Gold Royalty Q2 2026 Earnings Report

Gold Royalty EPS Results

• Actual EPS: $0.01
• Consensus EPS: $0.01
• Beat/Miss: Beat by +$0.00
• One Year Ago EPS: N/A

Gold Royalty Revenue Results

• Actual Revenue: $7.93 million
• Expected Revenue: $8.34 million
• Beat/Miss: Missed by -$409.00 thousand
• YoY Revenue Growth: N/A

Gold Royalty Announcement Details

• Quarter: Q2 2026
• Date: 8/5/2026
• Time: After Market Closes
• Conference Call Date: Thursday, August 6, 2026
• Conference Call Time: 11:00AM ET

Gold Royalty (NYSEAMERICAN:GROY) Corp is a precious metals royalty and streaming company that focuses on acquiring and managing royalty interests in gold, silver and other metal assets. The company provides upfront funding to mining operators in exchange for a percentage of future metal production, offering an alternative financing model that can reduce capital requirements and accelerate development timelines for mining projects.

The firm’s diversified portfolio spans royalty and stream agreements across the Americas, with interests in operating mines, development‐stage assets and advanced exploration projects. By holding non‐dilutive royalty interests, Gold Royalty gains exposure to production upside while limiting downside risks associated with direct mine ownership and operating costs. Its holdings include royalties on ounces produced and net smelter returns on a range of precious and base metal properties.

Founded in 2020 as a spin-out from an established gold producer’s existing royalty portfolio, Gold Royalty launched with a base of high-quality assets and immediately began expanding through accretive royalty acquisitions and organic royalty creation. The company is headquartered in Vancouver, British Columbia, and maintains a corporate office in Toronto, supporting its deal origination and asset management activities across North, Central and South America.

Gold Royalty’s leadership team brings together professionals with extensive experience in mining finance, geology and operations. The company’s management prioritizes disciplined asset selection and active portfolio stewardship, aiming to deliver sustainable growth in royalty revenue and value for long-term shareholders.

Gold Royalty Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record first-half results: Revenue, land agreement proceeds and interest more than doubled to $17.3 million, gold-equivalent ounces rose 40% to 3,677, and adjusted EBITDA increased 212% to $12.6 million.
• Positive Sentiment: Strong financial flexibility: Gold Royalty ended the quarter with $11.3 million of cash, no debt and an undrawn $150 million credit facility, supporting self-funded growth and potential acquisitions. Management is also considering a capital-return policy.
• Positive Sentiment: The company reiterated its 2026 guidance of 7,500–9,300 GEOs and expects heavier second-half production as Vareš and County Line ramp up, with additional potential growth from Borden, Côté and Pedra Branca.
• Positive Sentiment: Organic growth pipeline remains substantial: Management expects portfolio production to reach 28,000–34,000 GEOs by 2030, while near-term catalysts include first production at Ren, Vareš reaching commercial production, and studies or expansions at Borborema, Côté and Granite Creek.
• Neutral Sentiment: Management continues to pursue acquisitions, including recent royalties on Barrick’s Ren project and Nevada properties, but said competition has compressed returns on larger deals and emphasized a disciplined, accretive approach.

Presentation

[Operator]

Welcome to the Gold Royalty Corp's second quarter 2026 results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to David Garofalo, Chair and CEO. Please go ahead.

[David Garofalo, Chair and CEO at Gold Royalty]

Thank you, operator. Good morning, ladies and gentlemen, thank you for participating in today's call to review our second quarter 2026 results. Please note for those not currently on the webcast, a presentation accompanying this conference call is available on the presentations page of our website. Some of the commentary in today's call will include forward-looking statements, I would direct everyone to review slide two of the presentation, which includes important cautionary notes. All dollar values in today's call are expressed in U.S. dollars unless otherwise noted. Speaking alongside me this morning will be our President, John Griffith, Andrew Gubbels, Chief Financial Officer, and Jackie Przybylowski, Vice President, Capital Markets and Sustainability. For the first quarter in several years, the gold price was down, falling by 13%, or nearly $600 per ounce in the second quarter of 2026.

