Q2 2025 Osisko Gold Royalties Ltd Earnings Call
Please note that this call is being recorded today August six 2025 at 10, a M. Eastern time I would now like to turn the meeting over to our host for today's call. Mr. Jason a two well show me that May Miss J do you have any other petkoff channels deficits subdues empty Miss David Thanks to her divorce or R. I pulled up his op has shown a plus at the high end.
Speaker #3: Good morning, ladies and gentlemen. And welcome to the OR Royalties Q2 2025 results conference call. After the presentation, we will conduct a estion and answer session.
Speaker #3: If you would like to ask a question, please press star, followed by the number one on our telephone keypad. Please note that this call is being recorded today, August 6, 2025, at 10:00 AM Eastern Time.
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Speaker #3: I would now like to turn the meeting over to our host for today's call, Mr. Jason Attew. Bonjour, dames and messieurs. Bienvenue à l'appel conférence des résultats du deuxième trimestre de 2025 de redevances OR.
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Speaker #3: Après la présentation, nous procéderons à une séance de questions et réponses. Si vous désirez poser une question, veuillez appuyer sur la touche étoile suivie du numéro un.
Bill.
Good day to everybody and thanks for your attention. This morning, because I know, it's a busy reporting week.
Procedurally I'll run through the presentation and then we'll open up the line for questions.
Speaker #3: Veuillez prendre note que cet appel est enregistré aujourd'hui le 6 août 2025 à 10:00 heure de l'Est. J'aimerais maintenant céder la parole à re hôte, Monsieur Jason Attew.
For those participating online via the webcast you can submit your questions in advance through the webcast platform.
Today's presentation will also be available in downloadable online through our corporate website.
Speaker #4: Merci, Joelle. Good day to ybody and thanks for your ention this morning. As I know, it's a busy reporting week. Procedurally, I'll run through the presentation and then we'll open up the line for questions.
Please note that there are forward looking statements in this presentation from which actual results may differ.
All amounts presented and discussed on today's call are in U S dollars unless otherwise noted.
Speaker #4: For those participating online via the webcast, you can submit your questions in advance through the webcast platform. Today's presentation will also be available and downloadable online through our corporate website.
I'm joined on the call today by Friday accrual, the company's VP finance and Chief Financial Officer as well as my other colleagues as indicated on slide three.
Speaker #4: Please note that there are forward-looking statements in this presentation from which actual results may differ. All amounts presented and discussed on today's call are in US dollars unless otherwise noted.
Taking a look back at or royalties second quarter of 2025, we were where we were pleased with our Geos earned our cash margin cash flows as well as our overall debt reduction.
Speaker #4: I'm joined on the call today by Frédéric Rouel, the company's VP Finance and Chief Financial Officer, as well as my other colleagues, as indicated on slide three.
Or royalties earned 19700 G OS in the second quarter, a modest step up over the first quarter of the year, which puts the company on track to achieve its previously published full year 2025 to your delivery guidance of 80 to 88000 gold equivalent ounces.
Speaker #4: Taking a look back at OR Royalties' second quarter of 2025, we were pleased with our GOs earned, our cash margin, cash flows, as well as our overall debt reduction.
Recall that we had been very explicit about the fact that due to sequencing at some of our major producing assets, including melodic in Mantas blancos. The first half of the year was always going to amount to approximately 45% of the midpoint of our 2025 G O guidance range and basically where there are.
Speaker #4: OR Royalties earned $19,700 GOs in the second quarter, a modest step up over the first quarter of the year. Which puts the company on track to achieve its previously published full year 2025 GO delivery guidance, of 80 to 88,000 gold equivalent unces.
Lee above it as of June 30th.
Speaker #4: Recall that we had been very explicit about the fact that due to sequencing at some of our major producing assets, including Mallarctic and Mantos Blancos, the first half of the year was always going to amount to approximately 45% of the midpoint of our 2025 GO guidance range.
Needless to say, we're expecting a stronger second half to the year.
Of note is that the first half of 2025. There is approximately 1200 geos that were not realized compared to our internal budget due to the higher gold silver ratio in the first half of this year versus the ratio we use for annual guidance of 83 to one.
Speaker #4: And basically, we're ere. Or modestly above it, as of June 30th. Needless to say, we're ecting a stronger second half to the year. Of note is that the first half of 2025 there's approximately 1,200 GOs that were not realized compared to our internal budget due to the higher gold silver ratio in the first half of this year, versus the ratio we use for our annual guidance of 83 to 1.
That said higher gold prices have translated to record cash flows from operating activities for all royalties for both the second quarter and the first six months of the year. So as you can imagine our shareholders should be satisfied with these price movements.
Our cash margin remained robust in the second quarter, but saw a slight dip from the first quarter due to some final residual geo contribution from the shuttered Renard Diamond mine.
Speaker #4: That said, higher gold prices have translated to record cash flows from operating activities for OR Royalties for both the second quarter and the first six months the year.
Or royalties ended the second quarter with $49 6 million in cash and as at June 30, we were in a net cash position for the first time in several years as the company continued to pay down is revolving credit facility during the period.
Speaker #4: So, as you can imagine, our shareholders should be satisfied with these price movements. Our cash margin remained robust in the second quarter, but saw a slight dip from the first quarter due to some final residual GO contribution from the shuttered Renard Diamond Mine.
And while members of our corporate development team remain extremely busy.
The only transaction completed of note during the period was our acquisition of 100% silver stream on Orla mining South Railroad project in Nevada for a total consideration of $13 million.
Speaker #4: OR Royalties ended the second quarter with $49.6 million in cash and is at June 30th, we are in a net cash position for the first time in several years.
Speaker #4: As the company continued to pay down its revolving credit facility during the period. And while members of our corporate development team remain extremely busy, the only transaction completed of note during the period was our quisition of a 100% silver stream on Orla Mining South Railroad project in Nevada.
Why seemingly small for now with an updated feasibility study expected in the project from Orla and the second half of 2025.
And positive moment momentum seen in the permitting of new projects in the U S. In particular, we're excited about the path forward for South railroad over the next few years.
Speaker #4: For a total consideration of $13 million. Why seemingly small, for now, with an updated feasibility study expected in the project from Orla in the second half of 2025, and positive momentum seen in the permitting of new projects in the US in , we are excited about the path forward for South Railroad over the next few years.
With respect to our ongoing commitment to return capital to shareholders. The company declared and paid its quarterly dividend of $5.05 per share in the second quarter, marking its 40 <unk> consecutive dividend or.
Or royalties history of progressive dividend payments serves as a testament to the confidence confidence that we have in the consistency predictability and the anticipated growth of the current and future cash flows underpinning our business.
Speaker #4: With respect to our ongoing commitment to return capital shareholders, the company declared and paid its quarterly dividend of five and a half cents per share in the second quarter.
Now moving on to the company's financial performance for Q2.
Speaker #4: Marking its 43rd consecutive dividend. OR Royalties' history of progressive dividend payments serves as a testament to the confidence that we have in the consistency, predictability, and the anticipated growth of the current and future cash flows underpinning our business.
Quarterly revenues of $60 4 million tracked higher versus the same period last year.
Largely thanks to increased commodity prices.
Net earnings of 17 cents per basic common share for the period was also markedly at significant year over year improvement, where our loss was previously recognized due to the technical failure and subsequent suspension of operations at the Eagle mine in the Yukon.
Speaker #4: Now, moving on to the company's financial performance for Q2. Quarterly revenues of $60.4 million tracked higher versus the same period last year. Largely thanks to increased commodity prices.
Resulting in royalties, having written down the asset to zero in the same period last year.
Speaker #4: Net earnings of $0.17 per basic common share for the period marked a significant year-over-year improvement, where a loss was previously recognized due to the technical failure and subsequent suspension of operations at the Eagle Mine in Yukon.
