Royalty Companies: GROY Turns The Corner

After a tough couple of years, the cash is about to flow

Back in 2020, small but high-profile explorer GoldMining Inc. (GLDG) created royalties on its main projects and spun them off into a startup called Gold Royalty Corp. (GROY). In 2021 it took the new company public via an IPO.

GROY got a warm initial welcome from investors, partly because GoldMining’s founder Amir Adani is a rock star in the commodities space and name recognition is half the battle for an emerging company. But the market soon discovered that most of GROY’s royalties were years away from production and, as a result, GROY was a negative cash-flow proposition through at least 2023. Its stock has fallen steadily ever since:

The wait may be ending