Q4 2024 Gold Royalty Corp Earnings Call
Speaker Change: Welcome to the Gold Royalty fourth quarter, 2024 results conference call. All participants will be in a listen only mode, should you meet the participants please see no conference specialist by pressing the start key followed by zero.
Speaker Change: After today's presentation there will be an opportunity to ask questions, so note today's event is being recorded.
Speaker Change: At this time I'd like to turn the four over to David Garofalo, Chairman and CEO Sir, please
David Garofalo: Thank you, operator. Good morning, ladies and gentlemen, and thank you for participating in today's call to review our fourth quarter of 2024 results, as well as our 2025 and five-year outlook.
David Garofalo: Please note, for those not currently on the webcast, a presentation accompanying this conference call is available on the presentation pages of our website.
David Garofalo: Some of the commentary today's call will include forward-looking statements and I would direct everyone to review slide two of the presentation which includes customary cautionary notes.
Speaker Change: Speaking alongside me on today's call will be Andrew Gubbels, Chief Financial Officer, and Jackie Przybylowski, Vice President, Capital Markets.
Speaker Change: 2024 was a year of significant growth for Gold Royalty and we are pleased to report record revenues and positive operating cash flows over the last 12 months.
Speaker Change: The strong results demonstrate the built-in growth of our portfolio and we continue to be excited about the outlook for 2025 where we expect to receive between 5,700 and 7,000 Geos.
Speaker Change: With more cash flowing assets, strong commodity prices and are stable and low cost structure, we expect to see growing revenues in cash flow this year.
Speaker Change: Our portfolio's growth profile was achieved through transformative value of creative acquisitions made over the company's four-year history.
Speaker Change: These acquisitions secure royalties on large-scale, long-life minds in the late development near-production and ramp-up stages.
Speaker Change: As several key development stage assets have been advanced and significantly de-risk over the past year, we are happy to provide our five-year outlook of 23,000 to 28,000 Geos in 2029 and over 360% increase from our 2024 Geos.
Speaker Change: We are excited about this longer-term growth outlook and we're confident the potential of our portfolio as we continue to see our operating partners deliver quarter over quarter [inaudible]
Speaker Change: Capital allocation will come into focus as we reach an inflection point to positive free cash flows in 2025, supported by strong production growth, employed by record gold prices.
Speaker Change: We will continue to emphasize discipline prioritizing debt repayment and a creative strategic growth
Speaker Change: With that, I will pass the call over to Andrew Gubbels to discuss the details of our fourth quarter results and outlook on slide four.
Thank you, David, and good morning, everyone.
of $3.8 million dollars. [inaudible]
Speaker Change: and an approximate 50% increase relative to the third quarter of 2024.
Speaker Change: This is primarily due to the continued ramp-up of the Kote Gold Mine, strong commodity prices,
Speaker Change: An initial revenues from the various copper stream during the quarter.
Speaker Change: We achieved a record $12.8 million in total revenue and an agreement proceeds an interest for the full year 2024.
A 146% increase relative to 2023.
Speaker Change: 2024 was her first full year achieving positive operating cash flows of $2.5 million as well as positive adjusted to Yvita of $4.8 million.
Speaker Change: Looking ahead, we expect to see further geo growth in 2025 to 5,700 to 7,000 Geo's forecasted for the year.
Speaker Change: Our guidance represents a midpoint increase of 16% relative to 2024.
Speaker Change: It's important to note that 2025 is a ramp-up year at three of our key assets, Kote, Bovarama, and Varys.
Speaker Change: While our other cash flowing assets are expected to deliver relatively consistent cash flows for the year.
We are also happy to present our inaugural five-year outlook.
We are forecasting 23,000 to 28,000 geos in 2029.
Speaker Change: This five-year outlook reflects continued contributions from our cornerstone producing assets as well as additional production from assets currently under development.
Speaker Change: including Iniko Eagles, Odyssey Underground, at Canadian Milartic, Nevada Gold Mine's Grand, Orla's South Braille Road, and I-80's Granite Creek amongst others.
