Gold Royalty (GROY – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Heiko Ihle from H.C. Wainwright reiterated a Buy rating on the stock and has a $5.75 price target.
Heiko Ihle’s rating is based on a combination of factors related to Gold Royalty Corp’s recent developments and financial performance. The recent first gold pour at Côté Gold Mine, where Gold Royalty holds a 0.75% net smelter return royalty, marks a significant milestone. It is expected that the mine will contribute positively to the company’s future growth, especially as production ramps up with the anticipation of reaching commercial production by the third quarter of 2024. Despite the unpredictability of the mine’s output, Ihle views Côté as a key driver for growth, likely to increase Gold Royalty’s revenue streams once it reaches full production capacity.
Moreover, Ihle has taken into account Gold Royalty’s financial results for the fiscal year of 2023, including the reported revenue and the decrease in net loss attributed to impairments of royalties. The company’s reduction in cash operating expenditures, combined with the 4% decrease in gross profit year-over-year, also factors into the analysis. Looking forward, the company has set guidance for the sale of 5,000 – 5,600 gold equivalent ounces for 2024, which is anticipated to yield significant revenue at current gold prices. The expectation of stable cash operating expenses and the forecast of positive operating cash flow in 2024 reinforces Ihle’s Buy rating for Gold Royalty’s stock, suggesting confidence in the company’s capability to enhance profitability in the near future.
In another report released on April 1, Haywood also maintained a Buy rating on the stock with a $3.50 price target.
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Gold Royalty (GROY) Company Description:
Gold Royalty Corp is a precious metals-focused royalty and streaming company. It offers creative financing solutions to the metals and mining industry. The company’s mission is to acquire royalties, streams and similar interests at varying stages of the mine life cycle to build a balanced portfolio offering near, medium and longer-term attractive returns for investors.
