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spk02: Good morning. I'm your host, Joanne Jobin, and welcome to another Gold Royalty Town Hall Forum hosted by VidMedia. Before we start, I'd like to introduce CEO David Garofalo, John Griffiths, Chief Development Officer, and Andrew Goebbels, CFO, who will provide an update on recent financial and operating results for the company. After their presentation, I'll be delighted to moderate submitted questions from our audience. Now, a few words on the company. Gold Royalty Corp. is a precious metals focused royalty and streaming company offering creative financing solutions to the metals and mining industry. It currently has a diversified portfolio of over 190 royalties located in mining friendly jurisdictions throughout the Americas. The company's business model includes acquiring royalties, streams, and similar interests at varying stages of the mine lifecycle to build a balanced portfolio offering near, medium, and longer-term attractive returns for investors. Now, before we get started, I would like to remind you that if you do have any questions for the company, please place them into the Q&A tab at the top of your chat sections. And please ensure that you fill in the short questionnaire at the end of the presentation, as this helps us and the company communicate more effectively with you for future events. And before I turn it over to the team, please note the forward-looking statement at the beginning of this presentation. Gentlemen, the stage is yours.
spk04: Thank you, Joanne. Good morning, everybody, and welcome to John and Andrew as well, who will be presenting along with me in Andrew will be providing a highlight on the financial results for the quarter and our forward-looking projections. And John will walk us through our portfolio, a very extensive portfolio. Actually, now 216 royalties across the portfolio, heavily concentrated in the Americas, with even significant concentration in Nevada, Quebec, and Ontario, the three best countries. mining jurisdictions in the world and some of the best producing gold assets in the world. And we'll get into that in a bit more detail as we go through the presentation. But I thought I'd spend a minute talking about the rally in the gold price of late. And as we've said in the past, when we've talked about the fundamentals for gold, we've always said it's more a monetary instrument than a commodity. And really what drives gold price up and down is relative interest rates. Why? Gold as a monetary instrument has always yielded zero. Treasuries today, whether it's U.S. treasuries or whether we're looking at the European monetary instruments or in the Western world generally, are really yielding negative on a real basis, even as nominal rates are starting to go up. We're seeing inflation accelerate and inflation will continue to accelerate because central banks are dealing with a quandary in that we're seeing the monetary system, particularly financial services systems, start to collapse underneath because of all the accesses that have been introduced into the system since the credit crisis of about 15 years ago. There's been a massive expansion of money supply. and excess debt. And as interest rates go up, servicing that debt has become a significant challenge. And we've seen the evidence of that in the financial sector as we've seen banks collapse. And that's just really the beginning, the tip of the iceberg. That's the catalyst for gold. And it has been the catalyst for gold over the last... couple of months as we've seen a significant acceleration in the price as the market has started to realize that the central banks really can tighten monetary conditions significantly with undermining the financial system, undermining governments, because as we correctly pointed out, the debt levels that we've strapped on as a society since the onset of this inflation cycle and since the great financial crisis is significantly greater than it was back in the 1970s when we last experienced these types of inflation. Debt to GDP globally is at about 350%, relative to where it was in the 1970s at 100%. So what that tells you is there's very limited latitude for central banks to meaningfully tighten monetary conditions without undermining governments, corporations, and individuals, all of whom are carrying unprecedented debt levels. So while we're seeing the central banks continue to increase interest rates, and for example, the Federal Reserve has recently tightened interest rates another 25 basis points, that same Federal Reserve introduced $300 billion of new liquidity into the system to stave off bank collapses. And there's more of that to come. So they are sucking and blowing. We're starting to see central banks introduce new money supply into the system, even as they're increasing nominal interest rates. What that will serve to do is accelerate inflation. And we're going to see inflation levels unlike we haven't seen since the 1970s. And that will drive real interest rates deeper and deeper into negative territory. And the negative correlation, the negative relationship between the gold price and real interest rates is striking and dramatic. And that's why we've been consistent in saying that gold will achieve its new all-time highs of at least $3,000 an ounce. And that's on a real basis because gold back in the early 1980s in the last big inflation cycle was in excess of $800 an ounce. But if you inflation adjust that to $20, $23, that suggests us that gold could go to at least $3,000 an ounce. And that would be the real all time high. So we still have at least 50 percent upside from the current gold price levels that we're experiencing. And that will drive new capital into the gold sector. And we think significant share price appreciation. And we're starting to see the early evidence of that. Since the crisis in banking system, really, which started to manifest itself in early March, we've seen a significant outperformance in both the GDXJ and gold prices relative to the general equity markets. And that's what gold should do in these times of crises, is provide insurance against volatility in the general equity markets. So we've seen the gold price go up dramatically. There's more of that to come, and there's more volatility to come in the general equity markets as people's confidence in the economy is undermined, and as money supply continues to accelerate, inflation continues to accelerate, people will be looking for gold as a life preserver, as a protector and preserver of their savings, because inflation is insidious. It eats at our savings, whereas gold preserves savings in the face of an inflationary environment. And with that macro discussion, I'd like to pass it on to Andrew to talk about our financial results. Oh, sorry, and I should end my discussion talking about the opportunity I see in the valuations before I hand it off to Andrew to talk about our financial results. You can see that The sector is still significantly discounted. There's still been a relative significant underperformance of the gold equities relative to the gold price. And the opportunity we see with gold royalty trading at the half times NEV with an enviable portfolio of assets within the Americas and peer leading growth is a significant re-rate as we crystallize that revenue growth over the coming years. And the thing I should add, we own 216 royalties, but they're completely bought and paid for. There's no capital calls on them. So essentially, we just have to wait for that growth to come to fruition. And the value accretion on a per share basis is immense over the coming years. And the re-rate potential of our stock as we achieve that skill organically through the growth of our cash flow from an existing well-diversified portfolio within the best mining jurisdictions of the world, we think is immense and a great opportunity for our shareholders to realize upside. With that, I will pass it on to Andrew to talk about our financial results.
spk05: Thanks, Dave. You would have seen yesterday we announced our financial results for the quarter ended December 31st, 2022. With the change in our fiscal year end from September 30th to December 31st, this period will become the fourth quarter of what will be our 2022 fiscal year. In the December quarter, we continue to generate robust revenue from our portfolio, earning $1.1 million of total revenue and option proceeds for that three-month period. Now, that's an 11% increase from the same period in 2021. This is largely due to higher revenue contribution from some core royalties, such as Canadian Malartic and Borden. For fiscal 2023, we do expect total revenue and option proceeds to increase year on year. And we've put forward guidance of 5.5 to $6.5 million in total revenue and option proceeds for the year. We end the calendar year with a strong financial position as well. We have cash and available liquidity of approximately $35 million. And we're well positioned to fund our business and continue to grow the company throughout the year with this liquidity position. Finally, in fiscal 2023, we also expect recurring cash operating costs to be between $7 million and $8 million for the year. Now, this would represent a 30% decrease in recurring operating costs from the prior calendar year and reflects the evolution of our company after a fast start following the IPO and three large strategic acquisitions in our initial growth phase.