Speaker Change: It also reflects near-term expansion growth amongst assets already in production.
Speaker Change: including Adriatic's Varus Mine, I Am Gold's Cote Mine, and Ores Borborama Project, which is expected to achieve first production by the end of the current quarter.
Speaker Change: Moving to slide five, we'll walk through the key inputs that drive our 2025 guidance range.
Speaker Change: At Borden, we hold a 0.5% NSR Royalty over the eastern portion of the mine.
Speaker Change: Every silver has published a PEA over the porcupine complex which outlined 124,000 ounces of expected gold production from Borden.
Speaker Change: Note that the current underground mind-workings are plunging further to the east with discoveries targeted future exploration plans fully covered by our royalty.
Speaker Change: At Borvarayma, where we hold a 2% NSR Royalty and provided a gold link loan or a Minerals forecast, $33,000 to $40,000 ounces of gold production this year.
Speaker Change: At Canadian Milartic, where we hold a 3% NSR over the north area of the Odyssey underground mine, an eastern portion of the Barnett pit, our guidance is based on relatively consistent year-over-year trivial production.
Speaker Change: Ah Cozman Capstone copper has provided guidance that is slightly up from 'twenty 'twenty four.
Speaker Change: We expect our attributable G OS to be relatively consistent year over year.
Speaker Change: Isabella Pearl is expected to conclude operations by mid 'twenty twenty-five and Fortitude gold is now focused on neighboring projects to supplement production.
Speaker Change: Of note is the nearby County line project, which Jacky will discuss later in the presentation.
Speaker Change: And finally barris wherever received initial revenues in Q4 2024 from a 100% copper stream.
Speaker Change: Adriatic metals has provided guidance of 625000 to 675000 tons mill in 2025 or.
Speaker Change: Our stream has fixed pay ability of 24, 5% and ongoing payments of 30% of the spot copper price.
Speaker Change: In addition to the cash flowing royalties in our guidance. We also expect to receive $1.6 million in land agreement proceeds, which equates to approximately 600 geos at the consensus 2025 gold price of 2000 and $668 per ounce. We also is.
Speaker Change: Soon a copper price of $4.23 per pound in developing our 2025 guidance.
Speaker Change: Now looking at our five year outlook on slide six we expect to see significant growth in G owes to 23000 to 28000 by 2029.
Speaker Change: Represents an over 360% increase from our 2024 geos.
Speaker Change: He assets ramping up to support this five year outlook include Odyssey, Paris, Kotte and Barbara Rimer.
Speaker Change: Both tariffs and Barbara Raber are well advance and funded to expand planned throughput at these operations.
Speaker Change: <unk> had a Nico eagle is preparing.
Speaker Change: Study expected in 2026, which contemplates a second shaft to increase underground production.
Speaker Change: Recall that agnico Eagle has indicated that Canadian mill Arctic.
Speaker Change: Is expected to shift to a fully underground operation by 2028.
Speaker Change: Note, we also hold royalties ranging from one 5% to 2% in the surrounding area, including the midway property to the east as well as properties to the south of the mine.
Speaker Change: Beyond our currently producing assets our operating partners have provided more clarity around the development and production timelines for Ren.
Speaker Change: Creek, South Railroad in County line, which are all expected to supplement our cash flow profile by 2029.
Speaker Change: This longer term outlook is based on assets already held in our portfolio and is based on public forecasts expected development timelines and other disclosures by the owners and operators of the properties underlying our interests.
Speaker Change: We assume a gold price of $2212 per ounce.
Speaker Change: Copper price of $4.24 per pound in developing our five year outlook.
Speaker Change: Lastly, I'd like to emphasize that as this outlook materializes, we expect our operating cost structure to remain relatively stable.
Speaker Change: This will result in higher future operating margins and increased.
Speaker Change: Cash reserves.
Speaker Change: As this occurs we will continue to review our capital allocation alternatives, which includes paying down our revolving credit facility to reduce our interest costs and boost free cash flows.
Speaker Change: But that said it well.
Speaker Change: The call the Jackie to discuss some recent portfolio updates in more detail.
