GOLD ROYALTY REPORTS SECOND QUARTER 2024 RESULTS; CONTINUED GROWTH IN OPERATING CASH FLOW
Second Quarter 2024 Results Summary:
The following table sets forth selected financial information for the three and six months ended
|
|
For the three months |
|
For the six months |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
(in thousands of dollars, except per share amounts) |
|
($) |
|
($) |
|
($) |
|
($) |
Revenue |
|
1,794 |
|
468 |
|
4,688 |
|
1,235 |
General, administrative and project evaluation costs |
|
2,133 |
|
2,666 |
|
5,008 |
|
6,090 |
Net loss |
|
(2,236) |
|
(2,496) |
|
(3,641) |
|
(5,579) |
Net loss per share, basic and diluted |
|
(0.01) |
|
(0.02) |
|
(0.02) |
|
(0.04) |
Cash provided by (used in) operating activities |
|
987 |
|
(1,337) |
|
1,323 |
|
(3,398) |
Non-IFRS and Other Measures |
|
|
|
|
|
|
|
|
Total Revenue, Land Agreement Proceeds and Interest(1) |
|
2,215 |
|
557 |
|
6,400 |
|
2,527 |
Cash Operating Expenses(1) |
|
(1,655) |
|
(1,822) |
|
(3,915) |
|
(4,345) |
Adjusted Net Loss(1) |
|
(1,737) |
|
(2,487) |
|
(2,667) |
|
(3,805) |
Adjusted Net Loss Per Share, basic and diluted(1) |
|
(0.01) |
|
(0.02) |
|
(0.02) |
|
(0.03) |
Total Gold Equivalent Ounces ("GEOs")(1) |
|
947 |
|
282 |
|
2,967 |
|
1,324 |
(1) |
Total Revenue, Land Agreement Proceeds and Interest, Cash Operating Expenses, Adjusted Net Loss, Adjusted Net Loss Per Share, basic and diluted and Total GEOs are each non-IFRS measures and do not have a standardized meaning under IFRS. See "Non-IFRS Measures" for further information. |
For further detailed information, please refer to the Company's unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three and six months ended
Second Quarter 2024 Highlights:
- Quarterly revenue of
$1.8 million and Total Revenue, Land Agreement Proceeds and Interest of$2.2 million (947 GEOs), represented an approximate 300% increase compared to the same period of 2023. In the second quarter of 2024, the Company recorded its first royalty payment from IAMGOLD's CôtéGold Mine and continued to benefit from its existing cash flowing royalties at theBorborema Project and the Canadian Malartic, Cozamin, andBorden Mines . - The Company remains on track to achieve its annual guidance of between 6,500 and 7,000 GEOs, which equates to approximately
$13 million to$14 million in forecasted Total Revenue, Land Agreement Proceeds and Interest. - Achieved a second consecutive quarter of positive cash flows from operations of
$1.0 million , which does not include an additional$0.2 million of land agreement proceeds credited against mineral properties. - Ongoing cost management initiatives resulted in a continued trend of decreased Cash Operating Expenses. Cash Operating Expenses decreased by 9% compared to the same period of 2023.
- Completed the acquisition of a copper stream (the "Stream") on the
Vares Silver Project ("Vares") fromOrion Mine Finance for$50 million , a portion of which was funded by a bought deal equity financing completed by the Company for gross proceeds of$34.5 million . - Publication of the Company's second annual Asset Handbook and Sustainability Report, which outlined
Gold Royalty had one of the lowest carbon intensity portfolios in the royalty and streaming sector.
Portfolio Update:
On
Based on positive results from the exploration program near the Odyssey mine during the first half of 2024, Agnico Eagle has approved a supplemental exploration budget near-mine drilling and regional exploration drilling during the second half of the year. The objective is to further expand the mineral resource footprint laterally and add inferred mineral resources in support of a potential future Shaft #2 and the broader "Fill the Mill" strategy at the Canadian Malartic complex.
