Gold Royalty Corp. (GROY:NYSE) has rapidly positioned itself as a leader in sustainable and responsible mining practices. Since its inception, Gold Royalty Corp. or GROY has expanded its portfolio from 18 to 240 royalties, including five producing projects. This remarkable growth is anchored in a steadfast commitment to sustainability, partnering only with operators who share their values.

GROY is joining other resource companies like Fortescue Metals Group, BHP, and Rio Tinto in leading the charge towards sustainable mining. Fortescue has committed to achieving real zero emissions by 2030 with a $6.2 billion investment in decarbonization projects.

Meanwhile, BHP aims to reduce its operational emissions by 30% by 2030 and achieve net zero by 2050 through renewable energy projects and electrifying operations. One of the world’s largest copper and iron ore miners, it also has a plan to use carbon credits to offset emissions. Furthermore, Rio Tinto has set a goal to reduce its emissions by 15% by 2025 and 30% by 2030, with a long-term aim of net zero by 2050, focusing on renewable energy and innovative technologies.

Gold Royalty’s Key Achievements in Sustainability for 2023

In their recent published report, the company executed several strategic acquisitions, significantly enhancing its portfolio:

• Strategic Acquisitions: The addition of Borborema and Cozamin royalties supplements organic revenue growth from assets like Côté and Odyssey.
• Sustainability-Linked Contributions: GROY’s first sustainability-linked contribution with Aura Minerals aims to enhance social and environmental impact at the Borborema mine in Brazil.
• Low Carbon Footprint: With a portfolio carbon intensity of just 0.25 tons of CO2 equivalent per gold equivalent ounce, GROY leads the royalty and streaming sector in minimizing environmental impact.

Source: From Gold Royalty Corp 2023 Sustainability Report

GROY’s robust corporate governance framework is the cornerstone of its sustainability efforts. In 2023, the company enhanced its enterprise risk management (ERM) process, aligning with the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations. This includes their first disclosure on climate-related risks and opportunities.

David Garofalo, Chairman and CEO, emphasizes, “Our commitment to transparency and responsible business practices ensures that we remain at the forefront of sustainable mining.”

Investing in High-Quality, Sustainable Projects

GROY prioritizes investments in mining-friendly jurisdictions such as Quebec and Ontario, Canada, known for their mature climate policies and cleaner energy grids.

This strategy has resulted in lower carbon footprints for GROY’s assets compared to industry peers. Their portfolio includes royalties on some of North America’s largest gold mines, operated by leaders in sustainable practices.

Community and Environmental Stewardship

GROY’s dedication to community and environmental initiatives is evident in their 2023 accomplishments:

• Community Contributions: Over $20,000 donated to diverse community organizations and the launch of a company-wide volunteer program.
• Environmental Initiatives: At the Cozamin mine, operated by Capstone Copper, strong water management practices and energy efficiency measures are in place, contributing to significant reductions in greenhouse gas emissions.

Cozamin’s initiatives include a dry stack tailings facility that reduces water usage by 15% and achieving 98% energy efficiency. Additionally, Cozamin has committed to reducing GHG emissions from fuel and power by 30% by 2030.

Karri Howlett, ESG Committee Chair, states, “Our partnerships with leading operators ensure that we drive positive social and environmental outcomes.”

Sustainability Goals and Future Plans

GROY’s long-term vision includes decarbonizing their operations and portfolio, conducting business with integrity, and making positive contributions to their communities. Key progress in 2023 includes:

• ERM Program: Effective oversight of corporate and sustainability-related risks.
• Climate Risk Assessment: Aligned with TCFD recommendations and calculated material financed emissions.
• Volunteer Program: Employees given the opportunity to support their communities through paid time off.

Their strategy includes investing in jurisdictions with mature climate policies, like Quebec and Ontario, and partnering with operators committed to reducing their greenhouse gas emissions.

Their focus on electrifying fleets, enhancing site energy efficiency, and adopting renewable energy sources reflects their dedication to sustainable mining. Additionally, GROY’s sustainability-linked contributions, such as those with Aura Minerals, support social and environmental initiatives at mining sites.

Looking Ahead to 2024

GROY anticipates 2024 to be a transformative year. They plan to continue their strategy of sustainable acquisitions while supporting their mining partners’ decarbonization efforts and expanding community investment initiatives.

Major Takeaways:

• GROY’s commitment to sustainability and responsible mining sets them apart in the industry.
• Their low carbon footprint is a benchmark in the royalty and streaming sector.
• Community and environmental initiatives are core to GROY’s business model, driving positive social impact.

By maintaining their focus on sustainable growth and responsible mining, Gold Royalty Corp. is poised to deliver unparalleled value to shareholders while positively impacting the environment and communities they operate in.

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