Gold Royalty (GROY) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue and positive operating cash flow in 2024, with full-year revenue of $10.1M–$12.8M and Q4 revenue of $3.4M–$3.8M, reflecting significant portfolio growth and successful acquisitions.

• Positive operating cash flow of $2.5M and adjusted EBITDA of $4.8M for 2024, marking the first full year of positive results.

• Key assets (Côté, Borborema, Vareš) ramping up, driving near-term revenue growth and increased royalty coverage.

• Portfolio growth achieved through value-accretive acquisitions, focusing on large-scale, long-life mines and disciplined M&A since 2021.

• Capital allocation will prioritize debt repayment and disciplined, accretive growth as free cash flow inflection is reached in 2025.

Financial highlights

• Q4 2024 revenue, land agreement proceeds, and interest totaled $3.8M–$3.85M, up 192% year-over-year and 50% sequentially.

• Full-year 2024 revenue reached $10.1M–$12.8M, a 146%–231% increase from 2023.

• Q4 GEOs: 1,445 (vs. 667 Q4 2023); full-year GEOs: 5,462 (vs. 2,703 2023).

• Q4 operating cash flow: $1.26M (vs. $(1.73)M Q4 2023); full-year: $2.54M (vs. $(6.88)M 2023).

• Q4 Adjusted EBITDA: $1.24M (vs. $(3.05)M Q4 2023); full-year: $4.78M (vs. $(4.44)M 2023).

Outlook and guidance

• 2025 GEO guidance: 5,700–7,000, a midpoint increase of 16% over 2024, with three of seven cash-flowing assets ramping up.

• Five-year outlook: 23,000–28,000 GEOs in 2029, representing a 360%–367% increase from 2024, driven by ramp-up at key assets and new developments.

• 2025 is a ramp-up year for Côté, Borborema, and Vareš; other assets expected to deliver stable cash flows.

• Operating cost structure expected to remain stable, supporting higher margins and cash reserves.

• 2025 guidance assumes gold price of $2,668/oz and copper price of $4.23/lb; five-year outlook uses $2,212/oz gold and $4.24/lb copper.