Most importantly, Q2 of 2025 saw year over year improvement in both cash flow per share at 27.
Versus 21 cents in Q2 of last year.
As well as quarterly adjusted earnings of <unk> 18 per common share versus 13 again in the same period of last year.
Speaker #4: Resulting in OR Royalties having written down the asset to zero, in the same period last year. Most importantly, Q2 of 2025 saw year-over-year improvement in both cash flow per share at 27 cents versus 21 cents in Q2 of last year, as well as quarterly adjusted earnings of 18 cents per common share, versus 13 cents again in the same period of last year.
Moving to slide six.
During the second quarter of 2025, our Geos earned came predominantly from Canada, and we derived over 93% of our gold equivalent ounces from precious metals.
We are continuing to see a modestly increasing contribution from copper as part of the overall mix almost entirely associated with our copper stream at the CSA mine.
Speaker #4: Moving to slide six. During the second quarter of 2025, our GOs earned came predominantly from Canada and we derived over 93% of our old equivalent ounces from precious metals.
Some comments on specific mine performances during the quarter before speaking about a couple of our more material assets in greater detail.
Agnico Eagle's Canadian mill, Arctic had yet another fantastic quarter, including a significant step change quarter over quarter. Given Q1 included the work onsite associated with in pit tailings disposal adjustments that were ultimately completed faster than anticipated.
Speaker #4: We are continuing to see a modestly increasing contribution from copper as part of the overall mix. Almost entirely associated with our copper stream at the CSA Mine.
Speaker #4: Some comments on specific mine performances during the quarter before speaking about a couple of our more material assets in greater detail. Agneco Eagles Canadian Mallarctic had yet another fantastic quarter.
A reminder, that historically, we've often seen stronger back half of the year from Canadian mill Arctic versus the other way around so that bodes well for our final six months of 2025.
Speaker #4: Including a significant step change quarter over quarter given Q1 included the work on site associated with input tailings disposal, adjustments, that were ultimately completed faster than anticipated.
At Capstone is copper.
Capstone Koppers Mentos Blancos operation.
Two production was effectively flat year over year, despite the much improved plant throughput.
Speaker #4: A reminder that historically we've often seen stronger back halves of the year from Canadian Mallarctic versus the other way around. So that bodes well for a final six months of 2025.
And this was largely due to the previously telegraph lower silver grades experienced at the mine through the first half of our stream delivery year, which started November one 2024 and ends October 31 2025.
Speaker #4: At Capstone's copper's Mantos Blancos operation, Q2 production was effectively flat year over year, despite the much improved plant throughput. And this was largely due to the previously telegraphed lower silver grades experienced at the mine through the first half of our stream delivery year.
As noted throughput levels remained at or above the mines nameplate capacity of 20000 tonnes per day and <unk> blancos.
And our anticipation is that silver grades will trend back upwards between now and the end of October.
Speaker #4: Which started November 1st, 2024 and ends October 31st, 2025. As noted, throughput levels remained at or above the mine's nameplate capacity of 20,000 tons per day at Mantos Blancos, and our anticipation is that silver grades will trend back upwards between now and the end of October.
Finally on Mentos Blancos.
And as of last week's Q2, 2025 update from Capstone. The phase two feasibility study is now scheduled for 2026 versus the previous expectation of Q4 of 2025.
Finally, we remain impressed with the ongoing successful ramp up at G mining ventures token to Zeno mine in Brazil.
Speaker #4: Finally, on Mantos Blancos, and as of last week's Q2 2025 update from Capstone, the phase two feasibility study is now scheduled for 2026. Versus the previous expectation of Q4 of 2025.
Commercial production was only achieved in September of last year, and the ramp up has gone very well.
Finally for the first time ever represented on this slide you will see the NAND deeming mining, Ghana for which or royalties received its first payment from cardinal during the period to the tune of 130 Geos.
Speaker #4: Finally, we remain impressed with the ongoing successful ramp up at G Mining Ventures Tocontin Xeno Mine in Brazil. Commercial production was only achieved in September of last year, and the ramp up has gone very well.
Moving to slide seven.
And as I mentioned earlier, the number of currently producing assets in our portfolio stands at 22.
Speaker #4: Finally, for the first time ever represented on this slide, you will see the Nandimi mine in Ghana, for which OR Royalties received its first payment from Cardinal, during the period to the tune of $130 GOs.
Diving, a little bit deeper into that number and as noted in our press release during the second quarter and similar to an N D me or royalties received his first royalty payment from <unk> resources with mining now of not having started at bralorne over which or royalties has a $1 seven net smelter royalty.
Speaker #4: Moving to slide seven. And as I mentioned earlier, the number of currently producing assets in our portfolio stands at 22. Diving a little bit deeper into that number, and as noted in our press release, during the second quarter and similar to Nandimi, OR Royalties received its first royalty payment from Talisker Resources, with mining now having started at Browlorn.
As previously noted and based on the current trajectory of the asset or royalties expects to start receiving more meaningful royalty payments from both newly contributing assets, but more so for <unk>.
Through the second half of 2025.
Congratulations to both operators and getting these mines up and running.
Speaker #4: Over which OR Royalties has a 1.7 net smelter royalty. As previously noted, and based on the current trajectory the asset, OR Royalties expects to start receiving more meaningful royalty payments from both newly contributing assets.
Just a quick note on the Donut chart in the bottom left hand corner of this slide through <unk> 2025, or royalties sell over 94% of its revenues generated from precious metals.
Speaker #4: But more so from Nandimi. Through the second half of 2025. A note of congratulations to both operators in getting these mines up and running.
Haps, but perhaps more importantly over 26% of that came directly from silver with.
With the gold silver ratio, having tightened up considerably since the beginning of June. We're currently back down to about 89 to one from the 2025 highest.
Speaker #4: Just a quick note on the donut chart in the bottom left-hand corner of the slide. Through H1 2025, OR Royalties saw over 94% of its revenues generated from precious metals.
Approximately 1105 to one.
It is worth noting that or royalties can provide lower risk high quality and meaningful leverage to silver for investors that are looking forward, especially if silver prices continue to close the gap against gold and trade at ratios, we have historically witnessed.
Speaker #4: Perhaps, but perhaps more importantly, over 26% of that came directly from silver. With the gold silver ratio having tightened up considerably since the beginning of June, we're currently back down to about 89 to 1.
Speaker #4: From the 2025 highs of approximately 105 to 1. It is worth noting that OR ties can provide lower risk, high quality, and meaningful leverage to silver for investors that are looking for it.
Moving on to slide eight.
Which many of you have seen many times before our company continues to set itself apart from the rest of its relevant peers in two key areas.
First as it relates to lower risk jurisdictional exposure and second as it relates to our peer leading cash margins.
Speaker #4: Especially if silver prices continue to close the gap against gold and trade at ratios we have historically witnessed. Moving on to slide eight. Which many of you have seen many times before.
Starting with the former we continue to believe that or royalties is the unequivocal leader when it comes to both NAV and Geos earned from what we define as tier one mining jurisdictions, which include Canada, the United States and Australia and.
Speaker #4: Our company continues to set itself apart from the rest of its relevant peers in two key areas. First, as it relates to lower risk jurisdictional exposure, and second, as it relates to our peer leading cash margins.
And even with the recent deals made by our peers. In addition to the sector consolidation we are witnessing.
Speaker #4: Starting with the former, we continue to believe OR Royalties is the unequivocal leader when it comes to both NAV and GOs earned from what we define as tier one mining jurisdictions.
Our position at the far left of this chart is unexpected to be challenged anytime soon.
