Q1 2024 Osisko Gold Royalties Ltd Earnings Call

Operator: Good morning, ladies and gentlemen, and welcome to the Osisko Gold Royalties Q1 2024 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 on your telephone keypad. Please note that this call is being recorded today, May 9, 2024, at 10 a.m. Eastern Time. Today on the call, we have Mr. Jason Attew, President and Chief Executive Officer, Mr. Fredric Ruel, Chief Financial Officer, and Vice President of Finance.

Good morning, ladies and gentlemen, and welcome to the Cisco Gold royalties Q1, 'twenty 'twenty four results conference call.

Operator: After the presentation, we will conduct a question and answer session.

Operator: If you would like to ask a question. Please press star followed by the one on your telephone keypad. Please.

Operator: Please note that this call is being recorded today may nine 2024 at 10 am eastern time.

Speaker Change: Today on the call. We have mission, we have Mr. Jason It to President and Chief Executive Officer, Mr. Phonetically Bell, Chief Financial Officer, and Vice President Finance, Heather Taylor, Vice President of sustainability, and communications and Mr. Ian Farmer, Vice President corporate development I would now like to turn to me.

Jason Mark Attew: Meeting over to our host for today's call Mr. Jason It too well.

Operator: Heather Taylor, Vice President, Sustainability and Communications, and Mr. Ian Farmer, Vice President, Corporate Development. I would now like to turn the meeting over to our host for today's call, Mr. Jason Attew. Hello, ladies and gentlemen, and welcome to the results call for the first quarter of the year 2024, Osisko Gold Royalties Ltd. After the presentation, we will proceed to a Q&A session. If you would like to ask a question, please press the star button, followed by 1.

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Operator: Please note that this call is being recorded today, May 9, from 10 to 10 p.m. We have on the line today Mr. Jason Attew, President and Director, Mr. Fredric Ruel, Director of Finance and Vice-President of Finance, Mr. Ian Farmer, Vice-President of Corporate Development, and Heather Taylor, Vice-President of Sustainable Development and Communications. I would now like to give the floor to your host, Mr.

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Jason Mark Attew: Good morning, everybody. And thanks for being on today's call. I'm Jason Attew, President and CEO of Osisko Gold Royalties. Procedurally, I, along with Heather Taylor, will run you through the presentation, and then we'll subsequently open up the line for questions. For those participating online via the webcast, you can submit your questions in advance through the webcast platform.

Speaker Change: Good morning, everybody and thanks Jay.

Jason Mark Attew: Jason.

Jason Mark Attew: Got it.

Jason Mark Attew: Okay.

Jason Mark Attew: Procedurally I along with heavier dealer.

Heather Taylor: And then we'll open up the line.

Jason Mark Attew: For those participating via the webcast you can submit your questions.

Jason Mark Attew: And through the webcast.

Jason Mark Attew: Today's presentation will also be available and downloadable online through our corporate website. Please note that there are four forward-looking statements in this presentation where actual results may differ. Also, please note the basis of the presentation will be in Canadian dollars unless otherwise noted. I'm joined on the call this morning by Fredric Ruel, the company's VP of Finance and Chief Financial Officer, and Heather Taylor, Vice President, Sustainability Communications. Amongst the others, as indicated on slide 3. Slide 4.

Jason Mark Attew: Today's presentation will also be available online.

Jason Mark Attew: Online.

Jason Mark Attew: Please note.

Jason Mark Attew: Forward looking statements in this presentation actual results may differ.

Jason Mark Attew: Also please note the base of the presentation Canadian or.

Jason Mark Attew: Otherwise noted.

Frdric Ruel: I'm joined on the call. This morning by regulate the company's VP finance and Chief Financial Officer.

Jason Mark Attew: Vice President sustainability communication.

Jason Mark Attew: Others have indicated on slide three.

Jason Mark Attew: When looking at Osisko's first three months of 2024, we are off to a predictable start as it relates to gold equivalent ounces earned, cash margin, cash flows, as well as overall net reduction. Osisko earned $22,259 in the first quarter of 2024, which puts us on track to achieve our previously published full year 2024 guidance of between $82,000 and $92,000 in gold equivalent output. Revenues for the period were strong in Q1, at $60.8 million.

Jason Mark Attew: Slide four we're looking at a fiscal in the first three months of 2024, we're off to a predictable start as it relates to gold equivalent cash margin cash flow as well as overall debt reduction.

Jason Mark Attew: Cisco R 22259.

Jason Mark Attew: The first quarter of 2020.

Jason Mark Attew: Which puts us on track to achieve our previously published full year 2020 guidance.

Jason Mark Attew: Between 80090 thousand.

Jason Mark Attew: Revenues for the very good strong Q1 at $6 8 million.

Jason Mark Attew: Even though gold and silver prices in Q1 were robust with average realized prices of U.S. 2073 and U.S. 2378, respectively, The Precious Metals Complex only saw a real appreciation after our last sales concluded for the quarter. In other words, today's spot gold price is approximately $250 higher than a realized price over Q1.

Jason Mark Attew: Even though gold and silver prices Q1 worldwide.

Jason Mark Attew: Average realized prices of U S.

Jason Mark Attew: 2073, and <unk> 23, 78, respectively, the precious metals called but we thought it would.

Jason Mark Attew: We have appreciation outdoor lifestyle, including for the quarter.

Jason Mark Attew: In other word today's spot oil prices approximately $250 higher than our realized price over Q1.

Jason Mark Attew: In addition, the system's cash margin was 97% in the quarter. This was Jeff Schei of the company's record quarterly cash market at 98% in the third quarter of 2017. Tesco ended the first quarter.

Jason Mark Attew: In addition.

Jason Mark Attew: Cash margins of 97% in the quarter.

Jason Mark Attew: This is just shy of the company's record quarterly cash margin of 98% in third quarter 2017.

Jason Mark Attew: Cisco ended the first quarter was $70 6 million in cash and.

Jason Mark Attew: $70.6 million in cash, a net debt of just over $8 million after the company continued to pay down its revolving credit facility during the period. So far in Q2, the company has repaid an additional $18.6 million on the facility, further increasing our financial flexibility in order to be able to transact new accretive opportunities as they present themselves. With respect to our ongoing commitment to return capital to shareholders, the company declared and paid a quarterly dividend of $0.06 per share in Q1, marking its 36th consecutive dividend with over $279 million in return to shareholders to date from its distribution.

Jason Mark Attew: Our net debt of just over 8 million the company continued to pay down our revolving credit facility during the period.

Jason Mark Attew: So far for Q2, the company has repaid an additional $18 6 million.

Jason Mark Attew: Further increasing our financial flexibility in order to be able to transact in new accretive opportunities as they present themselves.

Jason Mark Attew: With respect to our ongoing commitment to return capital to shareholders. The company declared and paid a quarterly dividend per.

Jason Mark Attew: <unk> per share in Q1, marking our 36th consecutive dividend with over 279 million returned to shareholders.

Jason Mark Attew: Police distributions.

Jason Mark Attew: Subsequent to the quarter, the Osisko Board of Directors approved an 8% increase to the base quarterly dividend of $0.065 per common share payable on July 15, 2024 to shareholders of record as of the close of business on June 28, 2020.

Jason Mark Attew: Subsequent to the quarter and fiscal board of directors approved an 8% increase to the base quarterly dividend six five cents per common share payable on July 15, 2024th to shareholders of record as of close of business on June 28 2021.

Jason Mark Attew: 24.

Jason Mark Attew: This is a testament to the tremendous confidence we have in the consistency and the predictability of the cash flows underpinning our business. With respect to our opportunity set, the company's pipeline continues to remain robust, with our corporate development team busier than they have ever been. We remain optimistic that we'll get at least one or possibly two meaningful transactions across the line this year. Finally, as some of you know, on April 10th, Osisko published its fourth edition of its sustainability report, Growing Responsibly. I'd like to bring in Heather Taylor to talk about this key achievement in more detail. Heather?

Jason Mark Attew: This is a testament to the tremendous confidence we have in the consistency and the predictability of cash flow underpinning our business.

Heather Taylor: With respect to what opportunities that the company pipeline continues to remain robust.

Heather Taylor: Our corporate development team busier than ever.

Heather Taylor: We remain optimistic that we'll get at least one possibly two meaningful transactions across a lot of this year.

Heather Taylor: Finally, some of you know on April yet.

