Gold Royalty posted $17.3M in first-half revenue, up 116% YoY, and reaffirmed 7,500-9,300 GEO guidance. CEO David Garofalo highlighted the royalty model's insulation from cost inflation. Vareš commercial production expected by end of September.
Gold Royalty Corp posted record first-half revenue and adjusted EBITDA, while holding its 2026 production guidance of 7,500 to 9,300 gold equivalent ounces.
For the six months ended June 30, total revenue, land agreement proceeds and interest reached $17.3 million, up 116% from a year earlier. Gold equivalent ounces, or GEOs, rose more than 40% to 3,677. Adjusted EBITDA jumped 212% to $12.6 million, Chair and CEO David Garofalo said during the company's second-quarter earnings call.
Second-quarter revenue was $7.9 million, representing 1,757 GEOs. Adjusted EBITDA came in at $5.6 million, compared with $2.4 million in the same period of 2025, according to Chief Financial Officer Andrew Gubbels.
Balance sheet in good shape
Gubbels said Gold Royalty ended the quarter with more than $11.3 million in cash, no debt and a fully undrawn $150 million credit facility. The company expects its portfolio to generate consistent positive free cash flow and intends to maintain a modest cash balance while directing additional operating cash toward growth opportunities when appropriate, he said.
Gold Royalty is also considering a capital‑return policy for its board, Gubbels added. Any such policy would be announced later.
Guidance unchanged, volume weighted to H2
Gold Royalty maintained its 2026 guidance of 7,500 to 9,300 GEOs. Vice President of Capital Markets and Sustainability Jackie Przybylowski said first‑half production represented 44% of the midpoint of that range, above the company's expected 40% first‑half weighting.
The company expects volumes to be more heavily weighted to the second half as the Vareš and County Line operations ramp toward full production rates. Gold Royalty also cited potential production growth at Borden, Côté and Pedra Branca. Przybylowski said processing and sale of stockpiled material from the Canadian Malartic Barnat pit could provide additional upside, though it was not included in guidance.
When asked whether the range could be narrowed after the third quarter, Przybylowski said the company would consider it but did not guarantee an update. She identified the ramp‑up at DPM Metals' Vareš mine and the progress at CoreX's Pedra Branca operation as important factors to monitor.
Gold Royalty expects its production to rise to between 28,000 and 34,000 GEOs by 2030, or about six times its actual 2025 result, from assets already in its portfolio, Przybylowski said.
Royalty model shields from cost inflation
Garofalo emphasized the company's focus on net smelter return, or NSR, royalties, which are generally based on revenue rather than mine‑site operating costs. The royalty model leaves Gold Royalty insulated from many forms of operating cost inflation borne by mine operators, he said.
Acquisition strategy remains selective
President John Griffith said Gold Royalty continues to pursue acquisitions but remains selective amid robust competition for larger royalty transactions, particularly those with near‑term cash flow, favorable jurisdictions and established operators.
In June, the company acquired an additional 0.1875% NSR royalty on the REN project for $6.25 million. The project is operated by Barrick and jointly owned by Barrick and Newmont through the Nevada Gold Mines joint venture. Gold Royalty already held a 1.5% NSR royalty and a 3.5% net profits interest royalty on REN. Barrick expects REN to reach first production by the end of 2026 and ramp to a production rate of 140,000 ounces annually by the end of 2027, Griffith said.
Subsequent to quarter‑end, Gold Royalty acquired two Nevada royalties: a 2% NSR royalty on AngloGold Ashanti‑operated Sterling and a 0.5% NSR royalty on portions of i‑80 Gold‑operated Granite Creek. Griffith said the Granite Creek royalty covers portions of the Felix and Blue Bell pits, which are not included in the initially envisioned eight‑and‑a‑half‑year mine plan but represent longer‑term optionality.
Upcoming catalysts
The company highlighted several expected second‑half developments: DPM Metals' planned achievement of commercial production at Vareš by the end of September and full production by year‑end; first production at REN by year‑end; a third‑quarter study on doubling plant capacity at Aura Minerals' Borborema project; a third‑quarter feasibility study for i‑80 Gold's Granite Creek underground project; and fourth‑quarter studies related to First Majestic Silver's Jerritt Canyon restart and Canadian Malartic's Odyssey project.
Garofalo said the company will continue to prioritize accretive growth while maintaining discipline in capital allocation decisions.
Gold Royalty expects Vareš to reach commercial production by the end of September.
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