Gold Royalty Corp 6-K, filed May 11, 2023

Gold Royalty Corp. (GROY)

6-K 2023-05-11 For: 2023-05-11

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Added on July 04, 2026

About this 6-K

Gold Royalty Corp filed this 6-K on May 11, 2023.

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	GOLD ROYALTY CORP.

Date: May 11, 2023	By:	/s/ Andrew Gubbels
	Name:	Andrew Gubbels
	Title:	Chief Financial Officer


Exhibit		Description of Exhibit

99.1		Condensed interim consolidated financial statements for the three months ended March 31, 2023
99.2		Management’s discussion and analysis for the three months ended March 31, 2023
99.3		Certification of Chief Executive Officer
99.4		Certification of Chief Financial Officer


		As at March 31, 2023			As at December 31, 2022
	Notes	($)			($)
Assets
Current assets
Cash and cash equivalents			6,799			5,847
Short-term investments	3		3,000			3,840
Accounts receivable			511			648
Prepaids and other receivables			2,102			1,201
			12,412			11,536
Non-current assets
Royalty and other mineral interests	4		666,211			667,504
Long-term investment	5		1,587			1,587
Investment in associate	6		1,335			1,459
Other long-term assets			303			324
			669,436			670,874

			681,848			682,410

Liabilities
Current Liabilities
Accounts payable and accrued liabilities			4,223			3,691
Government loan			44			44
Derivative liabilities	8		12			242
Dividend payable			1,414			—
			5,693			3,977
Non-current liabilities
Non-current portion of lease obligation			228			246
Bank loan	7		9,888			9,448
Deferred income tax liability			135,000			135,088
			145,116			144,782

			150,809			148,759

Equity
Issued capital	9		552,105			551,074
Share Issuance Obligations	9		29			—
Reserves	9		23,270			22,420
Accumulated deficit			(44,694	)		(40,168	)
Accumulated other comprehensive income			329			325
			531,039			533,651
			681,848			682,410


		For the three months ended
	Notes	March 31, 2023	March 31, 2022
		($)	($)
Revenue
Royalty and option income	10	767	638
Cost of sales
Depletion	4	(117)	(488)
Gross profit		650	150

Expenses
Consulting fees		(49)	(487)
Depreciation		(21)	(15)
Management and directors’ fees	12	(448)	(345)
Salaries, wages and benefits		(210)	(250)
Investor communications and marketing expenses		(230)	(337)
Office and technology expenses		(227)	(178)
Transfer agent and regulatory fees		(151)	(229)
Insurance fees		(394)	(527)
Professional fees		(796)	(1,365)
Share-based compensation	9	(880)	(1,146)
Mineral interest maintenance expenses		(18)	(47)
Share of loss in associate	6	(128)	(108)
Dilution gain in associate	6	—	80
Impairment of royalty	4	—	(3,821)
Operating loss for the period		(2,902)	(8,625)

Other items
Change in fair value of derivative liabilities	8	230	1,798
Change in fair value of short-term investments	3	58	3,875
Foreign exchange gain / (loss)		(48)	13
Interest expense		(294)	(105)
Loss on Loan modification	7	(249)	—
Other income		34	4
Net loss before income taxes for the period		(3,171)	(3,040)
Tax recovery		88	652
Net loss after income taxes for the period		(3,083)	(2,388)

Other comprehensive income
Item that may be reclassified subsequently to net income:
Foreign currency translation differences		4	5
Total comprehensive loss for the period		(3,079)	(2,383)

Net loss per share, basic and diluted		(0.02)	(0.02)

Weighted average number of common shares outstanding, basic and diluted		144,289,573	134,019,359


	Notes	Number of Common Shares	Issued Capital ($)	Share Issuance Obligations ($)	Reserves ($)	Accumulated Deficit ($)	Accumulated Other Comprehensive Income ($)	Total ($)
Balance at December 31, 2021		133,927,501	527,132	—	20,611	(21,988)	441	526,196
Common shares issued to acquire royalties		207,449	832	—	—	—	—	832
Share issuance obligation to acquire royalties		—	—	201	—	—	—	201
Common shares issued for marketing services		35,435	135	—	—	—	—	135
Common shares issued upon exercise of common share purchase warrants		82,373	351	—	(161)	—	—	190
Share-based compensation - performance based restricted shares			116	—	—	—	—	116
Share-based compensation - share options		—	—	—	617	—	—	617
Share-based compensation - restricted share units		—	—	—	111	—	—	111
Net loss for the period		—	—	—	—	(2,388)	5	(2,383)
Dividends		—	—	—	—	(1,342)	—	(1,342)
Balance at March 31, 2022		134,252,758	528,566	201	21,178	(25,718)	446	524,673

