Gold Royalty Corp. · AMEX:GROY
Gold Royalty — Investor Day (June 2024)
75 slides from Gold Royalty's investor day presentation, Jun 12, 2024
Slide 1: Analyst & Investor Day
Analyst & Investor Day June 12, 2024 goldroyalty.com / NYSE: GROY
Slide 2: Presenting Team
Gold Royalty Investor Day Presenting Team David Garofalo Andrew Gubbels John Griffith Chairman & CEO Chief Financial Officer Chief Development Officer Peter Behncke Alastair Still Katherine Arblaster Director, Corporate Director of Technical Vice President, Sustainability & ESG Development & Investo
Slide 3: Agenda
Agenda 1. Introduction & Strategic Overview David Garofalo, Chairman & CEO 2. Finance Update Andrew Gubbels, CFO 3. ESG Update Katherine Arblaster, Vice President, Sustainability & ESG 4. Corporate Development John Griffith, Chief Development Officer Peter Behncke, Director, Corporate Development an
Slide 4: Disclaimer
Disclaimer Forward-Looking Information The information contained herein includes “forward-looking information” and “forward-looking statements” within the Unless otherwise indicated, the scientific and technical disclosures contained or referenced in this presentation, including meaning of applicabl
Slide 5: Introduction & Strategic Overview
Introduction & Strategic Overview Investor & Analyst Day 2024
Slide 6: Commodity Exposure: Strong Fundamentals for Gold
Commodity Exposure Strong Fundamentals for Gold Gold Price – Nominal and Inflation Adjusted 3,000 180 Gold (Inflation Adjusted) Gold (Nominal) GDXJ 160 2,500 140 2,000 120 VanEck GDXJ Index (US$) Gold Price (US$/oz) 100 1,500 80 1,000 60 40 500 20 0 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 201
Slide 7: Commodity Exposure: Copper Supply Deficit
Commodity Exposure Copper Supply Deficit Expected to Drive Prices Higher Global Copper Supply and Demand1 Refined Copper Production Consumption 31 30 29 2030 copper supply deficit of 28 >6 billion pounds Copper (Kt) 27 26 25 As the world pivots to clean energy and mass electrification, 24 demand for
Slide 8: The Royalty Business Model
The Royalty Business Model Commodity Exposure with Exploration Upside and Reduced Risk Royalty Company Revenue vs Mining Company Profit Benefits of the Royalty Model • Top line revenue exposure • Free exposure to exploration upside • Focus and scalability • Reduced single asset risk through diversif
Slide 9: Gold Royalty’s Track Record
Gold Royalty’s Track Record Focused on Growing NAV and Cash Flow on a Per Share Basis1 June 3, 2024: Consensus Vares Stream Estimates Dec 21, 2023: • ~$534M NAV1 SOQUEM Portfolio •>55% Revenue Dec 19, 2023: CAGR2 Borborema Royalty & Loan • 242 Assets Aug 30, 2023: Flagship Cozamin Royalty Assets: -
Slide 10: Board and Advisors
Board and Advisors Balance of Technical and Capital Markets Experience David Garofalo Warren Gilman Alan Hair Chairman & CEO Director Director Karri Howlett Ken Robertson Angela Johnson Director Director Director Amir Adnani Trey Wasser Tim Young Chair of the Advisory Board Advisor Advisor goldroyal
Slide 11: Leadership Team
Leadership Team Balance of Technical and Capital Markets Experience David Garofalo Andrew Gubbels John Griffith Chairman & CEO Chief Financial Officer Chief Development Officer Samuel Mah Jerry Baughman Alastair Still Vice President, Evaluations Vice President, Nevada Select Director of Technical Se
Slide 12: Strong Institutional and Strategic Backing
Strong Institutional and Strategic Backing Driving Forward a Business Focused on Long-Term Fundamental Value Gold Royalty has attracted leading financiers in the resource sector through its high-quality portfolio, experienced management team, and robust growth trajectory. goldroyalty.com / NYSE: GRO
