Operator: Good morning, ladies and gentlemen, and welcome to OR Royalties Q3 2026 results conference call. After the presentation, we will conduct a question-and-answer session. If you would like to ask a question, please press star followed by the number 1 on your telephone keypad. Please note this call is being recorded today, 12 November 2026, at 10:00 AM Eastern Time. I would now like to turn the meeting over to your host for today's call, Mr. Jason Attew. [Foreign language]
Operator: [Foreign language]
Jason Attew: Good morning, everyone, and greetings from Antofagasta. Our board and management team are in Chile this week, and the day before yesterday, we had the privilege of visiting Mantos Blancos, our second-largest GEO contributor this quarter. This year, Mantos Blancos celebrates 65 years of continuous operation, one of the emblematic mines of Northern Chile. So congratulations to everyone who has worked there over those six and a half decades. I also want to thank the Capstone team on site, Fernando, Felipe, Antonio, and Christian, among others, for their hospitality, their candor, and the quality of the dialogue. There is no substitute for standing on the asset to understand both its challenges and its opportunities. Couple housekeeping notes before we get going. Please note that the news release and the regulatory filings are available on our website, on EDGAR, and SEDAR+.
Jason Attew: If you are logging in to the webcast, we will advance the slides for today's presentation, which is also available in the investor section of our website. Please also note there are forward-looking statements in this presentation from which actual results may differ, and that the amounts presented and discussed will be in USD unless otherwise noted. Fred Ruel, our CFO, is with me and will take you through the Q3 numbers momentarily. Three things to take away from our third quarter of 2026. Firstly, the model did its job. We earned 20,237 GEOs, essentially the same as the 20,326 a year ago, and turned them into 26% more revenue and 21% more operating cash flow, because 96.8 cents of every revenue dollar is cash margin. In addition, adjusted earnings per share were up 29%. Second, the greenfield pipeline is now producing.
Jason Attew: Cuiú Cuiú, the heap leach mine in Brazil, poured its first gold on 10 September. In Armenia, at Amulsar, the heap leach asset poured its first gold on 10 October. Those, combined with Dalgaranga, which we announced last quarter, have provided our company and our shareholders exposure to 3 new mines, which puts the number of producing assets for our company to 25. Thirdly, our guidance holds. The 63,734 GEOs through 9 months, which is up 8% year-over-year, is tracking roughly to the midpoint of the 80,000 to 90,000 GEO annual guidance that we provided in February, and that is after absorbing the Barnat pit wall incident. What went the other way this quarter? Barnat first. Agnico completed remediation of the north wall during the quarter and resumed mining in the unaffected areas of the pit on 27 September.
Jason Attew: Their estimate of the impact is unchanged, 60,000 to 80,000 fewer ounces in the H2 2026, and up to 150,000 in each of 2027 and 2028. At our 5% royalty, that is roughly 3,000 to 4,000 GEOs out this year, and up to about 7,500 a year in 2027 and 2028. Those are our numbers, not Agnico's, and they are already inside our guidance. In the quarter itself, GEOs from Canadian Malartic came in modestly ahead of our own expectations, helped by Odyssey, where a record 391,000 tons were mined, and East Gouldie produced 27,250 ounces. Important to note that Agnico is hosting a capital markets day on 18 November, where we will be looking for more information on various assets, not only at Canadian Malartic, but also at Marban, AK, Upper Beaver, and Hammond Reef, all high-quality projects on which OR Royalties owns various NSR royalty coverage.
Jason Attew: Two smaller things that did not land when we said they would. In August, we told you first gold at Amulsar in September. It came on 10 October. At CSA, a shipment missed the quarter-end cutoff, so some silver and copper GEOs moved into the Q4. San Gabriel remains constrained by the back end of Buenaventura's plant. We expect improvement at a measured pace over the next 18 to 24 months, and we will not guide ahead of the operator. Scoring ourselves to what we told you in August, Murray Brook closing in the Q3, it closed in July. The share buyback, it is done. 1,007,496 shares bought for $29.1 million, as had proved what to be at our 2026 share price lows. Cuiú Cuiú commissioning in the Q4, first pour on 10 September, ahead of schedule. The Japan Gold option, exercised in September.
