GROY - Gold Royalty Corp.: A Look At The Valuation After The Drop

• Gold Royalty Corp. released its fiscal Q2 results last week, reporting quarterly revenue of $0.64 million, a double-digit increase on a sequential basis.
• The increase in revenue on a year-over-year basis was driven by acquisitions completed last year which have added producing royalties to the portfolio (Isabella Pearl, Marigold, Canadian Malartic, Jerritt Canyon).
• However, while this increase in revenue is a step in the right direction, GRC continues to be one of the most expensive names sector-wide, trading at ~100x FY2022 revenue estimates.
• So, while the recent decline in the stock might make investors anxious to jump into this story, especially given the massive portfolio of assets, I continue to see far better value elsewhere in the sector.

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