Heather Taylor: Cisco published its fourth edition.

Heather Taylor: He is already report growing responsibly.

Jason Mark Attew: And I'd like to bring about Heather Taylor, you talked about the key achievements in more detail, thanks, Dave and they need to everyone who's taken the time to join us today.

Heather Taylor: Thanks Jason and thank you to everyone who's taken the time to join us today. Subsequent to the quarter, we published the fourth edition of our sustainability report, Growing Responsibly, which, as Jason mentioned, is guided by the highest standards set by GRI, FASB, and IFRS for climate-related disclosures. This publication marks another year of substantial progress made with respect to our governance, environmental, and social initiatives. I invite you to explore our achievements in greater detail in the report, which is posted on our website. Starting with governance, this past year has seen Osisko make significant strides. We've enhanced the leadership of our board by appointing an independent chairperson.

Heather Taylor: Subsequent to the quarter, we published the fourth edition of our sustainability report growing responsibly as Jason mentioned.

Heather Taylor: It's guided by the highest standards set by D. R I badly and ifr at climate related disclosure.

Heather Taylor: This publication marks another year of substantial.

Heather Taylor: The progress made with respect to our governance, environmental and social initiatives and like it's like for our achievements in greater detail in the report which is posted on our website.

Heather Taylor: Starting with governance.

Heather Taylor: This past year has seen I was just going to make significant strides.

Heather Taylor: We've enhanced the leadership of our board by appointing an independent chair.

Heather Taylor: Reinforcing our commitment to robust oversight and accountability. We've also maintained our commitment to diversity, with women continuing to make up over 30% of our board members. The integration of my now-not-so-new role as Vice President of Sustainability and Communications ensures that we have a dedicated individual focusing on our ESG initiatives and continuing to drive these forward. On the environmental side, supporting Osisko's mandate to align capital allocations with ESG principles, we formalized our investment due diligence process by developing an ESG screening and monitoring tool.

Heather Taylor: Reinforcing our commitment to robust oversight and accountability.

Heather Taylor: We also maintained our commitment to diversity with women continuing to make up over 30% of our board members.

Heather Taylor: The integration of mind now not so new role as vice president of sustainability and he thinks and insurance that we have a dedicated individual focusing on our ESG unless she does and continuing to drive these forward.

Heather Taylor: On the environmental side supporting us disclose mandate to align capital allocation, yeah, two principal ways.

Heather Taylor: Formalize our investment due diligence process by developing an ESG screening and monitoring tool.

Heather Taylor: The tool is aligned with industry-leading practices and allows us to assess the ESG performance of potential assets and mining partners across multiple topics prior to investing and subsequent monitoring post-capital deployment. In our commitment to address climate-related challenges, we conducted scenario analysis to gauge the exposure of key assets to climate-related risks and opportunities. This analysis helps inform the development of an inaugural climate change strategy for the 2024 to 2027 timeframe.

Heather Taylor: This was in line with industry, leading practices and allows us to what's that yes. He performance.

Heather Taylor: Potential assets in mining partners across multiple topics prior to or nothing and subsequent monitoring post capital deployment.

Heather Taylor: And our commitment to address climate related challenges, we conducted scenario analysis to gain exposure to climate related risks and opportunities that's there.

Heather Taylor: Now it does help inform the development of an inaugural climate change strategy for the 'twenty 'twenty four 'twenty 'twenty seven timeframe.

Heather Taylor: We have also enhanced our transparency in reporting scope 3 emissions and have entirely offset the company's 2023 office-based emissions with the purchase of high-quality carbon credits. Lastly, on the social front, we have deepened our commitment to our employees and the communities we impact. We implemented comprehensive training focused on diversity, equity, and inclusion, health and safety, and human rights. Additionally, our teams have actively participated in volunteering events that support and uplift our local community.

Heather Taylor: We also enhanced our transparency in our reporting scope three M. S N and have entirely offset the company's 2023 office based in Michigan with the purchase of high quality carbon credit.

Heather Taylor: Lastly on the social front, we have deepened our commitment to our employees and the communities. We impact we implemented comprehensive training focus on diversity equity and inclusion health and safety and human right.

Heather Taylor: Additionally, our teams are actively participated in voluntary event that supports an uplift our local communities.

Heather Taylor: We deployed over $325,000 towards community donations aligned with our newly formalized community investment guidelines. Our efforts have been recognized externally, with Osisko receiving an AA rating from MSCI and high rankings from Sustainalytics, including top-rated regional and industry badges. These achievements should be immensely proud of. These accomplishments reflect our strong performance relative to precious metal peers and underscore our dedication to leading ESG practices. As we look to the future, our commitment remains firm.

Heather Taylor: Deployed over $325000 towards community donations aligned with our newly formalized community investment guidelines are.

Heather Taylor: Our efforts have been recognized externally with other sysco, receiving a double AA rating from MSCI and high ranking it sounds insane alert X, including top rated regional and industry badges.

Heather Taylor: These achievements, we shouldn't be immensely proud of.

Heather Taylor: He's accomplished accomplishments reflect our strong performance relative to the precious metals here that underscore our dedication to meeting and ESG practices.

Heather Taylor: As we looked at our future our commitment remains firm.

Heather Taylor: We will continue to integrate ESG principles across the organization and into our purpose strategy, ensuring that our actions benefit not only our shareholders but also the broader communities and environments in which we conduct business. With that, I'll pass it back to Jason. Thanks, Kelly.

Heather Taylor: We will continue to integrate ESG principles across the organization and into our corporate strategy, ensuring that our actions benefit not only our shareholders, but also the broader community and environment in which we conduct business.

Heather Taylor: With that I'll pass it back to Jason.

Jason Mark Attew: Thanks, others. We now pivot to the company's financial components for Q1. Quarterly revenues effectively track higher year-over-year commodity prices compared to Q1 2023, which was also partially offset by left gold equivalent ounces versus the same period last year. The decrease in Q1 2024 is due to the stoppage of operations of a large diamond mine at the end of 2023. Net earnings of $0.08 per basic common share for the period represent a modest decline versus the first quarter of 2023. However, this delta largely reflects a non-cash share of loss on associates, more specifically of fiscal development, and to a lesser extent, a modest non-cash foreign exchange loss during the period.

Jason: Thanks, Kevin and then I'll pivot to the company's financial performance for Q1.

Jason Mark Attew: What are your quarterly revenues effectively drive higher year over year commodity prices.

Jason Mark Attew: Apparently people in 2023, which was also partially offset by less gold equivalent ounces versus the same period last year.

Jason Mark Attew: Greece in Q1 2024 due to the stoppage of operations with our Diamond mines at the end of 2023.

Jason Mark Attew: Net earnings of eight cents per basic common share for the period, representing a modest decline versus the first quarter of 2023.

Jason Mark Attew: The delta largely noncash.

Jason Mark Attew: Noncash share of loss of associates, or specifically for development and to a lesser extent the modest noncash foreign exchange loss during the period.

Jason Mark Attew: Most importantly, though, Q1 2024. So a year-over-year improvement in both cash flow per share, as well as quarterly adjusted earnings of $0.16 per basic common share, during the first quarter of 2024. This company had 19 producing hours. Our GEOs earned come predominantly from Canada, and we derive over 95% of our gold equivalent ounces from precious metals, gold just under 71% and silver at 25%, with the remainder coming from other

Jason Mark Attew: Most importantly, though Q1 2024.

Jason Mark Attew: The year over year improvement in both cash flow per share as well as quarterly adjusted earnings of 16 cents per basic common share.

Jason Mark Attew: In the first quarter of 2024.

Jason Mark Attew: The company had 19 producing asset.

Jason Mark Attew: Our deal with earn come predominantly from Canada, we derive over 95% of our gold equivalent ounces of precious metal.

Jason Mark Attew: Oh, just under 71% and silver at 25%.

Jason Mark Attew: They're coming from other metals.

Jason Mark Attew: As I noted previously, with the recent shutdown of Menard, diamonds will no longer be contributed to Osisko's GEOs earned going forward, putting the company in a position to effectively be 100% precious metal until some of the company's base metal exposure begins to expand, with the first material contributions coming from the CFA accomplished. The effective date of that copper stream is June 15th of this year. Some comments on specific my performances during the quarter or speaking out, speaking about a couple of more material assets in greater detail. The Canadian malarkey had yet another impressive start to the year, with Ignico booking record quarterly production from the mine. The actor remains Osisko's most important contributor to the GEOs earned by a solid, solid margin.

