OR Royalties Q1 2026 Earnings Report

OR Royalties EPS Results

• Actual EPS: $0.40
• Consensus EPS: $0.34
• Beat/Miss: Beat by +$0.06
• One Year Ago EPS: N/A

OR Royalties Revenue Results

• Actual Revenue: $102.83 million
• Expected Revenue: $103.27 million
• Beat/Miss: Missed by -$437.00 thousand
• YoY Revenue Growth: N/A

OR Royalties Announcement Details

• Quarter: Q1 2026
• Date: 5/6/2026
• Time: After Market Closes
• Conference Call Date: Thursday, May 7, 2026
• Conference Call Time: 10:00AM ET

OR Royalties (NYSE:OR) PLC (NYSE: OR) is a closed-ended investment company that specializes in acquiring and managing royalty interests in life science and pharmaceutical products. The company provides capital to biotechnology, specialty pharmaceutical and medical device companies in exchange for a share of future sales revenues. By focusing on royalties secured against marketed products, OR Royalties aims to deliver income and growth potential while minimizing the development and commercialization risks typically associated with direct equity stakes.

The company’s core activities include sourcing royalty transactions, structuring bespoke financing solutions and actively monitoring a diversified portfolio of assets. OR Royalties seeks opportunities across a wide range of therapeutic areas—including oncology, rare diseases and specialty care—and partners with established and emerging developers. Its investment mandate covers products already on the market as well as late-stage assets nearing regulatory approval.

Founded in 2021 and headquartered in London, OR Royalties has assembled a team of specialists with experience in pharmaceutical licensing, intellectual property valuation and clinical development. The portfolio spans multiple geographies, with royalties derived from sales in the United States, Europe and select international markets. This geographic diversification, coupled with exposure to different product life cycles, underpins the company’s strategy to generate steady, long-term cash flows for shareholders.

Governed by an independent board and led by a management team with deep transaction and clinical expertise, OR Royalties continues to expand its holdings through disciplined deal sourcing and rigorous due diligence. The firm’s transparent royalty model and focus on revenue-generating assets position it as a dedicated vehicle for investors seeking targeted exposure to healthcare innovations without direct operational involvement in drug development.

OR Royalties Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record Q1 results: OR Royalties earned 22,740 GEOs, reported record quarterly revenue of $102.8 million, a peer‑leading cash margin of 96.8% and materially higher net and adjusted earnings versus Q1 2025.
• Positive Sentiment: Shareholder returns maintained and increased: the company paid its 46th consecutive quarterly dividend and the board approved an 18.2% raise to $0.065/share
• Positive Sentiment: Accelerated, disciplined M&A activity: management committed ~$438.5 million to acquire 13 royalties across four announced deals (including Namdini, the Gold Fields portfolio, Spring Valley and Murray Brook), highlighting above‑average sell‑side IRRs (e.g., Murray Brook ~21.6%).
• Neutral Sentiment: Balance sheet evolution: OR was debt‑free with ~$94.9 million cash at quarter end, but after funding recent and imminent transactions management expects ~$230 million drawn on the revolver and ~$30 million cash remaining, and says liquidity remains sufficient to pursue opportunities.
• Negative Sentiment: Near‑term GEO headwinds flagged: the company expects a weaker Q2 GEO profile due to Harmony’s ~1‑month suspension at CSA and anticipates a stronger H1 / modestly softer H2 from Mantos Blancos, creating short‑term production volatility.

Good morning, everybody, and thanks for being on today's call. Procedurally, I'll run through our prepared presentation, and then we'll subsequently open up the line for question and answer session. 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. Please note that there are forward-looking statements in this presentation from which actual results may differ. Please note that all amounts presented and discussed will be in US dollars unless otherwise stated. I'm joined on the call this morning by Fred Ruel, the company's Vice President, Finance and Chief Financial Officer, amongst others indicated on slide 3. When looking at OR Royalties' 1st quarter of 2026, it's safe to say that the company is off to an impressive start.