Jason Attew: It closed on 4 November. The 2030 outlook, intact, and it still excludes increased GEOs from the additional Spring Valley royalty coverage and the Murray Brook stream we announced earlier this year. Here is the one thing you will not find at any other royalty company. There are shafts being sunk under 4 of our assets, and this quarter, every one of them moved. At Canadian Malartic, the first phase of shaft sinking finished on 9 July at 1,586 meters, with shaft hoisted ore from East Gouldie planned for the Q2 2027. At Hermosa, South32 expects both the main shaft and the ventilation shaft will reach the primary production level this December quarter. At Upper Beaver, sinking past the halfway mark at 732 meters. Finally, at Island Gold, Alamos now expects to commission its shaft in mid-2027, a quarter later than planned.
Jason Attew: A shaft is the slowest, most capital-intensive thing in mining, and our partners are paying for every meter. That is what is bought and paid for, zero contingent capital, looks like in practice. Amulsar and Cuiú Cuiú are on slide 6. The one mechanic to understand on Amulsar, our stream accrues from first production, but deliveries to OR Royalties start once the operator repays its $150 million construction loan, and the accrued ounces then arrive in equal installments over the following 20 quarters. At current commodity prices, we expect first deliveries in Q4 2027 or perhaps Q1 2028. First royalty payments from Cuiú Cuiú are expected in mid-2027. Briefly across the rest of the portfolio, Mantos Blancos performed to expectations, as did CSA.
Jason Attew: However, on the latter, GEOs earned came in a little light with a shipment that just missed the end of Q3. Elsewhere, Dalgaranga continues to ramp up. Namdini has been performing to expectations, while GEOs from San Gabriel still remain challenged as Buenaventura continues to work through the bottlenecks at the back end of its plant. We will look to Buenaventura for specific guidance, but for those wanting more color, at its investors day, the day before yesterday, Buenaventura spoke to San Gabriel in some detail and signaled a measured ramp-up over the next 18 to 24 months. Our portfolio currently boasts 25 assets that are currently in production, with the 2 most recent additions already discussed, while first royalty and stream payments from both of those assets are expected over the coming quarters. 4 catalysts I would like to mention. Agnico Eagle's Capital Markets Day on 18 November.
Jason Attew: We expect execution detail on Canadian Malartic, Upper Beaver, and Hammond Reef. The full path to 1 million ounces, including the second shaft, we still expect in mid-2027. Windfall. On 30 October, Quebec issued Gold Fields a certificate of authorization and principal environmental approval, and Gold Fields has said that it expects a final investment decision by February 2027, along with its 2026 provisional results. Mantos Blancos, the phase 2 pre-feasibility study before Capstone's 1 February Capital Markets Day. And Island Gold, shaft commissioning in mid-2027, with underground rates targeted at 2,000 tons per day by year end. One line on Eagle. On 22 October, Boroo announced an agreement to acquire Victoria Gold, and with it, the Eagle mine, from the receiver, with closing targeted for 31 December, subject to court approval.
Jason Attew: We clearly saw the announcement from Boroo and their expectation to commit CAD 1.5 billion over the life of mine at Eagle. We are awaiting further information as the sales process advances toward closing in order to understand next steps. Obviously, the fact that the mine is moving from the hands of the receiver into a prospective operator is a positive step toward restarting production at Eagle. It is good for the Yukon, good for Boroo, and we will have more to say when the transaction closes. Moving to slide 9. This slide is the answer to the question we get most often. The 2030 outlook of 120,000 to 135,000 GEOs is roughly 50% growth over this year, and it requires no contingent capital. Every asset in the growth bar is either producing, in construction, or fully funded by its operator.
