Gold Royalty Q2 Earnings Call Highlights

Gold Royalty reported $17.3 million in revenue, land agreement proceeds and interest, up 116% year over year, while adjusted EBITDA surged 212% to $12.6 million. GEOs increased more than 40% to 3,677. The company reaffirmed its forecast of 7,500–9,300 GEOs, with production expected to accelerate in the second half as Vareš and County Line ramp up. Gold Royalty projects 28,000–34,000 GEOs by 2030 from its existing portfolio. Gold Royalty ended the quarter with $11.3 million in cash, no debt and an undrawn $150 million credit facility. Upcoming catalysts include Vareš reaching commercial production, REN’s expected first production by year-end, and studies at Borborema, Granite Creek, Jerritt Canyon and Odyssey.

Gold Royalty NYSEAMERICAN: GROY reported record first-half revenue and adjusted EBITDA for 2026, while reiterating its full-year production guidance and outlining expected catalysts across its portfolio of more than 250 assets. For the six months ended June 30, the company reported total revenue, land agreement proceeds and interest of $17.3 million, up 116% from the comparable period a year earlier. Gold equivalent ounces, or GEOs, increased more than 40% to 3,677, while adjusted EBITDA rose 212% to $12.6 million, Chair and CEO David Garofalo said during the company’s second-quarter earnings call. Second-quarter total revenue, land agreement proceeds and interest totaled $7.9 million, representing 1,757 GEOs. Adjusted EBITDA for the quarter was $5.6 million, compared with $2.4 million in the second quarter of 2025, according to Chief Financial Officer Andrew Gubbels.

Gubbels said Gold Royalty ended the second quarter with more than $11.3 million in cash, no debt and a fully undrawn $150 million credit facility. He said the company expects its portfolio to generate consistent positive free cash flow and intends to maintain a modest cash balance while directing additional operating cash toward growth opportunities when appropriate. The company is also considering a capital-return policy for its board, Gubbels said, adding that any such policy would be announced later. Garofalo said Gold Royalty reached positive free cash flow in mid-2025 and expects its balance sheet to strengthen as GEO volumes increase, interest costs remain eliminated and general and administrative expenses are rationalized. Garofalo emphasized the company’s focus on net smelter return, or NSR, royalties, which are generally based on revenue rather than mine-site operating costs. He said the royalty model leaves Gold Royalty insulated from many forms of operating cost inflation borne by mine operators.

Gold Royalty maintained its 2026 guidance of 7,500 to 9,300 GEOs. Vice President of Capital Markets and Sustainability Jackie Przybylowski said first-half production represented 44% of the midpoint of that guidance range, above the company’s expected 40% first-half weighting. The company expects volumes to be more heavily weighted to the second half as the Vareš and County Line operations ramp toward full production rates. Gold Royalty also cited potential production growth at Borden, Côté and Pedra Branca. Przybylowski said processing and sale of stockpiled material from the Canadian Malartic Barnat pit could provide additional upside, though it was not included in guidance. When asked whether the range could be narrowed after the third quarter, Przybylowski said the company would consider it but did not guarantee an update. She iden...