GOLD ROYALTY REPORTS 2023 FINANCIAL AND OPERATING RESULTS AND FORECASTS APPROXIMATE 100% GROWTH IN REVENUE IN 2024 DRIVEN BY CORNERSTONE ROYALTIES ENTERING PRODUCTION
The following table sets forth selected financial information for the three and full year ended
|
|
For three months |
|
For the year ended |
||||
|
|
December |
|
December |
|
December |
|
December |
(in thousands of dollars, except per share and GEO amounts) |
|
($) |
|
($) |
|
($) |
|
($) |
Revenue |
|
1,016 |
|
582 |
|
3,048 |
|
3,993 |
Net loss |
|
(19,360) |
|
(2,204) |
|
(26,756) |
|
(12,709) |
Net loss per share, basic and diluted |
|
(0.13) |
|
(0.02) |
|
(0.18) |
|
(0.10) |
Operating cash flows before movements in working capital |
|
(995) |
|
(2,315) |
|
(5,049) |
|
(9,604) |
Non-IFRS and Other Measures |
|
|
|
|
|
|
|
|
Total Revenue, Land Agreement Proceeds and Interest* |
|
1,319 |
|
1,131 |
|
5,216 |
|
5,837 |
Cash Operating Expenses* |
|
(2,017) |
|
(2,940) |
|
(8,004) |
|
(12,580) |
Adjusted Net Earnings/(Loss)*(1) |
|
935 |
|
(2,824) |
|
(3,965) |
|
(11,254) |
Adjusted Net Earnings/(Loss) Per Share, basic and diluted* |
|
0.01 |
|
(0.02) |
|
(0.03) |
|
(0.08) |
Total Gold Equivalent Ounces ("GEOs") |
|
667 |
|
653 |
|
2,703 |
|
3,204 |
(1) Adjusted Net Earnings for the year and quarter ended |
* See Non-IFRS Measures below.
For further detailed information, please refer to the Company's consolidated financial statements and Annual Report on Form 20-F for the year ended
*Adjusted Net Earnings/(Loss) Per Share, Total Revenue, Land Agreement Proceeds and Interest, GEOs, and Cash Operating Expenses are non-IFRS measures and should not be considered in isolation or as a substitute for analysis of the Company's results under IFRS. See "Non-IFRS Measures" below for further information. |
2023 Highlights and 2024 Outlook:
- The Company currently forecasts between approximately 5,000 and 5,600 GEOs* in 2024, based upon the current disclosed plans of the underlying operators, which equates to approximately
$10.0 million to$11.2 million in Total Revenue, Land Agreement Proceeds and Interest at a gold price of$2,000 per ounce. If achieved, this would represent an increase in GEOs of over 100% compared to 2023. Cash Operating Expenses are expected to remain essentially unchanged in 2024. Taken together, this would lead to positive operating cash flow in 2024. - Revenue was
$3.0 million and Total Revenue, Land Agreement Proceeds and Interest* was$5.2 million (2,703 GEOs) for 2023, which was slightly below guidance primarily due to the continued deferral of production at Canadian Malartic into 2024. Cash Operating Expenses* of$8.0 million were 36% lower than the prior year and within the guidance range on a total and recurring basis. - Net loss per share for the fourth quarter ended
December 31, 2023 was$0.13 , which included a non-cash impairment charge taken on select non-core assets. Adjusted Net Earnings Per Share for the fourth quarter endedDecember 31, 2023 were$0.01 compared to an Adjusted Net Loss Per Share of$0.02 in the fourth quarter of 2022. - All of the Company's core assets have demonstrated considerable progress in 2023 contributing to what we believe is industry-leading revenue growth through the end of this decade. Côté is expected to commence production imminently; Odyssey continues to ramp up and we will benefit from a full year of revenue in 2024 from our most recent acquisitions, Borborema and Cozamin.
The Company currently forecasts between approximately 5,000 and 5,600 GEOs in 2024 which equates to approximately
The Company's recurring Cash Operating Expenses are currently expected to be consistent with 2023 and the Company expects to achieve positive operating cash flow in 2024 when a number of its growth projects ramp up in production, including the long-life cornerstone mines at Côté and Odyssey and a full year of cash inflows from the recently acquired Cozamin and Borborema royalties. Cash Operating Expenses is a non-IFRS financial measure. See "Non-IFRS Measures".
The 2024 outlook regarding total GEOs is based on public forecasts, expected development timelines and other disclosure by the owners and operators of the properties underlying our interests and our assessment thereof.