spk01: Hi, I'm Tim Bohen. When I first predicted a massive run for Tesla, before shares went from $37 all the way to $402, a lot of people thought I was crazy. Maybe it's because I don't come from Wall Street, or because nowadays certain people don't trust small town folks just like me. Yet, sure as hell, I was right. After calling Tesla at $37, anyone who listened had the chance to make 11 times their money. And today I'm going to go in public with another big call. But unlike last time, this isn't a prediction, it's already happening now. In fact, the proof is inside three groundbreaking patents. And while most people have no idea these patents exist, I've connected the dots. And today I'm going to reveal how these patents could soon help Tesla revolutionize this $23 trillion market, radically transforming your neighborhood, your streets, and your way of life. This revolution is about so much more than just self-driving cars. Instead, what Elon's pivoting Tesla towards is a market that's 1,000 times bigger. Billionaire VC Chamath Palipatia, I always mess up his name, I call him Chamath, agrees saying, this is no longer about cars, this is worth trillions of dollars. But keep in mind, this has nothing to do with SpaceX or Twitter or even Elon's Hyperloop project. Instead, this shocking pivot will likely be why Musk goes down as the most important person of our time. Based on my research, this move could wind up saving Americans $2,000 worth of extra money a year, every year going forward. With over 330 million Americans, that's countless billions of dollars in extra potential savings each year. And as you're about to see, even with a recession looming, Elon's pivot is already having a massive impact on towns and cities across the world. It's why I wouldn't be surprised to see shares of Tesla soon hit $667 a piece. In fact, ARK CEO Kathy Wood is predicting Tesla to potentially hit $1,533 a share in just a few years. That's nearly 10x upside. Could you imagine making 10x your money in a few years just from buying shares of Tesla now? It's why even in this market environment, the biggest firms on Wall Street own more than 250 billion worth of Tesla stock. Because as everyone knows, Tesla is one of those stocks where the second good news leaks out, shares can take off in a hurry. We've seen it many, many times before. But just know, if you only buy shares of Tesla, you could be missing the most lucrative part of this opportunity. That's because of these five tiny, silent partner companies I'm gonna tell you about more in a moment. Either way, you're not gonna wanna wait too long, and certainly not until July 19th, as you're about to see. because that's when I expect details could emerge that bring this story mainstream. It has to do with something most people still really don't understand about Tesla, something I've been saying all along, and that is this. Tesla is not really just a car company. Look, we all know Tesla is really good at making electric cars. In fact, this year Tesla produced its three millionth electric car. And yet the stock fell because car sales fell short of estimates. Now of course, in the current market environment, most stocks have gotten crushed. But let me ask you a question. If you're not really just a car company, which in a moment I'm convinced you'll agree with me that Tesla is not, then why should your stock rise or fall just based on how many cars you sell? In 1997, lots of people thought Amazon was just a company that sold books. In fact, that year they sold just $16 million worth of books, compared to Barnes & Noble's $2 billion. Could you imagine picking Barnes & Noble over Amazon back then? That would have been one of the worst stock picking calls the last 30 years. Barnes & Noble is now defunct and Amazon stock has exploded by as much as 19,477%. Of course, just like Amazon pivoted from books to being the online store for everything, Tesla is about to make a similar size pivot. Amazingly enough, the proof is sitting on Tesla's website, even though I don't think most people realize it. Because as Elon wrote in plain English, for everyone to see, he says, Tesla's mission is to accelerate the world's transition to sustainable energy. He leaves no room for interpretation. Nowhere does he say anything about a mission to sell the most cars. Because the truth is, Elon has known all along that selling electric cars was just a stepping stone for this big pivot that could come next. It's why if you remember years ago, he changed the company's name from Tesla Motors to just Tesla. Because he wanted everyone to know Tesla was not just a car company. So what I've been saying all along, and now that Elon has already crushed the legacy automakers and won, I'm convinced he's going to pivot Tesla to revolutionize the $23 trillion energy market. This is not some far off plan, it's happening now. In fact, he's already taken on the current energy crisis. Unfortunately, with all the noise out there about Elon, lots of people are missing this story. I mean, look at these ridiculous headlines, and that's a real shame. Because despite what the media could be telling you, Americans are about to face the most expensive winter heating bill of the last 25 years. According to the Energy Information Administration, American households should get ready to pony up close to $1,400. That's just the average. If your furnace runs on oil, your winter heating bill could run over $2,300. And that's still nothing compared to Europe, where the average energy bill is expected to triple. Of course, like I've been telling you, Elon has been preparing Tesla to fight the world's energy crisis for years. And it's all because of something I've been calling Project X. Other people are starting to connect the dots, too. It's why one billionaire who's invested in the energy space said to Business Insider, Tesla is a distributed energy business. Musk is figuring out a way to harness energy, store it, and use it to help people. It's amazing because he couldn't be more right. And yet, it's what this billionaire didn't say that's even more amazing. Because he didn't say how fast Project X is happening. In a moment, I'll show you how Elon is advancing Project X in three different phases, all at once. And why I think what happens on or around July 19th will be the shot heard round the world. Specifically, I'm predicting a Tesla pivot from dominating electric vehicles to dominating electric utility companies. I know it sounds crazy, but I'll show you the proof. As someone who runs my social media circle says, this is an amazing Trojan horse strategy that's going to see Tesla disrupt hundreds of billions, if not trillions of dollars of revenue. And as a New York Times journalist said, the world's first trillionaire will be a green tech entrepreneur. That's trillionaire with a T. This is why I'm convinced Tesla will soon hit $667 a share. But honestly, I wouldn't be surprised if Cathie Wood's 1,533 prediction is closer to where a Tesla ends up. So people who understand all this now could have a chance to make a lot of money. And that doesn't even factor in the bigger potential profits from these five tiny silent partners that could go vertical on Tesla's big move. Look, if you still want to believe Tesla is just a car company, that's fine. You're entitled to have that opinion. I know plenty of people are going to miss out. But as you're about to see, Project X is already online. Most people don't think of its savior when they think of Elon. But how long was it after Russia invaded Ukraine that Elon was ready to jump in and help? He had Starlink satellites ready to restore Ukraine's internet in what, a couple days? Meanwhile, Elon has been ready to jump into this $23 trillion energy market for quite some time. It dawned on me when I connected the dots between those three patents and Tesla that I showed you earlier. And then when I started doing more digging, I was blown away. Just look at what this report that I found online said about the impact of Project X on this family. According to the report, Project X has already helped save them $2,115.86 on average per year on their household electricity bills. The report continues, family has managed to power their home for just 46 cents per day, all while using air conditioning, electricity, and all appliances as normal. Why would a car company want to do any of that? Where they live in Australia, Project X is powering 30,000 homes. It has already slashed the cost of operating the grid by 91% and has saved residents 116 million in energy costs in just two years. It's amazing. Even more amazing, Elan has already launched Project X to help fight the energy crisis here too, in the US, and just in time for winter. I'll show you a video clip in a moment. And in much of Europe, Tesla confirms Project X is active for energy shifting and stabilizing services. In fact, in the United Kingdom, Project X was able to back up power for around 300,000 homes. So I'm betting it won't be long before governments everywhere want Tesla to roll out their technology. Think about what's happening right now with 5G, but faster. Ultimately, I expect Tesla will get permission to operate as an electric utility everywhere. It certainly adds up if you think Tesla likes making money, because while the car market is very big, about $2 trillion worldwide, most