Jason Mark Attew: As I noted previously the recent shutdown of Bernard Diamond will no longer be contributed to the Cisco deal.

Jason Mark Attew: Going forward.

Jason Mark Attew: Putting the company in position to effectively 100% precious metal until some of the companies based on all exposure to begin to expand with the FERC material contribution coming from the CSA copper stream or the effective date of the copper stream June 15th of this year.

Jason Mark Attew: Some comments specific my performances during the quarter for speaking out speaking about a couple of orbit filyaw material assets in greater detail.

Jason Mark Attew: The Canadian markets had yet another impressive start to the year Nico booking record quarterly production for Lloyd Yes.

Jason Mark Attew: Yes, it remains the most important contributor.

Jason Mark Attew: The Geos earned by a solid solid margin.

Jason Mark Attew: Performance from Victoria's Gold Eagle Mine during the first quarter of 2024 fell somewhat short of our budgeted expectations. Victoria noted, however, that gold production in Q1 2024 would be lower year-over-year due to lower grades related to mine sequencing of the Eagle IV body. Timing and Placing Stack Cuts Under Leach and Lower Planned Stacking Rates in Q4 2023. Despite the slower start, the company still expects to achieve 2024 gold production guidance of 165,000 to 185,000 ounces. The summer and fall season is typically the month's strongest operating period.

Jason Mark Attew: Performance from Victoria, Victoria Gold Eagle buying during the first quarter of 2024 somewhat short of our budgeted expectations.

Jason Mark Attew: Victoria noted however, the gold production in Q1 2020 for lower year over year lower grades related to the mine sequencing of the Eagle ore body.

Jason Mark Attew: And placing satcom under leach and lower planned stacking rates in Q4 2023.

Jason Mark Attew: The slower start to the company still expects to achieve 2020 for gold production guidance of 165 to 185000.

Jason Mark Attew: The summer and fall season, typically being the strongest operating periods.

Jason Mark Attew: Performance from Capstone's Mantos-Blancos operation, or milling rigs continued to lag based on expansion design levels, was effectively flat versus the prior period in Q4 2023, and Cisco will continue to monitor MATLAS's performance through 2024. We remain optimistic that Capstone continues to point to a mid-2024 resolution of the plant issues all the way. The delivery in June 2024. Installation of New Pumping Infrastructure Related to Fine-Tailing and Water Management

Jason Mark Attew: Performance from Capstone mental Blancos operation, we're milling rates continue to lag phase one expansion signed levels was effectively flat versus the prior period in Q4 2023.

Jason Mark Attew: Physical will continue to monitor my emphasis performance through 2024.

Jason Mark Attew: We remain optimistic that capstone continues to point to a mid 2024 resolution.

Jason Mark Attew: The plant issues following.

Jason Mark Attew: Deliveries in June 2020 for instance.

Jason Mark Attew: Installation of new pumping infrastructure related to the foreign tailings and water management.

Jason Mark Attew: If things go well from there, if Capstone is able to consistently achieve its mainframe throughput capacity of 20,000 tons per day, then Osisko will reap the benefits of this achievement in its 2025 year, with Manto Blanco representing the biggest driver of Osisko's step change to gold equivalent ounce growth in 2025 versus 2024. As I mentioned earlier, the number of currently producing assets in our portfolio stands at 90. We anticipate this number to increase by two production assets in the second half, as we discussed both the Landini and Tocantino projects to be pouring gold before the end of the year, in addition to the start of the CFA conference. Moving to the next slide.

Jason Mark Attew: If things go well from their capstone is able to consistently achieve nameplate throughput.

Jason Mark Attew: 20000 tonnes per day in our fiscal we'll reap the benefits of this achievement and is 2025 years with mental blancos, representing the biggest driver of the fiscal step change in gold equivalent ounce growth in 2025 versus 2024.

Jason Mark Attew: As I mentioned earlier.

Jason Mark Attew: We're currently producing assets in our portfolio stands at 90.

Jason Mark Attew: We anticipate this number to increase by two production assets in the second half.

Jason Mark Attew: We expect both <unk> and took a devino projects to be pouring gold before the end of the year.

Jason Mark Attew: In addition to the skirt TSA copper stream.

Jason Mark Attew: While we've spoken to this slide an innumerable number of times, I think it remains as relevant today as ever, as our company continues to distinguish itself from the rest of its relevant peers and subsets, as it relates to geotextile exposure. Osisko is the leader when it comes to both Net Asset Value and Gold Equivalent Ounces earned from what Osisko defines as Tier 1 Mining Jurisdiction, which includes Canada, the United Of note is that if we were to add Chile to that list of countries, we would need to increase it by over 95%.

Jason Mark Attew: Moving to the next slide while we have spoken with fly in a numerous number of times I think it remains as relevant today as ever.

Jason Mark Attew: Our company continues to distinguish itself from the rest of its relevant peers, we sub sector as it relates to jurisdictional exposure.

Jason Mark Attew: <unk> is the leader when it comes to both net asset value in gold equivalent ounces earned from what it is.

Jason Mark Attew: Cisco define tier one mining jurisdiction.

Jason Mark Attew: Which include Canada, the United States and Australia.

Jason Mark Attew: Of note is that if we were to add chili's about with countries with me but over.

Jason Mark Attew: 95%.

Jason Mark Attew: In terms of Canadian malarkey, the mine realized record quarterly gold production driven by higher tonnage and gold rates thanks to contributions from the Odyssey Underground. More specifically, ramp development continues to exceed target, reaching the first production levels at East Gould in February 2024 and at a depth of 765 meters at the end of March. Shaft sinking improved during the quarter with an average sinking rate of 2.4 m per day.

Jason Mark Attew: In terms of Canadian Mill Arctic the mine realized record mine realized record quarterly gold production, driven by higher tonnage and gold grades. Thanks to contributions from the Odyssey underground.

Jason Mark Attew: More specifically ramp development continue to exceed target, reaching the FERC production levels at these schools and fair.

Jason Mark Attew: We were in 2024.

Jason Mark Attew: And at a depth of 765 meters at the end of March.

Jason Mark Attew: I was thinking improved during the quarter with an average thinking right at two four meters per day.

Jason Mark Attew: The Temporary Loading Pockets previously planned at Level 102 will now be built at Level 64, which is expected to provide hoisting capacity by mid-2025, six months earlier than previously planned and will provide added development and protection for. We were obviously also delighted to hear our operating partner continues to make reference to plans around a potential second shaft for the Odyssey Underground, story to stay tuned. We'll do the next slide on CSA.

Jason Mark Attew: The temporary loading pocket previously planned at level, one or two will now be built that level 64, which is expected to provide hoisting capacity by mid 2025.

Jason Mark Attew: Six months earlier than previously planned and will provide added development and production flexibility.

Jason Mark Attew: We were obviously also delighted to hear.

Jason Mark Attew: Operating partner continues to make reference to plan around a potential second shaft for the Odyssey underground.

Jason Mark Attew: Sorry to stay tuned to.

Jason Mark Attew: The next slide on CSA.

Jason Mark Attew: Just a few weeks ago, our offering partners at Metals Acquisition Corps announced an updated mineral reserve and resource savings based on drilling completed at CFA only up to the end of August 2023. Highlights included a 57% increase in mine life to 11 years.

Jason Mark Attew: Just a few weeks ago, our operating partners and metals acquisition Corp announced an updated mineral reserve and resource statements based on drilling compete completed CSA only up to the end of August 2023.

Jason Mark Attew: This included the 57% increase in mine life of 11 years.

Jason Mark Attew: In other words, to the end of 2034, based on mineral reserves only, compared to a six-year reserve mine-like outline previously. The updated mineral reserve only extends 95 vertically 95 meters vertically below the current decline, and Metals Acquisition Corp. will continue to drill beyond the August 2023 cutoff. We clearly expect that there is more to come from this team in the relatively near term. Recall that the CSA copper mine has been producing for almost 60 years with very limited exploration away from the known deposits, and there is clear potential to further optimize metal acquisition for April 2024 life of mine production. Exploration in the top 850 meters of the cauldron is just starting.

Jason Mark Attew: In other words at the end of 2034 based on the mineral reserves only compared to a six year reserve mine life outlined previously.

Jason Mark Attew: The updated mineral reserve only extends 95 vertical 95 meters vertically below the current deployed position.

