Gold Royalty (GROY) Q3 2024 earnings summary

Executive summary

• Achieved record year-to-date revenue of $9.0 million (4,017 GEOs), up 90% from the same period in 2023, with Q3 revenue of $2.6 million (1,051 GEOs), and a positive net income in Q3 2024, reversing a net loss in Q3 2023.

• On track for the first full year of positive operating cash flow, with $1.3 million provided by operating activities year-to-date.

• Key assets, including Côté Gold and Vareš, are ramping up to targeted capacity, expected to drive further growth in Q4 and 2025.

• Continued cash flow from Borborema, Canadian Malartic, Cozamin, and Borden Mines, with new royalties generated in 2024.

Financial highlights

• Q3 2024 total revenue, land agreement proceeds, and interest reached $2.6 million, up 90% year-over-year; year-to-date total revenue at $9.0 million, a 130% increase over the same period in 2023.

• Positive net income reported in Q3, aided by a $5.9 million non-cash deferred tax asset from internal reorganization; adjusted net income for Q3 2024 was $4.24 million.

• Cash-operating expenses remained below $2 million for the quarter and $5.9 million year-to-date; LTM cash operating expenses were $7.9 million.

• Year-to-date cash provided by operating activities was $1.3 million, excluding $1.5 million of land agreement proceeds.

Outlook and guidance

• Full-year 2024 guidance for total revenue, land agreement proceeds, and interest reiterated at $13 million–$14 million and 6,500–7,000 GEOs.

• Q4 2024 revenue expected at $4 million–$5 million, driven by ramp-up at Côté and initial revenue from Vareš.

• Anticipates further revenue and cash flow growth in 2025 as new assets reach full production and commodity prices remain strong.