This article first appeared on GuruFocus.
Release Date: November 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Gold Royalty Corp (GROY) reported a second consecutive quarter of positive free cash flow.
The company achieved record revenue, adjusted EBITDA, and operating cash flow for the quarter.
Debt reduction is a priority, with $2 million of a revolving credit facility paid down in the third quarter and a further $5 million debt reduction subsequent to quarter end.
The company is on track to potentially be debt-free by the end of 2026.
Gold Royalty Corp (GROY) has a diversified portfolio with over 250 assets, including 7 cash-flowing assets, providing steady growth catalysts.
Production guidance for 2025 may be modestly below the previously disclosed range due to higher gold prices affecting gold equivalent ounces (GEOs) calculations.
Temporary shift from mining to development at DPM Metals’ Varres mine is expected to displace mine production activity for approximately 6 months.
The competitive landscape for transactions remains challenging with many public and private entities seeking to acquire royalties and streams.
The company is not prioritizing targeting pre-construction royalties due to an existing deep pipeline of early-stage royalties.
There is a potential short-term disruption at the Varres mine, impacting the company’s revenue stream.
Q: Can you provide more details on the recent debt repayment and future plans for debt reduction? A: (David Garofalo, Chairman and CEO) We have prioritized debt repayment, reducing our revolving credit facility by $2 million in the third quarter and an additional $5 million after quarter-end. Our goal is to be essentially debt-free by the end of 2026, leveraging our growing free cash flow and convertible debentures. This will enhance our balance sheet flexibility and support our long-term strategy.
Q: How has Tether’s acquisition of shares impacted Gold Royalty Corp? A: (John Griffith, Chief Development Officer) Tether’s acquisition of approximately 10% of our outstanding shares validates the value of our assets and business plan. We were unaware of their position before their disclosure. To protect shareholder value, our board has adopted a rights plan, details of which are in our recent press release.
Q: What are the key factors affecting your production forecast for 2025? A: (Jackie Perzbolowski, Vice President of Capital Markets) Our production forecast may be modestly below the lower end of our guidance due to higher gold prices affecting our gold equivalent ounces (GEOs) calculation and a temporary shift from mining to development at DPM Metals’ Varres mine. Despite this, we remain confident in our medium and long-term outlook.
Q: Can you elaborate on the strategic growth opportunities Gold Royalty Corp is considering? A: (John Griffith, Chief Development Officer) We are focusing on cash-flowing royalties rather than pre-construction ones, given our existing pipeline of early-stage royalties. We are also exploring acquisition opportunities from prospectors or third-party holders, especially in the current high gold price environment. Our strengthening share price and cash balance make us competitive in pursuing M&A opportunities.
Q: What is the outlook for Gold Royalty Corp’s portfolio and future growth? A: (David Garofalo, Chairman and CEO) Our diversified portfolio offers steady growth catalysts, contributing to peer-leading growth. We maintain our five-year guidance of 23,000 to 28,000 GEOs by 2029, supported by mature and brownfield operations. We will remain disciplined in acquisitions and prioritize paying down our revolving credit facility.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.