OR Royalties Inc (LTS:0VBE)

Q2 2026 OR Royalties Inc Earnings Call Transcript

Aug 6, 2026 / 02:00 PM GMT

Release Date Price: $32.23 (+0.50%)

Transcript

Key Points

Positve

OR Royalties Inc (OR) reported strong Q2 2026 results with revenues of $97.8 million and operating cash flow of $83.2 million, both up 62% year-over-year, driven by a 5% increase in gold equivalent ounces (GEOs).
The company's business model demonstrated high efficiency, converting $96.8 of every revenue dollar into cash margin, which management highlighted as the best in the sector.
OR Royalties Inc (OR) successfully closed the Goldfields royalty portfolio and Spring Valley acquisitions for $335 million, funded largely via its revolver, and subsequently closed the Murray Brook stream in July, expanding its asset base.
The company maintained its 2026 guidance of 80,000 to 90,000 GEOs and its 2030 outlook of 120,000 to 135,000 GEOs, despite the Canadian Malartic pit wall event, as the impact is considered manageable and the long-term asset value remains intact.
OR Royalties Inc (OR) increased its quarterly dividend by 18.2% to $6.5 per share, marking its 47th consecutive quarterly dividend, and repurchased approximately 1.6 million shares year-to-date, demonstrating a commitment to shareholder returns.
The company's portfolio is growing with new producing assets, including the first royalty payment from Dalgaranga and a significant contribution from the increased 2% royalty at Nandimi, with the 24th producing asset (Coyu Project) expected to start commissioning in Q4 2026.
OR Royalties Inc (OR) expanded its credit facility, increasing the accordion from $200 million to $350 million and extending the maturity date to August 2030, providing ample liquidity for future opportunities.
Management highlighted a robust pipeline of creative opportunities, including potential billion-dollar transactions in precious metals, while maintaining a disciplined focus on tier-1 jurisdictions and value-accretive deals.

Negative

OR Royalties Inc (OR) faces a near-term reduction in GEOs due to the rock mass movement at Canadian Malartic's Barnat Pit, with approximately 3,500 fewer GEOs expected in 2026 and up to 7,500 fewer in each of 2027 and 2028, totaling about 18,500 GEOs over three years.
The company's second-half 2026 production is expected to be modestly lighter than the first half, primarily due to the Barnat Pit impact, despite ramp-ups at other assets like Nandimi and Dalgaranga.
OR Royalties Inc (OR) experienced deferred revenue from CSA concentrate sitting on site at quarter-end due to transport logistics, delaying some silver and copper GEOs into the second half.
The company noted lower GEO deliveries from Mantos Blanco in Q2 compared to Q1, as silver grades were front-end loaded earlier in the year, contributing to a softer quarterly performance.
Net debt stood at $139 million at quarter-end, with $215 million drawn on the credit facility, and management indicated that debt reduction would be a normal course of action if no new deals are pursued, potentially limiting near-term capital flexibility.
The Canadian Malartic incident also resulted in a fatal accident in April, leading to a six-day mill shutdown, which, while not directly impacting OR's financials, highlights operational risks at a key asset.
The company's concentration risk remains a concern, as Canadian Malartic accounts for approximately 25-30% of net asset value, and any further operational issues could disproportionately impact OR Royalties Inc (OR)'s performance.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

OR.TO - OR Royalties Inc
Q2 2026 OR Royalties Inc Earnings Call
Aug 06, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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1.

Good morning ladies and gentlemen, and welcome to the or royalties due to 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 that this call is being recorded today, August 6th, 2026 at 10 a.m. Eastern time, I would now like to turn the meeting over to our host for today's call, Mr.

Jason Etu.

B.

Iposing.

Jason.

Good morning, everybody, and thank you for joining us on a busy earnings day.

Please note that the news release and regulatory filings are available on our website and

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