Gold Royalty upgraded to Outperform from Market Perform at BMO Capital

BMO Capital upgraded Gold Royalty to Outperform from Market Perform with an unchanged price target of $2.50 following a period of research restriction owing to Gold Royalty’s bought deal financing as the firm resumes coverage. Proceeds from the financing were used to support the acquisition of a copper stream on the Vares Silver project and the firm views the IRR on the transaction as “reasonable” despite the equity dilution on account of the offering. The firm sees the near-term cash flow being used to support company deleveraging efforts and helping to bridge the gap to other portfolio assets either coming online or contributing more materially, the analyst added.