Core Viewpoint - Gold Royalty Corp. has enhanced its cash flow profile and strengthened its balance sheet through the retirement of long-term fixed interest convertible debentures and an upsized credit facility with lower borrowing costs [1][3]. Upsized Credit Facility - The existing revolving credit facility has been increased to US$75 million, with an additional US$25 million available under certain conditions [1][4]. - The maturity of the facility has been extended to November 2028, and the interest rate has improved from SOFR plus a fixed 3.0% margin to a range of 2.5% to 3.5% based on the company's leverage ratio [2][5]. - The facility is available for general corporate purposes, acquisitions, and investments, and includes customary financial covenants [4][5]. Retirement of Convertible Debentures - The company completed an early redemption and conversion of its outstanding 10% convertible debentures, totaling US$40 million, which were issued in December 2023 [6][10]. - The early redemption rights were exercised immediately, allowing holders to convert their debentures to common shares at a price of US$1.75, a 20% premium to the 20-day volume-weighted average price at issuance [8][9]. - A total of 23,288,896 common shares were issued to debenture holders, eliminating the entire principal amount outstanding of the debentures [10]. Financial Impact - The CFO stated that the facility expansion and debenture retirement significantly improve the balance sheet, lower the cost of capital, and enhance liquidity, positioning the company for long-term growth [3]. - The initial US$31 million investment in the Borborema royalty has already generated US$7.2 million in cash flows, with commercial production achieved on schedule [3].

Core Insights - Gold Royalty Corp (NYSE:GROY) has achieved record revenue driven by the ramp-up of its portfolio and new mines entering production [1][2][4] Financial Performance - The company reported record revenue of $4.1 million in Q3, with total revenue including land agreement proceeds and interest reaching $4.6 million from 1,323 gold ounces produced [2] - Adjusted EBITDA for the quarter was a record $2.5 million, and positive cash flow from operations was $2.4 million [2] - Despite the strong revenue performance, the company recorded a net loss of $1.13 million, or $0.01 per share, compared to a net income of $3.4 million, or $0.02 per share, in the same quarter last year [3] Management Commentary - David Garofalo, Chairman and CEO, highlighted the successful ramp-up of the portfolio and the positive cash flow, which has allowed the company to reduce debt and lower interest costs [4] - The company aims to continue using cash generated from operations to de-lever through 2026 [4] Analyst Rating - Maxim Group analyst Tate Sullivan reiterated a Buy rating on GROY with a price target of $5 [4] Company Overview - Gold Royalty Corp focuses on acquiring and managing royalties and streams for metals and mining companies, providing creative financing solutions and building a diversified portfolio to generate returns [5]

Core Viewpoint - Gold Royalty Corp. reported a second consecutive quarter of positive free cash flow, along with record revenue, adjusted EBITDA, and operating cash flow, indicating strong financial performance and growth potential [5]. Financial Performance - The company achieved record revenue and adjusted EBITDA, reflecting the successful curation of its asset portfolio over the past five years [5]. - Positive free cash flow for the second consecutive quarter demonstrates the company's effective capital management and operational efficiency [5]. Capital Allocation Strategy - The company emphasized its approach to capital allocation, indicating a focus on maximizing growth and value creation from its assets [6].

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $2.5 million in Q3 2025, an increase from $2.4 million in the previous quarter and up from $779,000 in Q3 2024 [5] - Total revenue for the quarter was $4.6 million, translating to 1,323 gold equivalent ounces [5] - The company reduced its debt from $27.3 million at the end of June to $20.5 million as of the call date [6] Business Line Data and Key Metrics Changes - The company generated positive free cash flow for the second consecutive quarter, improving its liquidity position [5][6] - The production forecast for Gold Royalty's account is expected to be around or modestly below the bottom end of the previously disclosed guidance range of 5,700-7,000 gold equivalent ounces for 2025 [13] Market Data and Key Metrics Changes - Tether disclosed acquiring a 10% position in Gold Royalty, which the company views as validation of its asset value [8] - The competitive landscape includes at least 30 public royalty and streaming companies and an estimated 20 private entities seeking to acquire royalties and streams [10] Company Strategy and Development Direction - The company prioritizes debt repayment while considering strategic growth opportunities in a disciplined manner [4] - The company aims to be essentially debt-free by the end of 2026, enhancing balance sheet flexibility for long-term strategy execution [4] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the medium and long-term outlook despite short-term disruptions from the Vares Mine [19] - The company maintains a five-year guidance of 23,000-28,000 gold equivalent ounces by 2029, focusing on mature and brownfield operations [19] Other Important Information - The company has grown its portfolio 14-fold in under five years to over 250 assets, with seven currently cash flowing [9] - The company is not prioritizing pre-construction royalties but is focusing on cash-flowing royalties [11] Q&A Session Summary - No questions were posed during the Q&A session, and management encouraged shareholders to reach out directly for any inquiries [22][23]