people don't realize the clean energy market is worth $23 trillion. And even though a lot of people think Tesla is a pretty big company already, the current market cap is nothing compared to this $23 trillion market they're chasing. If I'm right and Tesla hits $667 a share, you could practically make 4X your money by just buying shares of Tesla now. If Cathie Wood is right and shares hit 1,533 a piece, that would be an almost 10X return from one of the world's biggest companies. And that's not even addressing for the potential for even bigger gains from these five silent partner companies that are much smaller than Tesla. Like I said, Tesla is just the first part of the story, and I'll explain more about the other part in a moment. Just know you don't want to wait until on or around July 19th. Of course, if you still think this sounds a bit too crazy, you should just know this is not just a hunch I have. I've been following Elon since his early PayPal days. That was over 20 years ago, and I pay attention to what he says very closely. And when it comes to Project X, I don't think he could have been clearer when he said, and these are his words, Tesla's overarching strategy here is to effectively become a giant distributor, global utility. I know most people don't know this, but that's because for the upteenth time, Elon is again about to do something that's never been done before. And that's why you have a rare opportunity to cash in on his genius. Imagine buying PayPal before he revolutionized payment processing. or buying SpaceX before they became the first private company to send people into space, or buying Tesla before they revolutionized the auto industry. It would have been life-changing, because all he does is win. Since going public, shares of Tesla have returned as much as 20,000%. $5,000 invested at the beginning could have turned into as much as one million. $10,000 could have turned into as much as $2 million, and $20,000 could have turned into as much as $4 million. But while those gains are long gone, this is another rare shot to laugh with Elon all the way to the bank. What I'm predicting should be a piece of cake compared to what he's already accomplished with SpaceX. I mean, what sounds harder, starting a brand new company and revolutionizing space travel, or pivoting from electric vehicles to electric utilities? I'm not asking you to take my word for it. When you see the proof I'm about to show you, you can make a decision. But I think it's crazy not to own a stake of Tesla at this point. Who wouldn't want to watch their money 10x if Cathie Wood is right? And here's another thing. During my research, I've also found a way to essentially roll back the clock on Tesla to buy in with less money than what shares cost today. This is not for everyone, but this strategy is great for people who maybe missed Tesla's run and have been watching from the sidelines. It's the only other way I know to get a direct ownership stake in Tesla without buying into an ETF. And unlike an ETF, this way you do not have to pay management fees and you won't get stuck with exposure to other stocks you don't want. I'll tell you more how to take advantage of this strategy later too. But when you see what I have to say, I'm confident you won't want to just take that first step. Because like I've said all along, if you just buy Tesla, you're going to miss the biggest potential gains. Just consider, if Tesla 10Xs, these tiny silent partner companies could go much higher. I'm already telling people about many of these companies right now. No matter what you decide, I wouldn't recommend waiting until July 19th. So let me show you how Elan is rapidly advancing Project X in three project phases. And then you can decide how you want to act on this information. All right, so let's start with phase one, building the ultimate battery. The major catalyst for my original Tesla prediction was Tesla's battery day. That's when Elan first revealed what was behind those three breakthrough patents I showed you earlier. But if you miss the tech advancements, there's only one thing that matters. Elan is hell bent on building the ultimate battery. but it's not for the reason you think. Because while almost everyone is talking about how building a battery that costs $100 per kilowatt hour would effectively end gas cars, since that's the price that would make electric cars and gas cars cost the same, Tesla's not really a car company, remember? They're a distributed energy business. And all of their renewable energy storage systems need these batteries too. Because when the wind isn't blowing or the sun isn't shining, you need batteries to power these systems. As BBC journalist Justin Rowlatt writes, gigantic batteries connected to our electricity grids are going to be central to the great renewable energy revolution. And mass producing these batteries cheaply and how increasing how much energy they can store is the key to unlocking the full potential of Tesla's energy business. It's why Ilan has already discussed how to obliterate that $100 per kilowatt hour price. and why he's talking about lowering battery cell costs down to $60 per kilowatt hour. The Department of Energy has already confirmed that this is a realistic target. It's why Elon has said he wants to increase the amount of energy Tesla batteries can store by 50 times. Imagine your phone battery suddenly lasting 50 times longer, or being able to download things on the internet 50 times faster. We're talking about doing something that's never been done before. No wonder billionaire Ron Barron estimates Tesla's energy division can be worth $500 billion by the end of the decade. Elon thinks it could be even bigger. Elon Musk predicts Tesla Energy could be bigger than its EV business. The head of energy storage at Wood Mackenzie Power agrees, saying Tesla's energy storage business on a percentage basis is growing faster than their car business, and it's only going to accelerate. And while all the real car companies are fighting over that piece of the $2 trillion car market, Tesla will be on its way to total domination of the $23 trillion clean energy market. It's why the executive director of the Energy Storage Association puts it, they're building the model of the energy company of the future. And with Tesla's end goal in clear sight, it won't be long before they complete phase two, building massive utility projects in towns and cities around the world. This is already happening now. Remember that winter storm that hit Texas? The record-setting cold in Texas might be bearable if people still had heat and power. Because of that storm, 4.5 million Americans went days without power. And others were forced to pay astronomical electric bills, surging up to $16,000, according to the New York Times. Well, based on my research, Tesla has been contracted to build a massive energy storage project right outside Houston. Look at this headline from Bloomberg. Tesla's plugging a secret mega battery into the Texas grid. The article continues, the utility scale battery located outside of Houston will connect to the same grid that faltered in February's freeze. Why would a car company want to do any of that? I can't confirm whether local government officials reached out to Elon or he reached out to them. But either way, this is a major deal. This isn't a small town in the middle of nowhere. Houston is a market of more than two million Americans. And the crazy part is, that project is small compared to what Tesla's working on in California. Look at this headline from Forbes. Tesla begins construction of the world's largest battery storage facility. That project is supposed to save consumers more than $100 million over the next two decades. It's insane. No wonder the rest of the world is knocking on Tesla's door. Everyone knows if the technology is good enough for Americans, it's good enough for them. In fact, Canada has already contracted Tesla to power 80,000 homes in one of their most populated provinces. In the United Kingdom, just six of Tesla's energy systems power 17,000 homes. The UK has been so happy with Tesla, they even granted them permission to generate electricity on British soil. Tesla also has installed micro grids in places like Fiji, American Samoa, and Puerto Rico. They're even proposed powering the Greek islands with similar technology. Like I showed you before, Australia has already been running one of Tesla energy storage systems for years, and residents have already saved 116 million in energy costs. Even Apple has announced it's using Tesla's energy systems to store energy on its massive solar farm in California. So I'll ask you again, do you really think Tesla is just a car company? Or if you're finally starting to see the truth, let me ask you this, how much longer before governments everywhere start ditching their energy systems for Teslas? It's why one billionaire said, the value of Tesla's business is about deregulating energy. That's about batteries and battery storage, and it's about disrupting utilities. But if you still want to bet against Elon, let me show you phase three, and then you can decide. Because phase three is where Tesla finally operates as a giant, decentralized electric utility. Look, Tesla has no interest in being a traditional utility company. If you don't know anything about Elon, you know everything