[David Garofalo, Chair and CEO at Gold Royalty]

However, to put this price movement in the proper perspective, the commodity was still up strongly year-over-year by nearly 18%, or over $700 per ounce. Reflecting the risk off sentiment that has prevailed in our sector since the onset of the Iran war, gold mining equities levered to gold fared even worse than the commodity price. The GDX and the GDXJ, VanEck Gold Miners and Junior Gold Miners ETFs each fell 18% in the second quarter. Gold Royalty is a small cap and liquid stock which has outperformed our peers through 2025, was down 23%. This downward movement in the gold price equities and in our share price in particular, are severely overdone and reflect neither the fundamentals of the commodity nor those of the robust and accelerating growth of Gold Royalty's business. All the key drivers for gold remain in place.

[David Garofalo, Chair and CEO at Gold Royalty]

Continued government fiscal deficits, elevated government spending, and persistent inflationary pressures have the potential to further erode the purchasing power of the U.S. dollar and other fiat currencies. In this environment, we believe gold remains well-positioned as a store of value and is expected to be driven vastly higher from increased investor and Central Bank demand. The improved outlook for gold and the growth Gold Royalty Corp is experiencing from our world-class portfolio will act as a tailwind for gold equities and in particular for our share price. Unlike the gold miners, we have no inflationary pressures weighing on our operating margins. The increasing cost for oil, fuel, and other petroleum-derived products such as explosives, which have impacted operations this year, will continue to be fully borne by our operating partners, allowing our shareholders to enjoy unmitigated leverage to the gold price.

[David Garofalo, Chair and CEO at Gold Royalty]

One of the great features of our royalty model is that we are insulated from most sources of cost inflation. NSR royalties are royalties on revenues and are not impacted by mine site operating costs, nor do they have fixed or variable payments back to the operators. Nearly all of our royalties are NSR royalties, which gives us strong margins even compared with our royalty and streaming peers. The data in slide five show our strong operating margins versus peers, and we note that our margins continue to improve as we continue to realize our peer-leading revenue growth over the next few years. To be clear, our operating costs are essentially fixed. Every dollar of revenue growth has and will continue to fall right to the bottom line. Our operating margin is projected to continue to grow over the ensuing quarters and years.

[David Garofalo, Chair and CEO at Gold Royalty]

Our portfolio, which is weighted at 92% gold, is highly leveraged to gold prices and is poised to benefit from the expected improved outlook for gold that we have already discussed. With strong gold growth in all key production and financial results expected over the next five years in peer-leading trading liquidity, we are poised to outperform both gold producer equities and our royalty peers. Turning to the results for the quarter. The second quarter was another strong one for Gold Royalty. We have reported record results for the half year ended June 30th, with a more than doubling or 116% increase in total revenue, land agreement proceeds and interest to $17.3 million, and an over 40% increase in gold equivalent ounces to 3,677 ounces, and a more than tripling or 212% increase in adjusted EBITDA to $12.6 million, as Andrew will go through in more detail in a few moments.

[David Garofalo, Chair and CEO at Gold Royalty]

We also continue to be very optimistic about our outlook for organic growth for the second half of 2026, as Jackie will discuss shortly, and remain on track to meet our previously disclosed full year production guidance of 7,500-9,300 GEOs. John will also lead you through the steady progress we are making in business development, as we added a second royalty on Barrick's REN project in June, and two additional royalties subsequent to quarter end to complement the consistent creation of cost-free royalties from our royalty generator model. These are in addition to two major acquisitions completed since late last year of the Pedra Branca and additional Borborema royalties. As a reminder, we published our updated integrated report, the combined asset handbook and sustainability report. You can find this report under the portfolio integrated reports sections of our website on goldroyalty.com.