OR Royalties earned 22,740 gold equivalent ounces in the 1st quarter of 2026, a great start to the year as it relates to our annual delivery guidance of 80,000-90,000 gold equivalent ounces. As a reminder, the company is expecting fairly balanced quarter-over-quarter GEO performance through the rest of the 2026 calendar year. Propelled by the strong performance from our asset base, as well as robust precious metals pricing during the period, OR Royalties achieved record quarterly revenues of $102.8 million, along with peer-leading cash margin of 96.8%. OR Royalties ended the 1st quarter with $94.9 million in cash, and as at the end of March, we were also completely debt-free.

We'll revisit the balance sheet later on in today's formal presentation, as there have been some key movements subsequent to the quarter end that we'll be providing more information on. With respect to our ongoing commitment to return capital to shareholders, the company declared and paid its quarterly dividend of $0.055 per share in the first quarter, marking its 46th consecutive quarterly dividend with over $288.9 million returned to shareholders to date from these distributions. Subsequent to quarter end, OR Royalties' board of directors approved an 18.2% increase to the base quarterly dividend to $0.065 per common share payable on July 15, 2026 to shareholders of record as of the close of business June 30, 2026.

The dividend increase itself is a testament of the confidence we have in the consistency, predictability, and the anticipated growth of the current and future cash flows underpinning our business. The 2025 calendar year represented a period of time during which OR Royalties chose to stay on the sidelines and exercise discipline from a corporate development perspective, as it was a period marked by rapidly increasing commodity prices, in most cases, and as a group, we just couldn't get there on the values being paid at the time or the lack of the security in some of the deals we saw got printed last year. That said, our activity picked up significantly in the first quarter of 2026, with the company having announced three new transactions during the period, acquiring 13 new royalties and committing to deploy $438.5 million.

More importantly, we proved that we could get deals done at good rates of return and appropriate security, and thus completing these transactions, as well as a fourth one announced just a few weeks ago, at above average industry returns. We'll come back to all of these specific deals shortly. Even with the increased activity we've announced year to date in terms of new investments, OR Royalties' corporate development function remains very busy. There are a lot of prospective deals we are currently working on. Our philosophical approach to these new investment remains unchanged. Given we're often making these investments on assets with 15, 20, 25-year mine lives, we're not willing to settle for NAV dilutive instruments, nor are willing, we're willing to sacrifice having appropriate security in all our streams and royalties.

As many of you on the line today know well, unlike many of its peers, OR Royalties has the luxury of being able to walk away from any transactions that doesn't fit this criteria, given our peer-leading near to medium-term organic GEO growth profile. We'll now pivot to the company's financial performance for the first quarter of 2026. As previously noted, quarterly revenues were a record for the company and effectively tracked both increased GEOs earned and higher precious metals prices during the period when compared to the first quarter of 2025. Q1 2026 net earnings of $0.39 per basic common share for the year represented a substantial increase over the first three months of 2025. Most importantly, the first quarter saw a major improvement in cash flow per share versus the same period last year.

Finally, positive annual adjusted earnings of $0.40 per basic common share represents 125% increase over the adjusted earnings announced by the company back in Q1 2025. As of May 6, the company had 24 producing assets with the vast majority of our key contributing royalties and streams coming from what we define as Tier 1 mining jurisdictions at just under 75% in aggregate, and that includes GEOs from Canada, the U.S., and Australia. If we were to include Chile as a Tier 1, we'd be closer to 90%. The list on slide 6 has 24 producing assets, and as we've now included Buenaventura San Gabriel Mine as our transaction to acquire the Gold Fields portfolio is expected to close in the coming days.

Recent notable additions to this list include Dalgaranga, as we re-received our first notice of payment from Ramelius in late April, with first payment expected any day now. As well as Agnico Eagle's amalgamated Kirkland or AK deposit located at Macassa, on which OR holds a 2% NSR royalty. Agnico noted just last week that the mine has now officially gone to produce 40,000 ounces of gold this year at AK. Moving to slide 7 and looking at the commodity breakdown for Q1 2026. Over 97% of our GEOs earned came from precious metals, gold at 57.5% and silver at just under 40%, with the remainder coming primarily from copper.

