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    Gold Royalty’s $70M BHP Brazil mine deal: cash-flow and grade lens for engineers

    December 8, 2025|

    Reviewed by Tom Sullivan

    Gold Royalty’s $70M BHP Brazil mine deal: cash-flow and grade lens for engineers

    First reported on MINING.com

    30 Second Briefing

    Gold Royalty has agreed to buy BlackRock World Mining Trust’s royalty over BHP’s Pedra Branca copper-gold mine in Pará, Brazil, for $70 million cash, adding a 25% net smelter return on gold and 2% NSR on copper and other products across the Pedra Branca East and West deposits. The royalty generated about $7.9 million over the 12 months to 30 June, equivalent to roughly 2,800 gold-equivalent ounces at an average gold price of $2,811/oz, from ore grading 1.41–1.68% copper and 0.40–0.47 g/t gold. Gold Royalty will fully fund the deal via a $70 million bought equity financing of 17.5 million shares at $4.00, taking its portfolio to eight cash-flowing assets and over 250 royalty and streaming interests.

    Technical Brief

    • Pedra Branca forms part of the Carajás East copper operation in Água Azul do Norte, Pará, Brazil.
    • OZ Minerals commissioned the Pedra Branca East underground mine in 2020 and achieved full production by 2022.
    • BHP acquired Pedra Branca via its 2023 takeover of OZ Minerals and has since extended mine life.
    • June 2025 reporting states 2.4 Mt measured at 1.68% Cu and 0.47 g/t Au.
    • Indicated resources add 12 Mt at 1.41% Cu and 0.40 g/t Au, supporting sustained mill feed.
    • Equity financing for the royalty purchase involves 17.5 million new GROY shares at $4.00 per share.

    Our Take

    With Pedra Branca’s measured and indicated copper grades of around 1.4–1.7% Cu, this BHP-operated asset sits at the higher-grade end of the copper stories in our mining database, which typically feature sub‑1% Cu for new Latin American developments.

    The $7.9 million royalty expense over 12 months versus a $70 million purchase price implies Gold Royalty is paying a relatively short multiple of recent cash flow, signalling confidence in both mine life extension at Pedra Branca and further resource conversion in the Carajás district.

    Adding a copper‑gold royalty in Pará gives Gold Royalty exposure to a region that appears less frequently in our 196‑story mining corpus than Andean copper belts, suggesting the company is deliberately diversifying jurisdictional risk away from more heavily scrutinised permitting environments.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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