Q2 2024 Osisko Gold Royalties Ltd Earnings Call

Speaker Change: Good morning, ladies and gentlemen, and welcome to the Osisko Gold Royalties Q2 2024 Results Conference Call. After the presentation, we will conduct a question and answer session.

Operator: Thank you for joining us on the 2024 RESULTS conference call. After the presentation, we will conduct a question and answer session. If you would like to ask a question during this time, please do so.

Operator: to 2024 Results Conference Call. After the presentation, we will conduct a question and answer section. If you would like to ask a question during this time, please press star one on your telephone keypad.

Speaker Change: If you would like to ask a question during this time...

Operator: Please press star 1 on your telephone keypad. Please note that this call is being recorded today, August 7, 2024, at 10 a.m. Eastern Time. Today on the call, we have Mr. Jason Attew, President and Chief Executive Officer, and Mr. Fredric Ruel, Chief Financial Officer and Vice President of Finance. 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 second quarter of 2024 of Osisko-Ltd. After the presentation, we will proceed to a Q&A session.

Operator: Please note that this call has been recorded today, August 7, 2024, at 10 a.m. Eastern time. Today on the call, we have Mr. Jason Attew, President and Chief Executive Officer, and Mr. Frédéric Ruel, Chief Financial Officer and Vice President, Finance.

Speaker Change: Please press star 1 on your telephone keypad. Please note that this call is being recorded today, August 7, 2024, at 10 a.m. Eastern Time.

Speaker Change: Today on the call we have Mr. Jason Attew, President and Chief Executive Officer, and Mr. Frdric Ruel, Chief Financial Officer and Vice President of Finance. I would now like to turn the meeting over to our host for today's call, Mr. Jason Attew.

Jason Attew: I would now like to turn the meeting over to our host for today's call, Mr. Jason Attew. Good morning, ladies and gentlemen.

Jason Attew: Welcome to the conference of the recent talk, the 2nd trimester of the year, November 24th, to advance the review to school limited. After the presentation, we will proceed to answer the question and answer. If you would like to answer a question, please press star one on your telephone keypad. Please note that this call has been recorded today at 7 a.m. at 10 a.m. Eastern time.

Jason Attew: Hello Ladies and Gentlemen, welcome to the second quarter 2024 earnings conference call of Susco Ltd. After the presentation, we will proceed to a question and answer session.

Speaker Change: If you would like to ask a question, please press star followed by 1.

Speaker Change: Please note that this call is being recorded today from August 7, 10 to 10 p.m. Eastern Time.

Jason Attew: We have the call today, Mr. Jason Attew, President and Chief Executive Officer, and Mr. Frédéric Ruel, Chief Financial Officer and Vice President, Finance. I would like to now turn the meeting over to Mr. Jason Attew. Thank you to all. Good morning, everybody, and thanks for being on today's call on this beautiful summer's day. I'm Jason Attew, President and CEO of the Cisco Gold Royalty. Procedurally, I'll run through the presentation, and then we'll subsequently open up a line for questions. For those participating online via the webcast, you can submit your questions in advance through the webcast platform.

Operator: If you would like to ask a question, please press the star button next to 1. Please note that this call is being recorded today, August 7, from 10 to 10 p.m. Eastern Time. On today's call, we have Mr. Jason Attew, President and CEO, and Mr. Fredric Ruel, CEO and Vice-President of Finance. I would now like to give the floor to your host, Mr. Jason Attew.

Speaker Change: On today's call, we have Mr. Jason Atoo, President and CEO , and Mr. Frédéric Ruel, Chief Financial Officer and Vice President of Finance. I would now like to turn the call over to your host, Mr. Jason Atoo.

Jason Attew: Thank you, Joelle. Good morning everybody, and thanks for being on today's call on this beautiful summer's day. I'm Jason Attew, President and CEO of Osisko Gold Roya. Procedurally, I'll run 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.

Jason Attew: Thank you Joelle. Good morning everybody and thanks for being on today's call on this beautiful summer's day. I'm Jason Attew, President and CEO of Osisko Gold Royalty.

Jason Attew: Procedurally, I'll run through the presentation and then we'll subsequently open up the line for questions.

Speaker Change: For those participating online via the webcast, you can submit your questions in advance through the webcast platform.

Unknown Executive: Today's presentation will also be available and downloadable online through a corporate website.

Jason Attew: Today's presentation will also be available and downloadable online through our corporate website. Please note that there are forward-looking statements in this presentation for which actual results may differ. Also, please note the basis of presentation will be in Canadian dollars unless otherwise noted. I'm joined on the call this morning by Fred Ruel, the company's VP Finance and Chief Financial Officer, amongst others, as indicated on slide 3. When looking at Osisko's second quarter and first six months of 2024, we had a solid first half as it relates to gold equivalent ounces earned, cash margin, cash flows, as well as overall debt reduction.

Speaker Change: Today's presentation will also be available and downloadable online through our corporate website.

Jason Attew: Please note that there are four looking statements in this presentation, for which actual results will be different. Also, please note that the basis of presentation will be in Canadian dollars unless otherwise noted. I'm joined on the call this morning by Frdric Ruel, the company's VP Finance and Chief Financial Officer, amongst the others as indicated on slide three. When looking at a Cisco second quarter and first six months of 2024, we've had a solid first half as it relates to gold equivalent ounces earned, cash margin, cash flows, as well as overall debt reduction. The Cisco earned 20,068 gold equivalent ounces in the second quarter of 2024, which had put us in a good position on June 30th to achieve our previously published full year guidance of 82 to 92,000 Geos.

Jason Attew: Osisko earned 20,068 gold equivalent ounces in the second quarter of 2024, which put us in a good position on June 30th to achieve our previously published full-year guidance of 82,000 to 92,000 GEOs. Revenues for the period were strong in Q2 at $64.8 million, mainly due to improving precious metal prices throughout the period. In addition, Osisko's cash margins remained high at 97% during the quarter. Cisco ended the first quarter with $65.7 million in cash, and net debt has now been reduced to just over $40 million after the company continued to pay down its revolving credit facility during the period.

Speaker Change: Please note that there are four looking statements in this presentation for which actual results may differ.

Speaker Change: Also, please note the basis of presentation will be in Canadian dollars unless otherwise noted.

Speaker Change: I'm joined on the call this morning by Fred Ruel, the company's VP Finance and Chief Financial Officer, amongst the others as indicated on slide 3.

Speaker Change: When looking at Osisko's second quarter and first six months of 2024, we've had a solid first half as it relates to gold equivalent ounces earned, cash margin, cash flows, as well as overall debt reduction.

Speaker Change: Osisko earned 20,068 gold equivalent ounces in the second quarter of 2024.

Speaker Change: which had put us in a good position on June 30th to achieve our previously published full year guidance.

Speaker Change: of 82,000 to 92,000 geos.

Jason Attew: Revenues for the period were strong in Q2 at 64.8 million, butchers mainly by improving precious mental prices throughout the period. In addition, the Cisco's cash margins remained high at 97% during the quarter. Cisco ended the first quarter with 65.7 million in cash, and net debt has now been reduced to just over 40 million after the company continued to pay down its revolving credit facility during the period. So far, in Q3, the company has repaid an additional 13.8 million on the facility, further increasing the financial flexibility in order to be able to transact new, creative opportunities as they present themselves.

Speaker Change: Revenues for the period were strong in Q2 at $64.8 million, buttressed mainly by improving precious metal prices throughout the period.

Speaker Change: In addition, Osisko's cash margins remained high at 97% during the quarter.

Speaker Change: Osisko ended the first quarter with $65.7 million in cash and net debt has now been reduced to just over $40 million after the company continued to pay down its revolving credit facility during the period.

Jason Attew: So far, in Q3, the company has repaid an additional $13.8 million on the facility, further increasing 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 its quarterly dividend of six and a half cents per share in Qt. Marking its 39th consecutive dividend with over $290 million return to shareholders to date from these distributions. Subsequent to the quarter, Cisco's Board of Directors approved a Q3 dividend of $0.065 per common share, payable on October 15, 2024, to shareholders of record as of the close of business on September 28.

Speaker Change: So far, in Q3, the company has repaid an additional $13.8 million on the facility, further increasing their financial flexibility in order to be able to transact new accretive opportunities as they present themselves.

Jason Attew: With respect to our ongoing commitment to return capital to shareholders, the company declared and paid its quarterly dividend of six and a half cents per share in Q2, marking its 39th consecutive dividend, with over 290 million returned to shareholders to date from these distributions. Subsequent to the quarter, Osisko's board of directors approved a Q3 dividend of six and a half cents per common share, payable on October 15th, 2024, to shareholders of record as of the close of business on September 20th. 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 meaningful deal across the line this year, over and above a recently announced Cascabell gold stream.

Speaker Change: With respect to our ongoing commitment to return capital shareholders, the company declared and paid its quarterly dividend of $0.065 per share in Q2.

Speaker Change: Marking its 39th consecutive dividend with over 290 million return to shareholders to date from these distributions.

Speaker Change: Subsequent to the quarter, Cisco's Board of Directors approved a Q3 dividend of $0.065 per common share, payable on October 15, 2024, to shareholders of record as of the close of business on September 20.

Jason Attew: With respect to our opportunity set, the company's pipeline continues to remain robust, with a corporate development team busier than they have ever been. We remain optimistic that we will get at least one meaningful deal across the line this year, over and above the recently announced Kaskabell Gold Stream. Moving on to the company's financial performance for Q2. Quarterly revenue is effectively tracked higher year over year due to strong commodity prices when compared to Q2 of 2023, which is also partially offset by fewer geos versus the same period last year.

Speaker Change: With respect to our opportunity set, the company's pipeline continues to remain robust.

Speaker Change: with our corporate development team busier than they have ever been.

Speaker Change: We remain optimistic that we will get at least one meaningful deal across the line this year, over and above our recently announced Cascavel Gold Stream.

Jason Attew: Moving on to the company's financial performance for Q2, quarterly revenue is effectively tracked higher year over year due to strong commodity prices when comparing to Q2 of 2023, which is also partially offset by fewer deals versus the same period last year. The net loss of 11 cents per basic common share for the period was due entirely to our decision to take a full non-cash impairment charge of 67.8 million or 49.9 million net income taxes on the EGLE NSR royalty based on our own internal assessment of the current facts and circumstances. And of course, as more information continues to surface, especially as it relates to timelines associated with the potential restart of the operation and resumption of precious metal deliveries to Osisko under its royalty agreement, a reassessment of the recoverable amount of the EGLE royalty will be performed at that time, which may lead to a reversal of part or all of the impairment loss that has been recognized.

Speaker Change: Moving on to the company's financial performance for Q2, quarterly revenue is effectively tracked higher year-over-year due to strong commodity prices.

Speaker Change: Q2 of 2023, which is also partially offset by fewer GEOs versus the same period last year.

Jason Attew: The net loss of $0.11 per basic common share for the period was due entirely to our decision to take a full non-cash impairment charge of $67.8 million, or $49.9 million net of income taxes, on the Eagle NSR Royal, based on our own internal assessment of the current facts and circumstances.

Speaker Change: The net loss of $0.11 per basic common share for the period was due entirely to our decision to take a full non-cash impairment charge of $67.8 million.

Speaker Change: or $49.9 million net of income taxes on the Eagle NSR royalty.

Speaker Change: Based on our own internal assessment of the current facts and circumstances.

