Buy Rating Affirmed for Gold Royalty Corp on Strong Q1 Performance and Bullish Precious Metals Outlook

Analyst Heiko Ihle from H.C. Wainwright reiterated a Buy rating on Gold Royalty (GROY – Research Report) and keeping the price target at $5.75.

Heiko Ihle has given his Buy rating due to a combination of factors including Gold Royalty Corp’s strong first quarter performance and the positive outlook on precious metal prices. In the first quarter of 2024, Gold Royalty Corp reported a significant year-over-year revenue increase of 112%, driven by its first full quarter of pre-production gold payments and contributions from land agreement proceeds. With the anticipated ramp-up of the Côté Gold Mine and the continued strength in spot prices, the company is expected to maintain its growth trajectory and meet its annual guidance.
Furthermore, Ihle’s revised precious metal price deck reflects an upward adjustment in gold and silver prices due to macroeconomic factors. These factors include ongoing inflation, investment in safe-haven assets, and recessionary concerns. The new price deck remains conservative compared to current spot pricing, yet indicates a favorable outlook for precious metals. Ihle maintains a positive view on Gold Royalty’s assets, taking into account conservative discount rates and the company’s strategic transactions such as the Ely deal, which contribute to an overall robust valuation and support the Buy rating with a price target of $5.75.

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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.