GOLD ROYALTY REPORTS THIRD QUARTER 2024 RESULTS; RECORD REVENUE FOR THE FIRST NINE MONTHS OF 2024
VANCOUVER, BC, Nov. 4, 2024 /PRNewswire/ - Gold Royalty Corp. ("Gold Royalty" or the "Company") (NYSE:GROY) is pleased to announce the filing of its operating and financial results for the three and nine months ended September 30, 2024. All amounts are expressed in U.S. dollars unless otherwise noted.
David Garofalo, Chairman and CEO of Gold Royalty, commented: "The third quarter of 2024 marked an important inflection point for Gold Royalty. Our outlook continues to grow increasingly positive with the ramp up and construction of several key assets across our portfolio. We achieved record revenues, a stable expense profile, and positive net income through the first nine months of 2024 and have reiterated our full year guidance for expected Total Revenue, Land Agreement Proceeds and Interest* of $13 to $14 million in 2024. We continue to be excited about the outlook for 2025 as well, with more cash flowing assets, strong commodity prices, and our stable cost structure expected to translate to growing revenues and cash flows next year."
Third Quarter 2024 Results Summary:
The following table sets forth selected financial information for the three and nine months ended September 30, 2024:
For the three monthsended September 30
For the nine months endedSeptember 30
2024
2023
2024
2023
(in thousands of dollars, except per share amounts)
($)
($)
($)
($)
Revenue
2,060
797
6,748
2,032
General, administrative and project evaluation costs
(2,428)
(2,217)
(7,436)
(8,307)
Net income (loss)
3,423
(1,817)
(218)
(7,396)
Net income (loss) per share, basic
0.02
(0.01)
(0.00)
(0.05)
Net income (loss) per share, diluted
0.02
(0.01)
(0.00)
(0.05)
Cash provided by (used in) operating activities
(42)
(1,751)
1,281
(5,149)
Non-IFRS and Other Measures
Total Revenue, Land Agreement Proceeds and Interest*
2,601
1,370
9,001
3,897
Cash Operating Expenses*
(1,963)
(1,642)
(5,878)
(5,987)
Adjusted Net Income (Loss)*
4,238
(1,095)
1,571
(4,900)
Adjusted Net Income (Loss) Per Share, basic*
0.03
(0.01)
0.01
(0.03)
Adjusted Net Income (Loss) Per Share, diluted*
0.02
(0.01)
0.01
(0.03)
Total Gold Equivalent Ounces ("GEOs")*
1,051
711
4,017
2,036
* Total Revenue, Land Agreement Proceeds and Interest, Cash Operating Expenses, Adjusted Net Loss, Adjusted Net Loss Per Share, basic and diluted and Total GEOs are each non-IFRS measures and do not have a standardized meaning under IFRS. See "Non-IFRS Measures" for further information.
For further detailed information, please refer to the Company's unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three and nine months ended September 30, 2024, copies of which are available under the Company's profile at www.sedarplus.ca and www.sec.gov.
Third Quarter 2024 Highlights:
Approximate 160% increase in revenue and 90% increase in Total Revenue, Land Agreement Proceeds and Interest in the third quarter of 2024 from the same period in 2023.
In the third quarter of 2024, the Company recorded its second consecutive quarterly royalty payment from the Côté Gold Mine and continued to benefit from its existing cash flowing royalties on the Borborema Project and the Canadian Malartic, Cozamin, and Borden Mines. The Company's royalty generator model added $0.4 million in land agreement proceeds in the quarter.
Net income per share and Adjusted Net Income Per Share in the third quarter of 2024 was $0.02 and $0.03, respectively, compared to a net loss per share and Adjusted Net Loss Per Share in the third quarter of 2023 of $0.01 and $0.01, respectively.
The Company remains on track to achieve its annual guidance of between 6,500 and 7,000 GEOs for 2024, which equates to approximately $13 million to $14 million in forecasted Total Revenue, Land Agreement Proceeds and Interest, as it expects to benefit from the Vares Mine and Côté Gold Mine achieving full capacity by the end of the year and strong commodity prices. See "Notice to Investors" below for further information.