Stronger silver prices realized during the quarter versus our budget provided a boost in terms of both GEOs earned, as well as the direct exposure to the metal versus last year's 30% of GEOs and revenue having come from silver. No matter which price deck you're using today or for tomorrow, OR Royalties provides investors with material relative direct exposure to the white metal. Agnico Eagle's Canadian Malartic continued to deliver in the first quarter, performing well versus expectations, primarily as a result of higher grades in ore tons at the Barnat Pit. The higher gold grades in ore tons were a result of continued mining and mineralized zones near historical underground stopes in the Barnat Pit. In additional good news, production from the East Gouldie ramp commenced in March of 2026. All of Agnico's development and construction activities at Canadian Malartic continue to progress on schedule.

Construction of the 1st loading station is scheduled for 1st production through shaft number 1 in the 2nd quarter of 2027. Elsewhere, exploration drilling continued to yield positive results in multiple areas of the Odyssey Mine, and Agnico now has a combined 35 drill rigs turning both at Malartic as well as regionally. As reiterated again in their Q1 update last week, Agnico continues to advance the transition to underground mining at Malartic with the construction of the Odyssey Mine, including the development of the Odyssey shaft number 1. They also identified the pilot hole for the 2nd shaft and are also advancing internal evaluations on 3 projects that together have the potential to increase annual throughput. A study covering all 3 of these projects is expected from Agnico in September of this year.

As many of you also follow Agnico Eagle, it is notable that the Chief Operating Officer, Dominique Richard, mentioned in their conference call last week that the life of mine at Malartic, quote-unquote, "Will probably extend to 2060," which is well beyond the last stated life of mine, which to remind people was 2042. At Mantos Blancos, sulfide mill throughput was strong in the first quarter, despite a 4-day planned maintenance shutdown, having averaged 19,661 tons per day versus a nameplate of 20,000 tons per day. Based on our current understanding of Capstone's plans for 2026 and anticipated silver grade variability between now and the end of October, Mantos Blancos is expected to have a stronger first half as it relates to OR's GEOs earned, and thus a modestly softer second half of the year.

Touching on CSA and based on our previous disclosure, the asset basically performed to budget in the first quarter. Also in line with Harmony's public disclosure on CSA's copper production guidance through the end of their financial year in late June 2026. We're anticipating a weaker quarter in terms of GEOs for our second quarter, owing to Harmony's disclosed 1-month suspension at CSA to complete necessary structural steelwork underground. As it relates to Harmony's guidance for its fiscal year 2027, as well as our partner's longer term plans at CSA, we'll all have a better understanding later this summer with their FY 2027 copper production guidance announcement and an updated life of mine plan in August. Other notable mentions included a strong quarter at the Sasa Mine in Macedonia, as well as the early benefits of our 2% royalty interest at Namdini in Ghana.

This provides a good segue to slide eight. The first two slides that touch on our four most recent transactions, all of which have been announced year to date in 2026. After our quiet 2025 in terms of new investments, I'm delighted today to spend some time discussing all of our recent activity. We actually already discussed these first two transactions on our last quarterly conference call, given that they'd already been announced prior to mid-February, but it's worth circling back to provide a bit more context. At that time, we called Namdini a classic no-brainer, and we obviously continue to stand by that claim. The upfront $98.5 million closed in the first quarter of 2026 and was funded entirely with cash on hand, meaning that our end-of-quarter cash balance is reflective of having paid for the additional 1% NSR at Namdini.