Growth & Production - Gold Royalty expects significant growth over the next five years, with over 80% of growth to 2029 coming from assets already permitted and built, at least to a first phase[40] - The company's 2025 guidance is 5,700-7,000 GEOs[12], and the five-year outlook shows significant growth[40] - Borborema is expected to reach between 40% and 48% of designed nominal capacity in 2025, equivalent to an annualized rate of 83,000oz Au[104] - REN is expected to achieve an annual production rate of 140,000 ounces of gold by 2027[50, 115] - Cozamin's average expected production is 20kt copper and 1.3 Moz silver per year[159] Portfolio & Assets - Gold Royalty has a diversified portfolio of over 250 royalties/streams[11, 52] - Over 90% of the company's value is in gold[33] - The company holds royalties on three of North America's five largest gold mines[18] - Vareš is expected to achieve an 850,000 tonne per year operating rate by year-end 2026[50, 103] - Côté Gold achieved a steady-state nameplate throughput rate of 36,000tpd in June 2025[104] Valuation & Financials - Gold Royalty's recurring cash operating expenses are expected to be $7-8M per year[48] - The company has a credit facility of $75M, with $27.3M drawn[75] - The company has convertible debentures of $40.0M[75]

Core Viewpoint - Gold Royalty Corp. has adopted a shareholder rights plan to protect and maximize shareholder value in the event of unsolicited takeover bids or attempts to acquire control of the company [2][3]. Summary by Sections Shareholder Rights Plan - The plan was adopted to ensure equal and fair treatment of all shareholders during unsolicited takeover attempts [2]. - It is not a response to any specific takeover bid, and the company is not aware of any pending proposals [2]. Rights Issuance - One right will be issued for each outstanding common share on the record date of November 17, 2025, and will attach to each new common share issued thereafter [3]. - Rights become exercisable if a person acquires 15% or more of the outstanding shares without complying with the plan's provisions, allowing holders to purchase additional shares at a discount [3]. - A higher threshold of 20% applies to entities not party to any standstill or similar arrangement with the company [3]. Plan Duration and Ratification - The plan has an initial term of three years, contingent upon ratification by shareholders within twelve months [4]. - If not ratified, the plan and any rights issued will terminate [4]. Company Overview - Gold Royalty Corp. focuses on providing financing solutions in the metals and mining industry, aiming to build a diversified portfolio of precious metals royalty and streaming interests [6]. - The company's portfolio primarily consists of net smelter return royalties on gold properties located in the Americas [6].