Slide 13: Finance Update
Finance Update Investor & Analyst Day 2024 goldroyalty.com / NYSE: GROY
Slide 14: Financial and Operating Performance
Financial and Operating Performance Highlights Increasing • Total Revenue, Land Agreement Proceeds and Interest1 increased by approximately 23% to $7.4 million for the Revenue 12-month period ended March 31, 2024 relative to the comparative period. Decreasing • Cash Operating Expenses1 reduced by ap
Slide 15: 2024 Updated Guidance
2024 Updated Guidance Immediate and Significant Contribution from New Assets Updated Guidance Total Revenue, Land Agreement Proceeds and Interest1,2 (US$M) GEOs1,2 $13.0M - $14.0M 6,500-7,000 ~160% ~27% $10.0M - $11.2M 5,000-5,600 $5.2M 2,703 2023A 2024 Previous Guidance 2024 Updated Guidance 1) Tot
Slide 16: Robust Revenue & Growing Operating Cashflow
Financial and Operating Performance Robust Revenue & Growing Operating Cashflow Total Revenue, Land Agreement Proceeds and Interest and Cash Operating Expenses (US$M)1 $14.0 Total Revenue, Land Agreement Proceeds and Interest1 $13.0 - 14.0M Cash Operating Expenses1 $10.0 Robust revenue profile and $
Slide 17: Access to Capital to Fund Future Growth
Financial and Operating Performance Access to Capital to Fund Future Growth Sources of Capital (USD) Facility Particulars Partner(s) Amount $35M will Operating cash flow generated Free Cashflow Accumulating source future growth Credit facility1 Senior, secured revolving Credit Facility1 $35M credit
Slide 18: Strong After-Market Trading Liquidity
Financial and Operating Performance Strong After-Market Trading Liquidity Share Structure Days to turn Float2 Ticker NYSE:GROY 1,400 1,330 Issued & Outstanding 169.0 M Warrants 20.7 M 1,200 Options & RSUs 9.6 M Fully Diluted 199.3 M 1,000 Float1 76% 800 3M average value traded $1.7 M 3M average volu
Slide 19: ESG Update
ESG Update Investor & Analyst Day 2024 goldroyalty.com / NYSE: GROY 19
Slide 20: Material Sustainability Topics
Material Sustainability Topics Materiality Assessment Results ENVIRONMENT SOCIAL GOVERNANCE Our Corporate ESG Topics • GHG emissions and • Our people’s health, • ESG due diligence energy use safety and well-being and investment IMPORTANCE TO STAKEHOLDERS • The role of gold and • Talent retention and
Slide 21: Our Sustainability Progress
Our Sustainability Progress GOVERNANCE OUR PEOPLE AND ENVIRONMENT COMMUNITIES Conduct business with transparency, accountability and integrity, and Decarbonize our operations and our Make a positive contribution to our ensure the effective oversight of ESG- portfolio, working in partnership with peo
Slide 22: Oversight of Sustainability Risks
Oversight of Sustainability Risks ENVIRONMENT Board of Directors Provides guidance and strategic oversight to management | Provides oversight of corporate risk Reviews ESG-related risks | Reviews sustainability goals, strategies, and disclosures Corporate Corporate Risk Strategic Planning Developmen
Slide 23: ESG Due Diligence
ESG Due Diligence ENVIRONMENT BIODIVERSITY ANDLAND USE CLIMATE CHANGE AND WATER MANAGEMENT TAILINGS AND WASTE MANAGEMENT • What biodiversity risks exist and EMISSIONS MANAGEMENT • Has the operator assessed, and are they appropriately managing, • Does the operator have an how is the operator managing
Slide 24: Responsible Mining Practices in our Portfolio
