Gold Royalty (GROY) 2024 Precious Metals Summit Beaver Creek summary

Strategic growth and portfolio development

• Achieved rapid scale since 2021 IPO, expanding from 18 to 242 royalty and streaming assets, focusing on high-quality, long-life projects.

• Executed major acquisitions including Ely Gold Royalties, Golden Valley, Abitibi Royalties, Vares copper stream, and Borborema royalty, driving immediate and significant revenue growth.

• Shifted strategy post-2022 to target cash-flowing assets, enhancing near-term revenue and reducing reliance on development-stage projects.

• Portfolio now includes seven cash-flowing assets, a dozen in development, and over 200 exploration-stage assets, with 80%+ located in top-tier jurisdictions (Quebec, Ontario, Nevada).

• Key assets are operated by leading, well-capitalized mining companies, reducing development risk and ensuring operational expertise.

Financial performance and outlook

• Revenue guidance for 2024 is $13–$14 million, with a fixed cost base of $7–$8 million, resulting in positive operating cash flow.

• Updated 2024 guidance reflects a ~160% increase in total revenue, land agreement proceeds, and interest compared to 2023.

• Projected revenue growth to nearly $40 million annually as development assets reach commercial production.

• Analyst consensus estimates indicate a ~$477M NAV and over 61% revenue CAGR, with recent acquisitions expected to contribute 30%-70% of expected GEOs from 2025-2028.

• 2028 expected to be a major inflection point as Canadian Malartic transitions to underground mining, significantly boosting revenue.

Market positioning and valuation

• Trades at 0.5x net asset value, below larger peers, but aims to achieve a premium multiple through continued growth and consolidation.

• Positioned as an emerging intermediate royalty and streaming company, attractive to institutional investors due to scale and growth potential.

• Maintains a predominantly gold-focused portfolio (90%), with recent selective copper exposure.

• Strong shareholder base includes major industry players and strategic investors, supporting future M&A and co-investment opportunities.

• Simple capital structure: 169 million shares, $221M market cap, $3.9M cash, $35M credit facility (with ~$25M drawn), and $40M convertible debentures held by supportive investors.