Speaker Change: Thanks, Andrew turning to slide seven I'll spend a few minutes discussing the ramp up of the various in coking coal mines as well as progress towards initial production at bolt Brahma.
Speaker Change: This will be the first full year of production from Paris. The mine is expected to reach its full phase one run rate of 800000 tons per year in the second half.
Speaker Change: Beyond 2025, Adriatic metals recently completed an equity raise which now fully fund the planned throughput expansion to 1 million tons per year in 2026, and $1 3 million tons per year by 2027, 63% increase in throughput relative to the original mine plan.
Speaker Change: I am called expects cocaine will reach steady state nameplate throughput of 36000 tonnes per day in Q4 of 2025, and we could see further upside I'm gold has also outlined that the installation of a vertical could further extend kotex no capacity to 42000 tonnes per day.
Speaker Change: And if over in that or a minerals expects to achieve first gold pour later this month and commercial production is expected in the second half of the year.
Speaker Change: At full phase one run rate Paul brand novel process 2 million tons per year, representing an annualized production rate of 83000 ounces of gold per year.
Speaker Change: Or has also indicated that the permitting process towards moving the nearby highway is progressing well, which is expected to grow mineral reserves to over 2 million ounces of gold from 812000 ounces today.
Speaker Change: Our royalty covers both sides at the highway and any future reserve growth. The highway relocation and subsequent associated increased mineral reserves is also expected to support future expansion of the mining and milling operation in the medium to in the medium term to approximately three to three and a half million tons per year from the 2 million tons.
Speaker Change: For your in phase one.
Speaker Change: Moving to slide eight we had several other positive catalysts across the portfolio to highlight.
Speaker Change: Thank Nico Eagle's Odyssey mine, where gold royalty holds a 3% MSR over the northern portion of the mine ramping shaft development. Both continue on schedule and Andrew already mentioned, but it's worth reiterating that agnico Eagle will release, an internal study outlining potential second shaft in 2026.
Speaker Change: At Cosan than where we hold a 1% MSR royalty over the eastern portion of the mine.
Speaker Change: <unk> is expected to be relatively consistent year over year Capstone has provided guidance of 23000 to 26000 tons of copper production from the mine in 2025.
Speaker Change: We hold a 1.5% MSR royalty and a 3.5% net profit interest that the run project Barrick recently provided clarity overdevelopment and production timelines for when that project would be incorporated into the broader Carlin complex plan.
Speaker Change: In its Q4 2024 N DNA Derek noted that rent is expected to achieve an annual production rate of 140000 ounces of gold per year in 2027.
Speaker Change: Management at Ied Gold has indicated that granite Creek is the primary focus for project development first at the underground operation, which is expected to ramp up production with 20000 to 30000 ounces of gold in 2025.
Speaker Change: Hold the 10% NPI royalty on granite Creek, and we note that our MTI is subject to a 120000 ounces gold production threshold of which approximately 10000 ounces had been produced against to date.
Speaker Change: Updated Pea studies for the Granite Creek underground and at Granite Creek Open pit projects were published in March and further updates to the mineral resources and a feasibility study are expected in Q4 2025.
Speaker Change: Moving to the Carnival West project on which gold royalty holds at 3% MSR Blackrock silver received the required approvals to build an exploration decline in 2027 to further advance the project.
Speaker Change: And extended drilling program of 15000 meters is planned in 2025, and an updated mineral reserve and resource estimate for the project is expected to be published by the third quarter of this year.
Speaker Change: And finally, an agreement has been entered into by Newmont to sell the Porcupine complex to discovery silver.
Speaker Change: As part of the acquisition discovery published an updated Pea a on the complex, which included a nine year life of mine and 867000 ounces of total gold production at the board in mind, which is part of that broader porcupine complex relevant for us because gold royalty holds a 0.5% MSR royalty over the eastern portion of imported.
Speaker Change: New ownership could lead to a renewed focus on Porcupine and Barton Ediscovery Silvers Investor day on March 3rd management outlined that the potential for further exploration to the east important deposit at depth.