Jason Attew: And, of course, as more information continues to surface, especially as it relates to timelines associated with the potential restart of the operation and resumption of precious metal deliveries to Osisko under its royalty agreement. A reassessment of the recoverable amount of the Eagle Royalty will be performed at that time, which may lead to a reversal of part or all of the impairment loss that has been recognized. Most importantly, Q2 2024 saw a year-over-year improvement in both cash flow per share at $0.28 versus $0.26 last year, as well as quarterly adjusted earnings of $0.18 per basic common share versus $0.15 in the comparative quarter of 2023.

Speaker Change: And of course, as more information continues to surface, as especially as it relates to timelines associated with the potential restart of the operation and resumption of precious metal deliveries to Osisko under its royalty agreement.

Speaker Change: A reassessment of the recoverable amount of the Eagle Royalty will be performed at that time.

Speaker Change: which may lead to reversal of part or all of the impairment loss that has been recognized.

Jason Attew: Most importantly, Q2 2024 saw a year-over-year improvement in both cashflow per share at 28 cents versus 26 cents last year, as well as a quarterly adjusted earnings of 18 cents per basic common share versus 15 cents in the comparative quarter of 2023. During the second quarter of 2024, the company had 20 producing assets, including the EGLE mine, which was producing up until the suspension of operations on June 24, 2024. Our Geo's earned come predominantly from Canada, and we derived over 98 percent of our Geo's from precious metals. Gold had just under 71 percent and silver at 28 percent, with the remainder coming from other metals.

Jason Attew: During the second quarter of 2024, the company had 20 producing assets, including the Eagle Mine, which was producing up until the suspension of operations on June 24, 2024. Our G.O.s earned come predominantly from Canada, and we derived over 98% of our G.O. from precious metals, gold at just under 71% and silver at 28%, with the remainder coming from other metals.

Speaker Change: Our G.O.s earned come predominantly from Canada and we derived over 98% of our G.O.s from precious metals.

Speaker Change: Gold at just under 71% and silver at 28% with the remainder coming from other metals.

Jason Attew: Some comments on some specific mind performances during the quarter before speaking about a couple of our more material assets in greater detail. Canadian Marlartic had yet another extremely impressive first half of 2024, with Igniko booking strong quarterly production from the mine in the second quarter. The asset remains the Cisco's most significant contributor to Geo's, Gurned by a solid margin. Performance for Victoria Gold Eagle Mine, during the second quarter of 2024, was significantly short of her budgeted expectations, to the tune of about 33%. In other words, even prior to the Heapleach facility failure on June 24, Eagle was already underperforming through the first half of the year.

Jason Attew: I will make some comments on some specific mine performances during the quarter before speaking about a couple of our more material assets in greater detail. Canadian Malarctic had yet another extremely impressive first half of 2024, with IGNICO booking strong quarterly production from the mine in the second quarter. The asset remains Osisko's most significant contributor to GEOs earnings by a solid margin. However, performance for Victoria Gold Eagle Mine during the second quarter of 2024 fell significantly short of its budgeted expectations, to the tune of about 33%. In other words, even prior to the heap leach facility failure on June 24th, EGLE was already underperforming through the first half of the year.

Speaker Change: Some comments on some specific mind performances during the quarter before speaking about a couple of our more material assets in greater detail.

Jason Attew: It is our understanding that Victoria Gold Roya reporting is Q2 2024 on August 8. So, in the absence of additional information, it is our assumption that the mine will not provide us any geo deliveries in 2024. At Capstone's Mantos Blankos operation, Q2 production was lower year over year due to lower grades and recoveries. Plant upgrades to reach 20,000 tons per day on a sustainable basis are progressing, despite an approximate two-month delay relative to Capstone's prior plan due to longer equipment lead times. Cisco expects to see the benefit of the increased throughput in its silver deliveries, starting in the beginning of 2025.

Jason Attew: It is our understanding that Victoria Gold reporting is due for 2024 on August 8. In the absence of additional information, it is our assumption that the mine will not provide us any geodeliveries in 2024. At Capstone's Mantos Blancos operation, Q2 production was lower year over year due to lower grades and recovery.

Jason Attew: Plant upgrades to reach 20,000 tons per day on a sustainable basis are progressing, despite an approximate two-month delay relative to Capstone's prior plan due to longer equipment lead times. Osisko expects to see the benefit of increased throughput in its silver deliveries starting in the beginning of 2025. As I mentioned earlier, the number of currently producing assets in our portfolio stands at 20. Changes to the list include the removal of EGLE, partially offset by the addition of G Mining Ventures' Tocantinzino mine in Brazil, which announced its first gold pour in early July, as well as Agnico Eagle's Akasava West Satellite operation at its Gold Expo.

Cisco: Osisko expects to see the benefit of the increased throughput in its silver deliveries starting in the beginning of 2025.

Jason Attew: As I mentioned earlier, the number of currently producing assets in a portfolio stands at 20. Changes to the list include the removal of Eagle, partially offset by the addition of G-Mining Ventures Tocatanzino mine in Brazil, which announced its first goal for an early July, as well as Igniko Eagles, Akasavil West satellite operation at its Goldex mine. On the latter, Cisco received its first payment from Igniko in July, whereas on Tocatanzino, the first payment from G-Mining is expected in November, based on a two-month lag associated with the royalty payments as structured in the contract. This current list of 20 assets also count CSA is only one single operating asset.

Jason Attew: On the latter, Osisko received its first payment from Agnico in July, whereas on Tocatenzino, the first payment from G-Mining is expected in November, based on a two-month lag associated with the royalty payments as structured in the contract. This current list of 20 assets also counts CSA as only one single operating asset.

Cisco: As I mentioned earlier, the number of currently producing assets in our portfolio stands at 20.

Cisco: Changes to the list include the removal of EGLE, partially offset by the addition of G Mining Ventures' Tocantinzino mine in Brazil.

Cisco: which announced its first gold pour in early July, as well as Agnico Eagle's Akosaba West satellite operation at its Gold X mine.

Cisco: This current list of 20 assets also counts CSA as only one single operating asset.

Jason Attew: However, as you all know, we have two instruments associated with a mine: a hundred percent silver stream, in addition to our now economically effective copper stream. With the copper stream having provided its first deliveries to Cisco in early July of this year.

Jason Attew: However, as you all know, we have two instruments associated with the mine, a 100% silver screen in addition to our now economically effective copper screen, with the Copper Stream having provided its first deliveries to Osisko in early July. Moving on to slide 8. Our company continues to distinguish itself from the rest of its relevant peers as it relates to jurisdictional exposure. Osisko is the leader when it comes to both NAV and GOs earned from what Osisko defines as Tier 1 mining jurisdictions, which include Canada, the United States, and Australia. Of note is that if we were to add Chile to that list of countries, we'd be at over 95.

Cisco: With the Copper Stream having provided its first deliveries to Osisko in early July of this year.

Jason Attew: Moving on to slide eight, our company continues to distinguish itself from the rest of its relevant peers as it relates to jurisdictional exposure. Cisco is the leader when it comes to both Nav and Geo's earned from what Cisco defines as tier one mining jurisdictions, which include Canada, the United States, and Australia. Of no, is that if we were to add Chile to that list of countries, we'd be at over 95 percent.

Cisco: Moving on to slide 8.

Cisco: Of note, is that if we were to add Chile to that list of countries, we'd be at over 95%.

Jason Attew: This brings me to slide nine, which provides highlights on the recently announced Cascabal Gold Screen trends action with partnership with Franklin Nevada. As noted in her July 15th press release, Osisko believes that Cascabell is a world-class copper gold project that has the potential to become a multi-generational mine. This new stream investment, which complements Osisko's existing royalty on Cascabell, further enhances Osisko's pure leading growth profile at a very attractive rate of return. In terms of when we expect to receive Geos from this investment, Solobold has guided to production in the 2030s, which falls outside our five-year outlook.

Jason Attew: This brings me to slide 9, which provides highlights on the recently announced Cascabel Gold Stream transaction with SolGold in partnership with Franco Nevada. As noted in her July 15th press release. Osisko believes that Caskabel is a world-class copper-gold project that has the potential to become a multi-generational mine. This new stream investment, which complements Osisko's existing royalty on Cascabel, further enhances Osisko's peer-leading growth profile at a very attractive rate of return. In terms of when we expect to receive GEOs from this investment, SolGold has guided to production in the 2030s, which fall outside our five-year outlook.

Cisco: This brings me to slide 9, which provides highlights on the recently announced Cask of Elk Gold Stream transaction with SolGold in partnership with Franco-Nevada.

Cisco: In terms of when we expect to receive GEOs from this investment, SolGold has guided to production in the 2030s.

Jason Attew: However, once in production, the Cascabell stream is expected to contribute approximately 23,000 gold equivalent ounces per year for the first 10 years of the initial 28-year mine life of mine. It should be additionally pointed out that this mine life is based on only 18 percent of the measured and indicated mineral resource of the Alpala deposit. We are very encouraged to see that Solobold recently signed an exploitation contract with the Government of Ecuador. This serves as another indicator that the current administration is providing and Cascabell remains a top priority project within the country. As noted previously, on a Geos-earned basis, it was yet another stellar first half of the year for a most important asset.

Jason Attew: However, once in production, the Castwell stream is expected to contribute approximately 23,000 gold equivalent ounces per year for the first 10 years of the initial 28-year life of the mine. It should be additionally pointed out that this mine life is based on only 18% of the measured and indicated mineral resource of the Alpalla deposit.

Cisco: However, once in production, the Castwell stream is expected to contribute approximately 23,000 gold equivalent ounces per year for the first 10 years of the initial 28-year life of mine.

Cisco: It should be additionally pointed out that this mine life is based on only 18% of the measured and indicated mineral resource of the Alpalla deposit.

Jason Attew: This served as another indicator that the current administration is pro-mining and Cascabel remains a top priority project within the country. As noted previously, on a GEOs earned basis, it was yet another stellar first half of the year for our most important half, as impressive progress continues to be made on the Odyssey Underground Project. While I won't spend too much time on the following two slides, I wanted to flag some language on slide 11.

Cisco: This served as another indicator that the current administration is pro-mining and Cascadal remains a top priority project within the country.

Cisco: It was yet another stellar first half of the year for our most important asset.

Jason Attew: As impressive progress continues to be made on the Odyssey Underground project.

Cisco: As impressive progress continues to be made on the Odyssey Underground Project.

Jason Attew: While I won't spend too much time in the following two slides, I wanted to flag some language on slide 11. As evidenced by a second quarter report in subsequent conference call, Igniko Eagle continues to talk more and more comfortably about the potential for a future shaft number two for the Odyssey underground mine. Factoring in some basic assumptions and based on publicly released information from Igniko, a Cisco estimates that a potential second shaft could add approximately 15,000 gold equivalent ounces to a Cisco gold royalties annually, over and above what is expected from the most recently published mine plan, all from the early 2030s onwards and at no additional cost to a Cisco for shareholders.

Speaker Change: While I won't spend too much time on the following two slides, I wanted to flag some language on slide 11.

Jason Attew: As evidenced by a second quarter report and subsequent conference call, Ignico Eagle continues to talk more and more comfortably about the potential for a future shaft number two for the Odyssey Underground Mine. Factoring in some basic assumptions and based on publicly released information from IGNICO. Osisko estimates that a potential second shaft could add approximately 15,000 gold equivalent ounces annually over and above what is expected from the most recently published mine data, all from the early 2030s onwards and at no additional cost to Osisko or its shareholders.

