Why Gold Royalty (GROY) Shares Are Falling
Portfolio Pulse from Henry Khederian
Gold Royalty Corp (NASDAQ:GROY) shares fell by 13.8% to $1.65 after announcing a $300 million bought deal financing to acquire a copper stream on the Vares Silver Project. The project is expected to enhance revenue and cash flow, with commercial production starting by Q4 2024.
May 28, 2024 | 3:44 pm
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Gold Royalty Corp shares fell 13.8% after announcing a $300 million financing deal to acquire a copper stream on the Vares Silver Project. The project is expected to enhance revenue and cash flow, with commercial production starting by Q4 2024.
The significant drop in share price is a direct reaction to the announcement of a $300 million financing deal, which may concern investors about dilution or financial risk. However, the long-term potential for increased revenue and cash flow from the Vares Silver Project could mitigate these concerns.
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