Osisko Gold Royalties Ltd Q1 2023 Earnings Call
Speaker 2: a Cisco Gold Royalties Q1 2023 results conference call. After the presentation, we will conduct a question and answer session. If you would like to ask a question, please press star followed by the number 1 on your telephone keypad. Please note that this call is being recorded today, May 11.
Speaker 2: 2023 at 10 a.m eastern time.
Speaker 2: today is the 20th of May at the SARS-R the last. We are on the call today, Mr. Sandeep Singh, President and Chief of the direction and Mr. Frédéric Ruel, Chief of the direction Financier and Vice President Finance. I will now hand over the floor to Mr. Singh.
Speaker 3: Good morning everybody. Thanks for being with us. Myself and Frederuela, as you just heard, that are going to be walking you through the quarter. An excellent start to the year for us. So, I'm happy to be giving you that update.
Speaker 3: The presentation is available on the website as well as through the webcast as of this quarter. So, hopefully you have that in front of you and we'll be referring to page numbers as we go through things. Starting perhaps with slide three.
Speaker 3: As I said, an excellent start to the year on the left hand side there, all those high level metrics had already been released and as again, Fred will walk you to some of the more specifics in a 2nd over the quarter. We.
Hit the button on another increase after a small hiatus where we were more active on the buyback. So that's positive as well. Very happy to add, forgive me, nominate Norman McDonald to our board of directors, phenomenal individual, phenomenal resource investor in the space for 25 plus years, who many of you would have known through his prior work, whether at Invesco or Teachers or Butyl Goodman, among other places. So a phenomenal addition when he joins in due course after the AGM.
and look forward to having him on the team, but also want to thank Charlie Page, who is reaching the tail end of his tenure based on our policies and decided not to stand for elections. He's been a great steward for the company since the creation of the Cisco royalties and the tail end of the Cisco One Days.
So thank him for his contributions and look forward to adding Norm to the team Norm would make.
The 7th new board member in the last circa 3 and a half years as part of our board renewal process and again, strong addition to the team. So with that, I'll pass it on to Fred for the first section to walk you through the quarter and then I'll pick back up.
A little bit later on, so Fred over to you, please.
Thank you Sandeep. Good morning, thank you for joining us today. I'll be brief. The numbers speak by themselves. Let's start with some highlights on slide 3 of the presentation.
Slightly above 23,000 GOs in Q1 2023, an increase of 27% over the first quarter of 2022. Revenues of 59.6 million compared to 50.7 million in Q1 of last year, which translated into cash flows from operations of 45 million to 50.7 million in Q1 of last year.
with a cash balance of $119 million compared to $91 million on December of last year.
On slide four, we present our Geos by ASAP and by Commodity. Gold represented 65% of our Geos in the first quarters, silver 22% and diamonds in other commodities, 13%.
On slide 5, we present the growth in our revenues and our operating cash flows, mostly as a result of increased deliveries under our Royalty and Stream agreements.
On slide 6 net earnings were 20.8 million 11 cents per share compared to 16.8 million or 10 cents per share last year. Adjusted earnings were 32.6 million or 18 cents per share compared to 24.8 million or 15 cents per share in 2012.
to 42 million compared to 36 million in 2022.
On slide 8, we have a breakdown of our cash margin. The cash margin from our royalties reached $39 million. The cash margin from our streams amounted to $16.5 million.
For a total in Q1 of 55.5 million compared to 47.5 million last year.
And on slide 9, we have a summary of our balance sheet position, our cash balance to that $119 million. We held equity investments valued at $494 million. The revolving crib facility was drawn by $124 million.
for a net-depth position of 15 million at the end of Q1, compared to 57 million at the beginning of this quarter.
Our available credit under the revolving grid facility was approximately $616 million, including the accordium.
And finally, as a result of our strong margins and cash flows, we increase our quality dividend by 9% to $0.06 per share starting this quarter. I will now turn the call back to Sandy for a company review of our assets and the near-term catalyst.
Thanks very much, Fred. So, look, I will be brief, not going through all these slides. I realize today's a busy day for most people.