Speaker Change: As evidenced by a second quarter report and subsequent conference call, Ignico Eagle continues to talk more and more comfortably about the potential for a future shaft number 2 for the Odyssey underground mine.

Speaker Change: Osisko estimates that a potential second shaft could add approximately 15,000 gold equivalent ounces

Speaker Change: All from the early 2030s onwards, and at no additional cost to Osisko or its shareholders.

Jason Attew: With 40,000 tons of Latin milk capacity still expected, that the Canadian market complex from 2028 onwards, Igniko has now officially made reference to a fill the milk strategy, with additional information on this likely to follow in the coming years.

Jason Attew: With 40,000 tons of Latin mill capacity still expected in the Canadian malarctic complex from 2028 onwards, IGNICO has now officially made reference to a fill-the-mill strategy, with additional information on this likely to follow in the coming years.

Speaker Change: with additional information on this likely to follow in the coming years.

Jason Attew: Next slide please, slide 12. And it is that the Mallarchic story for Cisco wasn't exciting enough. Just last week, Igniko Eagle provided a comprehensive update on its Upper Beaver project in Ontario. Our operating partner announced a positive internal valuation for standalone mine and milk scenario at the project. Igniko Eagle believes that Upper Beaver has a potential to produce an annual average of approximately 210,000 gold ounces and 36,600 tons of copper, with initial production possible as early as 2030. What does this mean for Osisko? Again, based on the information provided, we estimate that Upper Beaver could result in an average of approximately 4,500 gold equivalences earned based on our 2% NSR royalty on the projects.

Speaker Change: Next slide please, slide twelve.

Jason Attew: And as if the malarkey story for Osisko wasn't exciting enough, just last week Ignico Eagle provided a comprehensive update on its Upper Beaver project in Ontario. Our operating partner announced a positive internal valuation for a standalone mine and mill scenario at the project. Nico Eagle believes that Upper Beaver has the potential to produce an annual average of approximately 210,000 gold ounces.

Agnico Eagle: Agnico Eagle believes that Upper Beaver has the potential to produce an annual average of approximately 210,000 gold ounces and 3,600 tons of copper.

Jason Attew: 3,600 tons of copper, with initial production possible as early as 2030. What does this mean for Osisko? Again, based on the information provided, we estimate that Upper Beaver could result in an average of approximately 4500 gold equivalent ounces earned, based on our 2% NSR royalty on the project.

Speaker Change: What does this mean for Osisko?

Speaker Change: Again, based on the information provided, we estimate that Upper Beaver could result in an average of approximately 4500 gold equivalent ounces earned based on our 2% NSR royalty on the project.

Jason Attew: We were also delighted to hear that Ignico has now committed over US$ 200 million over the next three years to further de-risk the project and collect the necessary bulk samples prior to the final project approval.

Jason Attew: We were also delighted to hear that IGNICO has now committed over U.S. $200 million over the next three years to further de-risk the project and collect the necessary bulk samples prior to final project approval. Now on slide 13 and touching briefly on CSA.

Jason Attew: Now on slide 13, in touching briefly on CSA, first delivery under the CSA copper stream to Osisko was made in the first week of July for a total of 74 tons of copper or approximately 300 Geos. Further to this, just last week, metals acquisition limit and now some very impressive drill results, which serve to underpin Osisko's original thesis that significant exploration potential exists across their land package.

Jason Attew: The first delivery under the CSA copper stream to Osisko was made in the first week of July for a total of 74 tons of copper or approximately 300 geos. Further to this, just last week, Metals Acquisition Limited announced some very impressive drill results, which served to underpin Osisko's original thesis. Significant Exploration Potential exists across their land package. Moving on to slide 14. As we all know, and as I stated earlier, on June 24th, Victoria Gold announced that the Heat Bleach facility at its Eagle Gold Mine in the Yukon Territory had experienced a failure.

Speaker Change: Further to this, just last week, Metals Acquisition Ltd. announced some very impressive drill results.

Jason Attew: Moving on to slide 14, as you all know, and as I stated earlier, on June 24, Victoria Gold announced that the Heatleach facility had its Eagle Gold line in the Yukon Territory that experienced a failure. Production remains suspended and has stated previously absent new information, Osisko's assumption is that the mine will not resume production in 2024. Osisko has now taken the appropriately conservative step to recognize a full non-cash impairment loss of 67.8 million, or 49.9 million net of income taxes, based on our management team's assessment of the current facts and circumstances. There is any key takeaway from this slide is that Osisko has various protections with respect to its royalty, including security over the property, the registered interest in land reported within the Yukon Territory, and an interpreter agreement with the Senior Lending Syndicate.

Speaker Change: Moving on to slide 14.

Speaker Change: As you all know and as I stated earlier, on June 24th, Victoria Gold announced that the Heat Bleach facility at its Eagle Gold line in the Yukon Territory had experienced a failure.

Jason Attew: Production remains suspended, and as stated previously, absent new information, Cisco's assumption is the mine will not resume production in 2020. Osisko has now taken the appropriately conservative step to recognize a full non-cash impairment loss of $67.8 million, or $49.9 million net of income tax.

Speaker Change: Production remains suspended and as stated previously, absent new information, Cisco's assumption is the mine will not resume production in 2024.

Speaker Change: Osisko has now taken the appropriately conservative step to recognize a full non-cash impairment loss of $67.8 million.

Jason Attew: Based on our management team's assessment of the current facts and circumstances, any key takeaway from this slide is that Osisko has various protections with respect to its royalty, including security over the property, registered interest in land recorded within the Yukon Territory, and an inter-creditor agreement. Senior Lending.

Speaker Change: for $49.9 million net of income taxes.

Speaker Change: Based on our management team's assessment of the current facts and circumstances.

Speaker Change: including security over the property.

Speaker Change: registered interest in land recorded within the Yukon with Yukon Territory

Jason Attew: At this time, these various layers of protection provide Osisko with confidence that our rights will continue upon a restart of the Eagle Mine. As a secured creditor, we will continue to monitor the situation closely and provide further updates to the market as warranted. Prior to the Heatleach facility failure at Victoria Gold's Eagle Mine, Osisko was tracking well with regard to its previously published 2024 DO delivery guidance range of 82 to 92,000 gold equivalent ounces. However, under our assumption, a production at Eagle remains suspended through to the end of 2024. The company has decided to adjust its 2024 DO delivery guidance to 77 to 83,000 gold equivalent ounces.

Jason Attew: At this time, these various layers of protection provide Osisko with confidence that our rights will continue upon a restart of the Eagle Mine. As a secured creditor, we will continue to monitor the situation closely and provide further updates to the market as warranted. Prior to the Heat Bleach Facility failure at Victoria Gold's Eagle Mine, Osisko was tracking well with regard to its previously published 2024 DO delivery guidance range of 82,000 to 92,000 gold equivalent ounces. However, under our assumption that production at EGLE will remain suspended through to the end of 2020.

Speaker Change: At this time, these various layers of protection provide Osisko with confidence that our rights will continue upon a restart of the Eagle Mine.

Speaker Change: As a secured creditor, we will continue to monitor the situation closely and provide further updates to the market as warranted.

Speaker Change: Prior to the heap leach facility failure at Victoria Gold's Eagle Mine, Osisko was tracking well with regard to its previously published 2024 DO delivery guidance range of 82,000 to 92,000 gold equivalent ounces.

Speaker Change: However, under our assumption that production at EGLE will remain suspended through to the end of 2024.

Jason Attew: The company has decided to adjust its 2024 geo delivery guidance to 77 to 83,000 gold equivalent ounces. I have already provided additional context on this call as it relates to EGLE's underperformance versus our budget expectations for the first half of the year, and this should also help further explain why we made these adjustments. Additionally, with surge capacity equipment at Capstone's Mentos Blancos having been installed two months later than originally scheduled.

Jason Attew: I have already provided additional context on this call as it relates to Eagle's underperformance versus our budget expectations for the first half of the year, and this should also help further explain why we made this adjustment. Additionally, with surge capacity equipment at capstones, mentors, blanks, and Osisko Gold. Having been installed two months later than originally scheduled. We took a further step in making some cautionary adjustments to our budget as it relates to the second half deliveries we are expecting from Capstone Copper. Our investing companies continue to make great strides in derisking their assets that will accrue to our shareholders.

Speaker Change: I have already provided additional context on this call as it relates to EGLE's underperformance versus our budget expectations for the first half of the year.

Speaker Change: And this should also help further explain why we made these adjustments.

Speaker Change: Additionally, with surge capacity equipment at Capstone's Mentos Blancos having been installed two months later than originally scheduled.

Jason Attew: We took a further step in making some cautionary adjustments to our budget as it relates to the second half deliveries we are expecting from Capstone Copper. Our investing companies continue to make great strides in derisking their assets, which will accrue to our shareholders. Highlights of some of these efforts are provided on slides 16 and 17. We've already discussed many of these on previous slides of this presentation, so there is no need for me to add anything here today. That said, I would still suggest you take the time to go through the impressive list yourself.

Speaker Change: We took a further step in making some cautionary adjustments to our budget as it relates to the second half deliveries we are expecting from Capstone Copper.

Speaker Change: Our investing companies continue to make great strides in de-risking their assets that will accrue to our shareholders.

Jason Attew: Highlights of some of these efforts are provided on slide 16 and 17. We've already discussed many of these already on previous slides of this presentation, so no need for me to add anything here today. That said, I would still suggest you take the time to go through the impressive list yourself.

Speaker Change: Highlights of some of these efforts are provided on slides 16 and 17.

Speaker Change: We've already discussed many of these already on previous slides of this presentation, so no need for me to add anything here today.

Jason Attew: And if you have any questions or would like to further discuss any of the remaining line items highlighted on these two pages, I encourage you to reach out to my colleagues here at Osisko for more information.

Jason Attew: And if you have any questions or would like to further discuss any of the remaining line items highlighted on these two pages, I encourage you to reach out to my colleagues here at Osisko. Moving to slide 18, which outlines the current state of Osisko's balance sheet. At quarter end, we had total debt of just under $110 million, and net debt of only $43 million, which compares to net debt of just under $250 million in the comparative quarter of 2023.

Speaker Change: and if you have any questions or would like to further discuss any of the remaining line items highlighted on these two pages.

Jason Attew: Moving to slide 18, which outlines the current state of Osisko's balance sheet. At quarter end, we had total debt of just under 110 million, net debt of only 43 million, which compares the net debt of just under 250 million in the comparative quarter of 2023. Our focus on being responsible capital allocators is using our cash flow from operating activities and redeploying it in the form of paying down or revolving debt facility, which here today is over 101 million, 87.8 million in Q1 and Q2, and 13.8 million subsequent to quarter end. Also subsequent to quarter end, we made a US$10 million payment to Seoul Gold as a first installment under the Gold Stream Agreement to further advance the Cascuel Project in Ecuador.

Speaker Change: Moving to slide 18, which outlines the current state of Osisko's balance sheet.

Speaker Change: At quarter end, we had total debt of just under $110 million, net debt of only $43 million, which compares to net debt of just under $250 million in the comparative quarter of 2023.

