OR Royalties, Inc. Q1 FY2024 earnings call

• Dividends: Declared and paid CAD0.06 per share in Q1, 36th consecutive dividend; Board approved an 8% increase to the base quarterly dividend to CAD0.065 per share. - Pipeline: Pipeline remains robust; corporate development team active, optimistic about 1-2 meaningful transactions in 2024. - Sustainability: Published 4th edition of sustainability report, showing progress in governance, environmental, and social initiatives. - Asset performance: Canadian Malartic had record quarterly gold production; Capstone's Mantos Blancos mill rates lag; CSA copper stream updated with extended mine life; Island Gold and Magino transaction expected to be beneficial. - Balance sheet: Repaid CAD18.6 million on revolver credit facility, net debt ~CAD8 million, potential to be net cash by end of 2024 if commodity prices stay high.

In Q1 2024, Osisko Gold Royalties earned 22,259 gold equivalent ounces (GEOs). Revenues for the period were CAD60.8 million. Cash margins were 97%, nearly matching the record 98% from Q3 2017. The company ended Q1 with CAD70.6 million in cash and net debt of just over CAD8 million. Over 95% of gold equivalent ounces are from precious metals, with gold making up just under 71% and silver 25%.

• 2024 GEO guidance: On track to achieve full-year guidance of 82,000-92,000 GEOs. - Dividend: 8% increase to base quarterly dividend. - Transactions: Optimistic about 1-2 meaningful transactions in 2024. - Balance sheet: Potential to be net cash by end of 2024 if gold and silver prices stay above certain levels.

• Commodity price fluctuations: Impact on realized prices and revenues. - Transaction execution: Uncertainty around closing of potential transactions. - Operational: Delays or issues with mining operations like Capstone's Mantos Blancos.

Q: Ralph Profiti asked about the size of potential transactions and incremental GEOs from Island Gold/Magino transaction.

A: Jason Attew said transaction size could be between US$50 million to US$300 million; Iain Farmer commented on technical aspects but noted transaction not closed yet.

Q: Kerry Smith asked about targeted debt level and Alamos royalty structure.

A: Jason Attew said target net debt to EBITDA ratio around 2x; Iain Farmer commented on Alamos royalty distribution and mill optimization.

Q: John Tumazos asked about bundling assets for sale.

A: Jason Attew said assets are valuable and better to remain in portfolio for future GEO generation.

Q: Tanya Jakusconek asked about deal semantics of potential transactions.

A: Jason Attew said transactions are with senior companies selling assets and mid tiers looking to improve portfolios, not balance sheet repair.

Q: Brian MacArthur asked about deal structure and Windfall option.

A: Jason Attew referred to Iain Farmer who said if Windfall transaction materializes, stream would be vested with winsome consideration.