Similarly, on our previous conference call, we also expressed our excitement associated with having just announced the acquisition of the portfolio of eight royalties from Gold Fields for $115 million, anchored by a 1.5% NSR royalty on Buenaventura's producing San Gabriel gold and silver mine in Peru, an operating mine which just received its key final permits last week, allowing the operations to really start increasing throughput later this year. The key theme on this page was that Namdini was completed 100% on a bilateral basis, while the Gold Fields acquisition truly demonstrated the creativity of our corporate development team to gain an edge in what was a competitive process.

With respect to the latter, while we were able to leverage our relationship and goodwill with Gold Fields given our partnership at Windfall, in addition to the producing San Gabriel royalty, our team sees very good value in the 2.25% NPI over the Aurora Discovery in B.C. and the 2% NSR on the Paris project in Western Australia, which incidentally is located just 12 km southeast of Gold Fields' iconic St. Ives mine. This asset also recently attracted the discovery management team from Dalgaranga. We expect to see strong exploration results in the near term out of these projects. We mentioned in our press release last night that we're confident of completed deals that have been described by sell-side analysts as above-average industry returns.

Flipping to slide 10, we are illustrating our two most recent transactions in Spring Valley and Murray Brook, both of which were not disclosed on our last call, and the latter of which was actually announced in mid-April, so subsequent to the first quarter's end. Spring Valley was in some ways very analogous to Namdini in that we took the opportunity to effectively double down on an asset within our portfolio, and one that was already serving as a key growth driver for our royalties when looking at our 5-year outlook. While the transaction was once again a public process, we were able to leverage our institutional knowledge on the asset.

This transaction closed in April, and as of such, we now own a 6% NSR royalty versus 3% previously on the core claims at Spring Valley, meaning once this project goes into production, estimated in 2028, and after 500,000 ounces of gold have been recovered, Spring Valley will be generating approximately 10,000 GEOs per annum to our account, with our first meaningful payments expected in the 2030 calendar year. The average sell-side IRR at spot prices for this fully funded and fully permitted development asset in a Tier 1 mining jurisdiction was 8.6%. Finally, with Canadian Copper's Murray Brook, we proved that sometimes even smaller deals can come with outsized positive returns. Full credit to our internal team for identifying this under-the-radar opportunity early on, an opportunity that checked all of our boxes.

Future precious metal GEOs from a near-term brownfield restart in a Tier-1 mining jurisdiction with major infrastructure and labor advantages. First production for the Murray Brook deposit processed through the pre-existing Caribou mill could occur in late 2028 or early 2029, thanks to what should be an accelerated permitting timeline. While the total transaction value was only $28 million, it provided a crucial piece of financing that has allowed our new partner funding through to production. The calculated average sell-side IRR for Murray Brook was a formidable 21.6%. In summary, we had been previously conveying that OR Royalties had been patiently waiting for the right deals, and based on what I've just outlined, I think we proved to both ourselves and our shareholders that our patience has paid off.

We'll continue to take the exact same philosophical, disciplined approach to all additional new investments that we hope to complete in 2026 and beyond. How does this all stack up?

Moving to slide 10, where we present the same slide you've seen many, many times, it is very much worthy to note that while our 2030 5-year outlook, originally out in February 2026, took into account future GEOs from the 2% at Namdini and the assets acquired from Gold Fields, including San Gabriel, what the range does not include any additional potential GEOs expected from both our additional coverage at Spring Valley as well as Canadian Copper's Murray Brook project, meaning that there is already confirmed contingency as well as potential upside built into our published 2030 range. Let's move to slide 11, which highlights all the greenfield projects currently in construction and/or advanced development that are currently included in our 5-year outlook.

With the caveat that the approximately 10,000 GEOs annually from Spring Valley represents the increased royalty coverage, only half of which is in our official 2030 guidance range, as just discussed. In the not included section, I'll point to a few names. First, there is Canadian Copper's Murray Brook, with that transaction expected to close in the next two weeks. Second, more positive progress continues to be made at Agnico Eagle's Upper Beaver project, with our partners still guiding for a 2030 startup. Given the recent comments by Agnico, we feel that we might see some GEOs in 2030. Third, finally, it was announced last week that Baru Gold has entered into a 90-day exclusivity period, with PricewaterhouseCoopers acting as a receiver in respect to its proposed acquisition of the Eagle Gold Mine in the Yukon.