Jason Attew: Our focus on being responsible capital allocators is using our cash flow from operating activities and redeploying it in the form of paying down a revolving debt deficit, which year-to-date is over $100,000 million, 87.8 million in Q1 and Q2, and $13.8 million subsequent to quarter end. Also, subsequent to quarter ends, we made a U.S. $10 million payment to SolGold as a first installment under the GoldStream Agreement to further advance the Caskwell project in equity.

Speaker Change: and redeploying it in the form of paying down a revolving debt facility.

Speaker Change: which year-to-date is over a hundred and one million.

Speaker Change: 87.8 million in Q1 and Q2.

Speaker Change: and 13.8 million subsequent two-quarter ants.

Jason Attew: In addition, as mentioned in last quarter's conference call, if commodity prices, specifically gold and silver, remain above the US $2400 and US $27 respectively, we forecast to end up in a net cash position by the end of the year. That, of course, is absent of any material acquisitions of royalties or streams we make during that period. This is important, as even though we've already made an announcement on a key transaction regarding Cascabell, as Cisco's corporate development team remains busier than ever, with the hope of getting more deals across the line for a year end, and our much improved balance sheet provides a company with a financial capacity and flexibility to continue its strategy of discipline allocation in the pursuit of high quality, free to have precious metals, streams, and royalties that will bolster the company's current and near-term, old equivalent ounce deliveries and cash lows that should accrue to our shareholders benefit.

Jason Attew: In addition, as mentioned in last quarter's conference call, if commodity prices, specifically gold and silver, remain above U.S. $2400 and U.S. $27, respectively, we forecast to end up in a net cash position by the end of the year. That, of course, is absent any material acquisitions of royalties or streams we make during that period.

Speaker Change: In addition, as mentioned in last quarter's conference call, if commodity prices, specifically gold and silver, remain above the U.S. 2400 and U.S. 27 dollars, respectively,

Speaker Change: We forecast to end up in a net cash position by the end of the year.

Speaker Change: That, of course, is absent of any material acquisitions of royalties or streams we make during that period.

Jason Attew: This is important as even though we've already made an announcement on a key transaction regarding Cascade, Osisko's corporate development team remains busier than ever, with the hope of getting more deals across the line before year end. 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, free of precious metal streams and royalties, that will bolster the company's current and near-term gold equivalent ounce deliveries and cash flows that should accrue to our shareholders' benefit.

Speaker Change: This is important as even though we've already made an announcement on a key transaction regarding Kaskabel.

Speaker Change: Osisko's corporate development team remains busier than ever.

Speaker Change: With the hope of getting more deals across the line before year-end.

Speaker Change: And our much improved balance sheet provides the company with the financial capacity and flexibility to continue its strategy.

Speaker Change: of Disciplined Allocation in the pursuit of high-quality, free of precious metal streams and royalties that will bolster the company's current and near-term gold equivalent ounce deliveries and cash flows that should accrue to our shareholders' benefit.

Jason Attew: Finally, I would like to take the opportunity to welcome our newest board member, Ms. Wendy Lui. We believe will be a tremendous contributor to our company going forward. Wendy brings a wealth of experience in resources and commercial and accounting matters from her impressive career credentials, from Duke Energy, Ernst and Young, Hacklett, Gold Corp, and most recently. Sabina. And with that, I'd like to thank everyone for listening today.

Jason Attew: Finally, I would like to take the opportunity to welcome our newest board member, Ms. Wendy Lui, who we believe will be a tremendous contributor to our company going forward. Wendy brings a wealth of experience in resources and commercial and accounting matters from her impressive career credentials in Duke Energy, Ernst & Young, Tekla, Goldcorp, and most recently, Savina.

Speaker Change: Finally, I would like to take the opportunity to welcome our newest board member, Ms. Wendy Louie, who we believe will be a tremendous contributor to our company going forward.

Speaker Change: Wendy brings a wealth of experience in resources and commercial and accounting matters from her impressive career credentials from Duke Energy, Princeton Young, Tekla, Goldcorp, and most recently Savina.

Jason Attew: And with that, I'd like to thank everyone for listening today. We will now open up the line for questions, as well as questions posted on the web. We don't get to all the questions on the line, but we'll make sure to respond offline to those we don't get to cover on this webcast. Thank you.

Operator: We will now open up the line for questions, as well as questions posted on the webcast. We don't get all the questions on the line. We'll make sure to respond offline to those who don't get to cover on this webcast. Thank you for your time, Operator. Thank you, ladies and gentlemen.

Speaker Change: And with that, I'd like to thank everyone for listening today. We will now open up the line for questions.

Speaker Change: as well as questions posted on the webcast.

Speaker Change: We don't get to all the questions on the line. We'll make sure to respond offline to those we don't get to cover on this webcast. Thank you for your time. 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. If you wish to decline from the polling process, please press star followed by the 2. If you are using a speakerphone, please lift the handset before pressing any.

Operator: We will now begin the question and answer session. Should you have a question, please press star followed by the one on your touchstone 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 the two. If you are using a speaker phone, please lift the hands up before pressing any keys. One moment, please. Fear first question.

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.

Speaker Change: You will hear a prompt that your hand has been raised.

Speaker Change: Thank you. Bye-bye.

Speaker Change: Should you wish to decline from the polling process, please press star followed by the 2. If you are using a speakerphone, please lift the handset before pressing any keys.

Operator: One moment, please, for your first question. The first question comes from Ralph. Ralph: Profiti with a capital. Your line is now open.

Ralph Profiti: Your first question comes from Ralph Fidzi with eight capital. Your line is now open. Thanks, operator. And thanks for taking my questions. Jason, this syndication at Cascabell at 30%. You know, was there a desire to do more? How much of that, you know, sort of discretion was driven by the desire for things like dry powder or balancing country exposure? Just wondering how you tackled some of those thresholds and criteria. Yeah, thanks for the question, Ralph. Look, obviously, and doing a syndicated deal with the Park Room at Franklin, Nevada. A lot of people had, including myself, going back to my banking days to talk about having syndicated deals and why they make the most amount of sense.

Speaker Change: One moment please for your first question.

Speaker Change: Your first question comes from Ralph.

Speaker Change: Profiti with a capital, your line is now open.

Ralph Profiti: Thanks, operator. And thanks for taking my questions. Jason. This syndication at Caskabel at 30%, you know, was there a desire to do more? How much of that, you know, sort of discretion was driven by the desire for things like dry powder or, or balancing?

Ralph Profiti: Thanks operator and thanks for taking my questions.

Speaker Change: The syndication at Caskabel at 30% you know was there a desire to do more how much of that

Speaker Change: You know sort of discretion was driven by the desire for things like dry powder or or Balancing country exposure just wondering how you tackled some of those thresholds and criteria

Jason Attew: Yeah, thanks for the question, Ralph. Look, obviously, doing a syndicated deal with a partner like Franco Nevada, a lot of people, including myself, going back to my banking days, have talked about having syndicated deals and why they make the most sense. So look, the 30% level, we can tell you, was a negotiated level. We do think the Cascavel project is a world-class asset. In fact, it is also, as you know, Franco-Nevada has a royalty, as we do, a higher royalty than we do, and so it really came down to proportional interest both in the royalty as well as in our interest working with Franco to give the Sobol team the amount of proceeds that they were looking for, obviously $750 million, the bulk of which will be provided to them on the construction decision or construction. And these Cominterns don't have a judgment. Obviously, it was a negotiation, and we clearly have a relationship with Sovo.

Jason Attew: is

Speaker Change: Yeah, thanks for the question, Ralph. Look, obviously, doing a syndicated deal with a partner like Franco Nevada, a lot of people, including myself, going back to my banking days, has talked about having syndicated deals and why they make the most amount of sense.

Jason Attew: So look, the 30% level we can tell you was a negotiated level. We do think the Cascabell project is a world-class asset. The fact is also, as you know, Franklin, Nevada has a royalty. As we do, a higher royalty than we do. And so it really came down to proportional interest, both as a royalty. As well as, you know, we are interested in working with Franco to give the civil team the amount of proceeds that they were looking for, obviously 750 million, which the bulk of it will be provided to them on the construction decision, construction decision by either themselves or if they are not the operator that time is operating at the time.

Speaker Change: So look, the 30% level we can tell you was a negotiated level. We do think the Kaskovel project is a world-class asset.

Speaker Change: The fact is also, as you know, Franco-Nevada has a royalty as we do, a higher royalty than we do, and so it really came down to proportional interest both in the royalty as well as...

Speaker Change: In our interest working with Franco to give the Sobol team the amount of proceeds that they were looking for, obviously 750 million, which the bulk of it will be provided to them on the construction decision or construction.

Speaker Change: decision by either themselves or if

Jason Attew: So, look, obviously it was a negotiation. We got a relationship clearly with Seoul. We got a relegated relationship with Franco. We are quite comfortable with Ecuador as the jurisdiction. The fact is, as you know, the way that the deal was structured with Franco is we have a number of off-ramps here. So, if the country which we do believe is very pro-lining with President Ebola right now, we do think he likely will be quite successful in the elections in 2025. But for whatever reason that does not happen, and we see Ecuador not being as good as a jurisdiction for reminding the development of the cascabell, we have a number of off-ramps, as you are very aware.

Speaker Change: They are not the operator at the time, whoever is operating at the time. So, look, obviously it was a negotiation.

Speaker Change: We've got a relationship clearly with Sobel, we've got a relationship with Franco, we're quite comfortable with Ecuador as a jurisdiction.

Speaker Change: The fact is, as you know, the way that the deal was structured with Franco is we have a number of off-ramps here. So if the country, which we do believe is very pro-mining with President Navoa right now, and we do think he likely will be quite successful in the elections,

Speaker Change: In 2025, but for whatever reason that does not happen and we see Ecuador not being as good as it should be.

Speaker Change: We are in the process of establishing a jurisdiction for mining the development of Cassafil. We have a number of offerings as you are very well aware. That's how we've staged and structured the transactions. So right now we are obviously quite comfortable with the direction.

Jason Attew: That's how we've staged and structured the transactions. So, right now we are obviously quite comfortable with the direction we are very pro-lining. and in the particular province, we think Soulgold is doing a very good job in terms of ensuring we have a social license and doing all the right things from a community level. But, as I said, we still very much value our key to one jurisdiction.

Jason Attew: This transaction is very pro-mining in the particular province. We think Sogol is doing a very good job in terms of ensuring that they have a social license and doing all the right things from a community level. But as I said, we still very much value our, as I keep saying, our tier one jurisdictions. So we're actually looking to do more transactions.

Speaker Change: Very pro-mining in the particular province.

Speaker Change: We think Skoll Gold is doing a very good job in terms of ensuring they have a social license and doing all the right things from a community level.

Speaker Change: But, as I said, we still very much value our, as I keep saying, our Tier 1 jurisdictions.

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Ralph Profiti: We are actually looking to do more transactions that will actually have a bit more of a balance in Canada, the US, and Australia going forward. But we are very pleased with the transaction that we are able to do with Soulgold, and obviously the partnership that we have with Franco. Yeah, I appreciate that, Clara. It does make sense.

Speaker Change: So we are actually looking to do more transactions that will actually have a bit more of a balance in Canada, the U.S. and Australia go forward, but we're very, very pleased with the transaction that we were able to do with SolGold and obviously the partnership that we have with Franco.

