VANCOUVER, BC, May 11, 2023
/CNW/ - Gold Royalty Corp. ("Gold Royalty" or the
"Company") (NYSE American: GROY) is pleased to announce the
filing of its operating and financial results for the three months
ended March 31, 2023. These
results will be discussed at the Company's upcoming Investor Day on
May 16, 2023. All amounts are
expressed in U.S. dollars unless otherwise noted.
David Garofalo, Chairman and CEO
of Gold Royalty, commented, "Gold Royalty is beginning to see the
benefits of key assets commencing and ramping up production. The
first production blast occurred at Odyssey South at the end of
March 2023; Côté Gold is on
track to enter production early next year; and exploration success
at REN expanded its resource footprint well beyond existing
underground development. These advancements represent significant
potential near-term catalysts for Gold Royalty as the revenue and
cash flow growth organically embedded in our portfolio is starting
to materialize."
Highlights for the three months ended March 31, 2023, include:
- Total Revenue and Option Proceeds of $2.0 million for the three months ended
March 31, 2023, a 12% increase from
the comparative period of 2022. Total Revenue and Option Proceeds
is a non-IFRS measure. See "Non-IFRS Measures" below.
- With approximately $35 million
available liquidity, inclusive of a $15
million accordion feature in its credit facility (available
subject to certain additional conditions), the Company is
positioned well for further growth.
- Gold Royalty declared its fifth consecutive quarterly dividend,
yielding over 1.8% at current share prices.
- The Company published its inaugural Sustainability Report and
Asset Handbook outlining the Company's ESG initiatives and
providing a comprehensive overview of the Company's royalty
portfolio, respectively.
The following table sets forth selected financial information
for the three months ended March 31,
2023:
|
|
|
Three months
ended
|
|
|
|
|
March 31,
2023
|
|
|
March 31,
2022
|
|
(in thousands of
dollars, except per share amounts)
|
|
|
($)
|
|
|
($)
|
|
Total
revenue
|
|
|
767
|
|
|
638
|
|
Net loss
|
|
|
(3,083)
|
|
|
(2,388)
|
|
Net loss per share,
basic and diluted
|
|
|
(0.02)
|
|
|
(0.02)
|
|
Dividends declared per
share
|
|
|
0.01
|
|
|
0.01
|
|
Non-IFRS and Other
Measures
|
|
|
|
|
|
|
|
Total Revenue and
Option Proceeds*
|
|
|
1,970
|
|
|
1,759
|
|
Adjusted Net
Loss*
|
|
|
(1,318)
|
|
|
(2,148)
|
|
Adjusted Net Loss Per
Share, basic and diluted*
|
|
|
(0.01)
|
|
|
(0.02)
|
|
Total Gold Equivalent
Ounces
|
|
|
406
|
|
|
340
|
|
Adjusted cash flow used
in operating activities, excluding changes in non-cash working
capital *
|
|
|
(121)
|
|
|
(1,096)
|
|
* See Non-IFRS Measures
below.
|
For further detailed information, please refer to the Company's
unaudited condensed interim consolidated financial statements and
management's discussion and analysis, for the three months ended
March 31, 2023, copies of which are
available under the Company's profile at www.sedar.com and
www.sec.gov.
Outlook
Management believes the Company is on track to meet its
previously disclosed forecast of $5.5
million and $6.5 million in
Total Revenues and Option Proceeds in 2023 based on the production
guidance published to date by the operators of the properties
underlying the Company's interests, a forecasted gold price ranging
from $1,700 to $2,000 per ounce and expected payments on
optioned properties. The Company expects to incur $7.0 to $8.0
million in recurring cash operating expenses in 2023
(forecasted operating expenses, excluding transaction-related and
other non-recurring expenses) and believes it is poised to generate
positive net operating cash flow in 2024 (forecasted adjusted cash
flow used in operating activities, excluding changes in non-cash
working capital) when a number of its growth projects are expected
to ramp up in production, including the long-life cornerstone mines
at Côté and Odyssey.
The foregoing projected outlook constitutes 'forward-looking
information' and 'forward-looking statements" within the meaning of
applicable Canadian and U.S. securities laws and is intended to
provide information about management's current expectations for the
Company's 2023 fiscal year. Although considered reasonable as of
the date hereof, such outlook and the underlying assumptions may
prove to be inaccurate. Accordingly, actual results could differ
materially from the Company's expectations as set forth herein.