On
For further information see Agnico Eagle's news release dated
Côté
For further information see IAMGOLD's news release dated
The Borborema royalty decreases to a 0.5% NSR after 725,000 oz of gold production. Subject to a buyback right of the operator, whereby a 0.5% NSR may be repurchased for
For further information see Aura's news release dated
For further information see Barrick's news releases dated
For further information see i80's news release dated
For further information see Capstone's news release dated
Our Royalty Generator Model continues to generate positive results with six new royalties added in the year ended
We currently have 29 properties subject to land agreements and 7 properties under lease generating land agreement proceeds. The model continues to incur low operating costs with only
An investor webcast will be held on
To register for the investor webcast, please use the following link: https://www.bigmarker.com/vid-conferences/Gold-Royalty-Corp-Town-Hall-Forum-Q4
A replay of the webcast will be available on the
Alastair Still,
For further information regarding the project updates regarding properties underlying the Company's interests, please refer to the disclosures of the operators thereof, including the news releases referenced herein. Disclosure relating to properties in which
Unless otherwise indicated, the technical and scientific disclosure contained or referenced in this news release, including any references to mineral resources or mineral reserves, was prepared by the project operators in accordance with Canadian National Instrument 43-101, which differs significantly from the requirements of the
Certain of the information contained in this news release constitutes "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and
We have included, in this document, certain performance measures, including: (i) Adjusted Net Earnings/(Loss) and Adjusted Net Earnings/(Loss) Per Share; (ii) GEOs; (iii) Total Revenue, Land Agreement Proceeds and Interest; and (iv) Cash Operating Expenses which are each non-IFRS measures. The presentation of such non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently.
- Adjusted Net Earnings/(Loss) and Adjusted Net Earnings/(Loss) Per Share
Adjusted Net Earnings/(Loss) is calculated by adding land agreement proceeds credited against mineral properties, adding the pre-acquisition royalty revenue received as credited against the Cozamin purchase price and deducting the following from net income: transaction related and non-recurring general administrative expenses(2), share of (income)/loss and dilution income in associate, impairment, changes in fair value of derivative liabilities, short-term investments and gold-linked loan, loss on loan modification, foreign exchange gain/(loss), other income/(expense) and land agreement proceeds credited against mineral properties. Adjusted Net Earnings/(Loss) includes recognized deferred tax recovery. Adjusted Net Earnings/(Loss) Per Share, basic and diluted have been determined by dividing the Adjusted Net Earnings/(Loss) by the weighted average number of common shares for the applicable period. We included this information as management believes that they are useful measures of performance as they adjust for items which are not always reflective of the underlying operating performance of our business and/or are not necessarily indicative of future operating results. The table below provides a reconciliation of net loss to Adjusted Net Earnings/(Loss) and Adjusted Net Earnings/(Loss) Per Share, basic and diluted for the periods indicated:
(2) Transaction related, and non-recurring general administrative expenses are a supplementary financial measure comprised of operating expenses that are not expected to be incurred on an ongoing basis. During the year ended |
|
|
For three months ended |
|
For the year ended |
||||
|
|
December |
|
December |
|
December |
|
December |
(in thousands of dollars, except per share amounts) |
|
($) |
|
($) |
|
($) |
|
($) |
Net loss |
|
(19,360) |
|
(2,204) |
|
(26,756) |
|
(12,709) |
Land Agreement Proceeds credited against mineral properties |
|
270 |
|
549 |
|
1,909 |
|
1,844 |
Pre-acquisition royalty revenue credited against Cozamin purchase price |
|
— |
|
— |
|
226 |
|
— |
Loan interest |
|
33 |
|
— |
|
33 |
|
— |
Transaction related and non-recurring administrative expenses |
|
268 |
|
115 |
|
967 |
|
1,650 |
Share of (gain)/loss in associate |
|
72 |
|
(1) |
|
(172) |
|
152 |
Dilution gain in associate |
|
— |
|
— |
|
(12) |
|
(100) |
Impairment of royalties, net of taxes |
|
19,760 |
|
— |
|
19,760 |
|
3,018 |
Change in fair value of derivative liabilities |
|
— |
|
(278) |
|
(242) |
|
(4,776) |
Change in fair value of gold-linked loan |
|
(172) |
|
— |
|
(172) |
|
— |
Change in fair value of short-term investments |
|
45 |
|
(1,060) |
|
264 |
|
51 |
Change in fair value of embedded derivatives |