And some of these, some of these slides you're used to seeing from us, I will pick out a few things that happened during the quarter that I think are relevant to talk about and then make way for questions as soon as possible. In doing so, I'll skip past slides 11 and 12.
If you're following on the deck and pause on slide 13 for a second.
To talk about Canadian Malartic, so overall in the quarter, I would say a little bit lighter in terms of our deliveries from, sorry, from Malartic and Q1. Certainly made up by other assets overall that great quarter that Fred just walked you through.
I think some of that has to do with just the underground, the first, the first dopes in the underground being later in the quarter than expected. The first production blast at Odyssey South was in late March.
Ignico, our partner, is expecting 50,000 ounces of underground contribution this year. Other progress includes the shaft sinking, which has now commenced. So good progress there overall. And we expect good news over the course of the year. I would remind people that from a global perspective.
Throughput has been reduced down from circa 60,000 tons to 51, 51,500 tons per day by Ignaco intentionally to kind of optimize the transition. Now that the last truck of ore has come out of the Canadian Malartic Pit and mining has transitioned completely to the Barnet Pit and the underground.
We hope that that transition back to full run rate.
is in the near term. I think they last talked about it being 2024, early 2024. We'll see how that progresses, but overall still a phenomenal asset doing phenomenal things for us. That's on the day-to-day side.
More in terms of the future of the asset, you've heard us talk about it. You're hearing some of those same updates, which are phenomenally important for us in terms of filling the mail, growing the resource, looking at new mine plans. So, in terms of the rest of this year, it's amazing that we're already in May, but looking forward to that update.
A site visit by GECO that's being run, which many of you probably will be on in June . So looking for the exploration update and kind of broader update that accompanies that event and then later in the year, the new study, which will hopefully start to fill in some of the puzzle pieces with respect to
Excuse me, jumping to slide 15, touching on some of the other core assets, starting with MANTOS, a good quarter overall, I'd say at MANTOS we saw Capstone, our partners, talk about some preventative maintenance that they undertook in Q1 to increase reliability.
Over the quarter throughput average just over 16,000 tons a day versus just over 15,000 tons a day in Q4. Importantly, there was good signs of that progress in February where the average was 19,000 tons a day. So I think we're getting there. Our partner is getting there. And importantly, in our last discussions, and in their last public disclosure, they talked about
expectations to get to that steady state consistently in, you know, I'm quoting now in the very near future. So. Hopefully that that maintenance that was undertaken in Q1 sets them up for a strong, a strong three quarters ahead.
At EGLE, it was a good quarter, a good Q1, just shy of 38,000 ounces produced versus 24,000 ounces in the same period last year. This is the first quarter where they ramped up to stacking year round. I think they showed that they can do that successfully. That's a big step forward for the asset in terms of reaching steady state.
And with a good Q1 behind us, that bodes well at EGLE, that bodes well for the rest of the year. So kudos to the team there. And similarly at Elianor, a good Q1. 66,000 ounces produced there in Q1 versus 46 last year. And really, I think the
the upside of that is
Increase not focused, but increased success rate, I guess, in terms of recruiting and less absenteeism resulting in just higher mill throughput. I think that was an operation. A fly in and fly out operation that was significantly more challenged than perhaps others throughout the.
Covid period and the overall flux of people in the mining sector from an employment perspective. So good to see them get a handle on that and hopefully continue to drive forward. I will jump now to slide 18 to touch on a handful of the positive developments in the development portion of the portfolio.
or the new assets perspective as well, maybe starting with CSA. Good progress on that transaction closing over the course of the last couple months in particular. If you're following the metals acquisition story, they've now filed their F4 statement, which I believe is
extreme near term. So everything they're driving towards a successful outcome for them and obviously then for us. So we look forward to that that transaction taking shape here still over the course of Q2 is our expectation. excuse me at windfall
very successful transaction with the joint venture that was announced with Goldfields. A huge endorsement of the project by a senior company. Significant de-risking of what is a very important asset in our development portfolio.
And we've said, I've said for a long time that windfall is an asset that matters in the sector. There has at times have been doubters or question marks about that, but the size, the grade, the upside in Canada, as I said, all that matters. And so it's good to see others see things the same way and good to see fully financed.
asset in our portfolio moving forward.
