Gold Royalty Corp (GROY) Q1 2025 Earnings Call Highlights: Record Cash Flow and Strategic ...

GuruFocus News

Fri, May 9, 2025, 12:33 AM 3 min read

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Gold Royalty Corp (GROY) achieved grounds operating currency travel this quarter, indicating beardown fiscal performance.

• The institution benefited from a affirmative golden terms environment, with spot golden prices reaching grounds highs, boosting some apical and bottommost lines.

• GROY expects to study affirmative escaped currency flows aboriginal this twelvemonth for the archetypal time, highlighting improved fiscal health.

• The institution maintains a wide absorption connected indebtedness simplification and strategical superior allocation, which could heighten shareholder value.

• GROY forecasts important maturation potential, with a projected summation successful golden equivalent ounces by implicit 360% by 2029.

• Mill output successful Q1 was 38% beneath fund owed to mediocre upwind and operational delays, impacting production.

• Despite a high-quality portfolio, GROY continues to commercialized astatine a discount comparative to peers, indicating marketplace undervaluation.

• The institution faces variability successful accumulation estimates, peculiarly astatine Canadian Malartic and Odyssey, owed to ongoing exploration work.

• There is accrued contention successful acquiring cash-flowing royalties and streams, which whitethorn situation GROY's maturation strategy.

• GROY's Q1 accumulation was the lightest of the year, indicating imaginable challenges successful gathering full-year guidance.

• Warning! GuruFocus has detected 4 Warning Signs with GROY.

Q: From what you're seeing, wherever should we exemplary ounces for the 2nd quarter, and tin you springiness much granularity connected however the 2nd fractional of the twelvemonth stacks up 4th by quarter? A: Jackie Pris Belowski, VP of Capital Markets: Production for Q1 represented astir 20% of the midpoint of our full-year guidance scope of 5,700 to 7,000 GEOs. We expect Q1 to beryllium the lightest quarter, with dependable betterment done the twelvemonth arsenic Veris, Kote, and Boborema ramp up. We expect a important measurement up successful Q2 and much incremental improvements successful the 2nd half.

Q: Where bash you deliberation the astir variability could stem from, and wherever could we spot the astir upside based connected drilling results and relation discussions? A: Jackie Pris Belowski, VP of Capital Markets: We spot variability astatine Canadian Malartic and Odyssey, with Agnico Eagle exploring caller zones. Additionally, Bulbarema's road relocation and mill enlargement are not yet reflected successful expert estimates, presenting imaginable upside.

Q: How has the marketplace for caller transactions changed successful airy of caller precocious golden prices? A: Peter Bankia, Director of Corporate Development: We spot much opportunities for royalties connected earlier-stage assets, arsenic these operators aren't benefiting from existent precocious prices. Our absorption remains connected acquiring cash-flowing oregon near-cash-flowing royalties, maintaining subject successful superior allocation.