Mining Corp (ticker) anticipates an increase in production during the latter half of the year due to ongoing expansions at several of its mining sites. Newly initiated operations at Cote, Vare, and Borborema are expected to enhance output as they progress toward full production capacity by 2025.
The company foresees continued revenue growth driven by robust commodity prices, which are expected to positively impact its cash flow. This financial boost will come from royalties at key sites such as Canadian Malartic, Cote, Borborema, Cozamin, and Borden, in addition to the Vare copper stream.
With operations scaling up and favorable market conditions, Mining Corp is strategically positioned to strengthen its financial performance in the upcoming years.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Gold Royalty Corp (GROY, Financial) is $3.26 with a high estimate of $5.75 and a low estimate of $2.25. The average target implies an upside of 117.22% from the current price of $1.50. More detailed estimate data can be found on the Gold Royalty Corp (GROY) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Gold Royalty Corp's (GROY, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Gold Royalty Corp (GROY, Financial) in one year is $9.83, suggesting a upside of 555.33% from the current price of $1.5. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Gold Royalty Corp (GROY) Summary page.
GROY Key Business Developments
Release Date: March 20, 2025
- Total Revenue (Q4 2024): $3.8 million, a 192% increase from Q4 2023.
- Total Revenue (Full Year 2024): $12.8 million, a 146% increase from 2023.
- Operating Cash Flows (2024): Positive $2.5 million.
- Adjusted EBITDA (2024): Positive $4.8 million.
- Gold Equivalent Ounces (GEOs) Forecast (2025): 5,700 to 7,000 GEOs, a midpoint increase of 16% from 2024.
- Five-Year GEOs Outlook (2029): 23,000 to 28,000 GEOs, over 360% increase from 2024.
- Land Agreement Proceeds (2025): Expected $1.6 million, approximately 600 GEOs at the consensus gold price.
- Gold Price Assumption (2025): $2,668 per ounce.
- Copper Price Assumption (2025): $4.23 per pound.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gold Royalty Corp (GROY, Financial) reported record revenues and positive operating cash flows for 2024, demonstrating significant growth.
- The company expects to receive between 5,700 and 7,000 GEOs in 2025, with a five-year outlook projecting 23,000 to 28,000 GEOs by 2029, marking a 360% increase from 2024.
- Strong financial performance was noted with a 192% increase in revenue for Q4 2024 compared to Q4 2023, driven by the ramp-up of key assets and strong commodity prices.
- The company achieved its first full year of positive operating cash flows and adjusted EBITDA in 2024, indicating improved financial health.
- Gold Royalty Corp (GROY) has a diversified portfolio with royalties on large-scale, long-life mines, providing significant optionality and growth potential.
Negative Points
- Despite strong performance, Gold Royalty Corp (GROY) continues to trade at a discount relative to peers, indicating potential market undervaluation.
- The company faces challenges in maintaining a low debt level, with plans to prioritize debt repayment as a key capital allocation strategy.
- Some assets, such as Canadian Malartic, are expected to have relatively flat production, which may impact overall growth projections.
- The company is conservative in its guidance, using the lower end of operator guidance for assets still ramping up, which may lead to lower market expectations.
- There is a focus on later-stage operating assets, which are few and far between, potentially limiting immediate acquisition opportunities.