Balance at December 31, 2022		143,913,069	551,074	—	22,420	(40,168)	325	533,651
Common shares issued upon vesting of restricted share units	9	53,620	—	—	—	—	—	—
Share-based compensation - share options	9	—	—	—	528	—	—	528
Share-based compensation - restricted share units	9	—	—	—	322	—	—	322
At-the-Market offering:
Common shares issued to for cash	9	415,728	1,058	—	—	—	—	1,058
Agent fees	9	—	(27)	—	—	—	—	(27)
Net loss for the period		—	—	—	—	(3,083)	4	(3,079)
Dividends - DRIP	9	—	—	29	—	(29)	—	—
Dividends	9	—	—	—	—	(1,414)	—	(1,414)
Balance at March 31, 2023		144,382,417	552,105	29	23,270	(44,694)	329	531,039


	For the three months ended
	March 31
	2023			2022
	($)			($)
Operating activities
Net loss for the period		(3,083	)		(2,388	)
Items not involving cash:
Depreciation		21			15
Depletion		117			488
Interest expense		294			105
Loan modification loss		249			—
Other income		(13	)		(4	)
Share-based compensation		880			1,146
Change in fair value of short-term investments		(58	)		(3,875	)
Change in fair value of derivative liabilities		(230	)		(1,798	)
Impairment of royalty		—			3,821
Share of loss in associate		128			108
Dilution gain in associate		—			(80	)
Deferred tax recovery		(88	)		(652	)
Unrealized foreign exchange gain		—			(63	)
Operating cash flows before movements in working capital		(1,783	)		(3,177	)
Net changes in non-cash working capital items:
Accounts receivables		137			40
Prepaids and other receivables		(948	)		506
Accounts payable and accrued liabilities		533			(4,985	)
Cash used in operating activities		(2,061	)		(7,616	)

Investing activities
Restricted cash released		—			609
Investment in royalties and other mineral interests		(27	)		(15,108	)
Proceeds on disposition of marketable securities		963			9,562
Investment in associate		—			(409	)
Proceeds from option agreements		1,138			1,035
Purchase of equipment		—			(28	)
Dividend received		24			—
Interest received		1			1
Cash provided by / (used in) investing activities		2,099			(4,338	)

Financing activities
Proceeds from At-the-Market offering, net of agents’ fees and issuance costs		1,031			—
Proceeds from exercise of common share purchase warrants		—			440
Net proceeds from bank loan		26			9,551
Interest paid		(120	)		(59	)
Payment of lease obligations		(23	)		(14	)
Dividends		—			(1,342	)
Cash provided by financing activities		914			8,576

Effect of exchange rate changes on cash		—			7

Net increase (decrease) in cash		952			(3,371	)
Cash and cash equivalents
Beginning of period		5,847			13,826
End of period		6,799			10,455


	($)
Balance at December 31, 2021		25,057
Additions		1,013
Disposition		(22,190	)
Fair value change due to price change		(680	)
Fair value change due to foreign exchange		640
Balance at December 31, 2022		3,840
Additions		65
Disposition		(963	)
Fair value change due to price change		(22	)
Fair value change due to foreign exchange		80
Balance at March 31, 2023		3,000


	($)
Balance at December 31, 2021		630,182
Additions		44,758
Disposition		(86	)
Depletion		(1,685	)
Option payments received		(1,844	)
Impairment		(3,821	)
Balance at December 31, 2022		667,504
Additions		349
Disposition		(322	)
Depletion		(117	)
Option payments received		(1,203	)
Balance at March 31, 2023		666,211


