Good morning, everyone. I'm your host, Joanne Jobin with VID Media. I would like to welcome you to our very first live Gold Royalty Investor Day. Coming to you, I'll say it again, live from downtown Toronto. People are just starting to arrive, a reminder that we will be starting at 9:00 A.M. sharp. Please settle in with a coffee and start submitting those questions into the Q&A tab, please, as per usual. We will be taking questions from the audience throughout the presentation. When the Q&A sessions are opened, questions from the floor will be answered first, and then David or someone from the team will ask if we have any from our virtual audience. As per usual, we will do our very best to get everyone's questions answered.
We have a full slate today with David Garofalo leading the charge with opening remarks. The entire team will have their turn at the mic today. After that, we'll break for lunch and end the town hall. In the meantime, I'll be online until the meeting starts. If you have any questions, I'm happy to chat with anyone and everyone here. Thank you.
I would like to turn the stage over to David Garofalo, who will commence with our live Investor Day. David, over to you. We are now live.
Thanks. Good morning, everybody. I'm delighted that we have almost a full room here live, and we have quite a few people, I think, north of 150 online. Welcome to all of you. Looking forward to answer your questions over the course of the day, or this morning, I should say, as we go through our presentation. This is our inaugural Investor Day, one of what we think will be many down the road as we grow the business out. I'm delighted that we're able to welcome all of our key executives here today to present on the business and provide a holistic overview of our strategy, our vision. More importantly, introduce you to our people. We have a very capable and professional team.
This Investor Day is meant to coincide with the publication of our inaugural asset handbook, our ESG report, both of which are available online. If you're here live, you can pick up a hard copy of the asset handbook as well. Again, we've been quite systematic about growing the business from 18 royalties initially when we IPO'd just over two years ago to well over 200 royalties today and still continuing to grow much of it organically in a very low-cost fashion. I'll talk about that in a bit more detail over the course of the presentation. But we've built a sustainable business that's starting to contribute significant cash flow from our royalty revenues, from our extensive and diversified royalty portfolio in the Americas.
One that's poised to grow dramatically over the course of the rest of the decade, and within a year, contribute free cash flow for the first time. That's remarkable. In any line of business to go from start-up to free cash flow within three years is a remarkable achievement. We're very pleased to be able to talk about that and talk about how we're going to deliver on that revenue growth over the course of the next year or so. First, let me talk a little bit about the team. I'm very happy about the assets we've curated over the course of the last couple of years, but I'm even more delighted with the strength of the team that we've been able to assemble. Very accomplished team with significant mining experience.
Andrew Gubbels joined as a CFO at the beginning of this year. Andrew, many of you would have known from Aris Mining before, where he ran the corporate development group. Before that, an extensive and international career in the investment banking side, principally with UBS, almost 20 years in the business. John Griffith has been a long-time partner of mine. He's our Chief Development Officer. Ran Merrill Lynch's mining group before I was able to entice him to join us at Gold Royalty Corp. Over 30 years of investment banking experience, with significant experience in the streaming and royalty part of the business as well. He's done a number of transactions in that regard and has been a trusted partner of mine over the years in running Goldc orp, Hudbay, Agnico Eagle, and providing banking services, accessing capital markets, and helping advise on transactions. He brings a wealth of experience in the industry and in capital markets.
Sam Mah, who's our VP of Project Evaluation. Sam's here as well today. He'll talk about our evaluation criteria, due diligence process. We're quite systematic, and it's a testament to Sam's expertise as a mining engineer. He was a working mining engineer for a long time and joined us from SSR recently. Before that, spent 10 years with Wheaton Precious Metals during his initial 10 years in doing exactly the type of work he's doing with us, which is to evaluate streaming and royalty opportunities. He brings a wealth of operating experience, but also a wealth of streaming and royalty experience, in particular, doing due diligence. We're very delighted to have him in the team.
Jerry Baughman joined us through the acquisition of Ely Gold. He was the Co-Founder of Ely, along with Trey Wasser on our Advisory Board. Jerry is actually compliment what we brought to the table in terms of capital markets expertise. Jerry has been prospecting in Nevada for over 35 years, does stake exploration claims, wake up the neighbors, a knock on the door, and it farms the property created through that organic model. As you can imagine, the rates of return on those types of opportunities when they do hit are infinite. We generate several per quarter at virtually no cost. That's a source, a meaningful source of growth in our royalty portfolio at no cost to our shareholders, no additional cost of G&A. Again, just through their sweat equity and expertise. So we're very fortunate to have him on board.
Alastair Still brings a wealth of experience as the Director of Technical Services on both the operating and mine building side. Alastair worked with me at Goldcorp. Alastair for a long time was a Senior Operations Manager at our Porcupine complex in Ontario at Goldcorp. Then he moved down to Argentina, where he successfully developed the Cerro Negro mine, one of the biggest producing gold mines in Argentina, and then joined our corporate development program. Very, very fortunate to be able to bring him on. Really, he doubles duties running our technical services with royalty companies, but more importantly, he's CEO of GoldMining Inc, which is our former parent company, upon which we have royalties on every one of their assets in this portfolio.
What Alastair has done, and I'll talk about this in a bit more detail later on, is systematically started to de-risk his assets in GoldMining and put capital into them. Which serves our purposes in the royalty vehicle because as he advances these projects, starts to bring in outside capital into them, starts to de-risk them, drill them out, prove them geologically, we get the benefit of that for free in our royalty portfolio, as we do with any of our royalties. All of our 320+ royalties are bought and maintained by Goldcorp, and we get the leverage to the gold price increases, but we also get the leverage of the exploration undertaken by our operating partners like GoldMining with no cost to our shareholders, again.
For example, last year, over $200 million was invested or about 700,000 meters of diamond drilling on our portfolio of royalty properties, and we contributed nothing to that exploration budget. We got the lift in our value as a result of the exploration efforts of our operating partners like Alastair. Again, we don't have to contribute to those extensive and significant budgets. Peter Behncke, many of you will know, is our Manager of Investor Relations and Corporate Development. John was employee number two. Peter was employee number three, and he's been instrumental in our acquisition evaluations and also starting to develop a more professional investor relations program as we start to diversify our shareholder base and hopefully get some institutional traction.
We've gotten certainly a lot more institutional meetings of late as we've seen our revenue start to grow and crystallize. Katherine is another example of our shared services model. We share Alastair with a number of other companies. We share Katherine with three other companies as our head of ESG, and we're very proud that she's not only published our inaugural ESG report at Gold Royalty, but she's in the process of doing that with three other companies within our ecosystem. It's one of the reasons we've been able to keep a very low G&A, is that we share a lot of resources among the number of companies within that ecosystem, within my partner's companies, Amir Adnani. We can share people like Katherine with significant subject matter expertise like Alastair, like our general counsel as well.
That helps keep G&A costs low. We share an office space. Again, rent's very low. We actually don't pay anything in rent right now. We just share a meeting space with Amir's companies. That's allowed us to keep our back office costs low, our rent low, so that we can maintain a low G&A cost as we grow our revenue. That really falls right to the bottom line and contributes to free cash flow starting next year.
Ryan Hass joined us from Equinox Gold. He's our Manager of Operations. What he does day in, day out is make sure that we collect the checks on our royalties, audits those royalty statements, and gets regular information flow from our operating partners, not only in terms of what we're owed on royalties, but when we get exploration news, that flows up through Ryan so that we can communicate that to our shareholders and, communicate the upside that we're seeing in the exploration efforts of our operating partners. What Ryan also does ensure that we get also ESG data to feed our ESG report, among other things. He does the day-to-day relationship with our operating partners, which has become a critical part of our business as we've grown out our operating portfolio of royalties, quite significantly since our founding over two years ago.
I'll hopefully mercifully provide some brief introduction remarks, talk about our strategy vision, a little bit about the gold market as well before I pass it on to a very capable team to talk about all the aspects of our business in a bit more detail and entertain your questions, not only for me, but for anybody else that you see within this podium that you might have questions of on the various aspects of our business. What I always like to do is really talk about the gold market and I think you've heard many of you heard me talk about our thesis on the gold price and I think we've been quite consistent in terms of our or our views of the gold price and the fact that we're headed for a prolonged bull market.
We're gratified to actually start to see that thesis start to take some traction right now. We've started to see gold consistently above $2,000 an ounce, and we've been saying this when gold was as low as $1,700-$1,800 an ounce, that we are very much in an entrenched inflationary cycle. Don't believe the Federal Reserve, don't believe the central banks globally that are talking about tightening cycle. Indeed, we're in fact in a declining real interest rate environment, and we think that'll be amplified as we start to see nominal rates pivot later this year or early next. The reality is inflation's far and above what the headline inflation numbers might indicate. Nobody in this room, I think, and nobody online believes their inflation rates are only 4% or 5% or 6%.
If you're putting food in your stomach, fuel in your tank or a roof over your head, it's deeply into double-digit territory. These real interest rate numbers that you see in blue at the bottom of this chart are the headline numbers, but if you actually factor in real inflation and ignore the fiction that the CPI basket communicates, we're seeing real interest rates continue to decline deeper and deeper into negative territory. The negative correlation since the US dollar banned the gold and gold standard early 1970s between the gold price and real interest rates is striking over that 50-year period. The gold price does exceedingly well in a declining real interest rate environment. That's precisely where we are. This inflation cycle is far worse than we saw in the 1970s.
It bears many of the hallmarks that we saw in the 1970s. You know, back in the early 1970s, we had the U.S. dollar decoupled from the gold standard, we saw a massive amount of monetary expansion to fund economic activity, to fund a war in Vietnam. We saw a very similar unmooring of fiat currencies in the great financial crisis in 2008, where we saw global coordinated efforts to debase paper currency, expand money supply. It's gone up exponentially. Central banks are being disingenuous by raising nominal rates, but then flooding the market with additional liquidity when there are bank failures, as we saw a couple of months ago. There is a bit of sucking and blowing going on by central banks.
Make no mistake about it, monetary expansion is continuing in dramatic fashion, and interest rates will reflect that nominally, we think by as early as next year as the Federal Reserve has to pivot to deal with the massive amount of debt that we've strapped on as a society. Global debt to GDP, you've heard me say, is 350% today versus 100% in the 1970s. There's very limited latitude for the central banks to dramatically tighten and raise real interest rates without bankrupting governments, corporations, and individuals. There's just too much debt in the system. The only conceivable way to deal with the debt is to inflate it away. Central banks want inflation.
Inflation is here to stay, gold will do exceedingly well in that environment as declining real interest rates start to take hold. Really, you know, again, you've heard me say if you buy into that thesis, the best place to be is in the royalty business. It's no mistake that a number of us in our board and management who have been operators and mine developers over much of our career, and I've been doing that for over 30 years of my career, have switched to a royalty company. We all firmly believe in the bull scenario for gold, but we also understand that operating companies are not immune from cost inflation that we've seen in the sector.
Many of you also know that on-site costs typically are 60% labor and energy, that's where the inflation pressure has been most acute. That's why we've seen a significant resetting of cost expectations across the operating sector in the mining business. Again, I think that's going to continue for a long period of time, that'll undermine the leverage proposition that you're looking for in gold equities when you're buying an operator. The other dynamic on the operating side of the business is the sector is shrinking. The value in the ground of their businesses are shrinking because reserves are declining dramatically, and they have declined dramatically over the course of the last decade, down 40%, because the industry simply has not been reinvesting back in exploration.
That's why you're seeing PacMan underway in the operating side of the business. That's why you're seeing a massive amount of consolidation, because if you're not finding it in the ground, you're going to have to buy it. Just to share a bit of an analogy, until recently, John and I were responsible for the biggest gold merger in history, Goldcorp and Newmont. Obviously, that's been eclipsed, the Newmont Newcrest deal. I remember sitting across a date table from Gary Goldberg, the CEO at the time at Newmont, saying, "Collectively, we have 7.5 million ounces of production a year as Goldcorp and Newmont together, but we don't want to be at 7.5 million . We can't sustain that.
We're going to cull some of the non-core assets, and we're going to be able to sustain 6 million ounces a year for 20 years." That was the thesis. Four years later, Newmont has not been able to sustain that. They've had to do Newcrest to get back up to that 6 million ounce range. The reality is because the industry has not been reinvesting back in exploration to replace depleting reserves. Importantly, the juniors have not had access to the capital markets in any consistent fashion, and they're the ones that do the heavy lifting and grassroots exploration. If they're not doing grassroots exploration or not accessing capital to do that, the industry will necessarily shrink and necessarily cannibalize itself. That's what's happening in the operating side of the business, and that's why I think that's a shrinking pie and will continue to shrink.
The royalty business, as capital inevitably gets allocated back to exploration and development out of existential necessity, will be an important part, an important provider of capital to these explorers and emerging developers to replace this shrinking pie of reserves in the industry. Again, providing you top line exposure while protecting you from inflation. It is a better way to invest in gold. It gets you that precious metal exposure, gets you the exploration exposure as well, but without having to pay for it, and gets you diversification that no operating company can hope to deliver to you. We have over 220 royalties. With the people you have here, and this is pretty much the whole team sitting at this front desk here, we could run a business 10x the size.
