OR Royalties (OR) Q3 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q3 2024, earning 18,408 GEOs and generating $47.2 million in operating cash flows with a 96.3% cash margin, despite the loss of the Eagle Mine royalty.

• Ended Q3 with a cash balance of $58.5 million and net debt of $22.2 million, reflecting significant balance sheet improvement and increased financial flexibility.

• Declared and paid a quarterly dividend of $0.065 per share, marking the 40th consecutive dividend and over $300 million returned to shareholders to date, with another dividend scheduled for January 2025.

• Major transactions included a $225 million gold stream acquisition on SolGold's Cascabel project and a $44 million royalty on Spartan's Dalgaranga Gold Project, with the latter expected to close in Q4 2024.

• 1,595 GEOs earned but not sold due to quarter-end timing.

Financial highlights

• Q3 2024 revenues were $57.3 million, down from $62.1 million in Q3 2023, due to timing of GEO sales and the Eagle Mine suspension.

• Net earnings were $18.3 million ($0.10 per share) in Q3 2024, compared to a net loss of $20.0 million (–$0.11 per share) in Q3 2023; adjusted earnings rose to $28.8 million ($0.15 per share).

• Operating cash flows increased to $47.2 million from $43.5 million year-over-year.

• Cash margin improved to 96.3% from 93.0% year-over-year, leading among peers.

• Non-cash impairment charge and write-off associated with Renard impacted results.

Outlook and guidance

• On track to meet revised 2024 GEO delivery guidance of 77,000–83,000, following the Eagle Mine suspension.

• 2028 outlook targets 120,000–135,000 GEOs, representing ~40% growth from 2024 guidance midpoint; five-year outlook update to be provided in February 2025.

• Anticipates first gold and revenue from Namdini in Q1 2025, with Namdini expected to be a key growth driver.

• Dalgaranga project expected to provide catalysts in Q2 2025, with maiden reserve estimate and feasibility study, and potential production restart by late 2026.

• Expects improved production at Mantos Blancos and incremental GEO growth from Dalgaranga and Cascabel transactions within 2–3 years.