OR — OR Royalties Inc.

Summary of OR Royalties Q4 and Year 2025 Earnings Call

1. Key Financial Results and Metrics

• Fourth Quarter Performance: OR Royalties earned 21,735 gold equivalent ounces (GEOs) in Q4 2025.
• Full Year Results: Total GEOs for 2025 reached 80,775, aligning with guidance of 80,000 to 88,000 GEOs.
• Record Revenues: Annual revenues hit $277.4 million, with operating cash flow at $246 million.
• Earnings: Record earnings of $1.10 per share, with adjusted earnings at $0.88 per share.
• Cash Position: Ended 2025 with $142.1 million in cash and was completely debt-free after paying off its credit facility in Q3 2025.
• Dividends: Declared a quarterly dividend of $0.05, marking the 45th consecutive dividend, with plans to increase it to $0.055 in April 2026.

2. Strategic Updates and Business Highlights

• Acquisitions: Completed two significant transactions: acquiring a 1.5% NSR royalty at Buenaventura San Gabriel mine and a royalty portfolio from Gold Fields.
• Production Assets: Increased the number of producing assets to 23, with expectations for further growth from new acquisitions.
• Strong Cash Margins: Maintained cash margins of nearly 97%, emphasizing disciplined capital allocation and a focus on high-quality assets.
• Operational Highlights: Positive developments at key assets like the Canadian Malartic Complex and Island Gold District, with expectations for increased production.

3. Forward Guidance and Outlook

• 2026 Guidance: Anticipates GEOs to range between 80,000 and 90,000, with expectations of marginal growth over 2025.
• Long-Term Growth: Projecting 50% growth in GEOs over the next five years, driven by expansions at existing assets and new projects coming online.
• Commodity Price Assumptions: Guidance reflects consensus commodity price ratios, with a focus on maintaining transparency regarding how these affect GEOs.

4. Bad News, Challenges, or Points of Concern

• Production Variability: Noted variability in silver grades at Mantos Blancos, which could impact revenue stability.
• Ownership Transition Risks: Challenges at CSA due to Harmony's ownership transition may affect production timelines.
• Flat Production Expectations: Some assets, like Mantos, are expected to remain flat in production, which could limit growth potential in the near term.

5. Notable Q&A Insights

• Quarterly Performance: Analysts inquired about quarter-over-quarter performance, with management indicating a consistent approach based on historical trends.
• M&A Opportunities: Management confirmed ongoing evaluation of both familiar and new assets for potential acquisitions, emphasizing a disciplined approach to capital deployment.
• 2030 Guidance Clarification: Questions regarding the 2030 GEO guidance revealed that it includes minimum payments from certain projects and highlighted potential upside from additional assets not included in the current outlook.

This summary encapsulates the key points from the earnings call, providing a balanced view of OR Royalties' performance and strategic direction while addressing potential challenges and market dynamics.