OR Royalties Inc. Q2 FY2025 earnings call

Key Points

• Earned 19,700 GEOs in Q2, on track for full-year guidance. First half was ~45% of midpoint of 2025 GEO guidance range. Higher gold prices led to record cash flows. Cash margin was robust but slightly dipped from Q1. Ended Q2 with $49.6 million in cash and in a net cash position.
• Acquired 100% silver stream on Orla Mining's South Railroad project for $13 million. Declared and paid quarterly dividend of $0.055 per share, 43rd consecutive dividend.
• GEOs earned in Q2 predominantly from Canada, over 93% from precious metals. Canadian Malartic had a strong quarter, Mantos Blancos production flat year-over-year due to lower silver grades but throughput stable, Tocantinzinho ramp-up ongoing, Namdini received first payment. Portfolio has 22 producing assets.
• Progress on optionality assets: Solidus Resources Spring Valley project shovel-ready, Osisko Development's Cariboo project secured financing, Eagle mine up for sale.

In Q2 2025, OR Royalties had quarterly revenues of $60.4 million. Net earnings were $0.17 per basic common share. Cash flow per share was $0.27, and quarterly adjusted earnings were $0.18 per common share. The company earned 19,700 GEOs in Q2, on track for the full-year 2025 GEO delivery guidance of 80,000 to 88,000 gold equivalent ounces. Over 93% of gold equivalent ounces were from precious metals, with copper contributing modestly.

Forward-Looking Statements

• Full-year 2025 GEO delivery guidance is 80,000 to 88,000 gold equivalent ounces, with expectation of stronger second half.
• Canadian Malartic expected to perform at or better than budget. Mantos Blancos silver grades expected to trend up. Continued ramp-up at Tocantinzinho and Namdini in second half.

Risks Discussed

• Eagle mine sale process with timing around October 15. Potential issues with silver grades at Mantos Blancos not meeting expectations initially.

Q: Can you provide more color on the second half of this year and where incremental GEO sales are coming from?

A: Most pickup in second half will come from Canadian Malartic continuing to perform as expected, Mantos Blancos silver grades trending up, continued ramp-up at Tocantinzinho, and Namdini ramping up.

Q: Philosophically, preference for producing versus development stage royalties?

A: First preference is accretive deals on producing assets, but current market transactions don't always meet economic hurdles. Corporate development team focused on high-quality development assets that will contribute GEOs within 5 years.

Q: Criteria for new 5-year guidance, and what could get included?

A: Criteria include good confidence in GEO contribution over 5 years, permits, financing, social license, and track record of partnering companies. Likely to include Cariboo in 5-year outlook, Spring Valley and others depend on permitting and financing.

Q: Transaction size range and inclusion of corporate transactions?

A: Transaction size ranges from ~$35 million to close to $1 billion, includes corporate transactions.

Q: Update on Elliott's holdings?

A: Last public disclosure is Elliott owns 2.2 million OR Royalties shares, no further updates provided.