At OR Royalties, this is an exciting announcement that could result in potential future upside to our 5-year outlook. A 5% NSR at a Canadian mine that has a good potential for restart before the end of the decade could be additive to our already impressive growth profile. Moving to slide 12, I just wanted to flag a few key items of note on our catalyst page based on some very recent updates provided by our operating partners. First, Gold Fields is now expecting to complete its permitting process and associated finalized First Nation IBA work for Windfall in the third quarter of this year. This keeps the project on track for Gold Fields' publicly disclosed base case timeline, which anticipates first production from Windfall in the first quarter of 2029.

Second, last week, South32 provided a comprehensive update on its Hermosa-Taylor development project in Arizona, which is now expecting to see first production from the Taylor Mine in the first half of 2028, previously mid-2027, and ramping up to full throughput and production rates by early 2031, previously mid-2030. The most important takeaway, however, is that our partner remains very much committed to what is eventually set to become a cornerstone asset within its broader portfolio. Finally, we'll end the formal part of the presentation on slide 13, which outlines the current state of OR Royalties' balance sheet.

As at the end of March, we were completely debt-free and held approximately $95 million in cash on the balance sheet, which, as previously noted, accounted for the closing of the Namdini Part 2 transaction, along with our associated initial payment of $98.5 million funded with cash. You'll also notice we were active in our buyback program in Q1. As you can see in the cash flow waterfall, we bought back and canceled another $12.9 million of OR shares. Worth noting, however, is that the $168 million Spring Valley transaction closed in April of 2026, and that was funded by a drawdown from the credit facility.

Along the same lines, we're expecting the aggregate transactions with Gold Fields to close in the coming days, and that $167 million will also be funded by a combination of balance sheet cash and amounts drawn from the credit facility. The Murray Brook transaction is also imminent, with a total of $9 million of initial cash outflows from OR to be funded with cash off the balance sheet. The long story short, after closing and funding all these transaction, drawn debt on the facility should stand at approximately $230 million, with our cash balance being at just over $30 million. Needless to say, after all this, we still have sufficient liquidity to execute on new streams and royalties as they present themselves over the next months and years.

Our corporate development pipeline remains robust, our core focus amidst this opportunity set remains on adding GEOs today and/or GEOs that will contribute to our already peer-leading growth profile between now and 2030. We have a strong desire to continue to grow the business by completing new and accretive transactions, that remains our number 1 priority. As we've said before, here at OR Royalties, we're not looking to achieve these goals at any cost. With that, I'd like to thank everyone for listening today. We'll now open up the line for questions as well as questions posted on the webcast. If we don't get to all the questions on the line, we'll make sure to respond offline to those that we don't cover on this webcast. Joelle, back to you, please.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Your first question comes from Tanya Jakusconek with Scotiabank. Your line is now open.

Hello. I think that's me. Hello.

Good morning, Tanya.

Morning. Morning. It's always hard to know if that's you or not with these names. Morning, everybody. I just wanted to circle back. First of all, congratulations, Jason, on your four deals that you've done this year. I was just looking at them. They're ranging anywhere, I'm gonna say, like, you know, $50 million-$300 million or thereabout. Is that how I should be thinking about your pipeline that you're looking at? Is it sort of still in that sweet spot for you?

Tanya, thank you for your question, thank you for the congratulations on the quarter. Again, do commend our corporate development team for the four deals that we've done this year. I would say again, our sweet spot as we've communicated many, many times, we do look at smaller deals as evidenced by what we did with Canadian Copper. You can think of kind of the sweet spot between $50 million and $300 million. That said, the opportunities, there are a number of deals out there that are significantly above that range, the $550 million-$300 million. As we have exhibited in 2025, though, some of those big deals, we just couldn't get there, both on valuation and on structure. We will continue to be disciplined.