	Cost						Accumulated Depletion									Others									Carrying Amount
	December 31, 2022		Additions		March 31, 2023		December 31, 2022			Depletion			March 31, 2023			Disposition			Option payments			Total			March 31, 2023
	($)		($)		($)		($)			($)			($)						($)			($)			($)
Beaufor		1,235		—		1,235		—			—			—			—			—			—			1,235
Borden		3,889		—		3,889		(586	)		(30	)		(616	)		—			—			—			3,273
Cheechoo		12,640		—		12,640		—			—			—			—			—			—			12,640
Côté		16,132		—		16,132		—			—			—			—			—			—			16,132
Croinor		5,779		—		5,779		—			—			—			—			—			—			5,779
Fenelon		41,553		—		41,553		—			—			—			—			—			—			41,553
Gold Rock		3,275		—		3,275		—			—			—			—			—			—			3,275
Granite Creek		21,768		—		21,768		—			—			—			—			—			—			21,768
Hog Ranch		12,879		—		12,879		—			—			—			—			—			—			12,879
Jerritt Canyon		8,921		—		8,921		(549	)		(61	)		(610	)		—			—			—			8,311
Lincoln Hill		5,421		—		5,421		—			—			—			—			—			—			5,421
Malartic		318,393		—		318,393		(817	)		(9	)		(826	)		—			—			—			317,567
Marigold		1,261		—		1,261		(84	)		—			(84	)		—			—			—			1,177
McKenzie Break		4,301		—		4,301		—			—			—			—			—			—			4,301
Railroad-Pinion		3,032		—		3,032		—			—			—			—			—			—			3,032
REN (Net Profit Interest)		21,017		—		21,017		—			—			—			—			—			—			21,017
REN (Net Smelter Return)		42,921		—		42,921		—			—			—			—			—			—			42,921
São Jorge		2,274		—		2,274		—			—			—			—			—			—			2,274
Titiribi		3,010		—		3,010		—			—			—			—			—			—			3,010
Whistler		2,575		—		2,575		—			—			—			—			—			—			2,575
Yellowknife		1,870		—		1,870		—			—			—			—			—			—			1,870
Others		135,494		349		135,843		(100	)		(17	)		(117	)		(322	)		(1,203	)		(1,525	)		134,201
Total (1)		669,640		349		669,989		(2,136	)		(117	)		(2,253	)		(322	)		(1,203	)		(1,525	)		666,211


Asset	Interest	Jurisdiction
Producing
Borden Mine (1)	0.5% NSR	Ontario, Canada
Canadian Malartic Property (open pit) (1)	2.0% – 3.0% NSR	Québec, Canada
Jerritt Canyon Mine	0.5% NSR	Nevada, USA
Jerritt Canyon Mine (Per Ton Royalty)	$0.15 – $0.40 Per Ton Royalty	Nevada, USA
Marigold Mine (1)	0.75% NSR	Nevada, USA
Granite Creek	10% NPI	Nevada, USA
Isabella Pearl Mine (1)	0.375% Gross Revenue Royalty	Nevada, USA
Key Developing
Beaufor Mine	1.0% NSR	Québec, Canada
Beaufor-Beacon Mill (Per Tonne Royalty (“PTR”))	C$1.25 – C$3.75 PTR	Québec, Canada
Côté Gold Project (1)	0.75% NSR	Ontario, Canada
Fenelon Gold Property	2.0% NSR	Québec, Canada
Gold Rock Project	0.5% NSR	Nevada, USA
Hog Ranch Project	2.25% NSR	Nevada, USA
La Mina Project	2.0% NSR	Colombia
Lincoln Hill Project	2.0% NSR	Nevada, USA
Canadian Malartic - Odyssey Project (1) (underground)	3.0% NSR	Québec, Canada
Railroad-Pinion Project (1)	0.44% NSR	Nevada, USA
REN - Carlin Mines	1.5% NSR	Nevada, USA
REN - Carlin Mines (NPI)	3.5% NPI	Nevada, USA
São Jorge Project	1.0% NSR	Brazil
Sleeper Project	0.33% NSR	Nevada, USA


	($)
Balance at December 31, 2021		1,217
Addition		409
Share of loss in associate		(152	)
Dilution gain		100
Translation gain		(115	)
Balance at December 31, 2022		1,459
Share of loss in associate		(128	)
Translation gain		4
Balance at March 31, 2023		1,335


	($)
Balance at December 31, 2021		—
Additional draw-down		10,000
Less: transaction costs and fees		(597	)
Modification adjustment		(316	)
Interest expense		896
Interest paid		(535	)
Balance at December 31, 2022		9,448
Additional draw-down		287
Less: transaction costs and fees		(261	)
Modification adjustment		249
Interest expense		289
Interest paid		(124	)
Balance at March 31, 2023		9,888


