Andrew Gubbels: Thanks, David. Okay. Let me start off with the revenue line and what we’ve already indicated as 2024 GEO guidance. In 2023, GEOs of 2,703 ounces were largely driven by revenue from Canadian Malartic, Borden and Isabella Pearl royalties and a partial year of revenue from Cozamin and land agreement proceeds from our – really our royalty generator business. In 2024, we expect to effectively double our GEOs and in turn, our total revenue, land agreement proceeds and interest. And that’s for several factors. First, from our existing operations, we see GEO enhancement from our operating mining partners in areas whereby Gold Royalty has even more royalty coverage. We see this at Borden, Cote and Odyssey in particular, where operations are actively expanding or transitioning into new areas in the near to medium term.
Also, our recent acquisition of Cozamin and Borborema royalties will provide incremental revenue in 2024, relative to 2023. Those are strategic acquisitions that are major contributors to what we’ll see in the coming year 2024 and beyond. And finally, as I mentioned before, our royalty generator business continues to generate new royalties and create new sources of revenue, which is in the form of land agreement proceeds for the year. Now from an operating cost perspective, 2023 was a year whereby Gold Royalty strengthened its foundation after two years of fast-paced growth via consolidation. Now this included, as I mentioned before, the strategic acquisitions of two quality cash-generating assets, in the form of Cozamin and Borborema, but also involved the rationalization of the company’s corporate overheads.
2023 saw cash operating costs decreased by 36% from $12.6 million to $8 million, as the company eliminated redundancies, centralized operations and optimized its service agreements throughout the year. In 2024 and moving forward, we expect recurring operating expenses to be within a similar range as 2023. Taken together with higher revenues, stabilized operating costs, we’re confident that our ability to generate positive operating cash flow this fiscal year and beyond. Now beyond 2024, Gold Royalty has an industry-leading growth profile, as forecasted by brokers you see in this page. This will largely be driven by cash flows from projects being developed by large, well capitalized operators, all of which, you know, very well. It includes the continued ramp up of Côté Gold, which just started producing, Aura Minerals Borborema project, whereby we’re being currently earning pre-production payments and Agnico Eagle’s Odyssey underground operations.
Later on in the decade, we do expect to see additional growth from high quality royalties such as Nevada Gold Mines expansion of the Goldstrike deposit, and that’s the Ren royalty. We hope to see that later in the decade. Now, with the stabilized cost structure and no exposure to mine operating exploration or development costs, as Dave mentioned before, every dollar of revenue growth goes straight to the bottom line and increases our available cash flow in the future. Now with that, I’ll pass it over to Peter to provide an update on the portfolio.
Peter Behncke: Thanks, Andrew. So, building on this purely in revenue growth chart, diving in a bit to the assets that are fueling that growth, I think it’s no surprise, and we’ve shown this image before on the pipeline of assets we have within our portfolio, all the way from cash flowing to early exploration. But what I think is important to highlight is the dynamic nature of this pipeline and specifically, the cash flowing bucket of royalties and the work we’ve done over the last 12 months, to focus on supplementing our cash flow profile. Borborema and Cozamin assets both acquired in the second half of 2023, and Côté, an asset that is on the precipice of entering production are all going to provide a meaningful portion of our 2024 revenue.
Beyond that, within the development bucket, we’ve seen consistent positive news from our operating partners advancing those assets towards production, and like Côté, we’re quite optimistic to see several of those gray assets enter the blue cash flowing bucket in the near to mid-term. Two key points I’d like to remind shareholders and investors of, and Andrew spoke to this earlier is the quality of operating partners that are driving forward these assets. David mentioned the $200 million in exploration spend, the significant investment by our operating partners going into these assets. All that benefit accrues to Gold Royalty at no cost. But also these key development stage assets that are being advanced, being developed are in the hands of very well capitalized companies, which in our view is a significant de-risking factor relative to other peers.
I’d also highlight, and it’s quite timely within the royalty and streaming sector, our geopolitical profile with 80% of our portfolio in Quebec, Ontario and Nevada, very stable and safe mining jurisdictions. And I’d note that our key development stage assets are on brownfield sites with very few assets subject to any meaningful permitting risk. These are assets that are being developed near existing operating mines and that significantly, again, derisks the development profile of our portfolio. Now, with 240 royalties, don’t need to expand across all of them, but a few of the specific highlights to bring to your attention, as always, our three cornerstone royalties, royalties on three of the five largest gold mines in Canada or the USA, Odyssey, Côté and Ren, we’re quite excited and we’ve seen positive advancements at all of these assets.
At Odyssey, Canadian Malartic continues its transition to become Canada’s largest underground gold mine, Agnico, with their most recent mine plan update and recent exploration updates continue to emphasize the potential of the internal zones. While nothing definitive has been outlined or disclosed by Agnico, they do see the potential for the internal zones to supplement the underground mine plan over the next couple of years. And beyond that, another key area of upside is the potential for a second shaft, which could increase the underground mining throughput by 10,000 to 15,000 tons per day. This would be a meaningful contributor to the excess mill capacity that is at the Canadian Malartic complex currently. For our royalty in 2024, we’re expecting relatively modest consistent revenue.
