Gold Royalty Aktie

Well, good morning, everybody, or good afternoon as the case might be. I know we have a lot of people online today. I'm delighted that you could join us for our Annual Capital Markets Day. It's something we've tried to do every year since we formed the company 5 years ago. And this is an auspicious year for a number of reasons. The most obvious is because it is our fifth anniversary. And just a few short weeks ago, we celebrated our fifth anniversary on NYSE American.

We actually listed back in March of 2021, and we're able to get most of our team, actually, virtually all of our team at the NYSE to ring the bell. In fact, the New York Stock Exchange told us we were the only company where all of the employees were actually on the platform. It speaks to how small and mighty our team is, but it also speaks to the scalability of the royalty model. We could run a business multiples of the size that we enjoy right now with the same people.

And in fact, most of the people that you see in this picture have been with the organization almost from day 1. And so we've had really good retention, a very capable team. And as I'll go on a little later on in the presentation, bring quite a pedigree to the organization. I think that's a testament to how we've been able to scale up the business very quickly over the period of the last 5 years.

Just going a little bit over the agenda today. I'll start with some introductory remarks. I really want to talk about the macro environment, the gold price environment we find ourselves in, the equity environment we find ourselves in, the opportunities that we see in the royalty business from a macro scale. And then we'll get into quite a bit more detail with Jackie Przybylowski, our VP of Capital Markets and now Sustainability as well. She'll talk about our growth outlook and some granularity. And by all means, don't hesitate to ask questions over the course of the presentation as they might come up, so we can answer them.

I know that there's already some detailed questions that some of the people in this room want to get into. John Griffith. And I should add, Jackie joined us 2 years ago. She was probably the only addition we've really made since the IPO but her addition was timely in that we were in the point of inflecting from investing in our business to actually starting to harvest and generate positive free cash flow. And as a result, we felt we were starting to become investable for institutional investors. This was largely a retail-driven story when we IPOed the company back in 2021, and we recognized we needed to diversify our shareholder base, and we were in a position to do that simply because we were at that point where we were starting to become self-sustaining as a business.

And Jackie has done an excellent job in starting to diversify our shareholder base over the last couple of years. And she brings a wealth of experience, as many of you know, in the capital markets, having been on the sell and buy side, but she's also a mineral processor or metallurgical engineer by training. So she brings a technical depth to the organization to complement what we already have. John Griffith, our President, will provide our corporate development update.

And John was employee #1 when Amir Adnani and I were conceiving of this company privately back in August of 2020, John was the first person I called as a partner and most recently was promoted to President. He's been our Chief Development Officer since day 1, well-deserved promotion given all he's added to this company in terms of tremendous value. Jerry Baughman is not here in person, but we do have a video explaining the royalty generation model to our shareholders and how that works because it's been a significant and very integral pillar of growth among our 4 pillars of growth that we'll talk about a little later on.

And Jerry has been doing that in Nevada for close to 40 years. He's a geologist by training, a prospector by trade, and he's done a tremendous job of adding basically 75-plus royalties into our portfolio through his sweat equity at no cost to our shareholders with the potential of infinite rates of return as some of those royalties become fruitful.

And then after our break and Q&A, Andrew Gubbels, our CFO, will join us and talk about our financial situation, which is excellent right now, frankly. Just the bottom line for you, we have no debt on the balance sheet. We're generating positive free cash flow. We have pro forma cash of close to $50 million, including our in-the-money warrants. We have $150 million line of credit that's completely undrawn. So we have $200 million of dry powder. And for the longest time, we were a severely undercapitalized organization as we were investing in building out our portfolio.

That's not the case anymore. We have the ability to grow through the acquisition of near cash flowing royalties, and we're going to be competitive in that regard over the coming years now that we are in that position of generating positive free cash flow with no debt on the balance sheet. And we're also in a position to start to talk about returns of capital to shareholders, and we'll get into that in a bit more detail over the course of the presentation.

Andrew comes from us with over 20 years of experience, most recently at Aris Mining, where I serve as Lead Director and Andrew and I got to know each other a little bit better. But I knew him back from his UBS days where he led the mining group. So he brings a lot of transactional experience, a lot of mining experience to the table. And that really again speaks to the pedigree of our team. Jackie will come back with some modeling notes after Andrew. And again, after a break, then I'm really proud to have a number of our operating partners here today.

Lucas Loureiro, his title is actually a little bit out of date. As he told us yesterday, he's become Chief Operating Officer for CoreX for their Americas business. And so he's responsible for 2 very significant operating assets in Colombia and Brazil. Goldcorp Brazil, of course, is the one where we have a royalty on the Pedra Branca mine. So Lucas will walk you through the prospects and the current state of operations at Pedra Branca today. And then we have Steve Tartaglia, Director of Corporate Development from DPM Metals. DPM only recently took over Vares, which is a large silver zinc mine in Bosnia. In fact, it's one of the top 10 silver producers in the world right now as a result of the ramp-up to full production over the course of the last couple of years. They invested $1.5 billion in acquiring that mine last year and have invested significant capital in accelerating underground development to get it up to a steady state. And Steve will walk us through that.

And then finally, we have Jason Simpson, who's currently the CEO of Orla Mining. Jason will be becoming the President of Equinox when they complete the merger with Orla a little later this year, I would expect in the coming months. And Jason has done a tremendous job of building out the Camino Rojo mine, which we sold him when I was running Goldcorp a number of years ago. It was unloved within our portfolio. And obviously, they've leveraged that into a substantial company and now merging that with Equinox into what's going to be a very meaningful million ounce a year producer within our sector.

So that's the lineup today. I think it will be very interesting and exciting and particularly excited to have our operating partners here. I'm very, very grateful to them for having taken the time to fly in today and make the presentations as the case may be. So as I said, I do want to talk a little bit about the macro environment we find ourselves in. And the question we're quite often getting asked from generalists as we're going out on the road and telling the story is, geez, I thought gold would perform in the face of a calamity like the Iran war or pointed any other financial or political calamity we've experienced over the last 25 years, why isn't gold performing?

Well, gold is insurance. When your house is burning down, you cash in the insurance. It's one of the most liquid commodities available. And so when it's a risk -- risk off environment, excuse me, as we're experiencing currently, gold gets sold off like many other risk assets. It's liquid. It's a very well-recognized commodity, and it's one where you can take cash, put it on the sidelines and figure out what you're going to do next when the market finds direction. That's happened time and again.

So if you go back to the dot-com bubble, you go back to the great financial crisis, you go back to the COVID crisis and the first Iran bombing a couple of years ago, gold sold off in every one of those circumstances, but roared back afterwards because the fundamentals are undeniable. This has been a one-way trade for 50 years. If you look back to when we abandoned the gold standard, which is really what this chart shows you, gold started out at around $35 an ounce and most recently peaked out at about $5,600 an ounce.

And we've seen the purchasing power of many of our fiat currencies over the same period of time declined by 99%. The relationship is linear and undeniable. So gold's prospects going forward, we think, are tremendous given the fact that money supply can only go in one direction, which is up. It's always been the temptation when money supply -- fiat money supply is untethered from anything intrinsic in terms of value like gold, then it can only be expanded. And particularly in this environment where debt to GDP is at historical highs, 350%.

And just to give you a frame of reference, back in the last big inflation cycle back in the 1970s, it was 100% -- so when Paul Volcker took over the Federal Reserve, he could raise interest rates to 21% and tame inflation. There's no such latitude for central bankers today. They can do nothing but inflate that away, and that's exactly what they're going to do. So yes, we may have days like yesterday where the rhetoric is somewhat bearish on interest rates.

But the reality is interest rates are not going up, they're going down. They're flat on a nominal basis. But when you look at where inflation really is, we're in negative territory. So there's no opportunity cost to owning gold right now. Gold is a monetary instrument more than it is a commodity and monetary instruments trade relative to each other in the short term anyways based on relative interest rates.

Well, if sovereign debt is negative on a real basis, well, gold, which is yielding 0 is going to preserve your capital against the ravages of the debasement. And that's really what the right side of the graph is trying to show at least on nominal interest rates, but then, yes, inflation -- headline inflation is 2%, 3%, 4%, 4% most recently. But the reality is nobody in this room is experiencing 4% inflation in their daily lives.

So I think we're all experiencing double-digit inflation. That's the reality. The headline numbers that are put out by the statistic agencies are really opium for the masses. They're meant to placate us and tell us everything is okay, but the reality is -- and this is not a conspiracy theory because, again, we're all experiencing this inflation. Interest rates are negative on a real basis, and that's what's really been driving capital in the short to medium term into gold.

Money supply, the relationship, again, there is immense. And what it suggests now is we've seen a bit of a detachment between M2 money supply, which continues to expand, and the gold price, which has corrected recently. It would suggest that based on historical correlations that the gold price should be closer to $6,000 an ounce. And we know that the M2 curve is only going to go up from here given the state of our government and corporate balance sheets and the reality that they need to debase in order to get rid of the debt. There's no fiscally responsible way for them to repay it.

So central banks recognizing that there's not an opportunity cost to owning gold, recognizing that the sovereign debt instruments, the treasury bills they own are getting debased, the purchasing power of those are continuing to buy in increasing volume. And that's what we're seeing in this graph. And now we've seen a new entrant in the space that's become the biggest consumer of physical gold, which is Tether. And I think really what Tether has done is tapped into that vein of concern among younger investors about the debasement of their currencies. It's not something that necessarily was recognized by younger investors a number of years ago. They saw gold as a barbarous relic. And we actually saw until recently cryptocurrencies as a competitor to physical gold. But now interestingly, we're seeing a convergence between the 2, between owning physical gold and owning the stable coins, which I think will replace the Bitcoin and other cryptocurrencies that do not have that physical backing.

So for those of you that don't know Tether, they are $180 billion stablecoin fund. They are one of the biggest owners of treasuries in the world. So those stablecoins are backed dollar for dollar by U.S. treasuries. But if you talk to the principals of Tether, they have no confidence in the U.S. dollar. And so they're taking the interest from those treasury bills and they're diversifying into hard assets as quickly as possible. And the most principal or most significant asset that they're diversifying into is physical gold. They've become the biggest consumer of physical gold in the last year or so, and they've accumulated over $20 billion of physical gold, which they store in a private vault in Switzerland.

And they have introduced a stablecoin backed by physical gold. And there are a number of other competitors in the space offering a similar stablecoin backed by physical gold. So that is portending a convergence, as I said, between the crypto world and the physical gold world, but driven by the same philosophy that there's concern about debasement of fiat currencies and now a younger class of investors have a way to play this through their smartphones, which is much harder to do with physical gold. But clearly, having a stablecoin fund or a crypto wallet within the their smartphones has allowed them to participate in the physical gold market in a more significant fashion than they've done historically.

So if you buy into the thesis that gold is really a one-way trade. And certainly, 50 years of history has demonstrated that. The question is, where are you best positioned to get optimum leverage to the gold price. And it's not an accident that myself and a number of my Board and management who come from an operating mine development background decided that really the royalty model is where you're best positioned to do that because the dynamics that the operators are facing are twofold.

One is declining reserves, which I think is irreversible in the short to medium term, and that really goes back to 2012 when the general equity markets largely abandoned natural resources because after the great financial crisis, we had a bit of a party in the mining space. We built and we explored with reckless abandon and we saw reserves peak out in 2012 because the juniors had unfettered access to capital markets, and we saw a lot of exploration drilling, which is great from a perspective of making new discoveries, but we also saw significant cost escalation undermine the leverage proposition that investors were looking for in the equity markets. And so they abandoned the natural resources sector in terms of equities. And we've seen a steady decline in reserves in the sector.

And so with those types of headwinds, all the producers can do is cannibalize each other. And we've seen that. I was party to one of those significant corporate events when we did -- as John was as my adviser at Merrill Lynch at the time when we did the merger with Newmont back in 2019, and that was shortly on the heels of Barrick doing Randgold, and it's just been a steady cannibalization of companies within the space. When you can't grow and when the sector is not growing, all you can do is play Pac-Man. And that's really what's happened.

So it's a shrinking sector. Leverage has shrunk. And if you look at some of the bellwether stocks in our sector, all they've done in the last 30 years is grow the share count, not their production and reserves. And that's really undermined the leverage proposition. And that's why some of those bellwether stocks are actually trading at a lower share price today than they were back in the mid-1990s when gold was $250 an ounce because they just have not added reserves and production, but they've added significantly to their share count. So undermined the per share value accretion that investors are looking for.

The other dynamic, of course, is costs. Costs are escalating. We had some stability in costs last year. Energy was flat, labor costs were flat. We saw a significant escalation in the gold price. And so we saw margins expand and the producers did very well last year. But the reality is, if you look over a 30-year horizon, as you can see on the slide -- on the left side of the slide, is actually EBITDA margin has been pretty flat at about 30% until that recent surge in the gold price we saw last year.

But inevitably, what happens is costs catch up. And they catch up for a couple of reasons. We see inflation in the general economy as we're currently experiencing with oil prices surging, and we're also seeing -- I think we will see labor costs start to escalate. They've been quite stable, but they tend to have a lagging effect to metal prices.

And we're seeing across the metals complex, not just in gold, record metal prices across the space. The unions don't -- are not oblivious to that. They will start to demand higher settlements. So when you look at costs at the mine site, the majority of costs are labor and energy, and they are escalating. So that's going to start to close the gap again back to the historical norm of 30% EBITDA margin.

The other factor, of course, is we've seen a perpetual decline in grades across the sector, all the near surface high-grade deposits have been discovered. But also, when you're mining a deposit and you see low-grade material that makes money at $4,000 or $5,000 an ounce but didn't make money at $2,000 an ounce. It was waste at that time, you're going to mine that material and it's going to displace the higher-grade mineralization.

And that's not an indictment on the operators. That's just economically logical thing to do. If you can make margin on that and extend your mine life and displace the higher-grade mineralization later on the mine life, you do that. And that's inevitably going to result in higher unit costs, that dynamic. So really, where you're going to get optimum leverage to the gold price is in the royalty and streaming business, where you have complete inflation protection, but also you get leverage to the exploration expansion success of the operators.

So that brings me to the Gold Royalty story, having framed the macro environment for you. As I said, we are at an inflection point. We have been at an inflection point for the last year. The growth that we've been promising really since day 1 is happening in real time. And that's been reflective of our results most recently. In Q1, we had 160% revenue growth in the first quarter. So when you go through the more granular detail on our growth, as Jackie will do later on in the presentation, that growth is happening today and will be perpetuated over the next 5 years as peer-leading, industry-leading growth, in fact, where we're looking at about 500% growth or sixfold growth in our GEOs from our existing portfolio.

And I hasten to add that every one of our royalties are bought and paid for. We have no capital calls. We have no installment payments. So all that growth is as a result of the significant investments we've made in our portfolio over the last 5 years. Now we're very much harvesting that growth to the benefit of our shareholders on a per share basis. With a balance sheet that is absolutely bulletproof now, no debt on the balance sheet, $200 million of dry powder. So we're in a position now to start to very systematically and in a disciplined fashion, add to the portfolio.

Anything we do from this point forward in terms of the acquisitions will be either cash flowing and near cash flowing royalties that will perpetuate the cash flow growth we have in the short to medium term, not only on an absolute basis, but on a per share basis. We are very, very disciplined in our growth. We've only done 3 royalty acquisitions in 2 years. It's not for lack of trying, as John will tell you later on, we've looked at hundreds of opportunities. We bid on dozens of them. We've only actually executed on 10 of them.

And that's because we have very stringent return criteria. We have stringent geological criteria. We're looking for solid geological models with solid operators in good countries, and we're looking for ones that have geological potential beyond the reserves that have been defined when we buy it. So we're looking for leverage to not only the gold price, but to the exploration and expansion potential of the deposits that we acquire. We'll let the early-stage stuff get generated for free.

As you'll see a little later on, as I mentioned earlier on in my presentation on -- in my presentation, Jerry has been systematically adding to the portfolio at the rate of about 2 to 3.25 at no cost to our shareholders. So we don't need to expend precious capital on early-stage opportunities. We can generate those for free and those provide us infinite optionality to early-stage opportunities at no cost to our shareholders.

So I think if you asked how we got from 18 to 256, 257 royalties we have today, it's been the connectivity of our team. And as I mentioned, we have a small mighty team with over 400 years of industry experience collectively. That's a lot of years within a very small tight team. And that connectivity has allowed us to acquire transactions and do deals on an exclusive basis to get the rates of return that we expect and that our shareholders expect on our scarce capital.

So where that's left us today, as I said, 258 royalties, and I don't want to leave you with the impression that we're just trying to throw as many of these early-stage royalties against the wall and hope for the best. We have made some really meaningful acquisitions over the course of the last several years through our 4 distinct pillars of growth. And it includes royalties on 3 of the 5 biggest producing gold mines in North America, namely Canadian Malartic, Cote and the underground extension of Goldstrike, REN, which is coming into production later this year and will start to deliver cash flow for us meaningfully in the short term.

But we've also seen some of our more meaningful and more mature cash flowing royalties see changes in ownership, which is actually almost always positive because when a new owner comes in, they want to justify the acquisition price of what they've invested in, but also they want to start to refresh the asset, invest in additional exploration, invest in expansion opportunities. And that's certainly the case with Borden, which is part of the Porcupine Complex, which Discovery Silver has taken over from Newmont. It's a very mature district and Borden is a relatively mature operation, ironically one we built when I was running Goldcorp back about 8 or 9 years ago.

And then Vares, which is not a mature operation. It's a maturing operation, relatively new one, but DPM, as I said, has taken over ownership, has intensified the underground development, not only to sustain the current production rate, but they have an oversized facility on surface that they want to fill. They've got a hungry mill, and this will give an hungry concentrator, I should say, this will give them an opportunity to look at expansion opportunities. And they've got 18 years of reserve life, which is frankly too long. There's been no brownfield exploration, so they're going to ramp up the brownfield exploration and look for expansion opportunities to shorten the mine life and enhance the rate of return on a $1.5 billion investment that they made in the last year.

And finally, CoreX took over Pedra Branca earlier this year. And we just had lunch with Lucas yesterday, and he's talked about the opportunities to invest in the asset, both in terms of getting better performance from the fleet and looking at brownfield exploration opportunities and expansion opportunities over time. They want to revitalize what's a mature operation as well. When you look at our portfolio from a 30,000-foot level, very much focused on gold. As the name indicates, Gold Royalty was not a name we chose by accident. And so over 90% of our portfolio in the long term is in gold.

But in the short term, we're getting a lot of growth from copper. And that's coming from Vares. It's coming from Cozamin and it's coming from Pedra Branca now that we have a royalty, a 2% royalty on their copper production as well. So in the short term, that's delivering meaningful portions of our growth. And it's not to say that we're trying to diversify into copper, but there are certain geological settings where we feel we have a core competency. And if you look at our Board of Management, I came from Agnico back in the day, spent 12 years there as CFO, ran Hudbay for 6 years.

So I feel like I have a strong fundamental understanding of gold-bearing VMS deposits because 2 of the biggest ever discovered were in Agnico Eagle and Hudbay, LaRonde and Lalor, respectively. Also, we built a large copper-gold porphyry in Latin America when I was running Hudbay, Constancia. Alan Hair is on my board, I should add. Alan built Lalor at Hudbay, he built Constancia. And we have Alastair Still as our Director of Technical Services. Again, a lot of experience in copper-gold porphyries.

So in the course of looking at geological settings where we feel we have particular competency, namely precious metal bearing VMSs, copper gold porphyries, if we diversify organically through doing that, that's fine because we understand the geology, we think we can add value. We think we can recognize the potential more readily given our historical jobs in that part of the sector.

And then when you look at our jurisdictional exposure, over 80% of our portfolio is in Nevada, Quebec and Ontario with meaningful exposure in Brazil and Eastern Europe. And we're very, very comfortable in Brazil. As we were talking to Lucas yesterday, Brazil is a very, very comfortable environment to conduct mining.

I've had a lot of history there. Obviously, Lucas brings a wealth of experience there and he feels very comfortable having just integrated that operation into the CoreX's portfolio. And Bosnia is an EU-centric jurisdiction, and DPM has been operating in that area for over 20 years. So having the shield of a very capable operator having operated in that area for a long period of time, I think, is an important mitigant to any perceived risk of operating in what's not historically a significant mining jurisdiction.

And in terms of revenue, you can see, again, low political risk, peer leading. If you want to look at the jurisdictions that are best to operate in from a mineral potential standpoint, from a political risk and regulatory standpoint, all of our jurisdictions are very highly rated by the Fraser Institute on those key criteria. So with that, Jackie, do I stop for any questions on the macro or to let you -- okay, Jackie is saying I got to get off. So I'll leave it over to Jackie. Thank you.

We will have a break for questions after. So I just wanted to talk a little bit about our growth profile. After 5 years as a public company, Gold Royalty has reached an important milestone. We achieved positive free cash flow for the first time in Q2 2025, and we've been steadily improving our balance sheet ever since. So the conversation is no longer about inflection to positive free cash flow. Today, we're a free cash flow growth story, and we're so excited for the next chapter of that growth. If we did no additional acquisitions and if we spent no additional capital, we would still enjoy peer-leading growth.

So we've released guidance for 2026 and for 2030 back in March with our Q4 2025 results. And it's broadly consistent with the forecast that our analysts have right now. So we're estimating production of 7,500 to 9,300 GEOs, gold equivalent ounces in 2026. and that's roughly 60% growth at the midpoint when compared with 2025. Most of this growth comes from a Pedra Branca acquisition, which we announced in December and the second royalty on Borborema, which we announced in January.

So in other words, growth comes from assets that are already in production. They're just new to us. And that's meaningful growth. And importantly, it's both low-risk growth, and it's fully bought and paid for, as Dave mentioned, in our portfolio. At the spot gold price, which as of last night was about $4,266 per ounce, the midpoint of our guidance range would translate to over $35 million in revenue in 2026. And I'll note, a year-to-date spot price is below the $5,150 gold price that we used in our guidance, which is the middle column in the chart you see here.

In our case, a lower gold price is actually helpful for us on a GEO calculation basis because any of the revenues that come from copper or any of the revenues that come from the land agreement proceeds and interest will be converted to a higher GEO at a lower gold price. So with today's gold price being about closer to that $4,150 column, around, like I said, $4,266 as of last night, you could see our GEOs would actually be higher than the guidance we set earlier in the year.

At the end of Q1, we had already achieved 23% of the midpoint of our guidance range for the full year or 26% of the low end of the guidance range, and we're very happy with that result. As we had previously mentioned, we expected production to us would be very significantly H2 weighted, about 40% H1, 60% H2. So our Q1 result is well on track versus our expectations. And just to tie this back to the previous slide on sensitivity, the lower gold prices or higher copper price was not the main driving factor for our outperformance in Q1.

The average gold price for the first quarter was $4,875 per ounce, and the copper price was about $5.83 per pound. So not too far away from our base case commodity price assumptions as we showed on the previous slide. So operators that have disclosed that they will be expecting H2 weighting for their production, as you can see there includes Borden, Cote, County Line, Pedra Branca and Vares as those assets ramp up or fully optimized. And we'll hear from the operator of the last 2 mines later today.

If we achieve the midpoint of our guidance in 2026, we'll see 60% growth year-over-year. And that is a very significant growth rate but also compares very favorably against many of our royalty and streaming peers, as you can see on the left-hand side of this slide. We've also released guidance for 2030. We're expecting production of about 28,000 to 34,000 gold equivalent ounces. And as David previously mentioned, that's a 500% increase at the midpoint versus our 2025 actual result or 6x our 2025 actual result.

A few royalties -- few of the smaller royalty streaming companies released 5-year guidance. So obviously, we're comparing ourselves against some of the larger companies, and they're coming from a larger base. But we wanted to put out guidance for 5 years out, and this is the second year we've done it. And there's 2 reasons that we've decided to do that. Number one, we're very excited about that growth rate. Obviously, it stands out. It looks very compelling, but also, we're very confident in our growth rate. Over 70% of that growth, 7-0 percent of that growth, comes from the mature operations or the brownfield expansions or ramp-ups that you could see in the bottom 2 arrows on this slide.

So those are assets that are already fully permitted, built, financed. So very low execution risk to us. Sure, in the brownfield expansions and ramp-ups, we will see some assets that need expansion or optimization, but lower risk than many greenfield projects would be. If you include the satellite deposits, Cote, County Line and REN, 90% of our growth comes from those assets that we view as derisked. County Line is a heap leach operation in Nevada that's currently having ore placed on the leach pad, so we will be producing to us within a few months.

And REN, being operated by Nevada Gold Mines or Barrick doing the construction should be at first production later this year. So very low risk. We'll hear from Orla, who's operating South Railroad later today, and they'll probably tell you the same thing that they view that as a low-risk asset as well. And just to emphasize, as David previously mentioned, all of this growth is fully paid for in our portfolio. It doesn't require any capital calls, any contributions, any milestone payments on our part.

So how does this translate to revenue growth? We don't give guidance every single year. But you can see here, this is the -- on the yellow bars, this is the average, the median of the 7 analysts who cover us. So this is the consensus volume, gold equivalent ounce volume forecast in the yellow bars. We've overlaid our guidance with the little blue beam, so you can see for reference how consensus numbers match against our guidance, fairly consistent at least in 2024 and maybe a little bit more conservative in 2030.

If you take these gold equivalent ounce volume numbers that our analysts are forecasting and you multiply gold prices on top of that, you could see where the lines go, that translates to revenue. You can see a significant revenue growth over the next few years. So growing from about $18 million in revenue in 2025 was about $13 million in revenue in 2024 and growing very significantly over the next few years. Depending on the gold price, of course, it could be revenues of $100 million to $150 million per year by the end of the decade. And that translates very well to free cash flow.

Our G&A costs are expected to stay relatively flat, about $7 million or $8 million per year. Andrew will talk a lot more about that in detail later today. We have no interest payments or costs associated with debt. We're completely debt-free at this point. And we have very significant margins. Once we get to that point, our free cash flows will be very exciting. So I'm going to pass over to John to talk about our corporate development strategy next.

Well, thank you, everybody, for coming today, and good morning from -- for those in the Eastern time zone and for those in other parts of the world, good afternoon. And as Dave mentioned, I've been part of the story, the Gold Royalty story from day 1. And certainly, we want to acknowledge and thank the Gold Royalty team for their contributions to our amazing story. The high-quality assets that we've acquired have transformed this company to positive free cash flow, peer-leading growth and an enviable low-risk portfolio in just 5 short years.

Just as important are the transactions that we didn't complete. We stayed disciplined, and we have focused on double-digit returns in good jurisdictions. Often, this means that we're not competitive in broad processes. And so most of our growth has come from bilateral or quasi-bilateral relationship-based transactions. Gold Royalty was formed in 2020 with 18 royalties on nonproducing longer-dated assets, and we completed our IPO in March of '21.

We then used a strong currency post IPO to bring high-quality assets, including Canadian Malartic and REN, revenues and diversification into the asset base. Our growth slowed after the initial burst of activity in 2021. As our valuation multiple lagged the initial IPO highs, accretive transactions became more challenging for us to complete. We continue to pursue acquisitions, but we've lost in nearly every competitive process. The transactions that we did complete were all completed, as I said, on a bilateral or quasi-bilateral basis based on the connectivity of our experienced team.

During this time, we remain disciplined, completing fewer transactions to ensure that we pursued only accretive transactions. We're often asked what we're seeing in the market today and if there are still growth opportunities in the current environment. Even though commodity prices have softened this year, let's not forget that we continue to see gold, silver, copper and other commodity prices extremely high in historical context.

Companies which currently operate mines are generally enjoying high margins and strong balance sheets today. And it's true that we are seeing mining companies selling fewer royalties and streams for balance sheet repair or capital raising for other purposes. Although it still does happen, particularly when there is a value gap between the operator and royalty streamer that provides a compelling arbitrage opportunity. What we are seeing more of today are opportunities to acquire third-party royalties. This could include corporate or individual royalty holders.

Our team in Nevada is very well connected and has been active in sourcing third-party royalties held by families in addition to the generative work that we'll talk about later. For example, we recently announced the acquisition of an additional royalty on REN. We've also recently acquired royalties from larger institutions, namely the Pedra Branca royalty that we acquired from BlackRock World Mining Trust plc, which was announced on December 8, 2025, and the second royalty on Borborema from Dundee Corporation announced January 14, 2026.

Third-party royalty holders may be more willing to monetize existing royalties in the current commodity price environment. Acquiring existing third-party royalties from BlackRock and Dundee Corporation are examples of the different risk return priorities of different groups in the sector. While Gold Royalty is prioritizing the acquisition of royalties on assets which are already cash flowing or nearly cash flowing, many other financiers, including private equity, institutional investors and other corporations are willing to take on earlier-stage risk in the hopes of greater returns.

We don't always view these groups as competing with us for royalties, but we often see them as complementary to our own portfolio construction objectives. The January Borborema royalty acquisition added to our royalty on a cash flowing successful asset. And it was also the milestone first transaction completed under the strategic alliance that we have with Taurus Mining Royalty Fund LP, initially announced on April 24, 2024.

Gold Royalty and Taurus have the right, but not the obligation to co-invest at between 25% and 50% of any gold or precious metals royalty or stream over $30 million in size and would retain the right to first offer on any co-investment transactions. To date, the relationship has been extremely positive, and we have shown one another opportunities on a regular basis. And we're certainly thrilled to have completed our first transaction together with hopefully many more to come.

Growth through Gold Royalty's 5-year history hasn't been a steady flow. There are some periods where we've grown rapidly when market conditions permitted and other periods of slower growth. Through all parts of the cycle, we have remained importantly disciplined and focused on accretive growth, and we will continue to set a high hurdle for ourselves in terms of rates of return as well as quality of asset, operator and jurisdiction. We're very comfortable waiting for the next accretive opportunity.

At the moment, our growth pipeline is active, but is mostly focused on smaller, more bolt-on transactions, similar to what you've seen from us recently. That is not to say that we don't have growth. Through all points of the cycle, we continued to add early-stage royalties to our portfolio. We generated 56 royalties since the acquisition of Ely Gold Royalties in 2021. And as at our Q1 reporting date, May 6, 2026, we have 38 properties subject to land agreements and 6 properties under lease generating land agreement proceeds.

Including the early-stage assets generated by predecessor companies such as Ely Gold Royalties, Gold Royalty has over 200 royalties in the exploration and advanced exploration categories of our portfolio. We see tremendous option value in these royalties. They may be early stage today, but if only a few of them were developed into cash flowing mines, it's a huge win for us. Coming from an essentially 0 cost basis, these represent potentially infinite upside. The market doesn't give us credit for most of these options today.

In fact, over 200 royalties in the exploration and advanced exploration categories, and NAV is explicitly calculated and assigned to very few. Of the 7 analysts who cover Gold Royalty, some have modeled NAV for Tonopah West in the yellow advanced exploration category with a median NAV of USD 30 million of the analysts who have a reported value. And Whistler, also in the yellow category with a median value of USD 20 million NAV of the analysts who have reported value.

Analysts also have a median USD 260 million NAV classified as "other." -- but still, this would work out to an average of just over USD 1 million per exploration and advanced exploration royalty, far less than these assets will be worth if even a couple of the projects are developed into mines. Investors often ask about the royalty generator model because it's such a unique competitive advantage to Gold Royalty. He wasn't able to join us in person today, but we have a short video to show you where Jerry Baughman, Vice President of the Nevada Select subsidiary and our colleagues talk through the royalty generator business model.

Hello. My name is Ryan Hass, I'm Director of Finance at Gold Royalty, and I'm here with Jerry Baughman, VP, Nevada Select, wholly owned subsidiary of Gold Royalty based in Reno, Nevada. Jerry, maybe just to start, if you could tell us a little bit about yourself.

I'm a geologist with Gold Royalty Corp. and was also the co-founder of Ely Gold Royalties, and we started the royalty generator model.

And for those that don't know, if you could just expand a little bit on what the royalty generator model is.

Well, we generate claims, mining claims and projects throughout Nevada. And once we consolidate those projects with a data package, then we go out and look for people that want to do the exploration. and look for deposits.

Effectively, what you're doing instead of buying royalties, you're creating them or generating them based on the claims that you stake.

Exactly.

As part of the royalty generator model, you mentioned vending or optioning these claims out to mining companies or exploration companies. If you can just go a little bit more in detail on what exactly that means?

I've been doing this for 40 years. So we have like a huge Rolodex of all the people that are working in Nevada. So we actually have great contacts with these people. So once we have a project for them, we start showing them all the various projects that are available and the data and then we try to make the project fit with what they're looking for.

When you vend out or option out these properties, what does the option agreement look like? How is it structured? And what are the terms?

Usually, they're 4 to 5 years back-end loaded. And once we get our final payment, we get a royalty deed, they get a deed to the property. And at that time, we also ask for advanced minimum royalty payments to make sure we can continue with cash flow on the property until production starts.

So these option payments are effectively installment payments that the exploration company is paying over a 4- to 5-year period, whereby we are retaining a royalty once the final payment is made.

Exactly.

And you mentioned advanced minimum royalty payments, which you also collect. If you can just explain to the viewers exactly what that is and how it differs from an option payment.

Well, once we get our royalty deed, we want to continue with the cash flow. So the advanced minimum royalties are paid until actual production starts. So any advanced minimum royalty payments that get paid, they can deduct that out, but not any of the option payments. So once they get to the point where they've had some time to explore it, hopefully, they've made a discovery, then they want to continue with the project. If they don't continue with the projects, then we get the project back 100% and look for a new company to vend it to.

So effectively using the royalty generator model and these option agreements, you're generating royalties at minimal cost, the cost of staking the claims plus receiving the cash flow from the option payments in the advanced minimum royalties. So why would this structure appeal to an exploration company versus having them do the exploration from scratch?

