OR Royalties Q2 2026 Earnings Report

OR Royalties EPS Results

• Actual EPS: $0.32
• Consensus EPS: $0.31
• Beat/Miss: Beat by +$0.01
• One Year Ago EPS: N/A

OR Royalties Revenue Results

• Actual Revenue: $97.82 million
• Expected Revenue: $97.93 million
• Beat/Miss: Missed by -$113.00 thousand
• YoY Revenue Growth: N/A

OR Royalties Announcement Details

• Quarter: Q2 2026
• Date: 8/5/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, August 6, 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 Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Q2 results were strong: revenue rose 62% to $97.8 million, operating cash flow increased 62% to $83.2 million, and adjusted earnings grew 78% to $0.32 per share, supported by higher precious-metals prices and minimal royalty costs.
• Negative Sentiment: The Canadian Malartic Barnat pit wall movement is expected to reduce OR Royalties’ deliveries by roughly 3,500 GEOs in 2026 and up to 7,500 GEOs annually in 2027 and 2028. Management nevertheless maintained its 2026 guidance of 80,000–90,000 GEOs and said the 2030 outlook remains unchanged.
• Positive Sentiment: The company completed the $335 million Gold Fields royalty portfolio and Spring Valley acquisitions, closed the Murray Brook stream, and expects to add Costa Fuego’s La Verde discovery coverage, expanding future growth without contingent capital requirements.
• Positive Sentiment: Shareholder returns increased through an 18.2% dividend hike and ongoing buybacks, including approximately 1.6 million shares repurchased year to date. Management said excess cash flow could support further debt reduction or opportunistic repurchases if no attractive acquisitions emerge.
• Positive Sentiment: Key upcoming catalysts include first gold at Amulsar expected in September, continued ramp-ups at Namdini and other assets, a potential Cuiú commissioning in Q4, and updates to Harmony’s guidance and Canadian Malartic’s long-term plan later this year.

Presentation

[Operator]

Good morning, ladies and gentlemen. Welcome to the OR Royalties Q2 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 one on your telephone keypad. Please note that this call is being recorded today, August 6th, 2026, at 10:00 A.M. Eastern Time. I would now like to turn the meeting over to our host for today's call, Mr. Jason Attew.

[Operator]

[Foreign language]

[Jason Attew, President and CEO at OR Royalties]

Good morning everybody. 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 on EDGAR and SEDAR+. If you're logging into 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 all amounts presented and discussed will be in U.S. dollars unless otherwise noted. I'm joined on the call this morning by Fréd Ruel, the company's Chief Financial Officer, VP Finance, amongst others, as indicated on slide three. Fréd will take you through the financial results in a few minutes. Three things to take away from the second quarter. First, our portfolio did its job.

[Jason Attew, President and CEO at OR Royalties]

Revenues of $97.8 million and operating cash flow of $83.2 million were both up 62% over the second quarter of last year on a 5% increase in gold equivalent ounces. That spread, five points of GEO growth producing 62 points of cash flow growth, is the whole argument for this business model. $0.968 of every revenue dollar converted to cash margin this quarter, which is the best in the sector. Also, net earnings were up 94% to $0.33 per share. Second, capital. We closed on the Gold Fields royalty portfolio and the Spring Valley acquisitions, $335 million in total, funded largely from our revolver, which stood at $215 million drawn at quarter end. In July, we closed the Murray Brook Stream as well. The second half's job is straightforward, continue to seek accretive opportunities for our owners. Third, guidance.

[Jason Attew, President and CEO at OR Royalties]

First half deliveries were 43,497 gold equivalent ounces, which were up 12% over the first half of 2025 and has us comfortably on track for our 80,000-90,000 GEO range for 2026. I want to spend a minute on why that remains true after the news at Canadian Malartic. As most of you are aware, on July 1st, a rock mass movement occurred along the north wall of the Barnat open pit at Canadian Malartic. Nobody was hurt, and as Agnico described on its second quarter call last week, its monitoring systems were tracking the wall and mining in the area had already been suspended as a precaution. The systems worked exactly as designed. Here is the updated picture from that call. Roughly 1 million tons of moved material will remain in place.