We can scale this without having to scale up our G&A. In fact, our G&A costs have come down 30% year-over-year. I'll give Andrew an opportunity to talk about that in a bit more detail. We can and have diversified dramatically. That's, I think, a key and attractive feature of being in the royalty business over and above that top line exposure while protecting you from cost inflation. Again, the reason we've been able to grow this business so quickly, so dramatically is the depth and breadth of our management board, which collectively have over 400 years of industry experience. This gives you an overview of how quickly we've grown the royalty business. We've been very disciplined geographically about where we've been. We're very disciplined about the geological models we invest in.
We do extensive due diligence, which we'll get into in a bit more detail. I think this growth is quite dramatic and I think unparalleled in the royalty space since we came into existence a little over two years ago. Again, another important part I talked about our management team is we have a very, very strong board as well. Warren Gilman has been in the business as long as I have, over 35 years, investing in the business. He's been a banker, he's a mining engineer, and now he's a portfolio manager running Queen's Road Capital in Hong Kong, a cornerstone investor in our IPO, an important steward of our capital.
Alan Hair worked with me at Hudbay. He was my successor as CEO. He's my COO. A prolific mine builder in his own right, 35 years as a mineral process engineer. He built the Constancia mine in Peru. He built the 777 mine in Manitoba, the Lalor mine in Manitoba, the Reed mine in Manitoba. Brings a wealth of technical expertise to the board. Glenn Mullan joined us. He's the Co-Founder of Golden Valley and Abitibi, or Founder, I should say, of those companies. Like Jerry, brings a wealth of expertise in prospecting and staking and generating royalties organically. Through his companies and arrangement we have with him, we're able to continue to generate royalties organically within Quebec and Ontario. He's been an important contributor to our growth since he joined the company about 1.5 year ago.
The last person I'll mention, last couple of people, Amir Adnani, my partner, a co-founder of Gold Royalty, also controls 15% of the company through his vehicle, GoldMining Inc., which I'm involved in as well. Ian Telfer, many of you obviously will know, was my chairman at Goldcorp, and was the founder of Wheaton Precious Metals and pioneered the whole streaming model with Wheaton about 15 years ago. Brings a wealth of streaming and royalty experience to the table, and has been an invaluable contributor to our success since we've launched a little over two years ago.
You've heard me say this before, the re-rate potential in the small cap universe is immense, particularly when you look at where the category killers are trading, the big caps, Wheaton, Royal Gold, Franco-Nevada, at 2x to 3x net asset value. You can start to see Triple Flag and Osisko have been creeping up gradually, trying to capture that multiple as well, and they're doing that through scaling. That's what we've been endeavoring to do since we launched, is scale does matter. It does become institutionally relevant. If it becomes institutionally relevant, the stock will get bought, your multiple go up, drive down your cost of capital, and create a virtuous cycle in your business. Cost of capital, absolutely critical in our business because we're a capital provider.
Trying to get our multiple up through this re-rating, through the scaling of our business, we can certainly do that organically with what we already own and given the cash flow growth profile, which we'll get into in a bit more detail in a few more minutes. We can also do that through M&A. I do expect that the smaller cap universe will continue to consolidate and capture a mid-tier vacuum that currently exists in the space. There's a large cap, and then there's a small cap, not a lot in between. If we can capture that mid-tier, then I think we can capture a multiple that could conceivably be superior to what the seniors provide, because what we can provide if we capture that mid-tier is the prospect for growth. It's very difficult.
As high a quality as Franco, Wheaton, and Royal are, royalty companies, they can't capture any growth given their scale. It's very, very difficult for them to grow significantly. That's the opportunity I see in the sector, looking at it from a 30,000-foot perspective, is there is scope for consolidation. In fact, since we launched two years ago, we absorbed three of those companies, Ely, Golden Valley, and Abitibi Royalties, but five other companies have been absorbed by our competitors as well, including Maverix and Nomad, among others. The consolidation cycle is happening in the royalty space, and we believe will continue to happen until somebody captures, maybe one or two companies captures that mid-tier crown and captures that growth multiple that clearly is absent in the sector right now.
With that, I'd like to pass it onto Andrew Gubbels, our CFO, to walk you through our financial results for the first quarter and talk about our financial position as well. Thank you for your attention this morning.
All right. Thanks, Dave, and thanks everyone for coming. Let me start off by saying, Gold Royalty Corp is really emerging from a transitional period, whereby the foundation of the company was really built from a successful IPO through to a series of transformational acquisitions. It's been very important for building that solid foundation from which we can now grow. We now have a consistent cash flow base, some quality assets, and a very robust pipeline of projects, development projects that are being built by some of the gold industry's largest, best capitalized operators, as well as a long tail of exciting exploration properties. Moving forward, we're going to see increased cash flow from our royalty portfolio as these high quality projects are constructed and commissioned.
At the same time, we are expecting our recurring cash operating costs to decrease and moderate post the integration of these prior acquisitions that I mentioned, and the establishment of a real core management group and efficient operating structure. Let me start by giving you a snapshot of our quarterly results for the first quarter of 2023, which we announced on Thursday of last week. Investors should be aware that we did change our fiscal year-end from September to December last year, this is officially our Q1. In the first quarter, we saw revenue from and option proceeds increase by 12% quarter-over-quarter. This is the second highest quarterly revenue figu
re that we've had since our inception. In Q1, we also saw cash operating costs decrease, as Dave mentioned. It decreased by about 30% quarter-on-quarter, and recurring cash operating costs decreased by 26%. It shows that we're moving in the right direction when it comes to managing our operating costs. In Q1, we closed an asset swap transaction with Val-d'Or Mining, VZZ, and also generated some additional royalties in Nevada, which Jerry will talk about a little bit later in the presentation. In total, we added 12 new royalty assets to our portfolio. We also increased the size of our revolving credit facility in the quarter by $10 million to a total of $35 million, including the accordion feature. That does provide us with additional liquidity to support our growth in the future.
Finally, we paid our fifth consecutive dividend. We currently yield, over 1.7% at current share prices, and we also established a dividend reinvestment plan. That will allow investors to take shares instead of cash if they choose and allow the company to reinvest some of the cash back into growth initiatives for the company. All that plumbing's in place now for investors in the future. In terms of outlook for fiscal 2023, we do expect to see increased revenue. Despite the temporary suspension of operations at Jerritt Canyon, we have provided guidance of $5.5 million-$6.5 million of revenue and option proceeds for the fiscal year 2023. This is really driven by revenue from royalties at Canadian Malartic, at the Borden Mine, at Isabella Pearl, and option income from our large growth portfolio.
What's not on this chart, but in 2024 and beyond, we do expect revenue to increase materially. We haven't put out guidance for future years, but a lot of brokers in the room have put some estimates for our revenue. We will see a step change in that revenue come 2024 and going forward. On the cost side of the equation, for fiscal 2023, we are targeting decreased recurring operating costs. 2021 and 2022, as I mentioned before, were really transitional periods as we set up the company. They included higher costs related to insurance for new companies, especially New York-listed companies are on the high side. We had elevated marketing costs and consulting costs associated with some of the M&A to build that foundation of our business.
In 2023, however, we are working to and have done quite a bit of work centralizing some of the administrative activities within our subsidiaries, bringing it into head office. It's an initiative I've done quite a bit of work on to date. We've refocused some of our marketing professional fees, and we're finally starting to benefit from decreased corporate insurance costs as the company matures. We do expect to see recurring operating costs moderate at that $7 million-$8 million level and continue around that level on a recurring basis going forward. As a result of this growing revenue, of which again, we'll see a step change post 2023 in particular and decreasing costs, operating margins from recurring activities are expected to increase and improve in future years.
Next, I just want to talk about some of the sources of capital we have available to us. Having access to capital is critical to our strategy. As Dave mentioned, the thesis for consolidation is strong, we are looking to grow this company. Gold Royalty does enjoy a healthy balance sheet, we have put financing programs in place to be able to access capital when and if it's required. We have approximately $10 million of cash and marketable securities on the balance sheet at the moment. Earlier this year, again, I mentioned before, lenders were supportive of enlarging our credit facility by $10 million to $35 million in total, which gives us a good, convenient access to that credit facility on a revolving basis.
We also have approximately $50 million capital available under our ATM facility, which was put in place mid-last year. Finally, GRC filed a $250 million shelf prospectus in mid-2022. That will allow us to facilitate the access of additional equity capital if required in the future. When it comes to M&A and acquisitions, we'll evaluate all sources of capital to fund future acquisitions, the choice of which will really be dependent on the size of that acquisition and on the cash flow profile of those assets that we do acquire. Finally, I want to talk a bit about the trading liquidity of Gold Royalty. We've really built a strong market presence. I think this is an important characteristic that differentiates us from some of our peers as well.
We have solid trade and liquidity that we built up over the last two years. We currently trade on average over $1 million worth, that's U.S. $1 million worth of shares on the New York Stock Exchange every day. It takes the amount of time it takes to turn one turn of our floats is about as frequent as some of our larger peers. In terms of getting in, getting out of Gold Royalty shares, it is an easier proposition than some of the smaller peers in the sector. We also have strong research coverage with additional brokers preparing to launch coverage throughout the year. I know many of you, the institutions in our room today, so I'd like to thank, you for your support, to date, and we look forward to your continued support going forward.
Now with that, I'd like to pass it on to Katherine to speak to, our sustainability and ESG.
Thank you, Andrew. Good morning, everyone. My name is Katherine Arblaster. I'm the VP of Sustainability and ESG for Gold Royalty. I'm gonna talk a little bit about our approach to sustainability, our management of ESG related risks, and also to talk a little bit about how we've embedded sustainability as a core value in our organization. Fundamentally, we believe mining can be an important mechanism to achieve sustainable development, and we believe that mining can enable positive contributions to the local community. As a royalty company, we recognize that we don't directly manage many of the ESG related risks that sit at the underlying assets of our portfolio.
Therefore, it's important to us that we're ensuring the quality of our operators, and we're partnering with leading miners that are focused on sustainable mining practices, and that also throughout our process, that all of our operators are aligning to our ESG core values as well as meet our rigorous ESG due diligence process. I'm gonna start with a little bit of an interactive session to keep everyone awake this morning and to get everyone talking now, as I know we have our Q&A happening in a few minutes. If you see up on the screen, there's two earths. On the left-hand side, you'll see the gray earth with the blue bubble. Does anyone who's brave enough to raise their hand this morning wanna share with me what they think the blue bubble represents? I know none of you are shy.
I wanna say there's no wrong answers, but there are wrong answers, but there's always good guesses. I can look up here at the front table and see if anyone has an answer. Sam.
It's gotta be water. It's gotta be water.
That's right. The blue bubble represents all of the water on the Earth's surface to scale compared to the Earth. On the right-hand side, you'll see the blue Earth and the pink bubble. Does anyone have an idea of what that is?
I believe it's air.
That's correct. The reason I wanted to show this picture is it represents the urgency around things like the climate crisis and the sustainability and the use of our natural resources. Generally speaking, many of us, mining companies included, treat water and air as infinite, but it's very clear that they're actually finite. This is a call to action for organizations like Gold Royalty, that we need to be very mindful of the way that natural resources are being used so that we can ensure that they're gonna continue on into the future and that our organizations and our portfolio can continue to rely on things like water and the climate.
A few other data points that always, I think really drive home the point around the urgency of the climate crisis and sustainability are that I'm sure many of you are familiar with the global goal to keep global warming between 1.5 and 2 degrees Celsius. The UN's released recent research that shows that we're actually very likely to surpass the 1.5 degree warming goal, and we're actually likely to hit 1.5 degree warming probably in the mid-2030s. There's also a date that I know as a sustainability practitioner I track, which is what we call Earth Overshoot Day, and that's the day of the year that we've used all of the Earth's natural resources that could on their own regenerate throughout that year. Last year in 2022, that was July 28th.
Many research has shown that we would actually need three Earths to be able to live at the current pace that we're living and our current use of natural resources. I bring that up not to be all doom and gloom in the morning, but really to demonstrate that sustainability is a really important value for us as an organization. We ultimately, are committed to ensuring that our operators that we partner with are ensuring that they're using sustainable mining practices that are mindful of things like GHG emissions being released into the atmosphere and their water usage. At Gold Royalty, we're committed to addressing many of these challenges through appropriately and proactively managing risks related to water, biodiversity and climate change.
To demonstrate that commitment, we've joined the UN Global Compact, which is a voluntary initiative based on CEO commitments to implement universal sustainability principles and commit to accelerating progress to the SDGs. We've identified seven SDGs that we feel we can contribute to, both internally within our organizations and then also through our partnerships with leading top-tier operators. We think about sustainability as a two-pronged approach. There's sustainability within our organization, and that's us being a steward for our people, for our local communities, and for our environment. As Dave mentioned, we have a very lean team. Most of the team is here in this room. As you can imagine, our footprint is pretty small. Our Scope 1 and 2 emissions from our corporate office, very minimal.
We recognize, and the second prong of our sustainability approach is thinking about the impact of our portfolio. We recognize the Scope 3 emissions from our mining operations are much more significant than our Scope 1 and 2 emissions. We think about this as our approach to ESG due diligence to ensuring that we're working with responsible and leading miners, and then are also thinking about how do we support them to reduce things like their emissions, their water usage, et cetera. We're proud to say that in FY 2022, last year, we were able to contribute over $20,000 to diverse community causes, including the arts, mental health, and culture in the Vancouver area. We also prioritize diversity and inclusion.
