[Call Starts Abruptly] to another fantastic VID conference Town Hall session with the Gold Royalty. Joining us today we have David Garofalo, the President and CEO; and also we have John Griffith, our Chief Development Officer, joining us again. Gentlemen, how are you?

Good. Thank you for having us on. We’re really delighted to be here.

Very good. Thank you. It’s always been a great journey with you gentlemen. I know there may be some technical issues for one of our feeds here, so we’ll hope our best all the way through. But, having seen a recent press release that came out from Gold Royalty, there’s a lot of news as there always is for this company. Gentlemen, I know that there’s a lot to share. So, I’m going to step at the side. And we invite everyone who’s joining us today to let us know where you’re tuning in from, and to remember to post your questions at the Q&A. We’ll have a great chance with both our guests. Ask questions at the end of the session. So, for now, gentlemen, I’ll leave you to the presentation.

Thanks very much, Mark, and good morning, everybody. We’re delighted you could join us today to talk about our second quarter results and also an update on the prospects of our royalty portfolio, which has now grown to 195 royalties throughout the Americas with a heavy concentration in some of the best jurisdictions of the world, namely Nevada, Québec and Ontario, as judged by the Fraser Institute for geological prospectivity, low political risk or geological -- excuse me, low regulatory risk. But we will provide a fulsome update on many of our key assets, the tremendous cash flow trajectory that we have from our business. We’re starting to see the evidence of that in our first couple of quarters with strong cash flow -- record casual flow, in fact, in both the first and second quarter of this year with a heavy weighting in the second half of this year as some of our key assets start up production, namely Beaufor in Northwestern Québec. Before I get into the presentation though, I do have to let you know that we’ll be making some forward-looking statements. And the disclaimer is enclosed in the slide deck. I ask you to read it at your leisure, but be appropriately cautioned. I think the question I quite often get asked is in this inflationary environment with headline numbers as high as they’ve ever been in almost 50 years, why we haven’t seen the kind of response and goal that people have expected? And what we’ve tried to do here is encapsulate gold price performance really since the last major inflationary cycle in the ‘70s and ‘80s, just to give you some historical perspective. And these are nominal god prices. It doesn’t reflect inflation adjusted gold. And you can see that on a nominal basis,…

Thanks very much, Dave, and a great pleasure to be speaking with everybody today. As David mentioned, we announced our results, record revenues of $0.6 million, and $1.2 million for the three and six months respectively. And I think importantly, we’re really looking forward to the ramping up of our revenue profile coming from Beaufor and later in the year Canadian Malartic. And that will result in us having an estimated $5 million in revenue for 2022. As Dave mentioned as well, we paid out our first dividend. We’re currently yielding, I think, it’s approximately 1.3% on a yield basis. And I think as the revenue profile accelerates, so too will hopefully our dividend as well. Dave did mention strong liquidity of $25 million, which positions us very well for further growth. And I think the really exciting part about the business, notwithstanding the market sell-off that I think Dave articulated really well, is our business has never been stronger. I know we’ve had a relatively short existence, but we’re really well positioned. The assets and the partners with whom we share our profile -- asset profile have really been doing well, and a lot of good news coming out on the assets. And I’m going to share some of that with you today. So, a really strong backdrop for the Company in addition to the backdrop that Dave shared with you on the gold price. I think, as we look at the revenue growth, I’ll move to the next slide, because I think this captures it nicely. Over the next several years, our revenue growth is expected to be approximately 60%. So, by 2025, we’ll be more than $20 million in revenue. And I think what’s exciting is you go beyond 2027 and that number accretes to over $60…

Thank you both gentlemen. It’s always great to see you here at VID conferences. You’re one of the most forthcoming companies that we have at our sessions. So, I’m very grateful for that. And we do have a very busy Q&A column happening. So we’re going to get right into the comments from around the world. Our first question comes and says, do you still see opportunities for further M&A at this point?