Jason Mark Attew: And metals acquisition costs continue to go well beyond August 2023 cutoff date.

Jason Mark Attew: Clearly expect that there is more to come from this team in relative near term.

Jason Mark Attew: Recall that she got the copper line had been producing for almost 60 years with very limited exploration away from the known deposits and there are clear potential to further optimize metal acquisition Corp. By April 2020 for life of mine production plan.

Jason Mark Attew: Exploration in the top 850 meters of deposit is just starting and initial results highlight strong potential to open additional mining fronts.

Jason Mark Attew: The initial results highlight strong potential to open additional mining projects. Moving to the next slide, Eileen Magino, in late March 2024, Alamo announced a friendly acquisition of Argonaut Gold and its Mageno Gold mine and mill located immediately adjacent to Island Gold. This transaction is expected to close in Q3 2024. The previously planned phase 3 mill expansion construction work at Island will no longer be required following the announced acquisition of the 10,000 ton per day Mageno Mill, which is located a crossing 2 kilometers from the Island Gold shaft.

Jason Mark Attew: Moving to the next Slide Island Latino in late March 2020 for Alamos announced a friendly acquisition Argonaut gold.

Jason Mark Attew: And if the genome worldwide and mill located immediately adjacent to island gold.

Jason Mark Attew: Transaction is expected to close in Q3 2024 previously.

Jason Mark Attew: Previously planned basically mill expansion construction work at island will no longer be required following the announced acquisition of the 10000 ton per day Medina Mill, which is located approximately two kilometers from the island gold shops.

Jason Mark Attew: The larger mill and tailings infrastructure at Majino will now accommodate the rapidly growing mineral resource and rote resource base at Island Coal. The expanded and accelerated mine plan is also anticipated to transition a greater proportion of production toward the 2% and 3% NSR loyalty boundaries earlier in the mine plan, as opposed to the mineral inventory covered by ASSIST's 1.38% NFL royalties. In addition, a small fraction of the eastern limit of the Negino pit is covered by a 3% NSA royalty, with production expected later this decade. The underground exploration potential previously highlighted by Argonite Gold on this claim is located less than 300 meters from the existing Island Gold underground infrastructure.

Jason Mark Attew: Larger mill and tailings infrastructure amid Gino will now accommodate that rapidly growing mineral resource base at island gold.

Jason Mark Attew: The expanded and accelerated might've Glenn is also anticipated to transition a greater proportion of production toward the typical 2% and 3% MSR loyalty boundaries earlier in the mine plan.

Jason Mark Attew: As opposed to the mineral inventory covered biases as 138% NFL royalty.

Jason Mark Attew: In addition, a small fraction of the eastern limit genotype is covered by a 3%.

Jason Mark Attew: Okay.

Jason Mark Attew: With production expected later this decade.

Jason Mark Attew: The underground exploration potential previously might've highlighted by Argonaut gold on this claim is located less than 300 meters.

Jason Mark Attew: Island Gold underground infrastructure.

Jason Mark Attew: Moving to our guidance and growth. After the first quarter, as previously noted, the company remains on solid footing with respect to being able to achieve its previously published 2024 Geo Delivery Guide. Especially with three material contributors expected to deliver new gold equivalent ounces to Osisko in the second half of 2024, being CSA Copper, Green, Tocantinzino, and Nandini. While this year's guidance number was always going to represent a modest step down versus last year's, it is worth reminding everyone that with Bernard no longer in the picture, cash margins have increased.

Speaker Change: Moving to our guidance and growth.

Jason Mark Attew: After the first quarter.

Jason Mark Attew: And as previously noted the company remains on solid footing with respect to being able to achieve the previously published 2024 D O delivery guidance.

Jason Mark Attew: Especially with pre material contributors are expected to deliver new gold equivalent ounces with Cisco in the second half of 2024 being the CSA copper stream took up in Reno and M D.

Jason Mark Attew: While this year's guidance ever was always go to represent a modest step down versus last year's.

Jason Mark Attew: It's worth reminding everyone that we're not no.

Jason Mark Attew: We're not no longer in the picture cash margins have increased.

Jason Mark Attew: And given the write-downs that have already taken place in the assets, tax schools have been created, so Osisko is not expecting to be taxable in Canada for 2024. Unsurprisingly, at this point in time, the company's five-year outlook for 2028's publish and miss every publication remains unchanged. As we remain very confident that both the expansion and our development assets will fuel the 35% peer-leading growth with no continued capital or any capital calls required. Moving to our catalyst fly.

Jason Mark Attew: And given the write down.

Jason Mark Attew: Megan place any asset tactical that's being created.

Jason Mark Attew: Cisco is not expected to be cash tax taxable in Canada for 2024.

Jason Mark Attew: Unsurprisingly at.

Jason Mark Attew: At this point in time, the company's five year outlook for 2028 published in mid February remains unchanged.

Jason Mark Attew: As we remain very confident that both the expansion and our development assets, we'll feel that 35% pure leading growth with no contingent capital or any capital required.

Jason Mark Attew: Moving to our catalyst slide.

Jason Mark Attew: Underpinning this updated growth profile is a long list of near-term catalysts that we provided on slides 14 and 15. We've already discussed many of these on previous slides in this presentation, so there is no need for me to add anything further here today. That said, I would still suggest you take the time to go through this impressive list yourself.

Jason Mark Attew: Underpinning the updated growth profile is a long list of near term catalysts that we provided on slides 14 and 15.

Jason Mark Attew: We've already discussed many of these already on previous slides on the presentation. So no need for me to add anything further today.

Jason Mark Attew: That said I would still suggest you take the time to go through this impressive lift yourself and if you have any questions or would like to discuss further any of the remaining light items highlighted on these two pages I encourage you to reach out to my colleagues here at Cisco for more information.

Jason Mark Attew: And if you have any questions or would like to discuss further any of the remaining light items highlighted on these two pages, I encourage you to reach out to my colleagues here at Osisko for more information. Turning to the balance sheet. Well, finally, we'll end the formal part of the presentation on slide 16, which outlines the current state of Osisko's ballot. At quarter ends, we had a total death of just over $150 million, a net death of only approximately $80 million.

Jason Mark Attew: Turning to the balance sheet.

Jason Mark Attew: Finally, we will end the formal part of the presentation on slide 16, which outlines the current state of the fiscal balance sheet.

Jason Mark Attew: At quarter end, we had total debt of just over $150 million and net debt of only approximately $80 million.

Jason Mark Attew: As we've stated previously, the Covenant's performance was exceptionally strong with a 97% cash margin experienced in the first quarter of 2024, expected to continue throughout the year. As noted previously on this call, and noted as a subsequent event in our MD&A, we've now also repaid an additional $18.6 million against our Revolver Credit Facility, further strengthening our financial... which, by the way, Pratt extended the facility for another In addition, if commodity prices, specifically gold and silver, sit above U.S. 2300 and U.S. 27, respectively, 25 respectively, we forecast to end up in a net cash position at the beginning of the fourth quarter 2024. No significant deals are closed at that time.

Jason Mark Attew: As we've stated previously our covenant performance was exceptionally strong with a 97% cash margin experienced in the first quarter of 2024 expected to continue throughout the year.

Jason Mark Attew: As noted previously on this call.

Jason Mark Attew: <unk> as a subsequent event in our MD&A. We've now also repaid an additional $18 $6 million against our revolver credit facility further strengthening our financial division.

Jason Mark Attew: Which by the way, Brad and extended the facility for another four years.

Jason Mark Attew: In addition, if commodity prices, specifically gold and silver sit above U S 2300, and U S 27, respectively.

Jason Mark Attew: Sorry, 25, respectively, we forecast to end up in a net cash position at the beginning of the fourth quarter 2024, no significant deals are close by that time.

Jason Mark Attew: This is important as Osisko doesn't expect its internet plan to be completed until 2024. And our much-improved balance sheet provides the company with the financial capacity and flexibility to continue its strategy of disciplined allocation in the pursuit of high-quality, accretive precious metal streams and royalties that will bolster the company's current and near-term geo-deliveries and cash flow that should accrue to our shareholder expenditure. And with that, I'd like to thank everyone for listening today. You'll now open up the line for questions, as well as questions posted on the webcast. If we don't get to all the questions on the line, we'll make sure to respond offline to those that we don't cover in this webcast. Operator.

Jason Mark Attew: This is important as a Cisco doesn't expect the center to.

