OR Royalties Reports Q2 2025 Results
MONTRÉAL, Aug. 05, 2025 (GLOBE NEWSWIRE) -- OR Royalties Inc. ("OR Royalties" or the "Company") (OR: TSX & NYSE) today announced its consolidated financial results for the second quarter of 2025. Amounts presented are in United States dollars, except where otherwise noted.
Highlights
19,700 gold equivalent ounces ("GEOs1") earned (20,068 GEOs in Q2 20242);
Revenues from royalties and streams of $60.4 million ($47.4 million in Q2 2024);
Cash flows generated by operating activities of $51.4 million ($38.2 million in Q2 2024);
Cash margin3 of $57.8 million or 95.8% ($45.8 million or 96.6% in Q2 2024);
Net earnings of $32.4 million, $0.17 per basic share (net loss of $15.4 million, $0.08 per basic share in Q2 2024);
Adjusted earnings3 of $34.1 million, $0.18 per basic share ($24.2 million, $0.13 per basic share in Q2 2024);
Net repayments of $40.0 million under the revolving credit facility;
Cash balance of $49.6 million and debt outstanding of $35.7 million as at June 30, 2025;
Increase in the revolving credit facility to $650.0 million plus an uncommitted accordion of $200.0 million, and extension of the maturity date to May 30, 2029;
First payment received from Cardinal Namdini Mining Ltd. under the Namdini 1.0% NSR royalty;
First payment received from Talisker Resources Ltd. under the Bralorne 1.7% NSR royalty;
Acquisition by OR Royalties International Ltd. ("ORIL") of a 100% silver stream on Orla Mining Ltd.'s South Railroad project in Nevada, United States for total cash consideration of $13.0 million;
Acquisition of a basket of royalties across various projects in British Columbia, Canada, from Sable Resources Ltd. ("Sable Resources") for consideration of C$3.8 million ($2.8 million), as well as certain rights in relation to the future acquisition of similar interests from Sable Resources;
Completed a corporate name change to "OR Royalties Inc." and "Redevances OR Inc." (in French) following receipt of shareholder approval at the annual and special meeting of shareholders held on May 8, 2025;
Publication of the fifth edition of the Company's sustainability report, Growing Responsibly, in addition to the OR Royalties 2025 Asset Handbook; and,
Declaration of a quarterly dividend of $0.055 per common share payable on July 15, 2025 to shareholders of record as of the close of business on June 30, 2025, an increase of 20% over the previous quarterly dividend, based on the foreign currency rate (C$/US$) on the declaration date of the first quarter dividend.
Subsequent to June 30, 2025
Additional repayments of $21.0 million under the revolving credit facility;
Declaration of a quarterly dividend of $0.055 per common share payable on October 15, 2025 to shareholders of record as of the close of business on September 30, 2025;
Osisko Development Corp. raising $645 million to start construction activities at Cariboo; and,
As expected, an early buyback notice received from Ramelius Resources Limited, for 20% of the Dalgaranga Gross Revenue Royalty ("GRR"), reducing the GRR rate on Dalgaranga from 1.8% to 1.44%, and reducing the GRR rate on Benz Mining Corp.'s Glenburgh and Mt Egerton projects from 1.35% to 1.08%.
Management Commentary
Jason Attew, President & CEO of OR Royalties commented: "OR Royalties' is on track to achieve its 2025 annual guidance of 80,000-88,000 GEOs, as we expect a slightly stronger second half in terms of GEOs earned. Looking a bit closer at some of our major GEO contributors over the past six months, we have seen continued outperformance at Canadian Malartic largely offsetting silver grade-related underperformance at Mantos Blancos.
Elsewhere, we were pleased to have received our first royalty payments during the second quarter from both Cardinal Namdini Mining's Namdini gold mine in Ghana, as well as Talisker Resources' Bralorne gold mine in British Columbia, bringing the total number of producing assets in our portfolio to 22. We wish both operators the best going forward as they ramp up their respective operations over the balance of the year.