Certainly. Look, there’s been a proliferation of these companies, royalty companies in the space over the last while. And as John correctly pointed out, many of them do trade by appointment, they are illiquid, they’re unable to access capital. And recognizing that, some of the companies we took over last year, the management teams at Ely, Golden Valley, and Abitibi recognized the deficiency in their platform. They had great assets, but they didn’t have the ability to access further capital to grow their business. And they hopped on board. And in fact, all of the founders of the companies that we took over are still meaningfully involved with us, both as shareholders and contributors to us day-to-day. Jerry Baughman and Trey Wasser, the co-founders of Ely still help run our Nevada business. They generate royalties for us. As John pointed out, our generator platform is still a meaningful source of growth for us. And similarly, Glenn Mullan at Golden Valley runs our business in Ontario, Québec, and does exactly the same thing that Jerry does in Nevada, generates royalties for us effectively for free by staking exploration claims. So, he’s enjoying the liquidity that our platform offers, our access to capital, so he can continue to do what he does extremely well and has done extremely well for over 30 years. So, I do think there’s still more opportunity out there. There needs to be that rationalization. And we need to create a mid-tier player, we’re none exist currently. There is no $5 billion market cap royalty company that’s big enough to matter the institutional investors but small enough to grow meaningfully. When you’re Franco-Nevada, you’re $30 billion to $40 billion in market cap already, how do you double from there? How do you meaningfully grow your business? It’s a great business. It’s a blue chip, but how do you double the value of your business. When you’re a $500 million market cap company, $1 billion or even $5 billion market cap company, their prospects for a double, triple are much higher than they are when you’re already a large cap company with limited scope for growth.

Terrific. Thank you, David. Great context there. Moving on to next question, why did the Elemental bid fail and why did you not increase the bid? And what’s next?

Look, I think ultimately what it came down to was there was a very closely held shareholder base, and that’s why the Company literally trades thousands of dollars of stock per day. It’s very, very illiquid. And I have to take responsibility. I underestimated the ability to break into that cabal of shareholders. I thought there was one or two of them that would want path to liquidity in a much larger vehicle. They have a -- I think a strong asset base, it complements what we have. They’re more Australia, Africa focused; we’re Americas focused. They’re in good jurisdictions in Australia, obviously. So, it was good complementary fit. But I underestimated their desire to get a pack of liquidity and get to a larger platform. And we were invited to bid against ourselves and we declined. And we were not provided access to data. So, it was very difficult for us to look for value in the absence of having access to more meaningful data, to see if there was value that the market wasn’t seeing. And so, we had to walk away. We have to demonstrate discipline with our shareholders. We have to show them that we value their shares, and then we’re not just going to throw it away. And it’s a currency, and the minute we just continually print that currency without any view to value, then you’re undermining the value of that currency. So, we’ll be disciplined in anything we do on the M&A side.

Great. Thank you, David. Great overview there. Next question comes in and says, what are you hearing is the key reasons why the stock trades at such a deep discount to NAV? And what can you do that’s when you’re under control to help close the gap?

Look, I think what we can do is go out and tell the story. We do have a very, very compelling story. We have a very diversified portfolio with significant growth in the best jurisdictions in the world, and a business that’s going to do exceedingly well in an inflationary environment. That’s the story we need to tell. And we need to continue to add assets, both on assets that add value in a for sure basis. But, even if we allow our existing asset base to mature without any other acquisitions, we’re going to deliver significant cash flow for share growth for our shareholders in the next several years, all of these projects are in mid-gestation right now. And we’re going to benefit obviously from the upside that the gold price offers. But the other element and the other dimension of our story is virtually all of our key assets are being explored aggressively, and we enjoy that exploration upside without having to put a dime in. As John said, all of our royalties are bought and paid for. We don’t have to put another dime in. So, every time our operating partners find another ounce in the ground, every time the gold price goes up, every time they produce an incremental ounce of production, we enjoy entirely that upside without having to pay for it.

Great. Thank you for that, David. Question from James comes in, says, why does management -- sorry, when does management expect to start receiving payments from the 3% royalty on Canadian Malartic underground, also approximately how much of the Odyssey project does the NSR cover?

John, do you want to handle that one?

Sorry. I was struggling with my mute button there. I beg your pardon. I think, the -- we’re certainly expecting to see some moderate cash flows coming out of Canadian Malartic going forward for the next couple of years. But I think, when Odyssey ramps up, it’ll be later 2023, 2024. And really, I think where we start to see maximum revenue from Odyssey is going to be 2026, 2027. And as I mentioned in my comments, that’s when we expect to see revenue hit approximately $60 million, and that’s largely driven by Odyssey, but also other assets like REN and Côté.

Very good. Thank you for that. Moving on to the question from Vernon, asking what type of royalty -- excuse me. What type of royalty company are you striving to be? Are you an -- income company? What kind of shareholders do you aim for?

