So, to sum up, and again, thank you for your kind attention. We’ll take questions shortly. The royalty model is the superior model in order to participate in an unmitigated basis to leverage in the gold price, we’re protecting our shareholders from cost inflation as a result of our top line revenue exposure. We have diversification that no operating company can hope to achieve with over 240 royalties across the portfolio. And across the lifecycle of a mine, from production right up to early stage exploration, we provide a lot of optionality in addition to that revenue growth. As the gold price goes up, that option value will start to be crystallized in the marketplace, in our view. And also, again, free exploration upside. As a result of the exploration efforts of our 80 plus royalty operators or operating companies within our royalty portfolio that invest significantly in exploration around their existing mines and deposits in order to achieve reserve and resource upside, which we benefit from in our royalty portfolio without actually having to contribute to it.
But I think what’s also important about our story, and it’s quite unique among the royalty players, even the large cap players, is we have four distinct legs of growth, which none of the royalty companies in our space do, and that includes M&A, which we did quite aggressively over the course of 2021, we had much stronger currency. We IPOed $5 per share, and we had strong currency over the course of 2021. We recognized our relative multiple advantage and we used it to the advantage of our shareholders to accumulate significant critical mass and diversification through M&A efforts as we acquired three companies. When the currency abandoned us, as the Federal Reserve started to tighten interest rates in early 2021 or 2022, I should say we started to look at other means of growth and that included third party royalty acquisition, as we did with Cote.
We bought that from the state of a deceased prospector, and that’s going to deliver significant revenue growth for us this year. We did through project financing, as well as we did recently with Aura Minerals and the Borborema project in Brazil. And then we also generate royalties organically through our efforts, principally in Nevada, where Jerry Baughman runs our U.S. business. He stakes exploration claims around existing mines and deposits and generates royalties not only for free, we actually get option payments for the royalties we generate as we farm those properties out to the operators and explorers. Last year alone, we generated almost $3 million of option revenue through our royalty generator model, and we generate two to three royalties per quarter.
Doing that again, not only for free, but we actually get paid to generate those royalties. No other company in the royalty universe grows through all four means, and I think that’s a testament to the depth and breadth of our management team, which collectively has over 400 years of industry experience. That gives us the advantage of being able to grow through multiple means and access royalty opportunities through leveraging our relationships in the industry. So with that, Joanne, we’d be delighted to take questions from our shareholders.
A – Joanne Jobin: Excellent. First of all, thank you, gentlemen, for a fantastic update. We really have a global, full house audience today, so thank you to the audience for tuning in this morning. Really means a lot to us. Before we take questions, just a reminder to please place your questions into the Q&A tab located at the top of your screens. And the first question for today is, David, if possible, could you please comment on the Arizona Metals’ Kay Deposit in Arizona, which is approximately 45% gold, 45% copper, and still drilling. Just curious if you have any opinion on them.
Andrew Gubbels: David, just to get ahead of you on that. So we don’t have a royalty over Arizona Metals’ Kay deposit. It’s an interesting deposit. We know the Arizona Metals team. But from our perspective, it’s interesting. We don’t have a royalty, which there is on a Metals team, the best. But it’s not something within our portfolio.
Joanne Jobin: All right. Well, then that’s been answered. And I think there’s been questions regarding the royalty generation model, which you answered and summed up in the last part of your presentation, David. So I think we’ve answered that question. So next question. How many of your projects will become producers within this gold cycle?
David Garofalo: Peter?
Peter Behncke: Yes. So currently, with six cash flowing assets, we do see several assets ramping up and entering production, named a few already, REN, Odyssey, Granite Creek, other potential development stage assets include Gold Rock. So we’re approaching 10 to a dozen producing royalties by the end of the decade, if that’s how you want to define this gold cycle.
Joanne Jobin: Okay. Questions on Côté. Are they on track for production and ramp up in 2024?
Peter Behncke: Yes. So based on all information and as I noted, from IAMGOLD, they’ve indicated production by the end of March, which is imminent and really ramping up to commercial production in the second half of the year in Q3.
David Garofalo: I think the one thing that gives me significant comfort as a royalty holder is the fact that they have 5 million tons of ore stockpiled, ready to go into the mill. And I think that’s extremely important. Having been a mine developer myself over my career, having a consistent feed of ore during the commissioning phase is extremely important to optimize the metallurgical recoveries and get a consistent production level from the operation. So they’ve done an exceptional job in that regard, and that gives me some confidence that they’ll have a relatively smooth ramp up.
Joanne Jobin: Thank you. Lots of questions on the dividend. Do you foresee reintroducing or entering back into the dividend phase?
David Garofalo: Look, I think as we get into free cash flow territory and sustainable free cash flow is the conversation that I know my Board would be delighted to have returning capital to shareholders on a consistent basis. So I don’t want to get ahead of ourselves. But we are entering the free cash flow territory this year, which is a great place to be.
