What is going on with GROY?
Gold Royalty Corp. (GROY) provided an update on certain royalties that will form part of the new Gold Royalty upon the closing of the transactions announced on September 7, 2021. Going forward, the company expects to issue royalty and asset updates to shareholders quarterly.
In addition to cash generated from the new Gold Royalty’s Project and Royalty Generator Model and marketable securities, the company will have six royalty interests on five producing mines, which include portions of the Canadian Malartic open pit, Jerritt Canyon (two royalties), Isabella Pearl, Marigold, and the Rawhide Mine.
Shares of GROY declined 1.39% to $5.34 as of Monday at 12:13 pm.
What does this mean for Gold Royalty Corp?
One of Gold Royalty's key royalty streams stems from the Jerritt Canyon mine, purchased by First Majestic for share consideration totaling $470 million and 5 million share purchase warrants on April 30, 2021. Recent drilling announced by First Majestic on July 13, 2021, successfully intersected 1.65 grams per tonne (“gpt”) gold over 76.2 meters, including 4.63 gpt gold over 7.6 meters
The company also stated that "The new Gold Royalty will have seven royalty interests on six projects that are currently under development and represent potential additional near to medium term increases in cash flow. These include the Odyssey project (Canadian Malartic), Ren Project (Carlin Complex; two royalties), Gold Rock (Pan Mine), Beaufor Mine, Beacon Mill and Lincoln Hill (Rochester Mine)."
Additionally, during the second quarter of 2021, the underground development of a mining ramp at the company's Odyssey mine continued. Approximately 402 linear meters of ramp development has been completed, which is ahead of schedule and at a lower development unit cost than anticipated.
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Gold Royalty Corp is a precious metals-focused royalty and streaming company. It offers creative financing solutions to the metals and mining industry. The company's mission is to acquire royalties, streams and similar interests at varying stages of the mine life cycle to build a balanced portfolio offering near, medium and longer-term attractive returns for investors.