[Jason Attew, President and CEO at OR Royalties]

Agnico will spend the third quarter building safety berms and access roads, with mining in the affected area expected to resume in the fourth quarter. In total, approximately 370,000 oz of gold are now considered inaccessible over the next three years, 60,000-80,000 oz in the second half of 2026, and up to roughly 150,000 oz in each of 2027 and 2028. Agnico now expects full year production toward the lower end of its guidance range at Canadian Malartic, supplementing mill feed from low grade stockpiles in the meantime. Most of you would have already updated your models for this event, but I will walk you through our math. Applying 5% to those figures means roughly 3,500 fewer GEOs to OR in 2026, and up to roughly 7,500 fewer GEOs in each of 2027 and 2028. Call it 18,500 gold equivalent oz over three years.

[Jason Attew, President and CEO at OR Royalties]

This, of course, would be before any mitigation or recovery activities Agnico undertakes. Three things don't change because of this. Our 2026 guidance of 80,000-90,000 GEO stands. Our 2030 outlook of 120,000-135,000 GEOs is unaffected because Barnat was always scheduled to be mined out by 2028 or 2029. In Odyssey, the future of Canadian Malartic is untouched. It set a quarterly production record of 28,800 oz. The first phase of shaft number one sinking was completed in July at a depth of 1,586 m, and first shaft production remains on schedule for the second quarter of 2027. Agnico was clear on its call that its journey to 1 million ounces at Canadian Malartic by the early 2030s remain unchanged.

[Jason Attew, President and CEO at OR Royalties]

I'd also note on a more somber subject that Canadian Malartic's second quarter included a six-day mill shutdown following a fatal accident in April. Our thoughts remain with the family and colleagues affected, and we fully support Agnico's position that nothing at the operation matters more than the safety of its people. Two smaller items also moved against us. At CSA, concentrates sat on site at quarter end because of transport logistics, deferring some silver and copper GEOs into the second half. Harmony expects inventories to normalize over the balance of the year. Mantos Blancos delivered fewer GEOs than in the first quarter, which we had flagged last quarter as silver grades were front-end loaded this year. Net of all this, we now expect the second half to be modestly lighter than the first.

[Jason Attew, President and CEO at OR Royalties]

Barnat takes ounces out. The ramp-ups at Namdini, San Gabriel, Dalgaranga, CB, and CSA put some back. Scoring ourselves against what we previously committed to, the 2026 guidance is on track, the 2030 outlook intact, and it still excludes any GEOs from the additional Spring Valley coverage or the Murray Brook transactions, both of which now have closed. That outlook has contingency built in. One more thing on Malartic, because it frames how we think about everything we own. Agnico's update on the path to 1 million ounces is now expected in November. Their chief operating officer has publicly said that even at an expanded production rate, the life of mine could still extend out to 2060. Before Gene Cernan climbed off the moon in 1972, who was the last man to walk on it, he wrote his daughter's initials in lunar dust.

[Jason Attew, President and CEO at OR Royalties]

There's no atmosphere up there, they're still there today. A royalty and a great ore body works the same way. Mine plans get revised, pit walls get redesigned, operators may come and go. The ore body and a royalty on it doesn't move. The announcement of the wall movement changes our near-term GEOs, but it changes nothing about what we own and our shareholders as well. Briefly across the rest of the portfolio, we received the first royalty payment from Dalgaranga this quarter. At Namdini, our increased 2% royalty is becoming a significant contributor as the ramp-up hits its stride. Our portfolio currently boasts 23 producing assets, and the 24th producing asset should be Cabral Gold's Cuiú project in Brazil, with commissioning still on schedule for the fourth quarter. Slide eight lists the catalysts ahead on assets representing over half our NAV.