Core Insights - Gold Royalty Corp. reported record revenue for the third quarter of 2025, driven by new mines entering production and positive cash flow [2][9] - The company has successfully reduced debt and interest costs while strengthening its balance sheet, with plans to continue de-leveraging through 2026 [2][9] Financial Performance - For the three months ended September 30, 2025, revenue reached $4.148 million, a significant increase from $2.060 million in the same period of 2024, representing a growth of 101.4% [6] - Net loss for the third quarter was $1.133 million, compared to a net income of $3.423 million in Q3 2024 [6] - Adjusted EBITDA for the quarter was $2.517 million, up from $779 thousand in Q3 2024, indicating a strong operational performance [6][9] - Total Revenue, Land Agreement Proceeds, and Interest amounted to $4.573 million for Q3 2025, compared to $2.601 million in Q3 2024, marking a 75.6% increase [6][9] Operational Highlights - The company reported production of 1,323 gold equivalent ounces (GEOs) in Q3 2025, an increase from 1,051 GEOs in Q3 2024 [6][41] - Cash provided by operating activities was $2.438 million for the quarter, a significant improvement from a cash usage of $42 thousand in Q3 2024 [6] - The company repaid $2 million to its revolving credit facility in Q3 and an additional $5 million post-quarter, demonstrating responsible capital allocation [9] Portfolio Updates - The Borborema project achieved commercial production in Q3 2025, contributing to the company's revenue growth [11] - The Côté Gold mine produced 106,000 ounces in Q3 2025, continuing its strong performance with expected cash costs of $1,100-$1,200 per ounce [14] - The Canadian Malartic / Odyssey mine is progressing ahead of schedule, with initial production expected in the second half of 2026 [13] Future Outlook - The company plans to continue leveraging cash generated from operations to reduce debt throughout 2026 [2][9] - The royalty generator model has added two new royalties in the nine months ended September 30, 2025, contributing to a total of 51 royalties since the acquisition of Ely Gold Royalties Inc. [22][23]

Revenue Performance - Revenue for Q3 2025 reached $4,148,000, a 101.5% increase compared to $2,060,000 in Q3 2024[4] - Revenue for the three months ended September 30, 2025, was $4,148,000, a 101.0% increase from $2,060,000 in the same period of 2024[47] - Revenue for the nine months ended September 30, 2025, reached $11,109,000, up 64.5% from $6,748,000 in 2024[47] - Revenue from Canada for the nine months ended September 30, 2025, was $3,443,000, up from $2,341,000 in 2024, reflecting a 47.3% increase[71] - The company recognized $326,000 in revenue for prior periods due to a favorable judgment related to royalties from the Jerritt Canyon Mine[47] Profitability and Loss - Gross profit for the nine months ended September 30, 2025, was $8,961,000, up 68.5% from $5,315,000 in the same period of 2024[4] - Operating income for Q3 2025 was $572,000, compared to an operating loss of $923,000 in Q3 2024[4] - Net loss after income taxes for Q3 2025 was $1,133,000, a significant decrease from a net income of $3,423,000 in Q3 2024[4] - The company reported a total comprehensive loss of $2,953,000 for the nine months ended September 30, 2025[4] - For the three months ended September 30, 2025, the company reported a net loss of $1,133,000 compared to a net income of $3,423,000 for the same period in 2024[6] Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2025, was $5,994,000, compared to $1,281,000 for the same period in 2024[6] - Operating cash flows before movements in working capital increased to $1,922,000 for the three months ended September 30, 2025, from $343,000 in the same period of 2024[6] - The company's working capital as of September 30, 2025, was $5,017,000, compared to $2,012,000 as of December 31, 2024, indicating improved liquidity[61] - Cash and cash equivalents increased to $4,484,000 from $2,267,000 as of December 31, 2024[2] - The company reported a decrease in cash and cash equivalents to $4,484,000 at the end of September 2025, from $2,518,000 at the end of the same month in 2024[6] Assets and Liabilities - Total assets as of September 30, 2025, were $740,525,000, compared to $737,515,000 as of December 31, 2024[2] - Current liabilities rose to $4,896,000 from $3,859,000 as of December 31, 2024[2] - Non-current assets as of September 30, 2025, amounted to $730,612,000, slightly down from $731,644,000 as of December 31, 2024[73] - The total contractual obligations as of September 30, 2025, amounted to $83,456,000, with $6,009,000 due within one year[63] Financing Activities - The Company entered into a gold-linked loan agreement providing $10,000 project financing for the Borborema Project, with interest payable in gold at 110 ounces per quarter[23] - The Company amended its credit facility, increasing the total available capacity to $75,000, with a reduced interest rate reflecting a 100 basis points reduction[28] - The outstanding balance of the bank loan was $24,064 as of September 30, 2025, after a repayment of $2,000[28] - The Company completed a private placement of $40,000 in unsecured convertible debentures, bearing interest at 10% per annum over a 5-year term[29] - The balance of the convertible debentures increased to $26,736 as of September 30, 2025, with finance costs of $4,838 recognized during the period[34] Shareholder Equity and Compensation - Issued capital increased to $598,993,000 as of September 30, 2025, from $595,811,000 as of December 31, 2024[2] - The weighted average number of common shares outstanding for Q3 2025 was 170,913,113, compared to 169,152,636 for Q3 2024[4] - The Company issued 567,125 GRC Shares during the nine months ended September 30, 2025, in satisfaction of RSUs and debenture interest payments[37] - Management salaries for the three months ended September 30, 2025, were $505,000, an increase from $314,000 in 2024, reflecting a 61% rise[70] - Directors' fees for the nine months ended September 30, 2025, totaled $148,000, down from $161,000 in 2024, indicating a decrease of 8.1%[70] Expenses - General and administrative costs for the three months ended September 30, 2025, were $1,726,000, a decrease of 12.3% from $1,968,000 in 2024[48] - Employee costs increased to $1,055,000 for the three months ended September 30, 2025, compared to $700,000 in 2024, reflecting a 50.7% rise[48] - Interest expense on bank loans for the nine months ended September 30, 2025, was $1,883,000, an increase from $1,411,000 in 2024[52] - The Company incurred finance costs of $2,292,000 for the three months ended September 30, 2025, compared to $2,166,000 in the same period of 2024[6] - The Company incurred finance costs of $1,238,000 for the three months ended September 30, 2025, compared to $1,130,000 in 2024, representing a 9.6% increase[68] Other Financial Information - The total balance of royalties, streaming, and other mineral interests as of September 30, 2025, was $718,351,000, an increase from $671,722,000 at the end of 2023[16] - The company holds a 12.5% equity interest in Prospector Royalty Corp., valued at $1,464,000 as of September 30, 2025[22] - The fair value of the gold-linked loan was classified as Level 3, valued at $10,615,000 as of September 30, 2025[54] - A 10% change in the market price of the company's short-term investments would impact net loss by approximately $86,000[65] - The embedded derivative related to the convertible debentures had a fair value of $896 as of September 30, 2025, down from $1,921 at the end of 2023[35]