Speaker Change: Our geographic exposure Premier operating partners and marquee royalty assets still represent one of the highest quality portfolios in our sector.
Speaker Change: Gold royalties diversified portfolio provides significant optionality to the extensive exploration work conducted by our operating partners.
Speaker Change: They selected asset highlights we have already discussed numerous other advancements continue to move our portfolio forward in recent quarters, we've seen the blue cash flowing bucket of our pipeline growth.
Speaker Change: And are excited by the potential for asset such as Ren Odyssey, South Railroad County line and Granite Creek can move from the development to cash loan category in the relatively near term.
Speaker Change: Moving to slide 10, and looking ahead to some key upcoming catalysts across the portfolio you can see that we have a long and growing list of exciting catalysts, which will move our portfolio forward. We've already spoken at length about many of the catalysts, which are contributing to our 2025 and longer term growth, including Odyssey Kotte varies.
Speaker Change: Over I'm, a random granite Creek, so I'll just highlight a few catalysts, we haven't talked about yet.
Speaker Change: We're excited by the team at Walbridge mining, who has indicated that it expects to publish an updated P. A M. Central on project later this quarter.
Speaker Change: In the medium term, we have numerous catalysts that will support our growth trajectory towards the aforementioned five year outlook. These include.
Speaker Change: Initial production at County line by 42 gold or gold royalty holds a 3% MSR royalty.
Speaker Change: Fortitude is advancing permitting in place to dovetail initial production from county line with the winding down of operations at Isabella Pearl.
Speaker Change: We can look forward to an updated pea a next year at Tupper West and construction to start with an exploration decline in 2027.
Speaker Change: And at South Railroad Orla has outlined that it expects to achieve initial production in 2027.
Speaker Change: And you can see there's lots to get excited about with regards to the gold's royalty portfolio.
David Garofalo: I'll now pass the call back to David to summarize before opening up for questions.
David Garofalo: Thank you Jackie there is indeed lost to get excited about as you look across our portfolio and the various high quality assets ramping up and entering production.
David Garofalo: Now despite our high quality portfolio and encouraging developments from our operating partners. We continue to trade at a discount relative to many peers on a price to net asset value basis.
David Garofalo: During this period, we have placed an emphasis on being disciplined as we continue to grow our portfolio.
David Garofalo: We have a strong degree of conviction with the quality portfolio and what our operating partners will deliver and we will continue to be patient as our peer leading growth in cash flow materializes.
David Garofalo: As we expect continued cash flow growth in future quarters. We are confident this will be the catalyst for re rating back in line with peers.
David Garofalo: In the meantime, we will be patient paying down our revolving credit facility will be one of our priority uses of capital.
David Garofalo: In closing 2024 was a record year for bold royalty with record revenue record operating cash flow and record adjusted EBITDA.
David Garofalo: Looking ahead, we have peer leading growth with G. O is expected to increase by over 360% by 2029 relative to 2024.
David Garofalo: These strong results demonstrate the built in growth of our portfolio.
David Garofalo: Our portfolio's growth profile was achieved through transformative value accretive acquisitions made over the company's four year history.
David Garofalo: These acquisitions secured royalties on large scale long life mines, and late development near production and ramp up stages. These.
David Garofalo: These assets position Gore royalty due to growth in revenue and geos over the long term.
David Garofalo: Including through the end of the decade.
David Garofalo: With that operator, we'd be happy to open up call for questions.
David Garofalo: Ladies and gentlemen at this time, we'll begin the question and answer session.
David Garofalo: I ask a question you May press Star and then one using a touchtone telephone.
David Garofalo: You are using a speaker phone would you ask me please pickup your handset prior to pressing the keys.
David Garofalo: Withdraw your question you May Press Star then two.
David Garofalo: Once again star one.
David Garofalo: I was thinking.
David Garofalo: We will pause momentarily to assemble the roster.
Speaker Change: Our first question comes from Heiko Eileen from H C. Wainwright. Please go ahead with your question.
Sorry, I had you on mute I assume you can hear me all right now yep good to see thank you.