Moving to the ladder or royalties purely to cash margins provides our shareholders with both transparent leverage as well as unmatched downside protection.
Speaker #4: Which include Canada, the United States, and Australia. And even with the recent deals made by our peers, in addition to the sector consolidation we are witnessing, our position at the far left of this chart isn't expected to be challenged anytime soon.
Switching gears to slide nine and focusing on our cornerstone asset our partner Agnico Eagle provided some relevant information relating to clean Canadian mill Arctic along with this Q2 25 financial results and now it's just late last week.
Speaker #4: Moving to the latter, OR Royalties' peer leading cash margins provide our shareholders with both transparent leverage as well as unmatched downside protection. Switching gears to slide nine and focusing on our cornerstone asset, our partner Agneco Eagle provided some relevant information relating to Canadian Mallarctic along with this Q2 25 financial results.
As it relates to operations during the period gold production saw a significant quarter over quarter uptick with higher grade source from the Barnett pit, where once again, partially offset by slightly lower volume of tonnes milled the.
The higher gold grades from Barnett were a result of the continued mining of mineralized zones nearer the historical underground stopes in the pit that had better than expected grade reconciliation.
Speaker #4: And now it's just late last week. As it relates to operations during the period, gold production saw a significant quarter over quarter uptick, with higher grade source from the Barnett Pit.
In addition, and as expected <unk> in pit tailings deposition also ramped up to its design capacity in the second quarter of 2025.
Speaker #4: We're ce again partially offset by slightly lower volume of tons milled. The higher gold grades from Barnett were a result of the continued mining of mineralized zones near the historical underground stokes in the pit.
Flipping to slide 10 odd.
Odyssey underground gold production during Q2 was a quarterly record at approximately 26600 ounces driven by higher grades and ore mined of approximately 30 970 tons per day compared to the target of 3500 tonnes per day.
Speaker #4: That had better than expected grade reconciliation. In addition, and as expected, Agneco's input tailings deposition also ramped up to its designed capacity in second quarter of 2025.
The ramp up of the service hoist to its design hoisting capacity of 3500 tonnes per day and the increased use of remote operated in automated equipment were the main drivers for exceeding the development and the production targets during the period.
Speaker #4: Flipping to slide 10, Odyssey underground gold production during Q2 was a quarterly record at approximately 26,600 ounces, driven by higher grades and ore mined of approximately 39,170 tons per day compared to the target of 3,500 tons per day.
On the development front at Odyssey underground the second quarter of 2025, some mine development advance ahead of schedule.
Speaker #4: The ramp up of the service hoist to its designed hoisting capacity of 3,500 tons per day and the increased use of remote operated and automated equipment were the main drivers for exceeding the development and the production targets during the period.
With a record of 40 850 meters completed.
A key milestone was achieved as a ramp reached the mid shaft loading station at level 102.
The ramp breakthrough to the shaft is scheduled for the third quarter of 2025.
Speaker #4: On the development front, Odyssey Underground, the second quarter of 2025 saw mine development advance ahead of schedule, with a record of 4,850 meters completed.
The main ramp towards shaft bottom progressed to a depth of 1019 meters as of it as at June 32025.
Development of the East Goldie production levels also advanced with preparatory work underway for the planned production startup in the second half of 2026.
Speaker #4: A key milestone achieved as the ramp reached the mid-shaft loading station at level 102. The ramp breakthrough to the shaft is scheduled for the third quarter of 2025.
Building on continued exploration success at depth and the expansion of the mineral resource at East Goulding, our partner Agnico is evaluating opportunities to enhance operational efficiency.
Speaker #4: The main ramp towards shaft bottom progressed to a depth of 1,019 meters as of June 30th, 2025. Development of the East Goldie production levels also advanced, with preparatory work underway for the planned production startup in the second half of 2026.
Over the medium to long term.
One option under consideration is a 70 meter extension of shaft number one to a depth of 870 meters.
Speaker #4: Building on continued exploration success at depth and the expansion of the mineral resource at East Goldie, our ner Agneco is evaluating opportunities to enhance operational efficiency over the medium to long term.
This initiative is being assessed in parallel with the potential development of a second shaft at Odyssey.
Looking at exploration Agnico, certainly isn't slowing down with 26 surface and underground drills operating during the period Q2 results from drilling into the lower east extension of East Gulli extended the deposit at depth and to the east and are expected to contribute additional inferred mineral resources.
Speaker #4: One option under consideration is a 70 meter extension of shaft number one to a depth of 1,870 meters. This initiative is being assessed in parallel with the potential development of a second shaft at Odyssey.
In this portion of the deposit by year end of 2025.
Speaker #4: Looking at exploration, Agneco certainly isn't slowing down. With 26 surface and underground drills operating during the period, Q2 results from drilling into the lower east extension of East Goldie extended the deposit at depth into the east and are expected to contribute additional inferred mineral resources in this portion of the deposit by year end of 2025.
Further to this.
Impressive holes intersected in the sub parallel eclipse, one which would be fully covered by or our royalties, 5% MSR royalty.
And it has agnico, believing that this area has the potential to add indicated mineral resources and potentially mineral reserves to east Goldie by year end.
Speaker #4: Further to this, impressive holes intersected in the subparallel eclipse zone which would be fully covered by OR Royalties' 5% NSR royalty and it has Agneco believing that this area has the potential to add indicated mineral resources and potentially mineral reserves to East Goldie by year end.
Jumping to slide 11.
It is important to note that has only been just over a year since Alamos gold acquired Argonaut Gold, which was an acquisition that I think over time.
The market will judge is one of the best return on investments in the gold space.
Is this expansion study evaluates increasing the <unk> mill to 20000 tonnes per day.
Speaker #4: Jumping to slide 11, it's important to note that it is only being just over a year since Alamo's gold acquired Argonaut Gold, which was an acquisition that I think over time the market will judge as one of the best return on investments in the gold space.
That expansion study is expected to be published by the end of this year.
In many ways internally here at or royalties, we see island gold is very much tracking the same progress being made a Canadian melodic.
Just with a smaller footprint, thanks to more than triple the gold grades.
Speaker #4: As it's expansion study evaluates increasing the Mageno mill to 20,000 tons per day. That expansion study is expected to be published by the end of this year.
During the second quarter and in late June 2025, Alamo has provided an updated life of mine plan for the district.
Speaker #4: In many ways internally here at OR Royalties, we see island gold as very much tracking the same progress being made at Canadian Mallarctic just with a smaller footprint thanks to more than triple the gold grades.
And probably most notably also announced an updated underground mineral reserve 18th $11 8 million tonnes grading 10, 85 Gram per tonne gold for $4 1 million ounces at island gold that's up 80% from year end 2024, and reflecting the impressive recent Congress converse.
Speaker #4: During the second quarter and in late June 2025, Alamo's provided an updated life of mine plan for the district. And probably most notably, also announced an updated underground mineral reserve of 11.8 million tons grading 10.85 gram per ton gold for 4.1 million ounces at island gold.
<unk> of mineral resources.
Probably the most exciting part of all.
This brand New mine plan serves as just an intermediary stepping stone prior to Alamos is scheduled for release of a district expansion study that I mentioned earlier that is expected to be complete in Q4 of 2025.
Speaker #4: That's up 80% from year end 2024. And reflecting the impressive recent conversion of mineral resources. Probably the most exciting part of all, this brand new mine plan serves as just an intermediary stepping stone prior to Alamo's scheduled release of a district expansion study that I mentioned earlier, that is expected to be complete in Q4 of 2025.
Which could potentially see a modest increase to the planned underground mining rates from the currently planned 2400 tons per day.
What this could mean, what could this mean for or royalties well any increase over and above the currently planned underground mining rates would add only add geos over and above the anticipated seven to eight thousands of annual goal woven ounces.