In preparing the above outlook, management assumed, among other
things, that the operators of the projects underlying the Company's
royalties will meet expected production milestones and forecasts
for the applicable period and that operators of optioned properties
will elect to make all expected option payments over the period.
See "Forward-Looking Statements".
Portfolio Update
- Odyssey Project (3.0% NSR over the northern portion of
the project): On April 27, 2023,
Agnico Eagle Mines Limited announced its 2023 first quarter results
including an update on the Odyssey Project. Good progress was made
on underground development and surface construction activities at
the Odyssey Project in the first quarter of 2023. Underground
development via ramp access passed the bottom of the Odyssey South
deposit and reached the level of the first shaft access point.
Shaft sinking activities have also commenced. The first production
blast occurred at the Odyssey South deposit in late March 2023. Drilling activities were focused on
infilling the internal zones at the Odyssey South deposit and
mineral resource expansion of the East Gouldie deposit to the east
and west.
- Côté Gold Project (0.75% NSR royalty over the southern
portion of the project): On February 16,
2023, IAMGOLD Corporation disclosed that, as of December 31, 2022, the Côté Gold project was
estimated to be 73% complete and expected to commence production in
early 2024 when it will become Canada's third largest gold mine by
production.
- REN Project (1.5% NSR royalty and 3.5% NPI): On
February 15, 2023, Barrick Gold
Corporation ("Barrick") announced its financial and
operating results for the full year 2022, including updates on the
Carlin Complex and the REN project along with an updated National
Instrument NI 43-101 – Standards of Disclosure for Mineral Projects
("NI 43-101") resource estimate for the project. At REN,
2022 drilling added to the resource base and increased Barrick's
understanding of the mineralization.
- Fenelon Gold Project (2.0% NSR royalty over the majority
of the project): On January 17, 2023,
Wallbridge Mining Company Limited announced an updated NI 43-101
mineral resource estimate for the Fenelon Gold project. The updated
mineral resource estimate will form the foundation for the upcoming
preliminary economic assessment on Fenelon, which is expected in
the second quarter of 2023.
- Granite Creek Mine Project (10.0% NPI): On
April 3, 2023, i-80 Gold Corp.
provided a comprehensive update on its 2023 exploration and
development programs. At Granite Creek, key initiatives are
underground development, increasing mining rates, completing
economic studies and a revised NI 43-101 resource estimate. A
feasibility study for the Ogee underground mine is nearing
completion along with an initial resource and preliminary economic
assessment for the South Pacific Zone that is expected to be the
primary zone at the Granite Creek Mine starting in 2024. These
studies are expected to be released in the second quarter of
2023.
Investor Day
Gold Royalty's management team will host an in-person Investor
Day on May 16, 2023 from 9:00 am ET to 12:00 pm ET in Toronto, Canada to provide a strategic update
of its business, a review of its assets and to review the Company's
inaugural Sustainability Report and Asset Handbook. A webcast of
the presentation will also be available.
Interested investors and analysts are invited to participate as
follows:
- In-Person (space limited): Please contact Jennifer Choi at jchoi@irinc.com or Peter Behncke at pbehncke@goldroyalty.com to
confirm your interest in attending in person and for additional
details on the event.
- Virtual Webcast: Register for the event here:
https://www.bigmarker.com/vid-conferences/GOLD-ROYALTY-INVESTOR-DAY
A replay of the event will be available on the Gold Royalty
website following the presentation.
About Gold Royalty Corp.
Gold Royalty Corp. is a gold-focused royalty company offering
creative financing solutions to the metals and mining industry. Its
mission is to invest in high-quality, sustainable, and responsible
mining operations to build a diversified portfolio of precious
metals royalty and streaming interests that generate superior
long-term returns for our shareholders. Gold Royalty's diversified
portfolio currently consists primarily of net smelter return
royalties on gold properties located in the Americas.
Qualified Person
Alastair Still, P.Geo., Director
of Technical Services of the Company, is a "qualified person" as
such term is defined under NI 43-101 and has reviewed and approved
the technical information disclosed in this news release.
Notice to Investors
Disclosure relating to properties in which Gold Royalty holds
royalty or other interests is based on information publicly
disclosed by the owners or operators of such properties. The
Company generally has limited or no access to the properties
underlying its interests and is largely dependent on the disclosure
of the operators of its interests and other publicly available
information. The Company 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
accurate.
Unless otherwise indicated, the technical and scientific
disclosure contained or referenced in this news release, including
any references to mineral resources or mineral reserves, was
prepared by the project operators in accordance with NI 43-101,
which differs significantly from the requirements of the U.S.
