GICS Sector : Basic Materials
Gold 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.'s Q2 2025 financial performance was impressive, with the company reporting record revenue of $4.4 million and adjusted EBITDA of $2.4 million. The strong gold prices and ramp-up of key assets like Côté Gold and Borborema drove these results. The company's EPS came in at -$0.01, in line with analyst estimates. The achievement of positive free cash flow for the first time is a significant milestone, driven by strong operational results.
Publication Date: Aug -31
The company expects to deleverage quickly, becoming effectively debt-free by the end of 2026, primarily by using excess cash to repay its revolving credit facility. This is a positive development, as it will allow Gold Royalty to consider returning capital to shareholders once it is debt-free. The company's guidance for 2025 remains unchanged, with 5,700 to 7,000 gold equivalent ounces (GEO) expected, and a 5-year guidance of 23,000 to 28,000 GEO.
Gold Royalty sees significant consolidation in the royalty space and believes it could become a consolidator in the future, given its strong growth profile and peer-leading revenue and cash flow growth. This is an interesting development, as it could potentially lead to further growth and expansion for the company.
Analysts estimate next year's revenue growth at 59.5%. Looking at the valuation metrics, the company's P/S Ratio is 59.72, and EV/EBITDA is 318.3, indicating that the market is pricing in significant growth expectations. The Net Debt / EBITDA ratio is 23.19, which is expected to improve as the company deleverages. The current valuation multiples suggest that the market is optimistic about Gold Royalty's future prospects.
Gold Royalty Corp. (NYSE:GROY) Receives Consensus Rating of “Buy” from Analysts
Nov -29
Stock Traders Purchase Large Volume of Gold Royalty Call Options (NYSE:GROY)
Nov -29
GOLD ROYALTY ANNOUNCES AMENDED AND UPSIZED REVOLVING CREDIT FACILITY OF UP TO US$100 MILLION AND ELIMINATION OF DEBT
Nov -26
Gold Royalty (NYSEAMERICAN:GROY) Shares Down 1.4% – What’s Next?
Nov -18
GoldMining Expands Portfolio of Active Exploration Assets in Brazil, New 'Colíder' Exploration Concession Granted in Mato Grosso State
Nov -12
Gold Royalty Corp. (GROY) Q3 2025 Earnings Call Prepared Remarks Transcript
Nov -06
GOLD ROYALTY ADOPTS SHAREHOLDER RIGHTS PLAN
Nov -06
GOLD ROYALTY REPORTS THIRD QUARTER RESULTS; ACHIEVES RECORD REVENUE AND ADJUSTED EBITDA
Nov -06
The expected growth rate for this segment is slightly higher than the global growth hypothesis of 8.0% due to the increasing demand for precious metals and the company's diversified portfolio. The segment is expected to benefit from the growing demand for gold and other precious metals, driven by investors seeking safe-haven assets and the increasing use of gold in jewelry and other applications. The company's royalty interests are well-positioned to capture this growth, with a portfolio that includes royalties on various mining projects.
Gold Royalty Corp. offers gold streams, which provide investors with a percentage of gold production from a specific mine or project.
The company acquires and holds royalty interests in mining projects, providing a revenue stream from mineral production.
Gold Royalty Corp. offers NSRs, which entitle the company to a percentage of the net revenue generated by a mine or project.
The company provides gold loans to mining companies, earning interest on the loaned gold.
Gold Royalty Corp. enters into streaming agreements with mining companies, providing upfront capital in exchange for a percentage of future production.
Gold Royalty Corp. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of other precious metals.
Gold Royalty Corp.'s customers have limited bargaining power due to the company's strong market position and the lack of alternative suppliers.
Gold Royalty Corp. relies on a few key suppliers for its gold production, giving them some bargaining power, but the company's strong relationships and contracts mitigate this risk.
The threat of new entrants is low due to the high barriers to entry in the gold mining industry, including significant capital requirements and regulatory hurdles.
The gold mining industry is highly competitive, with many established players competing for market share and resources, leading to a high intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 5.96% |
| Debt Cost | 6.83% |
| Equity Weight | 94.04% |
| Equity Cost | 9.47% |
| WACC | 9.32% |
| Leverage | 6.34% |
Value: 5.4
Growth: 7.2
Quality: 3.2
Yield: 0.0
Momentum: 10.0
Volatility: 3.3
1-Year Total Return ->
Value: 6.6
Growth: 3.7
Quality: 4.5
Yield: 0.0
Momentum: 9.5
Volatility: 3.7
1-Year Total Return ->
Value: 3.6
Growth: 2.9
Quality: 4.9
Yield: 1.0
Momentum: 10.0
Volatility: 3.7
1-Year Total Return ->
Value: 5.0
Growth: 6.1
Quality: 2.9
Yield: 0.0
Momentum: 9.0
Volatility: 2.7
1-Year Total Return ->
Value: 1.3
Growth: 3.7
Quality: 7.2
Yield: 0.0
Momentum: 9.5
Volatility: 3.0
1-Year Total Return ->
Value: 6.6
Growth: 3.2
Quality: 3.3
Yield: 0.0
Momentum: 9.5
Volatility: 2.0
1-Year Total Return ->