Why Gold Royalty (GROY) Shares Are Falling

Gold Royalty Corp GROY shares are trading lower by 13.8% to $1.65 during Tuesday’s session after the company announced that it entered into a binding agreement to acquire a copper stream on the Vares Silver Project. The company entered into an agreement with National Bank Financial and BMO Capital Markets for a $300 million bought deal financing.

Gold Royalty says the Vares project, with an 18-year mine life, offers expansion and exploration potential. Gold Royalty anticipates increased cash flow and benefits from high copper prices. CEO David Garofalo emphasized the acquisition’s potential to enhance revenue and cash flow while strengthening their partnership with Orion.

This stream covers 100% of copper production from the Rupice deposit. First concentrate production began in February 2024, with commercial production expected by the fourth quarter of 2024.

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Should I Sell My GROY Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Gold Royalty GROY have gained 1.05% year to date. This compares to the average annual return of -26.64%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Gold Royalty stock currently has an RSI of 56.16, indicating neutral conditions.

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GROY has a 52-week high of $2.21 and a 52-week low of $1.18.