Speaker #4: Which could potentially see a modest increase to the planned underground mining rates from the currently planned 2,400 tons per day. With this could mean what could this mean for OR Royalties?
That were already expecting from this asset in the latter a few years of this decade.
Certainly something to watch over the near future.
Speaker #4: Well, any increase over and above the currently planned underground mining rates would only add GOs over and above the anticipated seven to eight thousand of annual gold equivalent ounces that were already expecting from this asset in the latter few years of this decade.
On to slide 12, which touches on Delta Ranga a high grade underground gold asset on which our royalties acquired a one 8% gross revenue royalty towards the end of last year.
On July 31st Roumelia resources closes acquisition of Spartan resources.
Speaker #4: Certainly something to watch over the near future. On to slide 12, which touches on Del Garanga, a high grade underground gold asset on which OR Royalties acquired a 1.8% gross revenue royalty towards the end of last year.
Meaning Gallagher Ranga represents a key piece of the former approximate operations and infrastructure in the immediate region.
Around the same time and publicly available documents Roumelia noted then and integrated feasibility study.
Speaker #4: On July 31st, Remilius Resources closes acquisition of Spartan Resources meaning Del Garanga represents a key piece of the former's proximate operations and infrastructure in the immediate region.
<unk>, along with a maiden mineral reserve for Gallagher Ranga is being progressed and is set for release by the end of this calendar year.
And or royalties, we have been extremely encouraged by the fact that familiar as management team continues to point to the fact that.
Speaker #4: Around the same time, in publicly available documents, Remilius noted that an integrated feasibility study likely along with a maiden mineral reserve for Del Garanga is being progressed in a set for release by the end of this calendar year.
That underground development at Algar, Ranga is already underway and that the high grade resource at the never never deposit could be processed through Amelia says checkers mill prior to the end of 2025.
For context. This is a full year ahead of what we originally anticipated.
Speaker #4: And OR Royalties, we've been extremely encouraged by the fact that Remilius's management team continues to point to the fact that underground development at Del Garanga is already underway.
Further clue as to the potential timelines was uncovered last week when Roumelia has provided us with an early buyback notice for 20% of the Dow Garang of gross revenue royalty, reducing the royalty rate on <unk> Ranga from one 8% to $1 four 4% as well as reducing the royalty rate on Ben's mining.
Speaker #4: And that the high grade resource at the never, never deposit could be processed through Remilius's checkers mill prior to the end of 2025. For context, this is a full year ahead of what we originally anticipated.
<unk> <unk> <unk> Egerton projects from 1.35% to 1.18%.
Speaker #4: Further clue as to the potential timelines was uncovered last week when Remilius provided us with an early buyback notice for 20% of the Del Garanga gross revenue royalty.
For context, when we were initially moving forward with the deal we were always expecting this buyback could take place shortly before first production.
Speaker #4: Reducing the royalty rate on Del Garanga from 1.8% to 1.44%. As well as reducing the royalty rate on Ben's mining's Glenborough and Mount Egerton projects from 1.35% to 1.08%.
On slide 13, which provides a summary of the significant progress being made in some of our key optionality assets that are currently excluded from our five year outlook.
Speaker #4: For context, when we were initially moving forward with the deal, we were always expecting this buyback to take place shortly before first production. On slide 13, which provides a summary of the significant progress being made in some of our key optionality assets that are currently excluded from our five-year outlook, if you haven't had a chance to go through our June 2nd press release covering all these specific assets in more detail, I highly recommend taking a look.
If you haven't had a chance to go through our June 2nd press release, covering all these specific assets in more detail I highly recommend taking a look.
As what's in there might provide a good preview and how to think about what might be included in our 2035 year outlook. When we release it mid February of next year.
By way of examples in terms of additional progress since that specific disclosure and subsequent to quarter end on.
On July 14th the Bureau of land management provided a positive record of decision on solid as resources Spring Valley project in Nevada.
Speaker #4: As what's in there might provide a good preview on how to think about what might be included in our 2035 year outlook. When we release it mid-February of next year.
Meaning this large scale gold heap Leach project is effectively shovel ready.
Speaker #4: By ways of examples in terms of additional progress since that specific disclosure, and subsequent to quarter end, on July 14th, the Bureau of Land Management provided a positive record of decision on Solidus Resources' Spring Valley project in Nevada, meaning this large-scale gold heap leach project is effectively shovel ready.
And speaking of shovel ready projects July twenty-first Cisco development and now it said it secured a $450 million project loan facility secured from a new strategic partner partner Appian capital Advisory.
To fund development and construction of the Cariboo Gold project.
This includes a $100 million initial draw that enables.
Speaker #4: And speaking shovel ready projects, July 21st, a Cisco development announced that it secured a $450 million project loan facility secured from a new strategic partner Appian Capital Advisory.
<unk> to accelerate the project preconstruction activities and materially Derisk the project.
Further to this announced just last week, the Cisco development raised an additional $195 million through concurrent bought deal and private placement equity financings, the louder with a strategic investor.
Speaker #4: To fund development and construction of the Caribou Gold project. This includes a $100 million initial draw that enables ODEV to accelerate the project pre-construction activities and materially de-risk the project.
With the debt and equity combined along with indications of interest from commodity traders seeking high quality concentrate offtake.
Speaker #4: Further to this, announced just last week, the Cisco development raised an additional $195 million through concurrent bought deal and private placement equity financing the latter with a strategic investor.
And other potential financing arrangements that Cisco development is actively negotiating will provide the necessary funds to complete the construction of the mind.
This is all extremely positive for oded and ourselves.
Speaker #4: Both the debt and equity combined along with indications of interests from commodity traders seeking high quality concentrate offtake and other potential financing arrangements that the Cisco development is actively negotiating will provide the necessary funds to complete the construction of the mine.
Given we have a 5% MSR at caribou.
Finally, once the parallel equity offerings are closed as of mid August or royalties equity position in a Cisco development will be reduced to approximately 14, 3% and an undiluted basis versus our current 24, 4% as of as of June 32025.
Speaker #4: This is all extremely positive for ODEV and ourselves given we have a 5% NSR at Caribou. Finally, once the parallel equity offerings are closed, as of mid-August, OR Royalties' equity position in the Cisco development will be reduced to approximately 14.3% and an undiluted basis versus our current 24.4% as of June 30th, 2025.
Neither spring valley, nor caribou, both of which would require approximately two year construction periods are included in our five year outlook for 2029 and collectively represent approximately an additional 16000 annual geos earned from tier one mining jurisdictions went both projects our opera.
<unk> and the royalties are being paid.
Speaker #4: Neither Spring Valley nor Caribou, both of which would require approximately two-year construction periods, are included in our five-year outlook for 2029 and collectively represent approximately an additional $16,000 annual GOs earned from tier one mining jurisdictions once both projects are operating in the Royalties are being paid.
This provides a good segue to slide 14.
Or you can see all the projects listed.
Including spring Valley and Caribou in our Optionality bar on the far right of this chart.
Along the same lines of the projects listed as part of our current five year outlook for 2029, all of the growth from the listed projects across the Blue bars is already bought and paid for with no contingent capital is associated or required from our royalties.
Speaker #4: This provides a good segue to slide 14, where you can see all the projects listed including Spring Valley and Caribou in our tionality bar on the far right of this chart.
I wanted to also take some time to highlight the expansion asset that sits on the very top of the Optionality bar.
Speaker #4: Along the same lines of the projects listed as part of our current five-year outlook for 2029. All of the growth from the listed projects across the blue bars is already bought and paid for with no contingent capital associated or required from OR Royalties.
And that's the Odyssey second shaft at Canadian Mill Arctic.