For further information see Agnico Eagle's news release dated
With the regards to an earlier ruling made by the
For further information see Adriatic's ASX Announcements dated
Côté
On
Additionally, IAMGOLD announced on
On
For further information see IAMGOLD's news releases dated
For further information see Aura's news release dated
In its management's discussion and analysis for the three months ended
In its management's discussion and analysis for the three and six months ended
For further information see Barrick's management's discussion and analysis for the year ended
Additionally, on
On
For further information see i-80's news releases dated
On
For further information see Capstone's news release dated
Royalty Generator Model Update
Our Royalty Generator Model continues to generate positive results with one new royalty added in the three months ended
We currently have 31 properties subject to land agreements and 6 properties under lease generating land agreement proceeds. The model continues to incur low operating costs with only
2024 Outlook
As previously disclosed, the company expects to see further growth in Revenue in the second half of 2024 with strong commodity prices, the expected ramp up of Côté towards 90% of nameplate capacity by the end of the year, and the commencement of commercial production at the
The Company remains on track to meet its previously disclosed updated forecast for 2024 of between approximately 6,500 and 7,000 GEOs, which equates to approximately
The 2024 foregoing outlook is based on an assumed gold price of
Investor Webcast
An investor webcast will be held on
To register for the investor webcast, please click the link below: https://www.bigmarker.com/vid-conferences/GROY-Q2-Results
A replay of the event will be available on the
About
Qualified Person
Alastair Still,
Notice to Investors
For further information regarding the project updates regarding properties underlying the Company's royalties, stream and other interests, please refer to the disclosures of the operators thereof, including the news releases referenced herein and the other disclosures of such operators. Disclosure relating to properties in which
Unless otherwise indicated, the technical and scientific disclosure contained or referenced in this news release, including any references to mineral resources or mineral reserves, was prepared by the project operators in accordance with Canadian National Instrument 43-101, which differs significantly from the requirements of the U.S. Securities and Exchange Commission ("
Forward-Looking Statements:
Certain of the information contained in this news release constitutes "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and
Non-IFRS Measures
The Company has included in this document, certain performance measures, including: (i) Adjusted Net Loss and Adjusted Net Loss Per Share; (ii) total GEOs; (iii) Total Revenue, Land Agreement Proceeds and Interest; and (iv) Cash Operating Expenses which are each non-IFRS measures. The presentation of such non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently.
Adjusted Net Loss and Adjusted Net Loss Per Share
Adjusted Net Loss is calculated by adding back land agreement proceeds credited against mineral properties, loan interest earned on the gold-linked loan, convertible debentures-accretion, transaction related and non-recurring general administrative expenses* and share of loss and deducting the following from net loss: dilution income in associate, changes in fair value of derivative liabilities, embedded derivatives, short-term investments and gold-linked loan, gain on loan modification, foreign exchange gain (loss) and other income (expense). Adjusted Net Loss Per Share, basic and diluted have been determined by dividing the Adjusted Net Loss by the weighted average number of common shares for the applicable period. Management believes that they are useful measures of performance as they adjust for items which are not always reflective of the underlying operating performance of our business and/or are not necessarily indicative of future operating results. The following is a reconciliation of net loss to Adjusted Net Loss, Per Share, basic and diluted for the periods indicated:
|
|
For the three months |
|
For the six months |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
(in thousands of dollars, except per share amounts) |
