The company expects to add to its $10.5 million of cash and equivalents as its revenue profile ramps-up this year from a 1% net smelter returns (NSR) royalty on Monarch Mining's Beaufor development project and a 2-3% NSR on the Canadian Malartic mine, both in Quebec, Canada.
The company reported record revenue of $600,000 in the quarter to March 31, and despite posting a net loss of $2.4 million, declared a 1c per share dividend which will see it distribute $1.3 million to shareholders.
Commenting on the company's failed hostile bid to acquire Elemental Royalties, Garofalo said he underestimated how tight the target's shareholders were. "I underestimated how tightly held the company is and what it would take to break into that cabal of shareholders. We had to walk away as we didn't get access to the data we needed to change our bid," he said.
Although this was a setback, Gold Royalty picked-up royalties on Beaufor and IAMGOLD's Cote mine development in March, and that consolidation in the royalty space still needs to happen.
"There needs to be rationalisation. We need to create a mid-tier player with a $5 billion market cap that is big enough to appeal to institutions and small enough to show meaningful growth," said Garofalo.
Shares in Gold Royalty are trading at $3.11, valuing the company at $418 million.