Core Viewpoint - Gold Royalty Corp. (GROY) is positioned as a significant player in the precious metals sector, focusing on acquiring royalties and streams on gold projects, which allows investors to gain exposure to gold without the risks associated with mining operations [1] Financial Performance Expectations - The upcoming quarterly earnings are scheduled for November 5, 2025, with analysts expecting an earnings per share (EPS) of -$0.006 and projected revenue of $4 million. Some analysts predict a slightly more negative EPS of -$0.01 and revenue of $4.6 million, indicating uncertainty in financial performance [2][6] - GROY's stock has been upgraded to a Zacks Rank 1 (Strong Buy), reflecting positive earnings prospects and an upward trend in earnings estimates, which are crucial for influencing stock prices [3][6] Stock Performance and Metrics - As of the latest data, GROY's stock opened at $3.69, with a 50-day moving average of $3.69 and a 200-day moving average of $2.72. The market capitalization is approximately $629 million, and the stock has shown significant volatility, ranging from a low of $1.16 to a high of $4.15 over the past year [4][6] - The company has a negative price-to-earnings (P/E) ratio of -174.30 but maintains a low debt-to-equity ratio of 0.09, indicating relatively low leverage. The current ratio is approximately 1.41, suggesting adequate liquidity to cover short-term liabilities [5]

Core Viewpoint - Gold Royalty Corp. (GROY) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - Changes in earnings estimates are crucial for near-term stock price movements, making the Zacks rating system beneficial for investors [3][5]. Impact of Institutional Investors - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to significant price movements based on their buying or selling actions [5]. Business Outlook for Gold Royalty - The upgrade in rating for Gold Royalty suggests an improvement in the company's underlying business, which could lead to an increase in stock price as investors respond positively [6]. Importance of Earnings Estimate Revisions - Empirical research shows a strong correlation between earnings estimate revisions and stock movements, highlighting the importance of tracking these revisions for investment decisions [7]. Zacks Rank System Performance - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. Specifics on Gold Royalty's Earnings Estimates - For the fiscal year ending December 2025, Gold Royalty is expected to earn -$0.01 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 20% over the past three months [9]. Overall Market Position - The upgrade to Zacks Rank 1 places Gold Royalty in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11].