We will continue to participate if there are auctions around those bigger transactions. Clearly what's happened with, you know, Wheaton Precious' successful stream on Antamina is there's a lot more conversations, we would say, at both the senior diversified companies and the larger and mid-tier copper cos that have significant byproduct to essentially stream off to fund their capital projects. The deals I would say that we're seeing, they do range from the sweet spot that I said all the way up to some $1 billion transactions. We will be very careful with our shareholders' capital. We, as we've talked about before, we do have obviously very stringent and disciplined hurdles, but that's the environment out there right now, Tanya.

I think it's safe to say for us, you know, you can think about $50 million-$300 million is our sweet spot.

Jason, as you mentioned, you are very particular in some of the security that you want to have in place in your contracts. Can you remind us what are the critical, let's say, top 3 that you will not budge on in terms of the security that you're looking for?

Yeah. Like, well, or first of all, again, I'll just talk to last year's transactions that we did see. Most of them that we did see, in fact, the majority of them were on streams. And some of the streams that we did see were completely unsecured. Again, there's a whole range or variance or continuum of security associated with these instruments. What I would say is, for ourselves and for our shareholders, we need to essentially, from a risk management perspective, the mining industry is very tough, as you know, Tanya. There can be unexpected events that within assets, within countries, that we certainly need some sort of security.

Again, there's a continuum for which we can affect that, for which if an incident does happen, that us effectively we're a creditor at the table, either around a, you know, insolvency or if a mine doesn't to work out, you know, kind of worst case where effectively the mine goes pear-shaped and, you know, effectively it's not delivering as to the expectations. Again, it's something that our team is very focused on.

We obviously would like to have a lot of transactions that wouldn't have the workouts that I'm describing, but for a risk management and a shareholder perspective, again, we're insistent that we have some tie of security back to the asset that if something does go wrong, at least we have a seat at the table to negotiate something go forward to protect the capital that we put in.

Okay. So Jason, what I'm hearing from you is that you want security at the asset level, is what I took away. How important is it to you to have security from, you know, parent guarantee? How important is that for you?

Yeah. Look, again, there's a whole continuum of security, Tanya, and so asset level security would vary from country to country as well. Obviously, if it's a multi-asset company, a parent guarantee or a corporate guarantee would satisfy our requirements just around security and any sort of acquisition go forward. Again, there has to be, in our mind, with large transactions, there has to be some sort of ability for us to essentially sit at the table when things do go wrong. We're hoping that doesn't happen for our peers and for ourselves go forward. As you know, you've been in the industry and the sector as long as I have, that does happen from occasion to occasion.

I would assume you'd want also arbitration rights. We've seen those as well.

Yes.

Um, and then just-

That is correct.

mainly my last question just on these deals. You mentioned, you know, syndication of deals. Are you seeing any opportunities in the syndication front?

Well, the way I'd answer that, Tanya, is clearly you saw us syndicate a deal in Cascabel with Franco-Nevada, it's probably now 18 months ago or almost 2 years ago. We do like the syndication of deals in jurisdictions that we would say are not tier one. That was a very unique circumstance for which I think you know both ourselves and Franco-Nevada already had existing royalties. We'd done a bunch of diligence. We'd been to site multiple times. We're very pleased that obviously what's happened since then is Jiangxi Copper has come in and acquired SolGold because it does provide financial certainty. But that said, again, there's a blueprint there for streaming and royalty companies to work together in specific instances. I would say that we're an advocate of the structure.

We're an advocate of syndicating deals that have the certain unique aspects that, again, just point back to Cascabel. We're certainly open for it. I would encourage you to ask the same question to the other royalty and streaming companies that you cover, because I do think there is a mix of attitudes around whether or not they're looking to syndicate or not. It's also why I would say that it's pretty rare. The syndicated deal, I think, was the first one done in 20 plus years that we did with Franco-Nevada.

Yeah. It's just I don't hear anyone else say it. Okay. Well, then finally, just on the corporate transactions, are there any opportunities there or are you seeing better value in sort of these asset deals?

