Gold Royalty Corp. (NYSE: GROY-WT)

Gold Royalty Corp. is a precious metals focused royalty company that provides financing solutions to the mining industry by acquiring royalties streaming interests and similar non operating assets. The company does not mine or develop properties instead it holds a diversified portfolio of 258 royalty and streaming interests across various stages of mine life with eight of those interests attached to cash producing assets. Its business model centers on acquiring existing royalties creating new ones through its royalty generator model and pursuing accretive acquisitions of companies that hold such assets.

Gold Royalty Corp. generates revenue primarily from royalty payments which are typically a percentage of the mineral production or net revenue from the underlying projects and from streaming arrangements where it receives an upfront payment for the right to purchase a portion of future production at a predetermined price. In addition the company earns interest on loans made to mining companies that are convertible into additional royalty interests such as the gold linked loan related to the Borborema project. These cash flows are received from the operators of the mines where the company holds its interests.

Gold Royalty Corp. positions itself as a diversified pure play royalty company within the precious metals sector competing with other royalty and streaming firms such as Franco Nevada Wheaton Precious Metals and Royal Gold as well as with mining companies and financial buyers seeking similar assets. Its competitive advantages stem from a portfolio of 258 interests spread across eight countries and over 100 different operating partners which reduces reliance on any single asset or jurisdiction. The company benefits from an experienced management team with deep mining expertise a lean but scalable operating structure and its royalty generator model that creates additional upside from early stage projects without incurring development costs.

Gold Royalty Corp.’s customers are the mining companies that operate the properties underlying its royalty and stream interests and it receives periodic payments directly from these operators. Key operators include Agnico Eagle at the Canadian Malartic property IAMGOLD at the Côté Gold mine Capstone Copper at the Cozamin mine Wallbridge at the Fenelon Gold project BHP Group at the Pedra Branca mine and numerous other producers across the Americas and beyond. The company does not sell products to end users its revenue is derived solely from these contractual arrangements with mine operators.