Gold Royalty (GROY) Acquires $45M Net Smelter Royalty on Borborema Gold Mine
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Source: seekingalpha
- Acquisition Announcement: Gold Royalty (GROY) has agreed to acquire a net smelter royalty on the Borborema gold mine from Dundee Corp. (DDEJF) for $45 million, consisting of $30 million in cash and over 3.57 million newly issued common shares, indicating the company's strategic focus on gold mining assets.
- Royalty Details: The acquired royalty applies to the Borborema project operated by Aura Minerals (AUGO), with a royalty rate of 1.5% on the first 1.5 million ounces of payable gold production, decreasing to 1.0% until 2 million ounces are produced, thus securing future revenue streams for the company.
- Existing Royalty: Gold Royalty already holds a 2.0% net smelter return royalty on the Borborema mine, which steps down to 0.5% after 725,000 ounces of payable gold production, and is subject to operator buyback rights after 2.25 million ounces are produced or by 2050, adding a layer of investment uncertainty.
- Production Capacity: Aura Minerals achieved commercial production at the mine in September, currently operating at 80% of design capacity and processing 4,500 metric tons per day, showcasing the project's production potential and market outlook.
Analyst Views on AUGO
Wall Street analysts forecast AUGO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AUGO is 50.40 USD with a low forecast of 48.00 USD and a high forecast of 52.80 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 68.300
Low
48.00
Averages
50.40
High
52.80
Current: 68.300
Low
48.00
Averages
50.40
High
52.80
About AUGO
Aura Minerals Inc. is a mid-tier gold and copper production company. It is focused on the development and operation of gold and base metal projects in the Americas. Its five operating assets include the Minosa gold mine in Honduras; the Almas, Apoena, and Borborema gold mines in Brazil; and the Aranzazu copper, gold, and silver mine in Mexico. It also owns Era Dorada, a gold project in Guatemala; Tolda Fria, a gold project in Colombia; and three projects in Brazil: Matupa, which is under development; Sao Francisco, which is in care and maintenance; and the Carajas copper project in the Carajas region, in the exploration phase. The Aranzazu Mine is an underground copper mine that is located within the Municipality of Concepcion Del Oro in the State of Zacatecas, Mexico. Almas is an open-pit mining operation with ore processing through the CIL system, located in the Almas Greenstone Belt. It also owns Mineracao Serra Grande gold mine located in Crixas, in the state of Goias, Brazil.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