he does is different from most people. So no, Tesla's not going to simply lay power lines for people's houses and collect a monthly fee. Elon has already said Tesla's goal is to operate as a decentralized utility around the world. And why not? They have enormous demand for their energy systems. During the pandemic, Tesla still increased the number of energy systems they installed by a ridiculous 83%. That was during a time when most countries were shut down. Now they're going to continue installing these systems everywhere. Why? Because the more energy systems Tesla installs, the larger they can grow their energy network. and the more valuable all of that extra stored energy becomes. Imagine Tesla having energy systems in every major city across the globe. They're already in 40 different countries. Then when a place like Houston loses power for days because of a freak storm, Tesla can immediately dispatch some of its extra stored energy to local power grids with decentralized assets everywhere. They can do this easily and quickly. They don't have to rely on any one unit. It's like being able to pull from an army of energy assets on demand. This is a massive, massive opportunity. But here's where it gets even crazier. Over the next decade, 145 million electric cars are expected to be on the road around the world. And despite everything we just talked about being a distributed energy business, Tesla is still really good at selling electric cars. So what if Tesla could add every car and truck they sell to this network of energy storage systems? And what if those vehicles could dispatch the extra energy they store during the day back into Tesla's energy network? Too crazy? Think about it. All an electric vehicle is is just a giant powered energy storage system on wheels. Of course, Elon knows this too. It's why Reuters writes, Tesla has a global fleet of more than one million electric vehicles that are capable of connecting to and sharing power with the grid. Can you see where I'm going with this? Both Tesla owners and Tesla could make a ton of extra money from leftover energy that isn't being used during the day. As one journalist who spent a decade covered Silicon Valley tech puts it, the development would essentially make Tesla car work just like a power wall. And another analyst estimates this could launch a brand new revenue stream at Tesla of up to $72 billion per year. Think about what that could do to Tesla's market cap. Can you see why I'm so confident shares could jump to $667 from here? Like I said, I wouldn't be surprised if we wind up closer to Cathie Wood's $1,533 prediction. That's why I'm telling people around me to buy a stake in Tesla right now, not next week. I want to repeat myself just so we're clear on this. The best time to act on this information was yesterday, but the second best time is right now. If you wait much longer, you're going to miss getting into these smaller companies too. Just don't wait too long. A single announcement or tweet could blow this story wide open. On or around July 19th, Tesla is already revolutionizing the grid in more than 40 countries around the world. This is not a goal. This is happening now. Soon these enormous energy storage systems will be powering towns and cities everywhere, slashing the cost of operating the grid by as much as 91%. The one in Houston is going to be a game changer. The one in San Francisco is going to be the world's largest, estimated to save Americans $100 million over the next two decades. And Tesla's residential energy storage systems could potentially save you an extra $2,000 a year, every year for the rest of your life. So with Elon fully committed to transforming Tesla from electric car maker to energy powerhouse, you really wanna bet against him? As far as I'm concerned, this is the best story that hasn't been told. But I expect that'll all change on around July 19th when Elon delivers a big announcement to shareholders. Of course, like I said all along, I wouldn't be surprised if a tweet or social media post leaks out first that blows up the timeline completely. It could happen at any point. which means the tidal wave of momentum I'm expecting could really happen sooner rather than later. And everyone knows Tesla is one of those stocks where the second good news comes out, shares can take off in a hurry. We've seen it happen before. And if I'm right, I expect these other silent partner companies I'm following that are much smaller than Tesla to take off too. Now, if you prefer to just buy Tesla, that's fine. Free to do what you want. But before you buy shares the regular way, I would still recommend the strategy I mentioned before. Do not buy Tesla before seeing this. Remember, this strategy is not for everyone, but it's great for people who maybe missed Tesla's run and have been watching from the sidelines. because you can buy in with less money than what shares cost today. It's really easy to do. I put together a short video showing you exactly how to do this. It's called how to roll back the clock on Tesla. After you watch me do this on video once, you'll be able to take advantage of this strategy whenever you want. In a moment, I'll show you how you can download this video for free. But like I've said all along, if you only buy Tesla, you're gonna miss the biggest opportunity for potential gains. You're gonna miss out on all the tiny companies I'm tracking that are going to benefit from Tesla's move. And with Tesla poised to potentially hit $667 a share in the days ahead, I expect many of these stocks will only go higher from here. You know the saying, a rising tide lifts all boats. Well, that's what's going to happen with a lot of these smaller companies. These are the silent partner companies that I'm talking about. I call them silent partners because when Tesla moves, lots of these companies soar even higher. Business Insider wrote a piece about this phenomenon saying, investor hype surrounding electric vehicles has been inspired by Tesla's meteoric rise. We saw this happen when I first called Tesla at $37, and now I'm convinced it's about to happen again. Imagine being one of the people I told about Workhorse before the stock jumped from $1.61, where I found it, all the way to $42.96 a share. That was a ridiculous 2,568% move. or being one of the people I told about NIO before the stock jumped from $1.80, where I found it, all the way to $64.60. That was another ridiculous 3,489% move. And while Tesla soared as much as 11 times over where I called it at $37, the gains on Workhorse and NIO could have been even bigger. Workhorse went up 26 times. NIO went up 35 times. $2,000 invested in NIO could have been enough to buy a new Tesla Model 3 in cash. And here's the other thing. It's not just the tiny EV companies that move when Tesla moves. because during Tesla's last big run, many tiny energy companies I found blasted higher too, like Fuel Cell Energy. I told people about that stock when it was trading for 31 cents a share back in July 2019. By February 2021, shares had hit an all-time high of $29.44 each, a mind-blowing 9,396% move. I told people about Plugged Power when it was trading for just $2.98 a share in November 2019. That stock hit an all-time high a few months later at $75.49 a share. It was an enormous 2,251% move. And I told people about Ballard Power at $5.83 a share back in October 2019. Within days of Tesla hitting $900 a share back in 2021, Ballard also hit an all-time high of $42.28. I'm joking when I say this, but that was only a 625% move. Look, that's why I've been saying that while Project X could send Tesla stock through the roof, the biggest potential gains are going to come from these smaller companies. So while you could just go buy shares of Tesla if you want, I'm convinced this could be an opportunity you can't afford to miss. That's why I put together a special report with the names of the five best tiny stocks I'm telling people to look at. This report is called, Five Tiny Stocks to Play Elon's Massive Energy Revolution. In a moment, I'll show you how you can get access to this for free as well. But remember, you don't want to wait to act on this information. Because even though we're talking about what happens on around July 19th, being the drop dead date, we're only one tweet away from this story going mainstream. So how can you get started right now? Well, I'll tell you. I don't sell this information anywhere. Not because I can't, but because that's just not the way I do business. I don't like to give people information and then leave them hanging. As the group leader of a rapidly growing trading community, I help run a very large trading education business. 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spk05: Now, beyond our financial results, I do want to highlight the company's progress with respect to ESG and ESG disclosure. In 2023, we joined the UN Global Compact and will disclose our ESG performance in an inaugural sustainability study in and around our Investor and Analyst Day in May. Alongside the sustainability report, we also expect to publish our first asset handbook. This important document will provide investors with a detailed look into the assets that make up our market leading growth portfolio. Now with that, I'll pass it over to John Griffith, our Chief Development Officer to step through the assets.
