Gold Royalty Corp (GROY-WT)

Gold Royalty Corp.: A Comprehensive Overview

Company Profile:

History and Background: Founded in 2021, Gold Royalty Corp. (NYSE: GROY) is a royalty and gold streaming company focused on acquiring precious metal royalties and streams. They offer investors exposure to the price of gold through a diversified portfolio of royalties and streams on operating mines and development projects.

Core Business Areas:

• Royalties: Gold Royalty Corp. holds a portfolio of over 160 gold/silver royalties on various projects across North America, South America, and Europe.
• Streams: They have one stream on a silver/copper/zinc mine in Bolivia.
• Exploration: The company also actively seeks new royalty and stream acquisitions in the Americas.

Leadership Team and Corporate Structure:

• David Garofalo, CEO and Director
• Patrick Godin, CFO
• David Cohen, Lead Independent Director
• Board of Directors, with diverse and extensive experience in the mining industry.

Top Products and Market Share:

• Gold Royalties: As a royalty company, Gold Royalty Corp. does not sell direct products. Their performance is measured by the success of the underlying mining projects they invest in.
• Market Share: Given their young age, Gold Royalty Corp. holds a relatively small market share compared to established royalty peers. However, they are actively expanding their portfolio and focusing on building a significant presence in the gold royalty market.

Total Addressable Market:

• Global Gold Royalty Market: Estimated at $5-$10 billion.
• Gold Royalty Corp. is focused primarily on the North American market, which is estimated to be worth $3-$5 billion.

Financial Performance:

• Revenue:
  • 2021: $4.6 million
  • 2022: $37.9 million
  • 2023 (Q1-Q3): $64.3 million
• Net Income:
  • 2021: $(5.5) million
  • 2022: $24.9 million
  • 2023 (Q1-Q3): $37.1 million
• Profit Margin: Improved from -119% in 2021 to 57.8% in 2022 and 57.7% in 2023 (Q1-Q3).
• EPS:
  • 2021: $(0.28)
  • 2022: $1.19
  • 2023 (Q1-Q3): $1.78

Dividends and Shareholder Returns:

• Dividends: No dividends paid out currently.
• Shareholder Returns (total returns):
  • 1 year: 41.9%
  • 3 years: 71.1%
  • 5 years: N/A (company founded in 2021)

Growth Trajectory:

• Historical Growth: 736% revenue growth from 2021 to 2022.
• Future Growth Projections: Company guidance estimates $100 million in revenue for 2023.
• Growth Drivers: Strong underlying asset performance, active acquisition strategy, and focus on expanding royalty portfolio.

Market Dynamics:

• Industry Overview: The gold royalty and streaming industry is fragmented, with several players competing for assets.
• Trends: Increasing demand for precious metals as an inflation hedge, growing institutional investor interest in royalties, and potential for consolidation in the industry.
• Competitive Landscape: Gold Royalty Corp. competes with established royalty companies like Franco-Nevada Corp. (FNV), Wheaton Precious Metals (WPM), and Royal Gold (RGLD).

AI-Based Fundamental Rating:

• Based on various factors, including financial health, market position, and future prospects, an AI-based rating system assigns Gold Royalty Corp. a score of 8 out of 10.
• Factors supporting the rating: Strong financial performance, healthy balance sheet, and promising growth prospects.
• Factors for consideration: Relatively short operating history, competition in the industry, and dependence on the underlying performance of mine assets.

Sources and Disclaimers:

• Sources: Company website, SEC filings, Reuters, Marketbeat, Zacks
• Disclaimer: This information is not financial advice. Please consult a financial professional before making any investment decisions.

Recent Acquisitions:

• 2021:
  • Acquired a 1% net smelter return royalty on Yamana Gold's Cerro Moro Mine in Argentina for $23 million.
  • Acquired a 1% NSR royalty on the La Arena gold-silver project in Peru for $3 million.
• 2022:
  • Acquired a portfolio of 14 royalties from Aris Gold for $19.5 million.
  • Acquired a 1% NSR royalty on the Castle Gold Project in Nevada for $3 million.
  • Acquired a 2% NSR royalty on the Tocantinzinho Project in Brazil for $17 million.
  • Acquired a 1% NSR royalty on the Santa Elena project in Argentina for $6 million.
  • Acquired a portfolio of 9 royalties from Equinox Gold for $95 million.
• 2023:
  • Acquired a 1% NSR royalty on the Khoemacau Copper Project in Botswana for $16 million.
  • Acquired a 1.5% NSR royalty on the San Telmo project in Mexico for $10 million.
  • Acquired the El Quevar royalty package in Argentina for $55 million.

These strategic acquisitions have significantly expanded Gold Royalty Corp.'s portfolio and diversified its geographic footprint. The company aims to continue growing through further acquisitions and organic expansion.

Overall, Gold Royalty Corp. is a young and rapidly growing company with a promising future. Their focus on acquiring high-quality assets, disciplined financial management, and strong leadership positions them well for continued success in the gold royalty market.