Jason Attew: The point I would draw your eye to is on the right. As that growth arrives, Canadian Malartic's share of our ounces falls from 38% of the 2026 guidance to about 21% of the 2030 outlook. Not because Malartic shrinks, but because Amulsar, Windfall, Cariboo, Hermosa, Spring Valley, South Railroad, among others, grow around it. The concentration this year's Barnat event exposed is diluted by the quality growth we have already paid for. On new business, the pipeline is extremely active, and our criteria have not moved. No NAV-dilutive deals and a focus on complementary royalty and stream assets to our already high-quality portfolio. We can afford that selectivity because our growth through 2030, as outlined here on slide 10, is already 100% bought and paid for, with zero contingent capital required. Beyond that, we do not comment on specific transactions until they are signed and announced.
Jason Attew: Fred, over to you for the financial review.
Fred Ruel: Thank you, Jason. Good morning, everyone. Revenues for the quarter were $90.2 million, up from $71.6 million a year ago, 26% growth on effectively the same amount of GEOs earned, driven by realized prices of $4,204 per ounce of gold and $64.47 per ounce of silver. Cash margin was $87.3 million, or 96.8% of revenues, up from $69.3 million, or 96.7% last year. Royalties, which carry essentially no cost, contributed $56 million of revenue. Streams contributed $34.2 million. Net earnings were $55.4 million, $0.30 per basic share, against $0.44 per share in the same period a year ago. Higher net earnings in Q3 2025 came from a non-cash accounting gain of $54 million on the reclassification of Osisko Gold Group from an associate to a non-associate.
Fred Ruel: At the time, the book value of the investment was revalued at its fair value on that date, which generated a non-cash gain. More importantly, however, Q3 2026 adjusted earnings were $53.9 million, or $0.29 per share, up 29% year-over-year. Cash flow from operations was $67.6 million, $0.42 per share against $0.34, so a 21% increase on a per-share basis compared to Q3 of last year. As I stated on the last conference call, the per-share line is the one we manage the business to. Turning to the balance sheet, we ended September with $77 million of cash and $228 million drawn on the revolving credit facility for a net debt position of $151.5 million.
Fred Ruel: Net debt increased slightly compared to the end of last quarter, as the draw funded the various capital deployment measures, as already mentioned by Jason earlier on the call, partially offset by $15 million in repayments against the facility during the quarter. Our returns to shareholders. The board maintained the quarterly dividend at $0.065 per share paid on 15 October, our 48th consecutive quarterly dividend, with approximately $310 million returned to our shareholder through dividends to date, and a further $0.065 per share of dividend has been declared payable 15 January 2027. Jason already mentioned the total of roughly 1 million shares repurchased and canceled during the period, which was all completed in mid-July. Year-to-date, the company has repurchased and canceled 1.6 million common shares under the NCIB.
Fred Ruel: At the end of September, the company received a notice from SolGold of its intention to exercise its buyback option under the royalty agreement to repurchase one-third of the company's NSR royalty on the Cascabel property for a cash consideration of $35 million. Following the buyback, the company will retain a 0.4% NSR royalty. The buyback is expected to be effective on 30 November. This $35 million would be in addition to a separate $30 million also to be received from Galiano during Q4, marking the first of two deferred payments to be received by OR Royalties, as outlined in our announcement with respect to the Gold Fields portfolio acquisition made back in February of this year. In total, that's $65 million in cash flow coming onto the balance sheet in Q4, over and above our expected normal course operating cash flows.
Fred Ruel: Our capital allocation framework is unchanged. Investment into new precious metals royalties and streams, as well as returns to shareholders through the dividend and buybacks, with ongoing debt repayment being considered normal course. All prioritized in whatever order creates the most net asset value per share. In H1 2026, that meant new asset acquisitions. In the final quarter of 2026, it could mean more acquisitions or opportunistic share repurchases. Our philosophy is simple. If we don't find and announce any accretive deals for our shareholders over this period, and no OR share blocks come our way, then we'll look to reduce the debt drawn from our facility. With our recently increased revolving credit facility, our balance sheet provides OR Royalties with ample capacity and flexibility for our upcoming capital allocation decisions. Thanks, everyone, and back to you, Jason.
Jason Attew: Thank you. That's the end of our remarks. We'll basically provide back to the operator to open it up for some questions and answers.
Operator: Thank you. Ladies and gentlemen, if you would like to ask a question, please press star 1. To withdraw your question, press star 2. Please limit yourself to 1 question and 1 follow-up. 1 moment, please, for your first question. Your first question comes from Tanya Jakusconek from Scotiabank. Please go ahead.
