Gold Royalty Corp. · AMEX:GROY
Gold Royalty — Q3 2023 Earnings Presentation
47 slides from Gold Royalty's earnings presentation, Nov 15, 2023
Slide 1: Operating and Financial Results Investor Webcast
Operating and Financial Results Investor Webcast November 15, 2023 goldroyalty.com / NYSE: GROY 1
Slide 2: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking Statements 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 su
Slide 3: Quarterly Operating and Financial Results Highlights
Quarterly Operating and Financial Results Highlights Continued Growth Driven by Recent Acquisitions Growing Total Revenue and Land Agreement Gold Royalty Corp. achieves steady progress towards positive free cash flow generation with a 50% decrease Proceeds and Decreasing in Cash Operating Expenses a
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 2,000 Gold has historically shown strength when real rates are in 1,800 negative territo
Slide 5: Disconnect between Gold Price and Gold Equities Performance
Disconnect between Gold Price and Gold Equities Performance 25% Gold Price (%) GDXJ (%) 20% 15% 10% 5% The Junior Gold Miners Index (GDXJ) has underperformed the 0% price of gold by ~20% over the last 12 months -5% -10% -15% Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-2
Slide 6: Gold Royalty Value Proposition
Gold Royalty Value Proposition Creating Value through a Track Record of Accretive Acquisitions 0.40x P/NAV based on analyst Gold Royalty has increased Net Asset Value per share consensus estimates by over 40% since the its IPO in March 2021. Current share price of GROY is less than 0.40x NAV(1). 225
Slide 7: Gold Royalty Moving Forward
Gold Royalty Moving Forward Sector Leading Organic Revenue CAGR of ~66% (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 $20.00 Côté, REN, Odyssey, $15.00 Fenelon, & Others $10.00 $5.00 $0.00 2023E 2024E 2025E 20
Slide 8: Gold Royalty Moving Forward: Robust Sources of Growth
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 Canadian Malartic White Rock Cheechoo NSR NPI REN REN Borden Midway Red Lake Project Duc
Slide 9: Recent Acquisition: SOQUEM Portfolio
Recent Acquisition: SOQUEM Portfolio Large Prospective Portfolio Portfolio Acquisition Summary • Portfolio of royalties held by SOQUEM, a subsidiary of Investissement Quebec, covering ~65,000 hectares. Portfolio Overview • Quality operating partners including IAMGOLD, Agnico Eagle, Osisko Mining, Pr
Slide 10: Portfolio Updates
Portfolio Updates Key Assets Advancing on Budget and Schedule Odyssey Mine Côté Gold Project Ren Project Construction is ~92% complete, on track Ren highlighted as a key driver of growth Updated 2023 mine for the Carlin Complex. Advanced Mining for first production in early 2024. Targeting plan outl
Slide 11: Free Exploration Upside Exposure
Free Exploration Upside Exposure Canada Gold Royalty’s portfolio of 245 royalties is anchored in the best mining jurisdictions in Quebec 94 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 properties a
Slide 12: 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 13: 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 14: 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 14
Slide 15: Appendix
Appendix • Gold Royalty at a Glance • Management & Board • Key Asset Overview goldroyalty.com / NYSE: GROY
Slide 16: 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 17: 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 18: 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 19: 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 20: Odyssey: Increased Production & Significant Exploration
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 21: Odyssey: Development on Schedule and Continuing to Grow
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 22: Odyssey: Canadian Malartic Complex Internal-Study
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 23: Odyssey South Expected to Enter Production in 2023
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 24: 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 25: Côté Gold: Royalty Coverage over Current Mineralization
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 25
Slide 26: Côté Gold: Fully Funded Advanced Construction Project
Côté Gold Project Fully Funded Advanced Construction Project Recent Updates(1) Development: • The Project is over 91% complete. • Over 1,800 workers on site Next Steps: • Recent asset divestitures, ownership restructuring, term loan agreement and credit facility availability are expected to provide
Slide 27: Côté Gold: On-Track for First Gold Pour in 2024 Q1
Côté Gold Project On-Track for First Gold Pour in 2024 Q1 Development Timeline goldroyalty.com / NYSE: GROY 1) Source: IAMGOLD Press Release October 23, 2023. 27
Slide 28: 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 29: REN: Full Coverage Over Key Areas of Mineralization
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. 29
Slide 30: REN: Resource Growth Expected in 2023
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 31: 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 32: Cozamin: 1st Quartile Cash Cost 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 33: 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 34: Borden Mine: Increasing Coverage at Depth
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 35: Borden Mine: Increasing Coverage at Depth
Borden Mine Increasing Coverage at Depth goldroyalty.com / NYSE: GROY 1) Source: 2018 Goldcorp Borden Mine Plan Report 35
Slide 36: 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 37: Granite Creek: Updated Feasibility Study Expected in 2023
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 38: 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 39: Fenelon: Continued Exploration Success, 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 40: 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 41: Railroad-Pinion: Permitting and Resource Expansion Underway
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 42: Railroad-Pinion: EIS Development & Consultation
Railroad-Pinion EIS Development & Consultation 2022-2024 Development Timeline goldroyalty.com / NYSE: GROY 1) Image Source: Orla Mining Corporate Presentation – March 2023. 42
Slide 43: 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 44: Gold Rock: Recent Discoveries with Technical Studies Underway
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 45: 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 46: Whistler: Fully Permitted for Exploration
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 47: Contact Us
Contact Us 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 47