Jason Mark Attew: For 2024.

Jason Mark Attew: And for a much improved balance sheet provides the company with the financial capacity and flexibility to continue its strategy of disciplined allocation in the pursuit of high quality accretive precious metal streams and royalties.

Jason Mark Attew: It will bolster the company's current near term deal deliveries and cash flow that should accrue to our shareholders' benefit.

Speaker Change: And with that I'd like to thank everyone for listening today, we'll now open up the line for questions as well as questions posted on the webcast. If we don't get to all the questions on the lines, we will make sure to respond offline to those that we don't cover all those webcast operator.

Operator: Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press star followed by the number on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. If you are using a speakerphone, please lift the handset before pressing any key. Your first question comes from Ralph Profiti with... 8 Capital. Your line is now open.

Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by the one on your Touchtone phone.

Operator: To hear a pump that you have that your hand has been raised should you wish to decline from the political process. Please press star followed by the Q.

Operator: If you are using a speaker phone please lift the handset before pressing any piece.

Ralph M. Profiti: Your first question comes from Ralph <unk>.

Ralph M. Profiti: T with.

Ralph M. Profiti: Eight capital your line is now open.

Ralph M. Profiti: Thanks, Operator. Good morning. Jason, thanks for taking my question. Two of them, please. Firstly, the degree to which you can, without giving away too much, you mentioned one to two transactions that hopefully will be able to close this year. Can we get sort of a broad range of the sizes of that you're looking at? And maybe more importantly, whether or not these are sort of competitive processes, or are you leveraging existing or new relationships where we would consider these opportunities more exclusive?

Operator: Okay.

Ralph M. Profiti: Thanks, operator, good morning, Jay.

Ralph M. Profiti: Jason Thanks for taking my question I had two of them. Please firstly the degree to which you can you know without giving away too much you mentioned one to two transactions.

Ralph M. Profiti: Hopefully be able to close this year.

Ralph M. Profiti: Can we get sort of a broad range of the sizes of that Youre looking at and maybe more importantly, whether or not these are sort of competitive processes or are you leveraging existing or new relationships, where we would consider these opportunities are more exclusive.

Jason Mark Attew: Thank you, Ralph. A very good question. And obviously, we'd love to give you more information on the opportunities that we have, but obviously, there's a lot of confidentiality associated with them. With respect to the opportunity set and the size of the ticket or the size of the transaction, again, it varies obviously due to the transactions that we're looking at. Whether it's royalties or streams as well, it certainly varies in terms of the transactions. There's not a lot of detail that I can give you.

Speaker Change: Okay. Thank you very good question and obviously, we'd love to give you more information on the opportunities that we have been talking for deepwater competencies that we get associated with.

Jason Mark Attew: With respect to the opportunity set and the size of the ticket or the size of the transaction again it varies obviously.

Jason Mark Attew: Due to the transactions that we're looking at whether its royalties or streams as well. It certainly varies in terms of the transactions, there's not a lot of detail, but I can give you however, what.

Jason Mark Attew: However, what I would say is, again, the team is very much focused and has the team very focused on a smaller number of high conviction depth transactions that, again, we're hopeful that we can get one or two transactions announced by the end of the year. And transaction size, you can think of anywhere between 50 million up to $300 billion US. That's what we're essentially looking at. In terms of the competition, it is still a very, very competitive process, competitive and environmental, I think you can appreciate.

Jason Mark Attew: I would say is again the team is very very very much focused.

Jason Mark Attew: And have the team very focused on.

Jason Mark Attew: A smaller number of high conviction that that.

Jason Mark Attew: Again, we are hopeful that we can get one or two transactions.

Jason Mark Attew: But by the end of the year and transaction size, you can think of anywhere between $50 million up to $300 billion U S.

Jason Mark Attew: We're essentially looking at.

Jason Mark Attew: In terms of the competition. It is still a very very competitive process competitive environment. Because I think you can appreciate we've got a lot of peers as well as the private equity groups that participate in those.

Jason Mark Attew: We've got a lot of peers, as well as the private equity groups that participate in those processes. We do have some very strong relationships, though. And so we're also moving forward with a number of bilateral type transactions that are outside of any sort of process. But any more detail that we can provide you, Ralph, obviously, we've been preaching confidentiality. We're very excited to hopefully, again, be able to announce one or two of these by year end. And then you can analyze this in terms of what the overall returns are because we've been incredibly disciplined to ensure that both accreted deals and the accretion will accrue to our shareholders.

Jason Mark Attew: Processes, we do have some very strong relationships. So and so we're also moving forward with the number of bilateral type transactions that are outside of any sort of process.

Jason Mark Attew: But any more detail that we can variety Ralph.

Jason Mark Attew: Obviously, we do routine competency already.

Jason Mark Attew: Look we're very excited to hopefully again be it wasn't one or two of these by year end and then you've been in our allies that in terms of what the overall returns are because we have incredibly disciplined to ensure that either accretive deals and the accretion will accrue to our shareholders.

Ralph M. Profiti: Yes, certainly, I appreciate that, but very helpful comments. And then, secondly, I wanted to break down the incremental benefit at Island Gold with Mojino. And just, you know, can we quantify the sort of bringing forward not only not only the actual production by not having to bring in that mill but also, you know, the encroachment on the more advantageous 2% to 3% NSR? And, you know, if you're running at sort of 5,000 ounces of gold equivalent, just wondering if you can quantify, say, over the guidance period, whether or not we're going to see any incremental GEOs from that.

Speaker Change: Yes, certainly I appreciate that very helpful comments, and then secondly, I wanted to break down the incremental benefit Ah Ah at island gold with <unk> and just you know can we quantify sort of bringing forward not only are you know the actual production by not having to bring in that mill, but also.

Ralph M. Profiti: The encroachments on the more advantageous to the 3% MSR and if youre running at sort of 5000 ounces gold equivalent I'm. Just wondering if you could if you can quantify say over the guidance period, whether or not we're going to see any incremental <unk> from that.

Jason Mark Attew: Thank you, Ralph. I'll start and ask you to provide some expertise on the technical nature of the assets. I would say the first comment is the transaction has not closed as yet, and obviously the best source of information when it does close is with respect to the Alamos team. Obviously, the proximity of the two assets has been something that's been contemplated for some time. What we're obviously excited about is obviously you have an operator that's taking over an asset, and specifically, it's all about mill optimization.

Speaker Change: Well, thank you Rob I'll start out.

Jason Mark Attew: By some.

Jason Mark Attew: His expertise around the technical nature of the assets I would say the first comment.

Jason Mark Attew: The transaction has not closed yet.

Jason Mark Attew: And obviously the best source of information when it does close it with respect to the Alamos team.

Jason Mark Attew: Obviously, the proximity of the two assets that's been something that's been contemplated for some time.

Jason Mark Attew: We're obviously excited as obviously you'd have an operator moving into goodwill.

Jason Mark Attew: Taking over an asset specifically, it's all about mill optimization.

Jason Mark Attew: As I think you know, it's got a deep set of experience in terms of both operational acumen and a very deep balance sheet as well. So again, we're quite excited about the transaction. We do think that it's going to be beneficial for our royalties both at the Island Gold as well as the Gino over time, but I'll ask you to comment if he has anything further.

Speaker Change: Got it.

Jason Mark Attew: Deep set of experience in terms of both operational acumen, but very deep balance sheet as well so again we're.

Speaker Change: We're quite excited about the transaction, we do think that it's going to be beneficial for our royalties. Both at the island gold is as well as the genome overtime, but allow me to comment if he has anything further.

Unknown Executive: Yes, if you look at the most recent disclosure by Alamos, you'll see just naturally where the center of gravity of the mining is going towards the edges of where they've been recently and that, in general, you can see that as going towards 2% and 3%. The Maginot acquisition or potential acquisition doesn't really change anything. Any part of that plan, the thing that it does is de-risk some of the construction that was required, the mill expansion, tailing facilities, and so that's, you know, if the acquisition goes through, then those items are de-risked, and then the other portion is below that pit, and you'd have to go back a couple years to see some of the Argonaut disclosure on underground drilling that were really quite spectacular intersections, and But that's, yeah, it's hard to quantify what that could look like.

Speaker Change: The if you look at the most recent.

Unknown Executive: Disclosure by Alamos.

Unknown Executive: You'll see just naturally where the.

