Our business model is focused on managing and growing our portfolio of precious metals interests through the acquisition of additional royalties, streams and similar interests. We do not operate mines, develop projects or conduct exploration. We believe that the advantages of this business model include the following:
- Lower volatility through diversification. By investing in precious metals interests across a spectrum of geographies, we reduce our dependency on any one asset, project or location.
- Exploration upside with less risk. We have limited direct financial exposure to exploration, development, operating and sustaining capital expenditures typically associated with mining projects, while generally maintaining exposure to potential upside attributable to mine life extensions, operational expansions and exploration success associated with the assets underlying our interests. As our interests are non-operational, we are not required to satisfy cash calls to maintain our interests in such projects.
- Focus and scalability. As our management team and directors are not encumbered with making and implementing operational decisions and tasks associated with mining projects, they are free to focus on executing our growth strategy. We expect that this will allow us to leverage our business model by establishing a larger and more diversified portfolio of precious metals interests than would be typical in an operating company.
In comparison to mining companies, exchange-traded funds, and funds that hold physical commodities, Gold Royalty offers investors:
- Exposure to Commodity Prices while having Fixed Operating Costs
- No Development or Sustaining Capital Costs
- Exploration and Expansion Upside Without the Associated Costs
- Diversified Asset Portfolio
- Ability to Grow Without Increased Management