Our partner Agnico Eagle continues to believe all the necessary disclosure on the concept to result in internal belief here at or royalties that we're not just talking about when and not not in F. <unk>.
Speaker #4: I wanted to also take some time to highlight the expansion asset that sits on the very top of the optionality bar. And that's the Odyssey second shaft at Canadian Mallarctic.
In fact on <unk> conference call held on Thursday last week <unk>.
Nico management made an explicit reference to future throughput and gold production scenario with both shafts and operations.
Speaker #4: Our partner Agneco Eagle continues to believe all the necessary disclosure on the concept to result in internal belief here at OR ties that we're not just talking about when and not and if.
Running a combined underground running at combined underground mining rates of 30000 tons per day and.
750 to 800000 ounce ounces of gold per annum from the single ore body.
Speaker #4: In fact, on Agneco's conference call held on Thursday last week, Agneco management made an explicit reference to a future throughput and gold production scenario with both shafts in operations.
The sheer amount of gold discovered to date at Odyssey underground and more specifically east gulli, and which we have the 5% MSR royalty and which continues to expand is nothing short of staggering.
Speaker #4: Running a combined underground and running at combined underground mining rates of 30,000 tons per day. And 750 to 800,000 ounce ounces of gold per annum from the single ore body.
And today, our partner Agnico still has 26 drills turning to add to this mineral resource and reserve.
Our inventory and firm up the confidence of what has been previously defined.
Speaker #4: The sheer amount of gold discovered to date at Odyssey Underground and more specifically East Goldie and which we have the 5% NSR royalty and which continues to expand is nothing short of staggering.
Based on our current understanding Ignacio is taking a well warranted methodologies will approach.
Methodical approach to the potential of the second shaft. Consequently, it's unlikely that there'll be any meaningful disclosure as it relates to the specific details of Nikos findings until late 'twenty six but most likely early 2027.
Speaker #4: And today, our near Agnico still has 26 drills turning to add to this mineral resource and reserve, and its inventory, and firm up the confidence of what has been previously defined.
Speaker #4: Based on our current understanding, Agneco is taking a well warranted methodological approach. Methodical approach to the potential of the second shaft consequently is unlikely that there'll be any meaningful disclosure as it relates to the specific details of Agneco's findings until late 26, but most likely early 2027.
As of today, it's our belief internally at or the value of the potential second shaft at Odyssey is not currently fully reflected in our share price. Despite the fact that we truly believe that there is no doubt will be happening and.
And that the additional geos from our second shaft alone would be the.
The single biggest individual asset growth driver for all royalties once it's all in production.
Speaker #4: As of today, it's our belief internally at OR that the value of the potential second shaft at Odyssey is not currently fully reflected in our share price.
And recall the potential second shaft only serves as a component, albeit a key one.
Speaker #4: Despite the fact that we truly believe that there's no doubt we'll be happening and that the additional GOs from a second shaft alone would be the single biggest individual asset growth driver for OR Royalties once it's all in production.
<unk> was broader plans, which could see the entire Canadian melodic complex produce 1 million ounces from 2030 from the 2030 zoned words when factoring additional ore sources, such as Marvin and Wassa Mac.
Speaker #4: Recall that the potential second shaft only serves as a component, albeit a key one, to Agnico's broader plans, which could see the entire Canadian Malartic complex produce 1 million ounces from the 2030s onwards.
Switching gears I also wanted to highlight an asset that has not been included in either either these slides or the and that is of the Eagle mine in the Yukon.
At this stage there isn't much detail to add here outside of what's already in the public domain.
Speaker #4: When factoring additional ore sources such as Marban and Wasomac. Switching gears, I also wanted to highlight an asset that has not been included in either of either of these slides or the and that is of the Eagle mine in the Yukon.
However, most recent updates include the early July release of the Independent Review Board report on their findings as to the cause of the heap Leach failure.
Back over a year ago in June 2024.
Along with the current conditions of the facilities on site.
Speaker #4: At this stage, there isn't much detail to add here outside of what's already in the public domain; however, most recent updates include the early July release of the independent review board report on their findings as to the cause of the heap leach failure.
Eagle is now officially up for sale after an Ontario Court approved the main receivers application to begin the sales process.
The receiver price Waterhouse Coopers the outlined it two phase sale process and a submission to the Ontario Superior Court of Justice the.
Speaker #4: Back over a year ago in June 2024, along with the current conditions of the facilities on site. Eagle is now officially up for sale after an Ontario court approved the mine receiver's application to begin the sales process.
The receiver will accept letters of intent.
Very shortly and then we'll choose qualified submissions to file an actual bid.
Their timing around on October 15th and his decision filed to the court. The presiding judge noted that all parties agreed that it was time to put the mine up for sale.
Speaker #4: The receiver PricewaterhouseCoopers is outlined a two-phase sale process and its submission to the Ontario Superior Court of Justice. The receiver will accept letters of intent very shortly.
The judge also said that while the first nation of Nacho Nayak done did not oppose the sale they are asking to be kept in form throughout the process.
Speaker #4: And then will choose qualified submissions to file an actual bid their timing is around October 15th. In his decision filed to the court, the presiding judge noted that all parties agreed that it was time to put the mine up for sale.
Our royalties will continue to provide as much information as it can along the way but.
But needless to say the next six to eight months will be very telling as it relates to the potential future restart of Eagle.
Speaker #4: The judge also said that while the First Nation of Nacho Nayak Dunn did not oppose the sale, there are asking to be kept in form throughout the process.
Okay.
Quickly on slide 15 on top of everything else. We've mentioned here is an updated list of key catalysts on currently producing assets on the left and key near term development projects that fall within our five year outlook on the right all single out just two for now.
Speaker #4: OR ties will continue to provide as much information as it can along the way. But needless to say, the next six to eight months will be very telling as it relates to the potential future restart of Eagle.
First on May 27th Mac copper announced that it had entered into a binding scheme implementation deed with harmony gold to acquire 100% of the issued share capital in Mac copper.
Speaker #4: Quickly on slide 15, on top of everything else we've mentioned, here is an updated list of key catalysts on currently producing assets on the left, and key near-term development projects that fall within our five-year outlook on the right.
Both of or royalties silver and copper streams at CSA remain unchanged in terms of in terms of future geos or royalties from the asset.
Speaker #4: All single out just two for now. First, on May 27th, Matt Copper announced that it had entered into a binding scheme implementation deed with Harmony Gold to acquire 100% of the issued share capital in Matt Copper.
And as noted in last nights press release, we Couldnt think of a better operator than harmony possessing the technical expertise to continue the path of the optimization and growth that already saw tremendous progress under Mac Copper's leadership the.
Speaker #4: Both of OR Royalties' silver and copper streams at CSA remain unchanged in the terms of in terms of future GOs to OR Royalties from the asset.
The transaction is expected to close in the second half of 2025.
Speaker #4: And as noted, in last night's press release, we couldn't ink of a better operator than Harmony possessing the technical expertise to continue the path of the optimization and growth that already saw tremendous progress under Matt Copper's leadership.
Looking to the right of the slide and announced just last week Goldfields confirmed the continuation of the environmental assessment process for windfall.
Through the submission of the second series of responses to Comex questions.
Speaker #4: The transaction is expected to close in the second half of 2025. Looking to the right of the slide, an announced just last week, Goldfields confirmed the continuation of the environmental assessment process for windfall.
Recall that the most recent fulsome update from Goldfields provided the expectation that an updated feasibility study along with final project permits as well as final IV as with irrelevant relevant first nation groups are all expected in the second half of this year.
Speaker #4: Through the submission of the second series of responses to COMEX questions, recall that the most recent fulsome update from Goldfields provided the expectation that an updated feasibility study, along with final project permits and final IBAs with the relevant First Nation groups, are all expected in the second half of this year.
