Gold Royalty plans to fund acquisitions without new share sales

Gold Royalty holds 10 income-producing assets and plans to fund acquisitions from cash and bank borrowing rather than issuing new shares, Chairman and CEO David Garofalo said in an interview published by The Northern Miner on Oct. 23.

Garofalo expects the number of income-producing assets to double by the end of the decade. Ramp-ups at Côté Gold in Ontario and Vareš in Bosnia have helped lift revenue, and new production from Ren in Nevada and the Odyssey underground expansion in Quebec is expected to support further growth. The shares trade on the NYSE under the ticker GROY.

For an investor, funding with internal cash preserves per-share exposure to the 10 royalties, while bank borrowing adds leverage against the same portfolio. Garofalo did not give a target for how much debt the company would carry. The royalty structure keeps the wait affordable: mine operators pay for construction, exploration and expansions, so the royalty holder collects from higher output without carrying those development costs.

Garofalo described the deal pace as deliberate. "Sometimes it can be a year and a half between deals because we do not want to overpay for deals," he told The Northern Miner. "We don't want to undermine that per-share value creation that we already have embedded in our portfolio by doing a deal that destroys capital."

Funding is meant to come from a mix of bank debt and cash the portfolio generates, The Northern Miner reported. Garofalo also said regular capital returns to shareholders are under active consideration; he did not specify a form or timetable.