Gearing Up for Gold-Stock Profits in 2022-23

Editor’s note: Our own Nick Hodge of Foundational Profits just released his brand-new video premiere on an under-the-radar junior gold firm that’s drilling now and could soon deliver the type of spectacular gains that are only possible in the junior gold space. It’s called, “America’s Next Biggest Gold Mine.” It was filmed on-location at the mine… and you can check it out for yourself right here.


Gold Royalty Corp. (NYSE-American: GROY) — currently trading around US$2.80  per share — has expanded its royalty position in Nevada via an agreement with Nevada Gold Mines to acquire royalties on two gold projects operated by Kinross and one gold project operated by i-80 Gold Corp.

Importantly, Nevada Gold Mines LLC is a joint venture between Barrick and Newmont — the world’s two largest gold producers.

The Nevada-based royalties include:

  • 10% NPI (Net Profits Interest) royalty on i-80’s producing Granite Creek Gold Mine
  • 2% NSR (Net Smelter Return) royalty on Kinross’ Bald Mountain Gold Mine  
  • 1.25% NSR on Kinross’ Bald Mountain Joint Venture Zone 

To complete the transaction, Gold Royalty will be issuing 9,393,681 common shares to Nevada Gold Mines for total share consideration of US$27,500,000 — making Nevada Gold Mines a significant shareholder of the company. 

Gold Royalty CEO David Garofalo commented via press release:

“We are excited to further expand our strong royalty position in Nevada, one of the best mining jurisdictions in the world, by acquiring a portfolio of high-quality royalties from NGM. Granite Creek commenced underground mining earlier this year and we are encouraged by the high-grade potential of the project to deliver significant returns in the future. The Bald Mountain royalties provide Gold Royalty exposure to exploration upside on one of the largest private mining land packages in the U.S. Additionally, this transaction further validates our business model and growth strategy as we welcome NGM as a significant Gold Royalty shareholder.” 

Additionally, GROY is receiving royalty payments on industry-leader Newmont’s Borden Gold Mine located in northern Ontario and will soon begin receiving royalty payments on Monarch’s Beaufor Gold Mine, Quebec, which began pouring its first gold in July, and First Majestic’s producing Jerrit Canyon project, Nevada. 

Well-funded with ~US$17 million in cash and equivalents, GROY’s peer-leading royalty base of long-life mining assets in Tier-1 mining jurisdictions will continue to serve as pillars of growth for the company and its shareholders for years to come. 

The company’s shares are closely tied to the price of gold, which, as predicted, is displaying powerful resilience — currently above US$1,700/oz — in the face of faltering markets, high inflation, and negative growth in GDP. 

Historically, the yellow metal is one of the few commodities that outperforms amid such a macro backdrop — a scenario we only see intensifying in the coming quarters. 

If you haven’t done so already, now’s a great time to commence your own due diligence on Gold Royalty Corporation, which, by the way, also pays a quarterly dividend. 

Yours in profits,

Mike Fagan

Mike Fagan
Editor, Resource Stock Digest