OR Royalties: Record Quarter with $102.8 Million in Revenue, Higher Dividend, and Project Updates

Key Concepts

• Gold Equivalent Ounces (GEO): A unit used to express the total production of various metals in terms of gold.
• Net Smelter Return (NSR): A royalty payment based on the gross revenue from the sale of minerals minus specific processing and transportation costs.
• Gross Revenue Royalty (GRR): A royalty based on the total revenue generated from the sale of minerals, without deductions.
• Mineral Reserves (Proven and Probable): The economically mineable part of a measured or indicated mineral resource.
• Throughput: The amount of material (ore) processed by a mill or facility within a specific timeframe.

---

Financial Performance (Q1 2026)

OR Royalties reported strong growth in the first quarter of 2026, characterized by record-breaking revenue and increased production.

• Production: 22,740 gold equivalent ounces, an increase of approximately $3,700 over Q1 2025.
• Revenue: $102.8 million from royalties and streams, nearly doubling the previous year's Q1 figures.
• Profitability: Cash margin reached $99.5 million (96.8% margin) with a net income of $73.6 million.
• Dividend Policy: Reflecting the strong financial position, the company announced an 18.2% increase in the Q2 2026 dividend, raising it to 6.5 US cents per share.

---

Key Project Updates and Developments

Island Gold District (Alamos Gold)

• Expansion: Underground throughput is scheduled to scale from 1,400 tons per day (Q1 2026) to 2,000 tons per day by year-end 2026, reaching 24,400 tons per day by early 2027.
• Reserves: A February 2026 mining plan update indicates a 30% increase in proven and probable reserves, totaling 5.1 million ounces of gold.
• Royalty Impact: The accelerated plan shifts production into higher NSR threshold tiers (2% and 3%).

Dalgaranga and Mount Magnet (Spartan Resources)

• Never Never Deposit: First ore delivery occurred in March 2026, ahead of schedule. Processing is slated for the June 2026 quarter.
• Gilbey’s North: Strong exploration results were reported on April 22, 2026. OR Royalties expects its first payment under a 1.44% GRR shortly.

Glenburgh and Mount Egerton (Benz Mining)

• Exploration: A fully funded 250,000-meter drilling program is active.
• Discoveries: New high-grade corridors at Caracane and ultra-high-grade mineralization at Mount Egerton (a potential satellite source) were announced on April 9, 2026.
• Royalty: OR Royalties holds a 1.08% GRR on these projects.

Prolon Project (Talisker Resources)

• Financing: Closed a $52.1 million CAD deal.
• Drilling: The 2026 program was expanded significantly from 30,000m to 105,000m.
• Results: Intersected a 60m strike length averaging 27g/t gold. A technical report and Preliminary Economic Assessment (PEA) are expected in Q2 2026.

Shaki Chiwaan Project (PMAT Resources)

• Permitting: Environmental and social impact assessments were submitted on April 1, 2026.
• Timeline: Final investment decision (FID) is targeted for the second half of 2027.
• Royalty Structure: Tiered NSR of 1.5%–3.5% on precious metals and 2% on lithium.

WKP Project (OceanaGold)

• Drilling: High-grade results (14.9m at 16.3g/t gold) reported on April 1, 2026.
• Expansion: The project will increase to five active drills in Q2 2026. OR Royalties holds a 2% NSR.

---

Synthesis and Conclusion

OR Royalties has demonstrated robust financial health in early 2026, characterized by record revenues and a dividend increase. The company’s strategy of maintaining a diverse pipeline of royalty interests is yielding tangible results, with several key projects—such as Island Gold and the Dalgaranga assets—hitting critical production and exploration milestones. By securing royalties across various stages of development (from exploration to active production), the company is positioned for sustained growth, providing shareholders with exposure to high-grade gold and lithium assets.