Gold Royalty Corp. · AMEX:GROY
Gold Royalty — Q2 2023 Earnings Presentation
48 slides from Gold Royalty's earnings presentation, Aug 11, 2023
Slide 1: Operating and Financial Results Investor Webcast
Operating and Financial Results Investor Webcast August 11, 2023 goldroyalty.com / NYSE: GROY 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Information Technical Information The information contained herein includes “forward-looking information” and “forward-looking statements” within Alastair Still, P.Geo., the Director of Technical Services of the Company, is a qualified person as such term is the meaning of
Slide 3: Gold Royalty Corp. Investment Highlights
Gold Royalty Corp. Investment Highlights • A Better Way to Invest in Gold • Precious metals focused • Insulated from operating and capital cost inflation • Diversified asset exposure • Free exposure to exploration investment • Quality Portfolio with Tier 1 Royalties in North America • Diverse portfo
Slide 4: Gold Royalty Companies Protect Investors from Inflation
Gold Royalty Companies Protect Investors from Inflation Royalty companies are insulated from cost inflation Rising inflation causes real rates to decline, driving up the price of gold and proceeds from royalties 2000 1800 Gold has historically shown strength when real rates are in 1600 negative terr
Slide 5: Gold Royalty has Significant Potential Growth
Gold Royalty has Significant Potential Growth Trading at a Discount to Peers on a P/NAV Basis 2.5x Franco-Nevada 2.0x Wheaton Precious Metals Royal Gold Gold Royalty Market Cap. $246M P/NAV - Street (ratio) 1.5x Triple Flag Osisko 1.0x Elemental ~0.50x Sandstorm Metalla Consensus P/NAV Compared to S
Slide 6: Gold Royalty Value Proposition
Gold Royalty Value Proposition Creating Value through a Track Record of Accretive Acquisitions Gold Royalty has increased Net Asset Value per share by over 50% since the its IPO in March 2021. Current share price of GROY is less than 0.50x NAV(1). >12.0x Increase 5.0x Increase Only 3.5x increase in
Slide 7: Quarterly Operating and Financial Results
Quarterly Operating and Financial Results Highlights and Outlook Enhancing the Portfolio with Decreasing Operating Costs 2023 Total Revenue and Full year guidance maintained despite lower revenue in the second quarter due to resequencing of production at Land Agreement the Barnat pit at Canadian Mal
Slide 8: Gold Royalty at a Glance
Gold Royalty at a Glance Key Shareholders and Increased Research Coverage Capital Markets Overview(1) Share Structure(2) Significant Shareholders(1) Issued & Outstanding 145.0 M GoldMining Inc. (15%) Nevada Gold Mines (7%) Warrants 10.9 M GDXJ VanEck ETF (4%) Board & Management (4%) Options & RSUs 8
Slide 9: 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 10: Cozamin Copper-Silver Mine
Cozamin Copper-Silver Mine 1st Quartile Cash Cost Mine with a Track Record of Exploration Success Technical Report Summary1 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. Prod
Slide 11: Gold Royalty Moving Forward
Gold Royalty Moving Forward Robust Sources of Growth Coming Into Production Exploration Advanced Exploration Development Cash Flowing Trenton Canyon Whistler Tuscarora Nutmeg Mountain Côté Gold Odyssey War Eagle NSR White Rock Cheechoo REN REN NPI Canadian Malartic Midway Red Lake Project Ducros Sil
Slide 12: Gold Royalty Moving Forward
Gold Royalty Moving Forward Sector Leading Organic Revenue CAGR of ~60% (2023 - 2026) Gold Royalty Revenue Profile and Growth Expected (US$ mm) (1) $60.00 $40.00 ≈ $35.00 $30.00 $25.00 Future growth driven by Côté, $20.00 REN, Odyssey, Fenelon, & $15.00 Others $10.00 $5.00 $0.00 2024E 2025E 2026E 20
Slide 13: Revenue Growth Expected from Development Assets
Revenue Growth Expected from Development Assets Several projects are advancing with production expected in the near term Multiple Assets Fueling Growth Odyssey Mine – initial production Q1 2023, ramping up towards 2027/2028 Borden Mine – increasing royalty coverage at depth Cozamin Mine – Recent acq
Slide 14: Portfolio Updates