I think as well the combination of skill sets there, build, operate, explore, permit both well, given that they're still very under explored.
Camp, and it was positive to see Goldfield seeing it the same way talking about a lot of upside.
On the immediate deposit, but also on strike in a depth, but also on the broader land package. So, overall a win, win, win, and we look forward to seeing that partnership develop and hopefully intensify their work there on the asset.
Maybe next touching on her most a little bit, we're still driving towards an FID point. This year on Taylor, her most is made up of Taylor and Clark. But worth noting that her most was added to the fast 41 list by the Department of energy.
F.A.F. stands for Fixing America's Surface Transportation Act. So essentially an expedited review. Worth noting that Taylor is largely permitted. It has Water use permits, aquifer protection permits, it needs other minor permits along the way.
It's largely advanced in that process, but what we see there as a positive is obviously in relation to things like Clark, which is the battery grade manganese separate.
portion of the deposit, but also in time, I think just the expedited review potential for all of Hermosa in time, I think leads to a better pathway forward to the forest service ground, which is another layer of upside there on the broader land package. So all that.
Is good news and as I said, the biggest, the biggest catalyst point there would be the FID point. But a significant amount of investment being made by South 32 there. Even prior to that this year.
Maybe jumping to slide 19 to touch on casino a little bit. If you hadn't been following that story in early April , Western Copper and Gold announced a circa $20 million investment by Mitsubishi Materials for about 5% of the company. We intend to maintain their pro rata.
With a small top up to keep them at 8%. So, good news there in terms of the broader collective that is supporting that asset and that company. This is a very good copper gold porphyry that can be built and in my opinion should and will be built. These investments don't kick that box fully in terms of shoveling the ground or anything.
close, but certainly very promising to see that collective forming around Western Copper hopefully in time a coalition of the willing. So that's an important asset for us that's moving forward in the background.
I guess with that, I will just highlight slide 21, which you've seen versions of in the past. We've updated this slide more recently, so I'm not sure everyone's seen the updated version to take into account another 1.1Mm of drilling in 2022.
So, 6th year in a row, if you squint and round, we've been on average over a 1Mm or out a 1Mm, depending on how you want to look at it. And obviously I touched on some of the highlights that are coming out of that work, but there are many, many others. And if you look at slide 21, you see a story of.
You know, a year ago it was significant additions to the resource base. This year it was significant movement in the quality of those resources with a lot of ounces moving from M&I to a significant P&P increase. So we'll continue to see that ebb and flow.
but just a lot of good work being done by our partners that we are and our shoulders are benefiting from. And then on slide 22, just to recap of where we're trading, we've had a good start to the year. It's not one we're satisfied with but we've had a good start to the year. We've outperformed.
But really, we're still just making up ground in our minds. Importantly, the underlying nav keeps growing based on our partners' efforts, which I just highlighted as our asset base continues to improve. And our assets are hugely important to most, if not many, or all of our partners who have been advancing them. So that's the end of what I want to touch on at least for my
But operator over to you to see if there are any questions on the line, but Michael.
Thank you sir. Ladies and gentlemen, if you would like to ask a question, please press star followed by 1 on your touch tone phone. You will then hear a three tone prompt acknowledging your request. And if you would like to withdraw from the question queue, please press star followed by 2. And if using a speakerphone, we do ask that you please lift your hands up before pressing any keys.
Please go ahead and press star 1 now if you do have any questions.
And your first question will be from Ralph Profiti at 8th Capital. Please go ahead..
Thanks operator, thanks for taking my questions Sandy. Just firstly on the you know the MD&A disclosure about stronger GEOs through the rest of the year and I just want to kind of see if I have it right that the combination of CSA plus Mentos Blancos plus Malartic is kind of covering the bulk of where
you know we're trending in terms of the first half second half split if I have that right or if there are any other assets that you see that could you know sort of complement that stronger Chico as we get into year-end? No look I think that's largely correct I would include Eagle in that mix even though they had a good quarter and seasonally it wasn't.
