Welcome to another podcast - you’re listening to the Royalty King.
A name I did not choose but rather was given to me by my good friend and fellow sub-stacker Stephen the one and only
.I’ve decided to go all in on this re-brand, changing the name of this publication and my social handles as I’ve become truly obsessed with this type of business model since my eyes were really opened to its superiority by James Davolos of Horizon Kinetics. (see below)
In this podcast episode, I had the pleasure of hosting David Garofalo, CEO of Gold Royalty Company - NYSE: GROY to discus the company's vision, rapid growth, and unique business model in the mining sector. David shares insights on the company's asset breakdown, cash flow dynamics, and future projections, emphasizing the importance of optionality and strategic growth in a challenging market. The conversation also touches on the company's approach to financing, valuation, and shareholder value, providing a comprehensive overview of Gold Royalty's position in the industry.
Long term subscribers will know how much I like this company and how much I was pounding the table on the case for the stock less than a year ago when it was trading in the $1.20 range (see below).
The stock was so cheap I’m amazed Steve didn’t buy some - maybe he secretly did!
Although the stock price has now appreciated ~85% YTD, I still believe there’s decent value there given the growth platform ahead of it which, as David explains, is 100% all paid for in advance and yet the stock still trades at a discount to estimates of both NAV and book.
I really hope you enjoy this interview as much as I - and don’t forget - you can see their presentation at the RULE symposium by purchasing your ticket below.
This is how I really got conviction in the company, from reviewing their presentation at last year’s symposium several times.
Rule Investment Symposium July 7-11 - Get your tickets here before it’s too late.
Chapters
00:00 Introduction to Gold Royalty Company
01:26 The Vision Behind Gold Royalty
03:33 Rapid Growth and Market Positioning
07:11 Asset Breakdown and Future Projections
09:04 Business Model and Cash Flow Dynamics
12:01 Copper Diversification and Future Opportunities
13:22 Scaling Up and Production Projections
16:13 Free Cash Flow and Operational Efficiency
18:35 Balance Sheet and Financing Strategies
20:18 Valuation and Market Perception
22:52 Consolidation and Growth Strategy
26:01 Return of Capital and Shareholder Value
27:27 Optionality and Future Growth Potential
31:14 Conclusion and Contact Information
P.S. Love the episode? Re-stack with your thoughts or questions—I’d love to hear them!
⚠️ Disclaimer: This is not financial advice. I document my investment journey for informational purposes only. Do your own research and consult a professional before making investment decisions.
Share this post