Responsible Mining Practices in our Portfolio ENVIRONMENT Snapshot of Gold Royalty Operating Partner ESG Commitments 10 COMMITMENTS Mine Site Operator United Nations Global Industry Towards Net-Positive Net-zero or Guiding Standard on Sustainable Biodiversity or Equivalent Principles on Tailings Min
Slide 25: ESG-Linked Financing & Sustainable Financing
ESG-Linked Financing & Sustainable Financing ENVIRONMENT Gold Royalty agreed to make ongoing payments to Aura of up to $30/GEO delivered or paid to Gold Royalty. These payments are to be earmarked for ESG-related investments by Aura, up to a maximum of $300,000. The intent of the payments are to adv
Slide 26: Task Force on Climate-Related Financial Disclosures
Task Force on Climate-Related Financial Disclosures (“TCFD”) goldroyalty.com / NYSE: GROY 26
Slide 27: Physical and Transition Climate-Related Risks
Physical and Transition Climate-Related Risks Physical Risks Transition Risks Policy & Legal Acute • Stricter emissions and environmental regulations impacting an operator's Material sites could be impacted by an increase in the severity or frequency ability to mine* of acute weather events, leading
Slide 28: Transition Opportunities
Transition Opportunities Gold’s continued resiliency as a valued portfolio asset. Gold Royalty’s portfolio diversity reduces exposure to physical and transition climate-related risks. Gold Royalty’s focus on partnering with high quality, well-capitalized operating partners allows the Company to see
Slide 29: Financed Emissions
Financed Emissions Key highlights: ✓ 100% of operators considered in Gold Royalty’s 0.25 Gold Royalty’s portfolio carbon intensity represents one of the lowest carbon scope 3 financed emissions calculation has a net- zero goal. TCO2e/ GEO intensities in the royalty and streaming sector ✓ Two of thre
Slide 30: Gold Royalty’s Sustainability Report
Gold Royalty’s Sustainability Report Building a Sustainable Business goldroyalty.com / NYSE: GROY 30
Slide 31: Corporate Development and Portfolio Update
Corporate Development and Portfolio Update Investor & Analyst Day 2024 goldroyalty.com / NYSE: GROY
Slide 32: Gold Royalty has Significant Potential Growth
Gold Royalty has Significant Potential Growth 2.5x Key Takeaways Recent acquisitions add scale and Wheaton Precious Metals 2.0x cash flow, which correlates to higher 1. Scale matters valuation multiples Franco-Nevada Large market cap. royalty & streaming Royal Gold companies trade at premium P/NAV m
Slide 33: Four Pillars of Growth
Four Pillars of Growth Continuing to Build the Portfolio Through Multiple Ways • Providing • Acquiring • Corporate • Gold Royalty Royalty Generation Royalty Financing 3rd Party Acquisitions Corporate M&A royalty or royalties from mergers and prospecting stream financing 3rd parties such acquisitions
Slide 34: Strategic Cooperation Agreement
Strategic Cooperation Agreement Leading Resource Financier Partnering with Gold Royalty Taurus Mining Royalty Fund LP • Global resource sector financier recently expanding into royalty investments through the Taurus Mining Royalty Fund • The fund is focused on acquiring high quality and sustainable
Slide 35: Strategic Focus 2023-2024
Strategic Focus 2023-2024 Supplementing Robust Organic Growth with Near Term Cash Flow Recent Acquisitions Analyst Consensus Revenue (US$M)1 $35.0 28% Vares Copper Stream Recent Acquisitions represent ~30%-70% of $30.0 2025-2028 expected GEOs1 • $50M acquisition of a copper stream over Adriatic’s Va
Slide 36: Gold Royalty Moving Forward
Gold Royalty Moving Forward Vares Supplements Growth Pipeline Exploration Advanced Exploration Development Cash Flowing Trenton Canyon Whistler Tuscarora Nutmeg Mountain Odyssey Vares White Rock War Eagle Cheechoo REN NPI REN NSR Côté Gold Ducros Sill Red Lake Project Gold Rock Midway Borborema Fene