You know, it's still going to have a stronger rest of the year. We believe and if you look at things like CB, that was 1 that that had a tougher key 1. They had some equipment issues that have been resolved. So we expect to see some progress there, but overall, I think the crux of what you said is is accurate. Okay, great. Great. Thanks for that. And I wanted to come and maybe ask a question on the pipeline.
for opportunistic M&A, using royalties to fund M&A as a mechanism for the next few deals in the pipeline.
I think it's both. I think it's all of the above and others. Certainly a $2,000 gold price is nothing to whine about. So we're optimistic about the future but I think we're very comfortable with where the price is now. It does lead to exactly what you said which is go ahead decisions on assets.
So, you guys can funding for the right assets, maybe not all assets in this market, but the right assets. You've seen deals when falls an example of that.
development company M&A transactions haven't been in vogue for a while as people have focused on production. But I think in a world of finite assets, we're seeing that start to change as well. So, yeah, no, I think that does bode well. I think the other thing I would add.
is just generally, you know, whilst you're right, I still think even at $2,000 gold in the mining sector and in the entire economy, I think we're seeing a tighter crunch on credit and access to credit, access to debt, both access to and cost of.
And that's pushing people back towards us in our business as well. So we're kind of a sweet spot here where not only are commodity prices very attractive, but there's still just not that much capital, both equity and debt, to fund what the sector needs. And that's what historically the world's in streaming sector has.
Yeah, hi, how are you? I have two questions if I may. The first one, a broader question. I think I heard 67% of your revenue from gold. Are you comfortable with that kind of mix or how low would you be comfortable with gold going?
That's the first question and then the second question I just wanted to clarify something if I may. Your role to your Melartic, is it actually on Melartic the ground or does it cover other throughput from the mill?
Okay, hi, Adrian. Yeah, happy to cover both those questions. Good question. So, with respect to the metals mix, yes, it was 65% for the quarter. That was roughly consistent. When you look at gold and silver, you add another 20, someone percent.
You know, that's that's the crux of our business. And that's not changing overall. If you look at us kind of on a new term basis, or or a longer term nav or longer term production basis, you kind of end up in the. Seventy twenty ten type of split, you know, seventy gold, twenty silver, ten percent other.
Right now that 10% others made up of diamonds.
But as we've talked about in the past, those are shorter life and less important to us and those will, as they fizzle out, they'll be replaced by 10%, 10% other that is made up primarily of base metals and copper. So that's the split we feel comfortable with. That's how we're made up right now and our focus will continue to be on those primary objectives.
With respect to Malartic, excuse me, and you can pick up some of this on slides 13 and 14.
We have both, I guess, so we have a royalty on Malartic that is 5% of the open pit. On slide 13 on the bottom left, you'll see what it translates to on the underground deposits.
bit, four and a half on the underground is a fair way to look at it right now. Outside of that we do have a royalty on the mill so we have those royalties I just described on everything that is malartic that was sold to Ignico and Amana eight years ago.
Anything else that goes through the mill that they're talking about, we would get a 40 cent per ton mill royalty on. And when there is 40,000 tons of free capacity in the mill, that's going to be important. That's useful, but importantly as well, or more importantly.
some of those sources of extra mil-feed that they're talking about printing through there include Upper Beaver, potentially other other resources like Upper Canada in...
In Ontario and on upper beaver, we do have a 2% royalty as well. So we would get the double dip on the male royalty and the 2%. So a lot of maybe a lot to unpack there. But the good news is on the aggregate 15M ounces. That have been delineated in the underground so far.
We would have an aggregate 4.5% royalty and we have other sources of catalyst that they put additional material through that mill. So hopefully that's clear. Adrian answers your question. Yeah, no, that's excellent. I honestly didn't realize you had the royalty on the surcharge on the mill throughput, so that's great.
Yeah, look, I mean, it was it was clear even to the team 9 years ago that that mill, 60,000 ton per day mill in the Abitibi is a valuable resource. It hasn't had a day of spare capacity or a ton of spare capacity in the last 10 years of mining the malartic mine.
But in time, it will and we, like, fully believe that it will become the center of gravity of the habit to be for anything that either is not viable on its own, or just would be made more viable if it didn't need a standalone mill. So, yeah, no, it's all good news. And as I said earlier, the updates that we're expecting and kind of expecting pretty soon now, the year does fly by.
in June and at the end of the year, I think will be good gates to go through in terms of how we make always thinking about that whole picture.