Unknown Executive: The minds of the center of gravity of the mining is going toward the edges of where they've been.

Unknown Executive: Recently <unk> and.

Unknown Executive: In general you can see that going towards the 2% and 3%.

Unknown Executive: As you know acquisition or potential acquisition doesn't really change.

Unknown Executive: Any part of that plan the thing that it does do is de risked some of the construction that is that was required on the mill expansion tailings facilities and so that's.

Unknown Executive: If the.

Unknown Executive: The acquisition goes through then.

Unknown Executive: Items are de risked and.

Unknown Executive: And then the other portion is below that pit and you'd have to go back a couple of years to see some of the argonaut disclosure on underground.

Unknown Executive: Drilling that were really quite spectacular intersections and those were not.

Unknown Executive: Not necessarily orphan, but a lot less accessible except for now in the hands of Alamos, that's a lot easier for them to drift over.

Unknown Executive: And further tests those and see if there are economic and makes sense to bring into the life of mine plan earlier.

Unknown Executive: Yes, it's hard to quantify what that could look like.

Speaker Change: Okay Alright.

Ralph M. Profiti: Helpful. Thanks, Jason. Thanks, Guy.

Speaker Change: Thanks, Jason and thanks Keith.

Speaker Change: Thank you Rob.

Operator: Your next question comes from Kerry Smith with Haywood Securities. Your line is now open.

Ralph M. Profiti: Your next question comes from Kerry Smith with Haywood Haywood Securities. Your line is now open.

Kerry Smith: Operator. Jason, I have just two questions.

Kerry Smith: Thanks, operator.

Kerry Smith: Firstly, what is your sort of targeted debt level that you'd like to run with for the company? You keep paying it down pretty aggressively, and you know, you're generating 45 to 50 million a quarter of cash flow. So the debt's pretty modest in that context. I'm just wondering if you have a target number there.

Kerry Smith: Just two questions. Firstly, what is your sort of targeted debt level that you'd like to run with floor at the company you keep paying it down pretty aggressively and now you're generating $45 million to $50 million a quarter of cash flow. So that's pretty modest in that context. I was just wondering if you have a target number there.

Jason Mark Attew: In your second question, Kerry,

Speaker Change: And your second question Kerry.

Kerry Smith: And my second question is, how is the agreement structured on the Alamo's royalty in terms of how you actually figure out what your payable allowances will be from the island tonnage? Because the recoveries... Tramagena will be considerably lower than the recoveries they'll get from the island or just by virtue of the grade.

Jason Mark Attew: Okay.

Kerry Smith: And my second question is how is the agreement structured on the Alamos royalty.

Kerry Smith: In terms of how you actually share a watch.

Kerry Smith: What your payable ounces will be from from the island tonnage because the recoveries.

Kerry Smith: Trauma, Gino will be considerably lower than the recovery should all get some the island or just by virtue of the great I'm just wondering how you monitor that.

Jason Mark Attew: I'm just wondering how you monitor that.

Jason Mark Attew: Thank you, Kerry. With respect to the leverage levels, you're absolutely on point, being a real focus for Fred and the whole Osisko executive team to continue to pay down our facilities. We heard what I had to say, Mr. Ralph, with respect to the opportunities that we do think that there's a possibility for which we can be deploying this year $300-400 million U.S. And so the way we think through things, we think through things in terms of the net debt-to-EBITDA level.

Jason Mark Attew: Thanks, Gary with respect to the leverage level and you're absolutely on point being a real focus spread in the whole of fiscal executive team to continue to pay down or facility.

Jason Mark Attew: You heard what I have to say that there Ralph with respect to the opportunity set we do think that there is possibility for which we can be deploying this year at three $400 million.

Jason Mark Attew: And so the way we think two things we think three things in terms of the net debt to EBITDA level.

Jason Mark Attew: I would suggest if we can do producing assets, and it really depends on the type of transaction that is done, because if you're doing a transaction that gives you immediate cash flow, it's obviously better. But the general rule of thumb, Kerry, we don't want to be for any long period of time beyond a net debt-to-EBITDA ratio of two times. We could go through it, and obviously, we've got lots of covenants, and there's lots of room within the covenants of our facility to do that. But generally speaking, as a rule of thumb of the management team, we think it certainly exceeds commodity prices.

Unknown Executive: [inaudible]

Jason Mark Attew: Would that suggest that we can do a producing asset.

Unknown Executive: Again, it depends on the type of transaction that was done because if you're doing a transaction to get the immediate cash flow.

Unknown Executive: It's obviously.

Unknown Executive: Better, but the general rule of thumb carry we don't want to be for any long period of time beyond our net debt to EBITDA ratio of two times, we could go through it and obviously, we've got lots of covenant.

Unknown Executive: There's lots of room within the covenants of our facilities do that but.

Unknown Executive: Generally speaking the rule of thumb that the management team, we think it certainly at these commodity prices.

Unknown Executive: Two times net debt to EBITDA.

Unknown Executive: Secondly, then we'd be back into as we have been over the course of the last 12 to 18 months, just repay that facility down to the cash flow what are we paying it back through another method I will turn the question with respect to Ireland and tonnage island gold in tonnage the eco speaking out there like that.

Unknown Executive: Yeah, so the distribution of ounces and the relative coverage, we can have a separate conversation if you want to reach out, but there are clues in the most recent technical report in terms of the royalty percentage over time in some of the graphs that they provide. And with respect to the recovery of the Island Gold ores that would go into the Maginot mill, if you listen to the conference calls that were given by Alamos following the announcement of the transaction, this was raised on those calls.

Unknown Executive: Yes.

Unknown Executive: The distribution of ounces on the relative coverage.

Unknown Executive: We can have a separate conversation if you want to reach out.

Unknown Executive: But there are clues and then most recent technical report in terms of the.

Unknown Executive: The royalty percentage with time.

Unknown Executive: The graphs that they provide.

Unknown Executive: And with respect to the recovery of the eye.

Unknown Executive: Island Gold.

Unknown Executive: Or is that would go into the match you know mill.

Unknown Executive: If you listen to the.

Unknown Executive: The conference call that were that were given by almost following the announcement of the transaction.

Unknown Executive: This was raised almost calls on.

Unknown Executive: The process The specific process they use at Maginot and at the Island Gold Mill is the same, so the expectation is that the recovery will be equal. And I expect that Alamos will be highly sensitive to any gold loss, especially if you look at the difference in price and grades there.

Unknown Executive: The process.

Unknown Executive: Specific process to use that as you know and the island gold mill or the same.

Unknown Executive: The expectation is that the recovery will be equal and I expect that almost can be highly sensitive to any goldbach, especially the if you look at the differential and grades there.

Unknown Executive: It's a very sensitive and you'll always have.

Unknown Executive: Beginning period anyway, they will have the opportunity to run that test.

Unknown Executive: Test scenarios and run that.

Unknown Executive: Some of the mill throughput through the existing mill there.

Speaker Change: Yeah, I'm not we're not concerned about that.

Unknown Executive: Mario.

Kerry Smith: Okay. Okay. Thank you.

Kerry Smith: [inaudible] Okay, okay.

Speaker Change: Okay. Okay. Thank you.

Operator: Your next question comes from John Tumazos from John Tumazos's Very Independent Research. Your line is now open.

Kerry Smith: Thanks Sherri next question comes from John Tumazos from John Tumazos, very independent Research. Your line is now open.

John Charles Tumazos: Thank you very much and congratulations on all the progress on so many fronts. I was sort of brainstorming, and I was thinking it would be an interesting package to put up for sale. If you were to bundle all of the Osisko Legacy Royalties together as a package, Karibu Tinti.

John Charles Tumazos: Okay. Thank you very much and congratulations on all the progress on so many fronts.

John Charles Tumazos: Oh, I was sort of brainstorming I was thinking it would be an interesting package to put up for sale.

John Charles Tumazos: If you were to bundle.

John Charles Tumazos: All of the Cisco, where youll see royalties together as a package.

John Charles Tumazos: Caribou tend to.

John Charles Tumazos: Horn 5, Falco, Windfall, and 39.6% of OTV and sell it as a block, as an asset package. It's a nice North American package, a lot of good Canadian gold. And the proceeds would probably all book straight to equity because they're assets that you didn't pay much for that probably aren't on your books for very much. They would probably all be tax-free because you have some accumulated losses, and it would improve the perceptions in the market, and we wouldn't have any more equity losses from ODV. What do you think of that? Jason, would that be a nice way to pay down some debt or fund the stock buyback?