Well, especially a company that's coming in from Canada or other parts of the world, Australia, and they don't really have a presence in Nevada, but they want to. I've been doing this for 40 years in Nevada. So I have huge amounts of experience. A lot of these people actually know me or know of me, so they contact me looking for new opportunities. And once they get established at some point, they might want to generate their own projects. But typically, the new people that haven't been here for long, they need a way to get into the industry and to get projects. So they typically come to me.

So effectively saves them time and capital by using you as the middleman to effectively vet the claims and the projects.

Exactly.

So maybe if we can go just to the beginning of the royalty generator model, which is really identifying opportunities and staking claims. Maybe just for those that don't know, if you can just briefly explain how to stake claims in Nevada.

There's no limit to how many claims you can stake, but a mining claim is 1,500 feet long by 600 feet wide, and you have to put a location monument somewhere down the center line of the claim, and you can locate as many claims as you want.

And do you need to go into the field to do this? Or can you do this at that county recorder's office?

You definitely have to go to the field, and you have to put the monuments up and you have 60 days after location to put your corners up and 90 days to file with both the county and the BLM.

And in general, what does it cost to stake claims in Nevada? Is it expensive?

Recording fees all in for both agencies is about $250 per claim. And once the claim is established, it's about $200 per year for the annual fees.

So fairly inexpensive. And again, as part of that royalty generator model, the staking fees being minimum and inexpensive, generating a royalty off the back end. It provides optionality to the portfolio. Maybe just going into identifying opportunities. When you're looking at claims or prospecting claims to stake or acquire, what is it about claims that makes you want it? What makes them attractive? What do you look for?

Everything. Our database is massive. We are actually following 833 properties as of this week, and that kind of fluctuates when we come across a new opportunity. So we have all the information in there to be able to continue looking at the data, making sure that it's exactly what people are looking for. So there's multiple sources of information. And I don't think the only companies that probably have more information on exploration projects is maybe Newmont and Barrick.

Other than that, we probably have just as much data. So it's just going through that data and spending decades to get to this point to know where all the great projects are. And I've already identified 833 projects that we're actually watching to see if those come available. And the minute they come available, we snap them right up.

So effectively using your 40 years of experience in Nevada, leveraging your extensive network and experience that you've had to find the opportunities that others may not. What are some of the challenges in staking claims in Nevada?

Yes. I mean I don't have a lot of experience in other parts of the world, but access is amazing, basically 12 months out of the year. So I don't really think there are any. That's why Nevada has such a high rating on the Fraser Institute, one of the #1 jurisdictions in the world. I mean not only permitting but access, major gold discoveries here is the best, most premier place to be exploring for gold.

And the current projects that are highlighted with Gold Royalty that your kind of like make you proud and put a big smile on your face when you're talking about them.

REN, Goldstrike, the biggest gold mine in like North America, already produced somewhere around -- I know it's hard to even know how many ounces they produce. You'll read between 50 million and 70 million ounces. We have a part of that action. So I'm pretty excited about that. Just came back from there, what, 2 days ago. So a huge amount of activity there, big intercepts, big -- who knows what the upside potential is there.

I really like Rosebud. Rosebud was a really good project. It was one that actually literally got there, and somebody was taking claims, but they were there too soon. and called my lawyer and my lawyer was working for them. So I had to call another lawyer. And I said these claims don't come open until noon, and it was like 10. So I started at noon and got the whole deposit.

Just to close, what are you looking at in the next 5 years? What are the biggest opportunities in Nevada? And where will you be focusing kind of a lot of your work?

Well, the Carlin gold systems are always the biggest and the best. So I always have a tendency to kind of go down that path. But this new big discovery in Beatty by AngloGold is something that I was quite familiar with the epithermal model, and I have a lot of situations where I'm seeing opportunities there, and Anglo is actually looking at some of those opportunities presently, and it fits that model at Silicon. So that's such a huge discovery that I think the opportunities in Nevada are just it's just absolutely amazing.

That's great. No, Jerry, really, really thank you for your time and sharing your experiences and your knowledge and what you do for Nevada Select and Gold Royalty under the royalty generator model. As always, it's great to come down to the sites as we are this week, and we appreciate your time.

Thank you very much.

Thank you.

So really want to thank Jerry and Ryan and Alastair and Sam for putting that together. That was great. We have a few minutes for questions. So if anybody has any questions for Dave or John or myself or if there's anything we can answer on the video, please feel free. If anybody online has questions, you can submit them through the app. Heiko has got a question.

I mean just conceptually, obviously, interest rates have -- it looks like interest rates are going to stay longer -- higher for longer. What are you seeing with the discount rates that your peers and you are applying to acquisitions? And where do you see that trend going over the next couple of years?

I think the question is really what commodity price to plug into your model. I don't think discount rates have really changed. I think the challenge is with what has been quite a rapid ascent in the gold price of late, if you were running consensus through your models, you are going to be out of the picture from a competitive dynamic. So what we end up doing, we'll run a very robust set of sensitivity scenarios around pricing.

And I think we've hopefully made it very clear to everyone in the room and online our disciplined approach to valuation, our intent to achieve double-digit returns for our investors. And ultimately, we're going to stick to that. That's our philosophy. And we've seen transactions done that have implied negative IRRs on some of the assets that have changed hands. We've looked at those assets. We looked at them. We like them, but not at the price at which they changed hands in terms of a value proposition for our stakeholders.

Thanks very much. We're going to take about a 5- to 10-minute break, grab some coffee outside, and we'll come back to talk about finance.

[Break]

Just before Andrew Gubbels starts his presentation on the financials, we did have one other question online. And sorry, there's sometimes a bit of a lag on the online question, so we didn't see it before we broke. But the question is, do we have any plans for Canadian listing? This would make it easier and more cost effective for Canadians to invest in Gold Royalty.

At the moment, we do not have plans for Canadian listing. We do consider that from time to time. Our G&A, we are trying to keep it fairly low to keep our cash flows as high as possible. So to avoid additional listing fees and complications, it's something that we haven't pursued at this time. We're also very proud of the trade liquidity that we have on the New York Stock Exchange American, and we feel like a secondary listing would probably not benefit from that same trade liquidity.

Do recognize that it is -- as a personal shareholder, I do recognize that it is sometimes a bit of a challenge for Canadian investors, particularly retail investors to invest in Gold Royalty and I do appreciate those that do go through that challenge to invest in us. But a lot of our shareholder base, particularly the institutional shareholders, is less of an issue for and the U.S. retailer or international retail, it's maybe less of an issue for us.

So I appreciate the question. It is something that we continue to consider, but we don't have any plans at this time. And please keep your questions coming. If you have any others, pop them in the chat window, and we will address them when we see them. I will pass the presentation over to our CFO, Andrew Gubbels, to walk through our financials. Thank you.

Okay. Good morning, everyone. When I sat down to think about the Capital Markets Day, I reflected on what happened and what we've done in the past year and looked at what we presented a year ago, and it was amazing how much things have changed. Despite a pullback in mining and royalty equities more recently, our enterprise value for Gold Royalty has nearly doubled from the last Capital Markets Day, so a year ago. This was substantially higher a number of months ago, but even doubling is an achievement in terms of growth of our enterprise value.

Over that period of time, we completely refinanced our debt, which at this point last year, we had $67 million of convertible debentures and revolver outstanding. Since then, we raised over $100 million in new capital and equity, in particular, we added 2 core cash flowing assets to the portfolio, that being Pedra Branca and another royalty on Borborema. And as a result, we find ourselves in a much stronger financial position.

In fact, with the upsized credit facility, and Dave mentioned this at the outset as well, which is now $150 million available from Bank of Montreal, National Bank and Royal Bank. $14 million of cash and growing every quarter on the balance sheet and approximately $33 million in prospective proceeds from in-the-money exchange-traded warrants, we have approximately $200 million of dry powder really to allocate towards capital activities or other allocation initiatives.

Gold Royalty has never had such a strong financial position in its history. What's more, we now have a portfolio of cash earning assets and near-term development assets that'll self-sustain the company for many years to come. In 2024, so 2 years ago, we initiated a program to simplify the company's corporate structure and remove redundancies while also initiating a dedicated FP&A function and a budgeting and authorization protocols.

As a result, we've been successful in maintaining relatively steady operating costs over the past 8 quarters. That's the yellow line you see over the number of quarters in the graph. This cost discipline was particularly important when our portfolio was less mature, and we had fewer quality cash-generating assets. Now through a combination of organic and targeted external growth, Gold Royalty has reached a point where it's generating meaningful operating and free cash flow every quarter.

In fact, we've recorded record revenue and adjusted EBITDA with growing margins over the past 4 quarters. In Q1 of this year, Gold Royalty actually surpassed a number of its peers and became a sector leader in terms of cash operating margins. I think this is an important point. It's taken us a long time to really get to a point where we're generating meaningful cash flows and actually, those cash flows are hitting the bottom line. This isn't bottom line. This is operating cash flows really.

But as was mentioned earlier, and I'll talk through later on without any debt on the balance sheet, without any capital commitments, it does fall to the bottom line. So even though a number of our peers have more gross revenue than Gold Royalty at this stage, but not for long, given our growth profile, our comparably lower cost of sales, we've got one stream. It's all royalties for the most part. And low G&A means that we're turning every dollar of revenue into more operating earnings than a number of our competitors. The transformation of our -- of Gold Royalty over the last 2 years is further illustrated by the evolution of our balance sheet. We never spoke about debt being a particular issue in the past, a year ago.

We did, however, primarily use debt in the form of our revolver as well as convertible debentures given that they became in the money throughout the period that we had them, arguably debt or equity, but you can -- given the fixed charges involved, you can call it debt to finance the acquisitions of the cash-generating assets to really supplement the existing world-class development portfolio. And those were Cozamin, Borborema and Vares in particular.

In 2025, this past year, we're able to equitize those convertible debentures, repay our revolver completely and then also add another top-quality royalty in Pedra Branca, while also seeing assets in our portfolio such as Cote ramp up. So a number of factors which contributed to this deleveraging to put us in a very strong position.

Moving forward, we'll principally look to use the cash on our balance sheet and draw on our revolver for corporate development initiatives while repaying any outstanding debt if we do draw down the debt with quarterly free cash flows. This is that self-sustaining flywheel model that the sector's largest peers currently employ. It's taken us a few years to get there, but now we've finally made it, we can enjoy some of the benefits that the larger peers do in the market in terms of financing our growth.

Now Gold Royalty's relative lack of debt outstanding is an advantage. I benchmarked leverage against the junior peer set here. No debt service costs means that we generate more free cash flow for every dollar of revenue than many of our peers who carry debt on their balance sheet. And as I mentioned before, yes, debt will be utilized, revolver will be utilized for corporate development purposes with the view of repaying it in the near term.

So this debt figure will fluctuate over time. But at this period in time, in particular, we have one of the strongest financial positions among the peer universe. We're also relatively better placed to use available leverage to continue to grow the company as compared to our peer set right at this period of time.

Now you've heard from Jackie already about growth, but I'll emphasize it again. Gold Royalty does have a market-leading organic growth profile. To show this another way from what Jackie had shown previously, we just simply benchmark the average of broker revenue estimates for the small-cap peer set from 2026 to 2028 and looked at the compound annual growth rate. Gold Royalty is once again at or near the top, and this is over a 3-year period. If there were estimates, more reliable estimates 5 years out, I know it's more tricky to do that. We put out 5-year guidance, and you saw that graph that shows how strong our growth is over a 5-year period.

I'm very confident that Gold Royalty would have an even higher CAGR and would be at the top of the peer set. That's certainly when we start to see assets such as Odyssey coming into the mix and contributing in a more meaningful way. What this growth means from a financial perspective is the potential for even higher operating margins as operating costs are kept in check, which we've proven to be able to do the past number of quarters, even more cash and leverage available or said another way, an even better financial performance in the future and an even stronger financial position.

Now finally, I'll just add another point, a unique advantage of Gold Royalty relative to some of the other peers in the universe, especially on the smaller end of the spectrum is a strong market presence that we have. With 7 research analysts covering Gold Royalty and approximately $10 million of shares traded every day on the New York Stock Exchange, there's a meaningful market for Gold Royalty and its investors.

In fact, it takes fewer days to turn our float than any other of the peers in the sector, and that includes the majors. One of the reasons why we listed on the New York Stock Exchange at IPO was to provide investors with a well-followed liquid royalty opportunity, and that's certainly what you have in Gold Royalty.

Just to sum it up from a financial perspective, -- in Gold Royalty, investors are really getting a leader in many categories. We're a leader in margins, as I showed previously. Balance sheet, our financial position is amongst the strongest of our peer set, top line growth and really bottom-line growth, which most of our organic growth will fall through the bottom line without capital commitments and trading liquidity. So with that, I'll conclude on the financial section and pass it back to Jackie.

So I promise I'm not going to spend too much time on this. But before we wrap up the management portion of the session, I did want to highlight a few modeling notes to the analysts, the associates and the investors who have joined us today.

So just to talk about a few assets. We're going to talk about Borborema, REN, a little bit about Granite Creek and then Tonopah West. So to start with Borborema. Borborema operated by Aura Minerals, in our most recent survey of the 7 analysts that cover us, we saw a fairly consistent trend. Many of you are forecasting declining production beginning in about 2029 and into 2030. We just wanted to highlight that the operator Aura Minerals did announce on February '26 that it has received the full permits to relocate a highway that crosses a portion of the ore body, the Borborema ore body. And under the S-K 1300 rules, the receipt of that permit did allow Aura to increase the reserves at Borborema by about 82% or 1.5 million ounces of gold. Our royalty covers the entire ore body, and that includes the new area unlocked by the highway relocation, and the ore body at Borborema remains open along strike and down dip. So concurrent with the highway relocation work, Aura has committed to doubling capacity of the Borborema plant to 4 million tonnes per year, and that capacity expansion is expected to approximately offset the step down of a portion of our royalty, which leaves production to us relatively flat between 2028 and that 2029 and 2030 period.

Just quickly on REN. As John has already mentioned and as we press released on Monday, I just wanted to reiterate, we have acquired an additional royalty on REN, 0.1875% NSR, that was USD 6.25 million, which brings our total royalty coverage to 1.6875% NSR and a 3.5% NPI. REN is the new ore deposit at Goldstrike underground and is a key expansion project at Carlin, which is part of Nevada Gold Mines as you all know. As of March 31, according to Barrick, the project spend was about USD 193 million, and that includes $26 million spent in Q1. Of the total estimated capital cost of $410 million to $470 million on a 100% basis. REN will start production later this year, and it will reach its full production run rate sometime in 2027. However, REN does not start to pay us until the capital is recovered, the initial capital for the project is recovered. It's a low capital intensive project, as I mentioned, $410 million to $470 million. And that's thanks to the fact that it's a satellite deposit around existing infrastructure. But please keep in mind that there will be a delay before Gold Royalty sees revenue from the asset. A lot of the analysts are assuming production to us in 2027, that's probably too soon. So 2028, 2029 is more realistic for Gold Royalty.

And similarly with Granite Creek, we have a 10% NPI and the operator, i-80 will recover the initial capital before our NPI royalty is paid. So we assume that Granite Creek is a modest contributor to our 2030 guidance but not significantly before that. In the meantime, i-80 is expected to continue development and optimization of the complex. Following the extensive recapitalization plan that was completed in Q1 2026.

And Tonopah West, we talked about Tonopah West a little bit earlier today. It's a great example of the power of our royalty generator model. Jerry staked this claim in 2021, vended it to Blackrock Silver, and Blackrock Silver, as you can see by this Gantt chart is moving the project through permitting and then construction. It could be in production by about 2029 or 2030. We do assume a modest contribution from Tonopah West in our 2030 guidance. And as John mentioned, there's not many of the analysts who have modeled Tonopah West yet, but it is, in our view, upside to those consensus estimates.

Finally, one other housekeeping item before we move into the next Q&A session. Historically, Gold Royalty has pre-released the revenue results ahead of earnings by a few weeks normally. As we've grown larger, the timing of the information that we receive from some of our newer royalties and our newer operating partners means it's now challenging for us to provide that information meaningfully before financial results. And so as a result, we've decided beginning with the second quarter of this year, we've decided to discontinue the practice of pre-releasing our revenue results, effective in August. So our full financial results will be released Wednesday, August 5, after market close, and we'll have a conference call on Thursday, August 6, but there will not be a revenue pre-release this quarter and for the future quarters until you hear otherwise from us. Just nothing to read into that, except we want to make sure we're providing you with the highest quality information as we have it. So please reach out if you have any questions on that.

But with that, we will move to Q&A if there are any questions on Andrew's presentation or anything you've heard so far today? And again, if you have any questions online, please feel free to type them into the text box.

Can you talk a little bit about Vares under DPM. I know that there was a little bit of an operational reset under the new operator. And I'm just wondering if you guys have any insights on the current pace of that?

DPM is going to be presenting after the break. So maybe a question to ask them. I know we've been really happy with DPM's results so far. And we've seen them consistently overdeliver to what they've guided us. So in our view, they've done a terrific job. I don't know if anybody else has anything to add? Definitely, they'll address that, I'm sure.

We'll take another quick break, assuming there's nothing online. We'll take another quick break. So maybe we'll come back here around 11:00, if that works for everyone, 11:00 Eastern time. Thank you.

[Break]

So we're very, very pleased to have 3 of our operating partners present today. And I'm going to echo what Dave said earlier, thank you guys for taking time out of your schedules to come and present at our Investor Day. Our first presenter, I think, will be very interesting for everyone, Lucas Loureiro. He's now COO at CoreX. CoreX is not a company that's probably as well known to many of you as some of the publicly traded companies. So it's a real privilege to have Lucas come and tell us a little bit about CoreX and then, of course, to tell us a little bit about Pedra Branca. Thanks, Lucas.

Thank you, Jackie. Good morning, everyone. And thank you for the Gold Royalty team for having us here today in the Investor Day. Congratulations, Dave and the entire team for celebrating 5 years. It has been a tremendous journey. I'm sure you guys are going to achieve much more to come. I'm Lucas Loureiro, Chief Operating Officer for the Americas for CoreX Metals and Mining. Shortly after the announcement of our acquisition of the Carajas copper portfolio, Gold Royalty also announced the acquisition of the Pedra Branca royalty. They happen to close first. Perhaps this is a testament of the efficiency of the royalty model.

We do appreciate the vote of confidence that, that transaction, the acquisition of the Pedra Branca royalty shows, both in the asset, in us as the operator, but also of the geological potential of the region. Over the next few minutes, I will share some insights about who we are. The asset we now run and our plans to grow it. I'll let the notice speak for itself, but one important thing to notice upfront is for investment purpose analysis, you shouldn't rely on information being disclosed by Gold Royalty, we are a private company, and the information being presented here should be taken only directionally.

So who's CoreX. As I mentioned, we're a private company, a global industrial group, dual headquarter in Amsterdam, Netherlands and Istanbul, Turkey. We operate in 25 countries, roughly 10,000 people work very hard to ensure the track record that we have showed, and we boast today over $2 billion in revenue. But what matter most in this room is not only those numbers, is the fact that we are a long-term owner operator with expertise and access to capital to continue growing. We're not new to this.

Our founder, Robert Yildirim, has spent about 35 years building metal, sports and chemicals at Yildirim Group whose roots date back to 1960s. He has established CoreX in 2024 to carry the platform forward. You can see the pace accelerating in the time line. In 2024, we did the CMB, a nickel DSO mine acquisition in Ivory Coast. Cerro Matoso, a ferronickel operation in Colombia and of course, Carajas in Brazil. Mining is at our core and our goal is to be a top 100 global miner within 5 years.

Today, in our platform, there are 4 key businesses. Yilport is a top 12 global container terminal operator in the world with 22 terminals across 12 countries, mainly Latin America and Europe. We hold a 12% strategic stake in CMA CGM, the world's #3 container liner and logistics company. In Chemicals, we're #1 U.S. chrome and chemical producer, and we're building a 0.5 million tonne soda ash plant in Kazakhstan. The point of all this diversification is simple. It gives us scale, real cash flow and deep operating know-how to put behind assets like Pedra Branca. In mining, we not only operate process develop, but we also create value in logistics and trading as well.

Now let me bring you back to the Americas, where we have most recently put capital to work. What we're good at is running mines and processing plants at scale. We buy undervalued complex assets often countercyclically, and we improve them. We have a disciplined approach to capital deployment. You can see that our 2 recent moves, we acquired Cerro Matoso, which was, at one point, the largest single site nickel producer in the world. We integrate our operations at the end of December. Right now, it's doing quite well. We have been able to change the metallurgical process to improve the product quality. We have lower cash costs and we have been able to increase production despite declining grades.

In April 2026, we closed the acquisition of Carajas copper business from BHP now operating as CoreX Copper Brazil. In each case, the operations, the team, the contracts, licenses, all carry forward without interruption. Now to the ground itself. Carajas is a highly prospective copper gold province and if I may say, underdeveloped. And our position there is district scale. Roughly -- we have roughly 35 tenements and more than 65 exploration targets. The way we run it, we'll keep it low cost and capital efficient, one central plant per hub processing ore for many deposits. Today, we have Antas Hub operating the West East, over time, there is potential for a second hub in the West underpinned by Pantera. We sit right next to Vale infrastructure. The rail line to Ponta da Madeira port is nearby. That's a world-class logistics that we don't have to build ourselves. Now our royalty is, as you guys know and was discussed before, Gold Royalty holds a 25% NSR on gold and 2% on copper for both Pedra Branca, East and West.

Both of those deposits sit at the heart of our investment plans. This table is how we show the resources, reserves and how we're going to sequence growth. We are producing today at Pedra Branca East. We have a high-grade satellite deposit in Santa Lucia, that's shovel-ready, fully engineered ready to start construction in 2027. We have Pedra Branca West in pre-feasibility stage. It's the largest resource in our East Hub. Behind them Pantera, Grota Rica and Circular and dozens more targets. Just one caveat for the room with analysts, those contained metal figures are our estimates. They are not JORC or NI-43-101 compliant, and they may differ from previously published disclosures. We're actually going over exploration program to expand on both, expand on Pedra Branca, and we may have for internal uses updated MRR by middle 2027. So talking a little bit about the core, the reason why we're here talking is Pedra Branca East and Pedra Branca West.

But Pedra Branca East is established on the ground copper gold mine, first began production in 2020, achieved full production in 2022 and fed existing plant in Antas. It produced about 9,400 tonnes of copper in the year prior to June '25, which is under a previous ownership. Our plan here is straightforward, is we want to debottleneck the producing core this year and grow output next year. We are implementing several initiatives in terms of increasing mine fleet availability, creating stock -- strategic stockpiles so we can focus on processing also high-grade ore. And the ore body is still open at depth and along the strike. So there is room to extend it via the exploration plan that I just mentioned.

Beyond the core, there are three strategic or three clear moves that we will pursue. First, we want Santa Lucia very high-grade deposit with over 2.4% copper and it's already permitted and engineered. We plan to start construction around 2025 with production in 2028. Concurrently, we will expand the Antas processing plant from 0.8 million tonnes of throughput to about 2 million tonnes a year to take that new feed. And third, we look forward to advance Pedra Branca with potential first production in 2032. So the ground your royalty covers is not static. Pedra Branca is the core, we intend to grow. Pedra Branca East is the core we intend to grow. Pedra Branca West is the real pipeline project, not just a dot in the map.

Now we're also very focused in our responsibility as an operator, not only in Para, but across the world. This is important because for a royalty such as a long life mine royalty. It's very important that we maintain our social license to operate. In Carajas, we continued the practice already established by OZ Minerals and BHP. Around 95% of our tailings water is reutilized, the depleted Antas pit is being repurposed as an engineered tailings facility and particularly for Brazil, given some incidents in the past how to manage the tailings facility is very, very important. But we also have long-running community programs across a host of municipalities in Para.

As a corporate side, all this sits within the group framework. We have Net Zero emission target by 2050. We report within the EU's framework of CSRD, and we have a very active Chief ESG officer that is directly engaged in supporting our operations. So responsible operation is what will ensure us to remain both in Brazil and Colombia and throughout our other operations, operating for many years to come. So what all that means to you, three things. One continuity. The operation and license, the team are carrying on day-to-day operations, no disruptions there. Capital, we have access, we intend to invest and grow as a long-term owner. We're not here just to flip the asset quickly. And there is a clear plan on growing production, focus on first debottlenecking Pedra Branca East, bringing Santa Lucia into production, and advancing the development of Pedra Branca West. For the ground, I think that adds up to long durable production of both Pedra Branca, East and West.

With that, thank you, and I'm happy to take any questions or wait until the Q&A break.

No, we could do questions now for Lucas. Thank you very much, Lucas. That's great. Does anybody in the room have questions?

Just given the expansion that you're undergoing here, is there a scenario where maybe this royalty is not paying in an interim period if you decide to focus on the Santa Lucia because just given that it's higher grade, do you prioritize that ore over Pedra Branca East and there's a gap, the royalty is not paying?

No, because the way we're developing the project as shown in the slide, just from memory, it's about 5.3 million tonnes of reserves from Santa Lucia. We have to size the mining operation as well, and we're not sizing to produce 2 million tonnes a year. So that is a natural bottleneck. And the way we view too is we cannot turn off Pedra Branca for several years and then start producing. So our plan is run both operations concurrently and focus on blending. But we expect Pedra Branca East, we will be producing about 800,000 tonnes. So in other words, the existing line will take Pedra Branca East production and then the additional line will take Santa Lucia ore.

I'm not seeing anything online, but I will revert if something comes through, but thank you very much.

Our next speaker today, we're going to have Steve Tartaglia, he is the Director of Corporate Development for DPM, Dundee Precious Metals as it was formerly known. We have the only stream in our portfolio is the copper stream on Vares, and we are thrilled to see what DPM has done with Vares so far and the improvements that DPM has made. And I'm sure Steve will tell you are continuing to make going forward. So thank you very much, Steve, welcome.

Okay. Great. Thanks very much for having me and give me the opportunity to tell you a little bit about DPM Metals. And our Vares project, specifically in Bosnia.

Before we begin here. We may be making some forward-looking statements. Investors are cautioned not to place undue reliance on such statements. Perfect.

Okay. So for an overview on DPM Metals. DPM is primarily a European-based precious metals producer. We operate a portfolio of assets in Eastern Europe, our flagship asset has been the Chelopech gold mine in Bulgaria. The Chelopech mine has produced approximately 200,000 gold equivalent ounces over roughly the last 2 decades. It's been the backbone of the company for the last 2 decades, and you would think that an asset that's been producing at that level for so long, might be a little bit long in the tooth. But actually, I believe Chelopech's best days are ahead of it, and I'll get to a little bit more about that in the future.

We also operate the Ada Tepe gold mine in Bulgaria. This is an open pit mine that's actually nearing the end of its mine life. We'll begin remediation activities on Ada Tepe towards the end of this year. The third asset in our -- producing asset in our portfolio and probably most of interest is the Vares silver mine in Bosnia. We closed the acquisition of Vares in September of 2025. 2026 is very much a transition year for the Vares silver mine, whereby we'll be ramping up to design throughput of 850,000 tonnes per annum. In addition to our producing assets, we also have a high-quality development pipeline. The kind of the jewel in our crown there is the Coka Rakita gold project in Serbia. We -- Coka Rakita was an organic discovery that we made in 2023. We've advanced it through the feasibility stage in 2025, and we're excited to move that forward through to construction in 2027 with first gold pour towards the end of '28, early '29.

In addition to our development pipeline, we also have a peer-leading exploration portfolio. The team at DPM has made 4 major discoveries since 2023, all of which are located within close proximity to our existing assets. The first major discovery was Coka Rakita, which I've already talked about. Feasibility stage project with about 1.5 million ounces at 6.4 grams per tonne. So very high return high-margin projects in our portfolio.

The next major discovery was made in mid-2025. We call this asset Dumitru Potok. It's located within the Coka Rakita gold camp. We discovered that, as I said, in mid-2025. We advanced to a maiden mineral resource in December of 2025. That resource was just under 5 million gold equivalent ounces. And we're currently undergoing an intensive drill program at Dumitru Potok, and the Coka Rakita gold camp throughout this year. We expect this camp to meaningfully grow in terms of the size and scale of the resource. And as a company, we see real potential here within this camp to achieve what I would call a Tier 1 status being -- depending on how you define that, but loosely call it, 0.5 million gold equivalent ounces over 10 years. We're very excited about what we're finding into Coka Rakita.

The third major discovery we announced last year, it was a brownfield discovery within our Chelopech mine concession in Bulgaria. We call this one the Wedge Zone. There's two aspects of this discovery that are quite exciting to us. One is the proximity of the discovery, the existing workings at the Chelopech mine. And the second is the grades we're seeing. So right now, the grades at the Wedge Zone are approximately 3x the reserve grade at Chelopech. So not only do we see an opportunity to have to have the Wedge Zone contribute meaningfully to mine life extensions at Chelopech, but we also see the potential for incremental production as that higher grade material feed into the mill.

Fourth major discovery, and perhaps the most exciting is what we call the Brevene South Porphyry. So this discovery is adjacent to Chelopech mine on a license called Brevene. We announced this discovery in the first week of June, and that discovery drill hole was about 713 meters at 2.5 grams per tonne. And it is, in fact, still turning in mineralization. So currently, I think, we're making about 100 meters roughly of progress per week on that drill hole. I've been informed that from visual inspection, not only rein mineralization, but it's increasingly intensive mineralization which has myself and the team very excited. I don't think I've seen a drill hole like this in my entire career, and I probably won't be a part of one ever again. But in terms of what that means for the company, it's still very early days. But if you plug a drill hole like that into your favorite AI agent and tell me what it says, that's the reason why we're quite excited about it.

So, Coka Rakita and our development pipeline and our exploration portfolio, we'll be relying on these to drive the next phase of growth within the company, and we're well positioned to deliver that growth through organic cash flows from our existing assets as well as the $575 million that we have on our balance sheet. Okay.

Turning towards Vares specifically. The Vares mine is an underground mine with an off-site processing facility and a prospective 400-acre land package. It's located about 50 kilometers north of Sarajevo, which is the capital of Bosnia. It achieved first concentrate production in 2024 under the previous owner, and since then has been ramping up to full capacity, produces two saleable concentrates, the silver zinc concentrate as well as a lead silver gold concentrate. The thing that attracted us to Vares in terms of why we wanted to acquire that asset, was the logical fit that it made within our existing portfolio. Not only is it an underground mine, it's precious metals dominant. It's located within our region, and it's at a scale and produces final products that are within our line of expertise. So it was a natural fit within our portfolio, and we're very excited to have been able to acquire that last year.

I mentioned earlier that Vares is in a bit of a transition period. So when we acquired the asset, they were struggling to reach nameplate throughput at design criteria. And what we did is we took some time to pause a bit at some of those activities in 2025 to reconfigure the asset to be able to reliably deliver 850,000 tonnes per annum. And so with that, the integration and ramp-up activities at Vares continue to progress very well. Mine production restarted in January of this year, as planned, and we produced approximately 29,000 gold equivalent ounces during the first quarter at an all-in sustaining cost of $890 per gold equivalent ounce sold. Development rates underground have accelerated to plan and are consistently achieving 300 to 400 meters per month. Last week, I believe we actually achieved 450 meters per month. So everything is produced -- is progressing as planned. I'm told that we're less than 100 meters away from the main decline reaching the bottom of the ore body. And the reason why that's significant for us is because it's going to allow us to start opening up secondary stopes.

With those secondary stopes, it will allow us to increase our operational flexibility into the second half of the year. So as I mentioned, with the asset being in a transitionary period in 2026, there's a number of projects progressing on site. The first I'll mention is the construction of the paste and backfill plant. It's progressing well and expect it to be operational in Q4 of this year. The second item I'll mention is the aforementioned Q2 plant shutdown. You may remember on our Q1 call, we talked about a temporary shut at the mill, to integrate the second tailings filter press. That activity has been completed and the filter press has been successfully tied in. That will -- the filter press won't actually be operational towards the end of this year, but it will not require any future mill shutdowns.

Due to the shutdown in Q2, we're expecting production to be similar or slightly below Q1, sorry, Q2 production will be similar or slightly below Q1. And but it will position us very well in H2 as we start to ramp and be able to hit that nameplate throughput of 850,000 tonnes per annum. So throughout the H2, we'll see a steady ramp from this point forward as we progress up towards 850,000 tonnes.

Okay. One of the reasons why I spent a little extra time talking about our exploration success, even though it's not specific to Vares is because of the implications that we think it has for Vares and that land package. So the same team that's been highly successful with 4 major discoveries since 2023, has had a chance to dig through and digest the historical exploration data at Vares. And they're very excited about what they see within that land package. And the way I'll segment that exploration potential is maybe in 3 main areas. So the first is what I'll call in mine. And so there's significant potential to add additional resources towards the periphery of the ore body. So adding additional resources from the peripheries, converting resources into reserves. This isn't going to, I would say, move the needle in terms of scaling up the potential value there in a meaningful way, but it's highly value-generative incremental ounces that we can quickly integrate into the mine plan.

The second main area is what I'll call near mine, although if you look at the deposit geometry, it's almost in mine, and that specifically relates to what we call the Rupice Northwest. So if you look at the deposit geometry, there's a main area called Rupice Main and then down dip and slightly Northwest towards the Kakanj license boundary is what we call Rupice Northwest. And that portion of the deposit is artificially constrained by the license boundary. And so what you'll see is the Rupice Northwest portion of the deposit is actually higher grade and with greater widths, but it comes to an abrupt end at the license boundary. So the previous owner was not able to obtain permission to extend the drilling there. But we've been very, very active with our efforts in progressing that. So one of the initiatives in order to be able to drill there is obviously to develop over to that portion of the ore body. And we expect that we'll have completed that development in Q3. that would release the final technical constraint on being able to do the drilling. And the last bit that is required is permission from Kakanj specifically, and I'll talk a little bit about that when I talk about stakeholder engagement.