I would say listen, Tanya, we obviously evaluate our sector. We've always said that consolidation should happen in the sector. We've got very good views on valuation of both the mid-tiers and the junior royalty and streaming cos. I would say at this point, again, everything's got a price. At this point we're not seeing a lot of value in that subset of royalty and streaming cos. Things can change rapidly, whether it's the assets getting some good geologic perspectivity, whether, again, every day all our companies trade from, you know, 9:30 to 4:00 P.M. So there is a value for, we believe a value for everything in trans. We're just not there currently today with, again, the subset that I talked about.

We're certainly open, and we're certainly aware, and we're certainly monitoring everything.

Okay. Thank you so much for taking all my questions. I'll pass it on to someone else. Appreciate it.

Thank you, Tanya. We know it's a very busy day for you and the rest of the analysts. Appreciate your time and support.

Ladies and gentlemen, as a reminder, should you have a question, please press star one. Your next question comes from Derek Ma with TD Cowen. Your line is now open.

Thank you. If some of these larger $500 million, billion-dollar transactions do materialize in OR's favor, is there sufficient liquidity and flexibility available to the business to execute? How are you thinking about the NCIB in the context of the current deal market?

Yeah, really good question, Derek. Thank you for that. Again, I think it really depends on the transaction that we've been talking about. We do have sufficient liquidity under a revolving facility, as you know. We've got $650 undrawn as of the quarter one with a $200 million accordion. Obviously, we've now deployed quite a bit. As I mentioned in my comments, we're expecting to have a drawn by the time we close all these transactions of $230 million, with some cash of about $30. We are obviously making quite a bit of cash flow quarter-over-quarter, that comes into the lens.

Look, if there was a really unique opportunity that met all the, checked all their boxes, met their hurdle rates, was in a good jurisdiction. Obviously, we've got a really good relationship with our bank syndicate. We've got plenty of capacity. If you think about the way they think things through things around compliance tests such as EBITDA as well as leverage ratios, we could certainly extend that revolver if we saw something that was really appealing for us. I would say at this stage, we're not having any of those discussions. That might give you some hints as to Again, we really believe we got sufficient liquidity to execute on our business plan given the opportunity set that we're seeing currently.

This is a business model that I think can support quite a bit of leverage, but what is the leverage ratio that you're ultimately comfortable with if it did.

Yeah.

if a deal did materialize?

Yeah. Obviously, what informs our leverage if we were to do a significant sizable transaction is the commodity price underpinning whatever we're doing. We are certainly a precious metals vehicle, so let's, for argument's sake, say it's a gold or silver transaction. I think the way and I'll ask Fred to comment here too if he likes. The way we think about our business is if there was an exceptional opportunity we thought being very accretive, we wouldn't want to go much past 2 times EBITDA levels, debt to EBITDA levels.

For an exceptional opportunity, we could kind of stretch to 2.5, but this would be an opportunity that again, would be paying GEOs for us, so we get back down to 2 times EBITDA very quickly and then continue to pay off our revolver. We're quite comfortable if that was a scenario and situation, but it would have to be a very unique opportunity for us. Look, there's also other avenues or instruments too that doesn't necessarily have to be through the revolver. If you look at what Wheaton did with their Antamina transaction, they got a term loan from a syndicate as well. That's certainly available to us as well with the right opportunity.

Got it. Let me ask you on jurisdictional risk then. There's the high concentration of assets in Tier-1 jurisdictions for OR that's been a trademark of the portfolio. How does jurisdictional-

Yeah

risk factor into the assessment of new transactions going forward, given there's arguably some room to take on more jurisdictional risk in the portfolio?

