Gold Royalty Corp. · AMEX:GROY
Gold Royalty — Investor Day (May 2023)
81 slides from Gold Royalty's investor day presentation, May 16, 2023
Slide 1: Investor & Analyst Day
Investor & Analyst Day May 16, 2023 goldroyalty.com / NYSE: GROY
Slide 2: Gold Royalty Management Team
Gold Royalty Management 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
Slide 3: Agenda
Agenda 1. Introduction & Strategic Overview David Garofalo, Chairman & CEO Andrew Gubbels, CFO 2. Finance & ESG Update Katherine Arblaster, Vice President, Sustainability & ESG Peter Behncke, Manager, Corporate Development and Investor Relations 3. Portfolio Overview & Update Ryan Hass, Manager, Ope
Slide 4: 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 5: Introduction & Strategic Overview
Introduction & Strategic Overview David Garofalo, Chairman & CEO Investor & Analyst Day 2023
Slide 6: The Case for Gold
The Case for Gold Inflation, Negative Real Rates, and Record Global Debt are all bullish for Gold 2000 1800 Gold has historically shown strength when real rates are in 1600 negative territory. 1400 US$/oz. 1200 1000 800 600 400 200 0 10.0 Real Interest Rates (%) 5.0 0.0 -5.0 -10.0 1970 1973 1976 197
Slide 7: 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 8: 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 9: Achieving Scale with a Focus on Quality
Achieving Scale with a Focus on Quality From 18 Royalties to over 200 in just over 2 years Achievements since IPO • Acquisition or generation of over 200 royalties • Assembled an experienced Board and Management team 222 Royalties 191 Royalties • Inclusion in GDXJ Index • Initiated Dividend and impl
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 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 11: Gold Royalty has Significant Potential Growth
Gold Royalty has Significant Potential Growth Undervalued on a P/NAV basis Gold Royalty Franco-Nevada Market Cap. 2.5x Royal Gold Wheaton Precious $336M Metals 2.0x 0.62x P/NAV - Street (ratio) Consensus P/NAV Triple Flag Compared to Sector 1.5x Osisko Average closer to 1.0x NAV Sandstorm 1.0x Empre
Slide 12: Finance Update
Finance Update Andrew Gubbels, CFO Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY
Slide 13: Financial and Operating Performance: Q1 2023 Highlights
Financial and Operating Performance Q1 2023 Highlights • Total Revenue and Option Proceeds1 of $2.0 million for the three months ended March 31, 2023, a 12% +12% increase from the three months ended March 31, 2022 • Recurring cash operating expenses2 reduced by approximately 26% for the three months
Slide 14: Consistent Revenue & Reduced Cash Operating Expenses
Financial and Operating Performance Consistent Revenue & Reduced Cash Operating Expenses Operating Results & Outlook3 Total Revenue and Option Proceeds1 (US$M) Recurring cash operating expenses2 (US$M) $11M $7M-8M $5.5M-$6.5M $6M 2022A 2023E 2022A 2023E 1) Non-IFRS Financial Measure. See Appendix fo
Slide 15: Access to Capital to Fund Future Growth
Financial and Operating Performance Access to Capital to Fund Future Growth Sources of Capital • Available cash, cash equivalents, • $50M at the market (ATM) program $10M marketable securities $50M established in August 2022 Cash and ATM equivalents Program • Senior, secured revolving credit • $250M
Slide 16: Strong After-Market Trading Liquidity
Financial and Operating Performance Strong After-Market Trading Liquidity 1,400 Share Structure Days to turn Float2 1,258 Ticker NYSE:GROY 1,200 Issued & Outstanding 144.4 M Warrants 13.2 M Options & RSUs 9.0 M 1,000 Fully Diluted 166.6 M 870 Float1 81% 800 3M average value traded $1.1 M 3M average
Slide 17: ESG & Sustainability Update
ESG & Sustainability Update Katherine Arblaster, Vice President, Sustainability & ESG Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY 17
Slide 18: Importance of Environmental, Social and Governance
Importance of Environmental, Social and Governance (“ESG”) Global and Company Implications It is highly likely that the world will overshoot 1.5 degrees Celsius of warming In 2022, we used all of the biological resources that Earth regenerates during the entire year by July 28th In terms of resource
Slide 19: Our Commitment to Sustainability
Our Commitment to Sustainability Aligning to the UN Sustainable Development Goals Gold Royalty is committed to the highest standards of sustainability. We partner with operators who are leaders in sustainability practices, and we look to use our capital as an accelerator to achieve the UNSDGs. In 20
Slide 20: Sustainability at Gold Royalty
Sustainability at Gold Royalty Building strong foundations Society and our Environment and People Climate Change • Contributed to diverse community • Reviewed 100% of new agreements Make a positive Decarbonize our causes, including arts, culture and with enhanced ESG DD, considering contribution to
Slide 21: ESG Governance
ESG Governance Effective oversight for ESG-related risks Board of Directors Provide guidance and strategic oversight to management | Oversight of corporate risk | Review ESG-related risks for all deals ESG Committee of the Board Review ESG goals, strategies, and disclosures | On going progress updat
Slide 22: ESG Due Diligence