Speaker Change: Hey, David Hello team, Thanks for taking my questions.
Speaker Change: You put out the 2029 guidance are excellent numbers, obviously can you give some color on the even longer term I went through some of the assets. This morning, just sort of go out with a little bit more on me and I showed you at our analyst as well, obviously due dcfs and a much longer term fashion.
Speaker Change: Assume almost all your major us it should still be in production five years, even after this long term call. It whatever 2034 so.
Speaker Change: Building on some of that can you maybe provide some color on what you're modeling and how you expect the breakdown between gold and copper to be in the very long term.
Speaker Change: I assume your asset base have you bigger by dentists wall.
Great. Thanks Heiko.
Speaker Change: You have Jackie on the phone and Peter Bank are director of corporate development Investor Relations is also on the call. So I'll hand, it off to them to talk about the longer term horizon.
Speaker Change: Thanks, David.
Speaker Change: I'll jump in and Jacky please.
Speaker Change: At any point I may mess I think HEICO to your first question on longer term guidance, while we can't speak definitively about longer term beyond five years I would note is as you mentioned many of our cornerstone assets Canadian Malarchuk Kotte, Boris and Borborygm that support that five year outlook are based on <unk>.
Speaker Change: On a year plus mine plans are based on existing reserves and resources are currently so we do have strong conviction that that five year outlook is sustainable for a longer period beyond that.
Speaker Change: And to your second question on the split of gold versus copper are only copper assets currently are the virus copper stream.
Speaker Change: And the Cozman mine, which as we approach that five year outlook become a relatively smaller portion on a book value basis, we are still appropriate, but approximately 90% gold and 10% copper.
Jackie Przybylowski: Maybe that's just caused some sort of finish that thought sorry, heiko it's Jackie.
Speaker Change: I'm part of the part of the reason why copper declines in our portfolio longer term. This is because the close them in mind. For example are at least as it's as its strong right now in life of mine and reserves and resources and will decline over time now, we're obviously hopeful that that will be extended but our our.
Speaker Change: <unk> right now is in line with the company's guidance that that will decline over time, but but more importantly, because assets like.
Speaker Change: The Canadian allergic underground at Odyssey, Ren and some of the other assets that we have on the gold side, well will grow and so we definitely see more growth on the gold cycle going forward in the longer term.
Speaker Change: Which helps to dilute some of that copper exposure down.
Speaker Change: Hum.
Speaker Change: Fair enough.
Speaker Change: I, sometimes get some investor questions about your debt.
David Garofalo: David mentioned earlier on this call are paying down the revolving debt remains a priority.
David Garofalo: I think all of you know I personally don't really mind, a little bit of that for royalty firms, especially given though that allow you to expand your asset base. When one one spot coal pricing was meaningfully lower.
Speaker Change: But can you maybe provide some color on your five year outlook for that I mean is the game plan to get this to zero or close to it or is the plan to always keep a bit around.
Speaker Change: I'm going to hand, it off to Andrew and I'll round up the conversation.
Speaker Change: He completes his U S bonds.
Speaker Change: Got the whole team to that you do.
Heiko Eileen: Hi, Heiko.
Speaker Change: Yeah, no with respect to.
Heiko Eileen: The debt leverage.
Heiko Eileen: Look we've done we've had good support from our lenders.
Heiko Eileen: I've been able to access our credit facility to build this foundation. This base the portfolio we have at the moment.
Heiko Eileen: It's allowed us to be able to have.
Heiko Eileen: Operating cash flow and in 2025, we expect free cash flow positive years. So.
Heiko Eileen: Our expectation is.
Heiko Eileen: With the the debt we've drawn down for the acquisitions, we've made we're able to generate free cash flow and start building on cash and that's really the.
Heiko Eileen: That's the crux of this business you see the larger cap peers utilize in their credit facilities as needed for expanding their business.
Heiko Eileen: Drawing down on the facility and repaid.
Heiko Eileen: I think as we move forward.
Heiko Eileen: And it's evident in our five year guidance, we will be in a position, where we're generating free cash flow.