John Charles Tumazos: Horne five VAALCO windfall.

John Charles Tumazos: And the 39, 6% of OTB.

John Charles Tumazos: And sell it as a block as an asset package.

John Charles Tumazos: So a nice north American package monitored Canadian gold.

Jason: And the proceeds.

Jason: We'd probably all book.

John Charles Tumazos: Straight to equity.

Speaker Change: Because they are.

John Charles Tumazos: Such that you didn't pay much for that probably arent on your books for very much.

John Charles Tumazos: Probably I'll be tax free.

John Charles Tumazos: Have some accumulated losses.

John Charles Tumazos: And it would improve the perceptions in the market.

John Charles Tumazos: And we wouldn't have any more equity losses from O D Z.

John Charles Tumazos: Where do you think is that.

John Charles Tumazos: Jason would that be a nice way to pay down some debt or fund the stock buyback.

Jason Mark Attew: John, I appreciate the comments and the color and look. It is obviously a very interesting concept. What I would say, however, is with all the assets that you mentioned, there are obviously some that we really do believe that there are royalties. And it's so tough in this competitive market to actually acquire royalties, but these are some very, very good royalties that we think from a shareholder perspective, which I know you are, it's much better for them to remain in our portfolio.

Speaker Change: John appreciate the comments and the color and obviously, a very interesting concept what I would say however is.

Jason Mark Attew: With all the assets you mentioned, obviously, some we really do believe that there.

Jason Mark Attew: The royalties.

Jason Mark Attew: So tough in this competitive market to actually acquire royalty, but there's some very very good royalties that we think from a shareholder perspective, which I know you have one.

Jason Mark Attew: It's much better for it to remain in our portfolio.

Jason Mark Attew: As I think you're aware, it's very, very rare for royalty companies, streaming companies, to be selling off assets like this, and specifically bundling all the ones that you mentioned. I would argue in this marketplace that we wouldn't get the same value if we just waited and waited until these assets did come on and start generating some very good gold equivalent ounces in the fullness of time. But I appreciate the comments; we are, again, we are very supportive of all the companies that are associated with these companies moving the development forward because we do think in the holdup of time that our Osisko Gold Royalty shareholders will accrue the benefit from it, more so than if we were to essentially monetize it as you suggest today.

Jason Mark Attew: I think year over year aware, very very rare or royalty companies streaming companies selling off assets like this.

Jason Mark Attew: And specifically bundling.

Jason Mark Attew: All the ones that you mentioned.

Jason Mark Attew: I would argue in this marketplace that we wouldn't get the same value that we just patient and wait until these assets do come on and start generating some very good.

Jason Mark Attew: Gold equivalent ounces in the fullness of time.

Speaker Change: But I appreciate the comment.

Jason Mark Attew: We are again, we are very supportive of obviously all the companies that are associated with these companies moving development forward because we do think in the fullness of time, our typical royalty shareholders.

Jason Mark Attew: Accrue the benefit or more so than if we were to potentially monetize that as he said yesterday.

Speaker Change: Thank you.

Jason Mark Attew: Okay.

Operator: Ladies and gentlemen, as a reminder, should you have a question, please press star 1. Your next question comes from Tanya Jakusconek. Your line is now open.

Speaker Change: Ladies and gentlemen, as a reminder, should you have a question. Please press star One. Your next question comes from Kenya, Jacques Cousteau Nick.

Tanya M. Jakusconek: Your line is now open.

Tanya M. Jakusconek: Great, thank you. Good morning everyone. I just wanted to come back to Rob's question on the transactions that are out there and the one to two that you've talked about. Newcrest Sold Assets and or other by Newmont. So first of all, or is it balance sheet repair? Like I'm trying to understand what sort of, you know, deal semantics they are. Yeah, no, thanks.

Tanya M. Jakusconek: Great. Thank you good morning, everyone I just wanted to come back to Ross' question on the transactions that are out there in the one to two that you've talked about.

Tanya M. Jakusconek: Potentially be done this year Jason.

Tanya M. Jakusconek: I'm trying to understand whether it's similar to other deals in the <unk>.

Tanya M. Jakusconek: In the markets, which are either to fund the mind Bill to help buy out some of these new cross sold assets and our other by Newmont. So first of all or is it balance sheet repair like I'm trying to understand.

Tanya M. Jakusconek: What sort of a.

Tanya M. Jakusconek: Deal.

Tanya M. Jakusconek: Symantec they are.

Jason Mark Attew: Yeah, thanks for your question, Tanya. And again, kind of the same overriding comment with Ralph, obviously, all the conversations that we're having are quite confidential.

Speaker Change: Yeah no. Thanks for your question.

Jason Mark Attew: Then kind of the same overriding comment with Ralph obviously, all the conversations that we're in a quite confidential, we'd love to open up and show you the opportunity set because I think it would be quite impressed with it with respect to the type of transaction. So when he probably will youre aware that Q1 was a very quiet period for it.

Jason Mark Attew: We'd love to open up and show you the opportunity set because I think you'd be quite impressed with it. With respect to the type of transactions, though, and you probably were aware that Q1 was a very quiet period for any sort of transactions by not only basically the whole subsector, the whole sector of royalties and extremes, there was really nothing that material, as you know. And so in terms of the type of transactions that we're looking at, you're absolutely on point.

Jason Mark Attew: Any sort of transaction by <unk>.

Jason Mark Attew: Basically the whole sub sector in the whole sector of royalties.

Jason Mark Attew: The strength that we're really nothing material as you know.

Jason Mark Attew: And so in terms of the type of transactions that we're looking at.

Jason Mark Attew: It's transactions for which senior companies are selling assets, and mid-tiers are effectively looking at this as a financing possibility or vehicle to essentially get the funds to bring that into their portfolio, which hopefully will improve the portfolio. There are very few opportunities with respect to balance sheet repair at this point, I would say. Typically, again, if the assets aren't supporting what they're doing currently, unless they have a large portfolio with one asset that's materially better than the others, then we obviously need to structure to ensure that our interests are protected if we're assisting with one of the lesser assets.

Jason Mark Attew: You're absolutely on point as transactions for which senior companies theyre selling assets and mid tier effectively we're looking at.

Jason Mark Attew: Financing.

Jason Mark Attew: Profitability or vehicle data to essentially get the funds to bring that into their portfolio and that hopefully will improve the portfolio.

Jason Mark Attew: There are very few I would say opportunities with respect our balance sheet repair at this point.

Jason Mark Attew: Typically.

Jason Mark Attew: Again, if the assets supporting what they're what they're doing currently unless they have a large portfolio with one asset.

Jason Mark Attew: Yes.

Jason Mark Attew: Materially better than the others and then we ought to be.

Jason Mark Attew: We need to structure to ensure that.

Jason Mark Attew: Our interests are protected.

Jason Mark Attew: So we're not really looking and working on anything with respect to the balance sheet repair. It's more on companies either acquiring good assets that are, for the most part, production assets, or some very high-quality development assets that will come into production within our five-year outlook with very, very competent teams, management teams, and very good heuristics. I think that's all I can say for now, Tanya.

Jason Mark Attew: This thing was one of the lesser of assets. So we're not really looking and working on anything with respect to it.

Speaker Change: <unk> cheap repair more on.

Jason Mark Attew: Companies either acquiring good assets.

Jason Mark Attew: For the most of our production and for some very high quality development assets.

Tanya: Will come into production within our five year outlook with very very competent team management team has been very good jurisdiction I think that's all I can say for now.

Tanya M. Jakusconek: Okay, that's fair enough, and maybe Jason, would you be interested in, let's say, some of the bigger-sized deals that may be syndicated? Would that be of interest to you? If you were syndicated in that 60 to 300 million range that you talked about? Because it's always of interest to us.

Tanya: Okay, that's fair enough and maybe Jason would you be interested in that space. Some of the bigger size deals that may be syndicated would that be of interest to you.

Jason: With syndicated in that $60 million to $300 million range that you talked about.

Jason Mark Attew: It's always of interest to us being the fourth or fifth largest company in terms of public companies, royalties companies out there. If again, we have deep relationships with all our peers. So it's always of interest to do something, but, as you can appreciate, there haven't been that many transactions of that sort or nature done in the past, or for the reasons of, again, if you have a high quality asset, obviously you want to do a transaction that benefits your shareholders as opposed to, you know, sharing the economics with others. That said, we do have some

Speaker Change: As always of interest to us being the fourth or fifth largest company in terms of public companies royalty companies out there.