[Jason Attew, President and CEO at OR Royalties]

The three I'd watch out are Harmony's fiscal 2027 guidance expected this month with an updated mineral resource estimate and life of mine plan to follow later in the year. Also, first gold at Amulsar in September, where a stream should begin accruing from first production ahead of its first payments expected in 2028, which is largely dependent on commodity price and the pace for which the operator, United Gold, pays back their loan. Finally, an update from Agnico on Canadian Malartic's future, now expected, as I said earlier, to be coming in November. On new business, the pipeline is active and our criteria have not moved. No non-dilutive deals. We can afford that selectivity because our growth through 2030 is already bought and paid for with zero contingent capital. Beyond that, we don't comment on transactions until they're signed.

[Jason Attew, President and CEO at OR Royalties]

I'd like to hand it over to Fréd to talk about our financial results.

[Fréd Ruel, CFO and VP of Finance at OR Royalties]

Thank you, Jason. Good morning, everyone. Revenues for the quarter were $97.8 million, up from $60.4 million a year ago, a 62% growth on 5% more GEOs, driven by realized prices of $4,504 per ounce of gold and $70 per ounce of silver. Cash margin was $94.7 million or 96.8% of revenues, up from $57.8 million or 95.8% last year. Royalties, which carry essentially no cost, contributed $62.8 million of revenue. Streams contributed $35 million. Net earnings were $61.4 million or $0.33 per basic share against $0.17 a year ago. Adjusted earnings were $60.5 million or $0.32 per share, up 78%. Cash flow from operations was $83.2 million, up 62%, $0.44 per share against $0.27 last year. That per share line is the one we manage the business to.

[Fréd Ruel, CFO and VP of Finance at OR Royalties]

Turning to the balance sheet, we ended June with $75.6 million of cash and $215 million drawn on the credit facility for a net debt position of $139 million. The draw funded the Gold Fields in Spring Valley closings, and we also repaid $18 million on the credit facility during the quarter. On returns to shareholders, the board raised the quarterly dividend by 18.2% to $0.065 per share in May. First paid on July 15th. Our 47th consecutive quarterly dividend with approximately $300 million returned to shareholders through dividends to date. A further $0.065 dividend has been declared, payable October 15th. Under the normal course issuer bid, we repurchased over 225,000 shares for $8 million during the quarter, and a further approximately 1 million shares for $29.1 million in July.

[Fréd Ruel, CFO and VP of Finance at OR Royalties]

A total of roughly 1.6 million shares repurchased and canceled year to date. Subsequent to quarter end, we also closed the $28 million Murray Brook precious metals stream with Canadian Copper, together with a $4 million equity subscription. The initial $9 million was funded from cash on hand. Also in the third quarter, we expect to close the $15 million extension of our royalty coverage at Chile's Costa Fuego to include the new La Verde discovery. Our capital allocation framework is unchanged. Returns to shareholders through the dividend and buybacks, as well as investment into precious metals royalties and streams, with ongoing debt repayment being considered normal course. All prioritized in whatever order creates the most net asset value per share. In the first half, that meant new acquisitions.

[Fréd Ruel, CFO and VP of Finance at OR Royalties]

In the second half, it could mean more opportunistic share repurchases, and as Jason mentioned, if we don't find and announce any accretive deals for our shareholders over this period, we'll look to reduce the debt drawn on our credit facility. On this point, I'd like to flag that earlier this week, OR Royalties, along with a syndicate of supporting banks, officially amended its revolving credit facility to increase the amount available from $650 million to $850 million, and the accordion from $200 million to $350 million. We also extended the maturity date from May 2029 to August 2030. Back to you, Jason.

[Jason Attew, President and CEO at OR Royalties]

Thank you, Fréd. With that, I'd like to thank everyone for listening. We'll now open up the line for questions, as well as questions posted in the webcast. If we don't get to all the questions on the line, we'll make sure we respond offline. Back to you, Joelle.

[Operator]

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star, followed by the one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star, followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from Cosmos Chiu with CIBC. Your line is now open.