spk03: Thank you very much Andrew and it's a pleasure to have you all join us today and thank you for your time. It's worth recalling that it was only two years ago that we went public with a portfolio of 18 royalties and we now have over 200 royalties that are fully paid for in a portfolio poised to deliver multi-decade growth. Our portfolio places us in the top five in terms of the number of royalties behind the likes of Franco Nevada, Sandstorm and Triple Flag. Our portfolio is organic in the sense that many of the assets are moving forward in the very capable hands that some of the world's leading, well-capitalized and socially responsible gold producers, as noted at the bottom of this page. As our key top tier operating partners, work to move these assets along the development pipeline they become increasingly valuable without gold royalty having to raise any cap additional capital or incur any additional costs our seven producing royalties are closely shadowed by 14 royalties on development assets many of which will be in production over the next several years delivering peer-leading revenue growth Behind the pipeline of development royalties, we have another 38 advanced exploration royalties with resources, many of which present very large gold resource endowments and the scope to rapidly move into the development phase, such as Fenelon. And then we have over 150 exploration royalties, many of which are in the most prolific gold-producing regions in the Americas. These royalties provide significant option value to provide meaningful future value accretion over time. Turning to slide nine, as mentioned, the producing and development royalties in our portfolio will be the key drivers of our peer leading growth over the next several years. Using research analyst consensus estimates, gold royalty is expected to deliver organic revenue growth on a compound annual growth rate basis of 60% over the next several years. And importantly, we do not need to raise any capital or incur any additional costs to benefit from this growth. Beyond the next several years, we anticipate a continued growth in revenue as assets such as Odyssey, Granite Creek and Kote come online, supported by the REN project, the northern extension of Goldstrike, as well as Fenelon towards the end of the decade. Turning to slide 10. In addition to having a balanced portfolio operated by many of the world's leading operating companies, our portfolio benefits from being heavily weighted in some of the best mining jurisdictions in the world as measured by the Fraser Institute, taking into account factors such as geological prospectivity, access to skilled labor, permitting, and rule of law. Over 80% of our net asset value is anchored in the provinces of Quebec and Ontario in Canada and the state of Nevada in the USA. And speaking of prospectivity, Last year, our operating partners drilled over 700,000 meters on our underlying properties. This year, our operating partners are expected to drill a further 600,000 meters. All of this exploration comes with zero cost to gold royalty, but with all the upside in potential resource growth. This underscores that our portfolio is not just about quantity of royalties, but also the quality of our assets in which our operating partners are investing so heavily. Turning to slide 11. We have grown quickly, but we've also built our business on solid foundations. A number of our royalties are underpinned by assets that are not only among the largest gold mines in North America, but also mines that will produce gold for many decades. This is a differentiating feature of our company. None of our more immediate peers have multiple assets such as Odyssey, Cote and REN that will all be producing gold this decade and still be producing gold in 2040 and beyond. It is important to emphasize this point as great mining companies are built on the back of great assets. Franco Nevada's foundational asset was a royalty on Barrick's gold strike mine. And we have a royalty on the Northern Extension, an important future contributor to gold strike, the Wren Project. The attributes of our portfolio are outstanding. We are poised to deliver exceptional growth, not just over the next several decades, but well into the next decade. Sorry, not over the next several years, but well into the next decade. Our confidence in the portfolio allowed us to initiate a dividend early on in the evolution of our company. And it will be instrumental in being able to grow total shareholder returns over time. Having addressed some of the macro attributes of our portfolio, I'd now like to speak a bit more in detail about some of our exciting assets. Turning to slide 12, first talking about the Canadian Malarctic property. As a reminder, we hold a 3% NSR royalty on portions of the Canadian Malarctic mine and the Odyssey project. This royalty currently applies to a portion of the Canadian Melarctic open pit areas, the eastern end of the Barnet extension, where most of the production has occurred to date, and importantly, the northern portion of the Odyssey project. The royalty also applies to portions of East Melarctic, Sladen and the Sheehan zones, and all of the Jeffery zone within the Canadian Melarctic mine property. The previously announced acquisition of Yamana by Agnico Eagle and Pan American is expected to close soon, resulting in Agnico Eagle becoming the sole owner and operator of the Canadian Malarctic property. The Canadian Malarctic and Odyssey mines will now form the Canadian Malarctic complex. For 2023, Agnico Eagle disclosed that production is expected to be sourced from the Canadian Malarctic pit the Barnet Pit and the Odyssey Mine, complemented by ore from the low-grade stockpiles. The Canadian Melarctic Pit is expected to be exhausted late in the first half of 2023. Production from the ram sections of the Odyssey Mine is expected to commence in March 2023, with the mined ore to be processed at the Canadian Melarctic Mill. The Odyssey Mine is forecast to gradually ramp up production in 2023, with production from the shaft commencing in 2027. Agnigo Eagle expects to have up to 40,000 tons per day of excess milk capacity at the Canadian Malarctic Complex starting in 2028 as processing of the open pit ore and low-grade stockpile begins to wind down and processing transitions to the higher ground underground odyssey mines. Turning to Kote Gold Project, we hold a 0.75% NSR royalty over the southern portion of the Kote Gold Project located in Ontario. IAM Gold has disclosed that Kote Gold Project was estimated to be approximately 73% complete at the end of 2022. IAMGOLD also disclosed that the aggregate anticipated proceeds from asset sales, combined with the funds to be provided by Sumitomo under the joint venture for the mine, will meet the estimated remaining funding requirements for the completion of construction at Cotec. I'm Gold further stated that Cote is expected to commence production in early 2024, when it is expected to become Canada's third largest gold mine by production. Turning to the Wren Project. We hold a 1.5% NSR and a 3.5% NPI over the Wren Project, part of Barrick's Carlin Complex in Elko County, Nevada. On February this year, as part of the company's 2022 results announcement, Barrick highlighted an increase in inferred resources at REN to 1.6 million ounces and stated that growth is expected to continue in 2023. At REN, drilling continues to grow inferred resources in the JV zone, as well as confidence in the continuity of mineralization at the Corona corridor, where MRC 22002 drilled within the Devonian Rodeo Creek formation returned 16 meters at 17.35 grams per ton