Gold Royalty Corp. · AMEX:GROY
Gold Royalty — Merger or Acquisition (January 2022)
27 slides from Gold Royalty's merger presentation, January 2022
Slide 1: Creating A Leading Growth-Focused Precious Metals Royalty Company
Creating A Leading Growth-Focused Precious Metals Royalty Company January 2022 NYSE American: GROY 26 goldroyalty.com
Slide 2: Disclaimer
Disclaimer NOTICE TO READERS This presentation is for informational purposes only and does not constitute an offer to buy or sell, or a solicitation of an offer to sell or buy, any securities. The offer to acquire securities (the “Offer”) of Elemental Royalties Corp. (“Elemental”) and to issue secur
Slide 3: Transaction Rationale
Transaction Rationale Growing a Precious Metals Focused Royalty Company Strategically positions Gold Royalty as a preeminent intermediate precious metals royalty company Sector-leading portfolio of 200 royalties across cash flowing, development and exploration assets Industry leading growth prof
Slide 4: Transaction Summary
Transaction Summary Gold Royalty’s Offer is Attractive to Elemental Shareholders • Acquisition of all outstanding shares of Elemental Royalties Corp. (“ELE” or “Elemental”), together with all associated rights under the shareholder rights plan of ELE dated December 30, 2021 The Offer • Total conside
Slide 5: Benefits to Gold Royalty Shareholders
Benefits to Gold Royalty Shareholders Elemental Aligns with Gold Royalty’s Growth Strategy Adds a highly complementary portfolio of cash- Adds diversification into Western Australia, another flowing and development assets Tier-1 jurisdiction Partnerships with premier operators including Imme
Slide 6: Benefits to Elemental Shareholders
Benefits to Elemental Shareholders Significant Premium & Participation in the Newest Intermediate Royalty Company 1 Immediate premium of 37% based on 4 Strong balance sheet with $37 mm in Significant December 17, 2021 closing prices total available liquidity, and zero debt Financial Upfront Im
Slide 7: Significant Upfront Premium
Benefits to Elemental Shareholders 1 Significant Upfront Premium Significant Upfront Premium of 37% … Exceeds Elemental’s 2021 peak share price $1.80 Current Offer (C$1.78) $1.70 C$1.78 Elemental Share Price (C$/sh) +37% $1.60 C$1.30 $1.50 $1.40 $1.30 $1.20 $1.10 Jan-21 Mar-21 May-21 Jul-21 Sep-21 N
Slide 8: Sector-Leading Portfolio
Benefits to Elemental Shareholders 2 Sector-Leading Portfolio Pure Precious Metals Exposure1 Immediate Cash Flow & Strong Growth Pipeline1 200 < 1% 19% 20% Royalties Producing Developing Precious Metals Advanced > 99% Exploration 61% 12 23 Royalties on Royalties on Producing Assets in Focus on Tier
Slide 9: Enhanced Trading Liquidity & Financial Strength
Benefits to Elemental Shareholders 3 Enhanced Trading Liquidity & 4 Financial Strength Enhanced Trading Liquidity Financial Strength 639 $3.2 $37 mm in total available liquidity (cash & marketable securities) No debt Oversubscribed $90 mm IPO in March 2021 Demonstrated capital markets access
Slide 10: Management Track Record
Benefits to Elemental Shareholders 5 Management Track Record David Garofalo Mr. Garofalo has worked in various Josephine Man Ms. Man is an experienced financial Chairman & CEO leadership capacities in the natural resources Chief Financial Officer professional and acts as CFO of Uranium sector over t
Slide 11: Re-Rate Potential Through Scale, Portfolio Quality and Growth
Benefits to Elemental Shareholders 6 Re-Rate Potential Through Scale, Portfolio Quality and Growth Robust Re-Rate Potential P / NAV1 (x) vs. Market Cap ($ mm) – Log Scale Cornerstone Royalties on Canadian Malartic, Fenelon, Karlawinda 2.25x Franco Nevada Term Enhanced Cash Flow Generation and In
Slide 12: Canadian Malartic Overview
Canadian Malartic Overview Cornerstone Asset Canadian Malartic Asset Highlights Canadian Malartic Royalty Coverage “A generational asset where we can demonstrate at least several decades of mine life” - Yamana Malartic truly is a world-class asset – Location, Size, Quality, Longevity Annual produc
Slide 13: Overview of Select Key Assets: REN and Fenelon
Overview of Select Key Assets REN and Fenelon REN – 1.5% NSR | 3.5% NPI Fenelon – 2% NSR “Potential significant new discovery at key extension of Goldstrike” “Multi-million ounce deposit with significant expansion potential” Key Highlights: Key Highlights: Project owned by Nevada Gold Mines (Barri
Slide 14: Overview of Select Key Assets: Karlawinda and Wahgnion