Securities and Exchange Commission applicable to domestic issuers.
Accordingly, the scientific and technical information contained or
referenced in this news release may not be comparable to similar
information made public by U.S. companies subject to the reporting
and disclosure requirements of the SEC.
Forward-Looking Statements:
Certain of the information contained in this news release
constitutes 'forward-looking information' and 'forward-looking
statements' within the meaning of applicable Canadian and U.S.
securities laws ("forward-looking statements"), including but not
limited to statements regarding: estimated future Total
Revenues and Option Proceeds and expected recurring expenses,
transaction related and non-recurring expenses and cash flows;
expectations regarding the development of the projects underlying
the Company's royalty interests; expectations regarding the
Company's growth and statements regarding the Company's plans and
strategies. Such statements can be generally identified by the use
of terms such as "may", "will", "expect", "intend", "believe",
"plans", "anticipate" or similar terms. Forward-looking statements
are based upon certain assumptions and other important factors,
including assumptions of management regarding the accuracy of the
disclosure of the operators of the projects underlying the
Company's projects, their ability to achieve disclosed plans and
targets, macroeconomic conditions, commodity prices, and the
Company's ability to finance future growth and acquisitions.
Forward-looking statements are subject to a number of risks,
uncertainties and other factors which may cause the actual results
to be materially different from those expressed or implied by such
forward-looking statements including, among others, any inability
to any inability of the operators of the properties underlying the
Company's royalty interests to execute proposed plans for such
properties or to achieved planned development and production
estimates and goals, risks related to the operators of the projects
in which the Company holds interests, including the successful
continuation of operations at such projects by those operators,
risks related to exploration, development, permitting,
infrastructure, operating or technical difficulties on any such
projects, the influence of macroeconomic developments, the
ability of the Company to carry out its growth plans and other
factors set forth in the Company's Annual Report on Form 20-F for
the year ended September 30, 2022 and
its other publicly filed documents under its profiles at
www.sedar.com and www.sec.gov. Although the Company has attempted
to identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. The Company does not
undertake to update any forward-looking statements, except in
accordance with applicable securities laws.
Non-IFRS Measures
The Company has included, in this news release, certain
performance measures, including: (i) Adjusted Net Loss and Adjusted
Net Loss Per Share; (ii) Gold Equivalent Ounces ("GEOs");
(iii) adjusted cash flows from operating activities, excluding
changes in non-cash working; and (iv) Total Revenue and Option
Proceeds, which are each non-IFRS measures. The presentation of
such non-IFRS measures is intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
the International Financial Reporting Standards ("IFRS") as
issued by the International Accounting Standards Board. These
non-IFRS measures do not have any standardized meaning prescribed
by IFRS, and other companies may calculate these measures
differently.
- Adjusted Net Loss and Adjusted Net Loss Per Share
Adjusted Net Loss is calculated by adding option proceeds
credited against mineral properties and deducting the following
from net income: transaction-related and non-recurring
expenses1, share of (gain)/loss and dilution gain in
associate, impairment, changes in fair value of derivative
liabilities and short-term investments, gain on disposition of
short-term investments, gain on loan modification, foreign exchange
gain/(loss), other income/(expense) and option proceeds credited
against mineral properties. Adjusted Net Loss Per Share, basic and
diluted have been determined by dividing the Adjusted Net Loss by
the weighted average number of common shares for the applicable
period. The Company included this information as management
believes that they are useful measures of performance as they
adjust for items which are not always reflective of the underlying
operating performance of our business and/or are not necessarily
indicative of future operating results. The table below provides a
reconciliation of net loss to Adjusted Net Loss and Adjusted Net
Loss Per Share, basic and diluted for the periods indicated:
|
|
For the three months
ended
March 31
|
|
|
2023
|
|
2022
|
(in thousands of
dollars, except per share amounts)
|
|
($)
|
|
($)
|
Net loss
|
|
(3,083)
|
|
(2,388)
|
Option proceeds
credited against mineral properties
|
|
1,203
|
|
1,121
|
Transaction related and
non-recurring expenses
|
|
459
|
|
960
|
Share of loss in
associate
|
|
128
|
|
108
|
Dilution gain in
associate
|
|
—
|
|
(80)
|
Impairment of
royalty
|
|
—
|
|
3,821
|
Change in fair value of
derivative liabilities
|
|
(230)
|
|
(1,798)
|
Change in fair value of
short-term investments
|
|
(58)
|
|
(3,875)
|
Foreign exchange
(gain)/loss
|
|
48
|
|
(13)
|
(Gain)/loss on loan
modification
|
|
249
|
|
—
|
Other income
|
|
(34)
|
|
(4)
|
Adjusted Net
Loss
|
|
(1,318)
|
|
(2,148)
|
Weighted average number
of common shares
|
|
144,289,573
|
|
134,019,359
|
Adjusted Net Loss
per Share, basic and diluted
|
|
(0.01)
|
|
(0.02)
|
- GEOs
Total GEOs are determined by dividing revenue by the
following average gold prices:
For three months
ended:
|
|
Units
|
|
Average Gold
Price
|
March 31,
2022
|
|
(US$/oz)
|
|
1,877
|
March 31,
2023
|
|
(US$/oz)
|
|
1,889
|
- Adjusted cash flow used in operating activities, excluding
changes in non-cash working capital
Adjusted cash flow used in operating activities, excluding
changes in non-cash working capital is determined by excluding the
impact of changes in non-cash working capital items, transaction
and non-recurring expenses and option proceeds credited against
mineral properties to or from cash used in operating activities.