|
(30) |
|
— |
|
(30) |
|
— |
Gain on loan modification |
|
— |
|
— |
|
249 |
|
(316) |
Foreign exchange (gain)/loss |
|
55 |
|
42 |
|
132 |
|
11 |
Other income |
|
(6) |
|
13 |
|
(121) |
|
(79) |
Adjusted Net Earnings/(Loss) |
|
935 |
|
(2,824) |
|
(3,965) |
|
(11,254) |
Weighted average number of common shares |
|
145,086,763 |
|
143,913,069 |
|
144,729,662 |
|
136,803,625 |
Adjusted Net Earnings/(Loss) Per Share, basic and diluted |
|
0.01 |
|
(0.02) |
|
(0.03) |
|
(0.08) |
- GEOs
Total GEOs are determined by dividing Total Revenue, Land Agreement Proceeds and Interest by the average gold prices for the applicable period:
(in thousands of dollars, except Average Gold Price/oz and GEOs) |
|
Average Gold |
|
Total |
|
GEOs |
For three months ended |
|
1,877 |
|
1,759 |
|
937 |
For three months ended |
|
1,874 |
|
2,024 |
|
1,080 |
For three months ended |
|
1,729 |
|
923 |
|
534 |
For three months ended |
|
1,731 |
|
1,131 |
|
653 |
For year ended |
|
1,822 |
|
5,837 |
|
3,204 |
|
|
|
|
|
|
|
For three months ended |
|
1,889 |
|
1,970 |
|
1,043 |
For three months ended |
|
1,978 |
|
557 |
|
282 |
For three months ended |
|
1,927 |
|
1,370 |
|
711 |
For three months ended |
|
1,977 |
|
1,318 |
|
667 |
For year ended |
|
1,929 |
|
5,215 |
|
2,703 |
- Total Revenue, Land Agreement Proceeds and Interest
Total Revenue, Land Agreement Proceeds and Interest are determined by adding land agreement proceeds credited against mineral properties, the pre-acquisition royalty revenue credited against Cozamin purchase price to total revenue and the gold-linked loan interest. We have included this information as management believes certain investors use this information to evaluate our performance in comparison to other gold royalty companies in the precious metal mining industry. Below is a reconciliation of our Total Revenue, Land Agreement Proceeds and Interest to total revenue for the three and year ended
|
|
For three months ended |
|
For the year ended |
||||
|
|
December |
|
December |
|
December |
|
December |
(in thousands of dollars) |
|
($) |
|
($) |
|
($) |
|
($) |
Royalty |
|
758 |
|
435 |
|
1,964 |
|
3,037 |
Pre-acquisition royalty revenue credited against Cozamin purchase price |
|
— |
|
— |
|
226 |
|
— |
Advance minimum royalty and pre-production royalty |
|
137 |
|
48 |
|
646 |
|
492 |
Land agreement proceeds |
|
391 |
|
648 |
|
2,347 |
|
2,308 |
Loan interest |
|
33 |
|
— |
|
33 |
|
— |
Total revenue and land agreement proceeds |
|
1,319 |
|
1,131 |
|
5,216 |
|
5,837 |
Land agreement proceeds credited against mineral properties |
|
(270) |
|
(549) |
|
(1,909) |
|
(1,844) |
Pre-acquisition royalty revenue credited against Cozamin purchase price |
|
— |
|
— |
|
(226) |
|
— |
Loan interest |
|
(33) |
|
— |
|
(33) |
|
— |
Revenue |
|
1,016 |
|
582 |
|
3,048 |
|
3,993 |
- Cash Operating Expenses
Cash Operating Expenses are determined by adding the impact of non-cash expenses, revenue, other income and tax expenses or recovery to net loss. We have included this information as management believes certain investors use this information to evaluate our performance in comparison to other gold royalty companies in the precious metal mining industry. The table below provides a reconciliation of net loss to Cash Operating Expenses.
|
|
For three months ended |
|
For the year ended |
||||
|
|
December |
|
December |
|
December |
|
December |
(in thousands of dollars) |
|
($) |
|
($) |
|
($) |
|
($) |
Net loss |
|
(19,360) |
|
(2,204) |
|
(26,756) |
|
(12,709) |
Revenue |
|
(1,016) |
|
(582) |
|
(3,048) |
|
(3,993) |
Other income |
|
(6) |
|
13 |
|
(121) |
|
(79) |
Depletion |
|
249 |
|
216 |
|
943 |
|
1,685 |
Depreciation |
|
20 |
|
29 |
|
70 |
|
92 |
Share-based compensation |
|
536 |
|
1,078 |
|
2,806 |
|
3,323 |
Share of (gain)/loss in associate |
|
72 |
|
(1) |
|
(172) |
|
152 |
Dilution gain in associate |
|
— |
|
— |
|
(12) |
|
(100) |
Impairment of royalties |
|
22,379 |
|
— |
|
22,379 |
|
3,821 |
Change in fair value of derivative liabilities |
|
— |
|
(278) |
|
(242) |
|
(4,776) |
Change in fair value of gold-linked loan |
|
(172) |
|
|
|
(172) |
|
51 |
Change in fair value of short-term investments |
|
45 |
|
(1,060) |
|
264 |
|
— |
Change in fair value of embedded derivatives |
|
(30) |
|
— |
|
(30) |
|
— |
Loss on loan modification |
|
— |
|
— |
|
249 |
|
(316) |
Foreign exchange (gain)/loss |
|
55 |
|
(1) |
|
132 |
|
(32) |
Interest expense |
|
814 |
|
285 |
|
1,839 |
|
918 |
Tax recovery (expenses) |
|
(5,603) |
|
(435) |
|
(6,133) |
|
(617) |
Cash Operating Expenses |
|
(2,017) |
|
(2,940) |
|
(8,004) |
|
(12,580) |
View original content to download multimedia:https://www.prnewswire.com/news-releases/gold-royalty-reports-2023-financial-and-operating-results-and-forecasts-approximate-100-growth-in-revenue-in-2024-driven-by-cornerstone-royalties-entering-production-302101900.html
SOURCE