OR — OR Royalties Inc.

Summary of OR Royalties Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Gold Equivalent Ounces (GEOs) Earned: 20,326 GEOs, a 3% increase from Q2 2025.
• Revenue: $71.6 million, up 71% year-over-year, marking a quarterly record.
• Net Earnings: $0.44 per basic share, significantly improved from the previous year.
• Cash Flow per Share: $0.34, compared to $0.19 in Q3 2024.
• Cash Margin: Approximately 97%, consistent with budget.
• Cash Position: $57 million at quarter-end, with a debt-free status for the first time in over a decade.
• Non-Cash Gain: $54 million from the revaluation of the Osisko Development investment due to a change in accounting treatment.

2. Strategic Updates and Business Highlights

• GEO Guidance: On track to meet 2025 guidance of 80,000 to 88,000 GEOs, with expectations for Q4 to be the strongest quarter.
• Mantos Blancos: Improved silver grades expected to support solid Q4 performance.
• New Assets: Anticipation of production from the Dalgaranga mine in early 2026, projected to produce 275,000 ounces of gold in 2030.
• Corporate Development: Active pipeline of potential transactions, emphasizing disciplined capital allocation.
• Dividend: Declared and paid a quarterly dividend of $0.055 per share, marking the 44th consecutive dividend.

3. Forward Guidance and Outlook

• 2026 Expectations: Likely to mirror 2025 performance, with growth driven by Mantos Blancos and Namdini mines.
• Long-Term Growth: Targeting 120,000 to 125,000 GEOs by 2029, with a focus on maintaining high-quality asset acquisitions.
• Investor Day: Scheduled for November 12, 2025, to provide further insights into growth strategies and asset performance.

4. Bad News, Challenges, or Points of Concern

• Commodity Price Ratios: Tracking 2,000 to 2,100 GEOs lower than budget due to higher-than-expected gold prices affecting delivery ratios.
• Market Conditions: Difficulty in finding transactions that meet internal return thresholds due to current market dynamics.
• Operational Risks: Potential maintenance shutdown at Canadian Malartic could impact Q4 performance.
• Investment Discipline: Emphasis on maintaining a disciplined approach may delay potential acquisitions.

5. Notable Q&A Insights

• Canadian Malartic Outlook: No surprises expected in near-term production; Agnico Eagle's conservative approach to resource modeling is noted.
• Eagle Mine Negotiations: OR Royalties is involved as a stakeholder but cannot disclose specifics due to ongoing negotiations.
• Transaction Opportunities: A wide range of potential deals exists, but the company remains focused on high-quality, high-return opportunities.
• Internal Rate of Return: Discussions around transaction metrics indicate a focus on a spread above the company's cost of capital, which is approximately 4.5%.

This summary encapsulates the key points from OR Royalties' Q3 2025 earnings call, highlighting financial performance, strategic initiatives, future outlook, and areas of concern.