of gold. Turning to the Fenelon Gold Project. We hold a 2% NSR royalty over the vast majority of the Fenelon Gold Project located in Quebec. On January this year, Walbridge announced an updated mineral resource estimate for the Fenelon project prepared under NI 43-101. The updated mineral resource estimate is expected to form the foundation for Walbridge's upcoming PEA on Fenelon, which is expected to be completed in the second quarter of this year. Walbridge also announced its 2023 exploration plan, which includes 15,000 meters of drilling on the Fenelon project, which remains open laterally and at depth in multiple directions. The drill program will follow up on recent exploration results that continue to expand the known gold system. In addition, Walbridge will continue de-risking the project with further technical studies, environmental and permitting activities. Turning to Granite Creek, we hold a 10% NPI over Granite Creek mine in Nevada. On March this year, IAT provided an update and recap of progress at Granite Creek. The 2022 underground drill program was focused on delineating mineralization for mining, as well as upgrading and expanding resources expected to provide the bulk of mineralization to be mined in the following 12 months. Multiple underground levels have been developed, especially at the OG Zone And IAT continued to extend the decline to depth with the goal of initiating access to the new South Pacific zone located immediately below and to the north of the underground mine workings. IAT targets to complete underground drilling and bring the newly discovered South Pacific zone into the Granite Creek mine plan in 2023. And finally, turning to Jarrett Canyon, We hold a 0.5% NSR over the Jarrett Canyon mine in Elko County, Nevada. We also hold an incremental per ton royalty interest on the Jarrett Canyon processing facility. On March 20th of this year, First Majestic announced it's taking action to reduce overall costs by reducing investments, temporarily suspending all mining activities and reducing its workforce at Jarrett Canyon. effective immediately. During the suspension, First Majestic intends to process approximately 45,000 tons of above-ground stockpiles through the plant. Exploration activities are expected to also continue through 2023 with several additional plans for optimization of the assets. As a result of the suspension, First Majestic's previous production and cost guidance for Jarrett Canyon can no longer be relied upon. First Majestic revised consolidation and production and cost guidance, including capital investments, are expected to be published in July. Gold Royalty notes that Jarrett Canyon accounts for less than 2% of its portfolio on a net asset value based on consensus estimates. And with that, I conclude my remarks and hand back to Dave.
spk04: Thanks very much, John. And thank you all for your attention today. And I think what's indisputable is that we are headed into what I think is an unprecedented bull run for gold. The ingredients are there in terms of an accelerating inflationary environment. a likely pivot by the Federal Reserve and central banks globally to easing monetary condition because they're facing the conflicting challenges of high inflation, but also a financial contagion. And they're going to have to do increasing liquidity to stave off financial ruin within the financial services sector, not unlike what we had in the great financial crisis just 15 years ago. So we're likely to enter into a period where gold will exceed all-time highs of $3,000 an ounce on a real basis. In that type of environment, we do expect gold equities to respond. And what's also striking is that gold equities have not responded. Even though gold on a nominal basis is achieving all-time highs again, we've still seen gold equities discounted severely from where they were the last time gold was above $2,000 an ounce, at least 30%. below their all-time high. In the producer universe, I think that's factored by or influenced by the fact that producers are not immune from inflation that we're experiencing in the general economy, and that's certainly weighing on their valuations. That's why we believe that royalty space is the best place to get optimum leverage to gold price and optimum leverage to expiration while protecting you yourself from inflation in the underlying gold producer universe and no company is better positioned for rising gold prices than gold royalty from a couple of respects we have increase in production from our underlying royalty portfolio and we have peer leading growth in revenue Admittedly, we're in a space in the equity markets where growth is being severely discounted as nominal rates go up. And that's certainly led to underperformance. But we think that as monetary conditions ease, as the gold price goes up, we're uniquely positioned to provide the best growth from the best jurisdictions in the world. Nevada, Quebec and Ontario, we have a heavy concentration in our portfolio here. And as I said, we have optimum leverage to expiration. Last year, our operating partners invested over $200 million or 700,000 meters of diamond drilling on their underlying properties, growing the reserves and resources and exposing our shareholders to that expiration upside. And we expect a similar expiration focus from our operating partners over the course of 2023, which will lead to further expiration upside within our portfolio. So I think we're excellently positioned to not only grow our cash flow, but also grow our dividend over time and also well positioned with strong liquidity on the balance sheet to participate in new opportunities as they come our way over the course of the next year or so. With that, we'd be delighted to take questions from our shareholders. Thank you so much for your attention today.
spk02: Thank you, gentlemen, for a fantastic update. And thank you for your time today. By the way, we had almost 120 participants on this call. So well done. I can see by the comments and the questions that many of your shareholders appreciate the opportunity to be able to interact directly with you. So with that, we'll start taking questions. Just let me come into the portal. Here we go. Can you please outline the specific areas where cash operating expenses can be reduced to achieve the 2023 guidance level? And also, can you break out between the royalty revenue and the option proceeds to get to the 2023 guidance?
spk05: Sure, I can take that. So the recurring cash operating expense reductions through 2023 is likely to happen in a few areas. First off, I think everyone will be aware and understand that we as a company made three large acquisitions post-IPO. We had... a major subsidiary in Nevada and Val d'Or, Quebec at the time. One of the things that we are in the process of doing and will do through 2023 is consolidate and reorganize those subsidiaries. such that there should be elimination in excess overheads in those areas, reduction in consulting costs, et cetera. That's one thing. We do expect also, as the company was established, moderation in the office and IT setup costs through 2023. As the company stabilizes, that sort of happens once. Also refocusing marketing in IR costs through 2023 should be helpful to get to meet that guidance for costs. So those are the key areas that we'll focus on for cost reductions to meet that $7 to $8 million recurring cash operating expense guidance. Now on the question about royalty and option proceeds for 2023, approximately 40% of that will be from our royalties with the majority coming from the Canadian Malartic mine and approximately 60% will be options, AMRs, etc.