Well, look, I think the one thing that we haven’t done is done streaming. So, we’re happy to look at royalties and streams and we’ll structure ourselves accordingly. We just haven’t found any value in the streaming business right now, but we are looking actively for those. We’re precious metal focused, if that’s the question you’re asking. We probably have some room for diversification. We’re over 90% gold right now. We have about 3% silver and 7% copper exposure in terms of the assets we currently hold. So, we have some scope for diversification, but only in the context of buying a precious metal royalty. If we pick up some base metal exposure in the context of buying a precious metal royalty, because quite often deposits are polymetallic, then we’re happy to take on a bit of diversification. But it gets a bit risky to our multiple if we go below say 70% to 80% precious metal. So, we’ll make sure that we stay within that range at a minimum to ensure that we get the optimum multiple in the marketplace.

Great. Thank you, David, for that. We have a couple of viewers that are looking for this answer. Real G&A was in the order of US$4.9 million in the most recent quarter. Can you provide a more representative run rate might be and when that might be achievable?

Yes. So, look, there was a lot of one-time costs in those G&A costs in the six months. For example, I think there was almost $5 million of nonrecurring G&A costs, essentially pertained to the significant M&A activity we undertook over the course of six months of the year. So, those are non-recurring. The biggest component of our G&A costs, believe it or not is our -- insurance we’re U.S. listed. Last year, that was $2.5 million hit to our G&A. This year, we’ve actually been able to bring that down to about $1.7 million. So, that actually is an excess of our other cash G&A. We don’t carry a lot of headcount. We have seven full-time equivalent employees. And I say full-time equivalents because we only have four actual full-time employees. And then, we share some resources with some of the other companies that we share office space with. We share an ESG specialist, we share a controller, and we share an IT specialist and so on. We share a mining engineer. We share a geologist. So, we’re able to share those resources across an ecosystem of other companies. So, we keep our G&A costs extremely low. But from time to time, we will undertake transaction costs. We hire subject matter experts, consultants to help us do our due diligence, but that helps keep our overhead low on a continuing basis, if we focus those G&A costs, those non-recurring costs on specific transactions.

Great. Thank you for that, David. Question here from JP. JP understands that you’ve acquired your royalties in exchange for GROY, without including Sprott, McEwen, et cetera, will we be seeing more stock hit the market from acquired companies?

Well, look, I think, whenever you’re taking over another company, there’s always a period of settlement in the stock. It’s hard for me to say who’s been buying and selling. There’s definitely been some exodus of some of the shareholders from some of the legacy companies. But by and large, some of the key shareholders, whether it’s Rob McEwen and Eric Sprott, Jimmy Lee, those guys have hung in there as far as I know, and supported the stock, believe in the story. And we’ve been able to acquire some very, very smart investors as a result of the acquisition of these companies. And they’re in there for the long-term. And that includes Ian Telfer, who is a cornerstone investor in our IPO. He’s the chair of our advisory board. He was the one that created the whole streaming model with Wheaton Precious Metals getting spun out Goldcorp 15 years ago. So, we’ve got some very smart money and the story, and I’m very proud to have him in our shareholder.

Another question we’ve heard this before in other town halls, David, are you going to list in Canada?

So, right now, there doesn’t seem to be imperative to do that. We are the most liquid stock among our peers on the NYSE. Having access to the deep pools of capital in the U.S. has served us well. And it hasn’t prevented our shareholders in Canada from buying the stock. And I think at the end of the day, whether you’re in Canada or the U.S., you want to buy the stock where it’s most liquid and it’s always going to be most liquid in New York.

Okay. Thank you for that. Next question comes in. Can you please discuss Rawhide and why the impairment there?

John, do you want to cover that?

Yes, sure. I think, the key there is that the operators, we’re in a situation where they weren’t able to continue to operate the asset in a profitable manner. And as a result, we went in and did some analysis and we took a decision to write that asset off because, we think there’s a very real risk that we’re not going to see continued production out of Rawhide. It’s really quite that simple.

Anything to add David, or are you good there?

Yes.

Okay. Thank you so much. Next question. How is the prospect generation outside of the business going? Have you been successful in optioning out prospects year to date?

John, over to you.