With a final investment decision and initial project construction expected in early 2026.
Finally, we will end the formal part of the presentation on slide 16, which outlines the current state of all royalties balance sheet.
At quarter end, we had a total debt of just under $36 million.
And we're also in a net cash position of $14 million. This.
Speaker #4: With the final investment decision and initial project construction expected in early 2026. Finally, we'll end the formal part of the presentation on slide 16.
This net cash number would grow to approximately $63 million. If we were to include the $49 million value from our Mac copper shares.
Speaker #4: Which outlines the current state of OR Royalties' balance sheet. Headquarter end, we had a total debt of just under 36 million. And we're also in a net cash position of 14 million.
Which are listed on this slide as investments held for sale.
Factoring this all in with over $900 million in potential available liquidity at the end of the quarter. The balance sheet is looking incredibly strong and has gotten even stronger subsequent to quarter end with or royalties, having paid down an additional $21 million in debt.
Speaker #4: This net cash number would grow to approximately 63 million if we were to include the 49 million value from our Matt Copper shares. Which are listed on the slide as investments held for sale.
In that.
Our improved financial position as a key as or royalties corporate development team continues to be stretched to capacity across multiple transaction opportunities.
Speaker #4: Factoring this all in, with over $900 million in potential available liquidity at the end of the quarter, the balance sheet is looking incredibly strong and has gotten even stronger subsequent to quarter-end.
We're hoping to make some announcements on new meaningful transactions between now and the end of the year at the same time, our robust our robust organic growth profile and deep pipeline a powerful powerful optionality.
Speaker #4: With OR Royalties having paid down an additional 21 million in debt our improved financial position is a key as OR Royalties' corporate development team continues to be stretched to capacity across multiple transaction opportunities.
The <unk> or royalties the luxury to pick our spots and wait for the right deals.
Speaker #4: We're hoping to make some announcements on new meaningful transactions between now and the end of the year at the same time our robust organic growth profile and deep pipeline of palpable optionality affords OR Royalties the luxury to pick our spots and wait for the right deals as we are not just willing to sacrifice investment returns or deal economics just for the sake of adding gold equivalent unces.
As we are not just willing to sacrifice investment returns or deal economics, just for the sake of adding gold equivalent ounces.
As such we plan to adhere to our time tested strategy of disciplined capital allocation and the pursuit of high quality accretive streams and royalties that will bolster the company's current and near term Geo deliveries as well as cash flows for the benefit of our current and future shareholders.
And with that we'll conclude the formal part of today's call and we can move forward with the Q&A joelle.
Speaker #4: As such, we plan to adhere to our -tested strategy of disciplined capital allocation in the pursuit of high quality accretive streams and royalties that will bolster the company's current and near-term GO deliveries.
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, you'll hear a prompt that your hand has been raised Jewish did decline from the polling process. Please press star followed by the Q. If you are using a speaker phone. Please lift the handset before pressing any keys.
Speaker #4: As well as cash flows, for the benefit of our current and future shareholders. And with that, we'll conclude the formal part of today's call and we can move forward with the Q&A.
Speaker #4: Joelle?
Your first question comes from Fahad Tariq with <unk>.
Speaker #2: 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 touch tone phone.
Jefferies. Your line is now open.
Hi, Thanks for taking my question can you provide some more color on maybe the second half of this year and where the incremental <unk> sales are coming from.
Speaker #2: You will hear a prompt at your hand has been raised. Should you wish to decline from the polling process, please press star followed by the two.
We're modeling right now it looks like it's going to.
Speaker #2: If you are using a speaker phone, please lift the handset before pressing any keys. Your first question comes from Faheed Tariq, which Jeffries, your line is now open.
Maybe the lower end of the production guidance range, but just wondering what were maybe missing I think you mentioned Canadian <unk>, but is there anything else, we should be aware of thanks.
Speaker #3: Hi, thanks for taking my estion. Can you provide some more color on maybe the second half of this year and where the incremental GO sales are coming from?
Yes. Thanks.
So to answer your question, we've been quite explicit about again, 45% for each one and 55% for the second half most of that pickup will come from a few things firstly as you correctly pointed out and what I mentioned on the calls we expect Canadian mill Arctic to continue to perform at our internal budget or.
Speaker #3: The way we're modeling it right , it looks like it's going maybe trend to lower end of the production guidance range, but just wondering what we're maybe missing.
Speaker #3: I think you mentioned Canadian Mallarctic and Nandimi, but is there anything else we should be aware of? Thanks.
Speaker #4: Yeah, thanks Faheed. So to answer your question, we've been quite explicit about, again, 45% for H1 and 55% for the second half. Most of that pickup will come from a few things.
Better going forward given again the tailings deposition.
Is certainly on track or ahead of schedule and the second thing and probably the most notable thing is we have an expectation at Mentos blancos for the silver grade that throughput is obviously quite steady right now at 20000 tonnes per day, if you look at their disclosure, but what's been disappointing on our end is essentially the silk.
Speaker #4: Firstly, as you correctly pointed out in what I mentioned on the calls, we expect Canadian Mallarctic to continue to perform at our internal budget or better going forward given, again, the tails deposition is certainly on track or ahead of schedule.
Her grade not meeting expectations. So we do expect that the silver grades at mentos to be trending up over over the second quarter. We also obviously have the continued ramp up of tokens Encino and in the second half of this year <unk>. It was essentially putting putting the mine through ramp up as well.
Speaker #4: The second thing and probably the most notable thing is we have an expectation at Mantos Blancos for the silver grade the throughput is obviously quite steady right now at 20,000 tons per day.
Speaker #4: If you look at their disclosure, but what's been disappointing on our end is essentially the silver grade not meeting expectations. So we do expect that the silver grade at Mantos to be trending up over the second quarter.
That'll be a contributing factor to the second half.
The 50, 545% split.
Okay, Great and maybe just switching gears to corporate development you mentioned the team has stretched our capacity I'm.
Speaker #4: We also obviously have the continued ramp up at Tocontin Xeno and in the second half of this year Nandimi, who's essentially putting the mine through ramp up as well.
Just at a high level can you talk about if there's I guess philosophically a preference for producing versus development stage.
Speaker #4: That will be a contributing factor to the second half, again, the 55, 45% split.
Royalties just given that.
Compared to peers or has a.
A lower percentage of producing royalties.
Speaker #3: Okay, great. And maybe just as a way of switching gears to corporate development, you mentioned the team is stretched in capacity. Just at a high level, can you talk about if there's, I guess philosophically, a difference for producing versus development stage?
Yes, it's a great question. So obviously, our first preference when we do accretive deals on producing assets, but we've obviously seen in the market. There's been some pretty significant transactions and I encourage you to talk to those companies that have done those transactions, but those transaction from our perspective.
Speaker #3: Royalties just given that you know compared to peers or has I guess a lower percentage of producing royalties? Thanks.
Don't meet our economic hurdles for the most part so we have been involved in the majority of again the transactions that <unk> seen printed we have a number of filters, including again geopolitical the geopolitical profile that I keep talking about we have to make a decent hurdle for our shareholders. There are a lot of producing opera.
Speaker #4: Yeah, that's a great question. So obviously our first preference when we do accretive deals on producing assets but we've obviously seen in market there's been some pretty significant transactions and I'd encourage you to talk to those companies that have done those transactions but those transactions from our perspective don't meet our economic hurdles for the most part.
<unk> out there that our corporate development team is there's obviously involved in but it's incredibly competitive. So we just have to be very disciplined.
Speaker #4: So we have been involved in the majority of, again, the transactions that you've seen printed. We have a number of filters, including, again, the geopolitical profile that I keep talking about.