[Cosmos Chiu, Analyst at CIBC]

Thanks, Jason and team, for a very thorough presentation. Maybe my first question is on Agnico Eagle and Barnat Pit. Thanks, Jason, for giving us a very detailed description of potential impact to OR Royalties. I guess my question is, as you pointed out, issues at the pit, Agnico Eagle share price came down, OR share price also came down in sympathy. I guess, any concerns about concentration risk? Canadian Malartic continues to be one of the largest or the largest royalty for your company, and it's going to grow in size and importance as it kind of channels towards 1 million ounces a year production. Again, how should we look at it in the context of OR Royalties and, as time progresses, any concerns about concentration risk?

[Jason Attew, President and CEO at OR Royalties]

Thank you, Cos. It's a very good question and something certainly our board and ourselves discussed this week. We wouldn't have thought a few weeks back that Agnico Eagle, who's got an exceptional reputation as an operator, very good operator. They've really put on a master class as it relates to the Canadian Malartic, including the underground expansion. I mean, the Odyssey is the future of certainly our company and certainly, again, the journey to 1 million ounces for Agnico. We fully support, again, that operating group, that their operational acumen, their technical acumen, and the fact, again, this asset is in Quebec. The short answer, Cosmos, no, we don't have any sort of issues or concerns around concentration risk.

[Jason Attew, President and CEO at OR Royalties]

The concentration in terms of our net asset value, as you would be aware, because in your model it's around 25%-30% of NAV, so it's not 50%, 60%, or what have you. We're yet incredibly comfortable first where the asset's located in Quebec, a very supportive regulatory environment, exceptional workforce that's really endorsed in the technical acumen of the Agnico team. We have just a tremendous amount of comfort over it. Yes, what happened was unfortunate, but there's a reason why they actually do have these systems in place to ensure that with a large open pit, that any sort of rock mass movement is detected, and Agnico took all the precautionary steps, and obviously, as you heard in my comments and Agnico's comments last week, nobody was hurt.

[Jason Attew, President and CEO at OR Royalties]

Certainly, they're working through right now, again, as I said and what Agnico said last week, the focus will be on building berms, access roads, and ensuring the safety of that pit when they go and reaccess it for mining go forward. The short answer is no, we don't have any real concerns or issues around concentration risk. This is the crown jewel in our portfolio, and as you rightly pointed out, as they make the journey to 1 million ounces, it is incrementally positive for our company. Excellent question. Thanks, Cosmos.

[Cosmos Chiu, Analyst at CIBC]

Great. Thanks, Jason. Maybe switching gears a little bit, you touched on your longer-term guidance, your 2030 guidance, 120,000-135,000 oz. As you mentioned, that does not yet include Spring Valley, Murray Brook, and maybe some of the other more recent acquisitions as well. I guess, could you maybe, in words, qualitatively talk about how that could potentially change your five-year or your 2030 outlook? And then in terms of the actual numbers coming out, are we going to have to wait until, say, February 2027, before we get your updated longer-term outlook?

[Jason Attew, President and CEO at OR Royalties]

Yeah. Another excellent question. Thank you, Cosmos. Again, yes, our process is we update the market once a year in February in terms of our five-year outlook. Obviously, through that year, our corporate development team has done an exceptional job of putting more accretive assets into our portfolio that have not been reflected in the 2030. Things that you mentioned, such as our coverage to get to 6% NSR in Spring Valley, we think is going to be very incremental to that outlook going forward. Things like Murray Brook, again, we have a tremendous amount of time and respect for that operating group and very accretive deal for ourselves. As well as we're seeing some really good positive momentum within our portfolio. You know the story of Island Gold.

[Jason Attew, President and CEO at OR Royalties]

Namdini is also becoming a very good cornerstone royalty for us, as again, you would know that we picked up another sister royalty or going from 1%-2% in that asset. Yes, portfolio is growing, as you know and you commented on. We've got the best five-year outlook with no contingent capital associated. When we do go and give our 2031 guidance in February, it will include a lot of the corporate development activity and activity that we see from positive developments with respect to our development assets.