The third major area of prospectivity across the Rupice, sorry, across the Vares land package has to do with what we're seeing in that 22-kilometer corridor. And so the Rupice deposit sits within the prospective deformation belt, hosting several barite and massive sulfide occurrences over a 22-kilometer corridor, all of which are in close proximity to Vares infrastructure in the operating facilities. If you look -- if you ever looked at a Google map or a top-down view of the map, you can see a number of historic pits where they've really just scratched the surface, but our team is very excited about the prospectivity along the entire 22-kilometer corridor. And due to that, we budgeted about $10 million to $11 million for exploration activities at Vares. We have 2 to 3 drill rigs mobilizing, and we expect them to be in a position to start drilling in Q3.

Okay. So to elaborate a little bit more on the stakeholder engagement front. Since taking over Vares, our focus has very much been engaging with stakeholders and to build trust and introduce DPM to the local communities. We've built on that strong foundation that was set out by the previous owners. And so far, our engagement has been well received by the surrounding communities. We've also extended our presence in the surrounding facilities by opening an information center Kakanj. Just to remind you, Kakanj, is that municipality that borders on the Rupice Northwest deposit. And we believe this has been very helpful to help facilitate transparent 2-way engagement and communication with that community.

We've also -- we're also in a very unique position in that we're able to leverage our proximity to our existing operations. Due to the proximity of Bosnia into our existing operations in Bulgaria, we've been able to host about over 100 members of the surrounding community at Vares to our Bulgarian operations on a series of site visits to both Chelopech and Ada Tepe which provided them an opportunity to see firsthand the way DPM operates, the benefits that our operations bring to local communities and the high environmental standards and performance that DPM maintains. On these visits, not only do they get to see the operations, but they're allowed to speak to mayors, various community officials in Bulgaria. So they can get a first-hand view as to what their experience has been like partnering with DPM and the values we bring to the community.

So in summary, it's a very active year at Vares this year. We're highly confident that we're going to be able to deliver the nameplate throughput of 850,000 tonnes per annum by Q4. And we're excited about the contribution that Vares will make to DPM's portfolio going forward. So with that, if there's any questions, happy to take them.

Thank you very much. I'm not as familiar with the project, but perhaps you can just provide some context or some insights when you were looking at this project, what gave you confidence that you'd be able to turn it around or provide value -- surface value?

Yes. Excellent question. So when we looked at what was going on at the operation prior to us taking over, there were a number of things that we identified that were inconsistent with our existing operations that we would do differently. I think a lot of those came from the previous owner being capital constrained. They weren't able to invest the capital to achieve an operation that would produce a lot of consistency that we wanted. So one of those was they're mining from a top-down approach, which was providing them with a number of issues that would be remedied if they were to go from a bottoms up approach. So immediately, we slowed operations, progressed on developing the decline to the bottom of the deposit, so we could switch into a bottoms-up approach. That was on the mining front. And that was essentially their biggest issue.

The other was a number of infrastructure upgrades. So we mentioned the paste and backfill plant. So that -- by getting that paste backfill plant into production, it's going to allow us to open up a number of -- open up the primary and secondary stopes, with a level of consistency that can deliver that throughput without the issues that they've been having in the past. Did that help answer your question?

Speaking of the paste backfill plant, I mean, how much did it cost? And just to confirm everything is -- you said you don't need another plant shutdown, but -- everything is on site. There is no issues with getting anything into the country at this point, right?

No. We've had no issues bringing their acquired infrastructure into the country and equipment. Everything is on site. I don't have the numbers specifically for the paste and backfill plant, but we did announce an incremental amount of capital for this year, not only for the paste backfill plant, the water facility, but also advancing a number of the planned capital that was supposed to take place over the life of mine. We're bringing that forward so we can achieve higher production earlier in the mine plan.

And then completely different question. I'm not that familiar with that part of the world. And operations there. Can you walk me through your governmental relations and how all that is going? It seems like community relations are going quite well, but just governmental, please?

Yes. I haven't been party to a number of the discussions at site, but essentially, the permits -- the way the whole permitting regime works is very similar to surrounding areas. All those areas were part of the former Yugoslavia and so all of their mining code descended from that common base. So you'll see a lot of similarities with Bulgaria, Serbia, Bosnia and Herzegovina. They're not as modern or as advanced as some of those areas, which we think is an opportunity for us to help influence the way some of the permitting and relations work. By bringing it up to sort of modern standards, not just what we see in Bulgaria and the region, but also globally. And so to do that, we've had a very good dialogue with the surrounding communities and with the government in terms of what we think should happen and we have an ability to influence that process. So that's still an ongoing process. You still need to have good relationships with the surrounding communities. We're making progress on that front. And so we're very excited about the potential to work with the communities, and the government to advance the projects in the future.

I'm going to ask you a question, Steve, if you don't mind, sorry to put you on the spot. I know under the previous owner, Adriatic, there was an expansion plan. So going from 800,000 tons per year to 1.1 million to 1.3 million tons per year. I know DPM is talking about 850,000 tons per year. Can you talk a little bit about how you're maybe seeing expansion? What your view is maybe differing from Adriatic or maybe if you see that opportunity in the future? And I know I know that would be sort of long term outside of your guidance, but anything that you see that's opportunity.

Yes, that's a great question. So we looked at those expansion cases as part of our due diligence as well as evaluating what we could do with the asset going forward when we took it over. I think our view right now is that the primary -- our primary goal is to achieve the 850,000 tonnes per annum and a level of consistency that can deliver that before we would look at any kind of an expansion. And through some of the studies we've done internally, we actually think there is an ability to increase production without necessarily expanding the mill. We would probably see ourselves doing something like that, whether it's with some kind of ore sorting or other ways of optimizing the throughput of the mill before we would undergo any major expansion to 1.1 million or 1.3 million tons per annum. So we see there being a number of opportunities to increase production prior to any kind of major mill expansion. But those are sort of, like you said, a little bit more midterm dated.

So we have one final speaker left in our presentation today before we wrap up. We're very pleased to welcome Jason Simpson, he's the CEO of Orla Mining. As David mentioned earlier, Orla Mining is going through a bit of a transition now. There's a proposed merger with Equinox coming up. However, I know Jason will talk about that, but we are very excited. South Railroad is one of the growth projects that we highlighted earlier, hopefully, the combined Equinox Orla will continue to see that as a major priority. And it certainly is for us, represents some exciting growth over the next 5 years. Jason, thanks very much for coming.

I will start with a thank you, Jackie, for the invitation and also appreciate all the conversations and guidance you've given to a young aspiring banker, also known as my son. So I really appreciate that. David and team, thanks for hosting. Congratulations on 5 years. And to confirm, yes, South Railroad is an important part of the go-forward company, and I'll focus my remarks on that today.

Before we get into South Railroad, you'll expect I'm going to be talking about a mine, I haven't built yet and talking about a company I haven't merged with yet. So lots of forward-looking statements. So you guys will reference that cautionary language and make sure you're aware of the risks.

So I'll just start very quickly about the combination with Equinox and then I'll drive right into the specifics around South Railroad. So the shareholder vote will be on July 22. The leadership team, combined leadership team met this week here in Toronto. So we're full steam ahead with the combination, tremendously excited about the company that we're creating. Out of the gate, 1.1 million ounce producer growing to -- towards 2 million ounces. Part of that growth is what we're going to talk about today, South Railroad.

Importantly also, we are retaining our sort of geographic exposure in 4 countries, Canada, United States, Mexico and now Nicaragua with the combination with Equinox. So the platform, of course, has 3 producing Canadian mines. As my partner, I like to describe 2 of them ramping up in Valentine and Greenstone and one that's been sort of rebirthed and recapitalized and is growing in production as well. So that's tremendous strong platform. But really, a lot of our growth is part of what we're going to talk about today in the United States, starting with South Railroad and then progressing to Castle Mountain. So a big part of that 800,000 ounces that you can see there is the growth pipeline is based in the U.S. I won't spend time on it today. But of course, we have growth opportunities in Mexico and Nicaragua as well.

One of the things I will reference about Mexico, I know David spoke to it at the beginning, the similarity between Camino Rojo and South Railroad cannot be mistaken, another open pit heap leach. Camino Rojo oxides really was a beachhead for Orla and the genesis of the company, of course, which has led to the ability of us to combine with Equinox. South Railroad very similarly, also in open-pit heap leach and also seen as a beachhead into Nevada. Why is Nevada important? We heard some great remarks about some of the royalty work that Gold Royalty is doing with the genesis of the projects they have there. Clearly in Nevada with our founding shareholder, Pierre Lassonde's interest in Goldstrike, our Chairman's interest in Glamis back in the day and each of the management team's time there. Nevada seen as a great jurisdiction. That applies to all 4 nations, but we'll spend most of our time talking about today. In addition to the producing assets, of course, we have tremendous reserves and resources that will represent opportunities of further growth outside of that 800,000 ounces. So a pretty compelling company that I'm proud to be a part of going forward.

So let's talk about the growth. It is represented by multiple projects, but you'll notice on the second line there South Railroad, and that's what we're going to talk about today. We're going to double the production scale in Newfoundland in terms of ton and throughput to 5 million tons, from our perspective as well as Equinox is probably what should have been the first mine built there, but we'll go ahead and expand it now. That will be the first piece of work that's underway now, and we're going to talk about the second project which is South Railroad. I won't get into Castle Mountain, but another open pit heap leach across the border in California.

Well capitalized to deliver it. We're going to talk about a modest capital sum of just under $400 million with South Railroad at $395 million over -- and this is consensus numbers, by the way. The consensus numbers show us producing in the time frame there out to 2030, about $10 billion, $2 billion of those billions will be in the growth. And so we're very comfortably capitalized to build certainly South Railroad and things much bigger. So let's focus on South Railroad and our conversation going forward and what we're doing there and how far we've gotten.

So similar to Castle Mountain, South Railroad is a covered project in the FAST-41 process. For those of you who don't know what that means, it gives you the benefit of a representative at the Department of Interior gives you oversight from the federal government on the schedule, gives you transparency via their public website of when record decision date is and helpful is their influence in the various cooperating agencies required to deliver permit in the United States, and their intensity and vigorous pursuit of holding schedule. So that's been tremendously helpful for us. That's important because it enables us to follow our model that we followed at Camino Rojo, which is to begin spending money on the project before we have the permit. We're only willing to put that investment at risk if we're confident that we're going to be able to receive the permit. We did that at Camino Rojo and that's why we're able to construct it in 14 months because we did a lot of the work ahead of the time. We bought everything ahead of time. Everything was on site before we were on site effectively. And so that's what enabled that. You can only do that if you're confident in the permitting and under FAST-41 process, we're confident. I referenced these other projects, which I'm happy to talk about outside of the room.

So let's focus on South Railroad. It's ready to go, and it won't take long to get to production. These open pit heap leaches are -- have many benefits, and that is certainly one of them. As I mentioned, with the line of sight to permitting expected in the beginning of the second half of this year, we could begin work on execution plans, engineering and going further into procurement and contract signing. So a number of things I'll reference. We've already purchased the energy solution LNG energy solution. We've already purchased the crushers. We've already signed the major earthworks contracts. So David and team, you can be confident we are building this thing, so that Gold Royalty and other stakeholders can benefit.

We have had many, many site visits with the various contractors, have all of our execution plans in place and are ramping up. What does the project look like? I describe it as a beachhead into Nevada. So oxide heap leach project has tremendous attributes. Mine life is not always one of them. But what it does do is produce tremendous cash and it enables us to do other things. Camino Rojo enabled us to build Orla, allowed us to acquire this asset in 2022, acquired the land package, which I'm going to talk about further on in the presentation that gives us the opportunity and that optionality, as Pierre likes to talk about for discovering more gold. And of course, we have discovered plenty of gold since the acquisition in 2022. We'll talk about that.

So the headline numbers, a decade, 130,000 ounces for the first 5 years at very humble all-in costs that you'd expect from an open pit heap leach. Greater stripping than Camino Rojo certainly, but still a very profitable mine. And importantly, what I'll refer to in the second half of the presentation is the expansion possibilities, not only of the heap leach that's on the screen now, but also, of course, sulfide and other opportunities on our 30-kilometer land package. So here's where it is. Everybody will recognize those big mines in the North Carlin. We're in the South Carlin, on a tremendously large land package. There 25,000-hectare land package with the project that we're referring to, smack in the middle of that land package. We have discovered gold to the north of the existing construction project, into the south of the construction project. No surprise to Pierre, Chuck and all of us that have spent time in Nevada that there's lots more gold in Nevada. And this first project at beachhead, it will give us infrastructure, management team is focused in on site and allow us to work off of brownfield site and grow the district.

Should go back one here. Just talk about the road. Will be based on Elko, why is that important back in the '90s when I was in Nevada, most of the stuff is over on the Winnemucca side, tax paying into those counties. This will be one of the first producing mine that will contribute to the Elko County. So important from a stakeholder conversation perspective that will provide taxes for that county as well as in Nevada, one of the challenges you have is human capital. So the ability to attract people that can drive home in Elko is certainly going to work in our favor rather than getting on a bus and heading over to the Winnemucca of the trend.

So predictably, open-pit heap leach has very robust project fundamentals at any gold price you'd like to consider. But certainly, at the ones that we considered, it generates a lot of cash. The life of mine we're going to -- I'll show you the standard graph, high production in the first 5 years, lower in the last 5, backfilled, of course, by expiration that I'm going to reference, but the life of mine is just over 100,000 ounces. One of the questions Darren and I often get is interesting. We haven't been merged yet, but we're already asked questions about divestitures. We have a very clear answer about that. And it relates to this project or any others in Mexico or Nicaragua. We have no interest in divestitures at this point. A combination of all the assets, including this one, is what contributes to our out of the gate plus 1 million-ounce production profile, if we're going to grow to 2 million ounces, we need all of these contributions, including this one.

Of course, as we conclude the transaction, and move into our planning stage. We will continue to be active in this space. And as companies come in and want to offer lots of money, I parrot my partner, Darren, he says, we love all of our children, but they're all for sale at the right price. And so I'm not going to commit to every project in our portfolio remaining. Obviously, the shareholders need to be considered in that conversation and we certainly will, but we're actively building Nevada and intend to grow Nevada. Nevada like Canada, like Mexico and like Nicaragua, all represent jurisdictions we want to be in and we want to grow and not shrink in. We do not subscribe to the model of selling our way to success.

So pick a gold price, it's been -- it's had a bit of a pullback recently, but certainly in between those 2 numbers, $4,000 gold, very robust economics and these open pit heap leaches are not a challenge from that front. Here's the life of mine that I described and as a mining engineer, I can tell you, our job is, as now mining executives is to backfill the back end of that, you do that through the drill bit. And so very comfortable 130,000 ounces a year, would have been the second largest operation for Orla, will be a different part of the portfolio for combined Equinox, but still an important contributor. And our view is that we can grow the production profile in Nevada. We're sizing equipment to achieve that, and we intend to roll in some of the already discovered gold ounces that aren't part of this project. Why?

Because when you're within a permitting process, particularly in the United States, it's unhelpful to reengineer the operation in the mine halfway through a permitting process or you just have to reinitiate which is certainly not what you want to do. So get the mine up and running, this is what I would describe as the Phase 1 mine, then you can start expanding the size and contributors to the mine, and I'll talk about and certainly backfilling the back end of the production profile is already -- we already have clear line of sight to that. So what are we doing? And where are we on the road map?

So as I mentioned, and visible on the federal website. If you're interested, we have an August 8 record of decision, and we're getting prepared for that. We hired the EPCM in 2024, M3, same company that built Torex for me, same company that built Camina Rojo for me, is going to build this one for me. Interestingly, is also the engineer for Castle. So we get a very familiar crew. So we're working with people we know. They have been busy engineering. We're approaching 50% engineered, detailed engineered now. And we have already, as I mentioned, secured the packages for big things like earthworks, crushers and energy solution and so on. We're now into the part of the process where we're ramping up the operator team as well as preparing for construction and takeover. I anticipate that will be ending construction at the end of '27 ideally first gold in the early part of 2028.

So how are we developing it? I talked a bit about the permitting, the NEPA process is certainly one part of it. There are other state permits as you would expect, different things that we need to feather into the process as well. And like any construction project that I've been through, will start on the road this year -- or this quarter, I should say, and work our way in. And then once we're on site, we'll work where we can and permitted to us as we continue to expand. All of the risks, some of the changes between the project we acquired and the project that we just announced, the completely updated feasibility study in Q1 of this year is largely enhancements from an environmental perspective. How we're handling the water and the pads and so on, needed to meet our standards. And so we reengineered all of that and make sure that we've got a robust project that's not only environmentally sustainable but also expandable. Okay?

Strong stakeholder support. I already mentioned Elko and the local communities, but we had almost unanimous positive support in the consultation process as required under the NEPA process. And of course, we have our own ESG framework under Orla, very similar to what is applied at Equinox, will be applied here. So I mentioned advance the engineering, further ahead, I would offer than most construction projects and part of our always model to build things, the procurement I've already mentioned. And we've got our complete execution plans finalized now. The project team is on the ground currently as we start that road work into site and working on critical path activities.

So here's the interesting part. So as I mentioned, a couple of different points. I said beachhead. I just talked about Phase 1. So what are we really after in Nevada. This is what we're after. This is a zoom-in of that 30-kilometer land package. Again, the projects in red are right in the middle of the graphic here. What we're really interested in is the predictable gold endowment that exists in the Carlin trend, both north of the project and south of the project, but differentiated between oxides and sulfides as you need to do. So we focus most of our efforts on oxides with the approach that we can get satellite pits or expansions of the existing pits to further contribute to the infrastructure that we're building right now. And we have already discovered and I'll show you a few graphics the potential to expand the pits. This is regardless of commodity price. Of course, the commodity price gives you a second lever that can also help expand the pits. But absent commodity price, there's more gold surrounding Dark Star and Pinion, which we've already discovered, but did not change the pit size during the permitting process. So we'll get the pits started and then submit for expansion of the existing pits.

The second opportunity on the oxide front is satellite pits in places like [ Dixie ], Pony and other parts of the property that are truckable to the heap leach facility, then they'll become a distance that's too far. And what we'll do there is we'll set up pads down closer to those pits, bring them to the carbon stage and get them back up to the processing facility. The second opportunity, more distal in time, would be, of course, sulfides. When we purchased the project in 2022, everybody knows about the North Bullion sulfide opportunity, certainly there. We've expanded it. It represents a future stage of our Nevada platform. Here's a zoom in on that package and some of the places that I talked about, Jasperoid Wash would be a representation of one of those satellite pits proximal to the existing project right there in the center. The most interesting and recent one is Firebox, which is visible from the existing infrastructure, that we discovered last year and are following up on this year. And that sulfide opportunity that I mentioned is in that North Bullion up towards the North. And anybody who knows the area knows the historic mines of Rain and Emigrant are just across our border on the north side.

And if you look -- and anybody who's familiar with the geologic pyramid, what this should signify to you as we have plenty of targets and opportunities in Nevada will be there for a very long time. Look forward to getting started there this year, but we'll be there, evolving these targets up to that triangle into production. And so this, I would offer, proves our thesis of acquiring the asset, which is there's a lot more gold around the Dark Star and Pinion area, and all of these targets represent that. So we look forward to being in Nevada for a long time, starting with the South Railroad project. We are ready to go. I think even this slide is a bit dated. We're already on the ground. So we're kind of already going, and we look forward to making announcements throughout the construction phase as we have on all previous projects. You go through the cycle of questions of when you get going, to get the permits, to how is construction going, we'll go through those conversations. And then once you completed construction for first gold, how is ramp-up going, and we look forward to that. And then the cycle moves into -- have you found any more and how can you expand? So we look forward to all those future questions. And I'll pause now and see if anybody has any for me?

You're in an extremely well-known mining district, obviously. What are you seeing with labor costs, labor supply? I mean it sounds like you got some competitive advantages in regards to travel time. But I mean there's also a lot of guys demanding a lot of workers out there.

Yes. Yes, labor costs are high, and it's highly competitive. So the easiest answer is we can't pay anybody any less. So we're going to pay the same thing Nevada Gold Mines is paying. The things we're going to need to leverage to our advantage are -- I used to say, size of company. It's not as true anymore, but there's some appetite to work for a smaller company, we would still, of course, be smaller. The Elko advantage and then just the cultural advantage and it would be the sort of intangible -- or the softer things that we can use to attract people. But the hard things like financial -- we're going to pay the same thing Nevada Gold Mines is paying and trying to offer a different work experience for folks. The good news about Nevada is you can get the talent, but the bad news is there's a lot of competition for talent. So in a place like Mexico, you can get the talent and it's available. And so that's tremendously helpful. In places like Nevada, don't get that luxury.

So you'll either need to import it. So for construction, M3 is going to bring in everybody they need, most of them from Arizona and Hermosillo, Mexico. That will get us through the construction stage. And then it's a contractor base as any project is. So that part isn't a problem. The part going forward, we also don't need as many people, right? We're not running a huge mega pit here. These are 2 small open pits and modest by any measurement. And as we know, the heap leach and processing plant also doesn't take a lot of human capital.

I should know this, but how many people are you employing right now?

So it grows by the day. And I think the last time I checked, not including contractors and EPCM, we're in the 40s, but that's just the owner-operator team growing and will be several hundred once we turn it over to operations. And that doesn't, of course, count anything that we're contracting.

For those of you who are interested, it is seasonal for exploration in this project. So we're just launching our exploration in Nevada this quarter. So although we've been able to give updates in Mexico, which is not seasonal, the updates for exploration in Nevada will come later this year because we're just getting started with the drills there now.

Our GEO and future GEO with the combined company [ Sylvain Guerard ] just came back from site last week.

Well, I'm here to wrap things up. I want to thank our operating partners who came here to present today. Our assets are very important, but we're only as good as our operating partners who are clearly very confident and we're -- we have an enviable portfolio of operating partners, all the biggest gold companies in the world and the emerging biggest gold companies in the world as well. And so we're delighted that you were able to come and present today. I'd also like to thank all of our team.

They all did a brilliant job presenting today. But behind them, there's a small merry band in Vancouver. We have a Toronto Chapter here between Jackie and John. But I'm really, really proud of our team and what they've been able to accomplish over a short period of time. And I'm really, really happy to have many of our investors here either online or in person. Thank you for your support. It's been quite a journey over the last 5 years. We're just getting started. Thank you very much.

Welcome to the Gold Royalty Corp. First Quarter 2026 Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to David Garofalo, Chairman and CEO. Please go ahead.

Thank you, operator. Good morning, ladies and gentlemen, and thank you for participating in today's call to review our first quarter 2026 results. Please note for those not currently on the webcast, a presentation accompanying this conference call is available on the Presentation page of our website. Some of the commentary in today's call will include forward-looking statements, and I would direct everyone to review Slide 2 of the presentation, which includes important cautionary notes.

All dollar values mentioned on today's call are expressed in U.S. dollars unless otherwise noted. Speaking alongside me this morning will be our President, John Griffith; Andrew Gubbels, Chief Financial Officer; and Jackie Przybylowski, Vice President, Capital Markets and Sustainability. The first quarter was another strong quarter for Gold Royalty as we reported another record quarterly revenue and adjusted EBITDA and as we continue to have a positive outlook for our business going forward.

Before we dive into the results, I wanted to start with an important announcement. I'm delighted to announce 2 appointments this morning. John Griffith has been named President in addition to his role as Chief Development Officer. The title is a true reflection of the value that John has brought to Gold Royalty over the company's life. We recently celebrated the 5-year anniversary of our listing and the tremendous accomplishments in building Gold Royalty's peer-leading portfolio. And John was absolutely instrumental in making Gold Royalty in what we are today. His new role as President reflects the leadership position that John already fills in the company and will continue to fill going forward.

We have also transitioned the responsibility for sustainability from Katherine Arblaster, our outgoing Vice President, Sustainability, to Jackie Przybylowski, who will be Vice President, Capital Markets and Sustainability effective July 1. We want to thank Katherine for her invaluable contributions to Gold Royalty. She has been with Gold Royalty in a part-time capacity since 2022, which is a great example of the overhead savings that we realized with our shared services model. Katherine will continue to work with Uranium Energy Corp. and Uranium Royalty Corp. moving forward, and Jackie will manage sustainability at Gold Royalty, adding no additional personnel to our team as a result of this transition. I'll now pass the call over to our President, John Griffith.

Thanks, Dave. The past 5-plus years at Gold Royalty has been both personally and professionally rewarding as we've grown the company from 18 royalties and 0 revenue in 2021 to over 250 royalties and meaningful revenues and cash flows today. The depth, breadth and quality of the portfolio that we've assembled exceeds my expectations, and I'm so proud of the work that our team has done to get to this point. But our story is really just beginning. After celebrating our 5-year anniversary in the first quarter, we're incredibly encouraged by our growth outlook for the next 5 years as well.

The guidance that we provided on March 18 shows that Gold Royalty expects production to grow to 28,000 to 34,000 GEOs by 2030. At the midpoint, this represents nearly 500% growth compared against our 2025 actual results of 5,173 GEOs. This growth is all from royalties and streams already fully bought and paid for in our portfolio. And I would emphasize that if we did nothing at all, if we only sat on our hands for the next 5 years, we still would have peer-leading growth.

Of course, we're not planning to sit on our hands for the next 5 years. Our team continues to investigate acquisition opportunities each and every day. In the current environment with strong gold prices, we're seeing less emphasis on balance sheet repair. Most of the opportunities we're seeing now are sales of existing third-party royalties where sellers could potentially be looking to take advantage of high commodity price environment that I mentioned earlier.

We're committed to accretive transactions, and we will stay disciplined to ensure we're not overpaying for the sake of growth. We continue to look for double-digit returns using conservative commodity price assumptions, and we continue to favor precious metals in low-risk jurisdictions. With that in mind, I look forward to continuing to build upon the great platform we've built in our first 5 years. I'll now pass the call to our CFO, Andrew Gubbels, to discuss the details of our first quarter results and our outlook on Slide 5.

Thank you, John, and good morning, everyone. We are pleased to report new records for revenue and adjusted EBITDA in the first quarter. Total Revenue, Land Agreement Proceeds and Interest was $9.4 million, translating to 1,920 gold equivalent ounces in the quarter. Adjusted EBITDA was $7 million, up from $3.2 million in the previous quarter and up from $1.7 million in the comparable quarter in 2025. Our results for the first quarter include contributions from the Pedra Branca royalty, which we acquired in December 2025, and our second royalty on the Borborema mine, which was acquired through a 50-50 partnership with Taurus Funds in January 2026.

Due to the structure of this partnership, we are equity accounting for the contribution from this royalty. In other words, revenue from the second Borborema royalty, a net 0.75% NSR to Gold Royalty Corp. is not included in the IFRS revenue line on our income statement, but is included in other operating income on the income statement and has been added to the $9.4 million total revenue land agreement proceeds and interest reported in the quarter. Our balance sheet also continues to strengthen. We exited the first quarter with over $13.6 million of cash, no debt and a fully undrawn $150 million credit facility.

As we continue to generate cash, our portfolio is expected to generate consistent positive free cash flow, positioning Gold Royalty Corp. well to self-fund its business going forward. With a clean balance sheet, we now have the flexibility to execute our long-term strategy. Our current intent is to maintain a modest cash balance and to allocate additional cash generated from operations towards growth opportunities where appropriate. As our cash flows continue to grow, capital returns will become increasingly topical for us. This is a subject that we intend to evaluate in more detail later this year. I will now pass the call to Jackie Przybylowski to review our guidance and to talk about some of our key assets.

Thanks, Andrew. Looking at our portfolio in more detail, we reported 1,920 gold equivalent ounces in the first quarter 2026. If we simply annualize our Q1 results, we would reach 7,680 GEO in the year, above the low end of our guidance range of 7,500 to 9,300 GEO in 2026. We're already very encouraged with this result because we expect that volumes will be more heavily weighted to the second half of the year as Vares and County Line ramp up to their full production run rates through the year. And just a quick reminder that our 2026 guidance was set at a gold price of $5,150 per ounce for the full year.

Lower gold prices would work in our favor as conversion of the land agreement proceeds and interest and conversion of revenue from copper and other metals would translate to higher GEO values at lower gold prices. Please see our March 18 2026 press release for a table showing the sensitivity of our guidance to gold prices. And reiterating John's comment from earlier, Gold Royalty expects production to grow to 28,000 to 34,000 GEOs by 2030 or approximately 6x our actual 2025 result from assets already fully bought and paid for in our portfolio. Our extensive portfolio continues to offer exciting news flow and catalysts, and we have a number of exciting asset updates in our earnings report.

I'll just highlight a few on this call. i-80 announced a complete recapitalization, which means the company is now fully funded for Phases 1 and 2 of its development plan, which includes the Granite Creek underground and open pit operations on which Gold Royalty holds a 10% NPI. Acquisition of the Pedra Branca mine by CoreX was completed on April 2. Gold Royalty holds a 25% NSR on gold and a 2% NSR on copper on all material mined at Pedra Branca East and Pedra Branca West.

And we're looking forward to working with CoreX as it optimizes operations at what will be an important asset for Gold Royalty. Blackrock Silver published a PEA for the Tonopah West project on which we hold a 3% NSR and U.S. Gold Mining published a PEA on its Whistler project on which we hold a 1% NSR. And a few notes to watch for over the next couple of months. Orla Mining continues to plan to start construction on South Railroad in mid-2026, pending receipt of final permits, and that mine could be in production in late 2027 or early 2028. We hold a 0.44% NSR in South Railroad.

DPM Metals has restarted the Vares mine on which we had a stream on all copper produced. The operator expects to reach its full production run rate by year-end 2026. But in the meantime, it's important to note that the processing plant will be shut down for approximately 20 days in the second quarter for installation tie-ins for the second tailings filter. Please see our earnings release for additional asset updates. With over 250 assets in our portfolio, we continue to expect a steady stream of exciting positive news flow. I'll pass the floor back to David for closing remarks.

Thank you, Jackie. There is indeed lots to get excited about as you look across our portfolio and the various high-quality assets ramping up and entering production. We continue to see compelling upside to our share price as our portfolio of assets continue to develop and as the market gives us credit for this organic growth. Our valuation could be further boosted by accretive growth, but we emphasize that we will remain patient and disciplined as we consider any acquisitions and as we review our capital allocation options going forward.

We continue to prioritize accretive growth as always. However, as we continue to build cash, we view a modest capital return as a signal to the market that we will remain disciplined on our growth and that we have matured as a company. We reached first positive free cash flow in mid-2025, and we expect to continue to strengthen our balance sheet with higher GEO volumes, stronger gold prices and lower costs as we have eliminated the interest costs as we continue to rationalize our G&A.

As our share price has now been comfortably above our warrant exercise price for some time, we think it's prudent to highlight this to any warrant holders on today's call. As of March 31, 2026, the company had approximately 14.7 million outstanding share purchase warrants with each warrant exercisable into a common share at a $2.25 exercise price per share. The warrants are listed on the NYSE American under the symbol GROY.WS and expire May 31, 2027. For more information on exercising warrants, please see our first quarter earnings press release. Thank you, everyone, for tuning in to the earnings call, and we invite you all to join our Annual Capital Markets Day in Toronto and online on June 18. We'll now open up the call to Q&A.

[Operator Instructions] There are no questions at this time. I would like to turn the conference back over to David Garofalo for any closing remarks.

Thank you. I appreciate it's a very busy time for all of you. And if -- in the fullness of time, if you have follow-up questions, please don't hesitate to reach out to any one of us. I think you all know how to reach us, and we'd be delighted to answer any questions you have. But thank you for your kind attention today, and we'll see you shortly. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good day, and welcome to the Gold Royalty Corp. Fourth Quarter 2025 Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. David Garofalo, Chairman and CEO. Please go ahead, sir.

Thank you, operator. Good morning, ladies and gentlemen, and thank you for participating in today's call to review our fourth quarter and 2025 results. Please note, for those not currently on the webcast, a presentation accompanying this conference call is available on the Presentations page of our website. Some of the commentary on today's call will include forward-looking statements, and I would direct everyone to review Slide 2 of the presentation, which includes important cautionary notes. Speaking alongside me on today's call will be Andrew Gubbels, Chief Financial Officer; John Griffith, Chief Development Officer; Jackie Przybylowski, Vice President, Capital Markets.

Last week, we marked the 5-year anniversary of Gold Royalty's IPO. I'm so proud of our team and what we've accomplished in our short history. We started in March 2021 with 18 royalties on nonproducing assets and no revenue. Today, we boast a portfolio of 258 royalties and streams, including 8 cash flowing assets, and we continue to selectively acquire accretive assets, including Pedra Branca in late 2025 and an additional royalty in Borborema, as John will walk through shortly. From no revenue in 2021, we passed through an important inflection point in 2025.

We are proud to report a third consecutive quarter of positive free cash flow as well as another quarter of record revenue, adjusted EBITDA and operating cash flow. These cash flows are a manifestation of the tremendous potential we saw from the assets as we've been carefully curating our portfolio over the past 5 years, potential which is not yet fully realized as we have tremendous growth and value creation still to come. Our balance sheet has been strengthened, as Andrew will discuss later on in this call. We ended the year with no debt or convertible debentures, over $12 million in cash, a fully undrawn credit facility and outstanding common share purchase warrants that continue to be deeply in the money. This strong balance sheet will allow us to continue to opportunistically acquire accretive assets and to consider returning capital to our shareholders.

