Gold Royalty Corp. Mining Forum Americas 2026

are a little bit talking about the macro environment we find ourselves in. Quite often, as we see more generalist investors come into the space, where to from here for gold? We have seen interest rates start to increase, particularly long-dated treasuries, but I would argue that's really a symptom of underlying increasing inflation, which is actually infecting the supply chains for many of the operating companies. I do think it bears repeating that the royalty model in this point of the cycle is superior to producers. Producers are, of course, facing significant reserve constraints. They're cannibalizing each other to replace depleting production levels. They're not really providing a leverage proposition that investors are looking for because their share count is increasing while their production and reserve profiles are effectively static.

The other thing that we're seeing is, of course, significant cost pressure, particularly in the last several months when we've seen a big increase in oil prices, which has infected the supply chain really across all inputs within operating companies and at the mine site. Also on a lagging basis, given that we've seen record metal prices across the entire metals complex, not just in gold, but we're seeing in copper and other metals, we're going to see a lagging impact on labor costs. We're seeing much more strike action in terms of the collective bargaining process in a lot of operations, whether it's base metal or precious metal. Inevitably, that will lead to cost inflation. When you look at costs at the mine site, the majority of costs are coming from labor and energy.

Of course, we've seen significant inflation in energy costs in the last several months, and that, coupled with cost inflation, which labor will deliver over the coming year or two, will result in significant cost inflation and erosion in the multiple and margin expansion that you're looking for from operating companies. They're not going to be providing the leverage proposition that investors are looking for as gold prices increase over the next little while. Gold prices will continue to increase because, as I said, the underlying factors that are driving the gold price higher, which is the debasement of fiat currencies, is not going away. As I said, real interest rates are effectively flat or declining because even though nominal rates are going up, inflation is accelerating at an increasing rate, and that will continue to drive capital into the sector.

Clearly, fiat currencies are being debased. We're seeing money supply continue to increase on an exponential basis, and that's really been the value proposition of gold over the last several years that's driven it to this all-time highs. I think really the question you have to ask yourself when you're investing in the gold sector as a generalist is where are you going to get optimum leverage through the gold price and leverage the exploration success of the underlying operators in which we own royalties. That's provided in the royalty model in which we think is going to really deliver outsized returns in a rising gold price environment with significant underlying inflation in the sector. Where does Gold Royalty fit in that type of context? We are providing peer-leading growth in the sector.

A six-fold increase or about a 500% increase over the next four years in our underlying gold equivalent production from assets that are effectively built and ramping up. Very low construction risk. We have over 260 royalties. Certainly, we have a lot of early-stage optionality with 10 royalties that are already cash flowing, and by the end of the decade, 20 within our portfolio delivering that cash flow in gold equivalent production growth. We are providing low risk in low-risk jurisdictions growth within the sector with unmitigated leverage of the gold price because all of our royalties are completely bought and paid for. We don't have to put another dime into them to deliver that peer-leading growth, which I'll get into in a little bit more detail over the course of the presentation.

The other thing that I would point out is we've never been healthier from a balance sheet perspective. We're completely debt free. We are and have been generating free cash flow for the last two years, and that cash flow will increase exponentially over the next several years as we deliver that peer-leading growth. With a $150 million line of credit available, completely available, $50 million of cash on the balance sheet on a pro forma basis with our in-the-money warrants, which will be maturing over the coming months. We have about $200 million of dry powder to continue to invest in new growth opportunities, which will deliver accretion on a cash flow per share basis because we don't have to go back to the equity markets to do acquisitions given the scale of our balance sheet currently.

This gives you a historical perspective of how we've grown out the portfolio, and it's important to point out that we do have multiple platforms for growth. We've gone from a standing start a little over five years ago, no revenue, 18 royalties, almost exclusively on the portfolio of our former parent company, GoldMining Inc. Through a succession of acquisitions, roll-ups over the course of 2021 of three of our peers that delivered 150 additional royalties and vastly diversified our portfolio. We've been systematically using the treasury from our IPO to pick up individual royalty acquisitions that deliver cash flow per share accretion in the immediate term to supplement the significant optionality and growth we already had embedded in our portfolio. Today, we stand at over 260 royalties, and again, all of those royalties are completely bought and paid for. We have no capital calls.