[Cosmos Chiu, Analyst at CIBC]

Thanks, Jason. Maybe one last question. You've made an incremental acquisition at Hot Chili, extending your 1% copper and 3% gold royalties to the La Verde project. Could you maybe just quickly educate us, or at least me, in terms of how the La Verde project compares to the main deposit, and what's the potential upside here? Better yet, if you can quantify it for me, that would be great.

[Jason Attew, President and CEO at OR Royalties]

Yeah. I'm going to hand it over to Guy, who's going to give you, obviously he was the person that advocated for this, on the geology and the prospectivity. Go ahead, Guy.

[Guy Desharnais, VP of Project Evaluation at OR Royalties]

Hey, Cosmos. Thanks for asking that question.

[Cosmos Chiu, Analyst at CIBC]

Hi, Guy.

[Guy Desharnais, VP of Project Evaluation at OR Royalties]

I'll first point you towards what Hot Chili has been saying about the asset. The public doesn't have a very clear view of what that asset can be because they don't yet have a fulsome resource estimation, whereas the rest of the project has a PFS. They're being very active in terms of the drilling right now to prove up the resources on that, following the initial resource, quickly get into some economic studies to enable a more fulsome picture of the three different deposits that will make up that central processing unit. What I'll say, though, is that if you look at the best drill holes at La Verde, they're quite similar to the best drill holes at Cordillera, in terms of scale, it's hard to map out, but it'll be a significant contributor.

[Guy Desharnais, VP of Project Evaluation at OR Royalties]

I think there's a chance that La Verde would be the first of the three deposits to go into production. We'll see. They're very active right now. The most recent drill holes are pretty impressive, I'll have you go back and look at some of their disclosures.

[Cosmos Chiu, Analyst at CIBC]

Great. Thanks, Guy, for a very fulsome answer. Thanks, Jason, for answering all my questions. That's all I have. Thank you.

[Jason Attew, President and CEO at OR Royalties]

Thanks, Cosmos. Enjoy the rest of your summer.

[Operator]

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

[Tanya Jakusconek, Analyst at Scotiabank]

Oh, great. Good morning, everybody. Thank you so much for taking my questions. Just going to start, Jason, just finishing off on the guidance. Thank you for sharing that weaker second half versus the first half or lower second half versus the first half. Originally, it had been that the rest of quarters were going to be evenly distributed. With the removal of the ounces from the Canadian Malartic open pit, should I still be thinking that Q3 and Q4 should be similar?

[Jason Attew, President and CEO at OR Royalties]

Yeah. Excellent question. Thank you for that, Tanya. What I would say, and we obviously don't give quarterly guidance, we give annual guidance, but we did socialize the fact that prior to the rock mass fall at Barnat Pit, we essentially, as you pointed out, our distribution from H1 to H2 was approximately the same. What you can think of is, again, given Barnat in particular is such a good contributor for our asset base and for our GEOs, as I mentioned earlier, Q3 is going to be, from an activity perspective, focused on creating berms, access roads, again, safety at site before they start accessing to do renew mining in Q4.

[Jason Attew, President and CEO at OR Royalties]

You can think modestly, I would say modestly lower in Q3 with certainly some potential tailwinds that we'll see in Q4, especially with the ramp-ups. As I mentioned earlier, at Dalgaranga, Namdini, and those sort of assets, Q4 will be, I would say, modestly stronger than Q3. At the end of the day, as I said earlier, we were tracking essentially H1 to H2, essentially around the same amount or equal amount of GEOs. You have to just subtract, obviously, out the 3,500 that we don't expect to receive in this 2026 calendar year. I hope that provides some clarity for you.

[Tanya Jakusconek, Analyst at Scotiabank]

Yeah. No, that's fine. Thank you. I just wanted to circle back on the debt. I know it was commented that we've got the debt outstanding. How should we be thinking about balancing the debt reduction, assuming no other deals, let's say, assuming no other transactions are completed? Should we be thinking that this is, besides paying the dividends and maybe some opportunistic share buyback. Would the priority be to sort of reduce this dividend in 2027? By 2027? The debt.

