OR Royalties Inc.

Q2 revenue was $97.8 million, up from $60.4 million a year ago, reflecting 62% growth on 5% more GEOs. Cash margin was $94.7 million, or 96.8% of revenues, versus $57.8 million and 95.8% last year. Net earnings were $61.4 million, or $0.33 per basic share, compared with $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, or $0.44 per share, versus $0.27 last year. Management said first-half deliveries of 43,497 GEOs were up 12% year over year and remain on track for full-year 2026 guidance of 80,000 to 90,000 GEOs. Jason Attew said the second half should be modestly lighter than the first after the Canadian Malartic wall movement, but the 2026 and 2030 outlooks remain intact. The company also closed the Gold Fields royalty portfolio and Spring Valley acquisitions for $335 million total, closed the $28 million Murray Brook stream after quarter end, and amended its revolver to $850 million from $650 million with maturity extended to August 2030.

Jason Attew framed the quarter around execution, capital allocation, and portfolio durability. He emphasized that OR’s business model converted a small amount of GEO growth into large cash flow growth, and he described Canadian Malartic as a “crown jewel” with no change to the long-term view of the asset or the company’s 2030 outlook. His tone was confident and defensive on concentration risk, arguing that the portfolio is diversified enough and that the operator’s safety systems worked as intended.

Frédéric Ruel focused on the quarter’s financial quality and balance sheet flexibility. He cited revenue of $97.8 million, cash margin of $94.7 million, net earnings of $61.4 million, and operating cash flow of $83.2 million, then noted June cash of $75.6 million and $215 million drawn on the credit facility for net debt of $139 million. He also highlighted the 18.2% dividend increase to $0.065 per share, over 225,000 shares repurchased for $8 million in the quarter and about 1.6 million shares repurchased year to date, plus the larger $850 million revolver and longer maturity as tools to support either more deals or debt reduction.

Analysts focused heavily on the Canadian Malartic wall movement and whether it increased concentration risk. Management said it does not, pointing to the asset’s Quebec location, Agnico’s operating record, and the fact that Canadian Malartic is about 25% to 30% of NAV rather than an overwhelming share; they also stressed that the system detected the issue and no one was hurt. Questions also covered the longer-term outlook and capital allocation: management said the 2030 view will be updated annually in February and that any new deals would still need to be accretive, Tier 1, and either producing or likely to contribute within the five-year outlook. On Amulsar, management said construction is tracking more or less on budget, first production is expected in mid-September, and accrued ounces begin only after the operator repays its $150 million loan, likely in 2028 but potentially late 2027 if prices are strong.