With that, I will pass the call over to Andrew Gubbels to discuss the details of our fourth quarter results and our outlook on Slide 5.

Thank you, David, and good morning, everyone. We're pleased to report new records for revenue and adjusted EBITDA in the quarter and for the full year 2025. Adjusted EBITDA was $3.2 million in the fourth quarter, up from $2.5 million in the previous quarter and up from $1.2 million in the comparable quarter in 2024. Total revenue, land agreement proceeds and interest was $5.2 million, translating to 1,255 gold equivalent ounces in the quarter. For the year ended 2025, we generated $17.8 million in total revenue, land agreement proceeds and interest and $9.8 million of adjusted EBITDA, a 38% and 104% increase from the comparable period in 2024, respectively.

This record year reflects the contribution of higher cash flows from the assets we added to the portfolio over the past few years and a continued focus on maintaining consistent low operating costs. The consecutive quarters of positive free cash flow improves our liquidity position and importantly, provides a solid foundation for funding the business moving forward. Further, our balance sheet liquidity position was boosted meaningfully from the equitization of the $40 million convertible debentures held by Queen's Road Capital and Taurus Funds in November and an upsized $103.5 million equity raise completed in December last year. The equity raise funded our $70 million Pedra Branca acquisition, repaid the outstanding balance previously drawn on the RCF, brought in new institutional investors onto our share register and left us in a positive net cash position at year-end.

As we look forward to 2026, we remain well funded, having amended and upsized our credit facility to $150 million in February this year and having acquired additional cash flowing royalty on Borborema, we entered the year in a very strong financial position. As Dave alluded, with a self-funding business that generates consistent positive free cash flow and a clean balance sheet, we now have the flexibility to execute our strategy in the long term. Our current intent is to maintain a modest cash balance and to allocate additional cash generated from operations towards growth opportunities where appropriate, while evaluating capital returns to shareholders in future periods.

I'll now pass the call over to our Chief Development Officer, John Griffith.

Thanks, Andrew. Before the fourth quarter, Gold Royalty had not announced a material asset acquisition in over a year, demonstrating our disciplined approach as we have waited patiently for the right assets at the right time. On December 8, 2025, we announced the acquisition of royalties on Pedra Branca, which entitled us to 25% of net smelter returns from gold and 2% of net smelter returns from copper for the life of the mine. The Pedra Branca mine in Brazil is currently operated by BHP, although the asset has been sold to Corex Holding in a transaction which is expected to close this year. We are very excited to add this high-quality cash flowing asset to our portfolio. And for more information about Pedra Branca, please refer to our December 8 press release or our December 11 conference call. Links to both can be found on our website.

Subsequent to year-end, on January 14, 2026, Gold Royalty announced that we had acquired an additional NSR royalty on Borborema. The 1.5% NSR royalty importantly marked our first successful co-investment with Taurus Mining Royalty Fund. Taurus acquired a 0.75% NSR and Gold Royalty acquired the same 0.75% NSR, bringing our total to a 2.75% NSR plus the royalty convertible gold-linked loan.

We often get asked if there are still opportunities to acquire royalties and streams in the current environment of strong prices for gold, copper and other metals. Our 2 recent transactions and other recent royalty and stream deals announced by our peers show that there definitely are. It's worth noting that both of our recently acquired royalties were acquired from third parties, the Pedra Branca Royalty from Blackrock and the Borborema Royalty from Dundee Corporation. Both of these were acquired in quasi-bilateral processes where we negotiated directly with the sellers.

Across our peer group, we have also recently seen new streams written by mine operators, likely taking advantage of disparity between long-term outlooks for commodity prices between operators and streamers. And we have also witnessed corporate level M&A. We continue to see growth opportunities across each of our 4 pillars of growth, namely third-party acquisitions, operator financings, corporate M&A and our royalty generator model. And we continue to actively pursue these opportunities in a disciplined manner. I'm pleased to say that we have a healthy pipeline of activities we're evaluating today.

And I'll now pass the call to Jackie Przybylowski to review our guidance and to talk about some of our key assets.

Thanks, John. Along with our Q4 and 2025 results, we released our 2026 guidance and our longer-term 2030 outlook. We are expecting to report 7,500 to 9,300 GEO in 2026. At the midpoint of our guidance range, that's a 62% increase from our 2025 actual production of 5,173 GEO, including land agreement proceeds and interest. 2026 guidance assumes an average $5,150 per ounce gold price and an average $5.75 per pound copper price, which is consistent with consensus expectations. While our portfolio remains mostly gold-linked, our gold equivalent ounce guidance figure has some sensitivity to commodity price assumptions. We received royalties on copper at Cozamin and Pedra Branca and a stream on copper from Vareš, for example.

Further, we have converted land agreement proceeds and interest, which are paid in U.S. dollars into approximately 684 gold equivalent ounces in our 2026 guidance at our assumed average gold price. To give the market an idea of the effect of commodity prices on our guidance, we presented a sensitivity table in our press release last night and which we're also showing here on Slide 9. As you can see on this table, our guidance on a GEO basis would go up with lower gold price and would go down with higher gold price due to the mechanics of calculating gold equivalent ounces. Longer term, we have provided a 5-year outlook for the second consecutive year. We expect 28,000 to 34,000 GEO in 2030, including approximately 600 GEO of land agreement proceeds and interest.

At the midpoint, this represents a peer-leading over 490% increase relative to actual 2025 results. I also want to emphasize that our 2030 outlook continues to be mainly based on assets that are already largely derisked. Over 70% of our growth to 2030 includes assets that are already permitted, financed and built, at least to a first phase. And including the low-risk construction of satellite deposits, derisked assets represent over 90% of that growth.

We also have a number of exciting updates in our earnings report, and I'll just highlight a few on this call. Aura Minerals has signed its road relocation agreement, which immediately unlocked mineral reserves at Borborema and will support expansion to 4 million tonnes per year from the current 2 million tonnes per year run rate. DPM Metals has restarted the Vareš mine and expects to reach its full production run rate by year-end 2026. And on the project front, Orla Mining released an updated feasibility study on the South Railroad and expects to start construction midyear 2026 on receipt of final project permits. And Blackrock Silver received its Class II Air Quality and Surface Disturbance Permit, and the company believes that the permitting process is on schedule and expects to receive all permits by mid-2027. Please see our earnings release for additional asset updates. With over 250 assets in our portfolio, we continue to expect a steady stream of exciting positive news flow.

I'll pass the floor back to David for closing remarks.

Thank you, Jackie. There's indeed lots to get excited about as you look across our portfolio and the various high-quality assets ramping up and entering production. One of the key benefits to the diversified portfolio that we have assembled over the last 5 years is a steady flow of exciting growth catalysts at our underlying assets. These near, medium and long-term catalysts will contribute to peer-leading growth that Jackie highlighted in our 2026 and 2030 outlooks. We continue to see compelling upside to our share price as our portfolio assets continue to develop and as the market gives us credit for this organic growth. Our valuation could be further boosted by accretive growth, but we emphasize that we will remain patient and disciplined as we consider any acquisitions and as we review our capital allocation options going forward.

As our share price has now been comfortably above our warrant exercise price for some time, we think it's prudent to highlight this to any warrant holders on today's call. As of September 30, 2025, the company had approximately 17 million outstanding share purchase warrants with each warrant exercisable into common shares at USD 2.25 per share exercise price. The warrants are listed on the NYSE American under the symbol GROY.WS, and they expire May 31, 2027. For more information on exercising warrants, please see our second quarter earnings press release. We invite you all to join our Q1 2026 earnings call on May 7 and our Annual Capital Markets Day in Toronto and online on June 18. Thank you, everyone, for tuning in to the earnings call.

We'll now open up the call to Q&A. Operator?

[Operator Instructions] And our first question will come from Heiko Ihle with H.C. Wainwright.

I mean we're in an environment of $4,600 gold, obviously, volatility in the last 24 hours has been insane. Crazy news all over the newspapers, wars, geopolitical risks. Do you want to just walk us through your thought process that you apply to potential M&A and the discount rates that you assign to assets given current geopolitical turmoil? And building on all of that, now I'll leave it to that one question given that's probably like 4 in 1. And building on all of that, are you -- is there a certain countries that you may be more focusing on than you were, call it, 6 months ago or even 3 months ago than today?

Thanks, Heiko. I'll hand that off to John Griffith to respond to you. Thank you.

Heiko, I think you're absolutely right about the volatility and uncertainty in the current environment. But I don't think we can let that noise really influence our decision-making. We typically look at commodity prices on a consensus basis when we're evaluating opportunities. And because of that and the dislocation between consensus and spot prices, we've seen that in many instances, others have been willing to accept much lower rates of return on transactions than we otherwise would have.

In other words, we're really staying disciplined and focused. And we will remain that way during these uncertain times. So I don't think the current aberrations really change our view or strategy. And I think regarding geographies, we're very fortunate to have 85% approximately of our net asset value in North America and the remaining 15% in several jurisdictions as well. And I think we have no real pressure to go and deploy capital in parts of the world where risk is perceived to be volatile and a lot higher.

The next question will come from Tate Sullivan with Maxim Group.

In your MD&A, you highlight the sensitivities to copper and gold prices given your current producing assets. Are you still focused mostly on copper and gold in terms of evaluating assets going forward? And did you demonstrate this consistency by selling the tungsten-related asset in the U.S. in the fourth quarter?

Thanks, Tate. I'll hand that off to John again.

Sorry, the question, Tate, could you just repeat it, please?

Still focusing on copper and gold predominantly and what you're evaluating going forward? And just I noted your the tungsten asset-related sale in the fourth quarter as a demonstration of that strategy.

Yes, sorry. The -- I guess the focus for us remains very much on precious metals. We do feel very comfortable looking at what I would describe as the conventional or larger value LME traded commodities such as copper, zinc and nickel. And I think it also ties in nicely with our skill set, both management and Board have a lot of experience in building and operating mines in those various commodities. I don't think you're going to see us depart materially from that strategy unless we were potentially to acquire a larger portfolio of assets, which had smaller commodity-focused assets that fell outside of that ambit, if you will.

And yes, I think for us, the sale of the tungsten asset was certainly opportunistic. The party that acquired that asset is really focused on a more sort of esoteric perspective of building a non-precious metal, nondiversified royalty company, and they were willing to pay up for an asset that had very low value, little to no value in our portfolio.

Okay. And second for me, if I may. I mean, today's gold price moved down as much as 7%. Can you comment on just what you think is behind that? And are you willing to comment on short-term market fluctuations, please?

Yes, I think that's a great question. Ironically, I think it is because of the political turmoil. Quite often, I get asked, why isn't the gold responding to war events or significant economic calamities. And I think typically what happens when those events occur is it becomes a risk-off trade and risk assets are sold regardless of the underlying fundamentals. So I actually see events like this, like the Iran war or economic calamities like the great financial crisis or COVID for that matter, as distractions from the underlying fundamentals of the commodity.

And I think in gold's case, like every other risk asset being sold today, it is being sold off. But inevitably, what happens and invariably what's happened after these calamities in the past is when the risk trade comes back on and capital starts to be put back to work, fundamentals come back into play. And the fundamentals for gold, in my view, are irrefutable in that we're going to see continued and relentless debasement of the occurrences given the absolute amount of debt that's being strapped on. In spite of the fact that we're seeing record revenues, fiscal revenues in the U.S., we're seeing still record fiscal deficits and continued compounding of unsustainable debt at the U.S. government level and for that matter, across the Western world.

And inevitably, that will lead to continued debasement of the underlying fiat currency to debase the debt. And I think those fundamentals will come back into play and gold being the one currency that can't be printed, can't be debased, will inevitably go up as it has relentlessly for the last 50 years in spite of the volatility in the short to medium term.

And this will conclude the question-and-answer session. I would like to turn the conference back over to Mr. David Garofalo for any closing remarks.

Well, thank you all for your kind attention. If you have any follow-up questions, of course, Jackie is available at [email protected] or any of us, first initial last name at @goldroyalty.com, if you have any other follow-up questions, we'll be delighted to hear from you. I hope you have a good rest of your day in spite of the volatility in the markets.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Welcome to the Gold Royalty conference call regarding the acquisition of the Pedra Branca Copper and Gold Royalty. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to David Garofalo, Gold Royalty Chair and CEO. Please go ahead.

Thank you, operator. Welcome all, and thank you for joining us to discuss our Pedra Branca Royalty acquisition as announced on Monday, December 8. Please note that a presentation accompanying this conference call is available on the Presentations page of our website. Some of the commentary on today's call will include forward-looking statements, and I would direct everyone to review Slide 2 of the presentation, which includes important cautionary notes.

We are very pleased with this acquisition of a cash flowing royalty, which will immediately add materially to our revenues. This is an existing royalty, which we acquired from BlackRock World Mining Trust plc for USD 70 million in cash. Some notable highlights of this acquisition and related equity financing are the royalty is a 25% gold NSR and 2% copper NSR on BHP's long-life Pedra Branca mine in the Carajás region in Brazil's Pará State, which has been in production since 2020. This complements our gold-focused portfolio, which already has meaningful copper exposure in the best low-risk jurisdictions in the world.

We estimate that this acquisition is approximately 10% accretive to net asset value per share to Gold Royalty, inclusive of the impact of the equity issuance. On a cash flow per share basis, we estimate 45% accretion in 2026 and lower but still meaningful 15% accretion on cash flow per share in 2029 when we expect to realize meaningful growth from the rest of our high-quality diversified royalty portfolio. We enjoyed overwhelming support from a diverse group of international institutional and retail investors, which delivered a near 2x oversubscribed equity issuance and a deal that was upsized to $90 million and resulted in gross proceeds of $103.5 million, including the exercise of the overallotment option.

Included in this group of new and returning investors was a lead order from BlackRock from whom we purchased the Pedra Branca royalty, demonstrating BlackRock's confidence in the asset and the existing high-quality diversified royalty portfolio of Gold Royalty and its peer-leading growth. As a result of the acquisition and this related equity financing, Gold Royalty is now completely debt-free and has nearly $100 million of cash and unutilized credit lines available for further growth opportunities.

Based on production over the 12 months to the end of June 30 of this year, attributable production will be over 2,800 GEOs to Gold Royalty or over $12 million of royalty revenue at current gold and copper prices. While our CFO, Andrew Gubbels, will soon talk about our equity raise in more detail, our Chief Development Officer, John Griffith, will first give some detail on Pedra Branca.

Thanks, Dave. We're very pleased to share the details of this transaction with you today. Pedra Branca is an IOCG deposit relatively similar to other Carajás region IOCG deposits such as the nearby Salobo and Sossego mines. Pedra Branca was developed by OZ Minerals and started production in 2020 with the Pedra Branca East underground mine reaching its full production run rate in 2022. OZ Minerals was then acquired by the mining giant BHP in 2023, who continues to operate the mine today.

The asset is expected to be acquired by CoreX Holding in a transaction announced August 15, 2025, and expected to close in early 2026. Pedra Branca is part of a hub-and-spoke model feeding the Antas mill. Pedra Branca East is currently in production, while Pedra Branca West is at a feasibility study stage with that 2019 study envisaging Pedra Branca West to start production in 2031. The hub-and-spoke model also envisages potential future production from the Santa Lucia, Pantera, Grota Rica and circular deposits. We note that our royalty does not include these other deposits. However, none of these are currently producing.

BHP's most recent resource disclosure for Pedra Branca shows measured and indicated resources of over 14.4 million tonnes at an average copper grade of 1.5% and an average gold grade of 0.41 grams per tonne with a further 11 million tonnes at an average copper grade of 1.29% and an average gold grade of 0.40 grams per tonne in the inferred category. Based on the mine design and historical throughput rates of approximately 800,000 tonnes per annum, the current resource is expected to support a 15-plus year mine life before accounting for any additional exploration upside.

As Dave mentioned, for the 12 months ended June 30, the royalty paid BlackRock approximately $7.9 million, equivalent to approximately 2,800 gold equivalent ounces, an amount that would represent a meaningful contribution to our near-term revenues and GEOs. The royalty will start to contribute to Gold Royalty in January 1, 2026, and the Royalty will pay us quarterly. Using back of the napkin math at spot commodity prices, assuming measured and indicated head grade is mined and assuming a throughput rate expands to the original design capacity of 1 million tonnes per annum, we would expect an initial IRR from the project of approximately 20%. And this is before any upside from further life of mine extension or capacity expansion.

This diagram published by OZ Minerals in 2022 shows that the previous owner saw mineralization growth potential down plunge to the east for both the Pedra Branca East and Pedra Branca West ore bodies. This represents the potential for exploration upside, which could support future mine life extensions or justify throughput expansions at the Antas mill. Importantly, our royalty has no buybacks, step-downs or other contractual elements that would hinder our exposure to the longer-term optionality of the project. Just a few notes on CoreX, the future owner of Pedra Branca.

CoreX Holding is a global, highly diversified industrial conglomerate. It operates across a wide range of industries, including metals and mining, ports and terminals, green energy, shipping and logistics and other sectors. The company operates in over 55 countries with a workforce exceeding 20,000 employees. CoreX Metals & Mining, the metals and mining subsidiary of CoreX Holding, is one of the world's largest chromite and ferrochrome producers and also has operations in nickel, copper and gold.

I'll now pass the call on to our CFO, Andrew Gubbels, to talk about the equity raise in further detail.

Thanks, John. As David mentioned at the start of the call, we announced a $70 million equity raise on Monday, December 8, at a price of $4 per share to fully fund the acquisition of the Pedra Branca Royalty. With strong demand, the offering was later upsized to $90 million plus a 15% overallotment option for total gross proceeds of $103.5 million. The equity raise not only introduced several new institutional and retail shareholders onto our register, it also strengthened our relationship with many of our most supportive previous shareholders.

With this equity raising and the conversion of our convertible debentures in late November, our share count now stands at 223 million basic shares and 252 million fully diluted shares outstanding. Accounting for the proceeds from the equity raising, net of the purchase price of the Pedra Branca Royalty and the $5 million voluntary debt repayment in October, Gold Royalty has moved from a net debt position of approximately $60 million at the end of Q3 2025 to a net cash position of approximately $14 million as of today.

I'll now turn the call back to David to talk about capital allocation.

Thanks, Andrew. With our Pedra Branca Royalty and the bought deal financing, Gold Royalty has strengthened both our balance sheet and expected incremental revenues. We achieved one of our long-stated goals, catapulting our market value to over USD 1 billion on a pro forma and fully diluted basis. And when combined with our outstanding trading liquidity, we expect that this threshold will make us an increasingly attractive holding for large institutional investors.

It's important to emphasize that this transaction and our strengthened balance sheet doesn't change our core strategy. We continue to watch for accretive growth opportunities, and we also continue to be very disciplined in how we approach growth. Through 2025, we deployed excess capital to debt repayment. As a result of the recent conversion of our convertible debentures and debt repayments from free cash flow and the equity issuance, Gold Royalty is completely debt-free. In the meantime, we look forward to seeing the significant incremental revenues from Pedra Branca and the transformative effect of this royalty to Gold Royalty in 2026 and through the long term.

Operator, we would like to turn the call over to you for any questions.

[Operator Instructions] The first question is from Heiko Ihle with H.C. Wainwright.

You mentioned that the deal was meaningfully oversubscribed and obviously, you increased the size as it went along. I mean just thinking out loud, should we expect more large-scale deals like this? I mean you sort of hinted at it in the last sentence of your prepared remarks. I mean the market interest is clearly there. And then building on all of that, can you walk us a bit through the bidding process, how competitive was it? And were there any people that maybe joined the bidding that we wouldn't know about like names I haven't heard before besides the obvious ones?

Yes, I'm happy to answer both those questions. So it was not a competitive process. We've actually engaged with BlackRock over the last several years on this opportunity. I think the catalyst for them to sell at this point was the sale of the underlying asset by BHP, which provided them, I guess, a proxy for the underlying value of the asset and allowed them to put a pin in terms of what value made sense for them to transact at this point. But they obviously still see a lot of upside in the asset, which is why they subscribed into the equity offer. We see a lot of upside in our existing portfolio as well.

In terms of what's in the pipeline, we're always actively looking for opportunities. And I have to say that we've been extremely disciplined in that regard because it's been 1.5 years between deals. We tried to do more deals over the last 1.5 years. It's not that we haven't been looking to try to transact on accretive deals, but we've been priced out of virtually everything generally because most of those processes were competitive, and there's always somebody with a lower cost of capital or a higher assumed gold price, and we have to stay disciplined to using consensus long-term gold prices and making sure that we're getting attractive double-digit rates of return on opportunities. So if we have to wait to get the right deal, then we will, but we will continue to actively look for new opportunities.

Got it. And speaking of other opportunities, and I'm not too familiar with the site, so bear with me if this question is a little out there. The other deposits that were talked about earlier in the prepared remarks that you don't have the royalty on, is there maybe an interest in creating a royalty package for them? And if so, and I guess that's the real question, do you have a ROFR on the rest of the site?

I'm happy to hand that over to John, are you able to take the question, John Griffith?

Yes. Dave. Yes, there is no ROFR on the other deposits. I think that's really a question that I think one would have to ask CoreX in terms of their intentions for the asset. I think certainly, we look forward to developing a strong working relationship with CoreX once they become the owner of the asset, the transaction scheduled to close, the underlying asset sale scheduled to close in early 2026. So we'll certainly develop that relationship with CoreX and to the extent that there is an opportunity, we'll certainly be there as a strong partner and potential capital provider.

[Operator Instructions] Showing no further questions, this concludes the question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

Okay. Thanks, operator, and thanks, everybody, for attending today. We wish you all a very happy holiday, a happy New Year, a successful New Year. And we're delighted that we were able to end the year with such a significant acquisition and financing to cap off what's been an exceptional performance in terms of our share price this year, which has increased more than threefold. And we're hoping for more of the same, particularly given the growth that we expect to crystallize over the course of 2026 and beyond. There's significant free cash flow growth in our future, and we're delighted to take any questions you might have offline if you want to reach out to any of us individually. Thank you very much.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Good day, and welcome to the Gold Royalty Corp. Third Quarter 2025 Results Conference Call. [Operator Instructions] Please note that today's event is being recorded.

I would now like to turn the conference over to David Garofalo, Chairman and CEO. Please go ahead.

Thank you, operator. Good morning, ladies and gentlemen, and thank you for participating in today's call to review our third quarter 2025 results.

Please note that those not currently on the webcast, a presentation accompanying this conference call is available on the Presentations page of our website. Some of the commentary on today's call will include forward-looking statements, and I would direct everyone to review Slide 2 of the presentation which includes important cautionary notes.

Speaking alongside me on today's call will be Andrew Gubbels, Chief Financial Officer; John Griffith, Chief Development Officer; and Jackie Przybylowski, Vice President, Capital Markets.

We are proud to report a second consecutive quarter of positive free cash flow as well as another quarter of record revenue, adjusted EBITDA and operating cash flow. These cash flows are a manifestation of the tremendous potential we saw from the assets as we've been carefully curating our portfolio over the past 5 years, potential, which is not yet fully realized as we have tremendous growth and value creation still to come. Growing cash flows and revenues continue to improve our balance sheet, as Andrew will discuss in a moment.

But first, I want to go over our approach to capital allocation. We have told you for the last few quarters that debt repayment is our top priority, and we're glad to be able to start paying it down with $2 million of our revolving credit facility being paid down in the third quarter and a further $5 million debt reduction subsequent to quarter end. Capital allocation continues to be an important strategic priority. Looking ahead, we maintain our focus on debt reduction while considering strategic growth opportunities in a disciplined manner.

With our convertible debentures and outstanding common share warrants now deeply in the money and the continued growth of our free cash flow, we could be an essentially debt-free position by the end of 2026. Balance sheet flexibility is a priority, and we believe this will position us well to continue executing our long-term strategy on all cylinders.

With that, I will pass the call over to Andrew Gubbels to discuss the details of our first (sic) [ third ] quarter results and our outlook on Slide 4.

Thank you, David, and good morning, everyone. We're pleased to report new records for revenue and adjusted EBITDA in the quarter and year-to-date. Adjusted EBITDA was $2.5 million in the third quarter, up from $2.4 million in the previous quarter, and up from $779,000 in the comparable quarter in 2024. Total Revenue, Land Agreement Proceeds and Interest was $4.6 million, translating to 1,323 gold equivalent ounces in the quarter. Excluding the impact of recognizing a meaningful deferred tax recovery due to the streamlining and reorganization of our subsidiaries in the third quarter of 2024, our net loss and adjusted net loss continues to improve quarter-on-quarter.

As David mentioned, we again generated positive free cash flow this quarter. We're very excited about this transition to positive free cash flow, which has improved our liquidity position. As anticipated, we have allocated excess cash, including proceeds from the exercise of outstanding warrants to repay part of our revolving credit facility, bringing our debt down from $27.3 million at the end of June to $20.5 million as of today.

As the revenues grow, operating costs remain consistently low and fixed charges decrease, we expect to continue to delever quickly. Our current intent is to maintain a modest cash balance and to allocate additional cash generated from operations towards debt repayment. As David alluded, we believe improving our balance sheet and reducing debt will give us the flexibility to execute our strategy in the long term.

I'll now pass the call over to our Chief Development Officer, John Griffith.

Thanks, Andrew. On October 24, the stablecoin company, Tether, disclosed in the 13D filing with the SEC that it has required 13.8 million share position in Gold Royalty or 8% of our outstanding share float. Days later, it made a further disclosure that it increased its position to approximately 10% of our outstanding shares. We want to declare that we were unaware of Tether's position before this disclosure. We see this as a validation of the immense value in our existing assets and business plan.

However, we must also protect and maximize value for all our shareholders. To this end, our Board and a special committee of independent directors just recently approved the adoption of a rights plan. Details can be found in our recent press release on the matter. We cannot comment further at this time. But what we can do and what we are doing is continuing to work to maximize and preserve the utmost value for all Gold Royalty shareholders.

Gold Royalty was acquisitive when we had the currency to be competitive, acquiring Ely Gold, Golden Valley and Abitibi Royalties in 2021. We have further built on this foundation, having grown our portfolio 14-fold in just under 5 years to more than 250 assets, 7 of which are cash flow. We continue to evaluate growth opportunities. Our strengthening share price and growing cash balance has made us more competitive in pursuing transactions and M&A opportunities.

However, the same is true for many of our peers, the landscape for transactions remains very competitive with at least 30 public royalty and streaming companies and by our estimates, the further 20 private entities, all seeking to deploy capital and acquire royalties and streams, given how attractive the business model is.

As we have noted many times in the past, Gold Royalty is most successful when we can leverage our deep management and Board experience in bilateral transactions. And this continues to be true. While we regularly evaluate growth opportunities, we will certainly continue to remain disciplined in our growth.

We often get asked what opportunities we're seeing in the market. Of course, the higher gold price has not only raised revenues and cash flows for most producing companies, but also opened up multiple financing avenues which means operating companies have alternatives to selling royalties and streams to finance producing gold mines. At the same time, the current environment both in terms of permitting and in terms of mine financing is extremely conducive to mine construction, and we're seeing some miners and developers offering royalties for sale as part of a larger construction financing package. At this time, we're not necessarily prioritizing targeting these preconstruction royalties.

Given our existing deep pipeline of early-stage royalties, we are prioritizing royalties, which are currently cash flowing. We can generate early-stage royalties for no cost in-house through our royalty generator model. And so we have less of a need to buy these earlier-stage assets. The same market conditions supportive of mine development outside of our portfolio should also create value inside our portfolio as these early-stage assets in which we hold royalties will move through development and towards cash flow.

One area where we are seeing acquisition opportunities is in the purchase of existing royalties from prospectors or third-party holders, we might be more open to crystallizing value and historically reasonably high gold price environment.

I'll now pass the call over to our Vice President of Capital Markets, Jackie.

Thanks, John. Turning to Slide 7, I'll review a few of the key developments in our asset portfolio. Starting with the most significant impact to our production forecast. We noted in our October 23 revenue pre-release, that production to Gold Royalty's account could be around or modestly below the bottom end of our previously disclosed guidance range of 5,700 to 7,000 gold equivalent ounces or GEOs, in 2025. There are a couple of reasons for that.

First, it's partly a function of higher gold commodity prices so far this year. We have provided our guidance on a volume basis to introduce as few assumptions as possible into our guidance. However, in calculating the GEOs, we have converted revenues that come from our royalty generator model, which we call land agreement proceeds. These revenues are paid in dollars, and we divide by gold price to drive a gold equivalent ounce number. When we set our guidance in March of this year, we assumed a gold price of $2,668 per ounce through 2025, which was the spot gold price at the time, which converted $1.6 million in revenue to approximately 600 GEOs at that time.

The gold price has been significantly higher than $2,668 per ounce year-to-date. So the $1.244 million in land agreement proceeds that we've received in the first 9 months contribute significantly less on a GEO basis than we had expected. In fact, this would translate to only 388 GEOs at the average gold price of $3,200 per ounce as shown in yesterday's MD&A, rather than the 466 GEOs, which would have been assumed under the March gold price estimate.

The second reason for caution on our 2025 full year guidance is a well-telegraphed temporary shift from mining to development at DPM Metals' Vareš mine on which we hold a copper stream. Even before DPM completed the acquisition of Adriatic Metals, they had messaged that it would change the mining sequence of Vareš. Mining was previously sourced from the upper levels of the deposit and the change involves establishing mining from the lower bottom elevation, which is more efficient and effective as it avoids leaving behind stockpiled ores. Access to the bottom elevation will require extensive underground development, which is expected to displace mine production activity for approximately 6 months.

DPM first released this plan in a NI 43-101 technical report effective April 1, 2025. Of course, at that time, DTM didn't own Vareš and the timing and impact of the change to 2025 production wasn't clear, and so we didn't update our guidance then. But we did choose to reflect the near-term impact in our guidance after the transaction closed on September 3, and after DPM gave more granular detail about the timing of the production disruption on October 9, when it noted that it continues to expect minimal production at Vareš over the balance of 2025.

As Vareš continues to produce from stockpiled ore and given the natural lag and payments between the operator and our stream, we could continue to see stream payments in early Q4. And in fact, we have received some stream payments quarter-to-date. Further revenues from royalties in our portfolio and the royalty generator model could also continue to partially offset the impact of the Vareš closure.

Aura Minerals declared commercial production at Borborema on September 23, on schedule and after first production on March 28. This is great news and shows the quality of Aura as an operator and Borborema as an asset. This also marks a change to our royalty at Borborema, with commercial production, we moved from our preproduction payments and into our 2% NSR long-term arrangement. As the mine continues to ramp up, we expect our revenue contributions from Borborema to grow. We continue to be excited about further upside to Borborema as well. For example, government approval to relocate a highway near the mine would meaningfully grow reserves and will justify an expansion to the operation, providing free value growth to Gold Royalty.

Speaking of expansion and long mine lives, the Canadian Malartic shaft recently reached a depth of 1,179 meters ahead of schedule and received the approval for deepening of the shaft to extend an additional 70 meters to a total depth of 1,870 meters when the shaft is complete. Engineering work of the shaft expansion started in the third quarter of 2025. In our view, the expansion represents upside to our royalty as it is an investment decision, which was justified based on a longer mine life, potentially accessing deposits such as East Gouldie at deeper depths. While East Gouldie is not located within our royalty property foundry as it is delineated today, it does trend towards our property at depth.

Also, development of a second shaft is still under study, and that represents potential for additional future upside at our flagship royalty asset over the next couple of years. Despite the potential short-term disruption of Vareš, we remain confident in our medium and longer-term outlook. We maintain our 5-year guidance at 23,000 to 28,000 GEOs by 2029, and we continue to note this longer-term outlook is fully bought and paid for, is comprised of mostly mature and brownfield operations and is owned by experienced and well-funded operators.

I'll pass the call back to CEO, David Garofalo, for closing remarks.

Thanks, Jackie. There's indeed lots to get excited about as you look across our portfolio and the various high-quality assets ramping up and entering production. One of the key benefits to our diversified portfolio is the steady flow of exciting growth catalysts at our underlying assets. These near-, medium- and long-term catalysts contribute to peer-leading growth that Jackie highlighted in our 2029 outlook. We continue to see compelling upside to our share price as our portfolio assets continue to develop according to our 2029 outlook and as the market gives us credit for this organic growth.

Our valuation could be further boosted by accretive growth, but we emphasize that we will remain patient and disciplined as we consider any acquisitions as we review our capital allocation options going forward. Paying down our revolving credit facility would continue to be one of our priority uses of capital as you have seen in the third quarter and our subsequent debt reduction.

As the share price has now been comfortably above our warrant exercise price for some time, we think it's prudent to highlight this to any warrant holders on today's call. As of September 30, 2025, the company had approximately 17 million outstanding share purchase warrants, with each Warrant exercisable into a common share at USD 2.25 exercise price per share. The Warrants are listed on the NYSE American under the trading symbol GROY.WS and they expire May 31 and 2027. For more information on exercising warrants, please see our second quarter earnings press release.

Thank you, everyone, for tuning in to the earnings call. And with that, I'd be happy to open up the call to Q&A. Operator?

[Operator Instructions] And at this time, we are showing no questions in the queue. So I would like to turn it back to management for any closing remarks.

Thank you, operator, and thank you to our shareholders for joining us today. Of course, if you'd like to follow up with any direct questions, don't hesitate to reach out to us through our 1-800 number or through our e-mails. My e-mail is [email protected]. Jackie is [email protected], and everybody else you've heard on the phone, is first initial, last name @goldroyalty.com. By all means, don't hesitate to reach out. We'd be delighted to you hear from you and answer any questions you might have.

