Queen's Road Capital Investment (QRC) Q3 2024 earnings summary

Executive summary

• Achieved net income of $30.2M for Q3 and $78.0M for the nine months ended May 31, 2024, reversing prior year losses.

• Income driven by unrealized gains on investments, higher interest income, and establishment fees from new debenture investments.

• Major new investments include $70M in NexGen Energy and $30M in Gold Royalty convertible debentures.

• Declared and paid a dividend of C$0.019 per share in November 2023.

• Announced post-period $50M investment in Moxico Resources convertible debentures.

Financial highlights

• Total income from investments was $31.6M for Q3 and $81.7M for the nine months, compared to losses in the prior year.

• Interest and other income rose to $3.7M in Q3 and $10.5M YTD, up from $2.1M and $6.1M, respectively, year-over-year.

• Unrealized gains from investments were $31.7M in Q3 and $62.3M YTD, compared to unrealized losses last year.

• Realized gain from investments was $5.8M YTD, with a Q3 realized loss of $3.7M due to debenture conversion.

• Total assets increased to $333.9M as of May 31, 2024, from $237.2M at August 31, 2023.

Outlook and guidance

• Expects annual interest income of $14.5M from convertible debentures, with $10.1M in cash and $4.4M in shares.

• Management intends to continue focusing on convertible debt investments in resource companies.

• Sufficient working capital is available for current operational requirements; may raise additional capital as needed.