Okay, great. Thank you so much. My pleasure, Adrian. Thank you. Next question will be from Carrie Smith at Haywood Securities. Please go ahead.
Thanks, Operator. Sandy, do you think based on your analysis that you will be
funding that conference stream on the line with the middle school court or how are you sort of doing that today.
Yeah, look, I mean, my analysis is less important. Their analysis matters more. This is their right as a backstop. In all of our conversations, so with that caveat, I would say in all of our conversations, we see them valuing that copper stream.
Valuing the existence of it in their funding stack and we do see them taking some of it. Now that remains to be seen and it remains to be seen how much they take. But, yeah, I'm optimistic that we'll be able to fund a good chunk of that and either way. That determination will happen here in the very near term.
And do you think that when they decide that that would be on closing or do you think that would be a subsequent event? I guess it would be on closing probably would be your expectation. Yeah, so the gate they need to go through is their, their shoulder vote, which, as I said, they're going to be setting a date here for imminently.
and expect that date to be basically very early June , barring any kind of unforeseen circumstances. Once that vote happens, they'll know what their redemptions have been in the stack, they'll know what their pipe is by then, and then the gap, if there is one, will be made up of other sources.
long transaction. The team there at Mac, Mick Mcmullen and his team have done a phenomenal job of stick handling. It was a very complicated transaction given the size of it, the moving pieces, the copper price. Gif would be an understatement that was felt over the course of 2022, but it's really nice seeing this come out of that extended period at the right time for them, at the right time for us.
And, uh, and look forward to getting that done. Thanks. Thanks. Thanks. Thanks.
As a reminder, ladies and gentlemen, if you would like to ask a question, please press star followed by 1 on your telephone keypad.
And your next question will be from cosmos 2 at CIBC. Please go ahead Hi Sandeep Fred and team Maybe first off two questions on taxes It sounds like the global minimum tax actually happened maybe sometime in 2024
Have you went through an analysis in terms of what the potential impact could be for Osisko Gold royalties and anything that you can potentially share with us?
Sure, hi, Cosmos. I can start and do my best tax impersonation. And Fred, you can shout me down afterwards. But look, we have obviously been tracking that pile.
For the last, I mean, how long has it been 2 years, 18 months at least and. 1st, and foremost, as you would know, we have the least.
I mean we just have more royalties in streams so by fact we have the least amount of international stream exposure.
So, if it were to apply, it would have what feels like a pretty minimal impact to us, but more importantly, we do not meet the minimum threshold to be caught in that 15% global minimum tax. It's based on, one of the pillars is based on revenues of at least 750 million euros.
And whilst we hope to get there 1 day, we are not there yet. So it looks to us like it, it, it trips up some of our larger peers, but not us. If that changed, as I said, I revert back to the start of my comment. But right now there's been no discussions to change that threshold that pillar. So we don't see it impacting us the same way it would be impacting some of our peers.
as you rightly point out, looks like in 2024. Fred, did I miss anything important there? Nope, you're 100% correct on me.
Even with the potential silver stream from CSA and the copper stream potentially from CSA you would still fall under.
And even with the potential silver stream from CSA and the copper stream potentially from CSA, you would still fall under that number.
Yeah, look, what are we at Fred? 200 and some odd 220, 225 million. We would need to have quite a bit of success from a revenue generating potential to be at 750 million euro. So discount us but it might take us a little while to get there. I believe in you Sandeep, you'll get there.
And then my second question on taxes, I guess last night, you know, you recorded an expense
income tax expense of $8.4 million. But in terms of your adjusted earnings, you adjusted out $7.46 million, a big chunk of it. Could you maybe remind us of the rationale for that adjustment once again?
I think you do it every quarter. I just want to get a reminder. Sure Fred, I've exhausted my tax impersonation. If you want to pick that up. Essentially, cosmos has to do with deferred taxes. But why don't you go ahead Fred.