Slide 37: Exploration Upside
Exploration Upside Significant Investments by Gold Royalty’s Operating Partners 2021 2022 2023 2024 0m Average expected meters drilled 100,000 m >550,000m 200,000 m Shareholders Benefit 300,000 m Shareholders receive exposure to exploration 400,000 m upside at no cost 500,000 m Further Benefit • Lim
Slide 38: Catalyst Rich Portfolio Anchored by Tier 1 Assets
Gold Royalty Moving Forward Catalyst Rich Portfolio Anchored by Tier 1 Assets Multiple Key Assets Fueling Growth GRC Portfolio Composition7 Odyssey Mine1 – ramping up production Jurisdiction (% BV) Côté Gold2 – initial production March 2024 ; commercial production expected in Q3 2024 7% 5% Borden Mi
Slide 39: Vares Project
Vares Project High Quality Project with Exploration and Expansion Upside Vares Project Overview Asset Overview1 Operator and 100% Owned Adriatic Metals Location Bosnia & Herzegovina Production Start Ramping up - commercial production expected in Q4 2024 Life of Mine 18 Years based on most recent gui
Slide 40: Adriatic Metals Overview
Adriatic Metals Overview Developing Europe’s next Silver Mine Adriatic Vares Development 2017 Acquired project and initial exploration commenced 2019 JORC Maiden mineral resource estimate for the Vares project 2021 JORC Definitive Feasibility Study published 2022 Permits received and construction co
Slide 41: Borborema Gold Project
Borborema Gold Project Near Term Production with a Proven Operator in Brazil Borborema Overview and Key Metrics – per 43-101 Technical Report(1) Operator and 100% Owned Aura Minerals Indicated: 2,077 koz (63.7 Mt @ 1.01 g/t) Mineral Resources Inferred: 393 koz (10.9 Mt @ 1.13 g/t) Potential to conve
Slide 42: Investment in Aura Minerals’ Borborema Gold Project
Investment in Aura Minerals’ Borborema Gold Project Transaction Structure Overview(1) To Aura Minerals Illustrative Investment GEO Profile based on Borborema Feasibility Study(2) 3,000 Potential 2% NSR Royalty Payments 2,500 $21 million for Royalty Financing 2,000 Potential Convertible 0.5% NSR Roya
Slide 43: Cozamin Copper-Silver Mine
Cozamin Copper-Silver Mine Immediate Cashflow from a High-Quality Operation Cozamin Overview Operator Location Zacatecas, Mexico 1% NSR over the Calicanto and Vicochea Gold Royalty Interest claims Commodities Cu, Ag Asset Stage | Start Date Operating Avg. Expected Production 20kt Cu,1.3 Moz Ag per y
Slide 44: Cozamin Copper-Silver Mine
Cozamin Copper-Silver Mine 1st Quartile Cash Cost Mine with a Track Record of Exploration Success Cozamin Overview1 Endeavour Silver Concessions – Royalty Area Vicochea & Calicanto Combination of longhole stoping & cut- Mining Method and-fill 2023-2030: 20kt Cu ; 1.3Moz Ag Expected Avg. Production 2
Slide 45: Key Asset Updates
Key Asset Updates Investor & Analyst Day 2024 goldroyalty.com / NYSE: GROY 45
Slide 46: Canadian Malartic
Canadian Malartic Asset and Royalty Overview Coverage Summary 3% NSR over the Odyssey North deposit, the majority of the East Malartic deposit, and a portion of the Odyssey South deposit and the Norrie Zone 1.5% NSR over the Midway project which lies to the east of Odyssey and south of the Camflo Mi
Slide 47: Odyssey (Canadian Malartic Underground)
Odyssey (Canadian Malartic Underground) Canadian Malartic Complex 2023 Internal-Study Update Internal-Study Update Odyssey and Internal Zones (3.0% NSR): • Odyssey South production commenced in March 2023 • Increased Mineral Reserves of 150,000 gold ounces attributed to Odyssey South • Infill drilli