Portfolio Updates Key Assets Advancing on Budget and Schedule Odyssey Mine Côté Gold Project Ren Project Updated 2023 mine Construction is >80% complete, on track Continued investment to boost productivity plan outlines for first production in early 2024. and accelerate development. production rampi
Slide 15: Free Exploration Upside Exposure
Free Exploration Upside Exposure Canada Gold Royalty’s portfolio of over 200 royalties is anchored in the best mining jurisdictions Quebec 72 in the world, on high-quality assets, with the best operating partners in the sector. Ontario 31 Over 700,000 meters of drilling in 2022 on underlying propert
Slide 16: Our Commitment to Sustainability
Our Commitment to Sustainability Best Practice Disclosure - Gold Royalty is committed to the highest standards of sustainability, partnering with operators who are leaders in Environmental, Social and Inaugural Sustainability Governance (ESG) practices. Report and Asset Handbook Our ESG goals: Measu
Slide 17: Gold Royalty Corp. Investment Highlights
Gold Royalty Corp. Investment Highlights • A Better Way to Invest in Gold • Precious metals focused • Insulated from operating and capital cost inflation • Diversified asset exposure • Free exposure to exploration investment • Quality Portfolio with Tier 1 Royalties in North America • Diverse portfo
Slide 18: Q&A Contact Info
Q&A Contact Info: Email: info@goldroyalty.com TF: +1 (833) 396-3066 1030 West Georgia Street, Suite 1830, Vancouver, British Columbia, V6E 2Y3 Canada goldroyalty.com / NYSE: GROY 18
Slide 19: Appendix
Appendix • Management & Board • Key Asset Overview goldroyalty.com / NYSE: GROY
Slide 20: 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 21: Board and Advisors
Board and Advisors Balance of Technical and Capital Markets Experience David Garofalo Warren Gilman Alan Hair Chairman & CEO Director Director Glenn Mullan Karri Howlett Ken Robertson Angela Johnson Director Director Director Director Ian Telfer Amir Adnani Trey Wasser Tim Young Co-Chair of the Co-C
Slide 22: Odyssey (Canadian Malartic Underground)
Odyssey (Canadian Malartic Underground) Cornerstone Royalty on One of Canada’s Largest Gold Mines Royalty Overview Operator Location Québec, Canada 3% NSR over northern part of the Odyssey Project and other Gold Royalty Interest surrounding royalties Commodities Au Asset Stage | Start Date Developme
Slide 23: Odyssey (Canadian Malartic Underground)
Odyssey (Canadian Malartic Underground) Increased Production & Significant Exploration Coverage Summary 3% NSR over the Odyssey North deposit, the majority of the East Malartic deposit, the Internal Zones, and a portion of the Norrie Zone. 1.5% NSR over the Midway project which lies to the east of O
Slide 24: Odyssey (Canadian Malartic Underground)
Odyssey (Canadian Malartic Underground) Development on Schedule and Continuing to Grow Recent Updates Development: • First production blast at Odyssey South in March 2023 • Development reached below Odyssey South ore body and first shaft access point. • Ramp access reached the bottom of the Odyssey
Slide 25: Odyssey (Canadian Malartic Underground)
Odyssey (Canadian Malartic Underground) Canadian Malartic Complex Internal-Study Internal-Study Update Odyssey and Internal Zones (3.0% NSR): • Odyssey South production commenced in March 2023 with expected production of 50,000 ounces in 2023 • Infill drilling has provided strong exploration results
Slide 26: Odyssey (Canadian Malartic Underground)
Odyssey (Canadian Malartic Underground) Odyssey South Expected to Enter Production in 2023 Upcoming Developments(1) 2024 • Odyssey South ramp-up to 3,400 tpd 2023-2028 • Potential for Internal Zones to supplement production profile 2027H1 • Initial Production from the Shaft 2028 • Initial Production
Slide 27: 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 28: Côté Gold Project
Côté Gold Project Royalty Coverage over Current Mineralization Coverage Summary (Zones 5 & 7) 1) Source: IAMGOLD Technical Report on the Côté Gold Project, effective date June 30, 2022. goldroyalty.com / NYSE: GROY 28
