Good morning, everyone. I'm your host, Joanne Jobin, and I'd like to welcome you to the Gold Royalty Town Hall Forum hosted by VidMedia. Today's town hall will be focused on Gold Royalties' Quarterly Performance including Financial Results and will be hosted by CEO, David Garofalo, CFO, Andrew Gubbels and Peter Behncke, who is the Manager of Corporate Development and Investor Relations. After the presentation, I will be delighted to moderate submitted questions from our audience. And now a few words on the company. Gold Royalty Corp. is a pressure metals-focused royalty and streaming company, offering creative financing solutions to the metals and mining industry. It currently has a diversified portfolio of over 190 royalties located in mining-friendly jurisdictions throughout the Americas. The company's business model includes acquiring royalties, streams and similar interest at varying stages of the mine lifecycle to build a balanced portfolio offering near, medium and longer-term attractive returns for you, the investor. Now one more item before we commence. If you do have any questions, for the company, please place them into the Q&A tab at the top of your chat sessions. And please ensure that you fill in the short questionnaire at the end of the presentation. This really helps us and the company communicate more effectively with you for future town halls. And before I turn it over to the team, please note the forward-looking statement at the beginning of this presentation. David, the stage is yours.

Well, good morning, everybody, and Joanne, thank you so much for the kind introduction. As Joanne said, I will be joined shortly by Andrew Gubbels who will talk about our quarterly results for the second quarter, and then Peter Behncke will talk about the portfolio and update on our many assets with a diversified portfolio. But what I thought I'd do to, kind of launch this discussion with you today is talk about the broader business, the gold markets, the state of the equity markets, and our prospects going forward, and the growth that we've achieved, and expected to achieve going forward. So thank you so much for your time today. I'm delighted to take questions after our presentation, and have a more fulsome discussion over the course of this hour. But thank you so much for your time today over the summer weekend. What I thought I'd do, is what I'd like to welcome our existing shareholders delighted that you could join us today, but I thought for the newer shareholders, just give you a brief overview of the business. We are a precious metal-focused royalty company as the name of the company might indicate. But I would also say that while we're focused on precious metals, we have a very well-diversified portfolio with over 220 royalties in the portfolio, across the Americas to have diversified asset exposure. And I would say that's the beauty of the royalty model, is that we can offer a measure of diversification far beyond what an operating company can offer. There's a practical limit to what even the biggest gold producing companies can manage within their portfolio, no more than maybe a dozen assets. There's really no limit to the amount of diversification, we could achieve in our royalty portfolio, because we're not…

Thanks, Dave. As Dave mentioned, I'll run you through some of the highlights of our second quarter. In Q2, you'll note we've maintained our financial guidance of $5.5 million to $6.5 million of revenue and land agreement proceeds for the year. Now this is despite lower revenue in the second quarter, which has really been due to resequencing of production within the Barnat Pit at the Canadian Malartic mine. We are confident that, that cash flow expected from Malartic will be substantially recovered in the second half of this year. And as a result, have maintained our financial guidance for 2023. Our Q2, 2023 cash operating costs were down 30% compared to the second quarter of 2022. Now this continues a trend, which occurred in the first quarter, and we expect to continue going forward as well, and has been a concerted effort to focus on ensuring we have cost discipline in our business, which has been borne out in the last two quarters. The lower operating cost has helped offset the lower revenue, as I mentioned before, and contributed to an unchanged adjusted net loss per share of $0.02 in the quarter. We're also on track to meet our expectations for recurring cash operating costs of between $7 million and $8 million for the year. In the quarter, our operators, including Agnico Eagle, IAMGOLD, Barrick Gold, Walbridge, and i-80, amongst others, all announced positive developments at their respective projects. Given the weighting in our portfolio towards the growth end of the market, this has further derisked our world-class portfolio and giving us even more confidence about our future. To complement the positive momentum of these growth assets. As Dave mentioned previously, we announced the acquisition of the producing Cozamin Royalty at the end of July. This royalty adds immediate…

