Core Viewpoint - Gold Royalty Corp. has announced an agreement to acquire a royalty on the Pedra Branca mine for $70 million in cash, which is expected to enhance the company's cash flows and asset portfolio significantly [1][5][6]. Transaction Details - The acquisition involves a payment of $70 million to BlackRock World Mining Trust plc for the royalty on the Pedra Branca mine, which is currently operated by BHP Group Limited [1][5]. - The completion of the acquisition is subject to customary closing conditions, and Gold Royalty has the necessary resources to fund the purchase [5] - After the closing, Gold Royalty will receive all payments related to production from the royalty for periods ending after December 31, 2025 [5]. Financial Impact - For the 12 months ending June 30, 2025, the royalty expense recorded by the previous holder was approximately $7.9 million, equivalent to about 2,800 gold equivalent ounces (GEOs) at an average gold price of $2,811 per ounce [6]. - The acquisition is expected to add significant cash flow to Gold Royalty, particularly due to the current favorable gold pricing environment [6]. Royalty Structure - The royalty includes a 25% net smelter return (NSR) on gold and a 2% NSR on copper produced from the Pedra Branca mine, enhancing Gold Royalty's exposure to both gold and copper [6][7]. - The royalty covers the Pedra Branca East and West deposits and does not include any step-down options, providing full exposure to the asset's long-term potential [6]. Asset Quality - The Pedra Branca mine is a high-quality asset located in Brazil's Carajás region, known for its rich mineral deposits [6][8]. - The mine achieved first production in 2020 and has a mining rate of approximately 800 ktpa, with BHP continuing to extend its mine life and report increases in mineral resources and reserves [6][9][10]. Operator Background - The mine was constructed by OZ Minerals and is currently operated by BHP, which has a strong operational track record [6][9]. - BHP announced the sale of Pedra Branca to CoreX Holding BV, a diversified industrial conglomerate, which is expected to complete the transaction upon satisfying customary conditions [11]. Geographic Context - Pedra Branca is situated in a prolific mining region in Brazil's Pará state, which is home to world-class deposits of various minerals, including iron ore, copper, and gold [6][8].

Core Viewpoint - Gold Royalty Corp. (NYSEAMERICAN:GROY) is recognized as a promising Canadian stock, having announced an enhanced revolving credit facility and the elimination of debt, which positions the company favorably for future growth [1][2]. Financial Developments - The company has secured a revolving credit facility increased to $75 million, with the potential to expand by an additional $25 million under certain conditions, and the facility's duration has been extended until November 2028 [2]. - To access the new credit facility, Gold Royalty Corp. had to pay off at least 75% of its existing debentures, indicating a significant reduction in its debt obligations due in 2028 [2]. Stock Performance - Since the fiscal Q3 2025 results were announced on November 5, the share price of Gold Royalty Corp. has increased by over 25.5%, reflecting a positive market sentiment [3]. - Analysts have maintained a positive outlook on the stock, with Tate Sullivan from Maxim Group reiterating a Buy rating but lowering the price target from $6 to $5, while Heiko Ihle from H.C. Wainwright also reiterated a Buy rating with a price target of $6.25 [3]. Company Overview - Gold Royalty Corp. is a Canadian firm that provides financing solutions to the metals and mining industry by acquiring royalties and streaming interests in gold and other precious metals properties [4].

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]