Gold Royalty Corp. 2026 Q2 Earnings Call

Please go ahead. Thank you, operator.

Good morning, ladies and gentlemen, thank you for participating in today's call to review our second quarter 2026 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 in today's call will include forward-looking statements, I would direct everyone to review slide two of the presentation, which includes important cautionary notes. All dollar values in today's call are expressed in US 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 Stakeholder Sustainability. For the first quarter in several years, the gold price was down, falling by 13%, or nearly $600 per ounce in the second quarter of 2026.

However, to put this price movement in the proper perspective, the commodity was still up strongly year-over-year by nearly 18%, or over $700 per ounce. Reflecting the risk off sentiment that has prevailed in our sector since the onset of the Iran war, gold mining equities levered to gold fared even worse than the commodity price. The GDX and the GDXJ, VanEck gold miners and junior gold miners ETFs each fell 18% in the second quarter. Gold Royalty is a small cap and liquid stock which has outperformed our peers through 2025, was down 23%. This downward movement in the gold price equities and in our share price in particular, are severely overdone and reflect neither the fundamentals of the commodity nor those of the robust and accelerating growth of Gold Royalty's business. All the key drivers for gold remain in place.

Continued government fiscal deficits, elevated government spending, and persistent inflationary pressures have the potential to further erode the purchasing power of the US dollar and other fiat currencies. In this environment, we believe gold remains well-positioned as a store of value and is expected to be driven vastly higher from increased investor and central bank demand. The improved outlook for gold and the growth Gold Royalty Corp is experiencing from our world-class portfolio will act as a tailwind for gold equities and in particular for our share price. Unlike the gold miners, we have no inflationary pressures weighing on our operating margins. The increasing cost for oil, fuel, and other petroleum-derived products such as explosives, which have impacted operations this year, will continue to be fully borne by our operating partners, allowing our shareholders to enjoy unmitigated leverage to the gold price.

One of the great features of our royalty model is that we are insulated from most sources of cost inflation. NSR royalties are royalties on revenues and are not impacted by mine site operating costs, nor do they have fixed or variable payments back to the operators. Nearly all of our royalties are NSR royalties, which gives us strong margins even compared with our royalty and streaming peers. The data in slide five show our strong operating margins versus peers, and we note that our margins continue to improve as we continue to realize our peer-leading revenue growth over the next few years. To be clear, our operating costs are essentially fixed. Every dollar of revenue growth has and will continue to fall right to the bottom line. Our operating margin is projected to continue to grow over the ensuing quarters and years.

Our portfolio, which is weighted at 92% gold, is highly leveraged to gold prices and is poised to benefit from the expected improved outlook for gold that we have already discussed. With strong gold growth in all key production and financial results expected over the next five years in peer-leading trading liquidity, we are poised to outperform both gold producer equities and our royalty peers. Turning to the results for the quarter. The second quarter was another strong one for Gold Royalty. We have reported record results for the half year ended June 30th, with a more than doubling or 116% increase in total revenue, land agreement proceeds and interest to $17.3 million, and an over 40% increase in gold equivalent ounces to 3,677 ounces, and a more than tripling or 212% increase in adjusted EBITDA to $12.6 million, as Andrew will go through in more detail in a few moments.

We also continue to be very optimistic about our outlook for organic growth for the second half of 2026, as Jackie will discuss shortly, and remain on track to meet our previously disclosed full year production guidance of 7,500 to 9,300 GEOs. John will also lead you through the steady progress we are making in business development, as we added a second royalty on Barrick's Ren project in June, and two additional royalties subsequent to quarter end to complement the consistent creation of cost-free royalties from our royalty generator model. These are in addition to two major acquisitions completed since late last year of the Pedra Branca and additional Borborema royalties. As a reminder, we published our updated integrated report, the combined asset handbook and sustainability report. You can find this report under the portfolio integrated reports sections of our website on goldroyalty.com.

We also hosted Gold Royalty's annual Capital Markets Day in the second quarter, where we discussed in detail our exciting organic growth already fully bought and paid for, our continued disciplined approach to accretive growth, and the high quality of assets in our portfolio. For those of you who are interested in learning more about our royalty generator model, Jerry Baughman took a deep dive into the royalty generator model and the opportunities we are seeing. We were joined by representatives of Corex, DPM, and Orla to review some of the most exciting assets in our portfolio. A replay of the June 18th event can be found in the investors and events section of our website. I will now pass the call over to our CFO, Andrew Gubbels, to discuss the financial results for the quarter and the year to date.

Thanks, Dave. As Dave mentioned, we're pleased to report new records for revenue and adjusted EBITDA in the first half of 2026. Specific to the second quarter, total revenue, land agreement proceeds and interest was $7.9 million, translating to 1,757 GEOs in the quarter. Adjusted EBITDA was $5.6 million, more than doubling from the $2.4 million in the comparable quarter in 2025. Our balance sheet also remains strong. We exited the second quarter with over $11.3 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 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, a capital return policy is actively being considered for our board of directors and will be announced in due course. I will now pass the call to John Griffith to review our recent growth transactions.

Thanks, Andrew. We have balance sheet and undrawn borrowing capacity to make meaningful acquisitions, potentially as large as $200 million and larger in partnership with Taurus under our cooperation agreement. Competition for larger transactions, especially with near-term cash flow prospects in good jurisdictions and with great operators, has been robust, negatively impacting implied returns. It is with this backdrop that we've remained disciplined in our pursuits of value-enhancing accretive transactions. That is not to suggest the potential pipeline is not robust. We continue to pursue a significant number of exciting opportunities. We maintain a deep pipeline of potential transactions to drive growth beyond our already peer-leading organic growth. We continue to be active on smaller transactions as well. In June and July, we made two separate acquisitions.

The first was an additional 0.1875% NSR royalty on the Ren project, operated by Barrick, and jointly owned by Barrick and Newmont under the Nevada Gold Mines joint venture. This royalty, which we acquired for $6 and a quarter million, is in addition to the existing 1.5% NSR and 3.5% NPI royalties that we already hold. Barrick continues to expect that Ren will achieve first production by year-end and will ramp up to its full 140,000 ounces per year production run rate by 2027 year-end. The second transaction was announced subsequent to the end of the second quarter on July 13. We acquired two Nevada royalties in that transaction, a 2% NSR on the Sterling property operated by AngloGold Ashanti, located south of its Arthur project, previously known as Expanded Silicon, and a 0.5% NSR on portions of Granite Creek operated by i-80 Gold.

This Granite Creek royalty covers portions of the Felix and Blue Bell pits. Neither Felix nor Blue Bell are included in the proposed mine sequence over the initially envisaged eight and a half year mine life at the Granite Creek open pit as per the March 2025 43-101 PEA study. These deposits do represent longer-term optionality to us. I'll now pass the call to Jackie Przybylowski to review our guidance and key catalysts underpinning our peer-leading organic growth.