OR Royalties NYSE: OR reported a record first quarter of 2026, with President and CEO Jason Attew saying the company is “off to an impressive start” as stronger production from its royalty and streaming portfolio combined with robust precious metals prices.
The company earned 22,740 gold equivalent ounces, or GEOs, in the quarter, putting it on pace toward its annual guidance of 80,000 to 90,000 GEOs. Attew said OR expects “fairly balanced quarter-over-quarter GEO performance” through the remainder of 2026.
Quarterly revenue reached a company record of $102.8 million, while cash margin was 96.8%. Net earnings were $0.39 per basic common share, and adjusted earnings were $0.40 per basic common share, which Attew said represented a 125% increase from the first quarter of 2025.
OR ended March with $94.9 million in cash and no debt, though Attew noted that several transactions announced during and after the quarter will change the balance sheet profile in the near term.
Dividend Raised After 46 Consecutive Quarterly Payments
OR declared and paid a quarterly dividend of $0.055 per share in the first quarter, marking its 46th consecutive quarterly dividend. Attew said the company has returned more than $288.9 million to shareholders through dividends to date.
Subsequent to quarter-end, the board approved an 18.2% increase to the base quarterly dividend to $0.065 per common share. The dividend is payable July 15, 2026, to shareholders of record as of June 30, 2026.
Attew said the increase reflects management’s confidence in “the consistency, predictability, and the anticipated growth” of current and future cash flows. In closing remarks, he also highlighted share repurchases, noting that the company bought back and canceled $12.9 million of OR shares during the quarter.
Company Returns to Deal-Making After Quiet 2025
Attew said 2025 was a year in which OR “chose to stay on the sidelines and exercise discipline” as commodity prices rose and management could not justify valuations or security terms on some opportunities. Activity accelerated in the first quarter of 2026, with the company announcing three transactions during the period, acquiring 13 new royalties and committing to deploy $438.5 million. A fourth transaction was announced after quarter-end.
The company closed the $98.5 million acquisition of an additional 1% net smelter return royalty at Namdini in Ghana during the first quarter, funded entirely with cash on hand. OR also announced the acquisition of a 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.
Attew said the Gold Fields portfolio also includes assets the company sees as valuable, including a 2.25% net profit interest over the Aurora Discovery in British Columbia and a 2% NSR on the Paris project in Western Australia.
After the quarter, OR closed a Spring Valley transaction in April, increasing its royalty on core claims to a 6% NSR from 3%. Attew said Spring Valley is estimated to enter production in 2028, with first meaningful payments expected in the 2030 calendar year. He said the asset could generate approximately 10,000 GEOs annually to OR after 500,000 ounces of gold have been recovered.
The company also announced a Murray Brook transaction with Canadian Copper, which Attew described as a smaller deal with “outsized positive returns.” He said first production from the Murray Brook deposit, processed through the existing Caribou mill, could occur in late 2028 or early 2029.
Key Assets Show Progress Across Portfolio
As of May 6, OR had 24 producing assets. Attew said nearly 75% of GEOs from key contributing royalties and streams came from Canada, the U.S. and Australia, which the company defines as Tier-1 mining jurisdictions. Including Chile would bring that figure closer to 90%, he said.
Agnico Eagle’s Canadian Malartic was a strong contributor in the quarter, helped by higher grades and ore tons at the Barnat Pit. Attew also said production from the East Gouldie ramp began in March 2026, while construction of the first loading station remains scheduled for first production through shaft No. 1 in the second quarter of 2027.
Attew noted that Agnico Eagle has indicated the mine life at Malartic “will probably extend to 2060,” compared with the previously stated mine life of 2042.
At Mantos Blancos, sulfide mill throughput averaged 19,661 tons per day in the quarter despite a four-day planned maintenance shutdown, close to the 20,000-ton-per-day nameplate capacity. Attew said OR expects a stronger first half from Mantos Blancos, followed by a modestly softer second half due to expected silver grade variability.
The CSA asset performed roughly in line with budget, though OR expects a weaker second quarter contribution because of Harmony’s disclosed one-month suspension to complete underground structural steelwork. Other notable contributors included the Sasa Mine in Macedonia and early benefits from OR’s 2% royalty interest at Namdini.
Balance Sheet to Reflect Recent Transactions
While OR ended March debt-free, Attew said subsequent transaction closings will lead to a draw on the company’s credit facility. The $168 million Spring Valley transaction was funded through a facility drawdown, and the Gold Fields transactions are expected to close in the coming days, funded through a combination of cash and credit facility borrowings. The Murray Brook transaction is expected to require $9 million in initial cash outflows.
After closing and funding the announced transactions, Attew said drawn debt on the facility should be approximately $230 million, with cash of just over $30 million. He said the company still has “sufficient liquidity to execute on new streams and royalties” as opportunities arise.
In response to a question from TD Cowen analyst Derick Ma, Attew said OR had a $650 million revolving facility at quarter-end, with a $200 million accordion, though some of that capacity will be used for the announced transactions. He said the company could consider expanding the revolver or using other financing tools for a compelling opportunity, but said OR is not currently having those discussions.
Asked about leverage, Attew said OR would not want to go “much past” 2 times debt-to-EBITDA for a significant transaction, though it could stretch to 2.5 times for an exceptional opportunity that would quickly generate GEOs and allow leverage to decline.
Management Emphasizes Discipline and Security
During the question-and-answer session, Scotiabank analyst Tanya Jakusconek asked about OR’s deal pipeline. Attew said the company’s “sweet spot” remains transactions of roughly $50 million to $300 million, though the company is also seeing opportunities above that range, including some as large as $1 billion.
Attew reiterated that OR will remain disciplined on valuation and structure. He said the company requires security that gives it a seat at the table if an asset underperforms or enters a restructuring scenario. He also said a parent or corporate guarantee could satisfy OR’s requirements in certain cases, and confirmed that arbitration rights are also important.
Asked about jurisdictional risk, Attew said it would be “very off-brand” for OR to pursue a material transaction in a non-Tier-1 jurisdiction, citing the company’s focus on rule of law, established mining history and geopolitical stability.
Attew said OR’s corporate development pipeline remains robust, with a focus on adding GEOs today or assets that can contribute to growth through 2030. “We have a strong desire to continue to grow the business by completing new and accretive transactions,” he said, while adding that OR is not seeking to do so “at any cost.”
About OR Royalties NYSE: OR
OR Royalties 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.
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