Thank you. Today's event has concluded. Please disconnect your lines, and have a pleasant day.

Good day, everyone, and welcome to the Gold Royalty Corp. Second Quarter 2025 Results Conference Call.

[Operator Instructions] Please also note today's event is being recorded. At this time, I would like to turn the conference call over to David Garofalo, Chair and CEO. Sir, please go ahead.

Thank you, operator. Good morning, ladies and gentlemen, and thank you for participating in today's call to review our second quarter 2025 results.

Please note, for those not currently on the webcast, a presentation accompanying this conference call is available on the Presentation page of our website.

Some of the commentary on today's call will include forward-looking statements, and I would direct everyone to review Slide 2 of the presentation, which includes important cautionary notes.

Speaking alongside me on today's call will be Andrew Gubbels, Chief Financial Officer; and Jackie Przybylowski, Vice President, Capital Markets.

We are proud to report that this quarter, we have firmly reached our inflection point, achieving positive free cash flow and another record quarterly revenue, adjusted EBITDA and operating cash flow. We also continue to expect steady improvement over the coming quarters through the successful ramp-ups of several of our key assets, including Vareš, which achieved commercial production on July 1; Côté, which announced on June 23 that had reached its steady-state run rate; and Borborema, which started operations on March 28 and continues to progress towards commercial production later this year.

Growing cash flows and revenues continue to improve our balance sheet, as Andrew will discuss in a moment. But first, I want to talk about our approach to capital allocation. Capital allocation continues to be an important strategic priority and will be even more important as we harvest cash through this year. Looking ahead, we maintain a clear focus on debt reduction, while considering capital returns to shareholders and pursuing strategic growth opportunities when appropriate.

With our convertible debentures and outstanding common share warrants now deeply in the money and our growing free cash flow, we could be in an essentially net debt-free position by the end of 2026. We continue to monitor the landscape of consolidation across the royalty space. With the entry of new strategic capital into our sector and the recent announcement of 2 major mergers in the royalty space this year already, we do expect the pace of consolidation in the royalty sector to accelerate. While we can't predict the sequence or participants in industry consolidation, we believe the drive to create a mid-tier royalty company with organic growth and sufficient scale to attract global institutional equity investors, while also realizing cost synergies will be a big driver of continued merger activity.

While we believe the re-rate being experienced by Gold Royalty and some of our peers is partly reflective of this dynamic, we also expect that the realization of Gold Royalty's peer-leading revenue and cash flow growth this year has been a large driver of our share price performance in 2025. The better news is that this is just the beginning of a minimum 5-year period of pronounced attributable gold equivalent production growth across a portfolio of royalties and streams on large-scale and long-life mines in some of the best jurisdictions in the world.

We spent significant time on our June 12 Capital Markets Day discussing our capital allocation strategy and our views on consolidation. If you weren't able to attend the event live, I would encourage you to view the replay, which is archived on our website under Investors and Corporate Presentation.

With that, I will pass the call over to Andrew Gubbels to discuss the details of our first quarter results and our outlook on Slide 4.

Thank you, David, and good morning, everyone. We're pleased to report new records for revenue and adjusted EBITDA in the quarter and half year. Adjusted EBITDA was $2.4 million in the quarter, a nearly 50% increase compared to the previous quarter. Total revenue, land agreement proceeds and interest was $4.4 million, translating into 1,346 gold equivalent ounces in the quarter. Our reported revenue included the recognition of $0.3 million in revenue related to royalties payable for prior periods after we received a favorable judgment in a previously announced dispute with the operator of the Jerritt Canyon mine regarding our per ton royalty interest. This judgment will not impact future royalty revenues should Jerritt Canyon restart.

As David mentioned, we reported both positive operating cash flow and free cash flow this quarter. We are very excited about this transition to positive free cash flow, which is primarily due to the contribution of the Vareš and Côté Gold Mines, strong gold prices, which averaged $3,279 per ounce in the quarter and relatively flat Q2 G&A costs of $1.8 million. Our operating costs, which include G&A and project evaluation expenses continue to be in line with an average of our other small cap royalty and streaming peers as we showed at our June 12 Capital Markets Day.

Looking forward, we reiterate our 2025 and 5-year outlook. We will use excess cash, including any proceeds from the exercise of outstanding warrants to opportunistically repay the $27.3 million outstanding on our revolving credit facility. As our EBITDA grows over the coming quarters, we expect to delever quickly such that Gold Royalty is effectively debt-free by the end of 2026.

I'll now pass the call over to Jackie to review our key operations.

Thanks, Andrew. Turning to Slide 5. I'll review a few of the key developments in our asset portfolio. Côté has achieved a major milestone, achieving nameplate throughput. IAMGOLD reported that on Saturday, June 21, 2025, the Côté processing plant operated at nameplate capacity of 36,000 tonnes per day on average over 30 consecutive days. Nameplate capacity was reached well ahead of the company's target of Q4 2025, and our revenue from Côté was strong at over $1 million in the quarter.

IAMGOLD expects further improvement with the installation of a second cone crusher later this year, which is expected to improve the reliability of the combination circuit and debottleneck the dry side of the plant, offering the potential for further optimizations and improvements in the near future.

Aura Minerals continued start-up activities at Boberema after the mine achieved first production in late March. Aura has maintained its 2025 guidance of 33,000 to 40,000 ounces of gold produced. While the asset has not yet declared commercial production, the operator continues to expect this milestone in the current quarter. As such, we continue to receive preproduction payments of 250,000 ounces of gold per quarter, which contributed a meaningful $1.2 million in revenue in the second quarter at strong gold prices.

Offsetting the strong performances at Côté and Borborema, we reported $18,000 in revenue at Agnico Eagle's Canadian Malartic mine in the second quarter. We view this relatively light result as a temporary issue of mine sequencing. The operator continues to highlight the tremendous potential at Odyssey in the longer term, including a potential extension to shaft #1 and installation of a second shaft.

We also continue to watch Adriatic Metals Vareš mine, which achieved commercial production on July 1, 2025, roughly in line with the operator's target of Q2 2025. On July 28, Adriatic Metals reduced its full year 2025 guidance to 475,000 to 585,000 tonnes ore milled from 625,000 to 675,000 tonnes previously.

Despite the guidance cut at Vareš, Gold Royalty maintains its full year guidance of 5,700 to 7,000 GEO in 2025 as the shortfall at Vareš is expected to be partly offset by better-than-expected performance from other portfolio assets, including the assets mentioned previously. We are also maintaining our 5-year guidance at 23,000 to 28,000 GEO, and we continue to note that this longer-term outlook is fully bought and paid for and is comprised mostly of mature and brownfield operations owned by experienced and well-funded operators.

And with that, I'll pass the call back to David for closing remarks.

Thank you, Jackie. There's indeed lots to get excited about as you look across our portfolio and the various high-quality assets ramping up and entering production. One of the key benefits to our diversified portfolio is a steady flow of exciting growth catalysts at our underlying assets. Those near, medium and long-term catalysts will contribute to peer-leading growth that Jackie highlighted in our 2029 outlook.

Our relative valuation chart shows that Gold Royalty has made significant progress towards fair value on a price to net asset value basis since our first quarter call on May 8. However, we continue to see compelling upside to our share price as our portfolio assets continue to develop according to our 2029 outlook. And we emphasize that we will remain patient and disciplined as we consider any acquisitions and as we review our capital allocation options going forward. Paying down our revolving credit facility will continue to be one of our priority uses of capital.

As our share price has now been comfortably above our warrant exercise price for some time, we think it's prudent to highlight this to any warrant holders on today's call. As of June 30, 2025, the company had approximately 20 million outstanding share purchase warrants, with each warrant exercisable into a common share at USD 2.25 per share. The warrants are listed on the NYSE American under the symbol GROY.WS and expire May 31, 2027. For more information on exercising warrants, please see our second quarter earnings press release.

Thank you, everyone, for tuning into the earnings call. And with that, I'd be happy to open up the call to Q&A. Operator?

[Operator Instructions] We will pause momentarily to pause the roster.

Jamie, while we're assembling the roster, I do have a question that's come in by e-mail. Could Gold Royalty specifically state how the free cash flow from Q2 2025 was handled?

Well, I'll pass that on to Andrew to answer.

Thanks, David and Jackie. Yes, we did generate positive free cash flow for Q2 of this year. At this stage, with respect to free cash flow, I would like to target a cash balance inclusive of our undrawn revolver above $5 million. And we had cash a little above $3 million. We've got $2.7 million in undrawn revolver capacity as well. We are slightly above $5 million at this stage. I do expect in Q3 and Q4 to accumulate more free cash flow. And as we do, we will consider or evaluate the repayment of our revolver. So at this stage, given we finished the quarter, we're slightly above that threshold that I'm looking to keep, and we will start looking at repayments to the revolver moving forward in the coming quarters.

[Operator Instructions] We do have a question on the audio side, and this comes from Eric Winmill from Scotiabank.

Just wondering if you can elaborate at all on Jerritt Canyon, the revenues you received and how we should think about Jerritt for the balance of this year and next year? Are you expecting any additional revenues to come in there? It would be helpful.

I'll hand that off to Jackie.

Yes, sure. Thanks, Eric, for the question. So the revenues that we received were in relation to a settlement that had been reached earlier this year, just at the end of the quarter. So our royalty on Jerritt Canyon includes 2 components. It's a 0.5% NSR and as Andrew mentioned, there's a sliding per tonne rate as well. And that's the aspect that was disputed. The settlement that we've recorded in the quarter represents the final amount for that settlement that we were expecting. We had previously accrued a small amount as well. But this $0.3 million is the final amount that we're expecting.

So we're not expecting any further revenues from Jerritt Canyon this year and nothing else related to that settlement. If Jerritt Canyon were to restart and the company, First Majestic has indicated that they are looking at restarting, then, of course, we would receive the royalty revenues, both from the 0.5% NSR and the sliding per tonne rate going forward, but we're not expecting anything else until the mine were to restart.

Okay. Great. Super helpful. I appreciate it. Maybe just one more, if you don't mind, but if you could comment on the merger landscape. I know you touched on it in the preamble at the outset, but just curious, it's obviously exciting time in the royalty space and Gold Royalty stock has appreciated pretty substantially this year. How does that affect your plan? And would you be more likely to be a consolidator or look to be acquired? I mean you've got a good organic profile. Anything you could touch on there would be helpful.

Yes. Thanks very much, Eric. Look, I do think that consolidation can only accelerate from here. Obviously, the fundamentals of the gold price are very helpful in that regard. But also, there's been new entrants in the space. Namely, we've seen a very large stablecoin fund and Tether taking a very significant investment in one of our peers and with a stated objective of consolidating the sector and putting more capital to work and perhaps creating more stablecoin products backed by royalties and streams. That can only enhance the amount of capital available for the smaller cap universe of royalty players.

So I'm optimistic that will lead to more consolidation and lead to significant synergies. There's probably $50 million to $75 million of excess G&A among the smaller cap players in the space. So there's a lot of value to be created through consolidation and scale. And I think the creation of a mid-tier player has always been a driving corporate vision for Gold Royalty, one that's sufficiently large and liquid to attract generalist equity investors, but still small enough to grow in contrast to some of the larger cap players in our space who are excellent companies, but don't have the growth profile that a mid-tier competitor can create. And we think that can create a significant re-rate opportunity.

We've always seen ourselves as a player in the space. We want to be -- eventually be a consolidator, but we don't feel we're in a position right now or have the currency to be a significant consolidator. What we want to do is harvest a very strong rate of return from the significant investments we've made in our portfolio. So I would say over the short term, we're very much focused on making sure that our business is running well, it's deleveraging and hopefully, in time, returning cash flow to shareholders in various forms. But hopefully, in time, we'll be a consolidator as opposed to being acquired.

We do have an additional question from John Bair from Ascend Wealth Advisers.

Sort of as a follow-up to that last question. When you're looking at acquiring a royalty, how far out do you typically look at the project coming online? In other words, you're looking at a 2- to 3-year time frame, 5 years? And how does that play into your strategy?

Well, we have Peter Behncke, who's our Director of Corporate Development and Investor Relations, also on the call taking questions. So I'll hand that off to Peter to answer.

Thanks, David, and thanks for the question, John. The answer is really, it depends. I'd say for M&A, individual asset acquisitions through financing or third party, we are looking at that line of sight to cash flow. So assets where there's a clear path, a capitalized operator that's going to develop that asset. So to your examples within that 5-year window. Longer-term assets, so early exploration state royalties, we actually generate those ourselves through our royalty generator model primarily in Nevada. So we can get longer-dated assets effectively for free. So our focus for nonorganic growth is really in that near-term cash flowing royalty.

Okay. And then jurisdictionally, staying primarily in Canada and the U.S.? Are you looking elsewhere? Are there other jurisdictions that are considered, let's say, relatively stable that you are investigating or see opportunities in?

Yes. No, it's a good question. With our strong base over 85% of our business in Quebec, Ontario, Nevada, we have that scope to look abroad, and we have looked abroad. But to your point, staying in safe jurisdictions is definitely a priority. So we go where there's high-quality assets. We've got good trust in the operators, and there's that rule of law in place that we can enforce our royalty or streaming contracts. But as we've made in the last couple of years, investments through Brazil, we'd love to have interest in Australia, although those opportunities are sometimes less frequent, and then parts of Africa that would be selective. But we have a very strong base to begin with, and we continue to look for opportunities in Canada and the U.S.A. as well.

Last question, I appreciate it is, at what point would you consider reinstating a dividend?

Yes, I was going to grab that one. Thanks. So at this stage, we're very much focused on deleveraging. And as I said earlier on in the call, we expect to be net debt free. By the end of next year, we expect our debentures will convert given how deep in the money they are. We also expect to largely repay our revolver. And I think at that point, we're in a position to start to talk about returning capital to shareholders because then we'll be in a very steady and long-term free cash flow generating phase of our existence.

Yes, that's good. Getting delevered is a very important thing, in my opinion. Good luck.

And ladies and gentlemen, at this time, and showing no additional questions, I'd like to turn the floor back over to management for any closing remarks.

Well, thanks, everybody, for your attention today. Of course, we're always delighted to hear from you. If you'd like to call in at our 1-800 number, we're happy to return calls or e-mail us either [email protected] or David -- excuse me, [email protected] as well, Peter, and Andrew will be happy to take your questions as well if you'd like to e-mail us or call us. Hope to hear from you over the course of the quarter.

And ladies and gentlemen, with that, we'll conclude today's conference call and presentation. We thank you for joining. You may now disconnect your lines.

I want to welcome everybody here that's live today. And also many online participants that are here for the gold royalty presentation. Our Capital Markets Day, as we like to call it our Investor Day, if you will, and it's an auspicious time because we are approaching all-time highs in the gold price again. We're approaching a little over $3,400 an ounce and not far from the all-time highs we achieved earlier in the year. And gold has been one of the best-performing asset classes in the whole investment universe, not just in the resource space.

And our own stock is at 2-year highs, but still with a lot of intrinsic value to be realized in our portfolio, and we're delighted to have an opportunity today to talk about our portfolio in quite a bit more detail. We'll have a little bit of a modeling update as well, so we can get into a bit more detail on the individual assets. But we are at an auspicious time within our history as well, approaching free cash flow generation this year for the first time after having built the business up over the last 4 years since our IPO in March of 2021. So we're excited to talk about that. And the growth that we're expected to have in free cash flow, almost exponential growth over the next 5 years coming from some of the largest scale gold operations in North America and a number of other assets we brought into the portfolio within South America and Europe as well.

Here's a quick look at our agenda this year -- this today. I will start with a bit of an introduction of the company, talk about the macro environment for gold and gold equities. John Griffith, our Chief Development Officer, one of our founding executives -- we'll talk about our corporate development function, our criteria for growth and also our tools and platforms for gold. Andrew Gubbels and Jackie Przybylowski, our CFO and VP Capital Markets, respectively. We'll have a bit of a modeling update over the course of today as well. So you can get into a little bit more granularity on the details behind our growth.

And then we have a number of special guests today that I'm delighted to introduce because I've had long-term connections with virtually all of these people, at least the organizations I've been in the business for 35 years, and Alastair Still worked with me at Goldcorp. And Alastair has a great history as well. He's a geologist by training, but he was one of the senior managers at our Porcupine complex, which is actually topical today as we talk about our board and operation a little later on our Board and royalty. And then he went down to Cerro Negro and built that mine where he was a General Manager. And then he was part of our corporate development group at Goldcorp. So he brings a wealth of experience in terms of mine operation, mine development but also in terms of understanding the gold sector as well.

And I can't think of anybody better suited to derisk the assets within our former parent company, gold mining. We have royalties on a dozen of those development stage assets within gold mining's portfolio. And I remember when Amir Adnani, the Co-Founder of Gold Royalty and I were sitting at a cafe in West Van back in 2019, trying to conceive a gold royalty. We couldn't -- actually, we picked up the phone, my speaker phone on my high phone sitting on this cafe outside. And we -- the first person we call was Alastair Still, we needed somebody with a strong technical foundation to really advance those assets. And remember, we offered them the job on the spot as he's still working at Newmont, we're able to recruit them not only to be the CEO of Gold Mining, but also the Director of Technical Services for Gold Royalty. So he's been instrumental in growing the Gold Royalties portfolio as well since he joined the organization about 4 years ago.

The other guy I'm delighted to introduce is Brian Penny. And Brian and I go back pretty much at the start of my career in that. So I remember that when I was in that as a young treasurer, I looked up at Brian Penny because he was already a well-established CFO. He was one of the founding executives of Kinross. And I have to say Walbridge has a great asset in [ Fenalon ], but they are very lucky to have a gentleman of that pedigree running the organization. He brings a long history of operations and mine development to the table. And Brian delighted to have you here today to talk about Fenalon.

I don't know Mark as well at Discovery Silver, but I do know those assets very well because we ran them when I was at Goldcorp or the [ Porcopine ] complex. But if I could I couldn't think of a better person to run that complex, then Tony Makuch, who is Mr. Timmins, if you will, the unofficial mirror of Timmins comes from that background. And what he's done with Discovery Silver is remarkable in terms of the launch of that and the share price has done extremely well. But what's exciting for us is he's overcapitalized the business. He's brought a lot of capital to bear and a lot of expertise, which means he's going to reinvigorate that cap, and we're excited about what he's going to be doing with Bordon as he looks at exploration potential there and realizing the absolute geological potential of that deposit. And I'm sure Mark will give us a lot of background on that.

And while I don't know [ Jean-Marie Calec ] very well, I do know Agnico Eagle very well. I spent 12 years here as CFO and his formative years when we were a 90,000 ounce a year producer. By the time I left, we were about 1 million ounces. And of course, Agnico Eagle has gone on to much bigger and better things since I left. But I'm delighted that we have a company, their pedigree coming in to present about our Keystone royalty on Canadian Malartic over the course of today as well. So a lot of people that you're going to hear from today. I think it will be an informative session. What I thought I would do is spend a little time talking about our pipeline, and this pipeline represents not all of the royalties we have.

It's a snapshot of some of the key royalties. We have 7 cash flowing royalties, which we'll get into a bit more detail over the course of the presentation, 14 in various stages of development and construction, underpinning that significant growth in revenue we expect to realize over the next 3 to 5 years. We have a significant number of advanced exploration assets as well, well over 35, 40 of those that have 43-101 resource on them, and then we have some earlier stage royalties in the exploration pre-resource stage, which represents a lot of the optionality we have embedded in our portfolio.

And while the market isn't attributing a lot of value to those, what I should add about this portfolio is completely bought and paid for. We don't have any capital costs, any installment payments which means that optionality comes to our shareholders for free because we don't have any holding costs either. And so there's a lot of optionality that we think will be realized over time. And one of these earlier stage royalties, as John will get into a little later on, are generated organically through our sweat equity. We don't invest any serious capital, which means the return potential on the ones that actually come to fruition is infinite because our entry cost is effectively 0. So that's the remarkable power of that royalty generator model, which John will get into in a bit more detail. But really the engine for growth over the next 5 years are a number of now producing assets and assets that are in very late stages of development or brownfield expansions, which will deliver significant revenue growth with well-capitalized operators.

And you can see we have a very diverse portfolio of operators within our partnerships, over 80 operators. And you can see all the largest cap gold companies in the world are -- we count as operating partners within our portfolio of over 240 royalties. Just in terms of a snapshot of the geographical spread, the commodity spread of our portfolio. Over 80% of our portfolio by number and value are Nevada Quebec in Ontario, which -- the phrase institute judges as some of the best jurisdictions in the world, certainly among the top 5 perennially for mineral potential, low political risk and low regulatory risk. And that's an enviable portfolio of assets from that perspective.

But also, you can see the concentration on gold. We very much are a pure gold royalty company as our name indicates. And while we welcome some diversification, I would say what happened quite organically and naturally within polymetallic deposits that we understand. And if you look at our Board and management, there are a number of us that have built gold-bearing VMS deposits copper gold porphyries. So if we welcome some diversification in our portfolio within those types of geological settings where we think we can add value that we understand fundamentally, then you will see some diversification over time. What we won't do is force ourselves to diversify into areas that we simply don't understand. So you won't see us in exotic battery metals or things like that. And as our growth indicates you'll see a little later on, a lot of our portfolio is already cash flowing or on the cost of cash flowing.

So we have significant concentration in cash flow and near cash royalties. So that means that intrinsic value is likely to be crystallized in the very short term in terms of growing free cash flow over the next 3 to 5 years. I'll spend a few minutes talking about gold fundamentals. I think the World Gold Council quite often criticizes mining companies and royalty companies. We're not talking enough about their underlying commodity. And I think it's important to talk about the historical perspective around our commodity. If you look over a 50-year horizon from the point we banned the gold standard in the Western world, it's been a 1 rate trading gold. And why wouldn't it be? When there is no tether and is not meant to be -- it's not meant to be a reference to the announcement by elemental yesterday, but when there's no tether for our fee currencies, ultimately, what happens is that those fiat currencies are printed with reckless abandon. And that's what's happened over a 50-year horizon.

And the arithmetic is very simple. Gold has increased hundredfold in value over that 50-year period. The purchasing power of the U.S. dollar is tenth of what it was 50 years ago. It's a very direct and linear relationship over a long time horizon. Yes, there's a lot of volatility in the short and medium term around the commodity. It really isn't a commodity. It's a currency. And that's really what this graph demonstrates is the currency power of the gold. Gold can't be printed. There's a finite amount of volume that's introduced or supply is introduced into the market. We're adding maybe 2% to global aboveground supply every year. and there's a remarkable inelasticity supply to price. So we're not seeing the mining industry really react in any meaningful way to the increase in the gold price in terms of increased supply. It's very difficult to bring supply on. It's capital intensive. It's risky from a social engagement standpoint. It's a long investment horizon is really to respond to higher gold prices.

So you're not going to see a supply side response, unlike what's happening in the fee currency side, where we're seeing a remarkable increase in monetary supply, and it has been happening since the great financial crisis. And clearly, the U.S. government is pursuing a weak dollar policy in order to stimulate industrial capacity within the U.S. but that will only lead to competitive evaluation of other fee currencies globally. Gold can go only go in 1 direction, regardless of what currency you transact with when you're looking at gold as a commodity and a currency. And we've seen a record amount of ETF buying largely driven from Asia and Europe, less so from North America. And what's remarkable about this rally in the gold prices, a lot of it has been led by the buying of the commodity from Asia. They are not the traditional buyer of gold equity. So that's why we've seen gold equity prices languish and not respond to record high gold prices. We're certainly not even approaching near the multiples we had coming out of the great financial crisis when gold and gold equities were experiencing all-time high. So we're not anywhere seeing the kind of commodity response that we've seen.

And again, Central bank line has been a big driver, but a lot of it has been coming from Asia. And again, the Asian buyers are not the same guys that buy the equities. It's different sets of buyers. We haven't seen a response in the gold equities in any meaningful way, and this is a very busy chart, which is meant to demonstrate that it's been very selective buying of gold equities in North America because they are not the ones that are buying the commodity, different sets of buyers, and so we're going to see a response, we believe, when we see a rotation out of the general equity markets into commodities and resource stocks generally. We haven't seen that. We're still seeing a very heavy concentration on the general equity markets and the big 7 technology stocks.

The outperformance we've seen in the equity markets have not been led by the resource stocks, but the commodity has really been leading the equities, and we believe there will be eventually an equity response because a lot of these businesses, particularly the large cap businesses in our universe, are generating record amounts of free cash flow, and they're trading at very depressed multiples, not only in a price and net asset value basis, but also on price of the earnings, price to cash flow, certainly relative to where they were in peak equity valuations over a dozen years ago. So there's still a lot of upside, we believe, in the equity prices of the industry. One of the reasons we think we haven't seen the kind of response in the gold equities is a couple of dynamics. The industry is actually shrinking because juniors have not had access to capital markets for at least consistently for over a dozen years. We saw peak exploration spending and peak reserves in 2012.

And since then, we've seen largely an abandon of the general equity markets from the commodity space and in particular, the juniors that are still experiencing flat line valuations over the course of the last 12 or 13 years that we haven't seen that trickle down of money into the juniors. And so we've seen a shrinking of reserves, a decline of about 40% from the peak in 2012. So we have a shrinking universe of reserves in the overall producer universe. And so what inevitably we've seen happen is cannibalization of the producers. And that, if you look at the greater context of the overall producer universe, it's a zero-sum game. It increases share count of the established producers but doesn't necessarily increase reserves on a per share basis or production on a per share basis. So over a long period of time, the largest cap players in our space have not seen the reserves and production increase in any meaningful way even over the last 30 years because of the lack of exploration guess the juniors have experienced because of their lack of access to capital.

The other dynamic is all-in sustaining costs have crept up, particularly during the COVID crisis. when we saw inflation accelerate. And certainly, mining companies were not immune from inflation we experienced in the general economy. So we saw unit costs start to go up even as the gold price went up. And over a 30-year period, the R square coefficient, the correlation is [ 98 ] over a 30-year period of all-in sustaining costs on a unit basis to the gold price. We've seen some separation of late. And so we've seen leverage delivered in the short to medium term among the producers. We're seeing increasing cash flow both on an absolute and per share basis. But we think inevitably what will happen at these high gold prices is lower-grade material will be brought into the mine plans, and we'll start to see all-in sustaining costs on a per ounce basis start to creep up.

And that's inevitably what's happened when we've seen separation between the gold price and all-in sustaining costs in the past. So we do think the leverage proposition is more difficult among the producers and that's why there's, we think, a general reticence for the general equity investors to come into the space. They want to see that the separation. This increase in margin is sustainable before they start to meaningfully allocate capital into the producer universe. A little bit about our growth outlook. You can see that we've guided for about 16% growth in our geos this year. If you take the midpoint of our guidance of 15%, 5,700 to 7,000 ounces per day -- per annum of geos.

When you look over a 5-year horizon, and this is the first time we provided 5-year guidance because we wanted to show the meaningful growth in our production -- or contributable production over a 5-year period coming from some of the largest-scale mines that are now commissioning, expanding in late stages of delivering their growth. And you can see that we expect to grow our production on an attributable basis over 360% of or about 36% compounded annual growth per year over the next 5 years. 85% of that growth is coming from established operations or brownfield expansions of established operations. So effectively, completely derisked from a construction standpoint. Really, we're at a point now where we've been building out this business for 4 years, and we're harvesting the returns that we've been promising to our shareholders.

And we're starting to see that response in our share price. The market is starting to recognize that, that derisking is largely behind us, and that growth is being crystallized in real time. And in dollar terms -- sorry, this just provides you a little bit more granularity in our production growth in terms of attributable ounces, 16%, as I said, this year, over 360% over 5 years, 36% compounded annual growth and over a 5-year horizon, is steady growth every year. It's not concentrated in any 1 year. And what this graph shows you in the yellow bars is our volume of attributable production on a consensus basis. We don't provide year-by-year production guidance we provided in year 1 -- in this year, 2025 and over a 5-year horizon.

And you can see the consensus estimates are still a little bit below what our own guidance is in 5 years be there's a number of expansions that have only been recently announced that analysts haven't had an opportunity to assimilate into their models yet, namely the expansion that we expect at [indiscernible] expansion we expect at Borborema and also REN, which Barrick published an initial production plan only a couple of months ago. So a lot of analysts haven't had an opportunity to absorb that into their models as well. So we're a little bit above consensus estimates over a 5-year horizon. But you can see that we're approaching 30,000 ounces of attributable geo production by the end of the decade. And if you overlay various oil price assumptions on that and get close to spot, we're looking at about $90 million of revenue by the end of the decade at spot prices against [ $7 million to $8 million ] of G&A. And by the way, those G&A costs have actually come down because when we absorb 3 of our competitors over the course of 2021, we vaporized all of their G&A. There was about $10 million of collective G&A in those 3 companies that is completely gone.

In 2023 alone, our G&A costs came down 40% as a result of our post-merger integration efforts of the 3 companies we absorbed in 2021. So those costs are stable. They've been predictable over the last couple of years. And so that means every dollar of incremental revenue goes right to the bottom line in terms of free cash flow generation. And the other thing I should point out is -- all of our gold exposure is in the form of royalties. So we see no increase in cost of sales as the gold price goes up. So there's no cost counter to our increase in gold revenue regardless of a gold price assumption, you assume over this 5-year horizon.

I'll spend a bit of time talking about capital allocation strategy, which I think is appropriate given we are now in a period where we're starting to generate positive free cash flow. And I can tell you, our absolute focus is starting to deleverage the balance sheet over anything else right now. And that's driven by we've gone through this rapid growth phase, and we want to reload the balance sheet so that we're well positioned to be competitive for growth opportunities going forward. We want to have debt that we can draw on effectively a line of credit or a credit card, if you will, to continue to grow the business. But also, it recognizes that even at 2-year highs in the gold price, we're still depressed on a relative basis relative to our peers when you look at price and net asset value basis. We simply don't have the currency to grow meaningfully as we did the last several years.

And so we've actually saddened our hands. When you look at our growth over the last year, we've really effectively not acquired anything of significance since virus over a year ago, May of 2024. And that's been deliberate. It's not because we haven't looked at things. We're in a perpetual state of due diligence. So we continue to look at growth opportunities, but we simply have been priced out of everything. And that's appropriate because we have very stringent return on capital criteria. It has to be well in excess of what is now heightened cost of capital. And so that means that we simply aren't competitive right now in terms of what's being traded, and we'll be disciplined and wait for our currency to come back before we start to talk about growth opportunities.

And the other conversation we can start to have is about returns of capital to shareholders once we get into sustainable free cash flow territory, dividends, share buybacks, if our currency continues to be depressed. That would be obviously an obvious allocation of capital source that we'll look at over the next little while. So as I said, growth in acquisitions is very much at the bottom of our priorities, given the still depressed nature of our currency, in spite of the fact that we are at 2-year highs. And you can see that in terms of the pace of growth. This encapsulates the growth that we've realized over the course of our 4.5-year history. We saw rapid growth in 2021 when we have the currency to do so.

John will be the first to admit that we had a very strong currency coming out of our IPO. We IPO-ed at $5 a share. The stock ran to $7 per share. we recognize we had a significant multiple advantage over our peers, and we did take advantage of that. One, because we could do accretive deals, but we also recognize that we had on operating partner. We had a set of assets that were all in the development stage without necessarily a clear line of sight to production, and we needed to diversify terms of our operating partnerships but also start to introduce some cash flowing assets and some -- a more immediate growth into the portfolio. And we did that by acquiring Eli, Golden Valley and Abitibi. That brought in 150 additional royalties. But importantly, brought in Canadian Malartic, which is still one of the biggest gold mines in North America and operated by the biggest gold mining company in the world.

And we brought in REN, which is the underground extension of Goldstrike. So we brought in cash flow and we brought in growth immediately by affecting those acquisition targets. Since then, we've had to really slack in the pace of acquisition because -- in 2022, we started to see interest rates go up at the Federal Reserve and other central banks tightened their rates in response to inflation. We saw our currency derate as we saw much of the gold sector and gold equity university rate. We simply didn't have the currency to start to transact and do M&A again.

So we focused on using the treasury we had from the IPO to selectively acquire assets that were near cash or cash going to complement the growth that we already had embedded in our portfolio. So that brought in Cote, Cozamin, Borborema, which is now under production and virus, which is now under production. The complement a very significant reserve tail we had embedded in the portfolio we acquired through M&A over the course of 2021.

So with that, I'd like to hand it on to John Griffith to talk about our corporate development function. Thank you very much for your attention today.

Thanks, Dave, and I'll just echo Dave's comments and welcome to everyone in the room and also to all those on the phone. Let's find my bearings here. So I think, Dave, really captured our corporate development strategy as it currently stands in 2 words. And I would echo those words again, patience and discipline. And I think we can do that because we have really built a fantastic portfolio of 248 royalties, which places us in the top tier among all listed royalty companies, including the Big 3. So that's quite an achievement. If you think about our 4-year history as a royalty company. and it gives us enormous flexibility, but the privilege also of not having to go out and do additional deals to grow. I think we actively look at an opportunity almost every day.

So our team, notwithstanding the fact we're not executing on any deals at the moment. is keeping its skill sets sharpened. We -- there is a tremendous amount of activity in the royalty and streaming sector. And we've looked at over 400 opportunities since formation. We've only submitted offers on 40 of those 400, so roughly 10%. Of those 40 offers submitted, we've only executed 10 transactions. So it's a very, very narrow aperture of transactions that have resulted in us growing from 18 to 248 royalties. And I think if you recall the slide that Dave showed you of slowing growth, we've really started to approach more of a rifle shot sniper approach to growth.