Jason Attew: Keeping on the theme of transactions, you mentioned that Cascabell in the 2030s puts it beyond the five-year guidance. Just wondering if you look at this deal pipeline that you had talked about before you ran and perhaps beyond. Are you at liberty to talk about how much of those opportunities are within the five-year guidance, or the majority outside of it? That's a great question, Ralph. Obviously, there are a lot of opportunities, and every one of our peers has probably heard very, very busy from corporate development and the technical services that they basically employ to go look at these opportunities.

Speaker Change: Yeah, I appreciate that, Clary. It does make sense.

Speaker Change: Keeping on the theme of transactions, you mentioned that Cascabel in the 2030s puts it beyond the five-year guidance. Just wondering if you look at sort of this deal pipeline that you had talked about before your end and perhaps beyond, are you at liberty to talk about how much of those opportunities are within the five-year guidance or is the majority outside of it?

Jason Attew: That's a great question, Ralph. Look, obviously, there are a lot of opportunities, and every one of our peers is a pro.

Ralph Profiti: That's a great question, Ralph. Look, obviously, there are a lot of opportunities and every one of our peers, as you probably heard, are very, very busy from both corporate development and the technical services that they do.

Ralph Profiti: at the end of the day.

Jason Attew: I would say that, again, our preference in terms of our strategy is obviously to have transactions that fit within our five-year outlook. That said, there are some very quality assets, development assets in particular, that there's a long gestation to actually get into production and ramp up that would sit outside of it. But strategically, I've talked to my board with what a corporate development team is doing. Really, the focus is doing transactions within that five-year outlook, but we're not going to ignore, again, a high-quality opportunity that sits outside the five-year outlook, because that obviously sets the company up for the future to go forward.

Ralph Profiti: basically employ to go look at these opportunities. I would say that again our preference in terms of our strategy is obviously have transactions that fit within our five-year outlook.

Ralph Profiti: That said, there are some very quality assets.

Ralph Profiti: Development asks us in particular that there's a long gestation to actually get into production and ramp up that would sit outside of it.

Speaker Change: But strategically, what I've talked to my board with and what the corporate development team is doing, really the focus is doing transactions within that five-year outlook, but we're not going to ignore, again, a high-quality opportunity that sits outside

Speaker Change: 5-Year Outlook, because that obviously sets the company up for the future to go forward. But we're very, very busy and so, you know, as I mentioned on the call, we're hoping we can get one of these opportunities done before year-end that would fit within the 5-Year Outlook.

Ralph Profiti: But we're very, very busy, and so, as I mentioned on the call, we're hoping we can get one of these opportunities done before your end that would fit within the five-year outlook. Great. Thank you, Jason. Thanks. Thanks, Carl.

Jason Attew: Great. Thank you, Jason. Great. Thank you. Thanks, Ralph.

Joshua Wolfson: Your next question comes from Josh Wilson with RBC Capital Markets. Your line is now open. Yes, thanks very much. First question I have is on the EGLE impairment to zero.

Operator: Your next question comes from Josh Wilson with RBC Capital Markets. Your line is now open.

Jason Attew: Your next question comes from Josh Wolfson with RBC Capital Markets. Your line is now open.

Josh Wilson: Thanks very much. First question I have is on

Josh Wilson: The Eagle impairment to zero. I'm wondering, is there any read through here on the potential recoverability of any value to the company? And is there any risk that the royalty would not survive a solvency related event for the operator?

Jason Attew: I'm wondering, is there any read-through here on the potential recovery ability of any value to the company, and is there any risk that the royalty would not survive a solvency-related event for the operator? You know, look, obviously, in L.F. red comments in a second. Obviously, we took the decision specifically because we just don't have the visibility right now as to when the restart is going to happen. There's obviously a lot of work that Victoria Goldstein is doing specifically around containment, specifically around the water quality with respect to the sign-up sampling that you're doing, and specifically with respect to remediation.

Jason Attew: You know, look, obviously, and I'll let Fred comment in a second. Obviously, we took the decision.

Josh Wilson: Yeah, look, obviously, and I'll let Fred comment in a second. Obviously, we took the decision.

Jason Attew: Specifically because we just don't have the visibility right now as to when a restart is going to happen. There's obviously a lot of work that the Victoria Gold team is doing specifically around containment, specifically around the water quality with respect to the Sinai sampling that they're doing, and specifically with respect to the remediation. Any sort of restart obviously will require a permit from the Ugandan government, plus, as you can appreciate, there's an element with respect to the First Nations groups that they will have to get approval and get a license there.

Fred Ruel: Specifically because we just don't have the visibility right now as to when a restart is going to happen.

Speaker Change: There's obviously a lot of work that the Victoria Gold team is doing specifically around containment, specifically around the water quality with respect to the cyanide sampling that they're doing, and specifically with respect to the remediation.

Jason Attew: Any sort of restart, obviously, will require permits from the UN government plus those that you can appreciate. Here's an element with respect to the first need. and some of the organizations groups that they will have to get an approval on and can get a social license there. We thought of what's prudent at this point to write down the 67 million that I mentioned and change that I mentioned just because we don't have that specifically as of yet. We do think, obviously, you know, the big resource out there is very important for the youth on territory in terms of employment. That are things that, you know, depending on the situation, that there is a strong possibility that the money is up and running in a research we just don't have visibility as of yet.

Speaker Change: Any sort of restart obviously will require a permit.

Speaker Change: From the Ugandan government, plus as you can appreciate, there is an element with respect to the First Nations groups that they will have to get an approval and get a social license there.

Jason Attew: We thought it was prudent at this point to write down the 67 million that I mentioned and the change that I mentioned, just because we don't have that visibility as yet. We do think, obviously, it's a big resource out there, very important for the Yukon Territory in terms of employment and other things that... You know, depending on the situation, that there is a strong possibility that the mine is up and running in a reset. We just don't have visibility as yet.

Speaker Change: We thought it was prudent at this point to write down the 67 million that I mentioned.

Speaker Change: v1väh 3d T4T uhm just because we don't we don't have that visibility as of yet we do think obviously you know the big resource up there very important for the Yukon territory in terms of employment other things that

Speaker Change: You know depending on the situation that there is a strong possibility that the mine is up and running in a reset. We just don't have visibility as of yet.

Jason Attew: With respect to the question in an insolvency situation, I think, as I mentioned on the call, the fact that, again, we've got security with the asset, the fact that we're registered in the UConn, as well as we've got strong inter creditor support within those agreements. We think there's obviously a very strong case when this is up and going. If it goes through insolvency, that, again, our rights will be affected, our rights and the royalty and the geopolitical and else deliveries. If it does take some time here, that again, we certainly have all the protections necessary.

Jason Attew: With respect to the question in an insolvency situation, I think, as I mentioned on the call, the fact that, again, we've got security with the asset, the fact that we're registered in the Yukon, as well as we've got strong interpredator support within those agreements, we think there's obviously a very strong case when this is up and running, through insolvency, that, again, our rights will be affected, our rights and the royalty and the geode equivalent ounce deliveries If it does take, you know, some time here, we certainly have all the protections necessary. Maybe I'll ask Fred if he wants to comment further.

Speaker Change: with respect to the question in an insolvency situation.

Speaker Change: I think, as I mentioned on the call, the fact that, again, we've got security with the asset, the fact that we're registered in the Yukon.

Speaker Change: As well as we've got strong interpredator support within those agreements. We think there's obviously a very strong case when this is up and going, if it goes.

Speaker Change: Through insolvency that, again, our rights will be affected, our rights and the royalty and the geo-equivalent ounce deliveries.

Speaker Change: If it does take, you know, some time here, that again, we certainly have all the protections necessary. Maybe I'll ask Fred if he wants to comment further.

Frdric Ruel: Maybe I'll ask Fred if he wants to comment further. No, thank you, Josh, for the question. It's purely in accounting. It's purely related to accounting and applying accounting rules and regulations here, based on information that we have as of today. And depending on how things go in the future months and quarters, what we have says on a poorly basis is if a reversal of impairment might be possible based on new information that might be provided by the company.

Frdric Ruel: Thank you, Josh, for the question. It's purely related to accounting and applying accounting rules and regulations here based on information that we have as of today. And depending on how things go in the future months and quarters, we'll reassess on a quarterly basis if a reversal of impairment might be possible based on new information that might be provided by the company.

Josh Wilson: Got it. Thank you.

Fred Ruel: Thank you, Josh, for the question. It's purely related to accounting and applying accounting rules and regulations here based on information that we have as of today.

Fred Ruel: And depending on how things go in the future months and quarters, we'll reassess on a quarterly basis if a reversal of impairment might be possible based on new information that might be provided by the company.

Joshua Wolfson: Thank you. And then extending this sort of uncertainty to what the future impact could be. I understand the company updated 2024 guidance. There was no comment on what the long-term guidance implications are. Is there any sensitivity you can provide us with what the impact is of the loss of eagle to the five-year guide? Yeah, looks a great question. We've also received a question by webcast similarly. I think, obviously, Josh, it's early days. Obviously, the facility failed on June 24th. We're talking to everything we can to essentially we can contain what's happened. Sure, that from an environment perspective, there's no long term for damage.

Jason Attew: And then extending this sort of uncertainty to what the future impact could be. I understand the company updated its 2024 guidance, but there was no comment on what the long-term guidance implications are. Is there any sensitivity you can provide us with, you know, what the impact is of the loss of EGLE on the five-year guide?

Speaker Change: Thank you. And then extending this sort of uncertainty to what the future impact could be. I understand the company updated 2024 guidance. There was no comment on what the long term guidance implications are.

Speaker Change: Is there any sensitivity you can provide us with, you know, what the impact is of the loss of Eagle to the five-year guide?

Jason Attew: Yeah, looks like a great question. We've also received a question from a webcast similarly. I think, Josh, it's early days. Obviously, the facility failed on June 24th.

Speaker Change: Yeah, look, it's a great question. We've also received a question by a webcast similarly. I think, obviously, Josh, it's early days. Obviously, the facility failed on June 24th.

Jason Attew: Victoria is doing everything it can to essentially contain what's happened, and ensure that from an environmental perspective, there's no long-term damage. So I think it's clearly in the early innings of what's going to happen here. As stated before, we just don't have the visibility of a restart plan. According to Victoria, and I encourage you to listen to their call this week, we are a number of weeks away from being able to provide a concrete plan that could or could not get regulatory approval and the social license that I talked about.

Speaker Change: Victoria is doing everything they can to essentially begin containing what's happened.

Speaker Change: Ensure that from an environment perspective, there's no long-term damage.

Jason Attew: So I think it's purely in the early innings of what's going to happen here, as stated before. We just don't have the visibility on the restart plan. And according to Victorian, I encourage you to listen to their call this week. There are a number of weeks away. from PTPP, you know, being able to provide a concrete plan that could not be a regulatory proof and the social license that I talked about. There's lots of work to be done in the remediation, being different. I just think it's too early at this point to suggest that we come out of our five-year-old lesson.

Speaker Change: So I think it's clearly in the early innings of what's going to happen here.

Speaker Change: As stated before, we just don't have the visibility on the restart plan. According to Victoria, and I encourage you to listen to their call this week, there are a number of weeks away from being able to provide...

Victoria: a concrete plan that could or could not get regulatory approval and the social license that I talked about. There's lots of work to be done in the remediation team in France.

Jason Attew: There's lots of work to be done in the remediation campaign ahead. I just think it's too early at this point to suggest that would come out of our five-year outlook. We do think that. Thank you.