[David Garofalo, Chair and CEO at Gold Royalty]

We also hosted Gold Royalty's annual Capital Markets Day in the second quarter, where we discussed in detail our exciting organic growth already fully bought and paid for, our continued disciplined approach to accretive growth, and the high quality of assets in our portfolio. For those of you who are interested in learning more about our royalty generator model, Jerry Baughman took a deep dive into the royalty generator model and the opportunities we are seeing. We were joined by representatives of CoreX, DPM, and Orla to review some of the most exciting assets in our portfolio. A replay of the June 18th event can be found in the investors and events section of our website. I will now pass the call over to our CFO, Andrew Gubbels, to discuss the financial results for the quarter and the year to date.

[Andrew Gubbels, CFO at Gold Royalty]

Thanks, Dave. As Dave mentioned, we're pleased to report new records for revenue and adjusted EBITDA in the first half of 2026. Specific to the second quarter, total revenue, land agreement proceeds and interest was $7.9 million, translating to 1,757 GEOs in the quarter. Adjusted EBITDA was $5.6 million, more than doubling from the $2.4 million in the comparable quarter in 2025. Our balance sheet also remains strong. We exited the second quarter with over $11.3 million of cash, no debt, and a fully undrawn $150 million credit facility. As we continue to generate cash, our portfolio is expected to generate consistent positive free cash flow, positioning Gold Royalty well to self-fund its business going forward. With a clean balance sheet, we now have the flexibility to execute our long-term strategy.

[Andrew Gubbels, CFO at Gold Royalty]

Our current intent is to maintain a modest cash balance and to allocate additional cash generated from operations towards growth opportunities where appropriate. As our cash flows continue to grow, a capital return policy is actively being considered for our Board of Directors and will be announced in due course. I will now pass the call to John Griffith to review our recent growth transactions.

[John Griffith, President at Gold Royalty]

Thanks, Andrew. We have balance sheet and undrawn borrowing capacity to make meaningful acquisitions, potentially as large as $200 million and larger in partnership with Taurus under our cooperation agreement. Competition for larger transactions, especially with near-term cash flow prospects in good jurisdictions and with great operators, has been robust, negatively impacting implied returns. It is with this backdrop that we've remained disciplined in our pursuits of value-enhancing accretive transactions. That is not to suggest the potential pipeline is not robust. We continue to pursue a significant number of exciting opportunities. We maintain a deep pipeline of potential transactions to drive growth beyond our already peer-leading organic growth. We continue to be active on smaller transactions as well. In June and July, we made two separate acquisitions.

[John Griffith, President at Gold Royalty]

The first was an additional 0.1875% NSR royalty on the REN project, operated by Barrick, and jointly owned by Barrick and Newmont under the Nevada Gold Mines joint venture. This royalty, which we acquired for $6.25 million, is in addition to the existing 1.5% NSR and 3.5% NPI royalties that we already hold. Barrick continues to expect that REN will achieve first production by year-end and will ramp up to its full 140,000 ounces per year production run rate by 2027 year-end. The second transaction was announced subsequent to the end of the second quarter on July 13. We acquired two Nevada royalties in that transaction, a 2% NSR on the Sterling property operated by AngloGold Ashanti, located south of its Arthur project, previously known as Expanded Silicon, and a 0.5% NSR on portions of Granite Creek operated by i-80 Gold.

[John Griffith, President at Gold Royalty]

This Granite Creek royalty covers portions of the Felix and Blue Bell pits. Neither Felix nor Blue Bell are included in the proposed mine sequence over the initially envisaged eight and a half year mine life at the Granite Creek open pit as per the March 2025 43-101 PEA study. These deposits do represent longer-term optionality to us. I'll now pass the call to Jackie Przybylowski to review our guidance and key catalysts underpinning our peer-leading organic growth.

[Jackie Przybylowski, VP of Capital Markets and Sustainability at Gold Royalty]

Thanks, John. Looking at our portfolio in more detail, as David noted, we reported 1,757 gold equivalent ounces in the second quarter of 2026 3,677 GEOs in the first half, or 44% of the midpoint of our guidance range of 7,500-9,300 GEOs in 2026. We're already very encouraged with this result because it's better than the 40% first-half weighting that we were expecting for this year. We continue to expect that volumes will be more heavily weighted to the second half of the year as Vareš and County Line ramp up to their full production run rates through the year, and as we could see production growth at Borden, Côté, and Pedra Branca. Finally, while it's not factored into our guidance, the rock mass movement at the Canadian Malartic Barnat pit could bring forward processing and sale of stockpiled material under our royalty coverage.