Jason Mark Attew: If again, we have deep relationships with all of our peers.

Jason Mark Attew: Of interest.

Jason Mark Attew: Do something as you can appreciate though there hasn't been that many transactions so that sort of the nature of that is being done in the past.

Jason Mark Attew: For the reasons that again, if you have a high quality asset obviously, you want to do a transaction that accrues to your shareholders as opposed to <unk>.

Jason Mark Attew: Sharing the economics with others.

Jason Mark Attew: We do have conversations we do like the cards that were open to that concept.

Jason Mark Attew: And we will see where it goes.

Tanya M. Jakusconek: Okay, and then my last question on these transactions, you know, are we looking at sort of your transaction being very simple in structure, i.e., a royalty or a stream? Or should we be thinking that they would be more complicated with equity investments and or debt components? Yeah.

Speaker Change: Okay and then my last question on these transactions.

Tanya M. Jakusconek: Are we looking at.

Tanya M. Jakusconek: So it would be our transaction being very simple in structure.

Tanya M. Jakusconek: E a royalty or a stream or should we be thinking that there would be more complicated with equity investments and our debt component.

Jason Mark Attew: Yeah, that's a great question, Tanya. I would say every opportunity we look at is quite bespoke. There's obviously a set of needs for the partner or the intensity template that we're looking to assist either through a build or through an acquisition. And so we really do focus on the strength of the company, the cash flow of that company, and try to be quite bespoke with respect to how we can assist, whether it's royalties, streams, or equity.

Speaker Change: Yes, Great question Sandy I would say every opportunity we look at it quite bespoke.

Jason Mark Attew: Obviously, a set of needs for the partner the indemnity company.

Jason Mark Attew: We're looking to exit either through a bodybuilder through an acquisition and so we really do focus on the strength of the company to cash flow of that company and trying to be quite the spoke with respect to how do we can assess whether it's a royalty stream equity we do shy away from the debt piece, though that's not really.

Jason Mark Attew: We do shy away from the debt piece, though; that's not really what we consider part of our business. It's nothing that we've contemplated to date. And I would say right now, with the opportunities that we have in front of us, it's nothing that we're going to contemplate in the very near term.

Jason Mark Attew: What we consider part of our business. It's nothing that we've contemplated to date and I would say right now with the opportunities that we have in front of us. It's nothing that we're going to contemplate in the very near term.

Tanya M. Jakusconek: Okay, that's very helpful. Thank you so much and good luck.

Speaker Change: Okay. That's very helpful. Thank you so much and good luck.

Speaker Change: Thanks Tanya.

Tanya M. Jakusconek: Okay.

Operator: Your next question comes from Brian MacArthur with Raymond James. Your line is now open.

Tanya M. Jakusconek: Your next question comes from Brian Macarthur with Raymond James Your line is now open.

Brian MacArthur: Thank you for taking my questions. Just following up on Tanya's question, though. I mean, people talk about these $300M-$400M deals. Can we assume, though, that the majority of that price will be streaming or royalties? I mean, if half of it becomes equity all the time, aren't we getting back into the situation we had before where, you know, the royalty company's own portfolios, but you're probably not going to get the same credit for it. That's it. Thanks, Brian.

Brian MacArthur: Thank you for taking my questions just following up on Tonya's question, though I mean people talk about these three and 400 million dollar deals can we assume though the majority of that price will be.

Brian MacArthur: Premier royalties, if top up it becomes equity all the time arent, we getting back into the situation, we had before where.

Brian MacArthur: The royalty companies owned portfolios, but you're probably not going to get the same credits for it.

Jason Mark Attew: Thanks Brian for the comment. I can only comment on, again, the strategy and how we're going to execute our business. I can't speak for, obviously, our peers and our competitors. What I can tell you is the general point in terms of how we look at things.

Speaker Change: So thanks, Brian for that comment.

Jason Mark Attew: I can only comment on again, the strategy and how we're going to execute our business I can't speak for obviously.

Jason Mark Attew: Peers and our competitors.

Jason Mark Attew: We do not want to be portfolio managers of equity positions going forward. However, as I've said in the past, in certain circumstances for which financing is quite bespoke, it's the last capital in with respect to equity checks, similar to what we did with the CSA transactions that were required for them to acquire the asset from Glencore. But we don't, as usual, want to, again, be portfolio managers that effectively have an equity book.

Jason Mark Attew: I can tell you is the general point.

Jason Mark Attew: In terms of how.

Jason Mark Attew: How we look at things, we do not want to be portfolio managers of the equity position go forward, we will as I've said in the past.

Jason Mark Attew: In certain circumstances for which you're financing is quite bespoke and it's the last capital in with respect to an equity check.

Jason Mark Attew: So what we did with the CSA transactions that was required for them to acquire the asset from from Glencore.

Speaker Change: We don't.

Jason Mark Attew: Eventually want to again be portfolio managers that are effectively have an equity book So it's essentially again.

Jason Mark Attew: So it's essentially, again, as we think about from an Osisko Gold Royalty perspective, the priorities in terms of funding, certainly royalties, streams, and economic interest would be first and foremost. But if some equity is required, and it's got to be the right size, that really assists with a catalyzing event, either being an acquisition or something that really gets a fully financed development asset. We will consider that, and we have in the past, and we will very likely do that in the future.

Jason Mark Attew: We think it both from a physical gold royalty perspective, the priorities in terms of funding.

Jason Mark Attew: Only royalty extreme economic interest would be first and foremost, but if it does become equity is required and it's got to be right sized that really fits with a catalyzing event, either being an acquisition or something that really get fully finance development assets, we will consider that and we have in the past that we have.

Jason Mark Attew: But very likely do that in the future.

Brian MacArthur: Great, thank you for that caller. That's very helpful. Second question is just, I know you mentioned Renard and you know, it's been taken out, but Winsome potentially has a call option to buy this thing, and maybe in the future, it comes back. Do you have any other, I mean, at times you've lent money into them, and do you have anything else that comes back? I mean, if this deal were to close and went forward, would the only thing you have be the 9.6% diamond stream, or are there other claims you might have on some of that money that they put into acquiring Renard if that transaction goes through?

Speaker Change: Great. Thank you for that color. That's very helpful. Second question is just I know you mentioned Bernard and it's been taken up.

Brian MacArthur: When some potentially as a call option to buy this thing and maybe in the future. It comes back do you have any other I mean at times, you've lent money into them and.

Brian MacArthur: Do you have anything else that comes back I mean, if this deal were to close and went for with the only thing you have to be the nine 6% Diamond stream or is there. Other claims you might have on some of that money that they put into acquiring Bernard if that transaction goes through thank you.

Jason Mark Attew: Thanks Brian, excellent question. I'm going to turn it over to Ian. Ian's on the board of Stornoway. He's been living this experience for the last 24 months, so he's probably the best person to comment. Go ahead, Mr. Renard.

Jason Mark Attew: Thank you. Thanks, Brian. Excellent question. I'm going to turn it over to Ian. Ian's on the board of Stornoway. He's been living this experience for the last 24 months.

Brian MacArthur: Thanks, Brian excellent question I'm going to turn it over to Ian.

Jason Mark Attew: He's on the board Stornoway has been living this experienced for the last 24 months.

Ian: So it is probably the best person to comment.

Ian: Go ahead, Mr Reinhardt.

Ian: Yeah, Great question. Thanks.

Ian: In all likelihood that when some transaction materializes.

Jason Mark Attew: The stream will be.

Ian: As part of that transaction and the only proceeds will be the winning some consideration in cash or shares.

Jason Mark Attew: One of them.

Brian MacArthur: Great. Thanks very much for taking my question.

Ian: Great. Thanks, very much for taking my questions.

Ian: Thank you Brian.

Operator: There are no further questions at this time. I will now turn the call over to Jason.

Brian MacArthur: There are no further questions at this time I will now turn the call over to Jason.

Operator: Yes.

Jason Mark Attew: Thank you very much, operator. Again, this concludes our call. Thank you for your attention today and for listening to our Q1 results. Have a good week, everybody.

Jason: Thank you very much operator again this concludes our call. Thank you for your attention today and listening to our Q1 results.

Jason: Midweek everybody.

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

Speaker Change: Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines.

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