With again, what we're doing in terms of the economic returns for our portfolio and for our shareholders.
Speaker #4: We have to make a decent hurdle for our shareholders. There are a lot of producing opportunities out there that our corporate development team is obviously involved in, but it's incredibly competitive.
With respect to development assets, Yes, we are obviously involved in looking at a number of high quality development assets, but what I would guide you to is our corporate development team is really focused only on development assets that will actually make a difference within our five year outlook in other words, producing geos within the next five years.
Speaker #4: So we just have to be very disciplined with, again, what we're doing in terms of the economic returns for for our portfolio and for our areholders.
So we're not looking at something Thats very early stage that could take 15 years essentially to get through all the studies the permitting construction and ramp up so we really have focused our team on those type of high quality assets in the jurisdictions that I mentioned earlier that we considered tier one.
Speaker #4: With respect to development assets, yes, we are obviously involved in looking at a number of high quality development assets but what I would guide you to is our corporate development team is really focused only on development assets that will actually make a difference within our five-year outlook.
Speaker #4: In other words, producing GOs within the next five years so we're not looking at something that's very early stage that could take 15 years essentially to get through all the studies the permitting construction and ramp up.
That's very clear thank you.
Your next question comes from Cosmos <unk> with CIBC. Your line is now open.
Thanks, Jason and team for a very thorough presentation, Jason as you talked about the five year guidance.
Speaker #4: So we really have focused our team on those types of high-quality assets in the jurisdictions that I mentioned earlier that we consider tier one.
And as you talked about there should be a new five year guidance that should be presented to us.
Speaker #3: That's very clear. Thank ou.
Early next year, So you know.
Speaker #2: Your next question comes from Cosmos2 with CIBC. Your line is now open.
It's great that you've talked about some of the assets that have not or are currently not included in your five year guidance.
Speaker #3: Thanks, Jason and team, for a very thorough presentation. Jason, as you talked about the five-year guidance, and as you talked about, there should be a new five-year guidance that should be presented to us early next year.
Yes, My question is as.
As you look at your new five year guidance, what criteria do you consider or do you know the.
Is it timing doesn't need to be fully finance does it need to be fully permitted I'm just trying to get a gauge and you know to the extent that you can share with us what could get including for example, as you mentioned.
Speaker #3: So you ow it's great that you've talked about you know some of the assets that have not or are currently not included in your five-year guidance.
Spring Valley is not included and so number one criteria number two specifically what could get included to the extent that you can share with us.
Speaker #3: I guess my question is, you know as you look at your new five-year guidance, what criteria do you consider? Do you know is it timing?
Speaker #3: Does it need to be fully financed? Does it need to be fully permitted? I'm just trying to get a gauge and you know to the extent that you can share with us, what could get included?
Yes. Thank you Cosmos great question. So we are very vigilant when we're actually looking at our five year guidance and so the broad tight criteria because it is a case by case by asset is we have to have very good confidence and visibility that an asset will actually contribute geos over the next five.
Speaker #3: For example, as you mentioned, you ow Spring Valley's not included. And so number one criteria and number two, you know specifically, what could get included to the extent that you can share with us?
Five years, obviously permits are big factor to it having a company that's fully finance our visibility to fully finance solution also it would be.
Speaker #4: Yeah, thank ou, Cosmos. Great question. So we are very vigilant when we're actually looking at our five-year guidance. And so the broad criteria, because as case by case by asset, is we have to have very good confidence and visibility that an asset will actually contribute GOs over the next five years.
Incredibly important.
As we all know mining is a very very tough business. So we look at other factors such as social license.
Such is the track record of again, our partnering our invested companies.
Speaker #4: Obviously, permits are a big factor to it. Having a company that's fully financed or visibility to a fully financed solution also would be incredibly important.
Obviously companies that have assets in production currently and I would just pick out for example, her most of which is in our guidance of this year or sorry of our five year outlook again.
Speaker #4: You know as we all know, mining is a very, very tough business. So we look at other factors such as social license, such as the track record of, again, our nering or our investee companies.
Again, that's a multi asset multibillion dollar.
Company with very good financial breath, and tactical acumen. So those are the type of criteria that we look at when we will update the market in February as to again, what will be included in what we will not I will tell you right now more likely than not given what Cisco development has done around caribou more likely in the.
Speaker #4: Obviously, companies that have assets in production currently and I just pick out, for example, Hermosa, which is in our guidance of this year. Or sorry, of our -year outlook.
Speaker #4: Again, that's a multi-asset, multi-billion dollar company with very good financial breadth and technical acumen. So those are the types of criteria that we look at when we will update the market in February.
Not we're going be including some contribution of caribou.
Our five year outlook, and we'll have to see what happens with assets like spring Valley and others.
Speaker #4: As to, again, what will be included and what will not. I will tell you right now, more likely than not, given what a Cisco development has done around Caribou, more likely than not, we're going to be including some contribution of Caribou in our five-year outlook.
Because obviously they've got a record of decision, which is a very positive derisking component, but they are still looking to finalize even though the U S. XM bank as it provided term sheets for up to 835 million they still yet to finalize our complete financing plan. So there's a lot of factors, but I say that.
Speaker #4: And we'll have to see what happens with assets like Spring Valley and others. Because obviously, they've got the record of decision, which is a very positive de-risking component, but they're still looking to finalize even though the USXM Bank has provided term sheets for up to 835 million.
Two biggest ones are permitting.
The acceptability and social license on on site as well as again, having the financing in place for us to get complete confidence to include it in our five year outlook.
Speaker #4: They still yet to finalize a complete financing plan. So there's lot of factors, but I say the two biggest ones are permitting the acceptability and social license on site.
Great.
And maybe switching.
Switching gears, a little bit following up on Bob's question in terms of royalty acquisitions.
As we've seen.
You mentioned as well the activity has picked up and the size of these transactions have certainly picked up as well we've seen.
Speaker #4: As well as, again, having the financing in place for us to get complete confidence to include it in our five-year outlook.
Number of transactions hitting $1 billion Mark.
Speaker #3: Great. And maybe switching gears a little bit and following you up on Fahad's question here in terms of Royalty quisitions. As we've seen as you mentioned as well, the activity has picked up.
You know, how do you see or or royalty positioned for some of these bigger deals. It's 1 billion dollar deals.
Would that still be within your snack bracket and along the same topic.
Speaker #3: And the size of these transactions have certainly picked up as well. We've seen a number of transactions hitting the 1 billion dollar mark. You know, how you see OR Royalties positioned for some of these bigger deals is 1 billion dollar deals?
Is that kind of factor into a decision to increase your line of credit from 500, I believe 500 or 15 Canadian to.
<unk> 650.
Million adults.
Yes, it's a really good question. So the way I'd answer that cosmos, as we certainly need to pick our spots.
Speaker #3: Would that still be within your snack bracket? And along the same topic, did that kind of factor into a decision to increase your line of credit from 500, I believe 550 Canadian to US 650 million dollars?
Again, given where the commodity complex has gone and you've you've obviously seen a remark in some of the deals out there we have to be true to the economic returns that we're providing to our shareholders that doesn't mean that we've got $900 million of available liquidity to act on accretive transactions for ourself.
Speaker #4: Yeah, it's a really good question. So the way I'd wer that, Cosmos, is we certainly need to pick our spots. Again, given where the commodity complex has gone and you've obviously seen a remark in some of the deals out there, we have to be true to the economic returns that we're providing to our shareholders.
Yes.
So, let's just say the $1 billion type transaction and the right circumstance and the right return is not off the table for or royalties. We are working on a number of transactions are significantly less than that we also are in the flow with transactions at that again two to meet that the precedence that we've seen over the last couple of quarters.