Yes. I think that’s a great question because it’s one of the most exciting avenues of growth. When I think about growth in terms of increasing the number of royalties, there’s really four key strategies. One is this particular point, which is organic growth. And we’ve got three elements to that organic growth. The first is the work that Jerry Baughman does in Nevada. We’ve been able to enter into a new contract with one of the very largest gold companies, and that arrangement really results in us leasing some land to this company. They’re going to be doing drilling on it. And to the extent that they then exercise their options, it converts into a royalty. And basically what that means is we’ve generated that royalty for a portion of what we pay Jerry’s salary. So, it is one of the very cheapest ways to generate royalties. I can tell you that we’ve got a further two arrangements also with major gold producers that we’re hoping to be able to close, I would say within weeks. In the case of Québec with Glenn Mullan, and we’re really thrilled to have Glenn be on our board, but also on our management team. And Glenn continues the activity that he was instrumental in building Golden Valley and Abitibi, and he’s doing exactly the same thing. And he has closed a transaction with Eldorado Gold, where we’ve got a free carried joint venture that could again, translate into a royalty, to the extent that Eldorado is successful with its drill program on that property. So, that’s a very healthy part of our business. I did mention there were three other elements. We continue to look at the opportunity to write new royalties, provide fresh capital to operating companies. We continue to look at acquiring existing third-party royalties, and then of course the M&A strategy around consolidation.

Great. Thank you for that, John. A couple of broader lens questions coming in here. I’ll move to this one. Newfoundland, reportedly one of the best mining jurisdictions, are you avoiding it intentionally? Is there something there that not dealt with or not crystallized yet? Just curious your thoughts on our find friends on the rocket.

John, over to you.

Yes. No, I -- definitely not intentional. I think it’s really a question of the opportunity set that is in front of us. And we -- at any one point in time, we’re looking at, at least 10 to a dozen opportunities that are in all parts of the globe. We don’t -- we certainly [Technical Difficulty]

Bit of a delay there on John. I knew we had a bit of a tech issue at the start. Let’s just give it a second.

John, I think we’ve lost you on sound there. But anyways, just to answer that question on Newfoundland, definitely not avoiding it, geologically prospective jurisdiction, one where we from time to time do see opportunities. We just haven’t transacted yet. So, it’s definitely within our radar. Canada’s a great place to be, regardless of the jurisdiction, province or the territory.

Very good. Thank you for that. Excellent. And John is back. I think we have that solved. If I’m not mistaken here. John, are you clear and free there? Not quite. Okay. We have max headroom there. Let’s move on to a broader question in terms of other jurisdictions. That’s a great segue, David. Thank you. In terms of where else in the world are you looking, what’s on the horizon?

Well, look, obviously with the Elemental bid, Australia would’ve been a great jurisdiction for us to be in. Western Australia was a top rated jurisdiction by the Fraser Institute last year. And so, it’s currently within our radar. We did bid on something in West Africa last year, Séguéla and that’s public. Would’ve liked to pick up that asset. Good geology in a jurisdiction with an operator that knows it well. Unfortunately, we were scooped by Franco-Nevada. It shows you how scarce these opportunities are when the biggest royalty companies of the world actually bowed down to scoop, what was relatively small royalty from us. So, we’ll continue to look in good jurisdictions. If we start with the geological model, we’re looking for good geology, good operators, and we’ll be in jurisdictions that have a good track record from a regulatory standpoint on the mining side.

Great. Thank you, David. And thanks. We’re still waiting for John to join us in full strength here. So, we’ll move on to a couple other questions here. What negative monetization are you placing on Elemental?

I’m not sure I understand that question, negative monetization. We don’t have any meaningful interests in Elemental. And so, I’m not sure what that means. Okay. I apologize if you want to provide some clarification in the text feed here, we’d be happy to answer the question.

We’ll watch for that from Bob. Thanks. Next question comes on the U.S. listing. Is your company considered Canadian for CRA foreign reporting T1135 purposes? It’s asking IR and never got a response, any clarification?

I’m going to get Peter Behncke to get back to you specifically on that tax filing. I know enough tax to be dangerous. But what I would say is we are Canadian incorporated. We’re Canadian domiciled. So, we’re a Canadian company that happens to be listed in the U.S. So, again, I think we walk like a duck and quack like a duck. So, we are -- but let me get Peter to get back to you specifically on your tax filing question, because I don’t recognize that tax form.

Thank you for that. Next question coming in, just want to -- this question from Dennis [ph] says, would Gold Royalty ever invest in another gold royalty stocks such as Great Bear Royalties or perhaps acquire such a company?

Well, look, there’s a lot of companies out there that we’re looking at. We’ll be opportunistic. There has to be value. We have to be able to demonstrate the value on a per share basis for our shareholders before we do any M&A. And currently with our stock at these depressed levels at discount to NAV as we showed you in that previous scale, it’s very, very difficult for us to contemplate any meaningful M&A at this stage. Well -- we’re going to focus on our business. We’re in a business generating our own royalties, looking at individual royalty opportunities with the substantial liquidity we have in our balance sheet, the access to debt we also have and with our debt providers, the CIBC and BMO. So, watch this space, but I’d say we’re going to be very, very careful about what we do on the M&A side to ensure that we are creating value for our shareholders.