Slide 48: Odyssey: Development on Schedule and Continuing to Grow
Odyssey (Canadian Malartic Underground) Development on Schedule and Continuing to Grow Recent Updates Development: • Ramp development continued to exceed target in Q1 2024, reaching the first production level of East Gouldie in February 2024 and a depth of 765 meters. • Shaft sinking improved during
Slide 49: Odyssey: Development on Schedule and Continuing to Grow
Odyssey (Canadian Malartic Underground) Development on Schedule and Continuing to Grow Jun-2024 Update Construction • Ramp development ahead of schedule, top of East Gouldie deposit reached in 2024Q1 • Potential to accelerate initial production from East Gouldie • Shaft sinking underway, expected co
Slide 50: Odyssey South Expected to Enter Production
Odyssey (Canadian Malartic Underground) Odyssey South Expected to Enter Production in 2023 Upcoming Developments(1,2) 2024 • Odyssey South ramp-up to 3,500 tpd (Achieved) 2024-2028 • Potential for Internal Zones to supplement production profile 2027H1 • Initial Production from the Shaft • Initial Pr
Slide 51: Côté Gold Project
Côté Gold Project Tier 1 Generational Asset with Ongoing Development & Exploration Success Royalty Overview Operator(1) Location Ontario, Canada Gold Royalty Interest 0.75% NSR over southern portion of the Mine Commodities Au Asset Stage | Est. Start Date Development | 2024 Q1 First 6-year Average:
Slide 52: Côté Gold: Fully Funded Advanced Construction Project
Côté Gold Project Fully Funded Advanced Construction Project Recent Updates(1) Advancing towards commercial production: • First gold pour achieved in March 2024. • Commissioning activities at Côté have been progressing well, with performance achieved in the crushing, HPGR and processing circuits wit
Slide 53: Côté Gold: Royalty Coverage
Côté Gold Project Royalty Coverage Coverage Summary (Zones 5 & 7)1,2 Final Pit Plan View N 1) Source: IAMGOLD Technical Report on the Côté Gold Project, effective date June 30, 2022 goldroyalty.com / NYSE: GROY 2) Source: VRIFY - Côté Gold 360 Site Tour Deck – September 2023 53
Slide 54: Côté Gold: Significant Near-Term Cashflow
Côté Gold Project Significant Near-Term Cashflow Pit Phases1 Pit Phase 1 Pit Phase 2 1) Source: VRIFY - Côté Gold 360 Site Tour Deck – September 2023 goldroyalty.com / NYSE: GROY 54
Slide 55: Côté Gold: Open Pit 3D Cross Section
Côté Gold Project Open Pit 3D Cross Section – Looking East 1) Source: IAMGOLD Technical Report on the Côté Gold Project, effective date June 30, 2022 goldroyalty.com / NYSE: GROY 2) Source: VRIFY - Côté Gold 360 Site Tour Deck – September 2023 55
Slide 56: REN Project
REN Project Northern Underground Extension of the Goldstrike Mine Royalty Overview Operator(1) Location Nevada, USA Gold Royalty Interest 1.5% NSR and 3.5% NPI Commodities Au Asset Stage Development Expected Production / Life of Mine Barrick aiming to incorporate into the mine plan in the “short ter
Slide 57: REN Project: Full Coverage Over Key Areas
REN Project Full Coverage Over Key Areas of Mineralization Royalty Coverage Summary Goldstrike Mine Infrastructure(1) goldroyalty.com / NYSE: GROY 1) Source: Mining.com Nevada Gold Mines. Image from Barrick. 57
Slide 58: REN Project: Resource Growth Expected in 2024
REN Project Resource Growth Expected in 2024 Recent Updates Exploration: • Drilling continues to grow inferred resources in significantly sheared JB Zone. • Growing confidence in the continuity of mineralization in the Corona Corridor. • Results are expected to further expand the resource footprint.
