OR — OR Royalties Inc.

Summary of OR Royalties Q4 and Year 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 2025 Performance: OR Royalties earned 21,735 gold equivalent ounces (GEOs) in Q4, ending the year with a total of 80,775 GEOs, aligning with annual guidance of 80,000 to 88,000 GEOs.
• Record Financials: The company reported record annual revenues of $277.4 million, operating cash flow of $246 million, and earnings of $1.10 per share, with cash margins near 97%.
• Cash Position: OR Royalties ended 2025 with $142.1 million in cash and was completely debt-free after paying off its credit facility in Q3 2025.
• Dividends: The company declared a quarterly dividend of $0.05, marking its 45th consecutive dividend, and announced an increase to $0.055 per share for Q1 2026.

2. Strategic Updates and Business Highlights

• Capital Discipline: OR Royalties focused on disciplined capital allocation, completing only $25 million in royalty and stream acquisitions in 2025, in contrast to over $9.3 billion across the sector.
• New Acquisitions: The company acquired a 1.5% NSR royalty at Buenaventura San Gabriel mine and a royalty portfolio from Gold Fields, enhancing its asset base.
• Production Growth: The company has 22 producing assets, with expectations for significant contributions from new acquisitions and existing assets like Canadian Malartic and Island Gold.
• Operational Highlights: Agnico Eagle's Canadian Malartic Complex and Alamos Gold's Island Gold are expected to drive future growth, with production guidance for 2026 and beyond being optimistic.

3. Forward Guidance and Outlook

• 2026 Guidance: OR Royalties expects GEOs to range between 80,000 and 90,000, with an average cash margin of approximately 97%. The guidance reflects ramp-ups at Dalgaranga and San Gabriel, as well as contributions from the newly acquired Namdini asset.
• 5-Year Growth Outlook: The company anticipates 50% growth in GEOs by 2030, supported by expansions and new projects, with no contingent capital required for this growth.

4. Bad News, Challenges, or Points of Concern

• Market Volatility: The company noted potential variability in silver grades at Mantos Blancos, which could impact GEOs earned in 2026.
• Ownership Transition Risks: The ongoing ownership transition at CSA could pose challenges for production consistency, with expectations for updated guidance from Harmony in the near future.
• Flat Production Expectations: Some analysts expressed concerns about flat production expectations from certain assets, including Mantos, which may limit growth potential.

5. Notable Q&A Insights

• Guidance Clarification: Management clarified that the 2026 guidance is based on consensus pricing ratios, with potential upside if silver prices remain favorable.
• M&A Opportunities: The company is actively exploring both familiar and new assets for potential acquisitions, with a focus on maintaining a strong geographic presence in Canada, the U.S., and Australia.
• Future Production from Key Assets: Analysts inquired about the 2030 guidance, and management indicated that it includes minimum payments from Cascabel and highlighted the potential for additional GEOs from various projects.

Overall, OR Royalties demonstrated strong financial performance in 2025, with a disciplined approach to capital allocation and an optimistic outlook for future growth, despite some challenges related to market volatility and asset transitions.