OR Royalties (OR) Q2 2024 earnings summary

Executive summary

• Achieved record operating cash flows of $52.3M and a 97% cash margin in Q2 2024, with revenues of $64.8M, up from $60.5M in Q2 2023.

• Earned 20,068 GEOs in Q2 2024, totaling 42,327 GEOs for H1 2024.

• Net loss of $21.1M ($0.11/share) due to a $67.8M non-cash impairment on the Eagle NSR royalty; adjusted EPS improved to $0.18 from $0.15 year-over-year.

• Declared and paid a quarterly dividend of $0.065/share, marking the 39th consecutive dividend; dividend increased by 8%.

• Appointment of Wendy Louie to the Board of Directors, bringing mining finance experience.

Financial highlights

• Q2 2024 revenues reached $64.8M, supported by higher precious metal prices.

• Operating cash flows were $52.3M, up from $47.4M in Q2 2023.

• Adjusted earnings were $33.2M ($0.18/share), up from $27.2M ($0.15/share) year-over-year.

• Net loss of $21.1M ($0.11/share) due to a $67.8M non-cash impairment on Eagle NSR royalty.

• Cash margin improved to 97% in Q2 2024, up from 93% in Q2 2023.

Outlook and guidance

• 2024 GEO delivery guidance revised to 77,000–83,000 due to Eagle Mine suspension and Mantos Blancos ramp-up delay.

• 2028 outlook projects 120,000–135,000 GEOs, representing 40% growth over 2024 guidance midpoint.

• Five-year outlook remains unchanged, based on partner forecasts and internal estimates.

• Anticipates stronger H2 2024 performance from new streams and royalties, including CSA copper stream and Akasaba West.

• Namdini project on track for first gold pour by year-end, supporting 2025 growth.