Summary of Gold Royalty Conference Call on Pedra Branca Acquisition Company and Industry - **Company**: Gold Royalty (NYSEAM:GROY) - **Industry**: Mining and Royalty Companies, specifically focused on gold and copper Key Points and Arguments 1. **Acquisition Announcement**: Gold Royalty announced the acquisition of the Pedra Branca Copper and Gold Royalty for $70 million in cash from BlackRock World Mining Trust PLC, which is expected to significantly enhance revenues immediately [2][3] 2. **Royalty Details**: The acquisition includes a 25% gold Net Smelter Return (NSR) and a 2% copper NSR on BHP's Pedra Branca mine, which has been operational since 2020 [3][6] 3. **Financial Impact**: The acquisition is estimated to be approximately 10% accretive to net asset value per share and 45% accretive to cash flow per share in 2026, with a 15% increase expected in 2029 [3][4] 4. **Equity Financing Success**: The equity issuance was nearly two times oversubscribed, increasing from an initial $70 million to $90 million, resulting in gross proceeds of $103.5 million [4][12] 5. **Debt-Free Status**: Following the acquisition and equity financing, Gold Royalty is now completely debt-free and has nearly $100 million in cash and unutilized credit lines for future growth [4][14] 6. **Production Estimates**: For the 12 months ending June 30, attributable production is expected to exceed 2,800 gold-equivalent ounces, translating to over $12 million in royalty revenue at current prices [5][9] 7. **Mine Life and Resource Potential**: The Pedra Branca mine is expected to support a mine life of over 15 years, with significant exploration upside potential [8][10] 8. **Future Ownership**: The mine is currently operated by BHP, which acquired it from Oz Minerals in 2023, and is expected to be sold to Corex Holding in early 2026 [6][10] 9. **No Right of First Refusal**: Gold Royalty does not have a right of first refusal on other deposits associated with Pedra Branca, but plans to develop a strong relationship with Corex for potential future opportunities [24] Other Important Information 1. **Market Confidence**: The participation of BlackRock in both the acquisition and the equity raise indicates strong confidence in Gold Royalty's portfolio and growth potential [4][21] 2. **Strategic Growth Approach**: Gold Royalty emphasizes a disciplined approach to growth, focusing on accretive opportunities and maintaining attractive double-digit rates of return [22][14] 3. **Share Price Performance**: The company's share price has increased more than threefold over the year, reflecting strong market performance and investor confidence [27]