Thanks, Andrew. So continuing to speak to the recent acquisition of the Cozamin Royalty. This was really a strong complementary fit to our existing portfolio. It's widely known that we have a development, and exploration heavy portfolio with a lot of very strong key assets coming down the pipeline and entering production in the near-term. However, Cozamin immediately stimulates our revenue and our free cash flow in 2023. Also, with Cozamin being operated by Capstone Copper, a multibillion dollar producing company, it really fit in well with our existing suite of operating partners that represent the largest gold mining companies in the world such as Newmont, Barrick and Agnico Eagle. An important point on this chart, the pipeline of exploration development and producing assets is that it's dynamic. We've seen several advanced exploration assets move forward towards development. Assets like Fenelon, have a PEA defined around them and seeing those projects move towards production over the next several years. And we'll continue to see that in future quarters as early exploration stage assets have resources delineated on them, given the significant amount of drilling that's been completed across the portfolio, and more economic studies completed across the advanced exploration stage assets within our portfolio. What this pipeline delivers to us is peer-leading revenue growth. Despite a lighter Q2 in revenue, our long-term outlook based on consensus estimates of revenue growth are unchanged. We see several assets coming online over the next few years. Canadian electric ramping up at Odyssey and now the addition of Cozamin into our revenue profile, fueling our revenue growth over the next three years. Beyond 2026, towards 2027, 2028 at the end of the decade, we see even more significant revenue growth as Odyssey fully ramps up as an underground operation at Canadian Malartic, specifically with…

Well, thank you very much, Peter. And we will open it up to Q&A first. But what I thought I would do is just again, summarize the compelling story behind Gold Royalty, the opportunity we see in terms of tremendous growth, but also deal head on with the fact that our stock has been significantly underperforming over the last year or so. And I think we're in a market right now where growth is very heavily discounted given the rising interest rate environment. As I said earlier on, we've seen in the bellwether stocks in the industry significantly underperformed the general equity markets. The largest cap players in the gold universe are half the valuation they were back in 2020 when the gold price was last through $2,000 an ounce. We've been significantly hit on a relative basis, because growth has been very heavily discounted. This is a very growth oriented story with 60% compounded growth through the end of the decade in our revenues. It puts us in a position to start to generate strong free cash flow next year and start to talk about reintroducing our dividend, growing that dividend over time. But in the meantime, in this market, the smaller cap universe has been very severely discounted and particularly, the names that have more significant growth. But what we've been able to control is our cost structure. And with Andrew's joining the company less than a year ago, we've seen a significant reduction in our cash operating cost well over 30%. And so our margins will continue to expand, as we start to see that revenue growth crystallize over the next year, particularly with Cote coming on next year, that will represent a significant step change in our revenue, and start to see free cash flow generation by the middle of next year, which puts us in an excellent position to continue to fund growth within our portfolio. And we have delivered significant value. We have to focus on value in this very difficult market for gold equities, and we've been doing that by driving down our costs and adding high-quality assets in the portfolio like Cozamin did not only deliver short-term cash flow growth, but offers another long-term long-life asset to provide an annuity for our shareholders and growth in our revenue for the long-term as well. So with that, Joanne, we would be delighted to take any questions from our investors today.

Thank you, David, and thank you for taking that question about being undervalued. That is one of the questions I was going to bring forward to as there have been a few shareholders or people on today, that have been asking about that. So it's great to see you talking about that first and foremost. All right. So let's get on to our first question, which has to do, of course, with the dividend. We're getting lots of questions about that. And are you going to reinstate it? Or are you just going to keep investing in the properties that you have or potential M&A that you see coming down the pipeline?

It's a suspension of our dividend for the time being. We do expect to be free cash flow positive next year. It's something that we're going to reintroduce at the right point, but we were faced with an opportunity to bring in a very high-quality asset of the portfolio in the face of a market where capital is very scarce. The smaller cap players in the gold universe, whether it's junior explorers, royalty companies, are not able to raise fresh capital. So what we're having to do is reallocate scarce internal capital. And I would add, we've added the Cozamin deal without any dilution to our shareholders. We've grown the value of our business by doing that, but also added cash flow per share growth, immediate cash flow per share growth by introducing a very high-quality long-life deposit into - and mine into the portfolio.

Okay. Great. Next question. What are the main areas for cost savings and for further decreases in cash costs, because you did such a great job with Andrew this year or this quarter?

Thank you. I could take that. Thanks, Joanne. The main areas for cost savings was really I guess, first and foremost, I think people on the phone are aware that the company grew quite quickly since its inauguration through a couple of corporate acquisitions in particular. With those acquisitions came consolidation of some corporate entities, there was some overlap in enrolls within the company. I think some of the savings have come from a decrease in consulting fees and professional costs by bringing in administrative activities in-house in Vancouver. There has been a focus on sharper negotiations with our insurance providers, and particularly with our track record year-on-year, we've been able to bring some of the insurance costs down. We've taken a more holistic view on some of the cash spent on marketing activities and really focused on the most value-add areas. And I think lastly, with respect to just general office and IT spend, just tightening up in areas where I felt we could make some tangible savings. So all in all, I think with where we're tracking and with the line of sight on what our peers are doing, I think we've done a great job of bringing those costs down. And I expect with the team we have we should be able to operate the company on a very efficient, effective manner on the cost base that we're projecting for 2023.

