Gold Royalty | David Garofalo and Jimmy Connor

This interview was released on Jan 18'25...Gold Royalty Corp is a diversified royalty company focused on precious metals, primarily gold (over 90% exposure).
The company has a portfolio of 240 royalties, with 8 currently cash-flowing and 14 in development stages.
Growth Trajectory:

Gold Royalty has transitioned from a startup (IPO in 2021) to achieving positive operating cash flow in 2024 and expects free cash flow in 2025.
Revenue growth is projected at 60% annually through the decade, driven by royalties from major North American gold mines.
Key Assets:

Canadian Malartic (Quebec): A $1.6 billion expansion is transitioning the operation from open-pit to underground mining by 2028, significantly increasing royalty revenue.
Côté Gold (Ontario): Canada’s second-largest gold mine achieved commercial production in August 2024, with significant growth expected in 2025.
Strategic Portfolio:

The company holds royalties on three of the five largest producing gold mines in North America, including Canadian Malartic, Côté Gold, and the Ren deposit.
The portfolio spans politically stable jurisdictions such as Nevada, Quebec, and Ontario.
Unique Revenue Streams:

Includes pre-production royalties, such as from Borborema (Brazil), where Gold Royalty also receives interest payments in gold ounces.
Over 240 royalties in the portfolio are fully paid for, insulating the company from capital and operational cost risks.
Expansion Opportunities:

Projects like Odyssey Underground (Canadian Malartic), Granite Creek, and County Line will drive medium-term growth.
Additional expansions and explorations at existing assets provide potential for long-term upside.
Operational Efficiency:

Gold Royalty operates with only 8 full-time employees, leveraging a highly scalable model that doesn’t require additional resources to manage new royalties.
Market Position:

Despite robust growth and foundational assets, the company trades at a significant discount compared to peers (below 0.5 times NAV).
The management attributes this to general market sentiment against small-cap growth companies in the gold sector.
Competitive Advantage:

Insulation from cost inflation and direct exposure to gold price increases.
Partnerships with well-capitalized operators ensure ongoing exploration and expansion without financial contributions from Gold Royalty.
Future Outlook:

2025 will see major growth from assets like Borborema, Côté Gold, and Granite Creek achieving full-scale production.
The company expects to generate substantial free cash flow, enabling potential capital returns to shareholders.
The video highlights Gold Royalty’s unique position as a growth-focused royalty company with significant exposure to high-quality, long-life assets in stable jurisdictions.

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