Tanya Jakusconek: Oh, okay. Good morning. Thank you for taking my questions. I am consolidating my 3 into 2. All right. Can I ask on just 2027 outlook? I know, Jason, you provided what you look like in 2030, and I know 2027 is supposed to be a bit better than 2026 on a GEO basis. Obviously, prices have an impact. Maybe we can just review the assets that are going to contribute on the upside, and what should we be thinking on the downside as well? I just want to make sure at least I have my production correct for 2027. On that as well, if I could ask about the debt. I think you mentioned that the debt repayment is lower in priority to share buyback and transaction opportunities, so I just want to confirm that. Then I have a second question.
Jason Attew: Yeah. No, thank you, Tanya. Good morning. Appreciate you participating in the call as always. 2027, as we have stated in the past, we do not give guidance until February of 2027 when we put our results out for Q4. However, as you can appreciate, and we talked about today, even from walking us from Q3 to Q4, in order to meet the midpoint of our guidance, Q4 has to do 5% more than Q3, roughly 21,300 GEOs. All the ingredients for the Q4 slight step-up are or will be in place for 2027. That is obviously CSA and Harmony getting more used to the asset and moving that forward. As I said in my statement, the CSA shipment that missed in September, a full quarter of that mining, or we will see that in Q4. The full quarter of mining back in the Barnat Pit.
Jason Attew: Namdini will have the full 2%, and the continued ramp-up at Dalgaranga. That is where we are very comfortable, the midpoint for a Q4 perspective, and a lot of the assets that I mentioned will obviously move into 2027. There are a number of our assets that are expanding, as you can appreciate. Some of those assets that you can get more detail from the operators that we expect in 2027 to move are Island Gold, Namdini, as I mentioned, Dalgaranga. San Gabriel is the one asset that, again, if you go to their investor presentation, it is a lot slower to ramp up than we expected when we first made the announcement. One of insurers is now basically guided to the next 18 to 24 months. It is going to be very cautious on the ramp-up there and QAQE.
Jason Attew: Possibly, as I mentioned in my opening remarks, it really will depend on the commodity price complex. If Amulsar, which did produce first gold on 10 October 2026, is successful in paying off the $150 million construction loan, it is possible that we will receive some of those GEOs in 2027. That is really all I can provide until we provide the full guidance in February of 2027, Tanya. We are always happy to have a conversation with you offline and talk you through where we see some of the catalysts in 2027.
Tanya Jakusconek: Okay. My second question is just on the pipeline. I always ask about this because, from moment to moment, these transactions appear, disappear. Can you just talk a little bit about whether we are still in that $100 million to $300 million range that you talked about last quarter in terms of opportunities? Is that what you are seeing, or are we going to the $500 million to $700 million or $1 billion? A couple of them are out there on that. How would you characterize what you are seeing, what the structure of the deals you are seeing, and whether you have changed any thoughts about how you would structure your own contract with this environment?
Jason Attew: It is an excellent question, Tanya. Please keep asking it, because quarter over quarter, things do change, as you can appreciate. What we can tell you is we are aware of a number of $1 billion-plus streams that are in various stages of processes with various operators around the world. As it relates to OR Royalties, as you can appreciate and you know, we have just over $1 billion of available liquidity. Our balance sheet certainly can do those larger transactions. The question is whether we should. The honest answer is that $1 billion, $1.5 billion of upfront capital in a single auction is very unlikely for us, because anything of quality, our larger peers, as you can appreciate, have a cost of capital advantage at those sizes.
Jason Attew: We have spent at least the last three years proving that we will not pay above our hurdle to win a process and essentially have a winner's curse. That discipline is why the returns on what we did with Namdini, Spring Valley, Murray Brook, Gold Fields portfolio are where they are, and we think they are peer-leading returns. Now, I will provide some distinction around billion-dollar deals, because billion-dollar deals can come in two formats. They can come in a headline value or, as I mentioned before, upfront capital, and they are very two different things. A $1 billion development stream funded against construction milestones over a two or three-year build is, in cash terms, as you can appreciate, $200 million to $400 million a year.
