GROY - Gold Royalty Corp. (GROY) Q4 2023 Earnings Call Transcript
2024-03-28 13:40:23 ET
Gold Royalty Corp. (GROY)
Q4 2023 Earnings Conference Call
March 28, 2024 11:00 AM ET
Company Participants
Joanne Jobin – VID Media
David Garofalo – Chairman and Chief Executive Officer
Andrew Gubbels – Chief Financial Officer
Peter Behncke – Director-Investor Relations and Corporate Development
Conference Call Participants
Presentation
Joanne Jobin
Good morning. I'm Joanne Jobin, your VID Media host. Welcome to the Gold Royalty Quarterly Town Hall Forum. Before we commence just a reminder that if you do have any questions for the company, please place them into the Q&A tab located at the top of this screen. After the presentation, I will be delighted to moderate submitted questions from our audience. With us this morning is the Gold Royalty team, led by Chairman and CEO, David Garofalo, who will make the intros to the team and take you through the highlights of the most recent quarterly results.
David, the stage is yours.
David Garofalo
Thank you, Joanne, and good morning, everybody. We're delighted you could join us to talk about our fourth quarter results. I'm joined today by our Chief Financial Officer, Andrew Gubbels; and our Director of Investor Relations and Corporate Development, Peter Behncke. And I'll pass it on to them shortly. But I thought what I would do to start today is talk a little bit about the gold price environment that we find ourselves in, and I think it's been an auspicious start to the year. Many of the themes that we were talking about over the course of 2023 and even before that have really come to pass in terms of a rising gold price in the face of falling real interest rates. Inflation is still quite deeply entrenched.
The headline numbers really understate the reality on the ground. We're not experiencing 3% or 4% inflation fact, if you look at our day to day expenses, whether it's food, fuel, or shelter, and as we see interest rates reset on mortgages, we're seeing 15% to 20% inflation on the ground. And gold is a very accurate barometer of the inflation we're experiencing and where real interest rates lie. Yes, interest rates have stabilized on a normal basis. They have gone up significantly in the last couple of years as the Federal Reserve and other central banks have tightened monetary policy, but the reality is inflation's continued to accelerate. So that's driven real interest rates down deeper and deeper into negative territory.
What gold is telling you is the purchasing power of your fiat currencies is steadily being deteriorated through inflation. You're losing your savings through inflation. Gold is the ultimate protector of your capital because it's the one currency can't be printed and it's telling us that inflation is still undermining the value of our paper currencies, and we'll continue to do so. The Federal Reserve is starting to pivot, or at least signaling that they will, and going to be cutting nominal rates, and I would argue that's actually quite premature. It's not going to be as a result of inflation coming down. It's because of the onerous debt levels that we've stopped on globally, at the government level, corporate level, and individually at 350% to debt to GDP, interest rates right now, nominal rates make debt unserviceable....
Gold Royalty Corp. (GROY) Q4 2023 Earnings Call Transcript