Heiko Eileen: Well in excess of the operating costs and financing costs.
Heiko Eileen: The debt service costs and will be in a position to.
Heiko Eileen: To repay that facility without without a major problem.
Heiko Eileen: The question is will we have debt on the balance sheet in the future.
Heiko Eileen: It really is a function of.
Heiko Eileen: Of the opportunities in front of us.
Heiko Eileen: In my mind.
Heiko Eileen: The preference is as we generate cash flow, we will assess our capital allocation.
Heiko Eileen: Alternatives and we.
Heiko Eileen: We will look to service that debt and pay it down through through the coming periods through the year.
Speaker Change: I a M.
Heiko Eileen: I think having a.
Available credit to draw on for opportunities is a positive thing and at this stage moving forward as we've mentioned before we will look to pay down some of that revolver as we as we generate cash flow. So I can't say that Wil will carry no debt going forward I think it's really a function of what.
Heiko Eileen: We see I don't foresee us being.
Heiko Eileen: As we evolve as a company.
Heiko Eileen: Being overly highly levered compared to our peers, but again at this stage, it or appaloosa and to build the base to get where we want it to be.
Heiko Eileen: We did use review the uses or sources of capital and do the revolver drawn down as is.
Heiko Eileen: As a good source to build that base at the moment. So yeah I should you should see that going down in the future and certainly relative to the cash flow generated in the future will be substantially lower.
Heiko Eileen: Oh.
David Garofalo: David did you want to add anything.
Heiko Eileen: No I was just going to say philosophically.
Heiko Eileen: And I think that Andrew covered the software.
Heiko Eileen: Is using the debt facility has allowed us to get very large accretive deals done on a non dilutive basis.
Heiko Eileen: But the objective is to pay that back out of free cash flow as quickly as possible.
Heiko Eileen: So we have that capital available for future non dilutive acquisitions that we think will add value to the business, but really carrying low levels of debt is a priority for us and you'll see our capital structure simplify over time as our free cash flow generation ramps up dramatically.
Speaker Change: Our next question comes from Eric Windmill from Scotiabank. Please go ahead with your question.
Eric Windmill: Great. Thanks, Good morning, David and team Thanks for taking my question.
Eric Windmill: Just looking out into 'twenty 25, I know you kind of touched on it a bit in the the preamble, but you know obviously important year for free cash flow inflection any additional details in terms of how we should think about the cash flow distribution through the year I assume there's probably more weighted to the second half than first half.
Eric Windmill: I'll hand that off to Peter and Jackie as well just to talk about the distribution of the guidance.
Peter Bank: Thanks, Dave Alright, Eric sure, Dan Sorry, Jackie a short answer yes.
Speaker Change: Given the ramp up of assets Forest Coty and <unk>.
Peter Bank: The second half of the year is expected to.
Speaker Change: To be stronger than the first half.
Peter Bank:
Peter Bank: So a marginal weighting in that direction.
Speaker Change: Okay, great. Thanks, Peter appreciate that maybe just one more for me too in terms of new opportunities out. There are you know what are you seeing or any additional commentary here in terms of our you know what kind of deals you're looking at here to maybe add to the poor.
Peter Bank: Folio.
Speaker Change: Peter do you just want to talk about the rock.
Peter Bank: Yeah, I'll I'll build on that again, thanks, Dave.
Speaker Change: Definitely where we're still very busy and looking.
Speaker Change: Looking at looking at the market for new opportunities on the royalty and streaming financing front the higher commodity price I think is helping select producers and developers.
Speaker Change: To access the equity markets, we're still seeing a lot of opportunities with some earlier stage companies.
Speaker Change: Albeit our focus is always on quality and meeting our thresholds on pricing for a clearly accretive deal on a pea never and IRR basis.
Speaker Change: Where we have had successes is looking at the third party market from prospectors are either.
Speaker Change: More selective opportunities, but I would note when we're looking at opportunities. Despite the strong commodity price, we're always apply in consensus commodity prices.
Speaker Change: As Andrew noted in our guidance is closer to 2200 and the long term.