Okay, yeah, exactly. We adjust the adjusted earnings for different taxes right now. So these are not cash taxes We have approximately what? $900,000 of cash taxes paid in Q1 mostly on with holdings from foreign revenues So that's you're correct. That's an adjustment that was done in the past to
exclude the different taxes, which are not right now taxes payable, but more an accounting thing. Yeah, and that will continue to be the case for what looks like the rest of this year at least maybe by the tail end of this year, we might have some minimal taxes payable to bar new investments.
It kind of shows how strong the company is. My question is, if I work it out correctly, your share price has gone up this year as you mentioned. I still work it out to about 1% dividend yield. I forget, is there a number that you're trying to get to in terms of dividend yield or how do you look at increases, frequency of increases to dividends?
shows how strong the company is. My question is, if I work it out correctly, your share price has gone up this year as you mentioned, I still work it out to about 1% dividend yield. I forget, is there a number that you're trying to get to in terms of dividend yield or how do you look at the frequency of increases to dividend and whatnot?
Yeah, look, your math is about right. Maybe just a tick above that. We were due for an increase. We've got the cash flow. The cash flow is growing. Last year, we took more of that and bought back stock that was just ridiculously cheap. We might do that again. So we're always going to find the balance in terms of capital allocation between investing in new growth.
Raising dividends progressively and buying back our stock or just just building up a cash buffer to. To to invest, so we've got the strength to do any and all of that our balance sheet is pristine at the right time. Essentially almost 0 net debt. Or trivial amount of 15M.
Canadian. Yes, we do have to fund that CSA transaction, but plenty of room on our credit facility that we will use disproportionately for the foreseeable future. That and our cash flow to fund transactions. So yes, no, we feel pretty good about it.
you know, the payout ratio had we done nothing would have been, you know, amongst the lowest that we've had in our history really. And we didn't think that was fair. We want to continue to reward shareholders and their confidence in us and the dividend is one way to do that.
I saw that in your guidance for 2023 in terms of geos, you've included the CSA stream since or beginning retroactive to February 1st. Is that just part of the contract that you have in place? And then number two, when it does happen, am I going to see like a big...
like are we going to catch up February and also March so there's going to be a one quarter where it could be five months worth of GOs and revenue coming in is that is that how it works? Yes and yes so it is the silver stream has an effective date of February 1st so as long as the transaction closes which we're highly confident it will that that
Thank you.
As a reminder again ladies and gentlemen, if you would like to ask a question over the phone, please press star followed by one.
And at this time sir we have no other phone questions.
Okay, sorry, let me manage this. I think there are at least a couple questions on the webcast. I'm just keeping an eye on that. The first one.
And I have to read these out, I believe so bear with me. It's our 1st time doing this. Apparently, some people just don't like the art of an old fashioned phone call, but what are your. Stock repurchase plan, so I guess this kind of falls back into the last question. As well, as I said, we.
We've always tried to, we don't have a strict mechanism or formula or equation we follow. We do track all of our options at all times and we decide what the best use of our capital is when we're looking, staring at what our opportunities are in front of us. So, just because we increased our dividend.
this time around doesn't mean we won't come back to stock group purchases. We'll look at what the market gives us and look a lot of days even with our recent outperformance a lot of days the best answer is going to be to get more exposure to Malartic and Mantos and Eagle and Windfall and Casino and Hermosa and go down the list. So that's
that's just something we we track as a team and we try to make the best possible decisions with the information.
in front of us. So I believe that was the only question on the webcast, but if I'm lying someone please shout me down and I'm happy to be told otherwise.
Thank you, sir. We do have another question on the phone from John Tomaso at John Tomaso's very independent research. Please go ahead.
Good morning, Sandy. Good morning, John . How are you? Well, well, so...
Some of the different companies are having issues with cost creep. This morning we saw Seabridge filed I think for another $150 million royalty.
On top of the 225 they sold last year I guess.
On top of the 225 they sold last year, I guess it's costing them a little more for their project.
I was chatting with a Quebec exploration company the other day that shut down a camp in Quebec. The province requires every camp to have a nurse, and their nurse quit. They were making $225,000. Newmont paid them more at Elianore. It's getting kind of hard to figure out what costs of doing...
timing and uncertainty.