On our board, 29% of our board members are female, and we have a goal of reaching over 30% by 2025. Within our executive management team, 30% of our leaders are female and 50% identify as ethnically diverse. We also focused this year on really laying the foundation of our sustainability program. We focused on updating our sustainability policy, which really sets the guardrails around our commitment to sustainability and how we plan to work with our operators. We've approved things like our anti-corruption policy and insider trader policy. A big focus of that sustainability policy is the reflection on our ESG due diligence and the rigor that we ensure within that process.
Last year, over-- 100% of our agreements were reviewed with our enhanced ESG due diligence process, which I'll speak to in a few minutes. We did screen out 11% of deals because of ESG-related risks. For example, jurisdictional risk, as David talked about the quality and location of our assets, jurisdictional risk is one thing that we watch very closely, along with ultimately looking very closely at things like water practices and usage. I see a question here, but I know we're gonna go to Q&A in just a few minutes. Why don't we. I will come to you first. ESG governance is very important, and this is really what enables us to remain accountable throughout the organization. I think this visual helps demonstrate how we've embedded sustainability as a core value throughout the organization.
Our board has oversight over our sustainability approach. For every deal that we bring to the board, we spend time reviewing the ESG-related risks that we identified for that organization or for that asset specifically. Our ESG committee goes a lot deeper. They work with me and with Dave on our ESG strategy, as well as progress against that strategy on a quarterly basis. We've also embedded sustainability throughout every aspect of the organization. Our strategic planning process, we discuss our ESG objectives and how we plan to achieve those. Naturally in our corporate development process, which really focuses on our ESG due diligence. As well, our risk management process. We identify a lot of the ESG risks throughout that process, and those get elevated to the board as well.
ESG due diligence is really a central focus of a lot of how we ensure the quality of our portfolio. I know I've mentioned it before, we've listed out some of the key areas that we look at as a part of our ESG due diligence process. I'll just speak to a few of these, and really kind of the focus of them. For example, water management is something that I mentioned as, you know, an area that there's some urgency associated with.
We look at the operator's management processes associated with water usage, but we also look at where the water source is that the mining company will be using, and if other communities local to the mine site are also reliant on it to ensure that there's a plan in place to ensure that that resource is gonna be responsibly managed. We, of course, look at tailings and waste management. We look at the biodiversity and, in particular, the mine closure plan to ensure that there's gonna be some focus on regenerating any damage that's been made to the biodiversity near the mine site. Of course, we look at climate change and the emissions management.
As all of you know, there's some urgency around climate change, and there are gonna be targets coming in for many companies at 2030, 2040, and 2050 to reduce their emissions. If you think about the life of mine, many of those will go into and surpass 2030. We do look to see if operators are planning for that or building in those associated costs to decarbonize as well. From a social perspective, health and safety is essential. We wanna ensure that the companies have an appropriate management system in place and that they have a strong record around health and safety. We look at things like have they earned a social license to operate, or how are they working and engaging with the community?
In particular, if there's Indigenous communities, how are they engaging with those Indigenous communities, and do they have the right to work there? Human rights is essential, and we ensure that there's been no human rights abuses. We also look at labor management. From a governance perspective, we look at how the company operates internally from an ethical standpoint. We also look at from a board perspective, does the board have oversight over any ESG-related risks that they've identified? Finally, we've spoken to political and jurisdictional risk. That's a key one. We always look at, you know, the regulatory environment and the political environment in the countries that these operators are working in.
Finally, I mentioned that, you know, we screened out 11% of our deals because of ESG-related risks. We also look to partner with our operators to see how we can help them further advance their sustainability goals. There's many different ways that we've done that. You know, in some ways, for example, we've offered pools of capital to help them further their sustainability objectives that would come alongside the royalty agreement. Very much we kind of use that two-prong approach, where if the risk feels too high, we'll screen out that opportunity. Ultimately, we do look to help advance our operators' sustainability goals.
Finally, I'll just, I know Dave mentioned, but I'll make a plug for the sustainability report. We're very excited to have been able to publish it this year. It's on our website. I would definitely encourage you, if you're short on time, please read the CEO letter from Dave because I think it highlights a lot of the achievements that we're most proud of.
I'll invite Dave back up for the Q&A.
I think you had a question.
Yeah. I think there's one right here.
Yes, please.
The 11% that you mentioned. for the royalty. You said, 11% were screened due to ESG concerns?
Screened out.
Right? Okay. What does that mean? Can you elaborate on that?
Yeah, absolutely. Sam's gonna speak to our due diligence process later on in the session. Ultimately, as we go through our due diligence process, we'll look at things like jurisdictional risk. Are we comfortable with the political and regulatory environment that asset operates in, or are we comfortable with their health and safety record or their social license to operate? If we have identified a risk where we felt like the operator is not managing that risk appropriately, and we'll engage with the operator and have conversations with how they plan to manage these things. If we're not comfortable with that, then we'll ultimately turn down that opportunity because we feel like it will either, you know, lead to delays or significantly affect the capability of that asset to move forward.
Jurisdictional risk is a big one because we really prioritize, you know, mining-friendly jurisdictions, which I think goes back to the quality of our portfolio. I don't have a breakdown of specifically how many were jurisdictional risks versus others, but that was a major one that we screened out for.
Any other questions of Katherine on the ESG side while we have her up here? I significantly understated her role when I talked about the ESG report, almost exclusively introducing her. She is very much embedded in our due diligence process. She reports to the board and to other senior management on her assessment of the ESG risk of every opportunity we look at. She's integral to that. It's a significant part of her role, and I want to emphasize that. Reputational risk is extremely important issue to manage. It does drive cost of capital up, particularly in this environment where ESG is top of mind for many institutional investors and capital providers. We have to be absolutely crystal clear and crisp on that issue.
I'm delighted that we have somebody of Katherine's expertise and background in the organization. Yep, Brad.
Can you break down the revenue versus royalty versus?
[audio distortion] Can you speak into the mic? Sorry. We need to take that for mobile. Thank you.
Thanks. Can you please break down the revenue between option income and royalty income? 'Cause Andrew, I think, mentioned that there was some option income. Are we covered? Are we writing options or puts or like we did?
No, no. Option income refers to option payments we get from operators who we option our properties out to. We get a royalty back in return. Quite often, we get work commitments, so they're required to work the property so many dollars per year. They also pay us an option on the property. They actually pay us fees for taking the property from us.
Okay.
it's not derivative income. I don't--
Okay. All right.
It's actually on the ground grassroots income from the properties. We never actually spend any, invest any money in exploration ourselves. We farm the properties out before it gets to that point. They take the exploration risk, we get paid royalties and option proceeds in return for the property.
What was the breakdown between royalty income and option income?
Peter, do you wanna?
Yeah.
Yeah. Do you wanna get to that chart now, Peter? Or do you wanna just deal with it verbally? Yeah, go ahead.
I've got one other question after that, I think.
Sure. You can stay up, Dave. Yeah, the breakdown is about $3 million, $3 million in 2023. We've consistently generated between $2 million and $3 million in option proceeds, the past two years and going back before that, through Jerry's model at Ely Gold Royalties before we acquired them as well. It's a sustainable, consistent source of cash flow for us, is that option proceed income.
Okay. Now, a good chunk of the G&A decline was because the D&O insurance came down, correct? Was that decline based upon you're insuring a smaller market cap because the stock did so poorly? Or is that decline because it was, you know, a decline in the actual policy?
Yeah. No, it was a decline in the policy. It really, the insurance market, our D&O insurance as a new company without a track record, tends to have higher premiums. It's really establishing a track record regardless of our market cap. Year-on-year, as long as we don't have any claims, our insurance has dropped. Yeah. It doesn't have anything to do with market cap.
Thank you. How much is drawn on the credit facility?
There's approximately $10 million drawn. The credit facility is a $20 million revolver, $10 of which is drawn. We also have access to a $50 million accordion feature, which has some other constraints, $10 of the $20 revolver is drawn.
Along the same line, how much is left on the shelf?
The shelf was a $250 million shelf. The shares that we issued as part of consideration to Nevada Gold Mines for transaction last year, I think it was around 20, 22-- $27 million ?
$27 million.
$27 million worth was credited against the shelf, so we've got the remaining available.
Okay. Thank you. Second question from me, maybe for David. You talked about the lack of juniors, the availability of financing for the junior producers or explorers. Have you seen that improve with the higher spot prices?
No, not at all. It's been very selective access to the equity capital markets. It's really been a nuclear winter for juniors. Other than a brief window in 2019 when we saw the gold price start to regain some momentum, and it was right after the actually the merger activity in early 2019, we saw about a six-month period where juniors were accessing capital again, then the door firmly shut again. Again, over the last decade, it's been very, very selective access, and that's why you've seen this 40% decline in reserves. The industry simply isn't reinvesting in exploration in a meaningful way.
Oh, were there any more questions in the room, please? Yeah, go ahead.
Would you mind identifying yourself please?
Sure.
Before answering and, or asking a question?
Yeah. George Foster. My question is, I'm looking at the asset handbook, and I know most of the properties are in the Americas. You have one in Turkey. Is there any plans to expand in other areas like Africa or Scandinavia, et cetera?
Yeah. Certainly. It's interesting, about 80% of our royalties by number and by market value or net asset value are in Nevada, Quebec, and Ontario. It's very concentrated in three of the best, arguably three of the best jurisdictions in the world. We certainly have room to take on a bit more political risk. What will drive our decision making, and John will get this into a bit more detail later on, is quality of the geological model, quality of the operator, and our comfort with the jurisdiction. At the end of the day, we don't own any mines, we own paper, we own contracts.
If there isn't a legal framework that recognizes the sanctity of those royalty contracts, then we won't go there, because we wanna ensure that we have security against the asset in some form to ensure the royalty contract survives, if there's a change in operator or a bankruptcy of an operator. That's the appeal of being in Nevada, Quebec, and Ontario, is that legal framework is extremely well-established and well-respected. Rene?
Rene from BMO. Can you just talk a little bit about the longevity of the option proceeds, how long you think they're gonna continue on for? Any gain beyond that is sitting in the income statement. It is on a case-by-case basis, and I can't really provide more clarity on. It really does depend on what deals Jerry's generating each quarter.
I think to your question, Rene, that's why it's important that we provide a normalized revenue number with that option income that goes against carrying value extracted out, so you're aware. You have clarity and transparency about how much option income we're generating regardless of the accounting treatment. The accounting treatment is a bit nonsensical, but it is what it is. Are we okay then? Okay, excellent. Joanne, we're okay to move on to the next section?
Did you wanna take any questions from the audience at this point, or do you wanna wait?
Why don't we pause there and let the next section come up, and then we can take some more questions before our break. If you're budgeting for a coffee break, let's assume it happens in about a half an hour, I guess, Peter. Then we'll take a 10-15 min break from there before we go to the next section after that.
Excellent. Thank you very much.
Perfect. Hi, everyone, and thanks for the questions. Good to have a dynamic conversation. My name is Peter Behncke, as Dave introduced at the beginning. I'm our manager of corporate development and IR. I've been at the company since 2020 when we were writing our original 18 royalties, and it's been exciting to see us grow to a portfolio of over 220 assets. I'm gonna provide an overview of our portfolio, run through some of the metrics that are outlined in the asset handbook that you have there, and then we'll take a short break before coming back and having Ryan and Alastair do a deep dive on some of the key assets in our portfolio, and get into the weeds on those.
Zooming out and taking a look at the key metrics that really define our portfolio. We've already spoken at length with regards to the jurisdictional exposure concentrated in the best mining jurisdictions in the world. The recent Fraser Institute report outlined Nevada as the best mining jurisdiction in the world, and that is where we have the most royalties in our portfolio, close to 90 currently. In a close second, over 70 royalties in Quebec and another 30 some odd in Ontario. I think that speaks to the quality of our portfolio, not just quality of jurisdiction, but quality of asset, with cornerstone royalties on three of the largest mines in North America, as well as quality of operator.
These assets are being developed or are operated by the largest and most well-capitalized companies in the mining sector, the likes of Barrick, Newmont, Agnico Eagle. The growth has been very rapid, 18 to over 220 in just over two years, but that focus on acquiring a foundational portfolio of assets has really been top of mind throughout. An important aspect of our portfolio is our commodity mix. We are a gold royalty-focused company, as the name begets. Roughly 95% of the portfolio by net asset value is in precious metals, gold and silver, and we do have some copper exposure in some gold-copper porphyries through Alaska and South America.
I think important to note, as we continue to grow the portfolio, we do have the ability to take on some commodity mix, whether that's additional copper, zinc, nickel, but core to our business is precious metals and will maintain, be the focus. I mentioned them, our 3% cornerstone royalties. Royalties on the largest gold mines in North America, the largest of which is our 3% NSR over the Canadian Malartic Complex, specifically the Odyssey Underground project. Our 3% NSR covers a significant portion of mineralization of the East Malartic deposit, the Odyssey North deposit, and then portions of the Norrie Zone and the internal zones, which are getting continued exploration investment by Agnico subsequent to its recent consolidation of the assets through the acquisition of Yamana.