Our last 3 acquisitions were all cash flowing assets or near-term cash flowing assets, and that was obviously very purposeful. It was very important for us to improve the cash flow profile to supplement the longer-term growth that we have embedded in our portfolio. Dave mentioned, we used our paper to fund growth when it was accretive and appropriate to do so. But right now, our multiple is closer to 0.8x. And a lot of the opportunities that are being bid in the market are being bid at 1x NAV at a 5% discount. We simply will not give away the inherent growth that we have in our portfolio that accrues to our shareholders and give it to other folks to benefit from. So until our multiple is strong until our balance sheet is replenished from the cash flow that we're going to be generating. We will remain as I said, patient and disciplined.

Anyway, turning to the dynamics in the royalty and streaming sector. It is an increasingly competitive space the more than 40 royalty and streaming companies and private equity groups that are all looking for the same opportunities, royalties and streams. The larger peers have significant amount of capital to deploy. And in addition to that, many of the operating companies are well capitalized and have a lot of cash flow in this current environment. So it makes it even more difficult to really think about deploying capital in a value-accretive manner. I'd like to just think about the size of the M&A market and share that with you.

For the past 5 years, transaction value has averaged about $3.5 billion per annum. In the previous 5 years before that, it was $2.4 billion. So there's definitely been growth. But to put that in context, the aggregate market capitalization of the listed royalty and streaming companies is just north of $100 billion. So $3.5 billion on average represents 3.5% growth purely from M&A. And that's not actually a significant number when you think about it. So when you turn around and you look at that growth chart that Dave showed you, with 360$ in absolute terms, over 30% on a CAGR basis, already bought and paid for. That's really the compelling factor that really drives us to be increasingly laser-focused on adding value through accretive transactions only. And until we can do so, we will remain very, very cautious in our approach.

If I turn back to my notes, I think A lot of people ask about what are the types of opportunities we're seeing out there. As I said, we look at a transaction almost every day. And I'd say the vast majority of those transactions at the moment, unsurprisingly, are early-stage opportunities. When you think about that, it makes sense. Dave mentioned that -- the juniors have had for a long time and continue to have a lack of access to capital. royalty and streaming -- the royalty and streaming sector has been one of the predominant sources and growing sources of capital for the mining industry. So it's not surprising that a lot of the juniors are looking to raise capital through royalties and streams.

So again, we have -- if you think about the portfolio chart that Dave showed you, 7 cash flowing assets, 15 in development and then tremendous amount of exposure to early-stage exploration and mid-stage exploration assets, we really don't need to add more optionality into our portfolio. So again, our current focus is on near-term producing or producing assets. If you think about the last 3 transactions we did over the last 18 months, we deployed around $90 million of capital and they were all either cash flowing or near-term cash flowing Cozamin, Borborema and virus. We certainly can't predict what our growth opportunities are going to come up in the future or where they'll come from.

Again, as I mentioned, we're seeing a preponderance of early-stage opportunities. And I think for us, our sweet spot is around $50 million. You think about the sector in very simplistic terms, the math isn't quite accurate, but it's -- I think it's approximate, and it will give you an indication of the point that I want to make here. Triple Flag is roughly 10x the size of us. In turn, Franco-Nevada is roughly 10x the size of triple flag. So for Franco-Nevada to do a transaction that's going to move the needle needs to be 100x bigger than any transaction we will do. Triple flags transaction needs to be roughly 10x larger than any transaction that we would do. Our sweet spot is $50 million. So think about that. Think about that in the context of 10x versus 100x. It's much, much easier for us to really target growth opportunity in the M&A market. Again, once our multiple is there, once the balance sheet is in place and we can go out and deploy capital. So that multiple expansion opportunity for gold royalty through growth through our organic growth profile, again, over 300% over the next 5 years. But also our ability to add assets that are going to move the needle is much greater in a company of our size than relative to many of our larger peers.

I think the other thing is really talking about the uniqueness of our business model. We've got 4 pillars of growth. we provide royalty financing in a very traditional sense. A great example of that was the transaction we did with Aura on the development of their Borborema project. We acquired third-party royalties. We bought a portfolio from Nevada Gold Mines from Barrick. And that gave us the royalty on Granite Creek, among others. We also obviously generate royalties organically. And I'd like to talk a little bit more about that because it's I wouldn't say it's unique in the sense that we're the only one that does it, but we are unique in the sense that our cost base in generating these royalties is nil. We generate these royalties not only at no cost but we actually earn income from the lease payments when we structure these agreements.

Typically, we generate between $2 million and $4 million per annum. At the higher end, that's nearly 50% of our G&A when you think about it. So it's not only 0 cost, but it's revenue accretive to our business model. We've generated -- if you go back to the origin of the companies we acquired, of the 248 royalties, 73 of those 248 royalties were generated organically, which represents about 30% of the portfolio. That's we're the only company in our -- in the public royalty sector that has all 4 pillars of growth in the fourth pillar is obviously corporate M&A. We acquired 3 companies since going public. By my calculation, and I might be a little off and I'm sure some of the analysts in the room will correct me if I get this wrong. But there have been 10 change of control transactions since we went public. 3 of those have involved gold royalty. So consolidation is underway and most certainly will remain in the future a core part of our strategy.

But again, the point I'd like to emphasize we're the only -- we're the only royalty company that has all 4 pillars of growth, and each of them have been very relevant in creating the portfolio of 248 royalties that we have today. I'd like to just mention, obviously, the ability to deploy capital, as I've alluded to, depends very much on a multiple and where we can see accretive transactions. And also looking at the cash and where it's going to come from. Right now, our credit facilities, if you look at the margin and base rate, the cost of capital on our drawn credit is around 8%. And if we're going to do a transaction, our returns at the moment need to be greater than 8% because we don't just want the banks earning a return on the royalties we're going to invest in.

So right now, that gives you a sense of our threshold, our target threshold for returns. But typically, anyway, we look at a double-digit IRR when we're evaluating opportunities. And what I would say with the benefit of hindsight, when we look back at the opportunities at the transactions that we've done, our returns are well north of our initial estimates when we made those investments and for 2 reasons. One, because the assets have expanded either through resource expansion or resource conversion into reserves or -- and like many of our peers because when we made those investments, we always use consensus gold price. Most of our investments were made using a gold price estimate of $1,800 or lower. I don't think I need to explain the rest of the logic to that argument.

I think the last pillar of growth, as I did mention was M&A. And I think, again, we anticipate with at least 21 public companies that there will be significantly more consolidation to come. If we think about the junior royalty and streaming space, we estimate there must be somewhere between $40 million and $70 million of SG&A that could be eliminated and effectively capitalized. You can do the math around what kind of value that might create for shareholders. So certainly something we're very cognizant of. But again, we will be very disciplined and will not do dilutive transactions.

I'd like to talk a little bit about relative valuation. I think this slide really shows that the large companies in our sector trade at significantly higher consensus average price to NAV multiples when compared to the mid caps, which in turn trade at higher multiples than the smaller caps, including Gold Royalty. And why is this? Well, the larger companies generally have portfolios of royalties and streams, some of which are with the most recognizable, world-class mines which attract investor interest. Secondly, companies with the larger market caps naturally have higher trading liquidity, which attracts a broader group of investors including the large generalist funds, which is hard for us to do being a sub-billion dollar company. More mature companies have also had a longer time for low-cost, early-stage royalties and streams to mature and move down that development pipeline, that first slide that Dave showed you, and those opportunities have created tremendous amount of upside and value over time.

And we're still in our infancy in terms of where that comparison could go. We have tremendous amount of option value in those 170-plus royalties in the 2 buckets of exploration and advanced exploration. And I think the last point we'd like to make is really that survivor bias means that looking at companies which have use the market's confidence and the arbitrage opportunity created by having a higher multiple has allowed them to really continue to grow. I think when we sort of take a step back, our corporate mission, which is available for anyone to refer to under our website, if you look at company and about, you'll see our corporate mission is to invest in high-quality, sustainable and responsible mining operations to build a diversified portfolio of precious metals, royalties and streaming interests that will generate superior long-term returns for our shareholders, and I'll stress long-term returns. Corporate M&A could contribute to our achieving this mission. But as I said, it has to be accretive.

We've used corporate M&A to really achieve a step change in our portfolio. Dave alluded to that, the initial [ 18 ] royalties. And the biggest significant change was really through the acquisition of Eli Golden Valley and Abitibi. We certainly can't predict where the participants will be in terms of M&A or the sequence of corporate M&A, but we do expect it to continue. I think what I would say, we will be patient, we will wait for the right opportunity. I have no doubt that once again, we will be able to continue to grow the portfolio through M&A and capture some of that upside through eliminating SG&A.

And with that, I am going to say thank you very much. I see a question.

Last year at this time, we started trading a focus in press. I appreciate all that talk about this plan the multiple valuations. But you went out and did a bond deal off of [ $1.72 ]. When you add the value [indiscernible] you issued [indiscernible] discount market. I mean that trading at such a big discount valuation and you things turn around and you issue shares [indiscernible] the share price for a whole year only in the last couple of months when we risen above the issue price of -- you're not thinking of doing something similar to that. [indiscernible]

Yes, sure. So the question that was asked in the room was roughly this time last year, our share price was roughly trading at the same level and we went out and did the [ Warrens ] transaction, issued equity. If you factor in the discount plus the warrants effectively at $1.45 was the point made by the by the individual in the room. And the question that followed was, and I'll paraphrase shareholders are terrified we're going to do the same thing. How are we going to do that? And the answer is no, we're not going to do that. And I think, again, I'll preface my answer and then I'll hand over to Dave for his thoughts. We've been in the process of building a company and building a portfolio that is going to create value over the long term.

The one thing that was missing in our portfolio was cash flow. And cash flow was paramount. Paramount to us being able to not only cover our cost base, but actually generate free cash flow so that we can really start to become a self-funded growth vehicle. So it was really critical for us to acquire virus from that point of view. And I think the message we're delivering today is we've built that portfolio. We are now in a position where we can rely on harvesting the cash flows that are going to come from that portfolio. We have the privilege and as much as it is my role to grow the company through M&A, we have the privilege of being able to sit on our hands. And as I said, I've used these words several times, and I'll use them again, being patient and disciplined. We did that transaction for a purpose. We felt it was plugging a need in terms of our cash flow growth. We've done it, and we're very happy with the asset. It's performing well. It's got some ramp up to go -- it's got a lot of expansion potential. Our internal NAV is much higher than what we paid for it. It is going to create a lot of value for our shareholders over time.

The only thing I'd add is it's not expansion potential, it's expansion that's actually underway and completely funded. So Adriatic went to market earlier this year, raised AUD 70 million of equity, not only fully finance that expansion, which is about $25 million, and it's going to be a 60% expansion in production by 2027. But it funded the working capital needs as they're going through the commissioning process. So they're well capitalized. And the market recognizes the intrinsic value of that asset and Dundee Precious Metal clearly does. It looks like they're going to take over the company next week. And we welcome that type of strong, well-capitalized operator with a presence already in the area that can deliver significant synergies to that asset. All that capital has been raised. All the capital Dundee is going to devote to this asset as they ultimately acquire it. It's come at 0 cost to us. So that optionality that we recognized when we bought that asset, we didn't pay for the optionality is actually being crystallized right now. So there's a tremendous amount of intrinsic value being realized.

But Brad, I'll tell you what we went through last year when we did that deal was extremely humbling because what the market did and the arithmetic is irrefutable as they added the shares we issued on that bought deal into our denominator and added no value in the numerator for the asset. So we did an ineffective job of communicating the quality and the intrinsic value of that asset, and we've got a long way to remedy that situation over the last year. namely by bringing Jackie on who's done a very effective and systematic job of telling the story to institutional investors who knew nothing about the company or the intrinsic value of the underlying assets we have in that. That's why we've seen a steady recovery in our share price since Jackie joined us. So she's done a great job in that regard.

And we recognize we couldn't do Investor Relations off the side of our desk anymore. We couldn't just build the business and hope the market appreciated the intrinsic value of our assets. we had to be much more disciplined and systematic about the way we do it. And the proof in terms of sitting in our hands, 13 months, we haven't done any significant transactions because we -- again, as I said earlier on, and John reiterated, we simply have not had the currency to participate. Even though we've looked at many things, we simply been priced out of the market. And that's fine. We'll just move on and hope we get the currency to be able to transact going forward.

And Dave, I'd just add when we look at our portfolio, -- we don't see the same holes or gaps that we saw 12, 18 months ago. We've filled those gaps and now we have a portfolio that has peer-leading growth. It's painful and it's starting to deliver. We're going to be free cash flow positive in 2025 with the growth profile. You saw our guidance for 5 years out. You take that guidance, you take the midpoint of that guidance, you take the current spot price. We'll be somewhere around $80 million, $90 million of revenue, less our $7 million to $8 million of cost. That's free cash flow that is going to be used, a, to improve the balance sheet, pay down debt; b, consider shareholder distributions. And only after that, will we really think about redeploying that capital to continue to grow the company.

So I should add that -- not on this point, but for those washing the session online, you can ask a question in the text box or e-mail [email protected] or [email protected]. Brian?

Can I just follow up on that because I think it's an interest point. So when you did that deal, face your view is the market pays a higher NAV for cash flow generating asset. And that's kind of what if I understand you're trying to do. And I think that is important because all these numbers are all numbers. I do agree with that? And if so, what sort of differential in multiple? Or how do you think about evaluating that new to your IRR? Because obviously, I would argue the market is paying more historically for cash flow NAV versus long-dated.

No, you're absolutely right. So the question was -- and please, Brian, correct me if I get this wrong. Is the market paying a higher valuation fro cash flowing assets? And is that how we look at the world. Was that close enough. The answer to that question is, yes, we certainly do believe the market values cash flowing assets at a higher multiple. The industry, for what it's worth, typically uses a 5% discount rate. And what we do then is adjust the multiple of NAV depending on the stage of the asset. So earlier stage assets will be a lower multiple of NAV versus cash flow and cash flowing assets. Sometimes you see them going at a premium to NAV. If I think about some recent examples. There was a sale of an asset, a royalty on Cote Lake, which we believe was transacted at a premium to NAV.

Again, Cote Lake is operating -- and it was a strategic imperative for the buyer of that asset to add gold exposure to mitigate a diversification that had taken place and also to mitigate some geopolitical risk that had taken place in that portfolio. So you'll see premiums will range from roughly 1x to well north of that, depending on the strategic imperative of the buyer. But yes, typically, we see cash flowing assets will attract a premium. And again, for our purposes, we did not use a 5% discount rate for that particular asset. -- because it was a copper stream, we used an 8% discount rate. And again, we only paid for the reserves and for the current state of production. We did not pay for the expansion up to 1.1 million tonnes, and there is a further expansion that will come at that asset up to 1.3 million tonnes. Our calculation was based on 800,000 tonnes of production for that asset. So a tremendous amount of upside, and that's the very reason why internally in our models today. The NAV we have for that asset is significantly greater than what we paid. Does that answer your question?

[indiscernible] you mentioned earlier the bigger players are getting better [indiscernible] high as well. You would think that would lead to discount for especially large-scale assets being quite low. Are you seeing that in the market and where you see developing this year and maybe next year?

Well, as I said, I mean, I think just to repeat the question, larger cap companies are trading at significantly higher multiples -- that implies that discount rates could be significantly lower. And what are we seeing in the market in terms of discount rates. I think the basic starting point of any valuation exercise is to use a 5% discount rate. However, that really doesn't reflect how we think about value internally. When we run our math and our models we look at an internal rate of return. Our target IRR for any asset that we buy has to be double digit. So notwithstanding the fact that large cap companies that are trading at between 2 and 3x NAV can afford to buy an asset at net NAV with a 5% discount rate and still have an accretive transaction. That's for us, in terms of how we look at the world, irrelevant because it has to be a transaction that's going to be accretive to our existing portfolio. So double-digit IRRs is really how we look at our business and our opportunity set.

Any other questions in the room? Did you want to -- was there any questions online that you wanted to cover. So 5-minute bio break retailer coffees at home for those online, and we'll be back at 10 a.m. Eastern. Thank you.

[Break]

Everyone, we're going to kick off the second part of the presentation. Okay. So moving on to finance. What -- and for those who don't know me, it's Andrew Gubbels, I'm the CFO of the company. What I want to go through today is talk a little bit about revenue, which you are very much aware of the situation, but we'll look at revenue and importantly, how we benchmark or compare to some of our peers in that regard. I'll touch on our operating costs and again, look at some benchmarking for operating costs and then touch on the balance sheet and the financing as well as liquidity. So without further ado, just looking at first off with -- starting with historic revenue.

So Gold Royalty entered 2023 with the quality portfolio, but mostly development exploration stage assets, as everyone is aware, you can see from this graph at the start of 2023, we were in a period where we were still effectively using cash to supplement the cash flow from our operations to fund our business. We understood that was an unsustainable situation that had to change. So to move forward, we took a two-pronged approach. Two things we could do, first off, was to reduce costs. operating costs; and second, to accelerate the near-term cash flows, and we did that through strategic acquisitions that John and Dave mentioned earlier. So in August 2023, we completed the acquisition of the royalty at Capstone's Cosman mine. In December of that year, we financed or minerals Borborema project and received immediate preproduction payments and loan interest from that transaction.

And at the same time throughout the course of that year. We went through a process of reducing our operating costs, which really came about, for the most part, the mergers with Eli, Golden Valley Abitibi in 2021, 2022. We went through a period of eliminating redundancies creating more efficiencies in our operating costs, simplifying the corporate structure. The amount of administrative time and cost that's eliminated and reduced through -- some of the behind the scenes, corporate restructuring was important and also introducing a disciplined cost management and budgeting protocol, which is important in how we plan our business going forward. As a result of 2023 with Cozamin and Borborema, we did begin to report positive operating cash flow for the first time in 2024, which was a big achievement for us.

We are on our way to being self-sufficient as it were with respect to cash flow generation. In 2024, as was already explained as well, we acquired in June 2024, the Veris copper stream. Now that was an acquisition that really resulted in additional cash flows in addition to the Cote project, which is ramping up, that put us in a position to report positive free cash flow for the first time, which we will do in 2025. In fact, we did in the first quarter of 2025. So these important, what I would call, foundation building steps really over the last 2 years, transitioned us to becoming a sustainable free cash flow generating company, which again was critical to be able to -- for us to not be burning cash just to keep the lights on with the business. So moving forward, looking at revenues in the future.

Now I'll have to be a bit careful here because -- and we've highlighted this in the footnotes, what we put out to the market as guidance for 2025. And the 2025 revenue number here is simply taking the midpoint of our gold equivalent ounces and using a broker consensus price deck to come up with what that we see in that bar for revenue. Going forward, the bars into the future is, again, simply taking because we do have the benefit of being covered by 6 brokers taking the average of our brokers' forecast for gold equivalent ounces and applying the broker consensus price deck for commodity prices. So what you see here is a very promising picture. Again, we worked hard to get our operating costs to a level where we felt was sustainable. And we have targeted a range of about $7 million to $8 million per year in that regard. And with that, what you'll see is expanding operating cash flow and free cash flow margins.

Now that's important because that's what you see with our larger intermediate and senior peers. That's going to put us on a trajectory to become a company that can actually generate cash and use that cash for growing the portfolio rather than relying on external funding, which, of course, we will consider. But it's really that first step to becoming self-sufficient and generating cash. And also having the benefit of those capital allocation decisions and in the future, considering where that capital goes, if it's returns of capital to shareholders, of course, paying down debt in the near term. but it is important to reflect and show that the future does look quite strong with respect to free cash flow generation and margin improvement in the future.

Now taking a look at how that revenue growth benchmarks against our peers, what we've done here is -- and again, I think this graph really speaks for itself here. Gold royalty does offer the most or the highest top line growth versus its peers, and this benchmarks the junior peer set in particular. If I did plot the seniors and intermediates on here, of course, there's going to be more revenue, but the growth rate would show gold royalty at the top. Now again, because we only put guidance out for 2025. The 2026 and 2027 numbers are simply the median of broker estimates for revenue in each of those years. So because we have access to platforms like [ FactSet ], for instance, we can take the information from there and plot on this graph. So we're not manipulating these numbers in any way. It's just what the market is projected for where our peers will compare.

So what you'll see here also is gold royalty on a trajectory to generate cash revenue that approaches $50 million a year by 2027. And when you move forward to 2029, since we did put out guidance there is on this graph and you take the midpoint of that, range, call it, 25,000 ounces or so and use current gold prices, you're looking at revenue approaching $100 million. Of course, you've got a broker census deck, which may be lower than current prices, but that just speaks to how this company will transform in the coming years with our current portfolio. And Jack, you will talk a little bit more about the assets as well. Just moving on to operating costs. So firstly, I think it's important to look at the whole picture here. I could say G&A, but what you'll see here is operating costs. G&A inclusive of project evaluation expenses, and that could be corporate development costs as well.

And I say that because when you're benchmarking against peers, a number of our peers will report a G&A line and a business development or project evaluation line. It's a matter of choice, not a reporting preference. We, as a company, almost all of our costs are in the G&A line. If we wanted to split it up, we could allocate certain business development expenses, salaries, et cetera, into that project evaluation line, but we haven't -- but to look at a true comparison versus our peers, I think you have to look at G&A and project evaluation together. Now like all royalty companies, our biggest asset outside of the assets we hold, assets would be our employees and employee costs do make up a component of this G&A I'm proud of the team that we have at Gold Royalty. We've built a team that is well suited for the stage of this company's development, but also well suited for where it will go and where it will be. I don't foresee a need to change or augment this team going forward. We are able to keep and manage external cost, project valuation costs because we do have enhanced capabilities in technical resources. We've got corporate development resources and we have a strong finance team and IR team.

Now we do believe that, that is important. We believe that disciplined but active management of our portfolio is important rather than just being caretakers of a portfolio. In the event the situation comes up and needs to be evaluated, we don't want to be going out to consultants and paying high prices for consulting work when we do have that capability in-house. So I think we do have a very solid team. And as we grow, I don't see the need really to augment the size of the team and the costs associated with that. Now there are a few other unique factors that impact our operating costs as well. And these are, what I would call, benefits to us as well. So one of it is the fact that we're the only primary U.S. listed company on this list. The other peer that's only U.S. primary listed is Royal Gold.

Now when you have a primary listing in the U.S., it comes with additional costs associated. We've got additional U.S. legal costs. We have Sokaliant requirements. We have, just in general, being listed in only the U.S., our D&O insurance tends to be higher than some of our Canadian listed peers. Those are costs that are unavoidable. That being said, and I'll talk to this a little bit later, we do enjoy the benefit of being U.S. listed, in particular, very strong liquidity, strong U.S. retail presence. Those are elements that, again, justify the cost in my mind. The other embedded costs we have that, again, generates returns well in excess of the G&A cost is associated with our Nevada office and Nevada business.

Now we have an employee base in Nevada, Jerry Bofman, who many of you know, that business is able to generate between $2 million and $4 million a year. It has in the past, and we expect it to be a continuous revenue generating generator. We don't expect to see meaningful cost changes additions there, but it comes with additional overhead. We do have an office there. We do have an employee there. Some of our peers may have a single office. Again, we do have that as a benefit. And it's a very strong part of our business that contributes going forward. So when you put it all together and you benchmark against our peer set, Gold royalty does compare with a number of the peers on here. It's roughly in line with the junior average. Again, if you normalize for Nevada business and the U.S. listing costs, we would be below that average.

So generally speaking, I do have some comfort in where we compare from a cost perspective. And when you look at the seniors in particular the intermediates in particular, there is a meaningful step change in their cost profile versus ours. So that's just to compare where we sit versus our peers out there. Now turning to the balance sheet, in particular, just speaking to our financing decisions in the past and how we see our balance sheet moving forward. So how have we deployed our capital to date. As previously mentioned, roughly 24 months ago, we began that process of optimizing our operating costs but also looking to add those quality cash-flowing assets. So Capstone in August of '23 Borborema in December '23 and Veris and August of '24, it increased the number of cash flow and royalties, which was essential. But these, in particular, were transformational additions to our portfolio when it comes to benefiting gold royalty from a liquidity and cash flow perspective.

In particular, when we take a look at what our last 12 months revenue was going into these acquisitions, and we take a look at what the average life of mine revenue we could get from these assets. It equated to between 20% and 75% of that revenue before looking at the acquisition. So these were assets that were generating revenue straightaway and could benefit us to close that gap that we had with respect to our operating costs versus where our -- where we needed our revenue to be -- so very, very additive in that sense and in critical really to close that gap. And really put us in a position to have positive operating cash flow at the end of -- going into -- in 2024 and positive free cash flow in 2025. And -- so in terms of the financing decisions, it was really governed by considering a few things, of course, cost of capital.

John mentioned where our current revolver cost of capital is actually SOFR has come down a little bit. It's closer to 7.5% at the moment. We take a look at, of course, our market and financial position going into making those decisions. the prevailing market conditions and the availability of certain sources of capital at the time of each transaction. Nacozamin required $7.5 million of of cash with acquisition. We had cash on hand and used our credit line. It was available, quick execution and low cost. In the end of December, we were in a position where our share price declined a little bit through the year. We want to avoid equity dilution. We did have the opportunity to add some strategic investors to the mix through the convertible debentures in [indiscernible] Capital and Tourist funds. We did end up negotiating a cooperation agreement with Taurus at the conclusion of that. But it was also an unsecured covenant light capital that came into the company that could sit alongside our current credit line.

When it came to Verus again in June 2024, we did use some of the additional available capacity in the RCF because we had added [indiscernible] and Kosman before, we're able to increase the size of that facility. There was a window in the equity markets. I do hear the questions that were asked. And the answers given on that equity. I think one of the realities also is we were at a point where we needed to add more institutional investors to the mix. We didn't have a lot of capital available at time. We were able to bring some institutions in with that transaction, and Jack has done a great job at adding more. And we did see this as a material transaction that added considerable revenue in the near term. So we did see that as something that should garner more credit, and we are starting to see our share price improve and over the market see more value in that Veris asset moving forward.

Just turning to the next page, just more of a table summarizing our capital structure at the moment. So the numbers here are a little bit a little bit stale, I think, given that we've had an uptick in our share price from a market cap perspective. I think now we're around $370 million market cap and enterprise value of around [ $440 million ]. I think what I'll say here and this summarizes some of the points I've already mentioned, we do enjoy the benefit of very supportive lenders led by BMO and National Bank. Our banks understand our vision and see the future cash flow potential of our assets, which is really reflective of the terms provided -- the revolver has a 3-year maturity and a SOFR plus 300 margin. That's very much in line with the junior royalty and streaming peers. So as previously mentioned, when it comes to capital allocation, as a revolver, that will be the first debt that we will start to pay down through the course of the year. But again, we do enjoy the support from our lenders.

Second, the convertible debentures, the $400 million of converts, we brought Queen Store Capital in Torus on board. There are benefits to those relationships. They bring advice when it comes to assets that are currently in the portfolio that they may have interest in or familiarity with they provide a potential source of ideas and opportunities when it comes to partnering in the future and potential support of additional capital. So we do enjoy that benefit on a regular basis. Those debentures have a 5-year maturity in December 2028. There's an early redemption option in December 2026. The conversion price is $1.90 in 2028. They have an interest rate of 10%, 7% cash and 3% PIK. Again, that was helpful to have the lower cash interest to help with our liquidity in the near term. But again, it is -- it was very helpful financing at the time we did our acquisition, and we do see benefits of that relationship going forward. So the last slide I'll touch on is on trading liquidity. It's sort of tangential to the capital structure chart there.

Again, one of the big benefits that we offer as well as a company is almost 2 million shares traded and $2.8 million of value traded per day. on the New York Stock Exchange. What that means is that investors can come in and out of our shares without more meaningful sizes and positions without having a long tenure of hold. When you look at the days to turn our float, which is the graph on the page here, 81 days is only second to sand storm in the whole royalty and streaming universe. So it's one of the benefits that we offer that some of our peers don't offer in terms of liquidity for investors.

We also -- a number of you in the room enjoy the coverage of 6 research analysts, which means that there's numbers out there in the market and traders and salespeople that have flow of our name coming through the desk which is also helpful for our liquidity going forward. So with that, I'll stop here and pass on to Jacky to talk through some of the assets, and we'll do Q&A after that, right. Okay.

So I'm going to talk about a few of the assets. Obviously, we've got some of the guest speakers coming up in the last hour of the Capital Markets Day. So we're not going to touch on those assets to duplicate. But I wanted to talk about a few of the assets where I think it would be helpful for a few, some modeling and guidance points. So as David mentioned previously, we published the 2025 and 2029 guidance, back in March with our Q4 results. Just to give you an idea of the outlook for the year ahead and more importantly, our confidence in the longer-term growth potential for the company. And in this session, I want to dig a little bit further into some of the growth projects, how we're thinking about the contributions to our GEO production. I'm going to start with Granite Creek, but we're also going to talk about REN, Bulbarima, Cote, Tunable West and Verus.

So Granite Creek operated by IAD 80 Gold. It's located in Nevada. We have a 10% net profit interest or NPI royalty on the full property that's uncapped with no buyback. We classified Granite Creek as a development asset in our pipeline, even though it's already in production because the royalty hasn't paid us yet. It's common with NPI royalties, such as the Granite Creek that the operator will have an opportunity to recover the capital spent before it pays the royalty, and that's where we are today. As a guideline, you could see IAD Gold's most recent 10-K filing that the book value of Granite Creek was about $93.5 million as at December 31, 2024, and the PEA filed in March indicates an additional USD 105 million to be spent at the underground and USD 294 million to be spent at the open pit in additional project capital costs through the life of mine. The underground mine is expected to reach steady-state production in H2 2025 and would be producing against this balance until it's fully recovered and when we start to get paid, which we assume will be several years away at the earliest.

Most of the analysts covering us assume first revenue to us from Granite Creek in 2028, and we think that's probably a little bit early as we would want to expect earlier than we would want to expect those revenues. We don't include -- I'll just mention, we don't include significant revenue from Granite Creek in our 2029 outlook. So in the meantime, though, we do want to talk about a few of the catalysts and project events that are coming up for Granite Creek. IAD is expected to deliver exciting catalysts, especially at the underground which the company has called its highest priority asset and project. The company raised capital last month was an upsized it bought deal in private placement for gross proceeds of over $184 million. We expect these proceeds will fund exploration and development at Granite Creek underground in Q4 2025 and ramp up to its full steady-state production level of roughly 60,000 ounces of gold production per year that will be achieved later this year.

As 2025 is a ramp-up year, IAD has guided to production of 20,000 to 30,000 gold production ounces of gold production this year. Other important catalysts at Granite Creek include the permitting, construction and production at Granite Creek open pit, which expects to achieve by 2029. On REN, REN is the underground extension of the Goldstrike mine, which is part of the Carlin complex at Nevada Gold Mines in Nevada. It's owned by Barrick and Newmont and it's operated by Barrick. We have a 1.5% net smelter return or NSR and a 3.5% NPI royalty on the full property, and that's also uncapped and with no buyback. Rent is located north of the Goldstrike underground Malici and Bansi deposits. The property currently is delineated measured and indicated resources of 60,000 ounces which is 0.1 million tonnes at 11 grams per tonne and inferred resources of 1.6 million ounces, which is 7.4 million tonnes at 6.6 grams per tonne. But the property has significant potential for future expansion, especially after the development of 2 additional exploration drilling platforms are completed. Until recently, we've had very little information about the development plans for RIN.

But Barrick has started talking about the asset in more detail, beginning with its Q4 2024 MD&A and also in its Q1 2025 MD&A. Both of those are available under Barrick's website. Barrick has guided to full production of 140,000 ounces of gold per year on a 100% basis and for this run rate to be achieved sometime in 2027. We expect that our 1.5% NSR will be paid relatively shortly after production starts. However, similar to the Granite Creek NPI, we know that the NPI at REN will not be paid until Nevada Gold Mines recovers its initial capital. As of March 31, 2025, the project's total estimated cost was USD 410 million to USD 470 million and $95 million of that budget had already been spent, and that's all on a 100% basis. The full potential of REN, including the NPI, isn't reflected on our 2029 outlook. We've only included the NSR portion in this disclosure. And analysts should be careful they are not overestimating the contribution from REN in the medium term, although we continue to be very optimistic about the potential for contributions from REN in the long term as the NPI comes into effect. Further upside could also come from exploration.

REN currently has just under 2 million ounces in measured indicated in inferred resources, but this could grow with future drilling, especially drilling from underground when the planned exploration drips are completed. A higher resource could extend REN's life of mine and could support increased near-term production through the existing Goldstrike and Carlin complex infrastructure. So those are 2 assets we think that you have to be a little bit more cautious on. But the other ones that we want to talk about, we think, are very optimistic, and we think the market is definitely underestimating.

So we'll start with Bobarema. Bobarem, operated by Aura Minerals is located in the Rio Grande do Norte state in Brazil. We have a 2% NSR in the entire property and the option to convert a portion of our Gold link convertible loan into an additional 0.5% NSR. The royalty steps down to a 0.5% NSR after 725,000 ounces of payable gold are produced. The remaining 0.5% NSR will be subject to a after the earlier of 2.25 million ounces of gold payable are produced or the year 2050. So there's a lot of numbers. So to summarize, we have a 2% NSR until 2029. That increases to 2.5% NSR in 2029 when the Goldlink convertible loan matures and we exercised that option. And then it decreases by 1.5%, so net down to 1% on delivery of 725,000 ounces of gold, which we think will happen sometime after our 2029 outlook.

