Gold Royalty (GROY) Q2 2024 earnings summary

Executive summary

• Achieved transformational growth in Q2 2024, with a fourfold year-over-year increase in revenue, driven by new projects entering production, higher gold prices, and the Vares Copper Stream acquisition.

• Transitioned to consistent positive operating cash flow, generating $1.0–$1.2 million in Q2, marking the second consecutive quarter of positive results.

• Portfolio now includes 242–240+ royalties and streams, with flagship assets such as Odyssey, Vares, Côté Gold, REN, Borborema, and Granite Creek.

• Published second annual Asset Handbook and Sustainability Report, highlighting one of the lowest carbon intensity portfolios in the sector.

• Attracted sophisticated investors and finance providers, supporting the company's growth strategy.

Financial highlights

• Q2 2024 revenue reached $1.8–$2.2 million (947 GEOs), up approximately 300% year-over-year.

• First half 2024 revenue of $6.4 million already exceeds full-year 2023 revenue of $5.2 million.

• Cash operating costs decreased by about 9% year-over-year in Q2, with G&A and project evaluation costs down 20%.

• Net loss for Q2 2024 was $2.2 million (or $0.01 per share), improved from $2.5 million loss in Q2 2023.

• Market capitalization at $243 million, with $2.3 million in cash and marketable securities as of March 31, 2024.

Outlook and guidance

• 2024 revenue guidance is $13–14 million (6,500–7,000 GEOs), with expectations to benefit from ramp-up at Côté and Vares mines in H2.

• Consensus analyst estimates project GEOs to approach 30,000 by the end of the decade, up from 6,500–7,000 in 2024.

• Positive free cash flow expected to be sustained through 2024 and 2025.

• On track to meet 2024 guidance, with key assets ramping up in the second half.

• 2024 outlook based on gold price of $2,000/oz and copper price of $4.25/lb.