Slide 59: Granite Creek
Granite Creek High-Grade Mine Ramping up Production Royalty Overview Operator Location Nevada, USA Gold Royalty Interest 10.0% NPI(1) Commodities Au Underground Producing, Open Pit in Asset Stage | Start Date Development Life of Mine(2) ~10+ Years Underground Mineral Resources M&I: 337 koz (1,008 kt
Slide 60: Granite Creek: Significant Exploration Success
Granite Creek Significant Exploration Success Recent Updates • i-80 Gold completed a C$115M bought deal equity raise to allow for accelerated advancement of projects Exploration: • Focused on extending the South Pacific Zone (“SPZ”) Production: • In the process of ramping up to 1,000 tpd Upcoming De
Slide 61: Fenelon Gold Project
Fenelon Gold Project Continued Exploration Success, Published PEA Royalty Overview Operator Location Québec, Canada Gold Royalty Interest 2.0% NSR over the Fenelon Gold Project Commodities Au Asset Stage Advanced Exploration | PEA published in 2023 Q2 Annual average production: 212,000 ounces Au Exp
Slide 62: Fenelon Gold Project: Published PEA
Fenelon Gold Project Granite Creek Surface Plan View Continued Exploration Success, Published PEA Recent Updates Preliminary Economic Assessment (PEA): • Average annual gold production of 212,000 oz over 12.3 years. • Average annual free cash flow of $157 million over life of mine (“LOM”). • After-t
Slide 63: São Jorge Project
São Jorge Project Emerging Gold District with Exploration Upside Royalty Overview Operator Location Pará State, Brazil Gold Royalty Interest 1.0% NSR Commodities Au Asset Stage Developing Indicated: 0.71 Moz (14.3 Mt @ 1.55 g/t) Mineral Reserves & Resources(1) Inferred: 0.72 Moz (17.6 Mt @ 1.27 g/t)
Slide 64: São Jorge Project
São Jorge Project Attractive Project Primed for Advancement Tonnage Au Grade Ounces Mineral Resources1 Significant Exploration Potential (kt) (g/t) (koz) • Updated pit-constrained Mineral Resource in Measured and 14,275 1.55 711.8 Indicated June 2021 Inferred 17,582 1.27 716.8 • 37,145 m. of drillin
Slide 65: São Jorge: Expanding Potential for Discovery
São Jorge Project Expanding Potential for Discovery Large Gold-in-Soil Footprint • Expanded 12km x 7 km geochemical footprint • Copper + gold + molybdenum anomalies with geophysical features suggestive of potential copper-porphyry style mineralization • Regional stream sediment sampling has identifi
Slide 66: Whistler Gold-Copper Project
Whistler Gold-Copper Project Emerging Gold & Copper District with Exploration Upside Royalty Overview Operator Location Alaska, USA Gold Royalty Interest 1% NSR + Option(1) to acquire an additional 0.75% NSR Commodities Au, Ag, Cu Asset Stage Advanced Exploration | PEA expected in late 2024 Indicate
Slide 67: Whistler: Fully Permitted for Exploration
Whistler Gold-Copper Project Granite Creek Surface Plan View Fully Permitted for Exploration Recent Updates Financing: • Successfully closed IPO for total proceeds of $20 million (2023 Q2). • Use of funds to fund exploration and development activities at Whistler. Exploration: • Focus to upgrade MRE
Slide 68: Whistler: Sparsely Drilled, Robust High-Grade Core
Whistler Gold-Copper Project Sparsely Drilled, Robust High-Grade Core Whistler Deposit Cross Section goldroyalty.com / NYSE: GROY 68
Slide 69: Whistler: Wingspan Expansion & Infill
Whistler Gold-Copper Project Wingspan Expansion & Infill – 2023 Drillholes 2023 Drill Results WH23-01: 241.05 meters at 0.60 g/t AuEq N From 1.95 meters depth (0.33 g/t Au, 0.16% Cu and 1.86 g/t Ag) 200 Confirmed mineralization to surface on south slope, tested meters southern contact with ‘Claw Dyk
Slide 70: Closing Remarks
Closing Remarks Investor & Analyst Day 2024 goldroyalty.com / NYSE: GROY
Slide 71: Takeaways
Takeaways • Improvements in Financial, ESG, and Portfolio Performance and Disclosure • On track to deliver on 2024 Guidance • Publication of Sustainability Report • Publication of Asset Handbook • Portfolio has several meaningful upcoming catalysts • Portfolio Quality is unmatched by other small cap
Slide 72: Q&A
Q&A Investor & Analyst Day 2024 goldroyalty.com / NYSE: GROY
Slide 73: Contact Us
Contact Us Email: info@goldroyalty.com TF: +1 (833) 396-3066 1188 West Georgia Street, Suite 1830, Vancouver, British Columbia, V6E 2Y3 Canada goldroyalty.com / NYSE: GROY 73
Slide 74: Appendix
Appendix Investor & Analyst Day 2024 goldroyalty.com / NYSE: GROY
Slide 75: Non-IFRS Measures
Appendix Non-IFRS Measures The following is a reconciliation of Total Revenue, Land Agreement Proceeds and Interest to Revenue; Cash Operating Expenses to General Administrative Costs; and GEOs for the periods indicated: For the quarter ended For the year ended 12-month period ended March 31, March