Jason Attew: If we match those to a project span protected by completion tests and security, that is a transaction we can do inside this facility without issuing a share.
Jason Attew: And it is a structure where we believe, as a mid-cap, our speed and flexibility are worth more to a counterparty than our larger peers' balance sheet. But to answer the question, a billion-dollar headline, perhaps, yes. A billion-dollar, billion-and-a-half-dollar check on day one, probably not. But the core for us of our pipeline is still, as I mentioned on the conference call, and our Q2 is somewhere between $50 million and $300 million. We still want to obviously be very focused in precious metals, Canada, US, the Australias. The ticket sizes in the market may have gone up, as you correctly pointed out, but we will continue to be very disciplined on our returns and very focused on the per-share metrics that you are aware of for our shareholders.
Tanya Jakusconek: Jason, just to complete that, I asked about the change in the structure of the deals. As you think about this, because it is a dynamic environment, are you thinking, when I say structure of the deals, there is always a stream component, there is an equity component, a debt component, and now I have seen increase in land package. How would that be different from what you are looking at, or maybe you are looking at something else?
Jason Attew: Yeah, so you are absolutely on point. I mean, the structure has evolved over the course of time, and there are many transactions that involve, as you say, all the components. So we are looking at transactions that effectively do fully fund our counterparties through the various instruments that you mentioned. As long as, again, we have the appropriate security that we are comfortable with and we get the appropriate return for our shareholders, we are comfortable in providing those type of packages to counterparties.
Tanya Jakusconek: Okay. Thank you so much for taking my questions, which I hope I squeezed into two.
Jason Attew: Thank you, Tanya. Have a great morning.
Operator: Your next question comes from John Tumazos from John Tumazos Very Independent Research. Please go ahead.
John Tumazos: Thank you for taking my question. Looking at your 2030 forecast and the development and exploration projects beyond your forecast, I guess Cascabel is the biggest of those prospective future contributors. Which ones do you think are number 2, 3, and 4 that might come in between 2030 and 2035?
Jason Attew: Yeah, it is a really good question, John, so thank you for that. We do have a long tail of optionality, obviously, within our portfolio. We do see things from 2030 to 2035. We have a nice royalty in an asset called Casino, as you are aware, into the Yukon. I think the biggest driver for us, though, comes back to our major cornerstone asset in Canadian Malartic. The growth to 2030 does not include the second shaft, as I think you are aware, and you are going to meet with the Agnico people next week. The second shaft and the expansion and their journey to 1 million ounces, which also includes, as I said in my opening remarks, a number of assets we have royalties on, that comes next decade. So you can think of those two assets as the biggest single drivers of our growth beyond 2030.
Jason Attew: There is obviously Cascabel that is a very It is a world-class asset, as I think you know, and now it has an operator there that really is moving this forward. We expect, again, in next decade, we will be receiving significant GEOs from it.
John Tumazos: Thank you. Once again, you do not need to contribute any money for those because you have already bought in.
Jason Attew: Everything is bought and paid for. There is no contingent capital associated with the assets that I mentioned.
John Tumazos: How about the lithium in the north of Quebec? You did not mention that as one of the big early ones. Is that moving a little bit more slowly?
Jason Attew: You are talking PMET's asset, the old, what was named Corvette?
John Tumazos: The company used to be called Patriot, but now it has a big, an Aboriginal name that I cannot pronounce.
Jason Attew: Shaakichiuwaanaan. Yes.
John Tumazos: Yeah, you are better than me.
Jason Attew: So yeah, that one, again, that one in our estimation will come in. Again, careful here not to. The operator has obviously got guidance out there as well. You can follow that in terms of when they expect to actually get to production. We have not put it by design in our 2030 outlook. We could, and it is in our optionality bar from 2030 to 2035. So there is an expectation that, yes, we will be getting GEOs or lithium product when that is up in operation. Obviously, you have probably heard me say before, Quebec, I believe, is the best mining jurisdiction in the globe. It is not only got all the components with respect to the geology, but it has also got the talent, it has got the regulatory environment, it has got a really conducive environment for projects to move forward.
