David Garofalo joins us now.
David is the chairman and CEO of Gold Royalty Corp right off the bell podium, ringing about the closing bell.
It's nice to have you here.
Congratulations.
Oh, thanks for having me on.
You're celebrating 5 years since listing.
Talk to me first and foremost.
What has changed about the company over the last 5 years?
Oh, lots.
I mean, we started as a $200 million market cap when we.
Back in March of 2021.
Today we're a billion dollars market cap.
We've increased our portfolio 14fold from 18 precious metal royalties when we IPO to over 250 royalties today, and we have exponential growth in revenue over the next 5 years from that royalty portfolio.
David, I got to be honest, I, I, I was yesterday years old when I learned the phrase nets. return.
Talk to me about what NSR actually means.
What does the model capture without cost pressure from diesel and labor?
Yes, so basically we get paid a percentage of the gross, a fixed percentage at each of the mine sites that we own a royalty on, and we have over 250 royalties in the portfolio.
So that means we don't have to worry about costs at the mine site.
We're completely insulated from cost inflation.
It's basically the music royalty.
We get a percentage of the top line.
Wow.
How valuable is the geopolitical safety right now, given 80% of your portfolio, if I'm not mistaken, between the US and your home country of Canada?
It's a big deal because at the end of the day, a royalty company is a collection of contracts unless there's.
A judicial framework around the enforceability of those contracts, they're not worth anything.
So it's important to be in those types of jurisdictions where they have a judicial framework.
But more importantly, in Nevada, Quebec, Ontario, where 80% of our royalties are, those are some of the most geologically prospective gold districts in the world.
Your guidance points to 500% volume growth by the year 2030.
What is driving those projections and what gives you most confidence and not just where the company is today, where you most hope it is tomorrow?
Well, we have 7 cash flowing royalties.
We have 14 in various stages of construction.
But more importantly, I have royalties on 3 of the 5 biggest producing gold mines in North America.
So these are generational foundational assets that will be producing royalties for decades to come, long after I'm gone.
And that's the important element of our story.
Yes, we have a lot of growth.
We have a lot of optionality with over 250 royalties, but having that foundational element provides us a certainty that we'll be generating cash flow and ultimately dividends for our shareholders.
Down the road, yes, it's still relatively all things considered a higher interest rate world.
How do you stay disciplined in the general merger and acquisitions conversation?
Where are you still finding value out there for the firm?
Well, look, now that the capital markets have opened up to mining companies, in particular junior mining companies that are conducting the necessary exploration to replace depleting reserves in the industry, that means we're going to More opportunities to provide capital to those explorers, developers, and operators to expand and optimize their minds, and that's how we get royalties.
Before I let you go, central banks are buying gold.
Investors are looking for the hedges despite all the uncertainty and geopolitical issues.
Are we still in a structural bull market, still cyclical?
How do you think about the big picture operations relative to your work?
Well, you hit the nail.
The central banks don't even trust the value of their fiat currencies that they're printing with reckless abandon.
And so they're diversifying out of sovereign debt as quickly as possible into gold because that's the one currency that can't be printed, and that's why gold's gone from $35 an ounce to $5600 an ounce over the last 50 years.
Dave Garofalo, chairman, CEO of Gold Royalty Corp, congratulations.
Well done, ringing the bell today.
Thanks for joining us.
Nice to have you.
