OR — OR Royalties Inc.

OR Royalties Q2 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• GEOs Earned: 19,700 gold equivalent ounces (GEOs) in Q2 2025, slightly above the first quarter, on track to meet full-year guidance of 80,000 to 88,000 GEOs.
• Revenues: $60.4 million, an increase from the previous year, driven by higher commodity prices.
• Net Earnings: $0.17 per share, a significant improvement from a loss in the same quarter last year due to the Eagle Mine's operational issues.
• Cash Flow: Cash flow per share increased to $0.27 from $0.21 year-over-year.
• Cash Position: Ended Q2 with $49.6 million in cash and a net cash position for the first time in years, with total debt of just under $36 million.

2. Strategic Updates and Business Highlights

• Acquisition: Completed a $13 million acquisition of a 100% silver stream on Orla Mining's South Railroad project, with positive expectations for its feasibility study in H2 2025.
• Dividends: Declared a quarterly dividend of $0.055 per share, marking the 43rd consecutive dividend payment.
• Mine Performance: Strong performance from Canadian Malartic, with expectations for continued improvement. Mantos Blancos production remained flat due to lower silver grades, but throughput was steady.
• New Contributions: Received first royalty payments from Namdini in Ghana and Talisker Resources' Bralorne mine, indicating growth in revenue sources.

3. Forward Guidance and Outlook

• Second Half Expectations: Anticipated stronger performance in H2 2025, expecting to achieve the 55% GEO contribution from the second half as planned.
• Production Drivers: Key contributors will be Canadian Malartic, Mantos Blancos (with expected silver grade improvements), and ramp-up at Tocantinzinho and Namdini.
• 5-Year Outlook: New guidance expected in February 2026, with potential inclusion of assets like Cariboo and Spring Valley, contingent on permitting and financing.

4. Challenges and Points of Concern

• Eagle Mine Sale: The Eagle Mine is up for sale following operational failures and a court-approved process, which introduces uncertainty regarding future contributions from this asset.
• Silver Grades: Lower-than-expected silver grades at Mantos Blancos have been a disappointment, impacting GEOs earned.
• Competitive Market: The corporate development team is stretched due to competitive pressures in the market for royalty acquisitions, with a focus on maintaining disciplined capital allocation.

5. Notable Q&A Insights

• Incremental GEO Sales: Management confirmed that Canadian Malartic and Namdini are expected to drive incremental GEO sales in the second half, with an emphasis on improving silver grades at Mantos Blancos.
• Transaction Preferences: The company prefers accretive deals on producing assets but is also considering high-quality development assets that can contribute within the next five years.
• Liquidity and Future Acquisitions: With approximately $900 million in available liquidity, OR Royalties remains open to larger transactions, including corporate deals, if they meet economic return criteria.
• Osisko Development Stake: Management expressed satisfaction with a reduced stake of 14.3% in Osisko Development, viewing it as a strong investment due to the quality of the Cariboo asset.

This summary encapsulates the key points from the earnings call, providing a balanced view of OR Royalties' current financial health, strategic direction, and potential challenges ahead.