Ima call it another win! Hehehe.
$Gold Royalty (GROY.US)$ Highlights for the three months ended June 30, 2024
•Quarterly revenue of $1.8 million and Total Revenue, Land Agreement Proceeds and Interest of $2.2 million (947 GEOs), represented an approximate 300% increase compared to the same period of 2023. In the second quarter of 2024, the Company recorded its first royalty payment from IAMGOLD’s Côté Gold Mine and continued to benefit from its existing cash flowing royalties at the Borborema Project and the Canadian Malartic, Cozamin, and Borden Mines. The Company's royalty generator model added $0.4 million in land agreement proceeds in the quarter. •Achieved a second consecutive quarter of positive cash flows from operations of $1.0 million, which does not include an additional $0.2 million of land agreement proceeds credited against mineral properties. •Ongoing cost management initiatives resulted in a continued trend of decreased Cash Operating Expenses. Cash Operating Expenses decreased by 9% to $1.7 million from $1.8 million in the same period of 2023. •Completed the acquisition of a copper stream (the "Stream") on the Vares Silver Project ("Vares") from Orion Mine Finance for $50 million, a portion of which was funded by a bought deal equity financing completed by the Company for gross proceeds of $34.5 million.•Publication of the Company’s second annual Asset Handbook and Sustainability Report, which outlined that Gold Royalty had one of the lowest carbon intensity portfolios in the royalty and streaming sector.
See "Selected Asset Updates" for further information. Total Revenue, Land Agreement Proceeds and Interest, Cash Operating Expenses, Adjusted Net Loss, Adjusted Net Loss Per Share, basic and diluted, and Total GEOs are each non-IFRS measures and do not have a standardized meaning under IFRS. See "Non-IFRS Measures" for further information.
Recent Developments
Vares Copper Stream
On June 4, 2024, the Company completed the acquisition from OMF Fund III (Cr) Ltd., an entity managed by Orion Mine Finance Management LP, of a Stream on Vares, which is operated by a subsidiary of Adriatic Metals plc ("Adriatic") and located in Bosnia and Herzegovina for consideration consisting of $45 million in cash and $5 million satisfied by issuing 2,906,977 GRC Shares. The Stream applies to 100% of copper production from the mining area over the Rupice deposit. The Stream has associated ongoing payments equal to 30% of the LME spot copper price, with the effective payable copper fixed at 24.5%. First concentrate production at Vares occurred in February 2024 with commercial production expected in the fourth quarter of 2024.
In connection with the acquisition of the Stream, the Company also amended its credit agreement with the Bank of Montreal and the National Bank of Canada to expand its existing secured revolving credit facility (the "Credit Facility") by $5 million. The Credit Facility consists of a $30 million secured revolving credit facility with an accordion feature providing for an additional $5 million of availability subject to certain additional conditions and the satisfaction of certain covenants. The maturity date of the Credit Facility is March 31, 2027.
The acquisition of the Stream was financed with proceeds of the Offering (as defined below), borrowings under the Credit Facility and cash-on-hand.
•Quarterly revenue of $1.8 million and Total Revenue, Land Agreement Proceeds and Interest of $2.2 million (947 GEOs), represented an approximate 300% increase compared to the same period of 2023. In the second quarter of 2024, the Company recorded its first royalty payment from IAMGOLD’s Côté Gold Mine and continued to benefit from its existing cash flowing royalties at the Borborema Project and the Canadian Malartic, Cozamin, and Borden Mines. The Company's royalty generator model added $0.4 million in land agreement proceeds in the quarter. •Achieved a second consecutive quarter of positive cash flows from operations of $1.0 million, which does not include an additional $0.2 million of land agreement proceeds credited against mineral properties. •Ongoing cost management initiatives resulted in a continued trend of decreased Cash Operating Expenses. Cash Operating Expenses decreased by 9% to $1.7 million from $1.8 million in the same period of 2023. •Completed the acquisition of a copper stream (the "Stream") on the Vares Silver Project ("Vares") from Orion Mine Finance for $50 million, a portion of which was funded by a bought deal equity financing completed by the Company for gross proceeds of $34.5 million.•Publication of the Company’s second annual Asset Handbook and Sustainability Report, which outlined that Gold Royalty had one of the lowest carbon intensity portfolios in the royalty and streaming sector.
See "Selected Asset Updates" for further information. Total Revenue, Land Agreement Proceeds and Interest, Cash Operating Expenses, Adjusted Net Loss, Adjusted Net Loss Per Share, basic and diluted, and Total GEOs are each non-IFRS measures and do not have a standardized meaning under IFRS. See "Non-IFRS Measures" for further information.
Recent Developments
Vares Copper Stream
On June 4, 2024, the Company completed the acquisition from OMF Fund III (Cr) Ltd., an entity managed by Orion Mine Finance Management LP, of a Stream on Vares, which is operated by a subsidiary of Adriatic Metals plc ("Adriatic") and located in Bosnia and Herzegovina for consideration consisting of $45 million in cash and $5 million satisfied by issuing 2,906,977 GRC Shares. The Stream applies to 100% of copper production from the mining area over the Rupice deposit. The Stream has associated ongoing payments equal to 30% of the LME spot copper price, with the effective payable copper fixed at 24.5%. First concentrate production at Vares occurred in February 2024 with commercial production expected in the fourth quarter of 2024.
In connection with the acquisition of the Stream, the Company also amended its credit agreement with the Bank of Montreal and the National Bank of Canada to expand its existing secured revolving credit facility (the "Credit Facility") by $5 million. The Credit Facility consists of a $30 million secured revolving credit facility with an accordion feature providing for an additional $5 million of availability subject to certain additional conditions and the satisfaction of certain covenants. The maturity date of the Credit Facility is March 31, 2027.
The acquisition of the Stream was financed with proceeds of the Offering (as defined below), borrowings under the Credit Facility and cash-on-hand.
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