|
($) |
|
($) |
|
($) |
|
($) |
Net loss |
|
(2,236) |
|
(2,496) |
|
(3,641) |
|
(5,579) |
Land agreement proceeds credited against mineral properties |
|
163 |
|
89 |
|
1,213 |
|
1,292 |
Loan interest |
|
258 |
|
— |
|
499 |
|
— |
Convertible debentures - accretion |
|
426 |
|
— |
|
821 |
|
— |
Transaction related and non-recurring expenses |
|
180 |
|
176 |
|
275 |
|
635 |
Share of gain in associate |
|
(152) |
|
(350) |
|
(100) |
|
(222) |
Dilution gain in associate |
|
— |
|
(12) |
|
(9) |
|
(12) |
Change in fair value of derivative liabilities |
|
— |
|
(9) |
|
— |
|
(239) |
Change in fair value of gold-linked loan |
|
(311) |
|
— |
|
(950) |
|
— |
Change in fair value of short-term investments |
|
52 |
|
135 |
|
(49) |
|
77 |
Change in fair value of embedded derivatives |
|
(179) |
|
— |
|
(370) |
|
— |
Foreign exchange loss |
|
100 |
|
59 |
|
13 |
|
107 |
Loan modification (gain) loss |
|
— |
|
— |
|
(310) |
|
249 |
Other income |
|
(38) |
|
(79) |
|
(59) |
|
(113) |
Adjusted Net Loss |
|
(1,737) |
|
(2,487) |
|
(2,667) |
|
(3,805) |
Weighted average number of common shares |
|
153,412,808 |
|
144,560,621 |
|
149,595,753 |
|
144,425,846 |
Adjusted Net Loss Per Share, basic and diluted |
|
(0.01) |
|
(0.02) |
|
(0.02) |
|
(0.03) |
* |
Transaction related, and non-recurring general administrative expenses comprised of operating expenses that are not expected to be incurred on an ongoing basis. During the six months ended |
Total GEOs
Total GEOs are determined by dividing Total Revenue, Land Agreement Proceeds and Interest by the average gold prices for the applicable period:
(in thousands of dollars, except Average Gold Price/oz and GEOs) |
|
Average |
|
Total |
|
GEOs |
For three months ended |
|
2,338 |
|
2,215 |
|
947 |
For three months ended |
|
1,978 |
|
557 |
|
282 |
For six months ended |
|
2,157 |
|
6,400 |
|
2,967 |
For six months ended |
|
1,908 |
|
2,527 |
|
1,324 |
Total Revenue, Land Agreement Proceeds and Interest
Total Revenue, Land Agreement Proceeds and Interest are determined by adding land agreement proceeds credited against mineral properties and interest received under the gold-linked loan. The Company has included this information as management believes certain investors use this information to evaluate our performance in comparison to other gold royalty companies in the precious metal mining industry. The following is a reconciliation of Total Revenue, Land Agreement Proceeds and Interest to total revenue for the three months ended
|
|
For the three months |
|
For the six months |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
(in thousands of dollars) |
|
($) |
|
($) |
|
($) |
|
($) |
Royalty |
|
943 |
|
399 |
|
2,005 |
|
633 |
Advance minimum royalty and pre-production royalty |
|
613 |
|
25 |
|
1,443 |
|
356 |
Land agreement proceeds |
|
401 |
|
133 |
|
2,453 |
|
1,538 |
Loan interest |
|
258 |
|
— |
|
499 |
|
— |
Total Revenue, Land Agreement Proceeds and Interest |
|
2,215 |
|
557 |
|
6,400 |
|
2,527 |
Land agreement proceeds credited against mineral properties |
|
(163) |
|
(89) |
|
(1,213) |
|
(1,292) |
Loan interest |
|
(258) |
|
— |
|
(499) |
|
— |
Revenue |
|
1,794 |
|
468 |
|
4,688 |
|
1,235 |
Cash Operating Expenses
Cash Operating Expenses are determined by deducting depreciation and share-based compensation from general, administrative and project evaluation costs. The Company has included this information as management believes certain investors use this information to evaluate our performance in comparison to other gold royalty companies in the precious metal mining industry. The following is a reconciliation of Cash Operating Expenses to general, administrative and project evaluation costs.
|
|
For the three months |
|
For the six months |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
(in thousands of dollars) |
|
($) |
|
($) |
|
($) |
|
($) |
General and administrative costs |
|
(2,120) |
|
(2,590) |
|
(4,976) |
|
(5,841) |
Project evaluation costs |
|
(13) |
|
(76) |
|
(32) |
|
(249) |
General, administrative and project evaluation costs |
|
(2,133) |
|
(2,666) |
|
(5,008) |
|
(6,090) |
Depreciation |
|
19 |
|
16 |
|
39 |
|
37 |
Share-based compensation |
|
459 |
|
828 |
|
1,054 |
|
1,708 |
Cash Operating Expenses |
|
(1,655) |
|
(1,822) |
|
(3,915) |
|
(4,345) |
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