Gold Royalty Corp. · AMEX:GROY
Gold Royalty — Merger or Acquisition (June 2024)
18 slides from Gold Royalty's merger presentation, Jun 4, 2024
Slide 1: Vares Copper Stream Acquisition
Vares Copper Stream Acquisition Significant and Immediate Revenue Contribution to GRC’s Cash Flow Profile June 4, 2024 goldroyalty.com / NYSE: GROY
Slide 2: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking Statements generally has limited or no ability to verify such information. Although the Company does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accur
Slide 3: Investment Highlights: Vares Copper Stream Acquisition
Investment Highlights Vares Copper Stream Acquisition • Materially Accretive to Gold Royalty’s Revenue and Cash Flow • Attractive Stream Terms: The Stream applies to 100% of copper production from the Rupice mine area with ongoing payments equal to 30% of the spot copper price, effective payable cop
Slide 4: 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: • ~$520M NAV1 SOQUEM Portfolio • $220M Dec 19, 2023: Cumulative Borborema Revenue by Royalty & Loan 20302 Aug 30, 2023: • >50% Revenue Cozamin Royalty C
Slide 5: Strong Fundamentals for Gold
Commodity Exposure Strong Fundamentals for Gold Gold Price – Nominal and Inflation Adjusted 3,000 180 Gold (Inflation Adjusted) Gold (Nominal) GDXJ 160 2,500 140 2,000 120 VanEck GDXJ Index (US$) 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 6: Copper Supply Deficit Expected to Drive Prices Higher
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 7: Gold Royalty Moving Forward: Vares Supplements Growth Pipeline
Gold Royalty Moving Forward Vares Supplements Growth Pipeline Exploration Advanced Exploration Development Cash Flowing Trenton Canyon Whistler Tuscarora Nutmeg Mountain Odyssey Vares1 White Rock War Eagle Cheechoo REN NPI REN NSR Côté Gold Ducros Sill Red Lake Project Gold Rock Midway Borborema Fen
Slide 8: 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 9: Adriatic Metals Overview
Adriatic Metals Overview Developing Europe’s next Silver Mine Adriatic Vares Development 2017 Acquired project and initial exploration commenced 2019 Maiden mineral resource estimate for the Vares project 2021 Definitive Feasibility Study published 2022 Permits received and construction commenced 20
Slide 10: Vares Production Guidance
Vares Production Guidance High-grade Operation Currently Ramping Up – Significant Near Term Cash Flow 2023 Guidance Overview and 2021 DFS Insights Adriatic Production Guidance1 Ore Mined (Kt) and Copper Grade (%) 2023 Vares Production Guidance1 1,000 2027-2040 800-900 800-900 800-900 Guidance 2024 2
Slide 11: 2024 Updated Guidance
2024 Updated Guidance Immediate and Significant Contribution from Vares 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 $5.2M 2,703 2023A 2024 Previous Guidance 2024 Updated Guidance 1) Total Re
Slide 12: Long Term Organic Revenue Growth
Gold Royalty Moving Forward Long Term Organic Revenue Growth Vares Stream Impact on Gold Royalty Analyst Consensus Revenue Profile (US$ mm) (1,2,3) $45.0 Based on Adriatic’s disclosed production schedule 16% $40.0 Vares is expected to add ~20-50% to broker forecasted revenues each year over the next
Slide 13: 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 Pro-Forma 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 14: Transaction Terms and Funding
Transaction Terms and Funding Terms and Structure Overview • Gold Royalty will pay $50 million to acquire the Stream from Orion, payable in $45 million in cash upon Purchase Price closing, and $5 million in Gold Royalty shares • 100% copper stream over Adriatic Metals’ Vares Silver Project in Bosnia
Slide 15: Gold Royalty has Significant Potential Growth
Gold Royalty has Significant Potential Growth 2.5x Wheaton Precious Metals Gold Royalty Vares acquisition adds scale and Market Cap. 2.0x cash flow, which correlates to higher Franco-Nevada valuation multiples $255M Royal Gold Triple Flag 1.5x ~0.61x P/NAV (ratio) Elemental Altus Osisko Consensus Me
Slide 16: 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 17: Summary Investment Highlights
Gold Royalty Corp. Summary Investment Highlights • A Better Way to Invest in Gold • Precious metals focused supplemented by copper exposure • Insulated from operating and capital cost inflation relative to producers • Diversified asset exposure. • Free exposure to exploration investment • Quality Po
Slide 18: Q&A Contact Info
Q&A Contact Info: Email: info@goldroyalty.com TF: +1 (833) 396-3066 1188 West Georgia Street, Suite 1830, Vancouver, British Columbia, V6E 4A2 Canada goldroyalty.com / NYSE: GROY 18