This asset is ramping up over the next several years, but really shifts to a full underground operation where we'll see the full benefit of our royalty there in the years 2027 and 2028 when the open pit is done producing at Canadian Malartic. Our second cornerstone asset is our royalty over the Côté Gold project. We have a 0.75% NSR over the southern portion of the Côté pit. This is the most immediate catalyst within our portfolio and is the key driver of that inflection point that Andrew spoke to earlier with regards to shifting to positive free cash flow, and really driving our revenue growth in 2024. IAMGOLD's done a good job divesting non-core assets, restructuring the ownership there, and are well on track to deliver first gold pour early next year.
Our third cornerstone asset is our royalty over the Goldstrike Mine, specifically the Ren project, the northern extension of the Carlin complex. We have a 1.5% NSR and a 3.5% NPI over this deposit. This is a very high-grade component of the Carlin complex, roughly 7 grams per ton material, close to 2 million ounces, and continuing to be explored by Barrick at the Carlin complex. Interestingly enough, we have three foundational assets that represent over 50% of the value of our business in these three assets alone. These are the foundations that built the largest royalty and streaming companies in the sector. Franco-Nevada, the largest royalty and streaming company, was built upon a single royalty over the Goldstrike Mine, and we also have a piece of Goldstrike through our royalty over Ren.
Beyond these three cornerstone royalties, this is a slide I'm sure many of you have seen before, is our pipeline of development, producing, advanced exploration, and earlier exploration stage assets representing the over 200 royalties we have within our portfolio. I'd get ahead of the question. We do have Jerritt Canyon outlined here in our producing assets. Jerritt Canyon is an asset that's First Majestic, the operator, has had difficulties with. They continue to process ore there for the first two quarters of this year, are shifting the asset to care and maintenance, and we'll do the same in terms of our buckets and asset classification in early next quarter. Beyond Canadian Malartic, Côté, and Ren, we're very excited by several of the other smaller royalties within our portfolio that supplement the growth.
As I mentioned, that's roughly half the value of our business, with another 219 royalties in the portfolio, there's a lot of exciting catalysts across the board that are fueling growth over the next coming years. On this slide, I'd also like to highlight the operators. I mentioned the likes of Newmont, Barrick, Agnico Eagle. That not only gives us confidence in the development pipeline, they're well capitalized, can deliver on that growth, they have great track records, it also speaks to what Katherine said earlier with regards to our commitment to sustainability. These are leaders in that regard, and really align with our views on best practices and the assets we want to align with.
Providing a bit more granularity with regards to our revenue profile over the next few years, wanted to lay out a chart of the key producing assets and where we're seeing growth in those, some of the key development stage assets that we're seeing come online or potentially re-enter production over the next few years, and then also highlight some of the key development stage or advanced exploration stage assets that we see as opportunities for future growth, but aren't necessarily fueling our near-term cash flow profile. The first two I want to highlight, I've spoken at length about the Odyssey mine as it shifts and ramps up over the next few years to a fully underground operation in 2027 and 2028. Ryan will speak to that in more detail, but it really is the same with that asset entering production early next year.
This will be a significant increase in our revenue profile, expected to increase overall total revenue and option proceeds by over 50% next year. Beyond these three, over the Gold Rock project. This is a satellite deposit to Calibre's Pan mine in Nevada. We have a 0.5% NSR over the entire project. They're expecting to release a feasibility study and make a construction decision in 2024. By consensus views on Calibre, we could see revenue from this asset starting in 2025 as an incremental portion of growth. It'd be about a 50,000 ounce a year producer. Jerritt Canyon, as I mentioned, unfortunate circumstances with their temporary suspension of operations, but they continue exploration work and are evaluating how they can re-optimize the mine plan to potentially restart operations there.
We stripped it out of our revenue guidance and our forward-looking revenue profile, and now this asset really represents a potential area of upside for us should they restart it over the next two-three years. While it was $1 million of lost revenue in 2023, I'd note that this is a relatively small portion of our overall net asset value, an asset that makes up roughly 1% of overall NAV. Similar to Gold Rock, another smaller royalty within our portfolio is our royalty over the Railroad-Pinion project recently acquired by Orla. We have a patchwork of royalty coverage here representing roughly a third of the overall project and over the key deposits that will be mined.
Again, recently brought in by a strong operator in Orla, and well advanced to supplement our revenue profile towards 2026 over the next few years. Ren, I spoke to as a key cornerstone asset. Barrick has highlighted this as being incorporated into the mine plan in the short term. We had a team on site there a few weeks ago, and I'll let Ryan and Sam speak to their experience there later on. We're really excited about this asset. High grade near one of the largest mines in North America with great infrastructure and a great operating team there, driving forward the deposit. Finally, the last Nevada asset to highlight here is our royalty over the Granite Creek Mine. This is our most recent acquisition. We picked it up last fall.
i-80 Gold Corp has continued to advance the deposit, outlined a high-grade zone at Ogee, and expects to release an initial resource for the South Pacific Zone and release updated mining studies in 2023. They're doing small scale mining currently at Granite Creek, but they're ramping that up over the coming years. We see this as an exciting component of growth given the high grade nature of Granite Creek towards mid this decade, 2026, by our estimates. Beyond these assets that are really fueling the revenue profile that I'll show on the next slide, there's a couple advanced exploration stage assets that we're really excited about, specifically Fenelon and Whistler.
Fenelon, located on the Detour Lake Mine trend in Quebec, is a multi-million ounce, relatively high grade deposit, over 3 grams per ton, and been extensively explored by Wallbridge Mining in the province. Given its jurisdiction along trend with the largest gold mine in Canada, and the appointment of the recent-- of the chairman at Wallbridge, we could see this asset being traded into a larger vehicle. While we're not counting on it for our near-term cash flow, it's an asset that could provide that upside towards the end of this decade or in the early 2030s. Similarly, another significant deposit is our royalty over the Whistler project in Alaska. Multi-million ounce gold copper porphyry that recently completed an IPO through the U.S. GoldMining Inc vehicle. That team's now fully funded to deliver a PEA over the next couple of years.
So that provides a bit more granularity on what is driving our revenue profile, which I'll highlight on this slide. As you mentioned, building upon what Andrew highlighted is $6.5 million in total revenue and option proceeds in 2023. We see that large step change in 2024 to being well above our G&A costs in 2024. This is primarily driven by Côté, but also increased coverage at the Odyssey project, increased coverage at Borden, and consistent option proceeds year-over-year.
Beyond that, as I mentioned on the previous slide, with all those assets coming online and increased coverage at our key development assets, we'll see that revenue grow at roughly a 60% compound annual growth rate year-over-year out towards 2026. In 2027, we start to see that revenue take a step change as Odyssey becomes a fully underground operation and could see potential upside beyond what we're forecasting given the significant excess capacity they have at the Carlin Complex as the operation shifts from open pit to underground. Given our flat cost structure, this revenue profile has a linear relationship to our cash flow profile.
You'll see cash flow increase year over year as this revenue profile materializes, and that'll give us the latitude and the ability to reevaluate our dividend policy and potentially increase that dividend year over year. Beyond that, and before we take a break, Andrew and Alastair will be taking a deep dive into those assets that I mentioned earlier, giving an overview of some of the recent catalysts and some of the upcoming catalysts across those assets. I'd also implore you to take a look at our asset handbook, recently published a few weeks ago, available here for you. And it's a great source of information to dive in to the portfolio and get into the weeds. With that.
[audio distortion] We'll let Ryan do his part of the presentation.
Yeah, sure.
We'll take a break after that.
Sounds good. With that, yeah, I'll pass it over to Ryan.
All right.
Thanks, Peter. I'm Ryan Hass, the operations manager at Gold Royalty, responsible for managing the portfolio, as well as maintaining and growing our relationships with our operating partners. As Peter mentioned, the foundation of our company is really built upon three cornerstone assets. Canadian Malartic, specifically the Odyssey Underground project, the Côté Gold project coming into production early next year, and the northern extension of the Goldstrike Mine, the Ren project, which we're looking to see enter production in 2025, 2026, and being fully ramped up. Starting with our most significant asset in the portfolio, the Odyssey Underground project, is included in the Canadian Malartic Complex. The Canadian Malartic Complex is located within the prolific Abitibi Gold Belt, is one of the largest gold mines in Canada.
Canadian Malartic is owned and operated by Agnico Eagle after their acquisition of the remaining 50% of the mine from Yamana in Q1. Our royalty covers the northern portion of the Odyssey project, with significant coverage over the East Malartic deposits, the Odyssey North deposit, and the recently explored North Zone, which is getting a lot of coverage. To the south, we have exploration upside at Malartic South and the Midway project to the south and southeast. Our key royalty is the 3% NSR you see that's over the Odyssey shaft and covers those deposits that I mentioned earlier. The 2% NSR at Goldie and Charlie and the 15% NPI at Radium that you see in the top left to the west are more exploration upside and are not key drivers to our valuation of the 3% NSR.
With regards to next steps and where we see this asset going, the 500,000 ounces per year in the initial mine plan has the potential to increase. They're ramping up production this past March at Odyssey South by ramp access out towards 2027, where they plan to shift to a fully underground operation. With that shift from open pit to underground, we see significant upside given the excess mill capacity at Canadian Malartic. As an open pit operation, Canadian Malartic is a 60,000 ton per day operation. As an underground operation, Agnico is envisioning a 19,000 ton per day of throughput, leaving 41,000 tons per day of excess mill capacity. One of the key areas of study for Agnico, given its recent acquisition of Yamana's Canadian assets, is how to optimize the excess capacity at the Canadian Malartic complex.
Given our significant resource coverage, we can see increased resource conversion beyond what is currently in the mine plan. Here are some of the upcoming catalysts and developments to note that will transition the operation from open pit to underground. We can expect updates to the mineral resource estimates and the mine plan. The current PEA only incorporates about half the underlying resources in the mine plan. Given half and half aren't included, it really illustrates the potential upside in our royalty. While not a significant revenue contributor to Gold Royalty now, by 2027, Canadian Malartic is expected to be the highest revenue and cash flow contributor for Gold Royalty, with modest production from the open pit and the underground ramping up to production.
Moving on to our second cornerstone asset, the Côté Gold Project. Côté is a multi-decade generational asset operated by IAMGOLD and is located in Ontario on the west side of the Abitibi Gold Belt that is rapidly advancing to becoming one of Canada's largest gold mines. This is an asset that is less than 12 months away from first gold pour, which is expected in the early half of 2024. IAMGOLD is fully funded to deliver that production timeline. We have a 0.75% NSR over the southern portion of the Côté pit, which is the highest grade early part of the mine life that we have significant coverage.
The current mine plan at Côté envisions 495,000 ounces per year for the first six years of the mine life, given the high grade near surface mineralization, with 365,000 ounces per year expected to be produced then after until 2041. I should note, given the extensive mine life, there is a great opportunity to expand and grow resources at Côté . Important to note, I mentioned earlier the high grade near surface mineralization. As you can see, this is where we have most of our royalty coverage. We have coverage over zones five and seven in the southern third portion of the Côté pit, which represents actual high grade measured and indicated resources at Côté , as you can see on the image on the left.
As such, we expect to see high attributable production from our royalty in the early years of the mine life, which results in a quicker payback on our initial investment and seeing this trail off towards the later years in the mine. IAMGOLD released their Q1 results last week, indicating they have completed 80% of production, construction, up from 73% at Q4, displaying their continued development progress at site. IAMGOLD has also provided some updates and challenges they faced in the construction year, one of which has been increased CapEx and OpEx due to unforeseen factors such as inflation. For us as royalty holders, this further illustrates the advantages of the royalty model in which we are insulated from cost overruns and by having our exposure to the top-line revenue once the mine is in production.
IAMGOLD has done a great job divesting longer-dated assets, restructuring funding with Sumitomo, and continuing to stay on track to deliver first production in early 2024. As mentioned previously, this will be the biggest step change in our revenue profile in 2024. Again, a little more clarity on first gold pour. This timeline proposed by IAMGOLD, which is an experienced operator, have well advanced on the project, and they have the advantage of having a strong team in place with sufficient funding. We're excited to see this asset producing within the next 12 months. We believe certainly Côté is an exciting deposit and it's rapidly developing to becoming one of Canada's largest gold mines. Our third cornerstone asset, the Ren project, is the northern underground extension of the Goldstrike Mine that is currently in development, for which we see coming online in the near term.
The project is operated by Barrick and located along the Carlin Trend, which has historically produced over 70 million ounces of gold. We hold a 1.5% NSR and a 3.5% NPI over the project, which encompasses most of Ren. Current resources at 1.6 million ounces, warranting roughly 7 grams per ton material. Although Barrick has not come out with definitive guidance on when this asset is expected to enter production, they have indicated that it is being incorporated into the mine plan at the Carlin complex in the short term.
Our team, including myself and Sam, were at site just a few weeks ago and had a chance to see the underground operations and had productive discussions with the management team there and know that they're well on track with various mining studies across the deposits and therefore we are bullish on this asset being incorporated into the overall Carlin Complex in the future. I should note in Barrick's September Analyst Day, they outlined exploration upside of 2 million -3.5 million ounces of resource, further showcasing our royalty upside. From this, and given the attractive grade and proximity to existing infrastructure, it makes sense for this deposit to be mined sooner rather than later. Speaking to that proximity, you can see some of the existing processing facilities from the Carlin Complex just south of Ren.