[Jason Attew, President and CEO at OR Royalties]

You said reduce the dividend-

[Tanya Jakusconek, Analyst at Scotiabank]

Correct

[Jason Attew, President and CEO at OR Royalties]

Or reduce the debt by 2027?

[Tanya Jakusconek, Analyst at Scotiabank]

Reduce the debt.

[Jason Attew, President and CEO at OR Royalties]

You reduce the debt. Look, I think you're absolutely on point. From a capital allocation perspective, our job as a management team is essentially put accretive assets into the portfolio for our shareholders. That's obviously our first priority. We are generating, as you saw on an adjusted EBITDA basis, and we can get these commodity prices close to $90 million per quarter. That's obviously a very good run rate for us to pay down debt, but obviously our business is to do accretive transactions. It's very normal course, as you know, across all our sector. This is our model where we dip into a revolver and then pay it back with cash flow over time. It's very normal course activity. Can you think that we will continue to reduce the $215 million that you see on our June 30th balance sheet?

[Jason Attew, President and CEO at OR Royalties]

All that said, obviously, if we see accretive deals, we have the capacity, as Fréd mentioned, we've increased our facility significantly here because we do see quite a bit of opportunities out there in terms of their opportunity set or pipeline. Lastly, again, we believe there was a significant misprice when obviously the event that happened in Barnat and we acted very quickly to buy back shares, and that's all based on a NAV per share framework. We are constantly looking at it. We could be opportunistic around buying shares back in the future if we again see a significant misprice dislocation in the marketplace is what we think the fundamental intrinsic value of our company is versus what's quoted in the marketplace. To answer the question, yeah, normal course is just to pay down debt as we generate cash flow.

[Jason Attew, President and CEO at OR Royalties]

Obviously, rating and ranking accretive acquisitions, if we see good accretive acquisitions for our shareholders, we'll step in and do that and fund it with debt. I don't know, Fréd, if you wanted to add anything further.

[Fréd Ruel, CFO and VP of Finance at OR Royalties]

No.

[Tanya Jakusconek, Analyst at Scotiabank]

Okay. Jason, just keeping on the transaction front, maybe we can talk about whether this Canadian Malartic, the open pit overburden and a failure of the north wall into the pit has changed your focus for transactions in the type that maybe you're looking now more for transactions that add immediate production, or has anything changed there?

[Jason Attew, President and CEO at OR Royalties]

Excellent question, Tanya. Our focus, our criteria around acquisitions have always been, and I think most folks and most of our competitors are producing assets. Absent that, certainly our second big filter is assets in development or expansions that would actually provide us GEOs within our five-year outlook. Those are the two big criteria that we look at and spend, I'd say, 90% of our time from a corporate development perspective looking at. That hasn't changed. Obviously, again, it all comes down to value, and we just want to make sure that we're doing transactions that are not only smart transactions, but accretive transactions for owners.

[Tanya Jakusconek, Analyst at Scotiabank]

Are you seeing still the typical size of that $50 million-$300 million that we talked about in Q1?

[Jason Attew, President and CEO at OR Royalties]

Yeah

[Tanya Jakusconek, Analyst at Scotiabank]

Still in the tier one jurisdictions that you're focusing on?

[Jason Attew, President and CEO at OR Royalties]

Yeah, our big filter is tier one jurisdictions, Canada, the U.S., and Australia. I would say the ticket size, in terms of what we're seeing in terms of the flow right now, has increased. We're seeing some very large transactions come to the market that I know that all five of the major, including ourselves, royalty and streaming companies are looking at. I would offer to say that there's billion-dollar transactions out there, as well as kind of $500 million-$700 million that we're all taking a very close look at.

[Tanya Jakusconek, Analyst at Scotiabank]

Would those be in the gold and silver?

[Jason Attew, President and CEO at OR Royalties]

Yeah, they're precious metals.

[Tanya Jakusconek, Analyst at Scotiabank]

Precious metals. Yeah. Okay. We'll look forward to putting that capital to use. Thank you so much for taking my question.