As stated previously in our June 2, 2025, press release, through the first seven months of the year, there have been a number of positive advancements on several portfolio assets that sit outside of our current 5-year outlook. In addition to all of that progress, we are also expecting the following key portfolio catalysts before year-end: Capstone Copper's Phase II Expansion Feasibility Study for Mantos Blancos; Alamos Gold's Island Gold District Expansion Study; Gold Fields' updated Feasibility Study for Windfall, along with the project's final permits; Ramelius Resources' Integrated Feasibility Study for Dalgaranga, as well as potential for first gold production from the mine later this year; Orla Mining's Updated Feasibility Study for South Railroad; updates from Osisko Development as it commences mine construction activities at Cariboo; and, finally, the closing of Harmony Gold's acquisition of MAC Copper, resulting in CSA being subsequently optimized by one of the best deep underground mining operators in the world.
Finally, I would like to acknowledge the present strength of the Company's balance sheet, not only due to our recently increased revolving credit facility, but also given the fact that as of June 30, 2025, OR Royalties was in a net-cash position for the first time in several years. This enhanced liquidity provides the Company with the financial capacity to pursue accretive growth opportunities."
Q2 2025 RESULTS CONFERENCE AND WEBCAST CALL DETAILS
Conference Call:
Wednesday, August 6th, 2025 at 10:00 am ET
Dial-in Numbers:(Option 1)
North American Toll-Free: 1 (800) 717-1738Local, Montreal: 1 (514) 400-3792Local, Toronto: 1 (289) 514-5100Local, New York: 1 (646) 307-1865Conference ID: 57040
Webcast link:(Option 2)
https://viavid.webcasts.com/starthere.jsp?ei=1725297&tp_key=efb4711705
Replay (available until Saturday, September 6th, 2025 at 11:59 PM ET):
North American Toll-Free: 1 (888) 660-6264Local, Toronto: 1 (289) 819-1325Local, New York: 1 (646) 517-3975Playback Passcode: 57040#
Replay also available on our website at www.ORroyalties.com
Qualified Person
The scientific and technical content of this news release has been reviewed and approved by Guy Desharnais, Ph.D., P.Geo., Vice President, Project Evaluation at OR Royalties Inc., who is a "qualified person" as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101").
About OR Royalties Inc.
OR Royalties is a precious metals royalty and streaming company focused on Tier-1 mining jurisdictions defined as Canada, the United States, and Australia. OR Royalties commenced activities in June 2014 with a single producing asset, and today holds a portfolio of over 195 royalties, streams and similar interests. OR Royalties' portfolio is anchored by its cornerstone asset, the 3-5% net smelter return royalty on Agnico Eagle Mines Ltd.'s Canadian Malartic Complex, one of the world's largest gold mines.
OR Royalties' head office is located at 1100 Avenue des Canadiens-de-Montréal, Suite 300, Montréal, Québec, H3B 2S2.
For further information, please contact OR Royalties Inc.
Grant MoentingVice President, Capital MarketsTel: (514) 940-0670 x116Cell: (365) 275-1954Email:
Heather TaylorVice President, Sustainability and CommunicationsTel: (514) 940-0670 x105Email:
Notes:
(1) Gold Equivalent OuncesGEOs are calculated on a quarterly basis and include royalties and streams. Silver ounces and copper tonnes earned from royalty and stream agreements are converted to gold equivalent ounces by multiplying the silver ounces or copper tonnes earned by the average silver price per ounce or copper price per tonne for the period and dividing by the average gold price per ounce for the period. Cash royalties and other metals and commodities are converted into gold equivalent ounces by dividing the associated revenue by the average gold price per ounce for the period.
Average Metal Prices
Three months ended June 30,
2025
2024
Gold (i)
$3,280
$2,338
Silver (ii)
$33.68
$28.84
Copper (iii)
$9,524
$9,753
Exchange rate (C$/US$) (iv)
0.7226
0.7308
The average price represents the London Bullion Market Association's PM price in U.S. dollars per ounce.
The average price represents the London Bullion Market Association's price in U.S. dollars per ounce.
The average price represents the London Metal Exchange's price in U.S. dollars per tonne.
Bank of Canada daily rate.
(2) Three months ended June 30, 2024 ("Q2 2024").