As you see in the image on the left, which is a plan view of the Carlin Complex, we have coverage over significant mineralization at Ren, the JV Zone, the Corona Zone, and the 24 Zone highlighted in red, all of which have had continued exploration success extending to the northwest of the Banshee and Meikle underground operations. One of the recent updates at Ren involving key catalysts and developments, Barrick is continuing to outline their exploration program in 2023 and continuing to complete mine studies. We're seeing quarter-over-quarter, Barrick continue to highlight this as the future of the Carlin Complex, and we're bullish on seeing this asset enter production in the next few years with a production profile of about 150,000-200,000 ounces per year based on our estimates.
Given our full coverage and 1.5% NSR, this could be another $6.5 million+ in revenue for us per year based on spot commodity prices. Beyond our three cornerstone assets, I want to highlight a couple producing assets to give more clarity that the team is very excited about. First is the producing Borden Mine operated by Newmont in Ontario within the broader Porcupine Complex. I should note Borden does not have much stand-alone disclosure as it is part of the larger Porcupine Complex, as reported by Newmont. With that, Borden is roughly a 100,000 ounce per year operation, and is an interesting asset as it is the first fully electric mine in Ontario, which aligns with our ESG initiatives, as Katherine previously discussed.
The current mine plan envisions Borden producing until 2027, with potential extension onwards with exploration of the complex. We hold a 0.5% NSR over the underground workings of the lake on the east side of the property, as I'll highlight on the next slide. Current mining is primarily on land and will work its way to the southeast under the lake where our royalty covers. Borden has been producing since 2019, and our attributable coverage, as you can see in the mine working, gives us exposure to those mine life extensions as they continue to explore at depth, extend along strike to the southeast, and could see an extension increase in our attributable production past the current production rate. This is a royalty that came to us through Ely. One of the many development stage assets and smaller NSR royalties that are fueling our revenue growth.
As mentioned, I wanted to highlight our significant royalty coverage over the lake area that you can see on the bottom right on the image on the left, for which the underground workings are expected to increase between now and 2027, with potential mine life extension, further showcasing our upside to the current NSR. The final producing asset I wanted to highlight is the Jerritt Canyon Mine operated by First Majestic. Unfortunately, First Majestic has run into difficulties in mining profitably, but they continue to explore the asset to unlock value and double down on their investment made in 2021 from acquisition from Sprott.
We hold 0.5% NSR and a per ton royalty over the asset, which is not a huge portion of our overall net asset value, less than 2%. It is an asset that we would like to see producing again in the near term. First Majestic has outlined the suspension as temporary in nature and continue to explore the asset, delineate new deposits, and looking for ways to mine in a profitable manner. They haven't come out with definitive guidance on when they can expect to restart. Conservatively, the Gold Royalty team could see restart come in 2025, 2026, after they've had a chance to optimize infrastructure and explore various deposits across the property. We've stripped out Jerritt Canyon from our guidance moving forward, although they did produce 16,000 ounces in Q1.
The restart of Jerritt Canyon now represents an upside to Gold Royalty given our we are now not counting on this asset in our forecasts. During the suspension, First Majestic will be processing approximately 45,000 tons of stockpile through the plant with exploration plans to explore for new regional discoveries and expand current reserves and resources, analyze the optimization of bulk mining and cost-effective mining methods, and convert inferred and indicated resources into measured reserve resources. First Majestic is planning to drill about 28,000 meters in 2023, focusing on large volume resource growth, further providing additional upside to our royalty. Overall, the Gold Royalty team is confident in First Majestic to leverage their underground experience from their Mexican operations to accomplish their goals of unlocking value at Jerritt Canyon.
Now I'll pass it on to Alastair, or we can take a break. Thank you.
We'll entertain some questions and answers right now while we prepare for a short break and give people an opportunity to refill their coffee cups. Peter, did you have some online questions? We can go back to questions in the room. We can give them an opportunity to ask questions before.
This one's a little louder. Yeah, Dave, there is one question, and given we just ran through the asset update, so I'll hit it. I think it'll help some of the people in the room as well. It's primarily over our coverage over a couple of those cornerstone assets, specifically Odyssey and Côté. I'm happy to take this one. Odyssey, with regards to the production figures that they're forecasting over the next few years up to full ramp up, what Ryan quoted were the full production figures. We're expecting to have roughly 30%-40% attributable coverage over Odyssey really over the next few years. Then as the asset is fully ramped up in 2027 and beyond, that's based on the underlying resources that we have at the project.
We have approximately 5 million ounces of total resource of the total deposit there, with the potential for that figure to grow given the significant exploration being conducted by Agnico at the deposit. That gives you some fence posts with regards to how much production we'll be receiving from Odyssey. Similarly, with Côté, over the entire life of mine, we're expecting roughly a quarter to a third, 25%-30% of the attributable production coming from our royalty at Côté. Albeit that portion is front loaded given where our royalty is focused. The mineralization is focused at surface, the higher grade portion where our royalty is located. Our attributable production is expected to fall off towards the end of the mine life as the deposit dips to the north and off of our royalty coverage land.
This provides a bit more clarity on those two assets. With Ren, we have full coverage over the entire deposit. Beyond that, I'd open up to anyone in the room for Q&A.
Brad Conacher?
Thank you. Just curious as to why we would introduce a drip with the stock trading at less than 50% of NAV? Can you tell me how many of the officers and directors management actually elected to reinvest versus taking cash?
Well, as far as I know, all of the directors and officers, which collectively own about 4% of the stock, participated in the DRIP. Beyond that, it was very, very nominally taken up. Again, the reason we introduced the DRIP is give shareholders a full optionality. If they choose to reinvest their dividends, they have an opportunity to do that.
Question about the one of the initial slides in terms of the comparison of the NAVs of the different royalty companies? From my generalist understanding, it's a bit of an art. Could you speak to your practices compared to other similar size companies? I noticed some of the analysts have different calculations for NAVs, perhaps than yours. Can you give any color surrounding that slide?
Yeah. I'll let Peter get into that in a bit more detail, but what I would say is those were based on consensus numbers. They're not internal numbers. They are based on the analyst coverage universe. Peter, please.
Yeah. Well, the gentlemen are in the room here as well, it is. We do have, in just the two years our existence, we have fairly widespread coverage, which I believe gives our consensus estimates a bit more robustness than some of the other smaller cap peers. Ultimately, we rely on consensus estimates to make it comparable to the universe. Ultimately, it's their estimates, but in my view, it's consistent across the board for comparable purposes, and really is driven by the present value of the cash flows within our business and having that clear line of sight on those development stage assets. And while there's a range, having that five, hopefully soon to be six or seven consensus estimates gives it that reliability.
There is, I would say, some disparity on discount rates, depending on the analyst. Some analysts attribute more to our exploration potential than others. Some use different multiples. It's not entirely consistent across the universe. I'm not really in a position to speak about their methodologies. I think they're actually quite robustly disclosed within their research reports. It's not, you know, they don't always do it the same way across the board.
[audio distortion] When you use the comparables of the other company's assets, how do you come up with those? Or like,
Yeah. The question is, how do we come up with the NAV for the for the other smaller cap companies? You'll note that on that peer group slide, it is a select group of the smaller cap companies where we do have estimates that we can rely upon. Some of the sub $100 million royalty companies, sub $100 million market cap companies might have no research coverage. In those instances, you're not seeing them on the chart. It's really the data that we can rely upon, where we have independent discretionary research to point to, as opposed to their own disclosed figures or paid for research.
Yep. Heiko at the back, I think.
Thank you. Hey, with Jerritt Canyon obviously shutting down and their punchline still is, you know, we're working on the contract or this might shut, you know, might ramp back up in the somewhat near future. Just wanted to see what you are doing with your internal valuation of the site and, how exactly you've adjusted and what factors you based it on, given that there are very conflicting messages out in the marketplace with what's actually happening there. Thank you.
I'm gonna let Peter handle that. He does a lot of the modeling there, so please.
Yeah, Heiko, good question. Really with regards to us as a royalty company, we view this as a deferral. We've taken what we've modeled for the asset, given the underlying resource there, and conservatively pushed this out to 2026. We think in the lines of temporary suspension, a three-year delay, is a conservative estimate, to see this asset come back into our revenue profile. With that said, First Majestic has outlined that they'll provide updated guidance this summer, I believe it's July. We're really waiting on them to provide more clarity on their plans and their updated guidance for the asset as well.
You have to trust.
We have deferred it, and our revenue guidance has completely stripped out Jerritt Canyon. We are not expecting revenue from that asset for the next three years. If it comes in sooner than that is upside for us.
I'll just add the microphone. [audio distortion]
I'll just add, you'll see in our quarterly disclosure as well, we did do an impairment test, and we management, with our auditors side, we did not impair the asset. Given that we delayed it, we deferred the cash flow in our models. It was not an indicator to impair that asset for the quarter. It is, it's a small portion of our NAV. We are still monitoring the situation. The First Majestic has a temporary shutdown, and we'll monitor it quarter-over-quarter, but it didn't have as material of an impact on our internal numbers to make decision to do any impairment at this stage. Yeah.
Thank you. Quick question for me, maybe for Peter. As part of your overall NAV, how much does Odyssey, Côté and Ren represent?
Yeah. Overall, our view and relatively in line with consensus too, is Canadian Malartic is about a third of the overall net asset value of the company. Côté and Ren represent about 10% each as well. All three together are approximately 50% or just over the overall net asset value of the business.
Thank you. You touched on your revenue outlook, but how should we think about your cost outlook? Should that be maybe baseline for 2023, or do you expect maybe slight increase in that year-over-year?
Yeah. Andrew can build on anything I say. That $7 million-$8 million in recurring cash operating costs is expected to be exactly that recurring going forward. We don't expect an increase there. If anything, Andrew continues to look for opportunities to save further G&A costs.
Finally for me, how do you view the dividend as part of your overall capital allocation strategy?
Pardon?
How do you view your dividend as part of your overall capital allocation strategy?
Yeah. Yeah. Well, look, obviously with our free cash flow, we're tipping into positive free cash flow next year and growing substantially from there. We're in a position to actually look at increased dividends over time. It's at a very nominal level right now. It's about $5.5 million per year. Next year it'll be at least partially paid out of free cash flow, and after that, more than fully covered out of free cash flow. We have very low debt, nominal debt on the balance sheet, less than $10 million. We're in a great financial position not only to sustain that dividend but increase it over time as free cash flow grows. We'll look at a formula, maybe something more formulaic as we get into more sustainable free cash flow going forward.
Right now, it's a nominal dividend. I think it helps diversify our shareholder base. You know, with that kind of cash flow profile, why wouldn't we pay a dividend? We have a lot of confidence in our operators. They're well capitalized senior operators. All of our growth are coming from significant assets with long lives. This is a dividend that we feel comfortable we'll be able to grow over time.
Jeff?
Just a quick one for me. Just with Newcrest and Newmont, Definitive, Pan American and Yamana completed, the market's gonna heat up. Do you guys have an edge that gets you to the table, or how are you thinking about getting to the table for these producing assets?
You know what? I'm gonna defer that question because John is gonna talk about our pipeline, things that we're looking at right now. I would say that we are almost exclusively concentrated on cash flowing assets in terms of what we wanna add to the portfolio. Obviously, we're continuing to generate royalties organically, long dated royalties through Jerry and Glenn's efforts in Nevada and Quebec respectively. In terms of acquisitions, major acquisitions, they're exclusively focused on cash flowing assets that could be massively accretive on a cash flow per share basis without undermining our net asset value accretion. The reason we've been able to do that and been able to grow so quickly is because of the access that our collective board of management affords us to these opportunities on a bilateral basis.
I can say, I can say quite transparently, we've competed in a number of competitive processes. We failed in every one of them because in our view, they were mispriced when they traded. At least mispriced relative to our cost of capital. We're happy to walk away from those and lose those types of competitive processes because we'll be price disciplined. Oh, yeah, Kerry? One more question, and then I'm gonna give you guys a break. Thank you.
Okay. I had a couple of questions. Firstly, that graph that you put up with the revenues by year, can you share which assets are actually included by year?
Yes, I can. One sec. Let me pop it up here.
Over and above the assets that are already producing, Peter, obviously, we know the ones that are producing.
Yeah. Beyond the producing assets in 2024, the big driver there is Côté, that is the incremental growth in 2024. Beyond the revenue growth from Côté is increased coverage across assets like Borden and Odyssey, and option proceeds are expected to be relatively consistent year-over-year. By 2025, we could expect to see some incremental revenue from Ren by the end of the year, as well as Gold Rock, for Calibre, and again, continued resource coverage or mineralization coverage at Odyssey and Borden. In 2026, we see the benefits of Ren coming in for the full year, fully ramped up at Côté, and assets like Railroad, Gold Rock, and while not in this forecast, the potential restart of Jerritt Canyon as well, coming in that year.
Okay. Are there any indexes that you think you could get into in the near term that would help with liquidity and investor interest in the company?