I think it's a really good question, Derek. I think this is what differentiates our company from our peers. We do take great pride in again, having what we classify as the majority of our assets in Tier-1 jurisdictions. It would be very off-brand for us to take a material transaction in a non-Tier-1 jurisdiction. You can think Africa or, you know, other jurisdictions that we wouldn't classify as Tier-1. It'd be very off-brand for us to do a material transaction because, again, we do believe this is what differentiates ourselves. We do like doing transactions, we have a filter when we're looking at prospective opportunities and the filter is, you know, the Tier-1 jurisdiction filter.

Because the way we see things going forward and the house view is especially, given the turbulent times that we anticipate around kind of geopolitical aspects and geopolitical strife, as well as you couple that with the, quite robust commodity environment. We would expect, you know, countries that don't necessarily have a rule of law or deep mining history that they're going to trying to extract through, windfall taxes or increased royalties in countries. We've already started to see that, to essentially get some more value for them in the assets versus, again, what we consider Tier-1 jurisdictions, where it's obviously got established rule of law, deep mining history, and these governments and, stakeholders really do understand what mining can provide for communities, governments, and the sort.

We do have a strong filter at looking at, again, transactions in North America. It's no accident, therefore, when you look at the 4 transactions that we did print in 2026, there were a couple of them, the one being in Ghana, the other one being in Peru, that our team was very focused on making sure we had the ballast come back with the transactions at Spring Valley, Nevada, and obviously Canadian Copper, in Canada here. We do think through that frequently. We do debate it quite a bit. As I said, it'd be very off-brand for us to do a very large stream in an African country that would change, again, the jurisdictional exposure that we think insulates us and provides a superior investment vehicle to our shareholders.

Got it. Thanks for taking my questions, and good luck.

Thank you, Derek.

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

Good morning, Jason. I just want to follow up on that. One of your bigger projects that's coming on is Amulsar. A couple questions. First, I don't know if you can give me security on that, but what I'm more interested is whether you take that in kind or whether you have to have the risk of them shipping out of the country. The second thing, just on your comment there, because I do think it is something that is unique and helps Osisko. If someone were to give you a very good price for something like Amulsar, would you be willing to sell that if it to improve the multiple technically, 'cause maybe it sits somewhere else better than someone else, but on the other hand, that 6,000 ounces is pretty big.

Yeah, really good question. Look, the way we'd answer that is you have to recall that Amulsar was a legacy asset.

Yeah

That, right? Mike Spencer's in the room here, and he's basically spent the last eight years of his life, effectively getting that through a workout, as you know, with Orion Mine Finance to the point where we're effectively looking at first gold by this summer. Again, well done in essentially taking a legacy workout and making sure that we can continue to extract or get GEOs from it. It is, again, it's not a material if you think about, and I don't know what your number is, but again, we can take this offline in terms of the 2030 outlook. It's not a material contributor to our overall.

There is some ounces that we're including in our internal 2030 outlook, but it's, again, it's not material, if you think about the overall growth in our, in our portfolio. To answer the question about whether or not we'd sell that position, I think we've always said we're open for business. If someone was going to lay down something significant that we saw was good for our shareholders and quite accretive understanding kind of the risks and opportunities in Armenia, absolutely we would consider it. We do think it's a very good asset. We do think that the management team, the United Group, is doing a very good job of moving that forward. Again, I think that's the best way we can answer that question. It is a legacy asset.

It is a legacy workout. You know, all the commendations that to Mike and his team for essentially, you know, we're going to be extracting GEOs for our shareholders in the next few years because of just us sticking with it and a workout.

Fair enough. Then do you get that in kind, or is it like, someone delivers you a, paper somewhere at the end of the day?

It's in kind.

Okay. Thank you very much, Jason.

All right, Brian.

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

There are no further questions?

No. I'm sorry, can you hear me?

Yes, we can. Okay.

Okay.

Thank you, Joelle. Before we wrap up today's call, I want to leave you with a final thought on our royalties. As a management team, we focus on capital returns and hence why we bought shares back in the quarter and increased our dividend by 18%. We'll continue to keep shareholder returns at the forefront of all our strategic decisions. With that, thank you for your attention today. We do appreciate your support. We'll talk to you next quarter.

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