Gold Royalty Corp. Reports Record Earnings and Strategic Growth

Gold Royalty Corp. ((GROY)) has held its Q2 earnings call. Read on for the main highlights of the call.

The recent earnings call for Gold Royalty Corp. painted a generally positive picture, highlighting record revenue and EBITDA, strategic progress in key assets, and a robust approach to debt reduction. Despite some challenges, such as reduced guidance at the Vareš mine and uncertainty surrounding Jerritt Canyon revenue, the company’s strong performance and strategic positioning suggest a promising outlook for future growth.

Record Quarterly Revenue and EBITDA

Gold Royalty Corp. achieved new records in revenue and adjusted EBITDA, with the latter reaching $2.4 million, marking a nearly 50% increase from the previous quarter. The total revenue, including land agreement proceeds and interest, was reported at $4.4 million, underscoring the company’s strong financial performance.

Positive Free Cash Flow

The company reported positive operating and free cash flow for the quarter, driven by contributions from the Vareš and Côté Gold Mines, alongside favorable gold prices. This financial health positions Gold Royalty Corp. well for future investments and growth.

Significant Progress in Key Assets

Key assets like the Côté Gold Mine achieved nameplate throughput ahead of schedule, contributing over $1 million in revenue. Additionally, Borborema is progressing towards commercial production, and Vareš achieved commercial production on July 1, 2025, marking significant milestones for the company.

Strong Gold Prices

With gold prices averaging $3,279 per ounce during the quarter, the company benefited from strong revenue and cash flow figures, further bolstering its financial standing.

Debt Reduction Strategy

Gold Royalty Corp. aims to be effectively net debt-free by the end of 2026. The company is focusing on debt reduction while also considering capital returns to shareholders and strategic growth opportunities, ensuring a balanced approach to financial management.

Potential for Industry Consolidation

The company anticipates increased consolidation in the royalty sector, driven by new strategic capital. This could lead to the creation of a mid-tier royalty company with organic growth and sufficient scale, positioning Gold Royalty Corp. advantageously in the market.

Reduced Guidance at Vareš Mine

Adriatic Metals reduced its full-year 2025 guidance for the Vareš mine, lowering the ore milled expectations. Despite this, the company remains optimistic about its overall production targets.

Temporary Revenue Decline at Canadian Malartic Mine

A temporary issue of mine sequencing resulted in only $18,000 in revenue from Agnico Eagle’s Canadian Malartic mine. The company expects this to be a short-term challenge.

Uncertain Future Revenue from Jerritt Canyon

While Gold Royalty Corp. received a favorable judgment for past royalties at Jerritt Canyon, future revenue remains uncertain unless the mine restarts, highlighting a potential risk area.

Forward-Looking Guidance

Looking ahead, Gold Royalty Corp. is focused on achieving net debt-free status by the end of 2026, utilizing excess cash and potential warrant proceeds to repay its revolving credit facility. Despite a reduction in guidance at the Vareš mine, the company maintains its full-year guidance of 5,700 to 7,000 gold equivalent ounces in 2025 and a 5-year outlook of 23,000 to 28,000 GEO. The potential for industry consolidation remains a key strategic focus.

In summary, Gold Royalty Corp.’s earnings call highlighted a strong financial performance and strategic positioning for future growth. With record revenue and EBITDA, positive cash flow, and a clear debt reduction strategy, the company is well-positioned to navigate challenges and capitalize on opportunities in the royalty sector.