OR Royalties: Record Revenue, New Deals, and More

Key Concepts

• Gold Equivalent Ounces (GEO): A unit used to express the total production of various metals (like silver) in terms of gold, allowing for standardized reporting.
• Royalty and Streaming: A business model where a company provides upfront capital to miners in exchange for a percentage of future production or revenue.
• Cash Margin: The difference between revenue and the cost of sales, indicating the profitability of the royalty/stream assets.
• Revolving Credit Facility: A flexible loan arrangement that allows a company to draw down funds as needed, up to a specified limit.
• Normal Share Repurchase Program: A corporate strategy where a company buys back its own shares from the open market to increase the value of remaining shares.

Q1 2026 Financial Performance

Osisko Royalties (O Royalties) reported record-breaking financial results for the first quarter of 2026:

• Production: Generated 22,740 attributable gold equivalent ounces (GEO).
• Revenue: Achieved a quarterly record of $102.8 million from royalties and streams.
• Profitability: Reported costs of sales at $3.3 million, resulting in a robust cash margin of approximately $99.5 million, representing a 96.8% margin.
• Liquidity: As of March 31, 2026, the company held $94.9 million in cash. This figure accounts for the $12.99 million spent on share repurchases during the quarter. The company’s $650 million revolving credit facility remains fully undrawn.

Asset Portfolio Updates and Transactions

• Cascabel Stream Repurchase: In February 2026, SolGold and the Xiangii Copper Company exercised an option to repurchase 50% of the Cascabel gold stream. Osisko received 4,290 ounces of gold as a one-time payment, valued at approximately $17.5 million at the time of delivery.
• Pending Acquisitions: The company is finalizing the acquisition of a royalty portfolio from Goldfields Limited and a royalty package covering the Spring Valley project (Selfish Royalty Corp). Both are expected to close in Q2 2026.
• Canadian Cobba Agreement: Osisko entered a binding agreement for a $28 million precious metal stream on assets in New Brunswick, including the Murray Brook properties and the Caribbe property/processing plant.
  • Strategic Impact: This stream consists exclusively of gold and silver.
  • Production Outlook: The transaction is projected to push production beyond the company’s previously published 5-year forecast (2030) of 120,000–135,000 GEOs. Production at these sites is scheduled to commence in 2029.

Synthesis and Conclusion

Osisko Royalties has demonstrated significant financial strength in Q1 2026, characterized by record revenues and high cash margins. The company is actively optimizing its portfolio by divesting partial interests (Cascabel) while simultaneously securing new, high-potential streams (Canadian Cobba). By exceeding its long-term production forecasts and maintaining a strong balance sheet with an undrawn credit facility, the company has positioned itself for sustained growth in the precious metals sector, a trend reflected in the recent appreciation of its stock price.

Disclaimer: This summary is for informational purposes only. The discussed stocks are part of the SRC mining special situation certificate, and the presenters may hold positions in the companies mentioned.