[Jackie Przybylowski, VP of Capital Markets and Sustainability at Gold Royalty]

Just a quick reminder that our 2026 guidance was set at $5,150 per ounce gold price assumption for the full year. Lower gold prices would work in our favor as conversion of the land agreement proceeds and interest and conversion of revenue from copper and other metals would translate to higher GEO values. Please see our March 18th, 2026 press release for a table showing the sensitivity of our guidance to gold prices. In reiterating John's comment from earlier, Gold Royalty expects production to grow to 28,000 to 34,000 GEOs by 2030, or approximately six times our actual 2025 result from assets that are already fully bought and paid for in our portfolio. Our extensive portfolio continues to offer exciting news flow and catalysts, and we have a number of exciting asset updates in our earnings report.

[Jackie Przybylowski, VP of Capital Markets and Sustainability at Gold Royalty]

I'll just highlight a few on this call that we're expecting in the second half. First, DPM Metals has restarted the Vareš mine, on which we have a stream on all copper produced. The operator expects to achieve commercial production by the end of September and full production run rate by year-end 2026. Second, first production at Ren, jointly owned by Barrick and Newmont, is expected by year-end. Third, Equinox Gold continues to plan to start construction on South Railroad in mid-2026, pending receipt of final permits, and the mine could be in production in late 2027 or early 2028. We hold a 0.44% NSR on South Railroad. A study to double plant capacity at Aura Minerals' Borborema Project to 4 million tons per year is expected to be completed in the third quarter this year.

[Jackie Przybylowski, VP of Capital Markets and Sustainability at Gold Royalty]

An updated mine plan to reflect the integration of IAMGOLD's Côté and Gosselin zones at Côté in Q4 2026. While we don't have any exposure to Gosselin in our royalty coverage, pushback of the Côté pit wall to accommodate a super pit design could add additional material from our zones five and seven coverage into the mine plan. A feasibility study for i-80 Gold's Granite Creek underground is expected in the third quarter this year. A pre-feasibility study by First Majestic Silver on a Jerritt Canyon restart is expected to be completed in Q4. Finally, Shaft number two technical evaluation at Canadian Malartic's Odyssey project is to be completed by Agnico Eagle also in the fourth quarter this year. Please see our earnings release for additional asset updates. With over 250 assets in our portfolio, we continue to expect a steady stream of exciting positive news flow.

[Jackie Przybylowski, VP of Capital Markets and Sustainability at Gold Royalty]

I'll pass the floor back to Dave for closing remarks.

[David Garofalo, Chair and CEO at Gold Royalty]

Thank you, Jackie. There's indeed lots to get excited about as you look across our portfolio and the various high-quality assets ramping up and entering production. We continue to see compelling upside to our share price as our portfolio assets continue to develop as the market gives us credit for this organic growth. Our valuation could be further boosted by accretive growth, we emphasize that we will remain patient and disciplined as we consider any acquisitions, as we review our capital allocation options going forward. We continue to prioritize accretive growth as always. As we continue to build cash, we view a modest capital return as a signal to the market that we will remain disciplined on our growth and that we have matured as a company.

[David Garofalo, Chair and CEO at Gold Royalty]

We reached first positive free cash flow in mid-2025. We expect to continue to strengthen our balance sheet with higher GEO volumes, stronger gold prices, and lower costs as we've eliminated interest costs, and we continue to rationalize our G&A. Thank you everyone for tuning in to the earnings call. We'll now open up the call to Q&A.

[Operator]

We will now begin the question and answer session. To ask a question, you may press star then one on your touch tone phone. If you are using a speakerphone, please pick up the handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw the question, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question comes from Heiko Ihle with H.C. Wainwright. Please go ahead.