spk02: Thank you, Andrew. Next question, and we've had a lot of questions about this regarding the performance of the stock. Can you discuss why there is pressure on the stock? Or as I like to say, what is the market missing?
spk04: Look, I think, as I alluded to a little earlier on when I provided a summary of our presentation, growth has been severely discounted in this market. In a market where interest rates are rising, we're seeing our growth significantly discounted. Growth stories are definitely not in vogue. Immediate cash flow is getting a premium. And admittedly, our cash flow in the short term is not as significant as it is over the next three to five years as we crystallize that growth from an enviable portfolio in the Americas. And so as interest rates start to pivot downwards, and we firmly believe that the Federal Reserve and central banks globally are going to undertake and are undertaking a grand pivot to easing monetary conditions. And we start to see generalist equities start to participate in the gold market. And they've been largely absent up to this point. And we've seen that in the underperformance in mining equities generally. I think you're going to see a premium place on the kind of growth that we can offer. Growth that's fully funded, I should add. As I said, we have 216 royalties, but they're all bought and paid for. We don't have to put another dime into our growth, nor do we have to put a dime into the significant expiration programs that our operating partners are undertaking. All of that growth really comes for free because all of our royalties are bought and paid for. We just have to wait for that growth to crystallize. And the value creation on a per share basis is immense because our share count is static. And our growth is immense. And that's the opportunity we see as we start to see capital reallocated back into the gold sector. Just to give you a sense of the upside potential within the gold sector generally, if you look at global asset allocation, it's only a small fraction of 1% of capital globally is allocated to the gold sector and physical gold. It would only require a small reallocation of capital, really a rounding error, to significantly enhance not only the price for gold, but also significantly enhance valuations in the gold sector. And as that capital gets reallocated into the gold sector, it's our firm view that investors, general investors in particular, are not going to be looking to invest in shrinking businesses. They'll be looking to invest in ones that are growing not only on an absolute basis, but on a per share basis. And again, because our growth is all fully paid for, that means the per share accretion, the per share growth in our value, in our earnings, in our cash flow is dramatic over the next coming years. And investors coming into the space will be looking for growth again, which has not been the case up to this point.
spk02: Thank you. So staying on the gold market, what is the impact for Groy when gold goes up by $100, for example?
spk04: Yeah, certainly. Look, every hundred dollar move in the gold price has millions of dollars of impact in our revenue, increasingly so as a more significant portion of revenue comes from production rather than options. If you look at our growth beyond the next couple of years, all that growth is coming from royalty revenue, not option proceeds. In fact, Our assumptions in our revenue projections and the consensus estimates that you've seen in our chart up to this point is that option proceeds fall off. That's effectively zero over the next two to three years. And all of our growth comes from royalty revenue. That means that every $100 move has an immense impact on our revenue growth over the coming years. number of years. We're using 1650 gold long term for a consensus for estimates at the consensus gold price. So even at current gold prices, there's upside in those revenue projections that we showed you a little earlier in the presentation.
spk03: Thank you. I might add that the other thing about a rising gold price environment, because we own royalties, that incremental revenue just drops to the bottom line. There are no costs that come with it. So, you know, it's incredible leverage. And that's one of the beauties of the royalty business model.
spk02: Thank you, John. Can you comment on Marin Katusa and why he advised his subscribers to sell?
spk04: Yeah, Marin last year really turned bearish on gold because the Federal Reserve was starting what was at that point and still is an unprecedented increase in interest rates. And he used the phrase, don't fight the Fed. And so he actually advised his investors, his subscribers to liquidate their gold positions. It wasn't just a gold royalty phenomenon. Obviously, he was very heavily weighted to gold royalties, one of his preferred stories. but he decided to make a wholesale rotation out of gold. Interestingly, in the last couple of weeks, he's pivoted back into the gold sector and is actually advising his investors to look at gold and the potential for an unprecedented bull run in gold. So I think like many of us, he's starting to see the potential for a significant pivot by central banks from tightening monetary conditions to easing them dramatically because of the prospect of a financial contagion.
spk02: Thank you. I know we've talked a little bit about, you know, pressure on the stock, but is there an actual catalyst that will help to improve the share price in the coming year?
spk04: Well, from a macro standpoint, I would say the gold price would be a significant catalyst for not just our equity, but mining equities generally, but in particular, royalty companies in the face of increasing inflation. That's the best place you want to be parked to get optimum leverage to the gold price, optimum leverage to exploration while protecting yourself, as John correctly pointed out, from inflation. Every dollar increase in our revenue goes right to the bottom line because our costs are static and, in fact, have been declining by 30% from the previous year is that we've integrated all of this growth that we've executed on since our IPO just two years ago. We're still a relatively young company and we continue to optimize our business and optimize our cost structure. And so I think we're very well positioned for a rising gold price environment.
spk02: Thank you. I know you thoroughly discussed the first majestic closing of Jarrett Canyon. But is there something else that you could sort of explain to your listeners? Because we're getting a lot of questions on that.
spk04: Yeah, look, I think there's a couple of things that we should point out. By consensus estimate, Jarrett Canyon represents less than 2% of our underlying value of our business. And that's the power of diversification that you can realize in a royalty company that you can't hope to realize even in the most senior operators. in the gold industry. Even the biggest have no more than a dozen to 15 mines within their portfolio. So there's a limit to the diversification you can undertake when you're a producer. It's impractical to run more than 12 or 15 mines, even if you're a very big producer like Newmont or Barrick or Agnico Eagle for that matter. And so with 216 royalties, we could run a business anywhere 10 times the size with the same human footprint. We have eight full-time equivalent employees. There's no limit to the diversification we can achieve in our portfolio. That's another unique aspect and feature and attraction of this model. And while Jarrah Canyon is not in production currently, And they're still assessing First Majestic when they're going to restart operations there. We've completely removed that from our guidance. And that represents upside now. And the beautiful thing about royalties is they don't waste. They don't decay. They don't require capital. We can just be patiently waiting for those operations to restart. for First Majestic continuous exploration program and benefit from the upside from their exploration efforts without actually having to contribute. So that provides a lot of optionality for our shareholders.
spk02: Thank you, David. And is the company looking to continue to grow through portfolio acquisitions, or are you going to rely on organic growth for the next little while? John?
