VANCOUVER, BC, Dec. 12, 2025 — Gold Royalty Corp. (NYSE American: GROY) announced the completion of its acquisition of a royalty on the Pedra Branca copper‑gold mine, which is operated by a subsidiary of BHP Group Limited. The deal, first disclosed on Dec. 8, 2025, secures a 25 % net smelter return (NSR) on gold and a 2 % NSR on copper and associated by‑products from the mine’s West and East zones, as well as the former Antas North site, now fully depleted.
The Pedra Branca complex, located in northern Chile’s prolific mining belt, combines high‑grade copper oxide and sulphide ores with significant gold streams. By locking in a 25 % NSR on gold, Gold Royalty positions itself to capture a sizable portion of the mine’s projected gold output, which industry analysts estimate at 120,000 ounces per year over the next decade. The 2 % copper NSR, while modest in percentage terms, translates into an estimated 180,000 tonnes of copper annually, leveraging the mine’s low strip ratio and high ore grade to generate steady cash flow.
From a strategic perspective, the acquisition expands Gold Royalty’s footprint beyond its traditional focus on gold‑only royalties in the Americas. The inclusion of copper—a metal poised for a multi‑year demand surge driven by the transition to renewable energy, electric vehicles, and grid infrastructure—adds a diversification layer that can smooth revenue volatility tied to gold price fluctuations. This hybrid royalty structure aligns with the broader industry shift toward multi‑commodity exposure, echoing moves made by peers such as Franco‑Nevada and Royal Gold.
Financial analysts project that the Pedra Branca royalty could contribute roughly $80 million to Gold Royalty’s topline in 2026, assuming a gold price of $2,100 per ounce and copper at $9,000 per tonne. The royalty’s low‑cost, off‑balance‑sheet nature means the company benefits from commodity upside without bearing the operational risks associated with mine ownership, such as capital expenditures, environmental liabilities, or geopolitical exposure.
Technologically, the Pedra Branca operation has recently upgraded its ore processing facilities, incorporating sensor‑based ore sorting and a new leach circuit that improves gold recovery rates from 85 % to over 92 %. These enhancements increase the total metal payable to the royalty holder and underscore the mine’s long‑term sustainability. Moreover, BHP’s investment in renewable energy at the site—particularly solar and wind power integration—reduces operating costs and carbon intensity, aligning the asset with ESG expectations increasingly valued by institutional investors.
Risk considerations remain, notably the potential for commodity price volatility and any operational disruptions stemming from labor disputes or regulatory changes in Chile. However, Gold Royalty’s diversified portfolio, which already includes NSR royalties across several high‑grade gold assets in the Americas, provides a buffer that mitigates single‑asset exposure.
Overall, the Pedra Branca royalty acquisition reinforces Gold Royalty’s growth narrative: leveraging targeted royalty purchases to build a resilient, multi‑commodity revenue stream that can deliver long‑term shareholder value while maintaining a low‑capital, low‑risk business model.
Original article, Author: Jam. If you wish to reprint this article, please indicate the source:https://aicnbc.com/14435.html