[Analyst at H.C. Wainwright]

Hi, David, it's Kay stepping in for Heiko. Congrats on the successful quarter and for taking our questions.

[David Garofalo, Chair and CEO at Gold Royalty]

Thank you.

[Analyst at H.C. Wainwright]

First question, you still have a fairly wide range in your guidance, 7,500-9,300 GEOs for the year. I assume we're going to see this range narrowed with the next quarter. Building on that, which assets are you watching the most? In turn, I guess, which ones should we be watching the most that could get you to either end of the guidance range?

[David Garofalo, Chair and CEO at Gold Royalty]

Yeah. Well, thanks for the question. I'll pass it on to Jackie to address.

[Jackie Przybylowski, VP of Capital Markets and Sustainability at Gold Royalty]

Yeah. Thanks, Dave. Thanks, Kay. Good to hear from you. We've kept the guidance range as is. I think there's still a lot of time left in the year, I would say, a lot of things can happen. One thing that we're definitely watching for would be the ramp-up of certain assets that are starting production. Vareš is probably the best example. That's probably the most meaningful example. DPM, since it's taken over the operation of Vareš, has done a tremendous job, so we're very optimistic that Vareš could meet or exceed the guidance that DPM has given. In addition, because that's a copper stream, it will also have an impact from the commodity prices, the relative commodity prices when we're calculating gold equivalent ounces. The relative copper and gold price movements will certainly make a difference there as well.

[Jackie Przybylowski, VP of Capital Markets and Sustainability at Gold Royalty]

CoreX is another one that, because it's a fairly new asset in our portfolio, we're still sort of understanding the cadence of that operation. Fairly new to CoreX as well, as it ramps up the Pedra Branca operation to full run rate as it optimizes things like fleet utilization. We're certainly watching what CoreX can do at Pedra Branca. Again, very optimistic that it could meet or exceed expectations at that asset. Unfortunately, we don't have as much visibility given that CoreX is a private company. We're watching a number of those assets. I think narrowing guidance is something that we could look at for the third quarter, but I wouldn't necessarily guarantee that we'll do that. I think that it's still going to be very much a let's wait and see. We absolutely want to make sure we do hit our guidance range this year.

[Jackie Przybylowski, VP of Capital Markets and Sustainability at Gold Royalty]

Giving ourselves a bit more room to play with is helpful as we get closer to the end of the year.

[Analyst at H.C. Wainwright]

Thanks, Jackie. That was really helpful. Speaking of Vareš, would you mind walking us through your longer-term views on copper and gold? Obviously, the name of the company insinuates a pretty strong favor for gold, but just so many growing use cases for copper these days. Should we be shocked to have your firm maybe take a bit more of a focus towards copper over the intermediate or longer term?

[David Garofalo, Chair and CEO at Gold Royalty]

I think it would only be in the context of precious bearing polymetallic deposits where we have particular expertise. If you look at our board of management, we've come from mine development and operating backgrounds with a particular emphasis on gold-bearing VMSs and copper-gold porphyries in our operating history. In the context of looking at those types of precious metal-bearing deposits, if we end up with significant copper exposure, we're very comfortable bringing that into the portfolio.

[Analyst at H.C. Wainwright]

Thank you, David. Really helpful. I'll hop back into queue. Thank you very much.

[David Garofalo, Chair and CEO at Gold Royalty]

Thank you.

[Operator]

Again, if you have a question, please press star then one. At this time, there are no further questions. I would like to turn the call back over to David Garofalo for any closing remarks.

[David Garofalo, Chair and CEO at Gold Royalty]

Well, thank you everybody for participating. I know it's a busy day with a lot of companies reporting. If you have any follow-up questions, please don't hesitate to reach out to Jackie or myself or any of our team at your leisure.

[Operator]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• David Garofalo, Chair and CEO
• Andrew Gubbels, CFO
• John Griffith, President
• Jackie Przybylowski, VP of Capital Markets and Sustainability

Analysts

• Analyst at H.C. Wainwright