Gold Royalty Corp. Seals Major Deal for Pedra Branca Gold and Copper Royalty Acquisition

Gold Royalty Corp. Acquires Pedra Branca Gold and Copper Royalty

December 8, 2025
Gold Royalty Corp. (NYSE American: GROY) has announced an exciting new phase for its operations with the acquisition of a royalty associated with the Pedra Branca mine located in Brazil. This transaction, worth $70 million in cash, is expected to significantly augment Gold Royalty’s cash flows and overall asset portfolio.

The Pedra Branca mine is a functioning copper and gold mine, which is currently operated by BHP Group Limited through a subsidiary. This acquisition underscores Gold Royalty's strategy to capitalize on high-quality assets within the minerals market, particularly as commodity prices, especially for gold and copper, are witnessing a notable surge.

Overview of the Transaction

Gold Royalty's decision to acquire the Pedra Branca royalty from BlackRock World Mining Trust plc verifies its strong stance in the precious metals market. For the fiscal year ending June 30, 2025, the previous royalty holder recorded approximately $7.9 million in royalty expenses, translating to about 2,800 gold equivalent ounces (GEOs). Conclusively, Gold Royalty expects this new asset to foster substantial cash flow, especially given the current favorable pricing climate for gold.

David Garofalo, Chairman and CEO of Gold Royalty, remarked on the advantages of this acquisition, positing that it is a significant addition to their portfolio, now encompassing eight cash-flowing assets along with a robust pipeline of over 250 royalty and streaming interests.

Benefits of the Royalty Structure

The Pedra Branca royalty operates on a 25% net smelter return (NSR) for gold and a 2% NSR for copper. This structure not only amplifies Gold Royalty’s exposure to gold revenues but also brings in a timely addition of copper exposure. The demand for copper is projected to rise, particularly in light of the global shift toward renewable energy solutions, making this acquisition well-aligned with market trends.

Adding further promise, the royalty covers both the Pedra Branca East and West deposits, offering full exposure without any diminishing return options that could limit potential future earnings.

Quality of the Asset

Located in Brazil's Pará state, one of the most prolific mining regions known for its high-grade resources, Pedra Branca showcases promising potential. It commenced production in 2020, operating at an impressive rate of around 800,000 tons per year. BHP's acquisition of Pedra Branca from OZ Minerals in 2023 illustrated confidence in the mine’s longevity, an assertion further backed by reported increases in mineral resources and reserves.

With a strategic emphasis on quality, BHP, alongside OZ Minerals, has successfully extended the mine's productive life. The latest estimates from BHP's annual report reveal substantial measured mineral resources and proven reserves at Pedra Branca, highlighting its viability and potential for continued profitability.

A Bright Future For Gold Royalty

The transaction awaits completion pending customary closing conditions. Once finalized, Gold Royalty will begin to reap the royalty payments, enhancing its financial position substantially moving forward. The acquisition strategy adopted by Gold Royalty not only boosts its current operations but strategically positions it to leverage the likely upward trajectory of gold and copper prices in the coming years.

As Gold Royalty maintains its focus on expanding its portfolio through strategic acquisitions, the Pedra Branca royalty stands as a testament to its commitment to invest in high-quality mining operations while generating remarkable long-term returns for shareholders.

In conclusion, this acquisition is a substantial milestone for Gold Royalty Corp., promising to enhance cash flows while enriching its asset network within the minerals sector, showcasing an optimistic outlook for future development in gold and copper markets.