Overview of Select Key Assets Karlawinda and Wahgnion Karlawinda – 2% NSR Wahgnion – 1% NSR “Australia’s newest gold mine” “More than one dozen drill-ready targets on the regional land package” Key Highlights: Key Highlights: Project owned by Capricorn Metals (US$812 mm Mkt Cap) Project owned by
Slide 15: Powerful Organic Growth Model
Powerful Organic Growth Model Royalty Generator Model Proprietary Royalty Database • Prospecting and staking of properties that are subsequently optioned / • Strategic alliance with Prospector Royalty Corp. (PRC) sold to exploration companies including recently announced Barrick • Opportunity to acq
Slide 16: Premier Operating Partners
Premier Operating Partners High Quality Partners on Key Assets Focus on ESG and Sustainability • We choose to partner with operating companies that prioritize industry leading environmental, social and governance (ESG) practices including: • Promote a respectful, fair and inclusive workplace that is
Slide 17: Gold Royalty Moving Forward
Gold Royalty Moving Forward Corporate Milestones, Portfolio Catalysts and Future Revenue Growth Pro Forma Portfolio Near-Term Catalysts Pro Forma Revenue Profile and Growth Expected ($ mm) $40 Q1 2022 – REN mineral resource estimate Q1 2022 - Isabella Pearl heap leach pad expansion $30 Q1 2022 – Lav
Slide 18: Peer Leading Positioning
Peer Leading Positioning Market Capitalization ($ mm) Avg. Daily Traded Value ($ mm) (2) $15.6 $1,942 $13.7 $1,649 $1,133 $785 $690 $638 $3.3 $3.2 $416 $2.0 $288 $224 $1.2 $98 $70 $0.5 $0.4 $0.4 $0.1 $0.1 Royalty 1 Elemental Sandstorm PF Gold EMX Metalla Nomad Osisko Gold Royalty Maverix Triple Flag
Slide 19: Tender Instructions
Tender Instructions Tender by the Expiry Time of 5:00 p.m. (Toronto time) on April 27, 2022 Shareholder Type How Do I Tender My Shares to the Offer? Beneficial Shareholder Contact your broker or applicable intermediary and provide them with your tender instructions. You are a Beneficial Shareholder
Slide 20: Appendix
Appendix • Balance Sheet and Key Shareholders • Board and Advisors • Key Royalties / Interests • Tender Instructions 18 goldroyalty.com
Slide 21: Gold Royalty at a Glance
Gold Royalty at a Glance Strong Balance Sheet and Key Shareholders Capital Markets Overview Share Structure Significant Shareholders Issued & Outstanding 133.9 mm GoldMining Inc. (15%) GDXJ VanEck ETF (1%) Options and Restricted Share Units 6.1 mm Board & Management (3%) Sprott Asset Management (0.5
Slide 22: Board and Advisors
Board and Advisors Balance of Technical and Capital Markets Experience David Garofalo Former President & CEO of Goldcorp until its Amir Adnani Entrepreneur, Founder, President & CEO of Chairman & CEO merger with Newmont in 2019; former Director Uranium Energy Corp, Chairman of President & CEO of Hud
Slide 23: GRC Royalty Portfolio: Royalties on Producing Mines
GRC Royalty Portfolio Royalties on Producing Mines MALARTIC OP JERRITT CANYON MARIGOLD ISABELLA PEARL RAWHIDE Location Québec, Canada Nevada, USA Nevada, USA Nevada, USA Nevada, USA Operator Agnico Eagle / Yamana First Majestic Silver SSR Mining Fortitude Gold Rawhide Mining Royalty 3.0% NSR PTR & 0
Slide 24: GRC Royalty Portfolio: Royalties on Assets in Development
GRC Royalty Portfolio Royalties on Assets in Development MALARTIC UG REN GOLD ROCK BEAUFOR BEACON MILL LINCOLN HILL ODYSSEY GOLDSTRIKE PAN MINE BEAUFOR MINE BEAUFOR MINE ROCHESTER MINE Location Québec, Canada Nevada, USA Nevada, USA Québec, Canada Québec, Canada Nevada, USA Operator Agnico Eagle / Y
Slide 25: GRC Royalty Portfolio: Royalties on Assets in Development
GRC Royalty Portfolio Royalties on Assets in Development RAILROAD- FENELON HOG RANCH CHEECHOO SÃO JORGE YELLOWKNIFE PINION Northwest Territories, Location Québec, Canada Nevada, USA Nevada, USA Québec, Canada Brazil Canada Operator Wallbridge Mining Gold Standard REX Minerals Ltd Sirios Resources Go
Slide 26: GRC Royalty Portfolio: Royalties on Assets in Development
GRC Royalty Portfolio Royalties on Assets in Development LA MINA SLEEPER MT. HAMILTON MONTE CRISTO Nevada, USA Location Colombia Nevada, USA Nevada, USA Operator GoldMining Paramount Gold Waterton Resources Waterton Resources 1.0% NSR Royalty 2.0% NSR 0.33% NSR 1.0% NSR Project Stage PEA PEA Feasibi
Slide 27: Elemental Royalty Portfolio
Elemental Royalty Portfolio Royalties on Producing Mines WAHGNION KARLAWINDA AMANCAYA MERCEDES KWALE MT. PLEASANT Location Burkina Faso, West Africa Pilbara, West Australia Chile Mexico Kenya Australia Operator Endeavour Mining Capricorn Metals Austral Gold Equinox Gold Base Resources Zijin Mining R