ESG Due Diligence Effective risk management of ESG-related issues Water Management: Tailings & Waste Management Biodiversity & Land Use: Climate Change and • Does the operator have an Emissions Management: • Has the operator assessed, and are appropriate tailings management • What biodiversity risks
Slide 23: Accelerating sustainable mining
Accelerating sustainable mining Financing leading sustainability practices Investing in sustainability leaders Tying finance to “table stakes” social or environmental actions Collaborating with our operating partners on their ESG goals goldroyalty.com / NYSE: GROY 23
Slide 24: Gold Royalty Inaugural Sustainability Report
Gold Royalty Inaugural Sustainability Report Progressing Towards Sustainable Operations goldroyalty.com / NYSE: GROY 24
Slide 25: Q&A
Q&A Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY
Slide 26: Portfolio Overview
Portfolio Overview Peter Behncke, Manager, Corporate Development & IR Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY
Slide 27: The Foundations for Future Growth
The Foundations for Future Growth High-quality assets, operators, and mining regions 222 Royalties 191 Royalties 18 Royalties March 2021 December 2021 March 2023 Initial Public Offering goldroyalty.com / NYSE: GROY 27
Slide 28: Portfolio Anchored by North America's Largest Gold Mines
Portfolio Anchored by North America’s Largest Gold Mines Canadian Malartic The Côté Gold Project Goldstrike Mine The Odyssey Project The REN Project Royalty does not cover Royalty does not cover the entire property the entire property Underground development project Development well advanced on what
Slide 29: Gold Royalty Moving Forward
Gold Royalty Moving Forward Robust Sources of Growth Coming Into Production Exploration Advanced Exploration Development Production Trenton Canyon Fenelon Tuscarora Nutmeg Mountain Côté Gold Odyssey Canadian Malartic War Eagle NSR White Rock Cheechoo REN REN NPI Jerritt Canyon NSR Midway Red Lake Pr
Slide 30: 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 Côté Gold – initial produ
Slide 31: Sector Leading Organic Revenue CAGR of ~60%
Gold Royalty Moving Forward Sector Leading Organic Revenue CAGR of ~60% (2023 - 2025) 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 32: Gold Royalty Inaugural Asset Handbook
Gold Royalty Inaugural Asset Handbook goldroyalty.com / NYSE: GROY 32
Slide 33: Asset Updates - Producing and Development Stage Assets
Asset Updates - Producing and Development Stage Assets Ryan Hass, Manager, Operations Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY 33
Slide 34: 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 35: 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, and a portion of the Norrie Zone. 1.5% NSR over the Midway project which lies to the east of Odyssey and just sout
Slide 36: 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 37: Odyssey South Expected to Enter Production in 2023
Odyssey (Canadian Malartic Underground) Odyssey South Expected to Enter Production in 2023 Upcoming Developments(1) 2023 Q2 Internal study on Odyssey mine alone with an update on exploration activities TBC Updated Plan for the Canadian Malartic Complex to utilize excess mill capacity 2027 Initial Pr
Slide 38: 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 avg.: 495
Slide 39: 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 39
Slide 40: Côté Gold: Fully Funded Advanced Construction 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 41: 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 1) Source: IAMGOLD Press Release May 11, 2023. goldroyalty.com / NYSE: GROY 41
Slide 42: 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 43: 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. 43
Slide 44: 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 45: 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 46: 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 47: Borden Mine
Borden Mine Increasing Coverage at Depth goldroyalty.com / NYSE: GROY 1) Source: 2018 Goldcorp Borden Mine Plan Report 47
Slide 48: Jerritt Canyon
Jerritt Canyon Operations Suspended, Exploration Program to Commence Royalty Overview Operator Location Nevada, USA Gold Royalty Interest 0.5% NSR Commodities Au, Ag Asset Stage Producing – entering care and maintenance Life of Mine ~14+ Years P&P: 0.44 Moz (2.50 Mt @ 5.41 g/t) Mineral Reserves & Re
Slide 49: Jerritt Canyon: Operations Suspended, Exploration Program to Commence
Jerritt Canyon Granite Creek Surface Plan View Operations Suspended, Exploration Program to Commence Recent Updates Production: • First Majestic temporality suspended mining operations on March 20, 2023. • Processing approximately 45,000 tonnes of aboveground stockpiles through the plant until the e
Slide 50: Asset Updates - Additional Drivers of Growth
Asset Updates - Additional Drivers of Growth Alastair Still, Director of Technical Services Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY 50
Slide 51: Portfolio Overview
Portfolio Overview 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 properties and over 6
Slide 52: 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 53: 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 54: Fenelon Gold Project
Fenelon Gold Project Continued Exploration Success, PEA In-Progress Royalty Overview Operator Location Québec, Canada Gold Royalty Interest 2.0% NSR over the Fenelon Gold Project Commodities Au Asset Stage Advanced Exploration | PEA expected in 2023 Q2 15,000 meters in 2023 Drilling 445,000 meters s