The Gold link loan pays us 440,000 ounces of gold per year through 2029. When the loan matures in 2029, we have the option to take repayment of the USD 10 million or we have the option to convert half of our Gold link convertible loan into an additional 0.5% NSR as I previously mentioned which would then give us a 5% -- sorry, a USD 5 million lump sum repayment on loan maturity. Borborema has about 812,000 ounces gold and probable reserves and has the potential to convert an additional roughly 2 million ounces of gold into reserves when it receives permits to relocate a highway that is currently bisecting the ore body or expects to receive these permits in Q3 2025. Highway relocation would take a couple of years to be completed in about 2027, concurrent to the highway relocation project, or intends to expand the operation from the current 2 million tonnes per year, and this expansion would be completed around 2027 as well. While Aura hasn't given formal guidance around the scale of a potential Barbarin expansion, it mentioned in its December 2024 Aura Day that the company initially considered both a 2 million tonne per year or 4 million tonne per year production scenarios. It chose to start with the smaller project, but it would consider upsides now that the asset has started operating. So I think that 4 million tonne per year run rate would be a reasonable expectation for once the expansion is finished.

On to Cote. Cote is owned by IMGOLD 70%, and Sumitomo Metals Mining 30%, and it's operated by IMGOLD is located in Ontario, Canada, -- we have a 0.75% NSR on Zones 5 and 7, which is the southern portion of the Cote pit. Cote reported first gold pour on March 31, 2024, and commercial production August 2, 2024. And -- it is ramping up to full production run rate now. Also to note, Royal Gold Matala have royalties on different zones within the Cote and Goslin property. And just recently, on May 27 of this year, Franco-Nevada acquired an existing 7.5% gross margin royalty on nearly all of the reserves and resources for over USD 1 billion with an option for Sumitomo Metal Mining to buy down up to 50% of that royalty.

Our royalty is on the southern portion of the pit, which represents some of the pit's highest-grade resources from the mines the mine life to date or from our Zone 5 has represented about 40% of the total ore mined by INGOLDin each period. However, IMGOLD as noted, including most recently in its Q1 2025 MD&A that it will shift its priority for mining and stockpiling activities to a more efficient mine plan, which is intended to reduce rehandling of stockpiled ore optimized for future expansions. With this shift towards a more efficient mine plan, it's logical in our view, to assume that mining operations could prioritize our higher-grade Zone 5 material, increasing our portion of ore mined above that 40% level for the next few years. As a rough approximation in our guidance and our estimates, we assume that our Zone 5 material is mined over the next 5 or 6 years of production to about 2030. And at that so higher than 40% level for the next few years.

Looking forward, IMGOLD could expand Cote to 40,000 or 50,000 tonnes per day from the current 36,000 tonnes per day mill throughput rate. This would better align with the current mining rate, which is about 50,000 tonnes per day, and expansion would be logical ahead of potentially combining the Kotain Goslin pits into a future super pit. Even though we don't have any royalty coverage on gasoline, we do have coverage on Zone 7, which is currently outside of the mine plan, but could be incorporated into future super pit design. The last asset I want to highlight is the Veris mine operated by Adriatic Metals in Base and Herzegovina. We have a stream on 100% of the copper at Veris and is common with streams that we pay the operator 30% of spot copper price on delivery of our copper.

So modeling reminder to you all, our stream pays us in 25-tonne copper metal increments referred to as warrants which means that our production at [ Veris ] doesn't translate directly to the stream revenue to us. Our revenue will be more lumpy than Adriatic reported sales. Veris has been ramping up to full production since first concentrate was produced February 27, 2024. The operators reported significant progress in April with key metrics hitting monthly records. That includes tons milled, silver equivalent produced and meters of mine development. Adriatic continues to expect commercial production will be achieved in Q2 2025, so sometime over the next couple of weeks. The company intends to ramp up to its full 800,000 tonnes per year run rate during H2 2025. It plans to expand to 1 million tonnes per year run rate in 2026 with minimal additional cost and to 1.3 million tonnes per year run rate in 2027 for USD 25 million cost, a cost which has been fully funded by the AUD 80 million or USD 50 million institutional placement which was completed in February of this year.

Adriatic does not provide guidance on copper production or grades, but if we assume that grades and recoveries are homogeneous, our stream revenue should increase in proportion with the throughput expansions and our 2029 outlook does include expected contribution from those projects. One last comment on various before we move to Q&A. The media, Adriatic and Dundee Precious metals have each disclosed that Dundee Precious Metals is in discussions regarding a possible offer for Adriatic Metals. Dave mentioned this earlier in the session as well. per U.K. law, Dundee has until June 17 to make a formal bid for Adriatic, but whatever the outcome of this or the future acquisition, our stream will persist at Veris, and we would not expect any impact to our revenues.

So with that, we can take questions for Andrew for myself and for the rest of the team as well.

[indiscernible] Can you talk about any potential debt reduction targets? And then the second part of that, just the convertibles, they are obviously in friendly hands, but also in the money. So how do you view that in terms of your capital structure there?

Yes. So in terms of -- I think people got the question because we had the microphone. In terms of debt reduction targets, we don't have a fixed target at the moment. The reality is that we've just become free cash flow positive. We're not generating a whole lot of free cash flow until the coming years. If you sort of extrapolate from the first quarter, again, fairly consistent operating costs the calculation of actual cash interest is fairly easy to do. If you take $27.3 million outstanding on the RCF at 7.5% interest, the 7% of cash pay on the $40 million of debentures and add it to the G&A, we'll probably generate given the 2025 guidance for geos. Somewhere around $2.5 million or so of free cash flow. So that excess free cash flow through this year which will probably come and be added to our cash balance through the back half of the year, we could use for debt reduction. Now that ignores any sort of nonoperating cash inflows, outflows. I don't suspect there would be a whole lot of that. But that's the only other factor that's not -- that could potentially change that number. And then the second question you had. Just with respect to -- sorry, maybe you can repeat the second question quickly. That was converts, right, sorry, yes, with the converts.

Yes, the converts are in the money at the moment. With respect to the converts as part of the capital structure. Our convert holders do you have an indicated a desire to convert their debentures into shares. It is likely to their economic benefit to hold on to it until closer to the expiry date. We do have that option to call or to repay the convertibles at the end of next year, December 2026. At that point in time, based on sort of our calculations and looking at where we could be from a revenue standpoint, with cash flow generated and also availability at that time of the accordion feature on our RCF, we could be in a position to recapitalize that potentially with our revolver at the end of 2026. That being said, our debenture holders will have the option to convert at that time as well. So if they do convert into shares, we'll obviously not need the cash to repay the debentures. So -- the way we look at it is if we do have the ability to refinance that and to have it as part of a revolver, we can pay back quicker over time, we'll do that. Other questions?

Yes. Could you just tell us who your largest shareholders are and what -- I know the Nevada Gold Mines steel owns considerable what their intentions are with that? Have they expressed any outlook?

The -- so the largest shareholders would be Gold Mining Inc. and the Nevada Gold Mines. Both those shareholders are supportive, have expressed any intention to decrease their stake or to sell it to the company. In terms of number.

It's a little over 5%. Brad, I don't remember the exact number, but Kevin Thompson and I have a long-standing relationship with their Head of Strategy. So we're in regular communication. And I'm still the co-Chairman of Gold Mining. So we feel quite secure about that share position as well.

I think -- so next up, we'll have our guest speakers. We'll take another 5- or 10-minute break, and maybe get started a little bit ahead of just in case we go over with the last session, but maybe take another 5-minute break and then we'll see you guys see you back here in a bit. Thank you.

[Break]

Okay. Welcome back from the break. I'm Alistair Still, I'm the Chairman of U.S. Gold Mining Inc. One of the newest companies here, just 2 years old, this company was launched -- on the NASDAQ from the portfolio holdings of Gold Mining Inc. and the royalty on the Wister project, which I'll be updating today was one of the founding royalties of Gold royalty when the company was found just over 4 years ago. And just as a quick update as a new company on NASDAQ also interesting and pleased to present that U.S. Gold Mining was recognized as being included in the Russell 3000 this coming year for reconstitution Day. So the project itself is 1 of the largest gold copper projects in the U.S., not owned by a major right now. It's in the state of Alaska. Excited about the development prospects here. Key in Alaska is that it's on 100% state land, which is critical, and we've seen a lot of support, especially at the federal level recently.

President Trump has had executive orders about unleashing the economic potential of Alaska, which is great news. That's combined with very strong support at a local and state level. So we think this is a great opportunity and timing window to advance the asset. We have just recently announced the start of a PEA on the project. [ Osenco ] has been commissioned for that. That work is underway. That will be released later this year. It's a large regional package. And I also like to say it's the largest undeveloped project closest to anchorage. So Alaska is a huge date, and we're just over 100 miles away from existing infrastructure, including a port that's ready for our use. So that port and actually what the state is calling the roads to resources program was one of the catalysts why we launched this project and this company actually. Being able to take a concentrate from a gold and copper porphyry system and get it to port is critical, and the state has actually launched a road to resources program. There's already invested money on feasibility studies, alignments for that road. They've announced plans in the 2025 budget to start construction of it. That's a huge event for our company. We've heard a lot about roads and access in Alaska.

The fact that the state is supportive here. It's being built entirely on state and actually municipality, the borough of Metso where the port is located. Those are all key factors as well that should be able to see it get through to development time lines. And the time lines for the road construction. While we're at the exploration phase, the road is nice. It's not critical for us now. This is really for the future development of the project. that really is a key catalyst for us. The team itself, we've built this team up from scratch and specifically I brought in a former colleague of mine from Newmont and Goldcorp Tim Smith, who has lots of experience in North. He led the team at Camana made the coffee deposit discovery. So a well-experienced expirations we've put on our Board including Alaskan resident and VP for Shell for a number of years. Laura Smith. We have local expertise. Ross Sherlock, who was an exploration manager for Kinross for a number of years, know Alaska well. Lisa Wade was environmental VP for Goldcorp with lots of mine building and operating experience, and we have technical and financial experience on the board as well.

So we've built this company up, built a board up around it specifically to develop the asset. In terms of a quick peek at the capital structure of the company. This is about as simple as it gets. There's 12.5 million shares issued in outstanding. That's it. Parent company gold mining Inc. owns about 10 million of those. So very tightly held structure, clean and it's simple and trading currently at about just under $10 per share level. The resource itself, this is the exciting part of the project. We've been in -- had 2 seasons of drilling on the project. We have significantly expanded the resource and we more than doubled the indicated portion of it. So there's a good conversion of inferred to indicate it. This is the global resource we have illustrated here. You can see in the indicated category, well over 6 million ounces gold equivalent. And the deferred another 4 million ounces. What we would emphasize here though is that within that resource, we have a higher-grade core that comes right to surface. I can illustrate that. with the assistance of Verifi in a few slides. And I would point out Gold Royalty owns a 1% NSR royalty on the property. And there's a further 0.75% NSR that can be purchased from a third-party owner that owns that now. So within that resource itself, the key for us and what we're focusing in on the PEA is the higher-grade core as a development target. We just showed you the total resource combined.

One of the challenges we have to address the challenges on projects is it's a porphyry gold rich porphyry copper system. Those systems are large. They're typically bulk. They can be lower grade, and that was always one of the challenges the deposit, what is the grade. But the key for us was that there is a higher grade core you can see illustrated on the components of the resource here. The higher grade core holds together such that if you elevate the cutoff grade on the deposit, the combined gold equivalent grade jumps up to almost 1 gram per tonne for about 70% of the total resource. So it's not a spot of dog effect. Sometimes, if you raise up the cutoff grade, you see patchy higher-grade components. This is a very solid, consistent core, which is key and one of the reasons why we're targeting that in the PEA study. A simple cross-section to help illustrate that. You can see in the cross section on the left, the high-grade core comes right to service and is plunging to depth. And in fact, the drilling we've just done over the last couple of years, we've shown the consistent nature of that. We've drilled 600-meter deep holes and solid 1 gram per tonne material down the guts of the high-grade system. The resource itself because of that high grade coming to surface, we think it lends itself very well to an open pit mining and one of the key attributes here which will come through in the PEA is the very low strip ratio.

And we've done a series of phases in the resource calculation such that in Phase I, the first phase of mining is where you get your initial payback. The grade is north of 1 gram per tonne gold equivalent and the strip ratio is almost 0. 0.0, very low. And all the way down even through to Phase III, we've got about 4 million ounces in the mine plan at that point and the cumulative strip ratio is still well under 1:1. So strip ratio is certainly working in our favor here, higher grades early in the mine plan. These are important factors when we run through the PEA study. So with the help of [ Verifi ], I can give you a quick virtual tour of the property for a few minutes. There's our location relative to anchorage. You can see we're only 100 miles away. We can zoom in to look at the layout for the road. And a couple of things to point out. So obviously, the population center of Alaska here in Anchorage. There's an existing port here at Port Mackenzie. This is a picture of the port here. This was built by the municipality of the borough a number of years ago as an economic development project.

And quite simply, we think they now have the mentality build it and they will come. They built a port, they didn't have a lot of access points to get to it. So this designed by the state here. This will be the next line here in purple. This is the root for the road. It actually design goes right to our air strip. We couldn't have designed it better ourselves -- it's not just for our project though. There's a number of mining projects in the district. It's accessing, which is very important because it lets our teams stay focused on developing our project. The state wants to focus on the road, and that's their activity. That's a complete bonus to us, let's just stay focused on growing our resource and showing the strong economics of it.

The project itself, we're going to zoom in and take a quick virtual tour. There's over 50,000 acres here of state and mining land. So it's very large-scale property. And the first thing that jumps out is, of course, we have 3 known mineralized porphyries that make up the resource. There's 2 of them here, Whistler and Raintree. We've shown in the red dots. But what's important here, we have a whole series of targets surrounding the deposits, which are largely untested. We call this our porphyry cluster. And in fact, the Whistler Orbit is the term we use for it. And as a whole, series of more than 20 porphyry-type centers through geochemistry through geophysics, which are on our target list to evaluate in the coming years. As we look at the deposit itself and the topography, it's actually a good terrain here, very low elevation. We're a total height on the project is about 800 meters. So we're not dealing with high mountains.

We're not dealing with glaciers. It's quite a modest elevation and relief. This is actually a bit of a virtual tour. You can scan through the property here, help of some drone imagery, we can see it's very immunable. And in fact, the Rusty brown material in the foreground of this image as the deposit coming right to surface, where it was seen. And an interesting story. And despite some confusion with the Whistler name, of course, nothing to do with the ski resort, several thousand miles away. The deposit was named in the day when the geologists were on their field mapping. They came across this busy out crop, one of the geologists got very excited. He was whistling and hooting, hollering trying to attract the attention of the rest of his crew. That's where apparently the name whistler came from. Whether that's folk lore or not, I can't determine, but that's where the name stuck from anyway.

We have an existing camp and there from camp. We have road access up to the drill pads. So it's not heavy supported. It's quite manageable from a 50-person cap we have established already. The resource itself is well defined, and we can see that here with our drill holes total historic drilling on the property and modern drilling, there's about 70,000 meters. So good confidence in the resource, which is important. These are the resources that Whistler on the left and range on the right, showing the drill holes showing the good confidence in it. The gold and copper occur together, and we cycle through here. We'll show the resource and a couple of the holes we added. This hole here was, of course, one of our key highlighted holes -- we drilled this last year, and it was over 600 meters at just over 1 gram per tonne gold equivalent, which shows the continuity and consistency of that higher-grade core of the deposit.

We can zoom out and we'll actually look also at the block models that make up the resource, and this is key to help illustrate the higher grade core. On the left, again, Whistler Raintree on the right is less than a kilometer away. So there's some benefits of having 2 deposits situated beside each other. You can, first of all, see the continuity and the size of these resources. At Raintree, we do have a small proof of concept underground. That's not the focus right now, but it does help illustrate the fact that there's no drill holes at depth. There's also no drill holes at depth that was there closing it off. So many of these type of deposits start life as an open pit, and they can migrate to underground as well. But I think important to illustrate here is on the grade blocks, the Whistler deposit itself. We've shown things from the low-grade halo at about 0.3, which is the economic cutoff. We start stripping away those grades. And I'll just go through a series of just to strip away the low grade.

Now we're looking at 0.5 gram per tonne blocks, you still see a solid core of things, strip it away further, and we're just at 1 gram per tonne and above. really wanted to help illustrate the fact that that's a nice solid continuous block continuing to depth and in fact, is not closed off and is limited by the extent of our drilling. That's really one of the key attributes that comes out in our block model as we go through economics. In terms of drilling, there was additional confirmatory drilling done last year. These holes will be added into a mineral resource update this year as part of the PEA update. But on an exploration side, I'm going to zoom over to the other side of the deposit to Raintree where it gets very exciting. It's not a large component of the overall resource right now, but we actually targeted an adjacent target beside Raintree. We did a step out hole some 500 meters away, and we had a very strong intercept of 170 meters at about 0.9 gram per tonne gold equivalent, something unknown at this point. but just helps illustrate the scale and size of this deposit, when you can step out 500 meters and hit significant mineralization. This drill hole here in terms of the bigger scale.

You can see how far out we are with mineralization there into a complete unknown target with lots of upside to further grow this, which is, of course, good news for the royalty company and the royalty we have on it. So that's a quick snapshot. And you can see it in 3D of the deposit. We're very excited about the exploration side of it. We'll run 2 tracks of development here, the first being the PEA showing the economic nature and strength of the deposit. Second key component, of course, is continuing to grow the deposit with exploration upside throughout. One quick image to show here, which I think is kind of Indicative of that, this is an inverted MAG image on the left in 3D and what we see is a deep-seated bath lift, so a big intrusion underneath the cluster of porphyries and when the porphyries poke up sometimes they're called pencil porphyries, but they have a strike and a dimension of about a kilometer plus or minus.

We've identified one of those at Whistler, and we've seen, I think, it's close to 20 additional targets to follow up on. So Porphyries often occurs, clusters. We've got a number of them already identified, but the exploration targets here are numerous and have us very excited to pursue further. In parallel, as we go through the PEA, because we've built up a team with past mine operators, mine developers and a strong environmental focus, we have a key focus on sustainability as well. We have started a number of our baseline studies and starting to plot out the path for eventual permitting and development of the project. So never too early to start on these fronts and also very important that we've engaged with our local stakeholders. The indigenous groups in the area are very business focused in Alaska, which is good news. They want to see development, they want to see jobs in their territories. The nearest native village is some 40-plus miles away, so we don't have proximate to that. every river or every body water that touches the ocean in Alaska will have some impact of [ salmon ].

We're very fortunate in the river closes to our deposit dreams actually into the cooking, which is the Port of Anchorage area. So not a major commercial salmon fishery for the state. So all good factors have us all very excited about developing this. The PEA will be key this year that will help populate and formulate models certainly, Wilsor does not occur in the 5-year forecast for Gold royalty, but I think could make up the next component of 5-year modeling after that. Happy to provide an update. Any questions? Yes?

[indiscernible] Sorry. My question just relates to the road because there's been -- as tried to build a few roads in Alaska recently. Is it all on state land so that that's not going to be held up by Washington or somebody else?

It's on state land and Borough land. So the first 18 miles is in the state -- the Department of Transport budget for this coming year, starting later in the year and building out in the next year or so. That starts at the port end and actually makes it its way over the largest river crossing. -- those get done in the first 18 miles. And I think the strategy for that road, Allstate land, all Boroughland for the first part of it. It helps with the permitting and the slogan that the state has been supportive of is access for all Alaskans. They want this to be a public-private partnership, so that people in Anchorage, where most people in the state live can access their own resources to go hunt and fish in their own backyard as well. It's a great strategy, I think. Michael?

Alastair, on Page 57, you had the exploration potential. -- you want to maybe go through a couple of areas that -- where you saw things you may have not really expected? Or did everything more or less go as playing -- because I mean, from what I understand, there were a couple of areas that there were like favorable surprises versus where you may be mentally stood beforehand.

Well, it's a good question. And I don't know specifically my page numbers are a little different than yours in terms of what page you were looking at. But I think first of all was that the near-term focus has been in the first 2 years is really trying to better define the existing resources itself. So that's been the focus of our drilling. The whole that we did target out to the south and east of Raintree was certainly a very pleasant surprise with the mineralization we have there, albeit the mineralization looks a little different. This had gold and copper, but it was much more silver rich. It had a bit of zinc in it as well. So we're not sure if that's peripheral and mineralization to the existing porphyries we've discovered already? Or is it indicative of another porphyry that might be on the other side of it. So that's a very important hole that we want to follow up on.

I think our next phase to develop some of the other regional targets that show up on this sort of cluster map here would be up north to the northeast of the deposit up in this area here. where there has really been very limited work. We think we can do some very cost-efficient either RC or even some sonic drilling in that area to test through cover. It's quite shallow there, but test to recover to see if the porphyries are there. One of the things we're confident on is that we will find additional porphyries. Of course, the key is are all porphyries mineralized, and we know they're not, but we have over 20 targets. I think it's a very good chance that we will find additional mineralized porphyries within that. Okay. Thanks very much.

I realized I made Alastair introduce himself. That's because he's part of the Gold Royalty team. but I will introduce Brian Penny. Brian Penny, CEO of Walbridge, is here to present on the [ Fenelon ] project and thank you very much for coming, Brian.

Thank you, and thank you to the entire gold royalty team for organizing a great event today. It's great to participate, and it's great to see you in face once again, David. Anyhow, I'm here to talk about Fenelon. Fenelon is our key asset. Walbridge is a company that went back 25 years, started off as a base metal explorer in the Sabre Basin. So about 8 years ago, a decision was made to acquire a small postage stamp 10 aspire kilometer property in the middle of a big property position held by a company called Belmore Mines. That's where all the resources lie today. To put it in perspective, it's on strike to the Detour Lake mine, Canada's largest gold mine on the Ontario side of the border. And we have 2 discoveries, Fenelon and a more further behind Martine, but we've got quite an attractive opportunity here. Our property position is 830 square kilometers. Everything in blue, we own 100% of everything in gray were either earning into or in the case of Detour East [indiscernible] earning into that property.

And the reason why we entered that deal 5 or 6 years ago, it was so far away from the core of our business. To have somebody working in the land, I'd rather own we will be diluted down to 50% if they finish their spending this year. I'd rather own a 50% or something, then 100% or something that's stuck. Yes, because we've been around for 25 years, we do have 1 billion shares outstanding. We recognize that -- we have 3 strong shareholders. [ Eric ] owns 15%. Agnico owns 9.9% and the Kirkland Lake first bought into us when Tony was the CEO of Kirkland Lake. It goes back about 5 or 6 years. And since then, Agnico has participated in all the financings to maintain their pro rata share. And going back to when we were a base metals explore in the Sabre Basin, a group at a sure William Day construction, a very large earthmoving firm in Northern Ontario. They bought 5% and they still hold that stock today.

Our team, my background, although David did highlight it, I was the first CFO of Kinross from '93 to 2004. After the merger with [ TVXEchobay ] and Kinross was time to move on. Was a little burned out. I was going to take some time off. A month later, I ran into Randall on a street corner in Toronto. He said, I got a great idea for you, and it was Western Goldfields. So Western Goldfields was about to go bankrupt, and we managed to raise some money hold off the banks get the permits in order, finance the reactivation of the Mesquite Mine in California. And then a few years after that, merged it into New Gold, which I ran with that for about 11 years. Thinking is going to retire again. And a friend of mine who is on the board of Wallbridge called me and said, we need help on the financing side. Would you like coming up and I say, okay. And here I am 7 years later.

Our Board is diverse. Brian Christie is the Agnico nominee on our Board. Brian is a great mentor and guide and I've learned so much from them. Daniel is Quebec-based geologists, Michael Pesner is a retired partner from KPMG and chairs our Audit Committee. And Jeff Snow, you probably all know he was in-house council at id. And Janet Wilkinson is our Chair of the Board. She's an HR expert. Yes, we don't have a technical expert on the board on the engineering side. We lost that when Tony left our board to focus on his opportunity in Timmins. But the Board has -- if they need that support or the tech committee needs that support, we will bring it in. We're a small company. We can't build a large tech services team, so we're relying on third-party providers to provide that.

And then when Mark retired about 18 months ago, he was a previous CEO and shortly thereafter, the VPX decided to go work for Rio Tinto and Vancouver. I call Mark Peterson. Mark and I worked together for 11 years at New Gold. He's a great economic geologist, and he's been a great addition to the team because we have a much young talent up at the site that Mark could mentor and guide. We are focused on ESG. We have 3 First Nations partners, 2 Cree communities, Waskaganish and Western [ Sibby ], which we have predevelopment agreements in place and Angolan community called Picogon, we're working on a predevelopment agreement. We run as if we have predevelopment agreements. About 25% of our workforce comes from the first nations communities. We have weekly meetings and monthly me to different groups, really working on planting the seed for ultimately negotiating IPAs at some point in the future. We've got a great environmental record. Our safety is second to none. It has been 6.5 years since our lost time incident and focused on transparency, ethics, et cetera. I won't go back and give you a 25-year history. Let's just talk about. In 2019, we had our major discovery. We were drilling, looking for extensions to the Gabrozone, which we did a bulk sample from. Unfortunately, as we drilled through it, it was very popular. And we found Area 51 Tobasco Cayan and Area 51 lane, it was the 51st hole we drilled on the property. So hence, the name geos had a bit of fun there.

We liked what we saw on the posted property, we did a capital markets transaction, bought all of beltmore in 2020. The old nickel assets are sold off and gone. And recently, in March of this year, we published a new technical report, a new resource estimate and the results of a PEA focusing on a smaller size operation. We can always expand into the future. but focusing on the quickest path to commercial production. So looking at the results, 3,000 tonne a day mill. This analysis was done at $2,200 gold, which was analyst consensus gold price in February. Later on, we have a sensitivity up to $3,000 an ounce. And I looked when I was at a conference in Quebec City last week, I was doing some reading, and I see analyst consensus price right now is somewhere around $2,600 an ounce. So we have all those sensitives a little later on. annual strong cash flow.

And again, all these dollars are in Canadian except the unit costs. So decent-sized production, good cash flow, focused on initial capital. focused on when we put our estimates together how do we manage permitting going forward? 3,000 tonnes a day is more manageable because of over 5,000 tonnes a day, you have to have the Feds and the province in your permitting room when 3,000 is only the profits. Focusing on what do we need to do to win the support of our First Nation partners going forward? Our tailings plans for dry stack tailings. We are in the Hudson's Bay [indiscernible] There is glacial overburden around us. So we need to be proactive and planned for dry stack filter tailings, A little bit more expensive but will help with the time lines. The underground operation, the last study that was done 3 years ago had sinking a shaft, smaller tonnage. We don't need to sink a shaft take that risk off and that cost off focus on extending the ramp bulk sample, the ramp goes down. That was completed in 2018 and 2019. Ramp goes down about 120 meters. The whole ore body goes down to about 800 meters, so we can manage it efficiently from that.

The whole thing is based on pace backfill, all the way staying underground other than some initial development, which would go underground at the end of the month. So looking forward at mitigating as much risk upfront. And the economics at [ $20 ] gold, 21% IRR, not bad and a payback of 4 years. So the resource is the study is only on Fenalon alone. So when we built this, we had the first principles, we took the existing infrastructure, which you can see it's labeled there, Gabrapit. I believe it's called open pit yet. That's the existing infrastructure that we're going to expand upon. The whole ore body sits in a cube of about kilometer, so quite manageable. It will be mined using transverse and long-haul mining. It was interesting that I have a verified presentation in the conference I was turning around and 2 engineers were talking to me and say, oh, yes, this is transverse. How do you get that? I'm a CPA by trade, but they obviously know their stuff. They had various trade-offs. And everything is based on first quarter of this year cost. So this is current as current can be.

And I'm very proud of the team because we actually filed our technical report the same day we issued the news release, which for junior companies is definitely not a path that is usually followed. So what it looks like? 2 years to build it, ramp production for 15 years, 14.5 to 15 years. And at the end of the mine, there's a small open pit resource that surrounds where the existing portal is. So ideally, it would be great if you could seat the mill with that, but it could jeopardize the infrastructure in place. So it will be at the end of the mine life based on what we know today. One of the biggest assets we have is -- the blue line that goes across the bottom of the screen is the James Bay hydroelectric line that feeds power into Southern Quebec and Upstate New York. The blue line heading to the top of the screen is 27 kilometers of power line we would have to build. We are in discussions with Quebec hydro. We have applied for an allocation. They've told us we won't formalize this until you have your feasibility study done.

But we keep reminding them that we're here and we're working proactively with them. The other day I mentioned with our Cree partners, this and they said, oh, well, we did a deal with windfall, and we could help you build it. And so there are opportunities to optimize it as we go forward. There's a schematic of the proposed layout, very tight the dry stack tailings is the right way to go, and there's a tiny little waste pile that will ultimately go underground at the end of the mine life. We are in Northern Quebec. It is a camp operation. the layout of the camp, everything that you see on that slide in white will be added. Everything in blue is currently in place, and it will house somewhere around 200 people at any point in time.

The team will be on either a 7 and 7 or 14 and 14 schedule. So transportation to and from [indiscernible] is key. The flow chart is simple. It's a gravity CIL system. We've had met testing done, 96% indicative recovery. And as a point of reference, the bulk sample, we did 35,000 tonnes in 2018, 2019. It was milled at the Camflo mill in just outside of Baldor and we achieved a 96% recovery. Myself being a CPA like checks and balances. Randall taught me that over the years, David. Details of the capital allocation. Obviously, most of the costs are in the mill. That's what the dry stack tailings are in. We do have a 4% royalty on the property. Gold royalty owns 2% of that. and that's factored into our calculations. Respectable total cash costs, respectable all-in sustaining costs. What's really exciting about this.

And in the first 5 years, we actually averaged 127,000 ounces a year. The whole deposit has a middle inventory of 3.5 million ounces. The PEA mine plan mines [ 1.7 ]. There is room for expansion. Some of my engineer friends in the organization said, well, let's build an expansion into this study. I said we're going to lose our audience. Let's focus on the quickest path to commercial production and will lead the expansion for another day. There's a chart of the annual free cash flow and the sensitivity analysis, you can see the last. These numbers are pretty small for an old guy. The last line there, a $3,000 gold, your NAV is $1.4 billion, 34% IRR and a payback of 2.5 years. That excites me. There's an opportunity here.

And then as we go from here, we need to figure out our next steps. The team, Mark Peterson; and Mooro Bisutti, who was the reserve and resource guy at Google are working on developing an infill program. Like how do we get to the prefeas. They're determining how much infill we need, and we'll have answers later on this year. Mike Masu, who was involved in the porcupine study. He's working on the engineering work, what additional work that we need to do to get to a pre-fees. So we'll have answers to that later this year. And this slide compares to the previous study that was done based on 2022 costs at 7,000 tonnes a day, which is -- even if we decide to go that the CapEx would go up because there's been a lot of inflation since the fourth quarter 2022.

So again, the team that worked on this study was Morrow and Mark on the resources. In Avexplo did all the mine design and underground work, G Mining, the mill design and metallurgy. BBA is heavy on infrastructure in Quebec. And I brought in Mahi performance because when I was the CFO of Kinross when we bought the Macassa Mine from Barrick in 1995 or '96, I forget what year it was. Pierre, and Mike worked at the case. So I've known them for a long, long period of time. Pierre is now the COO of Discovery Silver. So he's out of the room now. But Mike is still consulting and advising us because I'm not a technical guy. He's a great engineer, and he's providing a lot of guidance because we don't have a tech services team at some point in time, we will bring a lot of this in-house, but now is not the time. So we believe we're adding value to our shareholders.

Our next step is to get a free fees done. The team is working on right now, how many meters of infill drilling do we need to do to present an updated -- well, PEA pre-feasibility study without jeopardize and destroying the economics of the current PEA. So we can drill the whole thing, and it will take a lot of money and a lot of time, but we need to find a comfort zone of how much drilling we need to do to be able to take it to that next step. And the amount of time we need. Global estimate, I guess, 2 years for pre-fees, 2 years for fees and in the in time, financing your IBAs, all that fun stuff and 2 years to build it. So ties into your time line.

Our other project is Martiniye. Martiniye is probably 2 or 3 years behind Penolon in exploration. The reason why I bring Martini is the last Monday, last Monday, we issued a news release, and there were some pretty splashy results there. Very encouraging, but it needs a lot of work. And is there a way as we're looking to finance Fenalon's pre-fees. Could we find somebody because this project needs 10 drills on it, we got 1 drill on it. but it provides new flow as we're waiting to figure out where to drill those info flows at Fenelon. So is there a bigger company that would give us an upfront payment to earn into 50% by spending something each year.

Those are the things we need to focus on to manage the dilution to our equity shareholders. It's too bad. We have 4% royalties. That could have been part of it, but we're not -- we will not add more royalties or streams to it won't make any economic sense to anybody. So again, platform to grow. The resources growing a technical team is we're shooting above what juniors usually shoot at. And Quebec is the best jurisdiction in the world. They have a tax incentive called Quebec refundable tax credits. So if you incur exploration, not funded by Quebec flow-through because if you use Quebec flow through, the Quebec investor gets the benefits, you get a cash refund when you file your tax return in the next year. Last year, we filed our tax returns for last year very early. They're due in June, and we filled them in April. And we're claiming a $4.8 million refund, which goes into the bank and we reinvest in the property. It's like the ever-ending bunny it just keeps giving and giving. So it's a great jurisdiction, and we're funded until the early part of next year. So we need to take our time, figure this figure the best path forward, and I can order up to questions if you have any questions. Thank you.

So I think those last 2 presentations were really good reminder that even though we have 367% growth in 2029, there's a lot more beyond that. U.S. gold mining, Walbridge are major contributors to our growth in the longer term. That's very exciting. Our next presenter is going to be Mark Utting, the Vice President of Investor Relations from Discovery Silver. And Mark is going to talk about the Borden project in the Porcupine mine. Thanks very much, Mark.