	($)
Balance at December 31, 2021		5,027
Repurchase of Abitibi call options		(8	)
Change in fair value during the period		(4,777	)
Balance at December 31, 2022		242
Change in fair value during the period		(230	)
Balance at March 31, 2023		12


	Number of RSUs	Weighted Average Grant Price ($)
Balance at December 31, 2021	—	—
Granted	771,552	3.25
Forfeited	(2,005)	4.92
Balance at December 31, 2022	769,547	3.25
Granted	50,497	2.18
Vested	(53,620)	4.89
Forfeited	(451)	2.81
Balance at March 31, 2023	765,973	3.06


	Reserves
	Warrants			Share Based Awards		Total
	($)			($)		($)
Balance at December 31, 2021		8,975			11,636		20,611
Exercise of Ely Warrants		(683	)		—		(683	)
Share-based compensation - share options		—			1,950		1,950
Share-based compensation - RSUs		—			542		542
Balance at December 31, 2022		8,292			14,128		22,420
Share-based compensation - share options		—			528		528
Share-based compensation - RSUs		—			322		322
Balance at March 31, 2023		8,292			14,978		23,270


Risk-free interest rate	4.55	%
Expected life (years)	1.37
Expected volatility	41.83	%
Expected dividend yield	1.72	%
Estimated forfeiture rate	13.33	%


	Options Outstanding						Options Exercisable
Exercise Price ($)	Number of Options Outstanding		Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Life (years)		Number of Options exercisable		Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Life (years)
1.00 to 1.99		2,450,929		1.38		1.72		2,450,929		1.38		1.72
2.00 to 2.99		2,373,708		2.43		4.18		641,264		2.43		4.18
3.00 to 3.99		17,514		3.06		4.14		8,757		3.06		4.14
4.00 to 4.99		894,517		4.66		3.60		792,138		4.66		3.60
5.00 and above		2,505,000		5.00		2.94		2,505,000		5.00		2.94
		8,241,668		3.18		3.42		6,398,088		3.32		3.07


	Payments Due by Period
(in thousands of dollars)	Total		Less than 1 year		1 – 3 years		4 – 5 years		After 5 years
Lease obligation	$	284	$	56	$	208	$	20	$	—
Revolving credit facility	$	9,888		—		9,888		—		—
Government loan	$	44		44		—		—		—
Total	$	10,216	$	100	$	10,096	$	20	$	—


	Number of options			Weighted Average Exercise Price ($)
Balance at December 31, 2021		5,514,245			3.32
Granted		2,848,623			2.98
Forfeited		(126,200	)		4.28
Balance at December 31, 2022		8,236,668			3.18
Granted		5,000			2.33
Balance at March 31, 2023		8,241,668			3.18


	For the three months ended March 31
	2023		2022
	($)		($)
Royalty and option income were generated from:
Canadian Malartic		18		64
Borden		63		—
Jerritt Canyon		120		181
Others		566		393
		767		638


	March 31, 2023	December 31, 2022
	($)	($)
Non-current assets by geographical region as of:
Canada	453,686	453,801
USA	215,750	217,073
Total	669,436	670,874


	As at March 31, 2023	As at December 31, 2022
(in thousands of dollars)	($)	($)
Cash and cash equivalents	6,799	5,847
Short-term investments	3,000	3,840
Working capital (current assets less current liabilities)	6,719	7,559
Total assets	681,848	682,410
Total current liabilities	5,693	3,977
Total non-current liabilities	145,116	144,782
Shareholders’ equity	531,039	533,651


For three months ended:	Units	Average Gold Price
March 31, 2022	(US$/oz)	1,877
March 31, 2023	(US$/oz)	1,889


	Royalty and option income	Net loss	Net loss per share, basic and diluted	Dividends declared per share
(in thousands of dollars, except per share amounts)	($)	($)	($)	($)
June 30, 2021	—	(3,035)	(0.07)	—
September 30, 2021	192	(9,215)	(0.17)	—
December 31, 2021	533	(6,841)	(0.06)	—
March 31, 2022	638	(2,388)	(0.02)	0.01
June 30, 2022	1,907	(3,438)	(0.03)	0.01
September 30, 2022	866	(4,677)	(0.03)	0.01
December 31, 2022	582	(2,204)	(0.02)	0.01
March 31, 2023	767	(3,083)	(0.02)	0.01


Date: May 11, 2023

/s/ David Garofalo
David Garofalo
Chief Executive Officer