Slide 55: Fenelon: Continued Exploration Success, PEA In-Progress
Fenelon Gold Project Granite Creek Surface Plan View Continued Exploration Success, PEA In-Progress Recent Updates Exploration: • Updated mineral resource released (2023 Q1): • 2.37 Moz indicated (84% increase in grade) • 1.72 Moz inferred (85% increase in grade) • Currently working on a Preliminary
Slide 56: 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 57: 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 58: Railroad-Pinion: EIS Development & Consultation 2022-2024
Railroad-Pinion EIS Development & Consultation 2022-2024 Development Timeline goldroyalty.com / NYSE: GROY 1) Image Source: Orla Mining Corporate Presentation – March 2023. 58
Slide 59: 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 60: 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 61: 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 62: 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 63: Q&A
Q&A Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY
Slide 64: Sector Overview and Growth Approach
Sector Overview and Growth Approach John Griffith, Chief Development Officer Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY
Slide 65: Gold Royalty has Significant Room to Grow
Gold Royalty has Significant Room to Grow Undervalued on a P/NAV basis Key Takeaways Franco-Nevada 2.5x Royal Gold Wheaton Precious 1. Scale matters Metals Large market cap. royalty & streaming companies trade at premium P/NAV 2.0x multiples. P/NAV - Street (ratio) Triple Flag 2. Gold Royalty is tra
Slide 66: Sector Valuation Overview
Sector Valuation Overview Why should you care about NAV? P / NAV (x) 1.6x 1.5x 1.1x 1.0x 1.0x 0.9x 0.8x 0.6x Triple Flag Osisko Sandstorm Elemental Empress Vox Metalla Gold Royalty EV / 2023E Revenue (ratio) EV / 2026E Revenue (ratio) 56.2x 52.8x 14.4x 13.7x 10.6x 10.2x 8.6x 6.5x 17.4x 15.9x 12.5x 1
Slide 67: Four Pillars of Growth
Four Pillars of Growth Continuing to Build the Portfolio through multiple ways • Providing Royalty • Acquiring • Corporate • Gold Royalty Royalty Generation Royalty Financing 3rd Party Acquisitions Corporate M&A or Stream Royalties from 3rd Mergers and Prospecting Team Financing to fund parties such
Slide 68: The Royalty Generator Model
The Royalty Generator Model Jerry Baughman, Vice President, Nevada Select Royalty Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY 68
Slide 69: Royalty Generator Model
Royalty Generator Model Royalty Generation Identification of Royalty Prospective Staking Generation Land Prospective Land: Staking: Enter Agreement: • Historic high-grade • Minimal costs associated • Gold Royalty receives option exploration with staking payments, work • Past-producing areas • Fill r
Slide 70: Royalty Generator Model in the USA
Royalty Generator Model in the USA Consistent Organic Portfolio Growth 65 Total US Royalties Generated 63 Royalties Generated1 63 At no cost to shareholders 62 62 60 Agreements with 60 59 Quality Operators Barrick, i80-Gold, Newcrest, Eldorado, Yamana, etc. 57 Supplemental Cash Flow Option proceeds
Slide 71: Beyond Royalty Generation
Beyond Royalty Generation Having a local presence unlocks additional opportunities Having boots on the ground in these prolific regions helps identify opportunities our peers never see. ~40 of Gold Royalty’s royalties were 3rd party acquisitions from local sellers in Nevada, Quebec or Ontario. This
Slide 72: Approach to Due Diligence
Approach to Due Diligence Samuel Mah, Vice President, Evaluations Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY 72
Slide 73: Key Areas of Due Diligence
Key Areas of Due Diligence Comprehensive review of multiple aspects Reviewing the technical aspects of the Assessing the project to determine whether geology, mine and processing methods the asset can support the royalty transaction including exploration data, concession in the longer term and that
Slide 74: Due Diligence: Illustrative Acquisition Process
Due Diligence Illustrative Acquisition Process Screening Preliminary Non-Binding Confirmatory Binding Offer • A high-level review to Review Offer Due Diligence • Upon completion of the sort and advance on • Technical Review • Valuation is adjusted to • Exclusivity typically due diligence process, th
Slide 75: Q&A
Q&A Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY
Slide 76: Closing Remarks
Closing Remarks Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY
Slide 77: Takeaways
Takeaways: • Improvements in Financial, ESG, and Portfolio Performance and Disclosure • On track to deliver on 2023 Guidance • Publication of Inaugural Sustainability Report • Publication of Inaugural Asset Handbook • Portfolio has several meaningful upcoming catalysts • Portfolio Quality is unmatch
Slide 78: Q&A
Q&A Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY
Slide 79: 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 79
Slide 80: Appendix
Appendix Investor & Analyst Day 2023 goldroyalty.com / NYSE: GROY
Slide 81: Non-IFRS Measures
Appendix Non-IFRS Measures Non-IFRS Measures Adjusted cash flow used in operating activities, excluding changes in non-cash working capital The Company has included, in this news release, certain performance measures, including: (i) Adjusted Net Loss and Adjusted Net Loss Per Adjusted cash flow used