Jason Attew: Clearly, this is a critical mineral, but we have not put it, to be very clear, in our 2030 outlook. That may change as things get progressed by PMET, but right now, it is not in there, and it continues to sit in the optionality bar of 2030 to 20 or 2030 and beyond.
John Tumazos: Horne 5 is another one you did not mention. Eagle, where miraculously Eagle looks like it could come in 2029 or 2030.
Jason Attew: Well, maybe I will start with Eagle first, because that is obviously quite topical, and we have seen the news, and I mentioned it, Boroo has agreed to buy Victoria Gold, and they are committing or expect to commit CAD 1.5 billion. Our 5% NSR interest, it is a registered interest in the property. It is an interest in the land, which is, from a security perspective, what you want to have in these situations. What we can tell you and what I said in remarks, we are obviously following the court process very closely. I think it is inappropriate for us to comment at this stage while it is before the court. The royalty runs with the land, and as far as we are aware, every party that was in the process has treated it that way.
Jason Attew: So, and you are also aware we took the impairment in 2024. We wrote it down to effectively zero. Anything that might happen within Eagle, the Yukon, is just pure upside for ourselves. We are obviously following what is going on. It is important to us, and we will report back when we can and when it is appropriate. With respect to Horne 5, as you know, that is obviously a very, very nice asset in Québec. It is still subject to permits. I would suggest you talk to that management team around when the expectation of permits is going to come in, but it is just significant upside for us if and when the permits do come to Falco.
John Tumazos: Thank you, and congratulations. I am happy to be a shareholder.
Jason Attew: Thank you, John. Appreciate your support.
Operator: Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star one. Your next question comes from Derick Ma from TD Cowen. Please go ahead.
Derick Ma: Thank you. Branching off Tanya questions, liquidity for the entire royalty industry has continued to rise despite very strong deal execution over the past 12 months. If we were to bifurcate the market into sub-billion dollar deals alone, is there enough supply in the market for all the cash that is being generated by the royalty companies, considering especially that not all the payments are upfront? Or does demand kind of outstrip supply without these mega transactions and liquidity for the group will continue to grow? Sorry, that was a bit long-winded.
Jason Attew: Yeah, no, excellent question, and thank you for that, Derek. What I would say is obviously where the commodity complex is, every single one of the seniors, mid-cap, and junior royalty companies are doing incredibly well. Our margins have obviously expanded. Fixed costs for our companies are pretty stable. We are not subject to the inflationary components for the operating partners that we have. What I would tell you is in terms of the opportunity set, it is very, very good. I can just tell you what we are seeing, and I do believe that the validation by BHP on the Antamina transaction has really got the attention of not only the senior diversifies, but every company out there that has a secondary byproduct in precious. So I do believe, I talked about our core pipeline being 50 to 300. We certainly are seeing ample opportunity.
Jason Attew: Our corporate development and our technical team are visiting assets all over the world. From our perspective, from an execution, it will really come down to, again, cost of capital and making sure that we are doing right by our shareholders and doing it now with creative deals. So the short answer is yes, there is plenty of opportunity that we see. We think there is enough opportunity for all the parties, especially the five large ones, the large caps and the two mid-caps that you need to be aware of. So we couldn't be more pleased with the opportunities out there, but we just continue to be disciplined as I have preached for many years.
Derick Ma: Okay, thank you. Good luck.
Jason Attew: Thanks, Derek.
Operator: There are no further questions at this time. I will turn the call back over to Jason Attew for closing remarks.
Jason Attew: Thank you, operator, and really do appreciate everybody's time. Again, we are going to sign off from Antofagasta here, but the last thing that I would say is if anyone on the line has any questions, we take a lot of pride. Any questions, comments, observations, or insight on our business, we take a lot of pride in this management team having full access to our owners. So please do reach out to Grant, Heather. You will have their contacts, or you can find them on the website, and we look forward to further engagement. Thank you very much for your time this morning.
Operator: Ladies and gentlemen, this concludes today's conference call. You may now disconnect. Thank you.