spk03: Well, one of the beauties of our portfolio, as I mentioned, is we've got some of the largest and most prolific gold producers in the world. spending considerable amounts of money, drilling and further advancing all of the underlying assets in our portfolio. So without us having to do anything, there's a natural migration of the assets within our pipeline towards production. So in addition to those that are coming online, which we've already discussed, we've got this further impetus for growth. But that's all organic and it's all paid for. We're certainly very active. In fact, I'd say we've probably never been quite as active in looking at different opportunities. You might say, well, why haven't we transacted? And I'd say largely because of our discipline here. in trying to find the right opportunity that's going to be a good fit with our portfolio, that's going to be additive to our strategic imperatives, that's going to add value to our net asset value per share. And so we're looking at opportunities that I would say would be across the spectrum. consolidation opportunities, writing new royalties, providing fresh capital to operating companies, looking at portfolio assets, looking at single assets. And I'd say also that our organic royalty generation both in Nevada and Quebec, have both been very, very prolific for us in generating new organic royalties. I think the one thing I would say, though, I'd probably tone down the amount of consolidation that's going on. We've already seen a considerable number of companies that have either consolidated already or certainly changed in form. So I think the opportunity for corporate consolidation is simply a narrower window, but we're busy in all aspects of the corporate development spectrum.
spk02: So to answer one of the questions that has been asked. So you are open to looking at any M&A possibilities in the near future, given the consolidation we've seen in the space recently.
spk03: Absolutely. I mean, as I said, the one thing we do have to make sure is it's a good strategic fit. We have to be disciplined. And, you know, again, we look at a significant number of opportunities. I know Dave has said this before. We operate almost in a perpetual state of due diligence. And, you know, I'd love to be able to say definitively and handicap the possibility of those opportunities turning into live transactions. But there are so many factors that are at play that make it impossible to really give give any confidence around that. Suffice to say that we've never been as busy in the corporate development group here at Gold Royalty.
spk02: Thank you, John. We've had a lot of questions about this, by the way. What is the percentage of Eric Sprott's current Groy holdings?
spk04: It's really hard for us to discern any individual share ownerships unless they're doing public filings. So hard to say. But we know that we've inherited some really high caliber shareholders over the course of our existence since our IPO started. in consolidating Ely, Golden Valley, and Abitibi. And that included not just Eric Sprott, but Rob McEwen, Jimmy Lee. These have been good strategic shareholders. And I should add, we also have Nevada Gold Mines, which is the joint venture between Newmont and Barrick as a significant shareholder as a result of the acquisition of the Granite Creek Royalty last year. They're, I think, sitting at around 6% based on public filings.
spk05: I think I'll also add that Eric Sprott was a big believer in Ely and the Ely assets, and they still remain within Gold Royalty Corp. So investors still get exposure to those assets through our shares, certainly.
spk02: Thank you, Andrew. There were a lot of questions regarding perceived, I'm going to say perceived dilution of the stock. Can you comment, please?
spk04: I'm not sure what to refer into. We haven't had any major share issuances other than for share-based compensation, restricted share units to our board of management. The majority of our compensation is share-based compensation. But the last big significant share issuance was as a result of the M&A we've done. And we haven't issued any stock for cash of any significance really since our IPO when we raised $90 million.
spk02: Thank you, David. On average, how much time will the development projects take to generate income? One to two years, two to three?
spk03: I'll take that one. I think maybe if we could turn back to, I'm going to turn back to our growth slide here. So basically, as I mentioned in my prepared remarks, we're looking at 60% growth from 2023 to 2025 based on analyst consensus estimates. So that hopefully gives the person asking that question an indication that our revenue is going to grow significantly over the next couple of years. And beyond that, it takes an entire next step leap as Odyssey Underground and production from the shaft comes online. You know, obviously we've got the royalty on the southern portion of Kote when that comes online in 2024. Our royalty basically sits right over the near-surface mineralization, so we expect significant revenue from Cote, certainly in its early years of production. And I think Granite Creek is another asset that's going to be a massive contributor to our relatively near-term revenue appreciation. And I think beyond that, as I mentioned, we have 14 assets that are in that development pipeline pushing towards production. And for that reason, you know, we haven't obviously provided guidance specifically out to 2027. But you'll see here that, you know, we anticipate our revenue will be depending on whatever commodity prices you want to assume, you know, at least at the 50 to 60 million dollar level. Again, without us spending a single cent, without us issuing a single share.
spk05: To add to that, to answer your question in terms of years, we've got some coming on in less than a year to one year, some in two, some in three, and we've got over 216 royalties. So over the course of the life cycle, if a lot of those are developed or even a handful of those, we're going to see that trajectory increase year over year. So it is really a mix of... depending on the assets. But we do have some coming in in a year, two years, three years to underpin this profile.
spk02: Thank you, gentlemen. How much exposure does Groy have to silver production given the push to EVs and renewables? Theoretically, that should be improving those prices for that commodity.
spk04: John, do you want to tackle that one?
spk03: Yeah, I think we have a modest amount of silver exposure. I don't think it's going to be the key driver of our bottom line revenue growth. It's nice to have that exposure. We also have some exposure to copper, which I think has a very similar investment thesis. So quite frankly, I think it's copper really that will That will be the commodity that really links up with the greening and the decarbonization of the global economy more than silver within our portfolio.
spk02: Thank you. How many assets will be producing by 2024?
spk03: Josh, I don't know if you have that one, Andrew. I think it's going to be.
spk04: Well, 24 Cote comes on next year. That's probably the most significant addition, and that's going to be quite significant step change in cash flow. But that would be probably the most in 2024. That would be the most significant addition to our cash flowing portfolio. And Cote, I'll just remind everybody, at half a million ounces a year of production is approaching the second largest in Canada production, second or third largest in Canada. And I should just add, again, to the quality proposition. We have a royalty on what's now Canada's first or second biggest producing gold mine, Canadian Malaric, depending whether you look at detours, number one or number two. We have a royalty on Cote, which will be number two or three. We have a royalty on the Underground Extension production. of Gold Strike, which is the biggest producing gold mine in the U.S. So John's point earlier on, Franco Nevada being built on one of those assets of that quality, we have three of them in our portfolio, which is unprecedented for a company of our size and certainly the envy of any of our immediate peers in the smaller cap universe.
spk05: Yeah, no, I think, I think we, throughout the year, we'll go from about seven to maybe 12 in total, 11 or 12. It should come some later on in 2024, but Dave's right. Cote is really one of the major contributors in 2024.
spk02: Okay, gentlemen, and we are at the top of the hour here. So I'm just going to ask one more question. And that is, are any of your royalties subject to buybacks?
spk03: We have a limited number of royalties that are subject to partial buybacks. There are none that have full buyback options. So we're quite pleased to have the majority of our royalties being NSR royalties. And again, very little in the form of buy downs and none that have total buy downs.
spk02: Okay. Thank you. Thank you, David, Andrew, and John. And thank you to everyone who joined us today. If you have further questions for the company, you may email them at info at gold royalty.com. Thanks everyone for tuning in. It's been a pleasure to host you. We will see you soon on the next vid town hall forum.
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