Gold Royalty Increases Credit Facility to $35M with Bank of Montreal and National Bank of Canada.

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Gold Royalty ($NYSEAM:GROY) Corp is a publicly-traded gold royalty company based in Canada. It owns a portfolio of gold royalties across multiple regions and commodities, with a focus on North America. On Monday, the company announced that it had amended and restated its credit agreement with the Bank of Montreal and the National Bank of Canada, increasing its existing credit facility from $25M to $35M. The extended credit facility consists of a $20M secured revolving credit facility, and an accordion feature providing for an extra $15M in availability, subject to certain conditions. This additional credit facility will allow Gold Royalty to explore further growth opportunities, such as expanding its existing portfolio of gold royalties and investing in new projects. This amendment gives Gold Royalty additional flexibility to pursue new projects and expand our royalty portfolio.”

The amendment of their agreement on Monday demonstrates the confidence the banks have in Gold Royalty’s strategy and ability to continue growing their business. With the increased credit facility now available, Gold Royalty has greater access to financing which it can use to further diversify its portfolio. The news of Gold Royalty’s amended credit agreement has been welcomed by investors and industry analysts alike. The increased credit facility will give Gold Royalty greater financial flexibility, which should lead to increased growth opportunities and shareholder value in the future.

Share Price

This news has been met with positive coverage from media outlets and investors, with the stock opening at $2.3 and closing at the same price on Monday. This increase in credit has boosted the company’s liquidity and will provide it with more flexibility in the coming months. It is expected that this move will help Gold Royalty expand its operations and increase its market share. The additional funds will also enable Gold Royalty to invest in research and development, which can lead to innovative products and services that could increase their profits in the long run. The financial agreement includes an increase in the company’s interest rate on the revolving line of credit.

This new agreement is beneficial for both parties involved as it will help Gold Royalty to access capital more quickly, while also providing financial institutions with security in case of defaults. Gold Royalty’s increased credit line was welcomed by investors, as it signifies a strong financial future for the company. With this additional funding, Gold Royalty is sure to have plenty of options to grow and expand its operations in the future. Furthermore, the agreement could serve as an attractive opportunity for potential investors, who may be interested in investing in a company that has strong financial backing. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Gold Royalty. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Gold Royalty. More…

Key Ratios Snapshot

Some of the financial key ratios for Gold Royalty are shown below. More…

Analysis

GoodWhale’s analysis of GOLD ROYALTY’s wellbeing has revealed a medium risk investment in terms of both financial and business aspects. This means that investors need to be aware of the potential risks involved when investing in GOLD ROYALTY. GoodWhale has also detected two risk warnings within the balance sheet, which are non-financial in nature. To gain access to details of these warnings, potential investors need to sign up and become registered users of GoodWhale. GOLD ROYALTY’s medium risk rating indicates that the company is relatively stable, but not without certain risks. GoodWhale’s system seeks to minimize any surprises for investors when investing in GOLD ROYALTY. The system provides insights into the company’s financial and business aspects, as well as any risk warnings in the balance sheet. The GoodWhale system is designed to help investors make informed decisions about their investments. By providing comprehensive analysis of GOLD ROYALTY’s wellbeing, it helps reduce potential risks that could arise from investing in the company. Potential investors should take advantage of the system by signing up to become a registered user and gaining access to the details of the risk warnings on the balance sheet. More…

Peers

Gold royalty companies have seen increased competition in recent years as the industry has taken off. Gold Royalty Corp is one of the leading companies in the field, and its competitors Vox Royalty Corp, Triple Flag Precious Metals Corp, and Yintai Gold Co Ltd are all vying for a piece of the pie. These companies are all looking to get a piece of the action by providing investors with a way to invest in gold without having to physically own it.

– Vox Royalty Corp ($TSXV:VOX)

Vox Royalty Corp is a Canadian mineral royalty company. The company owns a portfolio of over 150 mineral royalties, covering a variety of metals and minerals. Vox Royalty’s focus is on building a diversified portfolio of high-quality royalties, with a view to generating long-term, sustainable royalty income for shareholders. The company has a market cap of 128.75M as of 2022 and a Return on Equity of -2.32%.

– Triple Flag Precious Metals Corp ($TSX:TFPM)

Triple Flag Precious Metals Corp is a precious metals streaming and royalty company with a focus on gold. It has a market cap of 2.47B and a ROE of 2.62%. The company has a portfolio of high-quality assets and a strong management team with a proven track record in the precious metals industry. Triple Flag is well-positioned to continue growing its business and generating shareholder value.

– Yintai Gold Co Ltd ($SZSE:000975)

Yintai Gold Co Ltd is a large-scale gold producer in China with a market cap of 36.79B as of 2022. The company has a long history dating back to the early days of China’s modern gold industry, and today it is one of the leading gold producers in the country. Yintai Gold Co Ltd is also one of the largest gold retailers in China, with a nationwide network of gold shops. The company’s return on equity (ROE) is 10.4%.

Summary

Investors interested in Gold Royalty should take note of the recent news that the company has increased its credit facility with the Bank of Montreal and National Bank of Canada to $35 million. This increase in financial flexibility provides investors with more confidence in the company’s ability to execute on its plans and meet its financial obligations. The news appears to be well-received by the market, as it suggests investors are optimistic about the company’s prospects going forward. Gold Royalty is an attractive investment for those looking for exposure to gold-related equities, offering growth potential and a reliable dividend yield.