With regards to index, we are already in the GDXJ. Something we have considered, is the dual listing, which would put us in the TSX Composite as well, albeit that's not that significant of an inflow in passive funds. Beyond that, as a foreign private issuer in the States, we are evaluating what U.S. indices we could potentially be included in, but it's not something I could speak to definitively, Kerry, so.
Okay. There was a slide you had about meters drilled on your properties in 2021 and 2022. Can you hazard a guess as to what that number might be in 2023? It was 700,000 meters, I think in.
Yeah. As you'll imagine, exploration has pulled back a bit in 2023. We're still forecasting approximately 600,000 meters of drilling on the portfolio based on quoted 2023 exploration plans by the operators. A big portion of that is First Majestic continuing to evaluate opportunities, the Odyssey project, and then some smaller programs at assets such as Fenelon, another 30,000 meters there, and Whistler starting their inaugural drill program later this year as well.
Okay. Thank you.
Okay. I will cut it off there. It's 10:35 now, Toronto time, Eastern Time, for those that are not in the same time zone. Let's come back at 10:50. Let's take 15 minutes. Actually, why don't we make it 10:45? Because I appreciate people online. That's a long time. 10:45, we'll resume presentation. We have a Junior A hockey player that's gonna come up and talk about our farm team of opportunities. Many of you not know Alastair used to play Junior A, so it's entirely appropriate that he talks about the farm team of opportunities we have on the portfolio. Okay, we'll see you in 10 minutes.
Portfolio where we see some potential future growth. Not to worry, I'm not gonna go into painstaking detail of the remaining 200 assets in the portfolio, but I'm gonna concentrate on five of those assets to show you where some of the future growth is occurring. A part of a recurring theme here is, of course, the jurisdictions which we operate. This is another image to help illustrate that we're focused very much in North and South America. That suits us very well. Good, strong, geopolitically stable jurisdictions. On the right-hand side of this image, you can see the actual royalties per state or by province, by country. You can see we have a very strong concentration, of course, in Nevada, Quebec, Ontario. That's great for our company, also great for me.
My background started as a geologist in Kirkland Lake and Timmins, and was a chief geologist for Kinross and Placer Dome and for Goldcorp in those regions. Know the Abitibi very well, and some great jurisdictions there. There's nowhere else we'd like to be than some of these jurisdictions. As Dave mentioned, too, we have the capacity to take on additional risk and look globally by having such a stable foundation in the Americas. We did talk about the 700,000 meters of drilling that was completed last year on our properties. The beauty of that is that we don't fund that. It's funded by our operators and our developers, and our company stands to benefit entirely by any upside exploration success or new deposits that are found or added to the pipeline.
The current estimates are about 600,000 meters for 2023. Of course, that's a figure in progress as the companies come out with plans. Summer season's about to start in the Northern Hemisphere as well. Within those five key projects that I'll give a little more background on, three of them happen to be in Nevada, so that shows the jurisdiction that we have a lot of focus on. The first one to come up is the Granite Creek project, and this is operated by i-80 Gold. It's at the northern end of Nevada. It's near the intersection of the Battle Mountain Trend and the Getchell Trends. It's a sizable deposit in its own right already. It's already produced over 1 million ounces from historical production.
i-80 is really focused on the future of what this operation could become as an underground operation. As an underground operation, it has a couple of key strengths. Primarily, would like to focus on the grade component here. The underground resource is north of 10 grams per ton, which is a high-grade deposit. It will recover some dedicated processing. There is some refractory ore here. It's typical Carlin-style mineralization. There is also some oxide ore that's being processed in the earlier stages from some of the near surface mineralization, but a significant Carlin-style deposit here. I would also point out this is the-- one of the few royalties that we have, which is an NPI interest, which is a net profits interest. It's about 10% covering the deposit right now. It is a sizable resource.
There's over 0.5 million ounces in the underground and also a sizable resource of, you know, close to 1.3 million ounces as an open pit resource as well. What we can see and what we have seen from the operator here, they have been very aggressive with a drill program, a very successful drill program completed in 2022. There's some 30,000 meters that were drilled on the deposit. That's adding to the discoveries primarily on the OG Zone, which is the nearer surface mineralization underground. They are updating a feasibility study on OG, which should be out sometime in this quarter by i-80. Also some of the deeper holes have been targeting this, the South Pacific Zone, which is basically an extension of the underground. The grades continue, mineralization continues, and the ramping will continue.
There are a number of underground levels already developed. There has been some initial mineralization shipped to plants for processing. The significant portion of this comes in the future once they announce the final plans coming out of that feasibility study and a future PEA on the South Pacific Zone as well. We're really staying tuned, and we're excited the advancements i-80 is making here at Granite Creek. Shifting back to the north, back to my, I guess, where my roots were in the, in the Abitibi is the Fenelon Gold Project. One of the key things that really excites us about this project is the exploration potential. The operator here, Wallbridge, has been very aggressive with their drilling programs.
They've drilled some 450,000 meters since 2017, this year they're planning an additional 15,000 meters. Still staying aggressive on the exploration. Many of you may recall that the first resource that came out on this deposit, I believe, was in 2021. It was a started out life as a fairly low-grade open pit resource, which kind of surprised the market a bit. Wallbridge since pivoted and have had a focus on the underground now. I think this is a very significant underground resource.
It's about 4 million ounces combined categories, with a grade north of 3 grams per ton. With a good sized bulk scale operation, they have been envisioning something in the scale of 6,000-8,000 tons per day, which as a comparison, would be very similar to what the Young-Davidson mine is producing by Alamos, which is about 8,000 tons per day at a grade actually just under 3 grams per ton. Similar scale and a little better grade is what they've been talking about here. Really it's the growth potential that is also part of this. The image on the right-hand side at the top, we can see it is along the Detour trend.
It's a major structural corridor, which hosts Canada's largest deposit, Detour Lake Mine, which has a total endowment of some 40 million ounces at that one deposit alone. This structure continues across the border into Quebec, through the Fenelon property here. There's a great exploration potential on this property, and we're very excited that they are planning to release a PEA on the project sometime this quarter is their guidance. With that, we should be able to model this into our production profile. At those sort of grades, that sort of tonnage, it's looking at about a 200,000 ounce per year, plus or minus, would fall in line with that scale of production and those grades from the underground.
Shifting back to Nevada on a key property, which is now held by Orla Mining, which is the Railroad-Pinion property. It's also one that I'm quite familiar with. I first visited this project actually in 2015 when it was just being discovered by Gold Standard Ventures. At that time, I was working for Goldcorp, and we liked the project so much, we invested $16 million into it to further advance Gold Standard. The good news for us as the royalty holder on this property now, we have a 0.44% NSR over a large portion of it, including the primary driver of the value there at Darkstar. A large portion of this has been advanced and will advance further by Orla.
The significance there is that Orla is now plus or minus a $2 billion-dollar market cap company. They've established credibility by building and operating the Camino Rojo mine in Mexico. They've got a very strong operating and development team that can see them move forward on this project. There is sizable reserves, or sorry, excuse me, resources on the project, which Orla will be advancing into further studies throughout the year. What I would illustrate here is that the coverage on the deposit is not continuous. Like many properties in Nevada, this is what they refer to as the checkerboard pattern of claim ownership, and our royalty covers the areas highlighted in yellow.
But what you can see from that, it does cover most of the main resources, particularly at Pinion and Darkstar, and as well as some of the more prospective areas such as the Jasperoid Wash target to the south. The royalty covers those properties. What Orla have said is that they have their Record of Decision, which is their permits of construction. Really, continuing to fine-tune their studies. They are looking to make a construction decision within the next two years. This is information from Orla's website showing their development timeline. Because of its location, this is in close proximity to Newmont's Emigrant and Ren former operations. It's in a developed and established part of the state with good infrastructure.
There's roughly, you know, a two-year permitting process, such that by the end of 2024, permitting is complete, and they're beginning construction. That's the timeline from Orla, which is great having an established operator and developer now running this project. One of the projects that Peter had touched on earlier is the Gold Rock Project. This is run by Calibre, and I'd like to highlight Calibre have been very successful in a much more challenging jurisdiction in Nicaragua, and they've brought mines into operation there. They follow a very simple development and operating strategy, which is a spoke-and-hub system, to have one central processing facility with surrounding exploration properties. With the infrastructure in place, advance your properties surrounding that infrastructure, you can very quickly and easily, with efficient use of capital, bring those into production.
That's exactly the same model Calibre is exploiting here. Gold Royalty, you can see it's just to the east of their main Pan mine and processing facilities at Pan. To show Calibre's commitment to the project, they have announced 35,000 meters of drilling in 2023 to try and expand upon the existing 400,000 ounce resource that they have, which is very amenable to leaching facility. It's just over 50,000 ounces per year, has been their plan. What they have also been announcing is significant drill hole intercepts with very good grades and good widths, so there's a very good likelihood this resource could expand.
That's in fact what they plan to incorporate that additional drilling into the feasibility study, which will be announced in 2024, along with a decision to construction. Because of its location and with the infrastructure nearby, this can ramp up very quickly into an operating site for us. Final project, just to give a highlight on, is the Whistler project, and this is a project I'm very familiar with, as the CEO of GoldMining Inc., the former parent company of Gold Royalty. We've just launched a new company called U.S. GoldMining Inc. We've launched that on the NASDAQ within the last month, specifically to advance and move forward the Whistler deposit, which is almost 9.5 million gold equivalent ounces. It's in a great location. It's only 100 miles from Anchorage.
It's about 70% revenue by gold, significant copper on it, with some tremendous upside. An experienced team has been brought in to lead that work, including the CEO of that company is Tim Smith, who many of you may recall made a major discovery with Kaminak Gold, which was acquired by Goldcorp, acquired their assets in the Yukon, the Coffee Project, for over $500 million. An experienced team leading that work. Now, that project hasn't been drilled in over 10 years, so it's good to see that activity is resuming this summer. The camp is being refurbished and there's a planned drill program of some 10,000 meters, be the first phase of that project, drill work starting this summer.
In fact, there's a focus on the high-grade core of the deposit. If you look at an elevated cutoff within the existing resources at Whistler, there's some 6 million gold equivalent ounces at about 1 gram per ton core in that deposit. High grade core with a number of deposits to be tested in a good jurisdiction. That work will lead to the announcement of a PEA study in 2024. I guess this is a good point to mention too, that in addition to the royalty that Gold Royalty has there, they also have buyback rights to acquire an additional 0.75% royalty for $5 million from Osisko.
It's a great deposit, and it's an exciting time to see it actually starting its next phase of exploration. That was a little bit of a snapshot onto a couple more of our development projects that are next ones in the pipeline. I think, are there questions now? Or we'll wait for John.
Okay, I'll pass to our Chief Development Officer, John Griffith.
Thank you, Alastair, and thank you everyone for attending today. It's a pleasure to be here. My name is John Griffith. I'm the Chief Development Officer, which means I'm primarily responsible for our M&A strategy and our, quote-unquote, "non-organic" growth. Today, I will share with you why growth is important to a company like ours. I will also share with you some of the perspectives that we have on how we think about valuation. Also talk to you about what we believe to be a differentiating multi-pronged strategy to growing the company. You'll also hear from Jerry Bowman, who is Vice President of Nevada Select Royalty. He's gonna talk about our organic royalty generation model. Sam Mah, who's VP of Evaluations.
Sam will talk to you about our comprehensive due diligence review process. It's been established beyond doubt that our sector is welcoming of consolidation. The benefits of consolidation beyond human talent and asset quality are best measured in terms of capital markets and operating scale, which drive increased trading liquidity, higher valuations, and a lower cost of capital, creating a virtual cycle in which capital can be more efficiently deployed on an accretive basis to drive further growth. It is this dynamic which we believe is driving the current wave of consolidation. Since our IPO in March of 2021, there have been at least seven change of control consolidation transactions in the sector.
The wave of consolidation began with Gold Royalty's acquisition of Ely Gold Royalties in 2021, followed shortly thereafter by acquisitions of Golden Valley Mines, as well as Abitibi Royalties, which we closed in September of 2021. In 2022, Sandstorm acquired Nomad Royalties, Elemental Royalties merged with Altius, Royal Gold acquired Great Bear Royalties, and Triple Flag Precious Metals acquired Maverix Metals. Despite the recent wave of consolidation, there are, by our estimates, more than 30 private and public royalty and streaming companies. By striving to create scale and becoming investable by meaningful institutions, the re-rate potential is very significant if we achieve a multiple closer to that of the seniors between 2x and 3x net asset value. What will drive this re-rate?
At present, we believe the market is favoring current cash flow over growth. It won't take long for this dynamic to shift as the quality portfolio of our assets begins to ramp up to production. We have peer-leading growth over the next several years. This growth is underpinned by assets that are not only among the largest gold mines in North America, but also mines that will be producing gold for many decades. This is a clear differentiating feature of our company. None of our more immediate peers have multiple assets such as Odyssey, Côté, and Ren. That will all be producing gold this decade and still be producing gold in 2040 and beyond. Why do we focus on net asset value or NAV?
NAV represents the present value of the life of mine cash flow and the key assumption applied in building a DCF model being the mine production schedule. Mine production schedules are driven by technical reports when available. When a production schedule is not available, an internal estimate is made on a case-by-case basis to assess an appropriate mineral resource conversion factor, production rate, and likely timeline to the start of production. Adjustments are made to reflect the perceived technical risks, which may be influenced by, among other factors, the geology, mining method, and metallurgy of the ore body. Macroeconomic assumptions such as commodity price, exchange rates, and discount rates are then applied, and the result being a calculated scientific reflection of the value of the asset.