(3) Non-IFRS Measures
Cash margin
Cash margin in dollars and in percentage of revenues are non-IFRS financial measures. Cash margin (in dollars) is defined by OR Royalties as revenues less cost of sales (excluding depletion). Cash margin (in percentage of revenues) is obtained from the cash margin (in dollars) divided by revenues.
Management uses cash margin in dollars and in percentage of revenues to evaluate OR Royalties ability to generate positive cash flow from its royalty, stream and other interests. Management and certain investors also use this information, together with measures determined in accordance with IFRS Accounting Standards such as gross profit and operating cash flows, to evaluate OR Royalties' performance relative to peers in the mining industry who present these measures on a similar basis. Cash margin in dollars and in percentage of revenues are only intended to provide additional information to investors and analysts and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. They do not have any standardized meaning under IFRS Accounting Standards and may not be comparable to similar measures presented by other issuers.
A reconciliation of the cash margin per type of interests (in thousands of dollars and in percentage of revenues) is presented below:
Three months endedJune 30,
Six months ended June 30,
2025
2024
2025
2024
$
$
$
$
Royalty interests
Revenues
42,185
33,790
78,975
66,819
Less: cost of sales (excluding depletion)
(171
)
(106
)
(316
)
(184
)
Cash margin (in dollars)
42,014
33,684
78,659
66,635
Depletion
(3,408
)
(3,918
)
(6,118
)
(8,022
)
Gross profit
38,606
29,766
72,541
58,613
Stream interests
Revenues
18,179
13,601
36,305
25,619
Less: cost of sales (excluding depletion)
(2,389
)
(1,522
)
(3,863
)
(2,803
)
Cash margin (in dollars)
15,790
12,079
32,442
22,816
Depletion
(4,205
)
(3,691
)
(9,239
)
(8,133
)
Gross profit
11,585
8,388
23,203
14,683
Royalty and stream interestsTotal cash margin (in dollars)
57,804
45,763
111,101
89,451
Divided by: total revenues
60,364
47,391
115,280
92,438
Cash margin (in percentage of revenues)
95.8
%
96.6
%
96.4
%
96.8
%
Total, Gross profit
50,191
38,154
95,744
73,296
Adjusted earnings and adjusted earnings per basic share
Adjusted earnings and adjusted earnings per basic share are non-IFRS financial measures and are defined by OR Royalties by excluding the following items from net earnings (loss) and earnings (loss) per share: foreign exchange gains (losses), impairment charges and reversal related to royalty, stream and other interests, changes in allowance for expected credit losses, write-offs and impairment of investments, gains (losses) on disposal of assets, gains (losses) on investments, share of income (loss) of associates, transaction costs and other items such as non-cash gains (losses), as well as the impact of income taxes on these items. Adjusted earnings per basic share is obtained from the adjusted earnings divided by the weighted average number of common shares outstanding for the period.
Management uses adjusted earnings and adjusted earnings per basic share to evaluate the underlying operating performance of OR Royalties as a whole for the reporting periods presented, to assist with the planning and forecasting of future operating results, and to supplement information in its consolidated financial statements. Management believes that in addition to measures prepared in accordance with IFRS Accounting Standards such as net earnings (loss) and net earnings (loss) per basic share, investors and analysts use adjusted earnings and adjusted earnings per basic share to evaluate the results of the underlying business of OR Royalties, particularly since the excluded items are typically not included in OR Royalties' annual guidance. While the adjustments to net earnings (loss) and net earnings (loss) per basic share in these measures include items that are both recurring and non-recurring, management believes that adjusted earnings and adjusted net earnings per basic share are useful measures of OR Royalties' performance because they adjust for items which may not relate to or have a disproportionate effect on the period in which they are recognized, impact the comparability of the core operating results from period to period, are not always reflective of the underlying operating performance of the business and/or are not necessarily indicative of future operating results. Adjusted net earnings and adjusted net earnings per basic share are intended to provide additional information to investors and analysts and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. They do not have any standardized meaning under IFRS Accounting Standards and may not be comparable to similar measures presented by other issuers.
A reconciliation of net earnings to adjusted net earnings is presented below:
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
(in thousands of dollars, except per share amounts)
$
$
$
