The Bull Case for Gold Royalty (GROY) Could Change Following Index Inclusion and 250th Royalty Milestone

• Gold Royalty Corp. was recently added to the S&P/TSX Global Mining Index following the acquisition of its 250th royalty interest, the Spanish Moon Project, and establishing a 3% net smelter return royalty with Kinross Gold.
• This milestone, alongside portfolio progress in production, regulatory approvals, and asset development, highlights the firm's capacity to expand through multiple growth channels and sustained asset growth since its 2021 IPO.
• We'll now examine how Gold Royalty's index inclusion and portfolio expansion could influence its investment narrative and risk profile.

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Gold Royalty Investment Narrative Recap

At its core, investing in Gold Royalty means believing in the long-term expansion and cash flow potential from a growing portfolio of gold-focused royalties, underpinned by ramp-ups at key producing assets. The company’s S&P/TSX Global Mining Index inclusion increases visibility, but it does not materially alter the immediate production concentration risk, revenue and earnings remain heavily reliant on a handful of ramping mines where setbacks could impact near-term performance.

Recent production gains at Borborema, now having achieved commercial production, are especially relevant because they directly support both growth expectations and the core catalyst tied to increased gold equivalent output. As Gold Royalty’s business matures and new assets contribute to production, its ability to execute and sustain this operational momentum will remain in sharp focus for investors assessing upcoming earnings and cash flow stability.

On the flip side, investors should be aware of the persistent concentration risks tied to just a few key mines and how...

Read the full narrative on Gold Royalty (it's free!)

Gold Royalty's narrative projects $46.6 million in revenue and $14.7 million in earnings by 2028. This requires 55.5% yearly revenue growth and a $16.5 million increase in earnings from the current -$1.8 million.

Uncover how Gold Royalty's forecasts yield a $4.67 fair value, a 23% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community range widely from US$0.28 to US$74.21 per share. With production gains at assets like Borborema shaping results, your outlook may depend on how much weight you place on operational concentration risks versus scaling output, explore the spread of viewpoints for greater insight.

Explore 6 other fair value estimates on Gold Royalty - why the stock might be a potential multi-bagger!

Build Your Own Gold Royalty Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Gold Royalty research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Gold Royalty research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Gold Royalty's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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