Victoria: I just think it's too early at this point to suggest that wouldn't come out of our five-year OPUPS. We do think that, um, that obviously...

Jason Attew: Do you think that, obviously, they've got significant goals that they've proved up through the various mutations, mineral reserves, and resources. There is also, you know, the story, the reason, well, they have identified secondary complete facilities at what point we come in on later in our line life. So there's a lot of positive attributes that could suggest that this mine will be restarted. We just have no concept or visibility; clarity of direction at this point has to be timing. Really, we can only get that from big four-year-olds. Taking their direction.

Jason Attew: And obviously, they've got...

Jason Attew: They've got significant gold that they've picked through the various locations, mineral reserves, and resources. There is also, if you know the story reasonably well, they have identified a secondary heat leach facility that was going to come in later in the mine life. So there are a lot of positive attributes that could suggest that this mine will be restarted. We just have no concept or visibility, or clarity of direction at this point as to the timing. Really, we can only get that from Victoria Gold. Thank you for taking the direction.

Speaker Change: They've got significant gold that's better.

Speaker Change: They've crewed up through the various locations to get mineral reserves and resources. There is also, if you know the story reasonably well, they have identified a secondary heat bleach facility that was going to come in later in the limelight.

Speaker Change: So, there's a lot of positive attributes that.

Speaker Change: We just have no concept or visibility or clarity of direction at this point as to the timing. Really, we can only get that from Victoria Gold taking their direction.

Jason Attew: And sorry, one final question on the long-term guide. I can't recall if this was included or not, but for ODEV and their financial status, was Caribou included in the existing five-year guidance, or was that something that was incorporated after that period? Great question.

Joshua Wolfson: I'm sorry, one final question on the long term guide. I can't recall if this was included or not, but, you know, for ODEV and their financial status, was Caribou included in the existing five-year guidance, or was that something that was incorporated after that period? Great question.

Speaker Change: One final question on the long-term guide. I can't recall if this was included or not, but for ODEV and their financial status, was Caribou included in the existing five-year guidance or was that something that was incorporated after that period?

Jason Attew: That's a great question. It was not included in our five-year oath. Got it. Thank you.

Jason Attew: It was not included in our five-year-old lesson. Got it. Thank you.

Speaker Change: Great question. It was not included in our five-year outlook.

Speaker Change: Got it. Thank you.

John Tumazos: Your next question comes from John Tomazzo. Your line is now open. Thank you. Sometimes the big royalty streaming companies say the first dollar is the last.

Operator: Your next question comes from John Tumazos. Your line is now open.

Speaker Change: Your next question comes from John Tumazos. Your line is now open.

John Tomazo: Thank you.

John Tumazos: Sometimes the big royalty streaming companies say the first dollar is the last. Jason, could you? Give us your views of the pros and cons of that. Before you came on board, Osisko had made a lot of efforts trying to get Ficks, Renard Diamonds, and Amulsar in Armenia, and the different things in ODV, and uh... Would you contribute good money after bad? When something blows up, would you fire the guy that originated the deal? Just what is your attitude toward trying to fix things or when to move on?

Speaker Change: Sometimes the big royalty streaming companies say the first dollar is the last.

John Tumazos: Jason, could you give us your views of the pros and cons of that?

Jason Attew: Before you came on board of Cisco, had a lot of efforts trying to fix regard diamonds and animals are in Armenia and the different things in ODEV. Would you contribute good money after bad? When something blows up, would you fire the guy that originated the deal? Just what is your attitude toward trying to fix things or when to move on? Look, John, obviously, I think you're probably, you know, talking through some of the issues. Now, obviously, heightened with the Victoria Gold facility failure. Obviously, you know, the team works very, very hard to identify opportunities that we think will accrue to shareholders.

Speaker Change: Before you came on board, Osisko had a lot of efforts trying to...

Jason Attew: Look, John, obviously, I think you're probably talking through some of the issues and now, obviously, heightened with the Victoria Gold facility failure. Obviously, you know, the team works very, very hard to identify opportunities that we think will accrue to shareholders. We didn't anticipate this happening, and there's obviously been some other assets that haven't proven up to the expectations. With respect to going forward, I mean, we've got a very, very strong technical team.

Jason Attew: We didn't anticipate this happening, and there's obviously been some other assets that haven't proven up to yet expectations.

Speaker Change: We didn't anticipate this happening and there's obviously been some other assets that haven't proven up to Yen expectations.

Jason Attew: What's respected to going forward? I mean, we've got a very, very strong technical team. We've upgraded our technical team. And so we are going to be making investments go forward. We're going to be making investments based on, again, the information that we have that we think is going to be a creative to shareholder's go forward. In terms of looking at, you know, some of the historical legacy assets. Yes, we did a full portfolio review. Yes, we've come to views as to which ones we should fund and which ones we should fund. We should not fund go forward.

Speaker Change: With respect to going forward, I mean we've got a very very strong technical team. We've upgraded our technical team since I joined.

Jason Attew: We've upgraded our technical team since I joined, and so we are going to be making investments going forward. We're going to be making investments based on, again, the information that we have that we think is going to be accretive to shareholders going forward. In terms of looking at some of the historical legacy assets, yes, we did a full portfolio review. Yes, we've come to views as to which ones we should fund and which ones we should not fund going forward.

Speaker Change: And so we are going to be making investments go forward. We're going to be making investments based on, again, the information that we have, that we think is going to be accretive to shareholders go forward.

Speaker Change: In terms of looking at, you know, some of the historical legacy assets.

Speaker Change: Yes, we did a full portfolio review, yes.

Speaker Change: We've come to views as to which ones we should fund and which ones we should not fund go forward.

Jason Attew: I think I've conveyed that, you know, the opportunities that on new opportunities far away is the opportunities that we see currently in terms of investing in the current portfolio that require additional capital. A lot of our portfolio, the 185 assets, as you know, require no additional costs. There's no contingent costs associated with it. In our preference for all the companies out there, if we've made an investment through a royalty or a stream, they should be going out and sourcing other financing and not relying on an incremental royalty or a stream that could burden the asset to the point where, again, their set of equity holders, if they're public, is disadvantaged.

Jason Attew: I think I've conveyed that the opportunities that new opportunities far outweigh the opportunities that we see currently in terms of investing in a current portfolio that requires additional capital. A lot of our portfolio, the 185 assets, as you know, require no additional cost. There's no contingent cost associated with it. Our preference for all the companies out there, if we've made an investment through a royalty or a stream, is that they should go out and source other financing and not rely on an incremental royalty or stream that could burden the asset to the point where, again, their set of equity holders, if they're public, is disadvantaged.

Speaker Change: I think I've conveyed...

Speaker Change: That, you know, the opportunities that are new opportunities far away.

Speaker Change: The opportunities that we see currently in terms of investing in the current portfolio that require additional capital, a lot of our portfolio, the 185 assets.

Speaker Change: As you know, requiring no additional costs. There's no contingent costs associated with it.

Speaker Change: You know, our preference for all the companies out there, if we've made an investment through a royalty or a stream, is they should be going out and sourcing other financing and not relying on an incremental royalty or stream that could burden.

Speaker Change: the asset to the point where, again, their set of equity holders, if they're public, is disadvantaged. So I'll answer that question long-winded way, but we do think that there's a really good opportunity set on a case-by-case basis.

Jason Attew: So I'll answer that question in a long-winded way, but we do think that there's a really good opportunity set on a case-by-case basis. We have additionally, from a governance perspective, set up, as I think we've talked about, an investment committee, which is some commercial and technical folks on our board, that we have to obviously pass that date before we are allowed to deploy any further. So there's an additional level of governance with respect to, again, our investments into assets that assist Google royalties.

Jason Attew: So I'll answer that question in a long-winded way, but we do think that there is a really good opportunity to do that on a case-by-case basis. We have additionally, from a governance perspective, set up, as I think we've talked about, an investment committee, which is some commercial and technical folks on our board, that we have to obviously pass that gate before we are allowed to and deploy any further capital, so there's an additional level of governance with respect to our investments in assets at Osisko Gold Royal.

Speaker Change: We have, additionally, from a governance perspective, set up, as I think we've talked about, an investment committee, which is some commercial and technical folks on our board, that we have to obviously pass that gate before we are allowed to.

Speaker Change: deploy any any further capital. So there's an additional level of governance with respect to, again, our investments into assets at Osisko Gold Royalties.

Jason Attew: Jason, if I could follow up, there's a hedge funder to a friend of mine that, whenever someone in the team originates an idea, they give them a quarter of the performance fee from that idea. And the idea is tagged to a specific person. Do you think having a bunch of committees dilutes responsibility, and is it better whether the pros and cons of committee responsibility versus originator responsibility on your team? Does the way it ends to that, John, the committee is really set up for oversight from an oversight perspective. Plus, as you can appreciate, we've got technical folks that can really pull apart or take a look at through a lens that maybe some of our technical folks haven't looked at, but really to assure us, because, again, we are, as I'd like to say, we're effectively pricing risk for our shareholders or risk managers.

John Tumazos: Jason, if I could follow up. There's a hedge fund or two friends of mine that, whenever someone in the team originates an idea, they give them a quarter of the performance fee from that idea. And the idea is tagged to a specific person. Do you think having a bunch of committees Dilutes Responsibilities, and is it better? What are the pros and cons of committee responsibility versus. Originator Responsibility?

Speaker Change: Jason, if I could follow up.

Jason Attew: They give them a quarter of the performance fee from that idea and the idea is tagged to a specific

Jason Attew: Person.

Jason Attew: dilutes responsibility and is it better, what are the pros and cons of committee responsibility versus?

Jason Attew: originator responsibility on your team.

Jason Attew: So the way to answer that, John, is the committee is really set up for oversight, from an oversight perspective, plus, as you can appreciate, we've got technical folks that can really pull apart or take a look at things through a lens that maybe some of our technical folks haven't looked at, but really to assure us. Because, again, we are, as I like to say, effectively pricing risk for our shareholders or risk managers on behalf of our shareholders.

Jason Attew: So the way it ends to that John is the committee is really set up for oversight from an oversight perspective plus as you can appreciate we've got technical folks that can really pull apart or to take a look at through a lens that maybe some of our technical folks have haven't looked at but really to assure us

Jason Attew: So, on behalf of our shareholders, with respect to compensation as it relates to origination of opportunities, we can say we don't have that philosophy here. As I've talked through with yourself and many others, we have tweaked our compensation for the senior executives, which is really in the long term. Our long term incentive pay is very much driven by a per share metrics, specifically cash flow per share, growth in cash flow per share, and growth in net asset value per share. So, as we move forward and we continue to make investments, we are hoping we're making investments that increase our cash flow per share, increase our net per share, because, as you know, there's a very strong correlation if we can do this to shareholder performance.

Speaker Change: pricing risk for our shareholders, or risk managers on behalf of our shareholders. With respect to compensation, as it relates to origination of opportunities, we can say we don't have that philosophy here at Osisko.

Jason Attew: With respect to compensation, as it relates to origination of opportunities, we can say we don't have that philosophy here at SSI. As I've talked through with you and many others, we have tweaked our compensation for the senior executives, which is really about the long term. Our long-term incentive pay is very much driven by per share metrics, specifically cash flow per share, growth in cash flow per share, and growth in net asset value per share.

Speaker Change: As I've talked through with yourself and many others, we have tweaked our compensation for the senior executives.