Slide 29: Côté Gold Project
Côté Gold Project Fully Funded Advanced Construction Project Recent Updates(1) Development: • The Project is approximately 80% complete. • ~1,500 workers on site, the project is nearing peak capacity. Capital Costs (100% basis): • Incurred $2.0 billion in costs to March 31, 2023. • Estimated attribu
Slide 30: Côté Gold Project
Côté Gold Project On-Track for First Gold Pour in 2024 Q1 Development Timeline 1) Source: IAMGOLD Press Release May 11, 2023. goldroyalty.com / NYSE: GROY 30
Slide 31: 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 32: REN Project
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. 32
Slide 33: REN Project
REN Project Resource Growth Expected in 2023 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 34: Borden Mine
Borden Mine Increasing Coverage at Depth Royalty Overview Operator(1) Location Ontario, Canada Gold Royalty Interest 0.5% NSR over underground workings at Borden Lake Commodities Au Asset Stage Producing Expected Production(1) ~100 koz per year Life of Mine(2) Mine life to at least 2027 P&P: 950 koz
Slide 35: Borden Mine
Borden Mine Increasing Coverage at Depth Recent Updates Production: • Achieved commercial production in late 2019 projecting over 100,000 ounces of annual production. • Ore from Borden is processed at Porcupine’s mill near Timmins, Ontario, profitably extending operations at the Porcupine complex. •
Slide 36: Borden Mine
Borden Mine Increasing Coverage at Depth goldroyalty.com / NYSE: GROY 1) Source: 2018 Goldcorp Borden Mine Plan Report 36
Slide 37: 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 38: Granite Creek
Granite Creek Granite Creek Surface Plan View Updated Feasibility Study Expected in 2023 Recent Updates Exploration: • 30,000-meter drill program in 2022 discovered the South Pacific Zone. • “The continuity of high-grade mineralization makes the SPZ a priority for development and we look forward to
Slide 39: 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 40: Fenelon Gold Project
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 41: Railroad-Pinion
Railroad-Pinion Permitting and Resource Expansion Underway Royalty Overview Operator Location Nevada, USA Gold Royalty Interest 0.44% NSR over Dark Star & Pinion areas Commodities Au, Ag Asset Stage Development Expected Production(1) ~124 koz per year Life of Mine ~8+ Years P&P: 1.6 Moz Au (0.77 g/t
Slide 42: Railroad-Pinion
Railroad-Pinion Granite Creek Surface Plan View Permitting and Resource Expansion Underway Recent Updates Orla closed acquisition of Gold Standard Ventures (2022 Q3): • Solidifies Orla’s strategy to become a growth-orientated, low-cost, mid-tier gold producer. • Began integrating South Railroad proj
Slide 43: Railroad-Pinion
Railroad-Pinion EIS Development & Consultation 2022-2024 Development Timeline goldroyalty.com / NYSE: GROY 1) Image Source: Orla Mining Corporate Presentation – March 2023. 43
Slide 44: Gold Rock Project
Gold Rock Project Recent Discoveries with Technical Studies Underway Royalty Overview Operator Location Nevada, USA Gold Royalty Interest 0.50% NSR Commodities Au Asset Stage Development | Feasibility expected in 2024 Drilling 35,000 meters in 2023 M&I: 0.40 Moz (19.0 Mt @ 0.66 g/t) Mineral Resource
Slide 45: Gold Rock Project
Gold Rock Project Granite Creek Surface Plan View Recent Discoveries with Technical Studies Underway Recent Updates Exploration: • Discovery of Carlin-type high-grade sulphide mineralization at depth (2022 Q4): • 5.5 g/t Au over 3.0m; 7.1 g/t Au over 2.1m • 6.6 g/t Au over 5.8m; 4.1 g/t Au over 8.1m
Slide 46: Whistler Gold Project
Whistler Gold 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 Indicated: 2.99
Slide 47: Whistler Gold Project
Whistler Gold 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 classi
Slide 48: Contact Us
Contact Us Email: info@goldroyalty.com TF: +1 (833) 396-3066 1030 West Georgia Street, Suite 1830, Vancouver, British Columbia, V6E 2Y3 Canada goldroyalty.com / NYSE: GROY 48