Here we go. Yes. Good morning, everybody. I'm Mark Cutting, I'm Senior Vice President of Investor Relations for Discovery. And basically, when you look at Discovery, I mean a lot of people Tony Makuch, Brian mentioned Tony already. We get called sometime in the Tony Makuch team. And quite frankly, I'm just fine with that. I've worked with Tony for almost a quarter century. And people say, well, that's a long time to work together. And I said, "Yes, I like backing a winning horse." And I think that's what I'm doing. And actually, Brian was kind enough to mention some other people, Pierre Rock and Mike Mayhew and their part of our team as well. And I'd say that, that comment probably is very true for them as well, a great guy. So most people know now, we recently acquired Newmont's Porcupine complex and Timmins. We have a lot of history in the Timmins camp. I mentioned my time with Tony. We were Lake Shore Gold, Kirkland Lake Gold together, which was in Kirkland Lake, obviously, and elsewhere, but thrilled to be back in Timmins.

And I'll tell you, in completing the transaction and making it happen, we've had the pleasure to work with a lot of different groups. It's been a real opportunity. Newmont has been very good to deal with. We've had support from -- the Street, frankly, about has been very supportive in terms of financing our shareholders have been very supportive and both existing and the new shareholders that we have. And I would say I won't talk about that at the corporate level but the shareholder base now we have, I'd say, is as blue chip as any as you'll find. And more on the site level, we've had very good relationships with suppliers very importantly with First Nations groups. I mean I'm going to direct a lot of my comments today to Borton, obviously. And we have 4 key First Nations groups that we -- that are there. They all have impact benefit agreements or similar -- they have been actively engaged in this process around completing the acquisition and making plans for moving forward.

And I know there's a real commitment, and this comes from the Newmont world. And believe me, we know in terms of the impact benefit agreements we've negotiated in the past, how important they are. But I know last year alone, there was about $280 million of procurement, and this is all porcupine I'm talking about now. About $86 million of that involved First Nations partnership. So this is a very important collection of assets in terms of our -- for First Nations as well. And then the people. I mentioned being delighted to be back in Timmins. And when you see the people in Timmins, one I can tell you they're extremely excited about this transaction. I take investors up there. I had an investor tell me this yesterday he went up for site is and he said it's just infectious when you talk to the people at the mines because they're very excited because they know investments coming. And we are committed to managing these assets in a way that will maximize their value, and I think they see that, too. And I always say, and I say this every time I talk about Timmins, I've been around a long time now.

And as far as I'm concerned in the world of gold mining, you won't find better people than you do in Northern Ontario generally and Timmins in particular. So I'll skip over the cautionary language. I'm sure you've seen it before and can look at it. So this is just kind of an overview slide, and I'm going to focus on Borden, but I think it's good to cover the bases in terms of what we've done. So we completed the acquisition with Newmont on April 15 I know the slide says April 16 because it closed at 11:59 p.m. So my press release went out on the 16th, that's why it says that. We acquired 2 underground mines, oil pond and Borden, which I'll be talking mostly about today. We have a new open pit mine and that's [ Pamor ]. And then we have dome and dome, it's the done mine and mill, the milling facility is the central milling facility in Timmins. I'll talk a little bit about that. It's very important for Born because that's where Borneo gets processed. Dome mill is currently not operating, hasn't operated in 2017 having a very large resource, this is a source of real opportunity for us. And then the entire land position is about 1,400 square kilometers.

So this is a very large land position in a very prolific gold region. So there's lots of exploration upside. We did a technical report as part of doing the deal and the financing. It largely drew new ones numbers because we just didn't have time. We're doing a PFS this year. But basically, what it showed is average production of over 285,000 ounces for all of the Porcupine complex per year over the next 10 years with a total mine life of 22 years. That's largely because of Par. Economics. We're using current prices on this slide. I mean you can scale it. But at $3,300 gold, it had an NPV of USD 3.4 billion. Our share price is up a lot. But when you look at our share price and market cap compared to the value in what we regard as a base case technical report that we will improve upon and you throw in which in our valuation today, we still say you're getting for free, an option on our Cordero silver project, which we regard as the finest silver development project in the world today. I mean its feasibility study at recurrent silver price has an NPV of about USD 2.5 billion. I won't talk about it today, but I'm happy to if anybody wants to.

You'll see we have a lot of upside left, and that's particularly the case that the upside I'm going to talk to you about, none of that really is included in the technical report that we did. Just at a very high level, Hoyle ponds, I'll just mention quickly, one of the things we've already found is very interesting is people know a Porcupine. They've heard it, they know what it is. But as we went to conferences and talked to people, the sum of the parts is not something that's well understood. And that's largely because I believe that for a long time, it's been 1 line item in a very large company's results. And what we have found and the way we're going to be disclosing for these mines as separate segments is that we have real sort of information providing exercise to do because the individual pieces aren't well understood. So Hoyle ponds, one of Canada's highest grade gold mines. In fact, it may very well be one of North America's highest grade gold mines. It started producing 1987. David knows all this stuff better than I do. But started producing in 1987.

It's produced 4 million ounces in that time, outstanding track record for replacing reserves. Tony likes to tell the story when he was mine manager at Hoyle, I believe in 1997. And they had 30,000 ounces of reserve. They produced 170,000 ounces that year, and they produced 3 million ounces since then. So there's lots of targets to drill there that haven't been drilled in recent years. So we're very confident that excellent track record is going to continue. And then moving to Borden, relatively new mine. I think the first goal go forward there in 2018, if I'm not mistaken. It's starting its own track record of replacing reserves and replacing ounces mined on a very large land position that I'll talk about, about 1,000 square kilometers.

And it's got tremendous upside. I know Tony told me that when he spoke, I think it might have been to you, David, but what spoke to Goldcorp about, well, if you're going to go and buy this, why don't you just buy Lakeshore because it's producing more, and it's right in Timmins. And what he always tells people is, then I went to Borden, and now I know why they did that because the upside at Borden is tremendous, and it's a very good mine, and we can talk about that. But you'll see there, it produces about 105,000 ounces a year as the average in the technical report. The 8-year mine life, we don't believe for a second. I'll talk about that more in a few minutes.

And then [ Pamoils ] the new open pit mine. I won't spend a lot of time with it, 150,000 ounces a year. It's ramping up now in the second half of this year. All I'll say is lots of exploration potential, and we think it's got the opportunity to become something much bigger and more valuable than what's currently in the technical report. And I've mentioned dome in our Tenneco port, I had 11 million ounces of inferred resource. There's lots left, we believe, at dome -- it's not in the economic analysis of the technical report. The analysts that cover us, and we picked up a lot of analyst coverage over the last 1.5 months. With 1 exception, no 1 is including any value for dome mine, and that is a real upside opportunity for us.

This is just quickly the technical report production profile. Bordens is in the silver here, and you'll see the breakout by year. The arrows are important because it shows you that we fully expect through investment to be able to increase production. But we also -- the arrow in the middle is important because we also expect to extend mine life and not to mention lower costs as we invest. So when we look at a board with an 8-year mine life and a Hoyle pond with a 10-year mine life, we don't expect that to be the case at all. We fully expect that those mines are going to be operating for a very long time to come.

And then looking at Borden, it's 20 kilometers from Shaplow, Ontario, about 190 kilometers -- well, 190 kilometers from the Timmins mill -- excuse me, the dome mill, I've mentioned the production level the year-by-year production in the technical report is there on the screen. Currently, the mining rate is about 2,000 tonnes a day of ore, and we definitely see an opportunity to increase that. Hoyle Pond is currently operating about 550 tonnes a day. And when Tony was there, it's 1,200 tonnes a day. We think we can get it back up to 1,000. I wouldn't say the incremental increase is going to be as big as Borden but we certainly think we could go from 2,000 to 2,400.

We also think we can lower costs by optimizing the operation and partially by improving the grade. The key things that we look at and we've seen at Borden are -- they've outrun the ventilation. There hasn't been the investment in the ventilation that's been needed. We're going to be looking at doing that so we can get more equipment and more materials underground. Looking at improving the fleet, some of the equipment is not optimal. It's resulted in larger headings that are necessary, and we're going to rightsize that just improving some other basic processes. I know backfilled they're currently backhauling waste from dome for the cemented rock fill. And we're going to look at alternative sources. I won't get into all the details of the things that are being brought up now in terms of opportunities to optimize it. But clearly, we see an opportunity to take this operation and improve it, and we certainly see the opportunity to drill to continue the mine life and actually to grow it.

This is, by my own admission, not a great visual. But I mentioned that it's a massive land position that they have. It's 1,000 square kilometers. Most of this land position has either been unexplored or at least underexplored. We're very interested over time to take a look at what's there. Tony likes to say that Bordon in itself could have camp potential. Obviously, that's a forward-looking statement, and there's got to be a lot of work done. But when you look at the size of the land position and the little area that circled in red in the bottom left, that basically shows you where the mine is and where the resource is currently.

So you can see -- we've got an ore body that's not drilled out at all. In fact, it's open along strike, it's open at depth. And then you've got this land position around it. that we're going to look at just what the full potential -- the majority of our attention at this point in time is on continuing to extend the mine life continuing with within the mine, and I'll show you some visuals here. But there's a tremendous regional exploration play here as well that we're going to look at. This, I took the liberty of taking from Gold Royalties website because it was better than the one I could come up with.

So this just shows you where the royalty coverage is. And it's important to look in the bottom there because those different colors are the mine workings and where the mining activity is going. So you can see it's -- from your perspective, it's moving in the right direction. It's coming very much into where we would -- we're paying the royalty. This is a shot I came up with, and I want to stress here, it's just cut at the right. That's not where it ends. So that's -- I wanted to show the other one first to show you that it keeps going. But this gives you a sense of where the different zones at Borden are. And you can see -- I'm going to go into Verifi now because it's a little easier to talk about the zones.

But you can see that the mining is going, the portals on the far left. And the mining is going left to right for lack of a more technical way of saying that. So you can see from the standpoint of the royalty, it's heading in the right direction. This, I'll go into Verifi here and just show you -- this is just an underground view. It doesn't have all the zones on it. But currently, most of the mining is in the west zone. There is a zone on the other side, the Far West zone that is now mined out. the West zone is where and to some extent, the central zone are where most of the mining is happening right now.

And you can see -- I'm just going to take -- you can see that's the far west, then there's the West and Central. So you can see -- in this area here is where most of the mining is right now. But we are beginning to -- we are developing further down. And we are doing some production in the upper East zone. And then the Far East Zone, we will begin development there later this year. And the mining -- I don't call it year by year, but essentially the mining is moving in that direction. We'll have the west will be mined out by the end of next year, early into 2027, but then we'll be fully in the Upper East. And then I believe it's the lower East zone will be moving into there as well. And then on the far right here, you can see the deep zone.

This is -- when I talk about the initial priority of drilling, it's to continue what they were doing. -- which is largely continuing to extend that existing mining trend. And that's very much what the priority is. But recognize, we're talking about the current resource and the mining trend and even though it wasn't a good visual. Think of the size of the land position that we've got. So it's -- and that really nothing is drilled off here. So there is lots of opportunity to continue to develop this. And actually, we like to say we like to do transformation stories. We like to take an asset and transform it into something much bigger and better than it was I think we had some success on Macassa. We had success at Fosterville in Australia and we had success with Detour as well.

So we look at all the assets at Porkupine and including Board and we see there's that kind of scale-up potential here. And this just looks at the E Zone, and again, this is coming right in. This is right in the royalty area. The known area of mineralization and geologic potential that we have, you can see it's a kilometer long, and that's just where they put holes in so far. We expect this to continue. I mentioned some of the limitations where there hasn't been investment. Ventilation, I mentioned earlier, is one of them. The current vent raise is over by where the portal is, which is on the far left -- and they've been trying to put raises in and trying to do things without doing things like doing a full vent raise. And by doing that, you get into situations where you don't maybe have all the equipment you need or maybe the right equipment underneath there. And it is an electric mine from a standpoint. There's a fair bit of electric equipment there, but it's not all electric. There's still a lot of diesel equipment there. And we're going to look at ways of addressing that and continuing to look at electrification and other options potentially but we're also going to put ventilation in over here. And that's going to allow us to become much more efficient equipment, materials, people, things like that, and that's going to help us optimize the mine. This just is a visual that really is our drill program. Yes?

Just a quick question here on borden and given the death potential there, are you thinking shaft? Or maybe what would you want to see there before you made that decision.

It's a good question because I've shown you the direction of how things are moving relative to where the portal is. So at some point, definitely. And this is in the technical report, -- but definitely, there's another event raise that needs to go in because it's just going to improve the efficiency of the mine. And believe me, it will pay for itself very quickly. If we continue to have the success driving that section, and then we'll see driving the deep zone essentially. And then particularly if we have other drilling success there, you could get to a depth where you have to look at something like that. I can't tell you that that's actively discussed right now, what would you need? You need an economic analysis of a shaft based on the ounces that you find that's going to make it worthwhile doing.

And I think our priority right now is we see we see some -- we see opportunities to do things that are going to materially we believe, improve the performance of the mine in all respects that we're going to focus on that. but we need to drill more. And to answer your question, we need to drill more and we need to find out what's there. And we talk about -- it's not in this deck, I didn't put that slide in. But we do have a more detailed exploration slide on the Porcupine complex in general. And we -- our target is to sort of -- we expect to spend about $50 million in exploration a year. And we did that, well, at Kirkland Lake Gold, and we had Fosterville and Macassa even before Detour and then it just went to a different level. But we had exploration budgets upwards of $100 million.

I mean I think one thing that's very central to Tony's view of things is that you need to find out as quickly as you can with the true value potential of the asset you have is. And drilling is just such a fundamental way of doing that. We don't -- we're going to be pretty aggressive in a responsible, hopefully effective way, which I think we've demonstrated in different situations, we're pretty good at it. but we're going to up the drilling and that's going to give you us the answers to the question that you have. I don't have a hurdle rate for ounces we need to find that I can give you. but it's going to be drilling. And we're looking at other things. I'm not talking too much about the other assets. But Hoyle Pond has a wins, a rail and a #1 shaft -- it's also got this big zone called the TV Zed zone that we're very interested in. Alastair knows about that a little bit that we're going to prioritize looking at what do we need to find before we maybe try to address the way that infrastructure is working.

I can't give you that answer either, but I know that there's going to be a whole lot of drilling done to figure that out and then we do the economic analysis. But that's sort of the way we see it. And that's where I think the answers are going to come from. So that's just the drill program they've got for this year. The -- I believe that gold is indicated to upgrade the resource. The blue is inferred and then the late blue is going after new resources, and that's what they're focused on. And then I just got a slide on the mill because it is important. It's important for Borden. It's important for us because we get down to free cash flow, that's what we focus on. The dome mill has been operating about 8,000 to 9,000 tonnes a day.

When Gord Leavoy, who's another member of our team from Lake Shore and Kirklandays. He ran the Dome mill in the early 2000s and/or at least was Mill General Forman it was doing 12,000 tonnes a day then -- we're going to work. In fact, we've already started working to get it back up to 12,000 tonnes a day. We've increased throughput already somewhat. The costs they're getting now are over USD 20 a tonne. When Gord was there, he said U.S. dollars was [ sub-10 ]. So I'm not saying we're going to get back to that level, but there's some pretty low hanging fruit in the mill in terms of things that need to be done that just haven't been done I won't get into too much detail. There's a very -- you can't really see on this visual actually, but there's a 3-stage crushing process with conveyors that run over a kilometer. And we're just going to -- we're going to deal with that because that's expensive. And it's not -- the mill hasn't been received investment over the last few years that it's needed.

And if we get -- if we invest to get this back to 12,000 tonnes a day, we get the mill running the way it should be, things that are broken that haven't been fixed. We fix them, things like that. If we can knock -- hey, if we can knock anything close to $10 a tonne, for all the sites off just by getting -- optimizing the mill and getting it back to its full capacity, that's a meaningful contribution, and that's something that will benefit for as well as all the other sites. That's what I've got. So if there's any -- I don't know if you want questions now or you want to wait.

Thank you. We've got 1 guest speaker left, and it's Jean-Marie Chloe, who's going to speak -- sorry, Director of Investor Relations at Agnico Eagle, and he's going to speak on the Canadian Malartic mine and the Odyssey project. Thanks very much, Jean-Marie.

So good morning, everybody. I know I'm keeping everybody from lunch. So I'll try to make it creatively quickly. So yes, it's a pleasure to be here this morning with all of you for the Gold Royalty Investor Day. As Jay said, my name is Jean-Marie Chloe. I've been VP, Investor Relations at Agnico Eagle. My background actually is in technical. I'm a mining engineer. I started at Agnico about 10 years ago in the project evaluations group, look at the external opportunities, data bit of corporate development in the last 5 years I've been with the Investor Relations group. So today, I'll go quickly through a high-level presentation of Agnico. Most of you know it, but like where we are and where we want to be. And then I spend most of my time on Cayman Arctic and the potential there and also there like where we are currently and where we would like to be the vision we have for the camp.

So I'll be making some forward-looking statements. So please refer to the second page of the presentation, always a very small reading there. So looking at Agnew Eagle. -- the company began about 60 years ago in Cobalt, Ontario. And from Amble beginnings, the company has grown progressively but consistently and is now the largest gold mining company by market cap. Pretty much aligned with Newmont. So it's a pretty outstanding progress over the years. Essentially, we're mining off really explorers, mine builders, and operators. And we followed a very simple but consistent strategy that can really be summarized as a regional consolidation or regional approach to create a competitive advantage.

And what do we mean by that? Like we operate really in geopolitical, safe and stable regions. We've built decades of expertise in those regions. So we're a global company. We operate in 4 countries: Canada, Australia, Mexico and Finland. But the reality is like 85% of our production and of our value comes from 3 regions in Canada. So Northern Quebec, Northern Ontario and Nunavut. Our operations are visually consolidated, which allows us to be highly efficient. This structure allows us to generate synergies, to control costs and build resilience to our business. In the regions where we operate, we tend to be an employer of choice. We have about 12,000 people in Canada and very often multi-generational.

We have dedicated and loyal employees, which allows us really to show one of the lowest turnover rates in the industry. If we think about the supply chain, thanks to our long-standing presence, we have very strong relationships with our suppliers. It allow us to ensure we have consistent supply from a supply chain in times of prices, but it also allows us to have volume discounts by volume. We have a very strong technical team that we can deploy across multiple sites. This mobility ensures that we're operating as efficiently as possible, and we're continuously improving our assets. the single expertise that we have, we're able to leverage it, including the regional expertise to make capital allocation decisions that are based on a knowledge advantage. And that's key as we try to build value over time. We're also known to bid value through the drill bit. We've always focused a lot on the upside potential.

And as Mark mentioned about Kirkland, like how they really build value to drilling, Agnico have been very successful also over time to build value through the drill at the different sites. So we're really disciplined in terms of how we spend the capital of our owners, and we commit really to quality investments regardless of the direction of the gold price. Our track record, I think, speaks for itself. We've been able to create and generate value for the company and for our shareholders, essentially through 2 key aspects: One, we've been able to increase the gold exposure to shareholders on a per share metric. If you look at our production per share growth -- reserve per share or value per share, we've been able to really increase it consistently over the last 20 years. And that's really something that a lot of our peers cannot say. We've also been able to deliver leverage to the gold price. And what we mean by that is through strong operational performance and controlling costs, we've been able to really deliver the increase in gold price through increased margins to our shareholders. And that has been key of our success over the last couple of years.

Moving to the -- what we're looking forward to in the coming years. We're really focusing on 5 key growth projects. We provided guidance in February. We've shown a stable production over the next 3 years at about 3.4 million ounces. The market expects that we'll have a bit of a production dip in '28, '29. We had a similar expectation for '26, '27 and we've been able to show and fill in that gap. We're working towards doing the same for '28, '29. But what's exciting really starting in 2030, we see the potential for a step up in production as we bring some of these expansion and new development projects online.

Starting at Detour. Mark mentioned the drilling that happened there [indiscernible] 2020, a lot of drilling. I think about 20 million ounces were added to resources within 2 to 3 years, 10 million ounces in reserves. We keep on going on that work, and we've seen the potential now to bring that operation from the largest open pit gold mine in Canada at about 700,000 ounces of gold per year to 1 million ounces a year with the addition of an underground component. So that's fairly exciting given the size, the location and the 100% ownership of that asset. That's very unique on the Western world. At Canadian Malartic, so that's the asset that really interest you as owners of gold royalty. We also see the potential in that camp to bring the operation to 1 million ounces.

We're currently transitioning from open pit to underground where we see production to be about 550,000 ounces a year for the next 10, 15 years. But we also see the potential to add new ore sources to bring that asset to a million ounce through additional prudential second shaft and some satellite deposits in the region. And I'll go through that in the later slides. In Kirkland Lake, close to our Macassa Mine. We have the [indiscernible] project. We're currently developing exploration infrastructure, ramp in the shaft there. We think we'll be able to bring about 210,000 ounces a year of production starting. So also an addition in Ontario alone, we think we can increase our production by 50% from currently 1 million ounces to 1.5 million ounce to those 2 detour and upper [indiscernible]

In Nunavut, we're currently producing about 900,000 ounces a year from 2 mines, Meliadine and Meadowbank. Medibank is coming to end of life in about 2028. We think we can extend part of the production, probably down to -- but the real excitement there is Hope Bay. We're drilling aggressively there. We're advancing the engineering. We think by next year, we'll have about 50%, 60% of the engineering done and then we'll be able to communicate project that will show about 400,000 ounces a year for years to come. And finally, in Mexico, our assets there are mature. They're coming to end of life. And focus is shifting towards the San Nicolas project. That's a joint venture with tech. It's a copper zinc project.

If we talk in coequivalent, it's about 200,000 ounces a year that could come into the 2030s also. It's currently the feasibility stage and permitting stage, and we hope we can provide a better update early next year. But let's really move on to Canadian Malartic and really the excitement around that can potential. It's worth having a look -- sorry, I should have taken the animation. I'll go through the history of the CAM because I think it's worth mentioning it. This is a camp that has 100 years history. It all began with a discovery by the Goldi Brothers in 1923. From 1935 to 1983, there was gold production from 4 underground mines that produce about 5 million ounces at an average grade of 4.4 grams per tonne.

Osisko began -- acquired [indiscernible] in 2004 and began the redevelopment of the camp through open pit. Production started there in 2011 and produced since then about 8 million ounces, and we pretty have about another 2 million ounces to go at the Barnat pit before the open pit project is really completed. In 2014, Agnico Eagle and Yamana acquired the project jointly. And form a joint venture, 50-50 to operate the mine. The partnership also launched an exploration program targeting the underground zones near the existing pits. The major breakthrough came in 2018 with the discovery of Isgoli, and discovery was really instrumental to justify the return to underground mining and led the foundation for the Odyssey project. Construction of [ Odyssey ] underground mine began in 2021. By 2023, production started at the Odyssey South deposit and really marking the new era of underground mining at Canadian Malartic. Also in 2023, Agnico Eagle consolidated the ownership of the property and has continued expanding the land package with most recently the acquisition of [indiscernible] Mining and the addition of the Marban deposit.

Let's have a look at the production profile. So the project -- first update the market was done in 2020. We did an update in June 2023 and where we really show the ambition for this project and the transition from the open pit to the underground operation. Essentially, what we're doing is we're shifting production that process about 60,000 tonnes per day at 1 gram per tonne from the open pits to about 19,000 tonnes per day at 3 grams per tonne. Despite the lower throughput, we're maintaining production at around 550,000 ounces per year until the 2040s. The project has been significantly derisked. We've converted about over 5 million ounces in reserves at this point in time. We've advanced quite significantly the construction and really on schedule and on budget.

And 1 point I would like to remind people is like the production profile that you see here is based -- includes about 9 million ounces of gold. The resource is over 18 million ounces, and we think can significantly add to it. And to that extent, like really we're looking to bring that -- transform this asset to a 1 million-ounce producer saying, with the addition of new ore sources. The red line that you see on the graph is the [indiscernible] throughput about 60,000 tonnes per day currently down to about 20,000. That's where the opportunity set going forward, where we would be able to fill in that mill capacity. And add like quite a few ounces per year over the next few years -- this is a presentation of the different deposits that will be mined in the current project. If you think about it, there's like 4 different deposits, so essentially 4 different mines.

The money method across the deposit is consistent with what we do in the region. If you think about Goldex, which is a few kilometers away from this site, Goldex mines 8,000 tonnes per day. The bigger deposit here is gold will be at 12,000 tonnes per day. But let's go quickly through each deposit. Odyssey South as I mentioned, that production started in 2023. And is currently producing at 3,000 tonnes per day and production will stay there at that level until 2027. That's ramp access. There is potential to add to it as we keep on drilling, especially coming from their internal zones. Is Gold will be the largest deposit will be mined through via shaft. Part of it at the beginning will be the ramp and most of it via shaft, 12,000 tonnes per day. and it will really be the current storm of our production profile for years to come. Odyssey North, that's where Gold Royalty owns a royalty, about 3% NSR. The production there is expected to ramp up starting in 2028, coming to a level of about 3,500 tonnes per day and extend it to 2038. And then the last piece is really the small arctic that will come towards the end of the mine life, contributing about 3,300 tonnes per day as we approached the end of the project time line.

In terms of construction, we're really advancing well. development, the ramp is ahead of schedule, thanks to the automation effort that the site has put in place. We've now reached a death about a kilometer and we're senescent advancing the ventilation infrastructure for the market. shaft-sinking has reached the loading station at about 1,000 meter also. Most of the activation this year will be atypical as we excavate the loading station and [indiscernible] will restart in 2026 with completion of the shaft, the 1.8 [ kilometer ] shaft in about. Towards the end of 2027.

We've commissioned a temporary loading station at level 64. That helps us with the current development. The service as can always about 3,500 tonnes a day and helps with the waste management and with the material and for the support for construction. In terms of the key milestones for the construction. We're currently working to the manuals building for the main host due in 2028. The administration and dry building that's is supposed to be done towards the end of the year. The ore silo underground will be done around 2027. The [ PACE ] plant also done Phase II down to our 2027 to supported 20,000 tonnes per day production. And then finally, the shaft sinking like that would include all the ore handling system, the changeovers that should be completed at the bottom of the shop in 2030.

The excitement in this project is really around the exploration potential. If you look at how quickly the mineral base has grown over the years, it's fairly outstanding. Starting in 2014, there was not a single ounce really on -- for underground material. The joint venture at the time set up the program. They was starting identifying the potential at Odeyssey South and Odessey North and the porphyria in between. The biggest discovery was [indiscernible] as we mentioned, and that's when the reserves start to growing quickly, starting in 2018. As you can see, a lot of the focus at the time was really on the expansion as we are starting advancing the potential for the project where the focus shifted to conversion to derisk the project that was in years 2021 and 2023.

And now we're really starting to balance a bit more of the exploration between conversion to support the development of the project, but also expansion again, as we continue to grow the Goldi deposit to the east to the west and we are also looking at the potential within the camp. So if you look at the section itself, the budget this year at Kanymolarctic in terms of exploration is $37 million for drilling of 216 kilometers, and we think we might be adding more in midyear. We currently have 24 drills at Odyssey between surface and underground. We also have 5 drills targeting the regional potential. The scale of activity really demonstrates the confidence that we have in the district.

On Gold Royalty, maybe 1 aspect that would be interesting for you as investors, if you look at the Odyssey North deposit, that's right at the edge of the volcanics towards the deeper part of the deposit. The pink between is South and Odyssey North is what we call the internal zones. The internal zones are fairly complex in terms of mineralization. So they couldn't really be drilled effectively from surface because they require quite a bit tight drilling. We're currently drilling it from underground. We are also mapping those zones from the ramps that we have underground. That will help us improve the interpretation? And should that potential -- should that really ounces to our production profile from 2 aspects: one, from optimizing the stops in the Odyssey South and Odyssey North deposit as we mine them, but also adding some new stopes really in the porphyry zone.

And so we started seeing that really at -- as we're mining the dices South, we see additional tonnes we see additional grades and some of the stuff that we're mining, but there's quite a bit further potential [indiscernible] our EVP Exploration, mentioned that you can see easily an additional 1 million ounces in that zone. [indiscernible] Goldi itself really -- we've seen significant strike extension to the East and West. Our current interpretation actually suggests like the mineralization can potentially extend to the -- towards the Cayman Arctic pit. We see it a bit as a structure that we start seeing as a kill of a boat. So calling it the kill structure. We keep on drilling to really improve that potential. We're also seeing quite a bit of extension to the East. The key thing to the east is we're trying to prove another core -- a second high-grade core.

So what we mean by that is about 2 million ounces at 3 grams per tonne that will support the economics for the second half. The second shaft in terms of our production profile that we said earlier, what it could contribute to is accelerating some of production from those zones, including the Odyssey North. We're also starting to identify some payroll zones, as you can see in the cross-section. The main one really that providing some excitement, the clip zone. It's very well located between the East gold deposit and the Odyssey deposits, so very close to plan infrastructure, which again could help support the development of the second shaft, the economics. And we could ounces in its production profile with a minimum incremental investment.

And so as I wrap up the presentation, I really wanted to highlight the plan that Cayman Arctic is not just a mining transition. It's really a platform for long-term growth. We've seen the rich history in terms of mineral potential. In the camp currently like about 50 million ounces have been mined over the last -- well, since 1935 when production started. We have another 18 million ounces between mineral reserves in our resources. So at this point in time, our VP Exploration was mentioning really discount has overtaken [indiscernible] as a leading gold camp in the region. And that's something to say for a region like the [indiscernible]

So we have the vision to increase production to 2 million ounces. I was mentioning it. A big part of it could come from the second shaft. That could add another 200,000 ounces a year. So we're advancing the drilling and the economics. We think we can properly an update on that in 2027. Contribution will also have to come from some satellite deposits. So that includes the Morban deposit. That's an open pit potential about 10 kilometers away, could add about 130,000 ounces a year. satellite underground mine at Wasamac, that's located at about 80 kilometers away. Those 2 projects would come also in the -- yes, [ '32, '33 ] in before we get them approved and developed. And of course, we're also looking at the CAM potential.

So we're really establishing a long-term exploration program, very similar to what has been done at [ Loran ] very successfully. We're targeting key mineralized horizons within the camp. You'll see that within the volcanics, where most of the mineralization is, we have potential for additional porphyry used type deposits, very similar to Odyssey. We have potential for cabo hosted-type deposit, very similar to the [indiscernible] mines towards the eastern side of the deposit, where Gold Royalty is also on a 1.5% royalty. And then also, of course, like the potential within the sediment horizon, which has really never explored until there is only discovery a lot of potential targets within that cap to add additional production in the future. And finally, the bottom map really, I wanted to highlight that Cayman Arctic is really strategically positioned within an extremely prolific camp in that -- in those 200 kilometers over 120 million ounces of gold at introduced over the last 100 years.

So discoveries like this gold it just shows that we're really just at the beginning of tapping the full potential. And we believe that by leveraging the infrastructure that we have in place, the expertise that we have in place and the regional synergies that we can provide. We are going to be not just extending the mine life, but really setting up the next big Canadian gold district in Quebec. So that covers all the points I had to make. Thank you very much.

So when you get out to '28, '29, what Agnico's estimate in terms of this production profile that you've laid out that is covered by Gold Royalties royalty.

I wouldn't be able to tell you exactly how much it is. So like the Odyssey North production will ramp up starting in 2028, what it will be exactly still like we're still working through the optimization of the profile in those years. What we're seeing is we're seeing potential to accelerate some of the production from the upper part of his gold, which is not covered by the royalty -- but as we -- I think the biggest potential for the gold royalties, it's really as we look at the second shaft is can we accelerate some of that production from Odyssey North as we develop the [indiscernible] infrastructure. but that pretty would be more in the 2030s.

That eclipse that you were talking about just south utilized between East Goldy and Odyssey North. Is that the gold royalty property?

No, not that's just outside of it.

East Goldy and Eclipse are trending at depth, though, they do come on to our property, but not as far as they're delineated right now.

And so as we keep on drilling, like I was mentioning, that really, it looks like there seems to be some type of a kill structure. We're not really understand this to amortization there extends at depth. But like there's potential for additional resources when those structures kind of come close together.

Well, I'll wrap things up. First, I really should thank our guest speakers today. I think what they helped do is put a spotlight or an emphasis on the tremendous Ampera leading growth profile we have over the next 5 years. But also this growth doesn't stop in 2030. When you look at the quality of the asset base we have, the scale of the underlying resources on those assets, there's tremendous growth and optionality beyond 2030. And I think these speakers very capably represented that today. So thank you very much for coming today to do that. I also want to thank our team. I have to say that I'm absolutely privileged to work with the team that we have. It's not a big team, but it's a very accomplished team. John Griffith was there from day 1. He led the Americas Mining Group for Bank of America. Andrew Gubbels who joined us more recently, ran the Americas Mining Group for UBS. So they bring a lot of transactional mining industry experience to the table.

And then most recently, Jack he joined us, and she's tremendously accomplished, both on the buy side and sell side but comes with a technical background as well. So it really complements a very strong team. And back home, Peter Binke and Sam Maa been there for a long time as well, and they've been critical to building out this business. Amir and I had a vision of what we wanted this business to be, and it's really far exceeded that because of the capability and the execution of the team that I mentioned here today. So thank you very much to all of you. You've done a great job on the presentations today as well. I want to thank all of you for coming today. I think having your time this morning and the time to take to really get into the weeds on our business, I think it's a privilege for us to have you here and we'd be delighted to take any questions you have going forward, reach out to any of us, you know we're all very accessible and be delighted to talk to you again about the story over the course of the next year.

So thanks very much for everybody coming. Hope you can join us for lunch for those that are here live today, and thanks for all those who participated online as well.