Terrific. Thank you, David. And note that John has left the call for now. So, there may be an opportunity for him to join us before we say goodbye, but certainly want to thank him so far for his contributions. Just looking ahead, at this point, we always like to offer an opportunity here, David, to say, where do we look to over the next 6, 9, 12 months? What are we -- what’s on the horizon? What are the things we should watch for as we’re watching the Company?

Well, there’s lots of activity, both in terms of revenue growth, we talked about Monarch’s restarting the Beaufor Mine next month, and that’ll provide a meaningful upward lift in our revenue in the second half of the year. So, our revenue is very much backend loaded, and we’re in a great position to continue to pay our dividend. But there’s also been meaningful exploration. And John touched on many of those. We’re drilling many hundreds of thousands of meters, or at least our operating partners are many of our projects. And that means meaningful exploration information, which grows resources, which grows our exposure to those resources. Collectively, we’re exposed to over 80 million ounces of gold resource within our 195 royalties in our portfolio. That is poised to grow given the amount of exploration that’s being conducted on those major projects, whether it’s Fenelon, whether it’s Canadian Malartic, whether it’s Côté, REN, the undergrad extension of Goldstrike. These are all chunky long life assets in the best jurisdictions in the world. And as they grow geologically, our exposure to them grows from a royalty perspective. And so, we provide that meaningful leverage to exploration success. That’s the beauty of the royalty model, well -- having to pay for any of that expiration. Beyond this year and next, we’re seeing meaningful revenue growth from Côté as it comes into production, end of next year, as I mentioned earlier on that’s the second biggest gold mine and will be the second biggest producing gold mine in Canada when it’s up and running. And we have a royalty on the highest grade portion of the pit where they’re going to be mining as -- on a priority basis at early stages of that mine life. And then, the revenue growth will start to kick in from Canadian Malartic at the Odyssey underground, as it starts to mine more and more from the underground portion of that project is a transition from open pit to underground. And we have many, many other levers for revenue growth going forward. As I said, we have 21 projects in various stages of development. That provides meaningful revenue growth for many, many years to come.

Terrific. David, that’s a great overview. Thank you. I often like to end with this question, which is when you drive home at night with all the changes that have happened, the ups and downs, we started talking with the Ely Gold, transaction. So many things have shifted and moved since then. What do you get most excited about as the head of the Company for long-term? You described some in detail just now, but I’m curious what David thinks himself that perhaps we often don’t have a chance to hear.

Well, it’s the infinite optionality that we have in our portfolio. I talked about the six that are in production, the 21 in development, but then we have 160-plus other royalties, the provider of shareholders, infinite optionality. They get no value in the marketplace, and I don’t need all 165 of those to hit, 5 or 10 of them will do. And they will provide outsize growth in terms of value, cash flow, exploration upside for our shareholders for many, many years to come, for decades, if you will. We have a foundational element to our story. That’s the envy of every other smaller cap royalty company in the space. How many companies have royalties in the three biggest gold mines in North America, Canadian Malartic, Côté and Goldstrike? We have that, and we are only a little over a year old. So, it’s incredible what we’ve been able to accomplish. And then, we have all that optionality that we have talked about beyond those foundational assets. So, that gets me very, very excited.

Very Good. I hear that loud and clear. David, it’s always a pleasure to joining with you in these town halls, and our thanks to John for joining us for the time that he cared. I appreciate that. This is why we do what we do is to bring companies and investors together to learn, be informed and make very educated decisions of where they want to put their investments as they move forward as investors. So, thank you for bringing all you have today. We look forward to watching the Company in the coming months. And we’ll also look forward to another great town hall. I’m sure that’s not too far away.

We are looking forward to that next quarter. Thanks everybody for attention this morning.

Terrific. Thanks so much, David. And thank you to everyone joining us today. We just want to thank you for being part of this. Your energies are key part of why we do what we do. And here is John for the final bow as we say thank you very much for your time. So, that’s fine gentleman from Gold Royalty. That was a brief cameo apparently, but, it was nice to see a little bow at the end of the show. So, thanks for that. Wishing everyone a great day and we look forward to the next time to meet you here at good conferences. Bye for now.

Thank you.