Thank you, Andrew. I'm going to ask you this question again, because I think you did address it when you at the top before you got into Q&A, but can you comment one more time on why you think other royalty companies are not down as much as gold royalty.

Well, I think the reason is, quite frankly, in a rising interest rate environment, any growth-oriented stock not only in the mining industry, but it sits more broadly has been very severely discounted. This is not a market that's paying for growth. It's paying for free cash flow today. It's a very defensive market, particularly in the commodity space. And the ones that offer that free cash flow immediately are the ones that are getting at least better relative valuations. The whole sector is down dramatically. There's been a severe compression of multiples in the sector generally. But the ones that offer free cash flow now are generally, the ones that are providing defensive postures in a declining market for gold equities problem or broadly speaking.

Thank you, David. So what is the mix between royalty revenue, and land agreement proceeds for the year?

Yes. So outlined in our recent financials, we're expecting approximately $3.2 million in land agreement proceeds in 2023, assuming all existing option agreement, agreements are fully exercised by the counterparty. The way we structure these agreements through our royalty generator model is really to incentivize the operator to move forward the assets and the price jewel for us is retaining a royalty on these assets. So, we do fully expect that, that $3.2 million is realized. And then the balance of our guidance of $5.5 million to $6.5 million will be made up in royalty revenue this year.

And I just want to emphasize the unique aspect of that pillar of growth within our business. We're not only generating those royalties for free. We're getting paid to generate those royalties for our shareholders. Jerry Baughman, in particular, in Nevada, he stakes exploration claims around existing mines, existing deposits, waits for the neighbors and knock on the door and says, Yes, you can have the property, but you're going to have to pay me an option payment, you're going to have to make a work commitment on the property, and you're going to have to give me a royalty. So, we're not only getting the royalty back free through very sweat equity, you're giving us options as we're exploring those properties. So it's going to come a meaningful pillar of our revenue going forward. We're not assuming that we're going to be able to stay long-term. When we look at our projections of our revenue, we just only included our revenue projection for one for we have submitted option agreements today. But the reality is this is a sustainable business. This is a business that will continue to deliver revenue for the long-term, given the expertise that we have in the ground through Jerry and his small team's efforts in Nevada, in particular.

I think, I'll just add to that. It's a very cost-effective business as well. Our mineral interest, maintenance expenses in the first half of the year is only about $80,000. We've cut Jerry salary. He's really one man team for the most part. So, the costs of this business given the cash flow it brings in is a great addition to our normal course royalty business.

Okay. Excellent. Next question. What is your expected ROI on your latest announced royalty acquisition?

Yes. Yes. So based on our estimates and the historical revenue from Cozamin, pick your copper price, but IRRs are estimated between 8.5% and 12.5% for the Cozamin acquisition. So quite accretive, and very competitive based on other precedent transactions recently, especially given the quality asset, and the fact that it is immediately cash flowing.

And I should add, that's just assuming reserves to the end of 2030 if you include resources, and they've had a very strong track record of converting resource to reserve that would bring the mine life out to 2036. And just remember, Cozamin started production in 2007 with about five years of reserves ahead of it. And here we are, almost 20 years later, it's still producing, still adding reserves, so very prospective with a very well capitalized, strong operator in Capstone.

Thank you. Next question. Why was Canadian Malartic revenue so low for this quarter? And will this revenue be made up in future quarters?

I can start with that. The Canadian Malartic revenue, and I must say Canadian - Agnico Eagle through the Malartic operation is one of our best operators in terms of providing us advanced notice of expectations on their mining throughout the year. So, we do have a plan from them for the year and expectations on -- which would help us with our projections. Simply put, given how mining is progressing within the Barnett pit and where our royalty sits, and number of mining companies do this throughout the year, there has been some changes in their plan in terms of resequencing mining. We've been assured that the ounces will come. It's a matter of a decision that the team at Agnico made throughout the first half of this year in terms of where they mined in that pit. As I mentioned before, we haven't made adjustments to our expectations in the back half of this year. In fact, we expect probably a little bit more from what they told us initially to catch up some of the revenue with the remainder coming through 2024. So, from our perspective, we're very comfortable with respect to what the team at Agnico is doing. Inherently, One of the major benefits of doing transactions such as Cozamin, it provides additional diversification of our cash flow sources. Because and some of our mining partners do make decisions throughout the year in terms of where they mine. Looking forward with respect to Canadian Malartic and Odyssey as the mine heads from an open pit to going underground. I'm comfortable and confident that we will see more consistency in the cash flow profile from Canadian Malartic. But in this particular case, it really is - just a resequencing of where the production happened throughout the year.