Speaker Change: So it's about emphasizing that our focus on meeting those those return thresholds, whether that's a financing or a third party opportunity.
Speaker Change: I'd highlight here as well and get ahead of maybe a potential follow up question that we did acquire a royalty over the garrison project.
Speaker Change: Earlier, this year and that was a smaller tuck in opportunity that met those thresholds acquiring a 1.2% MSR over a an attractive project near 10 minutes over $2 9 million ounces.
Speaker Change: So a very attractive dollar per ounce.
Speaker Change: Low peanuts multiple so so that's an example of an opportunity where we saw a really attractive return significant upside.
Speaker Change: Through a bilateral third.
Speaker Change: Party process.
Speaker Change: I would just add that there's a plethora of pre resource opportunities out there that frankly, we're just not interested in.
Speaker Change: We don't want to take Flyers, we're really focus on cash flowing near cash lean assets. So those are the deals that we've really executed on last year and a half it's been.
Speaker Change: Borborygm cozman bars, all either in production or about to achieve commercial production at.
Speaker Change: To add cash accretive and value accretive deals to the pipeline. We can generate those early stage opportunity get resolved ourselves for sweat equity, we don't need to buy those or allocate scarce capital to those really early stage opportunities and we continue to generate a couple of royalties per quarter through our generative model and effectively no cost and it's also been.
Speaker Change: An important source of incremental revenue on option payments on those properties. We farmed out so I think staying focused on later stage operating assets is really going to be the focus but those are few and far between and if you can if you look at our evolution over the last four years the piece of acquisition has slowed dramatically.
Speaker Change: Get a lot of M&A in 2021, where we had a strong currency to do so, but we really focus keenly focus on later stage opportunities. Since then so we've done a lot fewer acquisitions since 2021, and I think that's going to be recurring theme is stay disciplined be patient and allow our abundant crop abatised Harvey.
Speaker Change: Over the course of next couple of years Henry Freak out.
Speaker Change: Any margin in our business.
Speaker Change: Okay Fantastic I appreciate all the extra color sounds good I'll hop back in the queue.
Speaker Change: Cheers.
Speaker Change: Yeah.
Speaker Change: Our next question comes from Brian Macarthur from Raymond James. Please go ahead with your question.
Speaker Change: Mr. Mcarthur is it possible your phone is on mute.
Speaker Change: And we'll move on to John Tumazos from John Tumazos Independent Research. Please go ahead with your question.
John Tumazos: Thank you for taking my question and thank you for your service to the company.
John Tumazos: First question in your guidance for this year.
Speaker Change: Which properties have a call in may.
John Tumazos: To be someone like a Google booked.
Jackie you want to cover that first.
Jackie Przybylowski: Sure Sean.
Jackie Przybylowski: If youre talking about.
Jackie Przybylowski: You know why are wider guidance, there's maybe a little bit below where the market expectations are I think.
Jackie Przybylowski: The biggest delta would be or level of conservatism around startups and ramp ups of various assets and none of your projects you down from last year.
Jackie Przybylowski: Alright.
Jackie Przybylowski: No. We we do have flattish production at Canadian Mill, Arctic that would probably be the biggest example of our projects that that's okay.
Speaker Change: Where are your discounting your operators guidance.
Jackie Przybylowski: To be careful.
Jackie Przybylowski: How much would your guidance be if you followed the operator's guidance.
Jackie Przybylowski: Here with me I don't want to say, we're just counting the operator's guidance I don't want to I don't want to make it sound like we I don't wanted to ask specifically, so I'm just saying in total.
Jackie Przybylowski: I think I think the yes.
Jackie Przybylowski: The point is we're being conservative we're using sort of the lower end of the operator's guidance at the assets that are still ramping up so that would be cocaine ferrous bulk rami what would be the ones for where we're looking at things more conservatively.
Jackie Przybylowski: And we're still using the upper east guidance, but we're using.
Jackie Przybylowski: What would be the lower end of their guidance.
Jackie Przybylowski: It was close to the only property where your loyalty is a subset.
