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Gold Royalty (GROY)
:GROY
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Gold Royalty
(NYSE MKT:GROY)
Rating:52Neutral
Price Target:―
Positive Factors
Gold Pricing
The company managed to increase its average realized gold price, which more than offset the decline in GEO sales.
Operating Cash Flow
The firm has posted strong positive operating cash flow, aligning with management's focus of being cash flow positive throughout the year.
Revenue Growth
Significant revenue growth was driven by the sale of more Gold Equivalent Ounces and increased gold pricing.
Negative Factors
Inflationary Environment
Revised estimates account for the ongoing inflationary environment, continued investment in safe-haven assets, and recessionary concerns.
Net Loss
The company recorded $10.1M of revenue, which yielded a vastly improved net loss compared to the previous year.
Gold Royalty (GROY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$313.70M
Dividend YieldN/A
Average Volume (3M)1.68M
Price to Earnings (P/E)―
Beta (1Y)0.58
Revenue Growth186.18%
EPS Growth-125.58%
CountryUS
Employees13
SectorBasic Materials
Sector Strength64
IndustryOther Precious Metals
Share Statistics
EPS (TTM)-0.01
Shares Outstanding170,487,290
10 Day Avg. Volume1,634,226
30 Day Avg. Volume1,679,855
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.40
Price to Sales (P/S)0.00
P/FCF Ratio-6.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.28Price Target Upside78.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Gold Royalty Business Overview & Revenue Model
Company DescriptionGold Royalty Corp., a precious metals-focused royalty company, provides financing solutions to the metals and mining industry. It focuses on acquiring royalties, streams, and similar interests at varying stages of the mine life cycle to build a portfolio offering near, medium, and longer-term attractive returns for its investors. The company's portfolio consists of net smelter return royalties ranging from 0.5% to 2.0% on 17 gold properties located in the Americas. Gold Royalty Corp. was incorporated in 2020 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyGold Royalty Corp. generates revenue through its portfolio of royalty and streaming agreements with gold mining companies. Under these agreements, Gold Royalty provides upfront capital to mining operators in exchange for a percentage of the future revenue or gold produced from the mines. This model allows the company to earn a steady stream of income based on the performance and production levels of the partnered mines. The revenue from these agreements is typically structured as a percentage of the gross revenue or a fixed price per ounce of gold produced. Additionally, Gold Royalty may benefit from any appreciation in the price of gold, which can increase the value of its royalty or streaming income. Strategic partnerships with mining companies and the potential for acquiring new royalty interests are significant factors contributing to the company's earnings and growth.
Gold Royalty Financial Statement Overview
Summary
Gold Royalty demonstrates strong revenue growth and a solid equity base, but faces ongoing challenges with profitability and negative cash flows. The company must improve profitability and cash flow management to capitalize on growth opportunities.Income Statement
Gold Royalty shows a significant improvement in revenue, with a notable increase from $582,000 in 2022 to $7,764,000 in TTM, indicating a strong revenue growth trajectory. However, the company continues to face challenges with profitability, evidenced by negative net profit and EBIT margins. The gross profit margin has improved but remains overshadowed by substantial net losses.45
Neutral
Balance Sheet
The balance sheet is strong in terms of equity, with a high equity ratio of approximately 75.8% in TTM. The debt-to-equity ratio remains low, indicating conservative leverage. However, the company’s return on equity remains negative due to ongoing net losses, which poses a risk to financial health if profitability does not improve.60
Neutral
Cash Flow
Cash flow from operations shows improvement, although still negative, signaling potential for operational cash generation. Free cash flow has also improved somewhat, but remains negative, highlighting the need for better cash flow management. The operating cash flow to net income ratio indicates inefficiencies, but financing activities have strengthened the cash position.50
Neutral
| Breakdown | |||
| Dec 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 3.05M | 3.94M | 191.99K | 0.00 | Gross Profit |
| 1.56M | 2.19M | 23.33K | ― | EBIT |
| -8.78M | -17.44M | -12.58M | -140.63K | EBITDA |
| -7.76M | -15.57M | -9.92M | -140.58K | Net Income Common Stockholders |
| -26.76M | -17.35M | -17.43M | -140.63K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 1.78M | 14.25M | 11.02M | 37.54K | Total Assets |
| 698.30M | 688.61M | 279.50M | 55.46K | Total Debt |
| 33.06M | 9.66M | 47.61K | 0.00 | Net Debt |
| 31.61M | 2.61M | -9.86M | -37.54K | Total Liabilities |
| 177.35M | 152.40M | 54.18M | 196.38K | Stockholders Equity |
| 520.95M | 536.22M | 225.32M | -140.93K |
| Cash Flow | Free Cash Flow | ||
| -36.62M | -38.97M | -22.93M | ― | Operating Cash Flow |
| -7.92M | -19.26M | -11.95M | ― | Investing Cash Flow |
| -33.56M | 10.58M | -69.17M | 0.00 | Financing Cash Flow |
| 37.08M | 5.83M | 90.95M | 37.54K |
Gold Royalty Technical Analysis
Positive
1.84
Price Trends
1.51
Positive
1.42
Positive
1.38
Positive
Market Momentum
0.07
Negative
71.52
Negative
94.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GROY, the sentiment is Positive. The current price of 1.84 is above the 20-day moving average (MA) of 1.57, above the 50-day MA of 1.51, and above the 200-day MA of 1.38, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 71.52 is Negative, neither overbought nor oversold. The STOCH value of 94.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GROY.