Speaker #4: That doesn't mean we've got 900 million dollars of available liquidity to act on accretive transactions for ourselves. So let's just say the billion dollar type transaction and the right circumstance and the right return is not off the table for OR Royalties.
It really just comes down to returns that comes down to the security of the instrument and what we think is two to essentially complement what we believe we have the best portfolio of both growth and quality wise in the sector to complement that.
Speaker #4: We are working on a number of transactions, or significantly less than that. We also are in the flow with transactions that, again, do meet the precedents that we've seen over the last couple of quarters.
Great.
And maybe one last question going to Cisco development, it's great to see that they are you know.
Speaker #4: It really just comes down to returns. It comes down to the security of the instrument. And what we think is to essentially complement what we believe we have the best portfolio both growth and quality wise in the sector to complement that.
Announced a financing package here I guess, there's two benefits number one.
Oh it is.
Fully financed and number two it helps in terms of diluting.
Your ownership in the company as you mentioned.
Speaker #3: Great. And maybe one last question going to Cisco development. It's great to see that they've announced a financing package here. I guess there's two benefits.
Jason to 14 point about 14, 3% I guess my question is is that are you happy without 14, 3% or would you want that to go even lower and maybe if you can.
Speaker #3: Number one, now it is "fully financed." And number two, it helps in terms of diluting your ownership in the company. As you mentioned, Jason, to 14.3%.
I'll kind of touch on the longer term plans in terms of your holdings in the shares of Odell.
Yeah look it's a great question Cosmos, firstly, we'd like to acknowledging gratulate, the Cisco development team because obviously they derisk the Cariboo project significantly over the course of the last year getting their permits having an optimized feasibility study and finally getting the financing in place I think.
Speaker #3: I guess my question is, is that are you happy with that 14.3% or would you want that to go even lower? And maybe if you can you know kind touch on the longer term plans in terms of your holdings and the shares of ODEV?
We were very clear, especially when I came on that we were no longer going to be funding the Cisco development caribou.
Speaker #4: Yeah, look, it's great question, Cosmo. Firstly, we'd like to acknowledge and congratulate the Cisco development team because obviously they've de-risked the Caribou project significantly over the course of the last year.
Through it through equity placements or through any other type of financial arrangements given at that time, we own close to 50% of the equity in the company through the course of a series of equity dilution or equity offerings. We are now down and we'll be down when they close these financings to 14% we are quite happy with our.
Speaker #4: Getting their permits, having an optimized feasibility study, and finally getting the financing in place. I think we were very clear, especially when I came on, that we were no longer going to be funding the Cisco Development Caribou through equity placements or through any other type of financial arrangements, given that at that time we owned close to 50% of the equity in the company.
Position of 14%, we are quite optimistic and as I said do you believe that the caribou asset is a top quality Canadian.
Speaker #4: Through the course of a series of equity dilutions or equity offerings, we are now down and will be down when they close these financings to 14%.
Producing development opportunity and again, the big value for US, though obviously comes from the Big Chunky, 5% MSR. We have so to answer. Your question. We are currently very pleased with.
Speaker #4: We are quite happy with our position at 14%. We are quite optimistic, and as I said, we do believe that the Caribou asset is a top-quality Canadian producing development opportunity.
On the 14th.
3% position that will have we continue to have conversations with the Cisco development management team and so we were very well right now we're pleased shareholder and so.
Speaker #4: And again, the big value for us though obviously comes from the big chunky 5% NSR we have. So to answer your question, we are currently very pleased with you know the 14% position that we'll have.
That's where I would like to and that's.
So we're not looking in any fashion, so I'm very very clear, we're not looking in any fashion to divest or sell that block in the near term.
Speaker #4: We continue to have conversations with the Cisco development management team and so we're a y right now we're a pleased shareholder. And so that's where I'd like to end that.
Thanks, Jason for some very thorough answers and thanks for answering all my questions. Thank you.
Thanks Scott.
Ladies and gentlemen, as a reminder, should you have a question. Please press star one.
Speaker #4: So we're not looking at any fashion, so I'm very, very clear. We're not looking in any fashion to divest or sell that block in the near term.
Next question comes from Kenya, Jack Chris connect with Scotiabank. Your line is now open.
Speaker #3: Thanks, Jason, for some very thorough answers and thanks for answering all my questions. Thank ou.
Hi, Yes. Good morning, everyone. Thank you for taking my two questions.
The first one just following up on the.
On a scale of potential transaction. So we eliminate the billion dollar range what would you say most of the transaction.
Speaker #4: Thanks, Cosmo.
Speaker #2: Ladies and gentlemen, as a reminder, should you have a estion, please press star one. Your next question comes from Tanya Jakuskonek with Scotiabank. Your line is now open.
<unk> range.
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That's a great question Danielle look at what I will tell you is it ranges anything from a again somewhere around 35 million U S. All the way up to close to the 1 billion again, where we're working on multiple tran friend transaction opportunities.
Speaker #5: Yes, good morning everyone. Thank you for taking my two questions. The first one just follows up on the landscape for potential transactions. So if we eliminate the billion-dollar range, what would you say most of your transaction range size-wise would be?
And so can't give you any more specificity than that.
Speaker #4: That's a great question, Tanya. Look, what I will tell you is it ranges anything from, again, somewhere around 35 million US all the way up to, you ow, close to the billion.
Okay and would that also involves Jason.
Total.
Total size, including that that positions our equity positions included in these types of transactions as well as just normal screens and other.
Speaker #4: Again, we're ing on multiple transaction opportunities and so can't give you any more specificity than that.
Yes, you can assume that Tanya that whatever we provide in terms of financial instruments. The targets are there. The transaction size you can assume is all instruments, yes.
Speaker #5: Okay, and would that also involve, Jason, the total size including debt positions or equity positions included in these types of transactions as well as just normal streams and other?
And can I also assume that that could include corporate transactions in that billion dollar range.
Well again, the market has actually done a remarkable thing for all the.
Speaker #4: Yes, you can assume that, Tanya, that whatever we provide in terms of financial instruments, the targets are the transaction size you can assume is all instruments, yes.
Royalty and streaming companies with all appreciated significantly.
But I've always been very very deliberate and open with yourself and others. Firstly, we're open for business. Secondly, there has been obviously an uptick if you think of the Randgold sandstorm transaction on just the interest and let's say chatter out there in the marketplace around corporate transactions.
Speaker #5: And could I also assume that that could include corporate transactions in that billion dollar range?
We continue to look at opportunities, both corporately and through royalty and streaming transactions that would be accretive to our shareholders. So to answer your question, Yes that would corporate transactions are included in again the.
The range of dollars that we hope to deploy over the course of the next six months six to 12 months.
Okay. That's helpful. Thank you and then my second question then.
I haven't seen any additional filings from Elliot.
Has that been any update to what was then announced in April I, just haven't seen any further update and just wondering if you have it well.
It's a good question. So the last public disclosure that we see as Elliot owns $2 2 million or royalty shares.
And so I don't think until they actually publish something further it would not be appropriate for me to speculate beyond that.
And I didn't want you to speculate I just wanted to make sure that that all that's out there and I haven't seen anything else that I missed.
That's what we see as the last public disclosure that $2 2 million shares.
Okay.
Okay, great. Thank you so much those are all my questions.
Thanks Tanya.
There are no further questions at this time I will now turn the call over to Jason for closing remarks.
Thank you joelle as always if anyone on the call or listening to the replay has any additional questions insights observations.
On our business and our business strategy. Please do reach out to grant Heather and myself and we'd be more than pleased to provide more information.
About the bright future for our company and its shareholders.
With that we don't want to delay you any further knowing that we are on the last companies to report and so you can enjoy the remainder of the summer. Thank you very much.
Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines.