Gold Royalty (NYSEAMERICAN:GROY) used its fourth-quarter and full-year 2025 results call to highlight a record financial year, a strengthened balance sheet following equity financing and debenture conversion, and a step-up in near-term production guidance driven by recently acquired cash-flowing royalties.
Record quarterly and full-year results
Chairman and CEO David Garofalo said the company reached an “important inflection point” in 2025, reporting a third consecutive quarter of positive free cash flow alongside another quarter of record revenue, adjusted EBITDA, and operating cash flow.
For the full year ended 2025, Gold Royalty reported $17.8 million in total revenue, land agreement proceeds, and interest and $9.8 million of adjusted EBITDA. Management said these figures represented increases of 38% and 104%, respectively, compared with 2024, attributing the results to higher cash flows from assets added in recent years and continued focus on low operating costs.
Balance sheet reset and liquidity position
Management emphasized improved financial flexibility at year-end. Garofalo said the company ended 2025 with no debt or convertible debentures, over $12 million in cash, and a fully undrawn credit facility. He also noted the company had outstanding common share purchase warrants that “continue to be deeply in the money.”
Gubbels said liquidity improved meaningfully following the equitization of $40 million in convertible debentures held by Queen’s Road Capital and Taurus Funds Management in November, as well as an upsized $103.5 million equity raise completed in December. He said the financing funded the $70 million Pedra Branca acquisition, repaid the outstanding balance previously drawn on the revolving credit facility, added new institutional investors, and left the company in a positive net cash position at year-end.
Looking ahead, Gubbels said Gold Royalty amended and upsized its credit facility to $150 million in February 2026 and entered 2026 in a “very strong financial position.” He added that the company’s current intent is to maintain a modest cash balance and allocate additional operating cash toward growth opportunities while evaluating potential capital returns to shareholders in future periods.
Portfolio expansion: Pedra Branca and Borborema
Garofalo marked the company’s five-year anniversary since its IPO, noting that Gold Royalty began in March 2021 with 18 royalties on non-producing assets and no revenue. He said the portfolio now includes 258 royalties and streams, including eight cash-flowing assets.
Chief Development Officer John Griffith described the company’s recent acquisition activity, saying Gold Royalty had not announced a material asset acquisition in over a year prior to the fourth quarter, reflecting a “disciplined approach” while waiting for the right opportunities.
Griffith said the company announced the acquisition of royalties on Pedra Branca on Dec. 8, 2025. The royalties entitle Gold Royalty to 25% of net smelter returns (NSR) from gold and 2% of NSR from copper for the life of the mine. The mine in Brazil is currently operated by BHP, though Griffith noted the asset has been sold to CoreX Holding in a transaction expected to close in 2026.
After year-end, on Jan. 14, 2026, the company announced it had acquired an additional NSR royalty on Borborema. Griffith said the 1.5% NSR acquisition marked Gold Royalty’s first successful co-investment with Taurus Mining Royalty Fund, with Taurus acquiring 0.75% NSR and Gold Royalty acquiring 0.75% NSR, bringing Gold Royalty’s total interest to a 2.75% NSR plus a royalty-convertible gold-linked loan.
Griffith said both recent royalties were acquired from third parties—Pedra Branca from BlackRock and Borborema from Dundee Corporation—in “quasi-bilateral processes” with direct negotiation. He also outlined four “pillars” of growth the company continues to pursue:
- Third-party acquisitions
- Operator financings
- Corporate M&A
- The royalty generator model
2026 guidance and 2030 outlook
Vice President of Capital Markets Jackie Przybylowski reviewed the company’s guidance and longer-term outlook. Gold Royalty expects to report 7,500 to 9,300 GEO in 2026. At the midpoint, she said, that implies a 62% increase from 2025 actual production of 5,173 GEO, which includes land agreement proceeds and interest.
Przybylowski said the 2026 guidance assumes an average gold price of $5,150 per ounce and an average copper price of $5.75 per pound, which she said is consistent with consensus expectations. She added that the GEO figure has sensitivity to commodity price assumptions, noting the company receives royalties on copper at Cozamin and Pedra Branca and a copper stream from Vareš. She also said the company converted land agreement proceeds and interest paid in dollars into approximately 684 GEO in the 2026 guidance using the assumed gold price, and highlighted that the company included a sensitivity table in its press release.
For the longer term, Przybylowski said Gold Royalty expects 28,000 to 34,000 GEO in 2030, including approximately 600 GEO of land agreement proceeds and interest. At the midpoint, she said this represents a “peer leading” increase of over 490% relative to 2025 results. She emphasized that more than 70% of the growth to 2030 is tied to assets that are already “permitted, financed, and built at least to a first phase,” and that including low-risk construction of satellite deposits brings de-risked assets to over 90% of that growth.
Asset updates and Q&A: discipline, commodity focus, and warrants
In operational updates, Przybylowski said Aura Minerals signed its road relocation agreement, which “immediately unlocks mineral reserves” at Borborema and supports an expansion to 4 million tons per year from a current 2 million tons per year run rate. She also said Adriatic Metals restarted the Vareš mine and expects to reach full production run rate by year-end 2026. Additionally, she said Orla Mining released an updated feasibility study on South Railroad and expects to start construction mid-year 2026 upon receipt of final project permits, while Blackrock Silver received a Class II Air Quality and Surface Disturbance Permit and expects to receive all permits by mid-2027.
During Q&A, Griffith addressed how the company approaches M&A in a volatile geopolitical and commodity environment. He said Gold Royalty typically evaluates commodity prices on a consensus basis and remains disciplined, noting that dislocation between consensus and spot prices can lead others to accept lower returns than Gold Royalty would. On jurisdictional exposure, he said approximately 85% of the company’s net asset value is in North America and the remainder across several other jurisdictions, adding that the company has “no real pressure” to deploy capital into higher-risk geographies.
Asked about commodity exposure and a fourth-quarter tungsten asset sale, Griffith said the company remains focused on precious metals and is comfortable with larger, widely traded commodities such as copper, zinc, and nickel. He described the tungsten asset sale as opportunistic, saying the buyer was focused on building a non-precious metal, non-diversified royalty company and “was willing to pay up” for an asset that had “very low value” in Gold Royalty’s portfolio.
Garofalo also highlighted the company’s outstanding warrants, noting that as of Sept. 30, 2025, Gold Royalty had approximately 17 million share purchase warrants outstanding, each exercisable at $2.25 per share. He said the warrants trade on the NYSE American under GROY.WS and expire on May 31, 2027. The company invited investors to its Q1 2026 earnings call on May 7 and its Capital Markets Day on June 18.
About Gold Royalty (NYSEAMERICAN:GROY)
Gold Royalty 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.