Gold Royalty Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $313.70M | ― | -0.60% | ― | 186.18% | -125.58% | |
50 Neutral | $1.99B | -1.06 | -21.34% | 3.71% | 2.03% | -30.65% | |
| $136.83M | ― | -92.39% | ― | ― | ― | ||
79 Outperform | $332.06M | 12.98 | 11.16% | 3.36% | 29.36% | 707.68% | |
61 Neutral | $189.76M | 21.89 | 26.95% | ― | 67.42% | 137.01% | |
52 Neutral | $83.22M | ― | -103.61% | ― | -34.57% | -238.18% | |
49 Neutral | $414.09M | 3.61 | -6.15% | ― | -2.18% | -137.21% |
* Basic Materials Sector Average
Performance Comparison
GROY
Gold Royalty
1.84
0.25
15.72%
USAU
US Gold
10.78
4.88
82.71%
GORO
Gold Resource
0.61
0.10
19.61%
MUX
McEwen Mining
7.96
-4.17
-34.38%
CMCL
Caledonia Mining
17.21
6.65
62.97%
IDR
Idaho Strategic Resources
13.50
4.06
43.01%
Gold Royalty Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 18.71%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance with record cash flows and a positive gold price environment driving growth. However, challenges such as the Vareš mill output being below budget and trading at a discount compared to peers were noted. The long-term growth potential remains strong, indicating a balanced sentiment.Q1-2025 Updates
Positive Updates
Record Operating Cash Flow
The company achieved record operating cash flows of $2.5 million, representing an increase of over 180% compared to the previous quarter.
Positive Gold Price Environment
Spot gold prices have reached record highs, recently exceeding $3,300 per ounce, boosting both top and bottom lines.
Strong Financial Performance
Total revenue, land agreement proceeds, and interest amounted to $3.6 million, translating to 1,249 gold equivalent ounces for the quarter.
Long-term Growth Potential
The company forecasts 23,000 to 28,000 gold equivalent ounces by 2029, representing an over 360% increase from 2024.
Negative Updates
Vareš Mill Output Below Budget
Vareš mill output was 40,000 tons or 38% below budget due to factors like poor weather and tailings filtration issues.
Discount Relative to Peers
Despite a strong portfolio, the company continues to trade at a discount relative to peers on a price and net asset value basis.
Company Guidance
During the Gold Royalty Corp. first quarter 2025 results conference call, the company provided a comprehensive outlook, highlighting key metrics and future expectations. The company achieved record operating cash flow of $2.5 million, a 180% increase from the previous quarter, and reported an adjusted EBITDA of $1.7 million, up 30%. Total revenue and land agreement proceeds reached $3.6 million, translating to 1,249 gold equivalent ounces (GEOs) for the quarter. Production for the first quarter accounted for approximately 20% of the full-year guidance range of 5,700 to 7,000 GEOs. The company expects significant growth, forecasting an increase to 23,000-28,000 GEOs by 2029, a 360% rise from 2024 levels, based on an assumed gold price of $2,212 per ounce. Additionally, Gold Royalty plans to maintain stable operating costs, resulting in higher margins and increased cash reserves. The company emphasized the importance of disciplined capital allocation, focusing on debt reduction and strategic growth opportunities. The call also detailed ongoing developments at the Vareš, Côté Gold, and Borborema mines, which are expected to ramp up production throughout the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.