Once aggregated across all the assets in the portfolio, we believe NAV to be the most appropriate reflection of the underlying value of the portfolio. What are the issues with using single year sales or cash flow multiples to value royalty companies? We would argue that these multiples fail to reflect the underlying asset quality, the portfolio duration, the specific portfolio risks such as, jurisdiction, and in short, the cash flow revenue multiples, while useful, simply provide a static snapshot at a moment in time and don't tell the full story. I think what helps set our growth strategy apart from many of our peers are the four fundamental pillars of growth. Some of our peers focus on one or two, and in some limited instances, three of these four pillars of growth. We believe having multiple avenues to growth meaningfully enhances our ability to acquire great assets.
It's important to emphasize that great mining companies are built on the back of great assets. You've heard it said today, and I'll repeat it, that Franco-Nevada's foundational asset was a royalty on Barrick's Goldstrike mine. We have a royalty on the northern extension, an important future contributor of Goldstrike, the Ren project, among other foundational assets. Continuing with the theme of consolidation, corporate M&A has been a big driver of growth for Gold Royalty, helping establish solid foundations upon which we will continue to build our business. In addition to acquiring great assets, corporate M&A drives increased scale, lower cost of capital, and provides G&A synergies. The next pillar I'd like to highlight is acquiring third-party royalties. These are royalties acquired from existing royalty holders, such as mining companies, landowners, or prospectors.
For these royalty holders, a sale to Gold Royalty offers the ability to monetize and daylight value for assets that would otherwise be non-core and illiquid. Depending on the preference of the seller, we're able to offer cash, stock, or a mix of both as consideration, providing the sellers who opt for stock with continued exposure to the divested royalty, but within a larger, more diversified portfolio of assets. An example would be Nevada Gold Mines' sale of the portfolio of royalties in which NGM opted to take shares, making them our second-largest shareholder. The third pillar of growth that I'd like to highlight is providing primary capital to an operator to fund either the development or expansion of a project or mine.
Royalty and streaming as a source of capital to fund mine development was once considered to be a boutique form of financing, but over the past couple of decades has become mainstream source of capital. The equity and debt markets fluctuate over time, depending upon what the state of the markets is and the desire for exposure to development risk by investors. Within the mining industry, our subsector provides a very competitive and steady source of capital for operating companies. Given royalty and streaming companies typically trade at higher multiples to reflect the benefits of the business model, namely no exposure to operating and capital costs, yet continued upside to exploration and expansion successes, coupled with the diversification offered through having multiple assets, we're able to provide a steady source of capital on an accretive basis to fund development in the industry.
Financing transactions typically require cash consideration, given the primary objective of the counterparties. We can tailor and structure the terms to meet the needs of our counterparty while mitigating risks to Gold Royalty. The fourth and final pillar of growth that I'd like to highlight is organic royalty generation. This is the lowest cost way to generate royalties, providing near infinite potential returns over time. Jerry Baughman will be speaking about the aspects of our growth strategy in greater detail, and certainly will be speaking about how it works. I'll leave that to Jerry to provide an overview of what we do to generate royalties organically. I will highlight, however, that we focus on Nevada, Quebec, and Ontario with the work that Jerry and also Glenn Mullan do in those key territories.
While our arrangements with Prospector Royalty Corp., or PRC, provides exposure to other regions through PRC's vast royalty database. With that, I will now hand over to Jerry.
Thanks, John, for the introduction. Hello to everyone today. My name is Jerry Baughman. I run Gold Royalty's generative business out of our Reno, Nevada office. I've been working as a geologist for more than 35 years with a significant portion of that prospecting and staking claims throughout Nevada. As a result, I've helped assemble dozens of generated royalties. I've been able to acquire a vast amount of geological data and information along the way. In fact, our data collection would rival almost any company working in Nevada. Majors like Newmont and Kinross, to name a few, have done data swaps with me to acquire data they didn't have. I'm excited to walk you through what it is I do and how the royalty generation business model is a unique advantage for Gold Royalty. In the simplest terms, royalty generation involves three steps.
First, identifying prospective land, second, staking that land, and then ultimately vending that land package to an explorer, developer, or operator in exchange for royalty and option payments. A simple model, yet difficult to replicate. Identifying prospective land is driven by my knowledge and analysis of geological potential of a prospect. It has taken a long time to have the experience and knowledge to actually make this work. In some instance, prospective land can be neighboring an existing mine or development project. In these scenarios, the stake claims would then represent a portion of the overall project once the stake claims are vended to an operator. An example would be our 2% NSR of Rodeo Creek Project north of Rand at Nevada Gold Mines, south of Turquo Mine, just north of Goldstrike along the Carlin Trend.
In other instances, we've considered consolidated fragmented claims that haven't seen recent exploration of the fragmented lands positions. Once consolidated, we will hold a royalty over the whole project. An example is our royalty over Tonopah West project advanced by Blackrock Silver. With regards to the actual execution of staking the claims, it is a simple, very low cost exercise and simply requires the recording of mining claims with the county recorders and state BLM offices. The cost to maintain the claims is minimal, and once vended, the operators always take on the cost to maintain the claims. The last step of the process is to find a partner to vend the prize. However, we will also receive option payments over a term of three-five years, and in some instances, get a work commitment from the counterparties.
As of today, we've generated 63 royalties in America using this model and consistently generate a few royalties each quarter. Beyond this, our team in Val-d'Or, Quebec, runs a similar model and generates additional royalties for Gold Royalty. A key point of validation of the prospectivity of the claims we are staking is the quality of the operators that we are doing deals with. Recently, we've entered option agreements to generate royalties with companies such as Barrick, i-80, Newcrest, Eldorado, Centerra, and Yamana. Some of the biggest names in the sector are now exploring properties we originally staked. Another great element to the business model is that it consistently contributes supplemental cash flow from option proceeds. In 2022, we received $2.2 million in option proceeds.
Finally, I really want to highlight that it's a very low cost model. Some of our peers that highlight they are royalty generators actually drill their projects and spend millions each quarter in exploration expense. In contrast, we vend our projects to operators before we ever spend a cent exploring the project. In Q1, we spent less than $20,000 on claim maintenance costs. We are creating royalties practically for free through our sweat equity and vending those projects out to operators. An important aspect of the royalty generation model is that it's somewhat of a second order effect, the connections and acquisition opportunities we get access to by having boots on the ground.
Similar to what David noted with regard to the connectivity of the board, having a strong generative business gives us access to third parties that hold royalties that our peers never see. The acquisition of our royalties over the assets like Ren were acquired through those cherished relationships I've built in Nevada over the past few decades. I'm happy to discuss in more detail during the Q&A block. Before then, I'll pass over to Sam Mah to discuss our due diligence approach for more additional acquisition opportunities.
Sam, over to you.
Well, thank you, Jerry, for your presentation and your insights on the royalty generator model. Good morning, everybody in the room, as well as the people online. My name is Sam Mah, I am the Vice President of Evaluations. I'm pleased to be able to share with you some slides on our due diligence process and how we use it to evaluate royalties and streams. Please allow me to introduce a little bit about my background. As David mentioned, I am a mining engineer, I would say that I've had a tremendous, exciting career. I've been building up my experience in a very traditional approach. I've begun in operations and learning how to operate mines, get dirty, have a look at the rocks and at the face and connect that to plans.
Eventually, I got promoted and went into consulting. There my eyes got opened. I got a chance to see the world and explore other metals, in particular, copper. I find myself now in head office roles, which I really enjoy doing because we're really building a company here. Specifically, in the last 15 years, I've been doing a lot of due diligence. This topic is really close to my heart. I'm gonna walk you through a little bit of what I do. I still, for some reason, enjoy digging into the details. I love pouring into an asset, trying to figure out what makes it tick. Eventually I find out if it's good, bad, or otherwise.
That's really something that requires me to draw on my experience, as well as my educational background. It's the same for our team. That's the reason why I can honestly say that the Gold Royalty team here is very strong because we have depth, and we have a wide breadth of experience. I think that's what makes us really a good team. We're gonna go on a journey. We're gonna go through a couple of slides, and we're gonna go through the process, and we'll see how our team collaborates together. What you see here are four key areas, a very key part of due diligence. Let's begin in the left corner, top left, which is the technical. That forms the foundation of our view on value.
That's where I get to ask the tough questions. Is it feasible? You know, is the mine gonna be found on a solid resource? Does it have integrity? One big question that I do answer is, you know, does mining rate, is it sustainable when we actually do it? Often we'll come across projects with really challenging metallurgy. Those are the type of questions that I like to pore over, as well as there's opportunities. In doing the review, you're gonna find that there's gonna be omissions or additions, inputs and assumptions. Are they reasonable, and if we agree. Moving over to the top right square, we're gonna come into a topic of finance and economics. I believe Gold Royalty as a group does this part quite well.
The reason why I say this is because we're really marrying the technical experience that we have with a financial outcome. Over the years, I've spent time developing a proprietary model, and that just helps us understand what we're looking at, and what it produces is a health check, and that's something that's really key. You'll all agree with me that it makes no sense if we're gonna buy something and put a burden on it, whether it be a royalty or a stream, and make it unsustainable. Nobody wins if the mine actually shuts down. That's really important to me. We'll talk about that a little bit more later. Moving down to the lower left, we're gonna hit the legal review, and that's also an important step.
I think we've talked about it here before that a lot of what we're buying here, royalties and streams, they're just agreements. We really have to be careful in how we paper them. There's gonna be two situations. We're gonna be either creating new ones from scratch, or we're gonna be reviewing a portfolio of old ones. A lot of the things that I like to look at when I look at the terms of these agreements, for me, it's important to know about access to the site. Will I have permission, or do I have a right to visit the site? Reporting requirements or obligations, you know, what are they gonna provide us?
Are they gonna give us the necessary information that we can actually calculate the royalty to see if it makes sense? We also, at this stage, we look at the counterparty, what kind of track record do they have? Are they in compliance with the laws and regulations of the land? Are there any specific jurisdictional differences that we have to be aware of? This is really important, you know, is the royalty even registered properly and is, you know, permitting in good order. Those are the things that we look at when we look at the legal.
Moving on to the last topic of ESG. I think Katherine's done a great job in sharing how we've really elevated our game, where we're looking at ESG in a different light, and I think we do a better job now because of the wealth of experience that she brings to the table and expertise. When you look at all four categories, that's what we do for due diligence, and that's how we pull together what we think is an appropriate valuation. If we do our job right, that's what we end up with. Here we have a room of seasoned, you know, veterans and professionals in mining, and I would say that this is nothing new. Let's call it best practice at best, right? I think what we do different, again, that speaks to the team, how we conduct business, and I think we do it well because we have depth.
All righty. She's stuck. Oh, there you go. There you go. I did it. All right. As we close out due diligence, we have to kind of show that it's intertwined with our bidding process. This is just really an illustration of how, if it were to work perfectly, this is what it would look like. The far left, we're gonna be talking about screening, and it's a really important step. It's high level. It's based probably on desktop, public information. We're looking here to ask ourselves, you know, does this asset or opportunity fit our company? We're gonna look at commodity, we're gonna look at timeline.
Cash flow is really important to us, right? We're gonna be looking at how soon that can come into play. Does it have a long mine life? Is it generational asset? Does it have exploration potential? These are things that if we can't even pass this step, we don't wanna waste our time. It's so important because what I do is the second part, the preliminary review, is slow, it's arduous, and it takes time to build what we call the technical evaluation model. That's the proprietary model that I had mentioned earlier. It's so important to us because we really wanna know the health of what we're buying. I'm gonna give you an example of how I use that model.
One of the coolest things is that you built a, you know, variant of parameter, whether it's a technical parameter like dilution or grade or metallurgical recovery, and you marry it with a financial parameter like operating costs or capital or discount rate. If you can look at a wide range of things on a table, you're gonna see that at some point, the NPV might not make sense. It might even be IRR. Whatever the indicator, it will show that at some point it won't meet our threshold. That's really important to me that if we place a royalty or a stream on an asset, that it has to withstand that. That's really important, but it does take time, unfortunately.
Moving on, if we do pass muster, we go to a non-binding bid, here we have a chance to be creative, a chance to really write the offer so that either suits our partner or more or less protects ourselves as well. We can put in contingencies, you know, payments that are due at a milestone. If they achieve certain things, yeah, it makes sense to give them some money. That's really important. In certain situations, we wanna have the ability to include ESG-linked payments. Excuse me. Those are probably more associated with new royalties and new streams. Once we submit a non-binding offer, we advance to the next phase, we quickly go into confirmatory due diligence. Here is kind of a super compressed timeline.
You really wanna look at the things that you identified earlier, whether they're amber flags, whether they're risks that you have to mitigate. At this point, all the stuff that we've been doing is in-house. Now we might actually bring into play external consultants, give us a hand, understand the things that we may not understand. That's an important part of confirmatory. If a site visit is offered, I will definitely take it. It's something that I value immensely. Any opportunity to be at the site is really an opportunity to meet the people, the management, the operators, and get their sense of the property.
