Making Gains on Gold

Gold Royalty Corp. (NYSE-American: GROY) — currently trading around US$2.15 per share — has begun to receive royalty payments on industry leader Newmont’s producing Borden Gold Mine located in mining-friendly Ontario, Canada. 

Gold Royalty has received royalty back payments of around $1.4 million to-date from Newmont. Importantly, the mine boasts exceptionally high gold grades with a mine life extending out to 2027. 

Gold Royalty is making gold gains with exceptionally high gold grades.

Gold Royalty CEO David Garofalo commented via press release:

“Borden brings another high-quality cash flowing asset into our portfolio. Along with the expected start of production at Beaufor this month, we will have eight royalties on producing assets and twenty assets in development supporting our industry leading revenue growth profile. As the former CEO of Goldcorp, I recall our team developing Borden as a next generation, environmentally friendly mine, and I am excited for Gold Royalty to now be a part of this asset as a royalty holder.” 

As noted, GROY’s impressive portfolio includes eight royalties on producing assets, including the Beaufor Gold Mine located in Quebec, Canada, and operated by Monarch Mining Corp. 

Earlier this year, GROY also acquired a royalty on a portion of IAMGOLD’s Côté gold project located in Ontario, Canada. The Côté royalty represents both a near-term and long-life royalty on a large open-pit operation with initial commercial production slated for the second half of 2023. A recently completed feasibility study on the project envisions average annual production of 367,000 oz Au over a projected 18-year mine life. 
GROY’s intelligent growth model continues to pay dividends with the acquisitions of Abitibi Royalties and Golden Valley Mines earlier this year. 

And speaking of paying dividends, Gold Royalty commenced an inaugural quarterly dividend program in Q1 starting with a quarterly cash dividend of US$0.01 per common share — a major milestone for the firm and an achievement few juniors can match. 

GROY’s royalty portfolio is heavily weighted in the Tier-1 mining jurisdictions of Quebec, Canada, and Nevada, USA, and is anchored by a 3% net smelter return (NSR) royalty on a significant portion of the Canadian Malartic Odyssey underground gold project located in northwestern Quebec. 

The Odyssey royalty represents a generational long-life royalty asset for GROY. Major operators Agnico Eagle and Yamana approved construction of the Odyssey project last year; estimated annual production of 500,000 to 600,000 gold ounces is slated to commence next year running through 2039.

With the price of gold pulling back from $1,970 per ounce in early-April to currently around $1,765 an ounce, GROY has also retreated from the mid-$4 per-share level to currently right around $2.25 per share, which may prove an optimum near-term entry point as gold establishes a bottom. 

Despite the backdrop of weaker gold prices, GROY continues to deliver on its aggressive growth model that’ll soon eclipse 200 royalties spread across the Americas. And while the company cannot control the price of gold, it is setting up nicely for long-term success once the yellow metal resumes its upward trajectory. 

You can learn more about Gold Royalty Corp. and sign-up to receive updates directly from the company here and access our exclusive interviews with upper management here

Yours in profits,

Mike Fagan

Mike Fagan
Editor, Resource Stock Digest