Royalty is built to deliver tremendous leverage on the yellow metal.
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Finding assets that can outperform the yellow metal is high on every gold bug’s list of things to do in a gold bull market.
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And over the past couple of cycles, the best way to do that is to invest in gold royalty companies.
Because these companies take a top-end piece of gold sales and have low operational costs, they have consistently offered great leverage on gold with much less risk. That’s why investors value royalty companies more highly than typical miners.
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But let’s also consider why investors also consider Gold Royalty Corp. (GROY.NYSE-A) among the top options in the entire sector….
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The company began life in 2021 with an impressive portfolio of 14 royalties on the assets owned by GoldMining Inc. It went on to grow by acquisition, absorbing three smaller royalty companies.
That acquisition binge has given Gold Royalty huge value: a portfolio of fully 192 royalties. Moreover, as you’re about to see, those royalties include foundational assets and a suite of development-stage projects.
Gold Royalty’s goal? To stage a lucrative re-rating that catapults the company into a space all by itself in the mid-tier of the royalty sector.
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Foundational, Long-Lived Assets To Build On
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For Gold Royalty, that goal starts with cornerstone royalties on three of North America’s largest gold mines — Canadian Malartic, Côté and Ren, the underground extension of Barrick’s Goldstrike mine.
At Canadian Malartic, located in Quebec’s portion of the prolific Abitibi Gold Belt, Gold Royalty owns a rich 3.0% net smelter return (“NSR”) on the Odyssey Underground portion of the mine.
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Owned in a partnership between Agnico Eagle and Yamana Gold, Odyssey is on track to be one of Canada’s largest underground mines when it produces first gold in 2023.
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At Côté in northeastern Ontario, IAMGOLD aims to have commercial production up and running by the second half of 2023.
Côté is expected to deliver average annual production of 489,000 ounces gold in the first five years of its mine life. That will deliver $12.0 million to Gold Royalty over the first four full years of post-production ramp-up.
Then there’s the longer-term promise of Barrick’s Ren property in Nevada. This is a rich, high-grade deposit with an inferred maiden resource of 1.24 million ounces at 7.3 g/t. Gold Royalty owns a 1.5% NSR and a 3.5% net profits interest (NPI) on that project.
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A Wealth Of Development Stage Assets
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Building on these foundational assets, Gold Royalty has 22 royalties with assets already in development. These include:
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• Fenelon: Gold Royalty holds a 2.0% NSR on this Wallbridge property in Quebec, which will see 115,000 meters of drilling in 2022.
• Beaufor: This Monarch Mining project in Quebec is preparing for first gold production in June 2022. Gold Royalty owns a 1.0% NSR and PTR on this project.
• La Mina: GoldMining produced a PEA on this Colombian project in January that showed it producing 102,000 ounces of gold equivalent per year at AISC of $698/oz. Gold Royalty holds a 2.0% NSR on La Mina.
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The company also holds a 0.5% NSR and PTR on First Majestic’s producing Jerritt Canyon mine, which has 2022 production guidance of between 116,000 and 129,000 ounces of gold.
All of these projects have significant exploration upside that could add to their value to Gold Royalty down the road.
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A Great Financial Position
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Beyond its impressive royalty portfolio, Gold Royalty Corp. is primed for success financially.
On Sept. 3, 2021, it entered into a commitment for up to a $25 million revolving credit facility. Combined with a robust cash position, Gold Royalty has $50 million of available liquidity and no currently outstanding debt.
That position will allow Gold Royalty to stay opportunistic on the merger and acquisition front. It has also instituted a quarterly dividend that will yield 1% on an annualized basis.
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Gunning For A Lucrative Re-Rating
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That dividend is all part of Gold Royalty’s strategy of taking over the mid-tier space within the royalty sector.
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As you’ll discover in Brien Lundin’s recent interview with Gold Royalty CEO (and former Goldcorp CEO) David Garofalo, the company believes a lucrative re-rating is in the cards as it executes on its goals for the next couple of years.
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Just click below to hear their thoughts on the macro picture, Gold Royalty’s value proposition and how the company plans to deliver powerful leverage for its shareholders on rising gold prices.
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CLICK HERE
To Watch Brien Lundin’s
Interview With
Gold Royalty Corp. CEO David Garofalo
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Opportunities has paid the publisher for the costs and compensation related to the authorship, overhead, design and distributing this online edition, in the amount of $7,500. The publisher may receive revenue, the amount of which cannot be predetermined, from sales resulting from any accompanying offer. Authors of articles contained herein may have been compensated for their services in preparing such articles.
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