Jackie Przybylowski: And someone might have been in Burnley overestimated.
Jackie Przybylowski: Based on the entire property or are there other royalties, where youre a sub social coverage partial coverage, we I mean, the other the other probably the biggest example would be Canadian mill Arctic we don't have full coverage.
Jackie Przybylowski: Canadian law, particularly don't full coverage of the underground as well. So that's another example, where we're estimating fee.
Jackie Przybylowski: I think areas for the mine mining is taking place within the mine plan.
Jackie Przybylowski: And that and there might be an another example employer.
Jackie Przybylowski: Where the street might be looking at things slightly differently.
Jackie Przybylowski: That's probably the next biggest example.
Jackie Przybylowski: Yes.
Jackie Przybylowski: David If I can ask you a macro question.
Jackie Przybylowski: <unk>.
Speaker Change: Thank you I bought your stock at $1 29 earlier in the call. So U S. I'm not unhappy them. Thank you for giving us this opportunity.
Jackie Przybylowski:
Speaker Change: Do you ever get the urge to call your old subordinate Jason that true Cisco royalties.
Jackie Przybylowski: Sure Jason.
Speaker Change: These young jackass analysts don't understand why don't you just finally for $2 U S and save me the trouble.
Speaker Change: Yeah, I really do think of our business has a lot more intrinsic value than even that number is.
Speaker Change: It's more than just Canadian Miller, Rick obviously, we have common interests it can eat melodic.
Speaker Change: With with the Cisco gold royalties, but we have.
Speaker Change: And abundant and diversified portfolio of assets that are ramping up quite dramatically over the next couple of years and the market frankly is not recognizing that intrinsic value I think we're going to do far better.
Speaker Change: Delivering on that revenue growth and margin growth over the next couple of years and any premium offer for the company could could afford our shareholders. There's a lot more intrinsic growth and value growth just by harvesting what we've already built up and I hasten to add that every one of our assets are bought and paid for we have no capital calls.
Speaker Change: This growth is going to be free growth going forward and also free exploration optionality or our operating partners invest over $200 million in exploration brownfield exploration around our existing mines and infrastructure, that's free exploration upside that kind of optionality as wire shareholders who've bought this company both in terms.
Speaker Change: Margin expansion revenue growth, but also the exploration optionality with well capitalized operators that have both the balance sheet technical capacity.
Speaker Change: Two vastly increase the value of their businesses and we have top line growth from all of these businesses.
Speaker Change: One last one thank you for putting up with me too.
Speaker Change: I'm, hoping tomorrow in the press release says, we're not going to pay debt this year and our board's authorized a 20 million share buyback authorization.
Speaker Change: Not too much to hope for.
Speaker Change: I think capital allocation is a luxury that we're going to have as we get deeper and deeper into free cash flow territory, whether it's deleveraging, which we see as a priority in the current year, but also looking at returns of capital to shareholders in various forms whether share buybacks or dividends. We have a business that's going to have the capacity to do either or.
Speaker Change: And I think that's the luxury we look forward to enjoying as this business starts to generate significant growth and margin expansion that we expect over the next couple of years.
Speaker Change: Okay.
Speaker Change: Thank you John.
Once again, if you would like to ask a question. Please press star and then one to withdraw your question you May Press Star and two again that is star and then one to join the question queue.
Speaker Change: And ladies and gentlemen at this time in showing no additional questions I'd like to turn the floor back over to management for any closing remarks.
Speaker Change: Well, thank everybody for your kind attention today of course, you can reach any one of us.
Speaker Change: By by email.
Speaker Change: Many of you have a number but.
Speaker Change: Jackie Pea at a gold royalty dotcom is our first.
Speaker Change: First point of contact Jackie Yeah, we'll be happy to take any questions you have but of course, if you Wanna reached any of US individually. Please don't hesitate and thank you. So much for your time today and your faith in our growth and our prospects going forward.
Speaker Change: And ladies and gentlemen, with that we'll conclude today's conference call with you. Thank you for attending today's presentation. You may now disconnect your lines.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: [music].