Yeah, look, John , I think there's an excellent question and there's a lot.
That is continuing to happen in the sector. It's, it's a. You know, if there's inflation in the world, I have always said that it's worse than mining because mining is. It's 2 things is people intensive and it's and it's energy intensive a little bit of relief on the energy side so far this year, but I don't see that those.
Those people issues are sticky ones both in terms of availability of people, technical talent and also what it takes to retain them. We see that in our portfolio, in our set of assets. Thankfully, our partners are doing a phenomenal job dealing with it. You touched on Eleanor. I think they had a good phase of dealing with it. So we're fortunate that our assets are maybe starting with our existing portfolio. We're fortunate that our assets are so important to our partners.
when you go down the list they genuinely matter. So we're seeing a lot of investment time and energy and money into those assets to resolve those issues. So they are issues but we trust our partners, they're some of the best in class and we trust their motivations because they're so important to them.
That they will resolve them obviously there's costs associated with that that they have to deal with, but the assets are good enough that they can, they can withstand it as we look out. From here, I'd say a couple of things to your question. 1 is all that does to me is as a person of trust to simplify things is it justifies elevated commodity prices for some time.
That's good for us and our existing portfolio in terms of pushing forward assets. Our partners as well have always shown an ability to raise capital better than I'd say the aggregate Market and so our assets are being fed with the money they need to move forward. It's not always a straight line and it's not always as quickly as you'd like. But I think if you look at our portfolio, it's better set up that way than most.
been pretty steadfast in the last few years that.
Yes, we will take on and you've seen us take on some later stage assets when the returns and the asset quality is high. There's good assets. There's good room in our portfolio for an asset at any stage, but our larger dollars would be kept for either production or near term or line of sight.
to production so they hope you're on the other side of that you never always on the other side of that mechanism but that dynamic but without the I guess the
The first level answer to your question, John . I apologize, Sandy, if I'm repetitive. I had a long-winded CEO call me, and I couldn't hang up, and I missed the first part of your call. Could you give an update on the AMOSAR project?
Armenia, where I think you retain a 40% ownership stake in addition to the stream. And is it too much for the shareholders to hope that you get paid something for that 40% in the stock of the new owner or incremental royalty or cash or how do you think that's going to settle out?
It's not ground we covered. John's so happy to now we didn't get into it. With respect to a mall saw, I would say, as I've said before, we work diligently behind the scenes to find the last piece that is missing in the last two plus years.
There's been unfettered access to the site. We've seen the Eurasian Development Bank step in with a big check. We've seen the blessing of the government. We've seen all the things that we need to get re-excited about that asset, which is important to us. Save the last piece, which is an operator in the last of the funding, to take a project that's circus 70% built.
complete it and end up with a plus 200, you know, somewhere between the 200 and 250,000 out to your mind on the other side. So we work on that path. It's, you know, obviously $2,000 gold and all of the other positive developments that I mentioned are helping that.
Until it's done, it's not done, but we continue to work on it. And it's an important to the risking event. One of those things that used to say it's a light twist that's off that we are very intense on turning back on. With respect to your specific question about the equity, our primary objective is to evolve that way. The one doing to the underestonian that you are going through had kept saying you are doing ribbon removal for extended dayivity to ???ther
to see that stream reactivated. Whether the equity has value on top of that, time will tell that the beauty of optionality in the gold sector and with prices moving the way they are, we're not going to close that door, but first and foremost, it's fair to say that we're after value on the stream, which is why it was protected in that receiver shift process in the first place.
beyond that time of time will tell. Thank you and congratulations. Thank you John . Thank you and at this time, Mr. Singh, we have no other questions. Please proceed.
Okay, and I'm figuring out my technology and I can tell that there are no other questions on the webcast either, so thanks everyone for your time this morning. Thank you so much.
maybe as a public service announcement, just a reminder that Sunday is Mother's Day and someone who has disappointed both their mother and their wife in past years. I plan on trying to break that streak so hopefully hopefully you're successful and doing the same. So thank you again and be well. Thank you sir.
Ladies and gentlemen, this does indeed conclude the conference call for today. Once again, thank you for attending and at this time we do ask that you please disconnect your lines.
So F that.