Gold Royalty Corp CEO David Garofalo recently revealed significant strategic developments for the company. Gold Royalty Corp has successfully completed its previously announced acquisition of a copper stream operated by a subsidiary of Adriatic Metals plc, located in Bosnia and Herzegovina. The Vares Stream involves 100% of the copper production from the mining area over the Rupice deposit. This acquisition includes ongoing payments equal to 30% of the London Metal Exchange (LME) spot copper price, with the effective payable copper fixed at 24.5%.
Garofalo provided further insights, noting that Adriatic has issued production guidance of 240-300 kilotons (kt) of ore to be mined from Vares in 2024, with copper grades ranging from 0.5-0.6%. Adriatic's forecasts for 2025 and 2026 are even more promising, with expectations of 750-850 kt and 800-900 kt of ore to be mined, respectively, at grades of 0.5-0.7% copper. The company also highlighted a projected mine life of 18 years, coupled with an attractive operating cost profile.
Garofalo emphasized the remarkable growth trajectory that Gold Royalty Corp is experiencing. The company has expanded from 18 development-stage royalties to 240 royalties, including 5 producing projects. In 2024, Gold Royalty Corp anticipates 160% growth in revenue, with expectations of positive free cash flow and earnings for the first time. The company projects a 60% compounded annual growth rate in revenue through the end of the decade, driven by royalties on major gold mines in North America.
These developments underscore Gold Royalty Corp's strategic focus on expanding its portfolio and enhancing its revenue streams through significant acquisitions and robust growth in its royalty assets.
