OR Royalties Inc. Q3 FY2024 earnings call

• Osisko had a solid first three quarters with gold equivalent ounces earned, cash margin, and cash flows. Achieved Q3 gold equivalent ounces to be on track for full year 2024 guidance of 77,000-83,000 gold equivalent ounces.
• Acquired a 1.8% gross revenue royalty on Spartan Resources Dalgaranga Gold project in Western Australia, expected to close in Q4.
• Cash margin was 96.3% in Q3 and 97% year-to-date, highlighting the company's strong margin.
• Mine performances: Canadian Malartic had a solid quarter with expected strong end to 2024; Capstone Copper's Mantos Blancos had lower production in Q3 but plant upgrades complete with expected silver deliveries from early 2025.
• Balance sheet improved with net debt reduced, and continued to pay down revolving credit facility. Declared and paid Q3 dividend of $0.065 per share, with Q4 dividend approved.
• Namdini mine and mill expected to be commissioned with potential first gold poured by end of 2024, expected to be a growth driver in 2025.

In Q3 2024, Osisko earned 18,408 gold equivalent ounces. Quarterly revenues were $57.3 million. Cash margin was 96.3% for the quarter and 97% year-to-date. Revenue contribution: over 65% from gold, just over 26% from silver, and new copper contribution from CSA copper stream. The company ended Q3 with $58.5 million in cash and net debt reduced to just over $20 million.

• Osisko is on track to meet 2024 gold equivalent ounce delivery guidance of 77-83,000 ounces.
• Dalgaranga is expected to contribute well over 2,500 gold equivalent ounces annually to Osisko over the life of mine.
• Namdini is expected to be a key year-over-year growth driver for Osisko in 2025 with a 15-year life of mine.

• Currency risk: Potential impact of exchange rate fluctuations, though management may consider hedging as a risk management exercise.
• Transaction approval risk: Dalgaranga transaction subject to approval by Australian's Foreign Investment Review Board.
• Mine operation risks: Unplanned downtime or issues at producing assets like Capstone Copper's Mantos Blancos affecting production.

Q: Ralph Profiti asked about Dalgaranga production profile, near-term profile, and inclusion in next guidance update.

A: Jason Attew mentioned feasibility studies for Dalgaranga not developed yet, but Dalgaranga will be included in the five-year outlook in February. Guy Desharnais added on grade potential and mill capacity.

Q: Ralph Profiti also asked about Namdini first revenue.

A: Jason Attew expected first revenues from Namdini in Q1 2025 if first gold is poured by end of 2024.

Q: Kerry Smith asked about Plan B for Dalgaranga payment and currency hedging.

A: Jason Attew said $50 million payment for Dalgaranga will come from revolver facility, and currency hedging may be considered as a risk management exercise.

Q: Tanya Jakusconek asked about transaction environment.

A: Jason Attew said opportunity set is robust, sweet spot between $50M to $500M, focus on asset quality, and transactions can be bespoke. Also mentioned seeing opportunities in cash flow development and development phases.