[Jason Attew, President and CEO at OR Royalties]

Thanks, Tanya. Appreciate your questions and your time.

[Operator]

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

[Derick Ma, Analyst at TD Cowen]

Thank you. Thank you for the update on Amulsar. It has been a long road for that asset. Could you provide an update on how construction is progressing there and how United Gold has addressed some of those historic social environmental concerns?

[Jason Attew, President and CEO at OR Royalties]

Yeah. I am going to ask Brendan Pidcock, who is our technical services expert, who actually visited the site a year ago, correct? He will give you an update because he is following it quite closely.

[Brendan Pidcock, VP of Technical Services at OR Royalties]

Thanks. Myself and another colleague went and visited about 12 months ago. The United team has done an exceptional job there. They're tracking on budget more or less in terms of time and cost. The latest messaging coming out of them is first production mid-September, then ramping up to full production probably first half of next year. Honestly, given the history of that project in terms of social challenges and challenges that are more immediate in terms of the geopolitics and all the rest of it, hats off to that team, really. They've done an exceptional job in terms of multiple redundancies and I can't say enough about them, really. It's a good problem for us to have at the moment.

[Jason Attew, President and CEO at OR Royalties]

Just further to that, Derick, as I think you appreciate and know, as they start producing gold ounces, those ounces will be accrued for us. The $150 million loan that they got from the Armenian government has to get paid back first before we actually start seeing realized GEOs or start getting payments in terms of, again, what will hit our financial statements. That, again, I think anyone can do the math as they ramp up. As I said in the script earlier, we expected 2028. If we do have some very robust commodity price, that could come late 2027. We're very pleased, obviously. It's an asset that's gone through a workout. It's obviously had some historic challenges getting up and going, but we have a lot of confidence in this United Gold group, and it will be a significant contributor to us 2028, 2029.

[Jason Attew, President and CEO at OR Royalties]

Obviously those accrued ounces will get, I don't know if you know formulaic, they get paid back over a maximum five-year period. Again, a very good contributor for us at the late end of this decade.

[Derick Ma, Analyst at TD Cowen]

Got it. It'd be a great contributor for sure. Sorry, just clarifying on that lump sum payment, not lump sum, the accumulated ounces that, you have a five-year period where you have elevated deliveries? Is that correct?

[Jason Attew, President and CEO at OR Royalties]

It gets spread out over five years. Yes, correct. That's correct. We'll accrue them until, again, the $150 million loan is paid back, and then those accrued ounces will get paid over five years. That's correct.

[Derick Ma, Analyst at TD Cowen]

Your own loan gets paid back at that point in time as well. You have a small loan as well.

[Jason Attew, President and CEO at OR Royalties]

Yes, that's correct.

[Derick Ma, Analyst at TD Cowen]

Right? Yeah. Okay.

[Jason Attew, President and CEO at OR Royalties]

That's right.

[Derick Ma, Analyst at TD Cowen]

Thank you. That's it for me.

[Jason Attew, President and CEO at OR Royalties]

Yeah.

[Derick Ma, Analyst at TD Cowen]

Thank you.

[Jason Attew, President and CEO at OR Royalties]

Thanks, Derick. Enjoy your summer.

[Operator]

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

[Jason Attew, President and CEO at OR Royalties]

Great. Thank you very much, Joelle. Look, really appreciate everybody's time and energy. I do understand that it's a very busy day in terms of earnings. Thank you for your time, and we look forward to doing this again in November. In the interim, enjoy the summer for everybody. Thank you very much.

[Operator]

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

Participants

Executives

• Jason Attew, President and CEO
• Fréd Ruel, CFO and VP of Finance
• Guy Desharnais, VP of Project Evaluation
• Brendan Pidcock, VP of Technical Services

Analysts

• Cosmos Chiu, Analyst at CIBC
• Tanya Jakusconek, Analyst at Scotiabank
• Derick Ma, Analyst at TD Cowen