Speaker Change: which is really in the long-term, our long-term incentive pay is very much driven by per share metrics, specifically cash flow per share, growth in cash flow per share, and growth in net asset value per share.

Jason Attew: So, as we move forward and we continue to make investments, we are hoping we're making investments that increase our cash flow per share, increase our NAV per share, because, as you know, there's a very strong correlation if we can do this for shareholders. So, to answer the question, there are no specific origination fees that are payable for our team. We are very much a team, and we're very much driven. Top of mind for anything that we do from an investment perspective is, will this increase our cash flow per share, as well as our net asset value per share? And again, these are quantitative metrics that our committee will determine when they're compensating the executive.

Speaker Change: So, as we move forward and we continue to make investments.

Speaker Change: We are hoping we're making investments that increase our cash flow per share, increase our NAV per share, because as you know, there's a very strong correlation, if we can do this, to shareholder performance.

Jason Attew: So, to answer the question, there are no specific origination fees that are payable for our team. We are very much a team, and we're very much driven and top of mind for anything that we do from an investment perspective. Is will this increase our cash flow per share, as well as our net asset value share? And again, these are quantitative metrics that our complicity will determine when they're compensating the executive team.

Speaker Change: So, to answer the question, there is no specific origination.

Speaker Change: These that are payable for our team. We are very much a team and we're very much driven and top of mind for anything that we do from an investment perspective

Speaker Change: will this increase our cash flow per share as well as our net asset value share and again these are quantitative metrics that our comp committee will determine when they're compensating the executive team.

John Tumazos: How old are other people? I have a chance. Good luck to us. Thanks, John.

Operator: I'll let other people have a chance. Good luck, Jason.

Speaker Change: I'll let other people have a chance. Good luck, Jason.

Tanya Jakusconek: Your next question comes from Tanga. Jacqueous Koneck with Gosha Bank. Your line is now open. Okay, great. Thank you so much for taking my questions. Good morning, everybody.

Operator: Your next question comes from Tanya Jakusconek with Scotiabank. Your line is now open.

Jason Attew: Thanks, John .

Jason Attew: Your next question comes from Tanya Jakusconek with Scotiabank. Your line is now open.

Tanya Jakusconek: Okay, great. Thank you so much for taking the time to answer my questions. Good morning, everybody. I just wanted to circle back on that 2028 guidance and not to beat this to death, but would it be fair to assume that within that 120,000 to 135,000 GEOs, that about 9,000 would have been equal goals, and we'd more likely be towards the lower end of the range than the upper, just so that we can benchmark ourselves.

Tanya: Okay, great. Thank you so much for taking my questions. Good morning, everybody. I just wanted to circle back on that 2028 guidance and not to be

Tanya Jakusconek: I just wanted to circle back on that 2028 guidance and not to be, you know, just to death, but would it be fair to have assumed that within that 120 to 135,000 Geos at about 9,000 would it be in that equal goal? And we'd more likely be towards the lower end of the range than the upper, just so that we can benchmark ourselves. So that's a great question, Tanga. Thanks for participating this morning. So yes, 9,000 was approximately what we were budgeting. Again, you can get it from Victoria Gold. Obviously, production guidance for 2024 per year.

Tanya: Would it be fair to assume that within that 120,000-135,000 GEOs, that about 9,000 would have been equal goals and we'd more likely be towards the lower end of the range than the upper? Just so that we can benchmark ourselves.

Jason Attew: So it's a great question, Tanya, and thanks for participating this morning. So, 9,000 was approximately what we were budgeting. And again, you can get it from Victoria Gold's, obviously, production guidance for 2024 per year. And so, if you actually, you know, forecast that forward, it wouldn't be somewhere around that number. All that said, though, as I mentioned, we give our five-year outlook and our five-year guidance in February. I think it's far too early at this stage. Information is still coming in specifically on that asset to know whether or not, almost four and a half years out, whether it will be contributions from the Eagle Mine in particular.

Tanya: So it's a great question, Tanya, and thanks for participating this morning.

Speaker Change: So, yes, 9000 was approximately what we were budgeting. Again, you can get it from Victoria Gold's, obviously, production guidance for 2024 per year.

Jason Attew: And so if you actually, you know, forecast that forward, it would be somewhere around that number. All that said, though, as I mentioned, we give our five-year outlook and our five-year guidance in February. I think it's far too early at this stage. This information is still coming in specifically with that asset to know whether or not, you know, almost four and a half years out. Whether it be contributions from the Eagle Mine in particular. And so we haven't changed our five-year outlook. We just don't have the information to make that adjustment. And when, if we do get that information, obviously, we'll let the market know.

Speaker Change: And so if you actually, you know.

Speaker Change: forecast that forward it would be somewhere around that number.

Speaker Change: All that said, though, as I mentioned, we give our five-year outlook and our five-year guidance in February . I think it's far too early at this stage. Information is still coming in, specifically with that asset, to know whether or not, you know,

Speaker Change: Almost four and a half years out, whether it be contributions from the Eagle Mine in particular.

Jason Attew: And so we haven't changed our five-year outlook. We just don't have the information to make that adjustment. And if we do get that information, obviously, we'll let the market know, but probably in February when we put out our annual guidance for 2025, as well as their updated five-year outlook.

Speaker Change: and and so we haven't changed our five-year outlook.

Speaker Change: We just don't have the information to make that adjustment, and if we do get that information, obviously we'll let the market know, but very likely in February when we put out our annual guidance for 2025, as well as their updated five-year outlook.

Jason Attew: But very likely in February, when we put our annual guidance for 2025, as well as their updated five-year outlook. Okay, fair enough.

Tanya Jakusconek: Fair enough. Maybe just moving on then on to just finish off on the transaction front. I know on the last conference call, you talked about one or two meaningful transactions. And now, Jason, you mentioned that there's one more meaningful transaction for 2024 you hope to get done by year end. Are we still talking about that $50 to $300 million range? And are we still talking about a syndicated transaction, or are you still looking at just the extreme deal?

Tanya Jakusconek: And maybe just moving off, then on to just to finish off on the transaction front. I know the last conference call you had talked about one or two meaningful transactions. And now, Jason, you mentioned that there's one more meaningful for 2024. You hope to get done by your end. Are we still talking that 50 to 300 million range? And are we still talking as syndicated transaction or is it, are you still looking at just the extreme deal? Great question, Tanya. Look, I think we have just on the syndication front, we have a very good blueprint now of what we can do as a disco gold royalties working with partners like Frank and some of the other senior royalty and stream players.

Speaker Change: Okay, fair enough.

Speaker Change: I'm maybe just moving off then on to just to finish off on the transaction front. I know the last conference call you had talked about one or two meaningful transactions and now Jason you mentioned that there's one more meaningful.

Speaker Change: For 2024 you hope to get done by year-end. Are we still talking that $50 to $300 million range, and are we still talking a syndicated transaction, or are you still looking at just a stream deal?

Jason Attew: Great question, Tanya. Look, I think we have a very good blueprint now of what we can do as Osisko Gold Royalties, working with partners like Franco and some of the other senior royalty and stream players. So yes, I'm still a big believer in syndicated deals. Yes, we are looking at large, chunky acquisitions of the magnitude that you've mentioned. We are also looking at, obviously, some smaller ones that we do think will be a creative way to reach our shareholders go forward.

Speaker Change: Great question, Tanya. Look, I think we have, just on the syndication front, we have a very good blueprint now of what we can do as Osisko Gold Royalties.

Speaker Change: Working with partners like Franco and some of the other senior Royalty and Stream players. So yes, I'm still a big believer in syndicated deals.

Jason Attew: So yes, I'm still a big believer in syndicated deals. Yes, we are looking at large, chunky acquisitions in the magnetism attitude that you've mentioned. We are also looking at, obviously, some smaller ones that we do think will be a creative tool to our shareholders going forward. Nothing is guaranteed, obviously. The team is working very hard to close some of the business issues that we may have on. Again, a very important, meaningful transaction that will really set the company up and go forward. But yes, we are looking at transactions anywhere from US $50 million all the way up to $300 million US dollars, and some of them syndicated and some not.

Speaker Change: Yes, we are looking at large, chunky acquisitions in the magnitude that you've mentioned.

Speaker Change: We are also looking at obviously some some smaller ones that we do think will be a creative to to to our shareholders go forward You know, nothing is guaranteed. Obviously the team is working very hard to

Jason Attew: You know, nothing is guaranteed, obviously, the team is working very hard to, you know, close some of the business issues that we may have on, again, a very important, meaningful transaction that will really set the company up to go forward. But yes, we are looking at transactions anywhere from US $50 million all the way up to $300 million, some of them syndicated in.

Speaker Change: you know, close some of the business issues that we may have on, again, a very important meaningful transaction.

Speaker Change: That will really set the company up and go forward, but yes, we are looking at transactions anywhere from US $50 million all the way up to US $300 million.

Speaker Change: and some of them syndicated and some not.

Tanya Jakusconek: Okay, that's helpful, and that just comes to my next question with respect to, I mean, if this is the case and we're looking for this sort of size deal coming towards the end of the year, can I assume, you know, we're getting this debt down quite quickly? Can I assume then return to shareholders, capital allocation, you know, we had thought perhaps, you know, looking at maybe, you know, you know, share buyback, would that be out of your range in terms of being able to also take that on in addition to

Jason Attew: Okay, that's helpful and not just come to my next question with respect to, I mean, if this is the case and we're looking for this sort of side deal coming towards the end of the year, can I assume, like, you know, we're getting a death sound quite quickly. Can I assume then return to shareholders' capital allocation? You know, we are thought perhaps, you know, looking at maybe, you know, share buyback. Would that be out of the out of your range in terms of being able to also take that on in addition to a larger deal?

Speaker Change: Okay, that's helpful. And that just comes to my next question with respect to, I mean, if this is the case, and we're looking for this sort of size deal coming towards the end of the year, can I assume, like, you know, we're getting this debt down quite quickly.

Speaker Change: Can I assume then return to shareholders capital allocation?

Speaker Change: We had thought perhaps, you know, looking at maybe, you know, you know, share buybacks. Would that be out of the out of your range in terms of being able to also take that on in addition to a larger deal?

Jason Attew: Okay, so look, I think we've got ourselves to a position, as I mentioned in the call, where we have to prevent this financial flexibility and capability. Now that we've got an internet debt down to approximately 40 million, we've been in a cash position very, very soon here. And so we obviously go through the capital allocation decision trees that you're quite familiar with. We do, as you're aware, have regulatory approval on a normal course issue or bid for buyback. We view that at the tool, though, in Virginia. Obviously, you know, our preference is to redeploy our capital into meaningful, creative transactions.

Jason Attew: So look, I think we've got ourselves to a position, as I mentioned in the call, where we have tremendous financial flexibility and capability now that we've got our net debt down to approximately $40 million. We obviously go through the capital allocation decision tree that you're quite familiar with. We do, as you're aware, have regulatory approval for a normal course issuer bid for buyback.

Speaker Change: So look, I think we've got ourselves to a position, as I mentioned in the call, where we have tremendous financial flexibility and capability now that we've got our net debt down to approximately $40 million.

Speaker Change: We will be in a cash position very, very soon here.

Speaker Change: And so we obviously go through the capital allocation decision tree that you're quite familiar with.

Speaker Change: We do, as you're aware, have regulatory approval on a normal course issuer bid for buyback.

