Gold Royalty (NYSEAMERICAN:GROY) reported record third-quarter results as production from its royalty and streaming portfolio increased, and management said the company remains on track to meet its full-year guidance.
Total revenue, land agreement proceeds and interest reached $11.5 million in the third quarter of 2026, equivalent to 2,689 gold equivalent ounces, or GEOs. Adjusted EBITDA rose to $9 million from $2.5 million a year earlier and increased approximately 60% from the second quarter, Chief Financial Officer Andrew Gubbels said.
Chair and CEO David Garofalo said adjusted revenue and GEO production increased more than 40% and 50%, respectively, from the prior quarter. He said the company is generating enough cash to build its balance sheet, pursue growth and consider returning capital to shareholders.
Production Outlook and Portfolio Growth
Gold Royalty reiterated its 2026 guidance of 7,500 to 9,300 GEOs. Production totaled 6,366 GEOs through the first nine months, or 76% of the guidance midpoint, said Jackie Przybylowski, vice president of capital markets and sustainability.
Przybylowski said the company remains on track to reach the midpoint and could finish toward the higher end of the range, depending on realized gold prices and absent major disruptions. Management had expected 60% of annual production to occur in the second half as assets including Ferris and County Line ramp up.
The guidance assumes a full-year gold price of $5,150 an ounce. Przybylowski said lower gold prices would increase the GEOs calculated from land agreement proceeds, interest and revenue from copper and other metals when converted into gold equivalents.
The company continues to expect production of 28,000 to 34,000 GEOs by 2030 from assets already in its portfolio. Among near-term developments, management expects first production at the REN project by year-end and an updated mine plan for IAMGOLD’s Côté project in the fourth quarter.
At REN, Przybylowski said the full production rate is expected to reach 140,000 ounces annually by late 2027. Payments under Gold Royalty’s 3.5% net profits interest are expected to begin after the operator recovers invested capital, with the company’s base case pointing to early 2028 at current gold prices.
Vareš Restart and Legal Review
Przybylowski said DPM Metals’ Vareš mine restarted and achieved commercial production on August 10. The operator expects the mine to reach its full processing rate of 850,000 tons per year by the end of 2026.
Gold Royalty expects Vareš to be one of its largest revenue contributors in 2027. Przybylowski said production attributable to the company could be broadly similar to fourth-quarter levels, or slightly higher, assuming no major change in copper grades.
She also noted a six-month review ordered by the Constitutional Court of Bosnia and Herzegovina on September 30 involving a broader dispute over state-owned land, including the Vareš concession agreement. The mine continues to operate normally, she said, and DPM does not expect the court decision to affect its 2026 production guidance.
Cash, Acquisitions and Capital Returns
Gold Royalty ended the quarter with approximately $21 million in cash and cash equivalents, up from $12 million at the start of the year. It had no debt and an undrawn $125 million revolving credit facility, Gubbels said.
The board is considering a capital return policy, although management said its preference remains growth through acquisitions. President John Griffith said the company has capacity for acquisitions potentially as large as $200 million, or larger transactions in partnership with Taurus. He cautioned that competition for larger transactions with near-term cash flow is weighing on implied returns.
Gubbels said Gold Royalty does not have a fixed minimum cash target but would generally be comfortable retaining around $10 million for working capital. He also cautioned that third-quarter land agreement proceeds of $1.1 million were higher than normal and can fluctuate with contract activity.
Garofalo said the company plans to make an exception to its practice of no longer pre-releasing quarterly revenue and expects to publish preliminary fourth-quarter revenue results ahead of full-year financial results, likely in mid-February.
About Gold Royalty (NYSEAMERICAN:GROY)
Gold Royalty Corp. is a precious-metals royalty and streaming company focused primarily on gold. Rather than operating mines directly, the company provides capital to mining companies in exchange for royalty interests, streams and other contractual rights tied to future production or revenue from mineral projects.
Gold Royalty’s portfolio includes interests in exploration, development and producing properties, with exposure concentrated in the Americas. Its assets span mining jurisdictions including Canada, the United States, Mexico and other countries in Latin America.