The Company has included this information as management believes
certain investors use this information to evaluate our performance
in comparison to other gold royalty companies in the precious metal
mining industry. The table below provides a reconciliation of net
loss to adjusted cash flow used in operating activities, excluding
changes in non-cash working capital.
|
|
For the three months
ended
March 31
|
|
|
2023
|
|
2022
|
(in thousands of
dollars)
|
|
($)
|
|
($)
|
Net loss
|
|
(3,083)
|
|
(2,388)
|
Items not involving
cash:
|
|
|
|
|
Depreciation
|
|
21
|
|
15
|
Depletion
|
|
117
|
|
488
|
Interest
expense
|
|
294
|
|
105
|
Other income
|
|
(13)
|
|
(1)
|
Share-based
compensation
|
|
880
|
|
1,146
|
Change in fair value of
short-term investments
|
|
(58)
|
|
(3,875)
|
Change in fair value of
derivative liabilities
|
|
(230)
|
|
(1,798)
|
Impairment of
royalty
|
|
—
|
|
3,821
|
Share of loss in
associate
|
|
128
|
|
108
|
Dilution gain in
associate
|
|
—
|
|
(80)
|
Deferred tax
recovery
|
|
(88)
|
|
(652)
|
Loss on loan
modification
|
|
249
|
|
—
|
Foreign exchange
gain
|
|
—
|
|
(66)
|
Cash flow used in
operating activities, excluding changes in non-cash working
capital
|
|
(1,786)
|
|
(3,177)
|
Transaction related and
non-recurring expenses
|
|
459
|
|
960
|
Option proceeds
credited against mineral properties
|
|
1,203
|
|
1,121
|
Adjusted cash flow used
in operating activities, excluding changes in non-cash working
capital
|
|
(121)
|
|
(1,096)
|
- Total Revenue and Option Proceeds reconciliation
Total Revenue and Option Proceeds are determined by adding
option proceeds credited against mineral properties to total
revenue. The Company has included this information as management
believes certain investors use this information to evaluate the
Company's performance in comparison to other gold royalty companies
in the precious metal mining industry. Below is a reconciliation of
our Total Revenue and Option Proceeds to total revenue for the
three months ended March 31, 2023 and 2022, respectively:
|
|
For the three months
ended
March 31
|
|
|
2023
|
|
2022
|
(in thousands of
dollars)
|
|
($)
|
|
($)
|
Royalty
|
|
234
|
|
259
|
Advance minimum
royalty
|
|
331
|
|
288
|
Option
proceeds
|
|
1,405
|
|
1,212
|
Total Revenue and
Option Proceeds
|
|
1,970
|
|
1,759
|
Option proceeds
credited against mineral properties
|
|
(1,203)
|
|
(1,121)
|
Total
revenue
|
|
767
|
|
638
|
__________________________
|
1
Transaction-related and non-recurring expenses are a supplementary
financial measure comprised of operating expenses that are not
expected to be incurred on an ongoing basis. In the first quarter
of 2023, non-recurring expenses related primarily to professional
fees related to changing the Company's fiscal year-end, tax
restructuring following the completion of corporate transactions,
establishing dividend reinvestment and financing programs and
select corporate development activities and in the same period of
2022, related primarily to consulting fees and professional fees
associated with corporate transactions.
|
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SOURCE Gold Royalty Corp.