I can tell you so many site visits that I've conducted, I've learned so much, and I think it's really important to get the lay of the land and really understand what the bottlenecks might be because you get to ask questions twice, maybe 3x . If they don't give you the same answer 3x , you know something's amiss. At this point, we're papering a binding offer, we submit. We're at the last stage. A lot of work has gone in at this point, I can tell you, since I've joined, we've reviewed hundreds of opportunities, and we've only consummated six transactions. To me, it's a reminder of how difficult this work is and how important and how special it is when we actually close a deal.
When we talked about our portfolio of over 200 royalties, it's something to be proud of, and it's a testament of our process, that we've really applied rigor. We really tried to, you know, pick the best stuff. I'm really proud of what we've accomplished as a team, and there's probably three takeaways, right? You know, there's gonna be the quality of the asset. We're gonna be looking at You know, strong growth pipeline. I think it's really important, too, to look at the operator. You know, we have been associated with some really good operators. That's really what I wanted you guys to take away from today's talk, is that our process does tie it all together, and it's a worthwhile investment in our company.
I'm gonna conclude before I have too much more to say, but I'm gonna pass it over to Dave. All yours.
Great. Yeah, thanks, Sam. That actually concludes the formal part of the presentation. If there's one message that you take away from here, I hope it's that we're exiting the phase of startup into what is a systematic and sustainable business on the cusp of significant free cash flow growth. Also, I think the professionalism of our team. This is the first time I think our shareholders have had full information. you know, we've been a startup for the last couple of years, but now you have an asset handbook, you have an ESG report. you have the benefit of sitting down and listening to my team holistically go through our business, how we think, what our vision is, what our strategy, and how we execute. What I can assure you is we're gonna be consistent in that regard.
Consistent in our transparency of sharing information with you, but also in terms of how we look at assets and look at opportunities, how we acquire them, how we execute, and how we continue to grow this business. I'm very, very proud of the fact that we've brought our business to a sustainable level, both in terms of going through the post-merger integration with three companies in very short order and driving costs out of the system. We continue to do that and having Andrew come on board early this year has really accelerated that process. You can see with the strong operating network, operating partnerships that we have, we are on the cusp of executing on that growth that we promised, and it's fully paid for. That's the beauty of it.
We're in harvest mode right now while we continue to look at new opportunities to supplement what's already a very high-quality portfolio. With that, I think we've bought you some time, but I still want to have an opportunity for you to ask some more questions and answers. Questions and we'll try to provide the answers. You don't have to give us the answers. Questions for you and answers from us, please, both online. Yep. In the back, Heiko.
[audio distortion] In your due diligence process, what percentage of projects makes it to execution?
Our question was, on the due diligence process, what percentage of the things that we look at make it through to what phase, Heiko?
All the way to execution.
Right through to execution. Yeah. Sam, John, do you wanna grab a mic and try to answer that so the online network can hear?
Yeah, Heiko, great question. I think, as Sam mentioned, we've looked at over 200 opportunities since our formation, and we've concluded six transactions. Now, some of those transactions we've looked at might be quite small, you know, less than $1 million. Some have been very large and potentially transformational. The reasons why things don't happen, you know, I think, Katherine mentioned 11% of the opportunities didn't pass muster on the ESG side. I remember one particular transaction that we turned down because of environmental concerns, relating to tailings. It was only several months later that we saw one of our competitors actually acquire the same asset. We wouldn't change it. We wouldn't go back. You know, I think that discipline is important for the longevity of the company.
I think, you know, another very fundamental reason why that ratio is so small is because of our discipline around value. You know, we're not going to do something that doesn't make sense in terms of creating long-term value for our stakeholders. I think the focus today is very much on cash flow generation and assets that will be significantly accretive to our cash flow profile. You know, I think we've got plenty of what I'd refer to as option value in the portfolio. As you saw in the slide that Peter discussed, there's over 150 assets that we would describe as being exploration. Those are, you know, we use a somewhat flippant term, lottery tickets.
They're lottery tickets that really don't cost us anything. To give you an example, Royal Gold bought a portfolio of exploration properties from Barrick two decades ago. One of those assets today is one of Royal Gold's primary cash flow generation generators. That is the power of the exploration assets. The last thing I'd say on this process is that slide that Peter mentioned where you saw the 150 exploration properties, the 30+ advanced exploration, and then the development assets, et cetera, think of that as being highly organic. Those assets are not stuck in any one category forever. That list of well-capitalized, you know, operating companies that are managing those assets, they're not looking for those assets to stand still. They're moving those assets through that pipeline as well.
Growth is organic in our business and, you know, my responsibility, again, is that non-organic growth, which as we mentioned, and I think Sam articulated very well, you know, we're very thorough and we're very disciplined, and that's why that ratio is quite low. That ratio, you know, I've done a lot of due diligence in my time when I was a banker on some of our peers. That ratio is no different in many of our peers in terms of the number of assets that they'll look at as well.
Terry? Terry Smith.
Yeah, I had a couple questions for Sam, just on the process. What sort of gold price or metal price assumptions do you use? What sort of discount rate? Do you only model the reserves that the company reports? Do you generate your own geologic model when you look at these assets, or do you rely on the model that the company's provided or has posted publicly?
[audio distortion] It's probably better, if you don't mind, folks, just to go to the podium for this. That way we can see this because we have headlights and everything else. Sorry.
Okay.
Thank you for the question, Kerry. That's a multi-pronged one, I'm gonna try to answer all the components. I don't think we have a crystal ball. For metal price, it'd be fair to say that we probably point to a consensus of some sort. We'd use something like that to our valuations. Discount rate, you know, we would probably begin at five, but because of other issues or, you know, risks that we identify, we might escalate that. I can't say for sure what number that would land at, but certainly a starting point could be five. As far as the mineral resource estimate, we vet that wholeheartedly.
That's really important to us 'cause that's the foundation of what we're buying, and we will have that looked at, all the input and assumptions. Does it really make sense? Is the resource integral or it has integrity? I hope that answers your question.
I lost some with the construction going on. What was the last part about the modeling and do you model just reserves or how do you do that?
Oh, sorry. Yeah, we do look at the resource and fulsomely, and so we check the model right through from top to bottom.
Okay. Do you build your own modeling or you kinda use the model that you've?
We'll send that out to external if we're gonna do that.
Okay. You will. When you're going through that due diligence process, is it mostly your own in-house team, or do you rely on consultants for certain aspects of the process?
We're predominantly in-house, but we will pull in consultants as needed.
Okay. Okay, thanks. I just had a question for Jerry on the Nevada team. Do you only focus on Nevada, or do you have a focus on the Western U.S.? Do you care about the Slate Belt in Carolina? Like, what is your sort of focus in terms of where you will operate?
We actually have assets throughout the Western U.S. One of the slides you couldn't notice so well, but we have projects and royalties in California, Utah, Idaho, New Mexico, Arizona. We do work the whole Western U.S. In fact, we're just about to ink a deal on a royalty in Montana. We focus on Nevada 'cause that's where the people wanna be, that's where most of the activity is. Obviously, we work the whole Western U.S.
Okay. Then I guess the Val-d'Or office looks at Canada, and is that kind of their responsibility?
Yes.
Okay. Okay, thank you.
All right. If you have other questions from the group, just raise your hand. There is one online I want to bring up, and I can address. Jacques from LBS asks, "Could you remind us the status of the Marigold royalty at this time? For everyone's benefit, this is one of our classified producing royalties. Is it generating royalty revenue currently, and could you tell us what it generated in Q1?" Our coverage at Marigold wasn't currently producing in Q1. This is something that we're forecast to see go into production in the coming years. We are currently receiving lease revenue, so modest income from Marigold. We do have a royalty over this producing asset, so something that will come in the future, albeit a smaller portion and a smaller percentage NSR. Not a material asset overall for us.
Moving on to some of the other online questions. David, I think maybe for you to address, and it's a somewhat common question, but maybe just some commentary on the recent share price performance and what may have caused the downturn in our stock.
Yeah. I think John actually quite eloquently expressed, I guess, the weight on our stock. This is a market where we've seen an unprecedented increase in nominal interest rates over the last year, and that means discounted cash flows, particularly long-dated cash flows, get weighted down as a result of that. It's not a market that's paying for growth. It's putting a premium on cash flow. We're recognizing that in our corporate development activities as well by focusing on opportunities that are providing more immediate cash flow, more immediate cash flow per share. Not just cash flow for the sake of cash flow, but ones that actually add value to the portfolio. That's certainly our thesis. The other thing I would add is, you know, John argued for NAV as the best way to measure the value of a company.
I absolutely agree to that, but there's even a flaw in that because we have some assets that have multi decades of reserves ahead of them. As many analysts in this room know, once you discount cash flows beyond 10 years, they're effectively zero. We're not even getting the value of that longevity within some of these cornerstone assets, which is a bit frustrating. Even NAV, as good as it is as a measure of value of the underlying business, is still an imperfect measure. You really have to look at a variety of things. Clearly, the market's playing a premium for companies that have higher cash flow per share multiples right now, or cash flow per share metrics right now. Excuse me.
Yeah. A few other online questions I'll just address in tandem here. A few along the lines of would you acquire assets in certain jurisdictions? I think as David noted, we go where the technical merits of an asset are strong, rather than focusing on specific jurisdictions. We've evaluated opportunities throughout South America, Australia, Africa, and it's really if we like the asset and are comfortable with the operator and the jurisdiction that it's located in. Another question, do we plan to acquire any mines? No, we're a royalty company. We focus on acquiring royalties and streams. There's a few questions related to coverage of the Odyssey project.
I mentioned it earlier, but we have about that 30%-40% overall coverage and approximately 5 million ounces of underlying resource at our project, which could grow in the future. Then one last question, and maybe I'll put Andrew on the spot, is are there any tax incentives or are we getting any tax benefits with our royalties currently, and how do we model that?
Do you wanna come up here, Andrew?
Look, that's pretty quick. We currently don't have specific tax incentives or benefits with our royalties other than the fact that we do have some accumulated tax losses. How we structure some of the future growth and acquisitions, depending on where it sits within the corporate structure, we are able to leverage and benefit some of those losses. Not inherently at the moment, but we could potentially have benefits in the future.
Thanks, Andrew. That's really it for the online Q&A, unless there's any questions left in the room. Yep.
Just one quick question. Regarding the share price and its current level, has management been taking advantage of that to purchase shares?
Well, I've added about 10% to my position this year. Yes, we've seen insider buying. GoldMining has been a buyer as well, and they've increased their level. They're an insider obviously with a significant shareholding of over 15%. Yes, there has been insider buying. The majority of our compensation comes in the form of restricted share units, and those accrue over time or vest over time. I don't sell those. Once they vest, I take them, I buy them at the exercise price and add to my position, as I did this year. I will continue to do so going forward. Rene from BMO.
Maybe I'll just ask a question with respect to your corporate development activity. You indicated that you're primarily focused on cash flow generating opportunities. Can you give us a flavor in terms of size, potential of opportunities that you're looking at? B, is this on the corporate level, or are these primarily either individual transactions or portfolios that are coming to market?
Great question there, Rene. I think the answer to that question is it's a wide range of types of transactions. It's certainly wide range in terms of size. I would say, you know, we have seen, as I mentioned in my dialogue, a significant wave of consolidation. I think that's probably gonna slow down a little given where share prices are. I think asset transactions would probably be where I say the majority of our focus is. When I say asset transactions, I'm talking about primary capital, so providing new capital to operating companies who are looking to either develop or expand operations. In some instances, we're also looking at cash flowing third party royalties.
You know, that would be kind of my assessment of the type of transactions. Size ranges from very small, you know, $1 million, $1.5 million , all the way up to things that we would say would be transformational, you know, if we could conclude those transactions at the right type of valuation, with the right type of funding structure.
Any other questions in the room or online? I think, Joanne, you'll take us out.
Yeah, there's just one more question online which I think would be really, interesting for everyone, and that is, are you looking at other royalties besides just gold and silver? I know you do have some copper, in the portfolio, but maybe you can talk a little bit more about that.
Yeah, I'll start and then Joanne can interject. We have a large copper gold porphyry in Whistler in our portfolio. I'm a huge bull on copper. Spent half of my career in the copper business and built a couple copper mines over that point, and I love the dynamics of it. It would generally be in a polymetallic setting. A gold-bearing VMS, and I built my career on a couple of those as well, LaRonde and Lalor, namely, polymetallic copper gold porphyry. Those types of settings make a lot of sense. Where there's an entry through the precious metals, but allows us to diversify a little bit into some of the LME traded metals, in particular copper, where we remain bullish.
I'd say that we'd never see our precious metal content really fall much below 70%-80%. Again, it's in those types of settings, polymetallic settings. Those have two advantages. One is they tend to be longer life. Also because of the byproduct credits, they tend to be naturally low cost structures as well. It's good to be in those types of high quality assets if we can find them. They are like hen's teeth, to be honest with you.
Okay. Thank you very much, David. Thank you to everyone who joined us here today. Thank you to our online audience. You were absolutely fantastic. Thanks to the VID team. They did a great job on getting all our tech details down. We'll see you on the next Investor Day or the next town hall meeting. Thank you very much.