Portfolio Update:
Odyssey Mine (3.0% net smelter return ("NSR") royalty over the northern portion of the mine): Agnico Eagle Mines Limited ("Agnico Eagle") owns and operates the Canadian Malartic Complex which is one of the world's largest gold mining operations and is comprised of the open-pit Canadian Malartic mine and the underground Odyssey mine. The Canadian Malartic complex is progressively transitioning from open pit to underground mining between 2023 and 2028.
On October 30, 2024, Agnico Eagle announced its results for the third quarter of 2024, disclosing that ramp development and shaft sinking activities were progressing on-schedule, having reached a depth of 873 meters and 839 meters, respectively. Exploration drilling was conducted at the East Gouldie, Odyssey North and Odyssey South deposits, with surface drill holes intersecting the Odyssey Internal Zones with positive assay results. Agnico Eagle highlighted that this demonstrated the potential to add new mineral reserves and resources to the Odyssey Internal Zones and that they could be brought into production with existing infrastructure.
Additionally, regional exploration work has accelerated in the eastern portion of the Canadian Malartic Property, with widely spaced diamond drilling totaling over 15,000 meters during the third quarter of 2024 (41,700 meters during 2024) on the Rand Malartic and Malartic Goldfields properties. Gold Royalty holds a 1.5% NSR royalty over the Midway property part of the Malartic Goldfields property.
For further information see Agnico Eagle's news release dated October 30, 2024, available under its profile on www.sedarplus.ca.
Vares Mine (100% Copper Stream with ongoing payments of 30% of the spot copper price): On October 28, 2024, Adriatic Metals Ltd. ("Adriatic") issued its third quarter activities report. Highlights in the third quarter included the ramp-up of production at Vares with nameplate production expected in the fourth quarter of 2024. In the third quarter, 63,100 tonnes of ore was mined with tonnes milled increasing by 123% quarter over quarter. Underground development rates also increased by 13%, compared to the previous quarter. Exploration activities continued to advance drilling over 3,809 meters during the quarter and 13,283 meters in total over 2024. Additionally, Adriatic has received permits for the first phase of its Veovaca tailings storage facility, with construction having commenced already and expected by Adriatic to be finished in December 2024.
For further information see Adriatic's ASX Announcement dated October 28, 2024.
Côté Gold Mine (0.75% NSR royalty over the southern portion of the mine): On October 15, 2024, IAMGOLD Corporation ("IAMGOLD") provided an update on Côté Gold Mine operations which outlined third quarter gold production of 68,000 gold ounces and that the ramp up of the processing plant remains on track to exit the year at 90% of the design throughput rate of 36,000 tonnes per day ("tpd"). Record daily throughput of 40,900 tpd (+14% above nameplate) has been achieved following the scheduled shutdown in September. IAMGOLD disclosed that, since October 2, 2024, the plant has averaged a daily throughput of 30,000 tpd, equating to an average of 83% of nameplate design.
For further information see IAMGOLD's news release dated October 15, 2024, available under its profile on www.sedarplus.ca.
Granite Creek Mine Project (10.0% net profit interest): In its management's discussion and analysis for the three and six months ended June 30, 2024, i-80 Gold ("i-80") announced mineralized material had been accessed for the first time from the South Pacific Zone. Additionally, mining rates are expected to increase as i-80 continues to de-water the project and advance development of the South Pacific Zone.
On September 18, 2024, i-80 announced the appointment of Richard Young as CEO and director, disclosing that he brings strong experience in Nevada including operational positions with Barrick Gold at its Goldstrike Mine, one of the largest gold mines in North America. i-80 noted that Richard was the founder and CEO of Teranga Gold Corporation, playing a key role in its transformation from a single asset producer into a successful low-cost, mid-tier gold producer that was ultimately acquired by Endeavour Mining PLC in 2021 for more than C$2.5 billion.
For further information see i-80's management discussion and analysis for the three and six months ended June 30, 2024, and news release dated September 18, 2024, available under its profile on www.sedarplus.ca.
Cozamin Mine (1.0% NSR royalty over the southeastern portion of the property): On October 31, 2024, Capstone announced its third quarter 2024 results which outlined that third quarter 2024 production was 2% higher than the third quarter 2023 due to higher mill throughput driven by mine sequencing. Grades and recoveries were consistent with the ...