We have no installment payments. We have no step downs. We really have unmitigated growth in our portfolio over the next several years. Again, really what's delivered that growth is the fact that we have diversity in terms of how we grow. We have four distinct platforms of growth, and clearly when we had the multiple to do so, we used the arbitrage available to us back in 2021 to vastly diverse our portfolio through the roll-up of three of our peer companies. We used the M&A when we had the currency to do so. We haven't had the currency since then. As a result, we've been extremely disciplined and focused on cash flowing and near cash flowing royalties that we could use our treasury on to deliver cash flow and net asset value per share accretion in the short term.

We are disciplined in terms of focusing on distinct aspects of our platforms for growth to deliver growth when we have the ability to do so. In the last several years, we have been focusing on individual royalty acquisitions, third-party royalty acquisitions, and also done some project financing, as we did with Eco Oro Minerals Borborema Mine, quite successfully to deliver significant cash flow growth in the short term. Having those four distinct platforms for growth has been very important. The other element of it is, yes, we are doing early-stage royalty acquisitions, but we are doing it at no cost to our shareholders because we have a royalty generator model where we stake exploration claims around existing mines and deposits. We farm those properties out to our neighbors, take royalties back in return at no entry cost for our shareholders.

The prospect for infinite rates of return is really what those early-stage options deliver, recognizing that they have a low success ratio, which is why we do not want to expend precious treasury in order to add those early-stage royalties into the portfolio. Where that leaves us today in terms of our portfolio in terms of metal exposure, it is over 90% gold in terms of the net asset value of our underlying portfolio. Interestingly, in the short term, because of the Vares acquisition, Pedra Branca, and the Cozamin royalties, about 30% of our revenue in the short term is actually coming from copper, which is obviously experiencing all-time highs.

We have significant leverage to the copper price in the next couple of years while we are waiting for some of our significant royalties on the gold side to kick in significant growth over the next several years, namely from Odyssey, the underground extension of Canadian Malartic, Ren, the underground extension of Gold Strike, and Côté, which is now ramping up to expanded production over the course of the next several years. The other thing I would point out is we have the lowest political risk exposure within our portfolio across the entire royalty universe, with over 80% of our royalty portfolio by number and value focused on Nevada, Quebec, and Ontario, which perennially is rated among the five best jurisdictions in which to operate for mineral potential, low political risk, and low regulatory risk by the Fraser Institute in Canada.

Peer-leading growth, certainly up among the leaders this year, over 60% growth in gold equivalent ounces this year alone. Just in the first half of this year, we saw a doubling of our revenue in the first six months relative to where we were last year. That growth is happening in real time. We are in escape velocity right now. We are generating strong free cash flow. That treasury balance is growing quarter in, quarter out from this portfolio that we have been meaningfully investing in over the last several years. We are getting that significant return on that capital investment that we have been making systematically since our inception in 2021. What that means over the next several years is 500% growth in gold equivalent ounces. That is a sixfold increase in our gold equivalent production over the next several years from some of the biggest mines within North America.

I would hasten to add that growth is coming from assets that are effectively built out. 70% of our growth is coming from assets that are already constructed. Another 20% of that growth is coming from satellite deposits to existing mines. In other words, the infrastructure is already in place and those satellite deposits are systematically being incorporated into the mine plan of those mines. That is delivering that sixfold or 500% growth in gold equivalent ounces over the next little while. So very low risk from many of the best capitalized operators in the sector. When you look at our gold equivalent ounces on a consensus basis, not that different than what we had in terms of our internal estimates and the guidance we provided on a one-year and five-year basis.

You can see that by the end of the decade, we are approaching 30,000 gold equivalent ounces of production. When you layer on various gold price assumptions on top of that, you are looking at at least $150 million of revenue by the end of the decade against $7 million-$8 million at cash G&A. A very scalable business, which means that we are going to be generating sustainably over $100 million of free after-tax cash flow per annum by the end of the decade from an existing portfolio that is completely bought and paid for. That portfolio is not underpinned by a collection of small-scale assets.