Thank you, Andrew. And Mr. Murphy from the U.K. wants to know next year, the three-year warrants from the IPO expire. Is there any plan to extend their expiry date, given the outlook in the sector in general in the last 12 months?

No, there's not.

Okay. Is the company still focused on growth through consolidation?

Well, I think there are several avenues for us to grow. I think consolidation is more difficult in this depressed environment. It's very difficult to have a conversation on M&A with a counterparty whose share prices are plumbing 52-week close as well. There's not a lot of financial incentive to look - for them to look at consolidation in the sector. So I think you'll see a lot of consolidation in the producer universe, all of whom are dealing with declining reserves and production or having to do that out of existential necessity. But I would say it's more difficult in the royalty universe where all the royalty companies are experiencing depressed valuations currently, at least in the small cap universe. I think we're going to continue to grow through other avenues. I talked about our royalty generator model. We continue to generate two to three royalties per quarter, and that adds to our revenue through the option payments we get on that royalty generation and it continues to pile-on which is positive. We'll continue to look at the acquisition of third-party royalties as we did with the Cozamin transaction, which delivered very strong rates of return on a high-quality long-life deposit and a high-quality operator. And from time-to-time, we'll look at project financing. Given the scarcity of capital in the gold universe, particularly for the junior explorers and developers, we're seeing more and more opportunities to help them finance their businesses. And what will drive our decision to acquire those assets is the length and quality of the life of the mine, the deposit quality of geological quality is what we're acquiring, but also is this something that will be cash flowing either immediately or in the very short-term to add to the cash flow growth that we're going to have in the short to medium term.

All right. And speaking of M&A and organic growth, how are we being protected from a takeover?

Really, there's nothing to protect us from a takeover other than good share price performance. And obviously, we've underperformed, and I understand that. I understand the frustration that our shareholders have. But as long as we're continuing to fundamentally add value to our business, block-by-block, asset-by-asset, that is the best production. Ultimately, the market will pay you for that growth, particularly when it's crystallized. In this market, it's a show me type of market, show me the growth, and then we'll pay you for it in better markets, when there's some momentum in the commodity and there's some momentum in the equities, the market starts to anticipate that growth and pay for it. We're not in that market today, unfortunately. But we will continue to do good fundamental as things with our business add good fundamentally - good fundamental assets to the portfolio. As we've done with Cozamin, as we've done with Granite Creek last year and bringing good shareholders like Barrick and Newmont, good strategic shareholders, GoldMining, who vended our initial assets into the portfolio, long-term strategic investors that support the stock, because they understand the strategic vision, adding value over time with good long life, high-quality assets in the best jurisdictions in the world.

And since you've already spoken about future cash flow, which you expect in the next quarter, can you talk a little bit about a potential buyback program? Would you consider it?

Yes. And to me, that's the flip side of the same coin is the dividend, buying back stock, returning capital to shareholders in any form is something we will look at as we start to generate free cash flow. We get back into free cash flow positive territory, we're getting to it for the first time next year, making sure that we do the things that drive our share price up, like returning capital to shareholders in whatever form is something that we're going to keep a keen eye on. At the end of the day, royalty companies are a collection of annuities. And there's no reason, we shouldn't share those annuities with our shareholders in the form of returns of capital in whatever form.

Okay. And can you comment about the Monarch deal allowing buyback of royalties

Yes. No, absolutely. In that case, Monarch was in financial difficulty last year. In that case, we restructured the royalties in order to make them more attractive on their exploration properties - is your exploration stage you've to surround Brownfield Beaufor project. In fact, if those buybacks are exercised, we get all our capital back that we put into Monarch from day one, but we've retained fully the royalties on the Beaufor mine and Beaufor mill.

Great. And maybe we can just one more time, reiterate how many assets will be producing by 2024, and then we can wrap it up as we are at the top of the hour.

Peter?

Yes. So we'll have five cash flowing royalties expected in 2024 with Cote entering production in addition to the four existing cash flow royalties. We have currently Cozamin Canadian Malartic Isabella Pearl and Borden.

Great. So as I said, we are at the top of the hour. So, we will end our town hall. But before we go, David, would you like to say a few words to the shareholders and audience members?

I'd just like to say thank you for your time and your patience today and your questions, and please don't hesitate to reach out to us directly, whether it's through our website and through our 1-800 number through e-mails were all available and accessible and happy to talk to you individually.

Thanks, David, and thank you, team, and thanks, everyone, for tuning in. The presentation will be on the website. We've had a few questions asking about that. And we will see you soon on the next Vid Town Hall Forum. Please don't forget to fill out the questionnaire as you exit. Goodbye, everyone, and thank you for tuning in.