Tanya Jakusconek: We view that as a tool, though, Tanya, obviously our preference is to redeploy our capital into meaningful accretive transactions. However, again, if we can't get things complete, or if we get things complete that are cash flowing, that does give us, you know, the comfort that we should be essentially lowering our share count, which is really predicated on our share price at the time. Not surprisingly, you're going to hear that management and myself think we're undervalued.

Speaker Change: We view that as a tool, though, Tanya, obviously.

Speaker Change: Our preference is to redeploy our capital into meaningful, accretive transactions.

Jason Attew: However, again, if we can't get things complete, or if we get things complete that are cash flowing, that does give us, you know, the comfort that we should be essentially lowering our share count. Really, also is predicated on our share price at the time. Not surprisingly, you're going to hear that management, myself, think we're undervalued, and I know your research suggests, in terms of our peers as well. So it is a tool that we certainly are contemplating using. And it really will be. We're really trying to be opportunistic around again. and if we do see some pressure with respect to our first price in the following months and moving into the year end, understanding that we have some capital we may deploy right into projects and deals that I talked about earlier.

Speaker Change: However, again, if we can't get things complete, or if we get things complete that are cash flowing, that does give us, you know, the comfort that we should be essentially lowering our share count.

Tanya: really also is predicated on our share price at the time.

Tanya: Not surprisingly, you're going to hear that management and myself think we're undervalued.

Tanya Jakusconek: And I know your research suggests that in terms of our peers as well. So it is a tool that we certainly are contemplating using. And it really will be. We're really trying to be opportunistic around here. Again, if we do see some pressure with respect to our stock price in the following months and moving into the year-end, understanding that we have some capital we may deploy right into projects and deals that I talked about earlier. Okay.

Speaker Change: and I know your research suggests...

Speaker Change: In terms of our peers as well, so it is a tool that we certainly are contemplating using and it really will be, we're really trying to be opportunistic around.

Speaker Change: Again, if we do see some pressure with respect to our stock price in the following months and moving into the year end, understanding that we have some capital we may deploy right into projects and deals that I talked about earlier.

Jason Attew: Okay. So would you have a preference then if you had to accept capital then for dividends, or would you prefer, I know it's share-dependent, but allocation to shares by that?

Tanya Jakusconek: Okay, so would you have a preference then if you have access capital, then for dividend or would you prefer, I know it's share dependent, but allocation to share by that. So I think that's the discussion that we continue to have, both management and board. I think they both have very good uses. As you know, we increase our dividend by 8% this year. We want to, again, see the predictability consistency of business; a lot of it is underpinned by that commodity price in particular. We do think the dividends are a meaningful way to return capital to the shareholders, but in the same sense, as I said, we want to be opportunistic for the company. The share price not being reflected or fundamental value, we will certainly be looking to use the buyback process.

Speaker Change: Okay, so would you have a preference then if you had to accept capital then for dividend or would you prefer, I know it's share dependent, but allocation to share by that?

Tanya Jakusconek: So I think that's the discussion that we continue to have with both management and the board. I think they both have very good uses.

Speaker Change: So I think that's the discussion that we continue to have, both management and board. I think they both have very good uses. As you know, we increased our dividend by 8% this year. We want to, again, seeing the predictability, consistency of business. A lot of it is underpinned by the commodity price.

Jason Attew: As you know, we increased our dividends by 8% this year. We want to, again, see the predictability and consistency of your business. A lot of it is underpinned by the commodity price, in particular. We do think dividends are a meaningful way to return capital to shareholders. But in the same sense, as I said, we want to be opportunistic in leading the company to your share price not being reflected or fundamental value. We will certainly be looking to use the buyback.

Speaker Change: In particular, we do think the dividends are a meaningful way to return capital to shareholders.

Speaker Change: But in the same sense, as I said, we want to be opportunistic for leading the company to your share price not being reflective of our fundamental value. We will certainly be looking to use the buyback process.

Tanya Jakusconek: Okay. And then just my final question.

Jason Attew: Okay, and then just my final question is just, sorry, my final question is just on benchmarking myself. When I looked at CASABAL and I took into account the SOBALS study, so based on their study, and I think we looked at it in the 1900 dollar gold price environment or thereabouts, an internal rate of 6 to 7% is that a fair return in terms of what you would have seen? Well, look, I think there's a lot of moving pieces here. Based on the pre-feasibility study that SOBALS put out, we would say that the return for our shareholders at that price is high single digits, and obviously, anything beyond those commodity prices is more incremental.

Speaker Change: Okay, and then just my final question is...

Jason Attew: Sorry, my final question is just on benchmarking myself. When I looked at Casabelle and took into account the SoGold study, so based on their study, and I think we looked at it in a $1,900 gold price environment or thereabout, an internal rate of 6% to 7%. Is that a fair return in terms of what you would have seen?

Speaker Change: Sorry, my final question is just on benchmarking myself.

Speaker Change: When I looked at Casabelle and I took into account the SolGolds, you know, study, so based on their study, and I think we looked at it in a $1,900 gold price environment or there about an internal rate of 6 to 7 percent. Is that a fair return in terms of what you would have seen?

Tanya Jakusconek: Look, I think there are a lot of moving pieces here. Based on the pre-feasibility study that SoGold put out, we would say that the return for our shareholders at that price is in the high single digits. And obviously, and anything beyond those commodity prices, it's more incremental. There are a number of components to the deal, as you're aware, around the condition precedent in terms of funding. There's obviously, as you're aware, buyback rights for the operator in the first three years, a buyback right with a lesser amount of 33%; it's within five years that gives us a guaranteed rate of return. So there are a few nuances to Tanya that depending on what happens in Ecuador with Cascabel and, is actually building and operating the mine at the time will impact. Okay, well, we'll see.

Speaker Change: Thank you. Bye.

Speaker Change: Look, I think there's a lot of moving pieces here. Based on the pre-feasibility study that Sogold put out, we would say that the return for our shareholders at that price is high single digits.

Speaker Change: And obviously, anything beyond those commodity prices is more incremental.

Jason Attew: There are a number of components to the deal, as you are aware, around the condition precedents in terms of funding. There's obviously, as you are aware, buyback rights for the operator in the first three years, buyback rights lesser amounts of 33%. It's within five years that gave us a guaranteed rate of return. So there's a few nuances to Daniels, and depending on what happens in Ecuador with CASABALS and who is actually doubling and operating the money at the time, will impact the return.

Speaker Change: There are a number of components to the deal, as you're aware, around the condition precedence in terms of funding.

Speaker Change: There's obviously, as you're aware, buyback rights for the operator in the first three years, a buyback right lesser amount on 33%. It's within five years that give us a guaranteed right of return.

Tanya: So there's a few nuances to Tanya that depending on what happens in Ecuador with Cascabel and Buhl.

Tanya: It is actually building and operating the mine at the time will impact the return.

Operator: Okay, well, we could take that offline. Thank you so much for taking my questions. Ladies and gentlemen, as a reminder, should you have a question, please press star one.

Tanya Jakusconek: Okay, well, we could take that offline. Thank you so much for taking the time to answer my question.

Speaker Change: Okay, well we could take that offline. Thank you so much for taking my questions.

Operator: Ladies and gentlemen, as a reminder, should you have a question, please press star 1. Your next question comes from Brian MacArthur with Raymond James. Your line is now open.

Speaker Change: Ladies and gentlemen, as a reminder, should you have a question, please press star 1.

Brian Macarthur: Your next question comes from Brian McArthur with Raymond James. Your line is now open. Good morning, and thank you for taking my question.

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

Brian Macarthur: Good morning and thank you for taking my question. Jason, I just want to go back to the security on Eagle and I appreciate there are a lot of moving parts and you don't have all the information, but when you say you have an inter-creditor agreement and security over the property, is that peri-passu with the senior lending syndicate? I'm just trying to figure out, you know, this may come down to relative negotiating power, to the extent you can or are willing to comment on that.

Brian Macarthur: Jason, I just want to go back to the security on Eagle, and I appreciate there's a lot of moving parts, and you don't have all the information. But when you say you have an inter creditor agreement and security over the property, is that very past due with the senior lending syndicate? I'm just trying to figure out, you know, this may come down to relative negotiating power to the extent you can or are willing to comment on that. Yeah, look, Brian. Thank you for that question.

Brian Macarthur: Good morning and thank you for taking my question. Jason, I just want to go back to the security on Eagle and I appreciate there's a lot of moving parts and you don't have all the information.

Speaker Change: But when you say you have an inter-creditor agreement...

Speaker Change: and security over the property. Is that peri passu with the senior lending syndicate? I'm just trying to figure out, you know, this may come down to relative negotiating power to the extent you can or are willing to comment on that.

Jason Attew: Yeah, look, Brian, thank you for that question. Unfortunately, the intercreditor is not a public document at this point. So all I can say is we feel very, very confident in our protections through that agreement. And, as I said earlier, we have security over the property. We have a registered interest in land recorded with the Yukon Territory. If the company does go through the CCAA process, we're quite confident that our rights will continue in any sort of restart of the Eagle Mine. And so we are a secured creditor, but the specifics, unfortunately, because it's a confidential document, I can't give you all the details about the intercreditor, but we've got the appropriate protections.

Brian Macarthur: Fair enough. Thanks very much. That still helps with the color. Thank you.

Speaker Change: Yeah, look Brian, thank you for that question. Unfortunately the intercreditor is not a public document at this point, so all I can say

Jason Attew: Unfortunately, the intercreditor is not a public document at this point. So all I can say is we feel very, very confident in our protections through that agreement. And, as I said earlier, we have security over the property. We have a registered interest in land recording with the Yukon Territory. If the company does go through a CC AA process, we're quite confident that our rights will continue in any sort of restart of the evil mind. And so we are a secured creditor, but the specifics, unfortunately, because it's the confidential document, I can't give you all the details around the intercreditor. But we've got the appropriate protections.

Speaker Change: We feel very, very confident in our protections through that agreement.

Speaker Change: And as I said earlier, we have security over the property. We have a registered interest in land recording with the Yukon Territory.

Speaker Change: If the company does go through a CCAA process, we're quite confident that our rights will continue in any sort of restart of the Eagle Mine.

Speaker Change: And so we are a secured creditor, but the specifics, unfortunately, because it's a confidential document, I can't give you all the details around the intercreditor, but we've got the appropriate protections.

Brian Macarthur: Fair enough, thanks very much. That's still helps with the caller. Thank you.

Speaker Change: Fair enough. Thanks very much. That still helps with the caller. Thank you.

Operator: There are no further questions at this time. I will not turn the call over to management for closing remarks. Thank you very much for joining us this morning with respect to some of the questions that have come in the webcast. We will answer them offline. So thank you for your participation in that regard. And I hope everyone has a very good week. Thank you for your time this morning.

Jason Attew: There are no further questions at this time. I will now turn the call over to management for closing remarks.

Speaker Change: Get it.

Speaker Change: There are no further questions at this time. I will now turn the call over to Management for closing remarks.

Jason Attew: Thank you very much for joining us this morning. With respect to some of the questions that have come in during the webcast, we will answer them offline. So thank you for your participation in that regard. And I hope everyone has a very good week. Thank you for your time.

Speaker Change: Thank you very much for joining us this morning. With respect to some of the questions that have come in the webcast, we will answer them offline, so thank you for your participation in that regard, and I hope everyone has a very good week. Thank you for your time this morning.

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating in essay-based disconnect your line.

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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