OR Royalties Q2 Earnings Call Highlights

OR Royalties NYSE: OR reported second-quarter revenue of $97.8 million and operating cash flow of $83.2 million, with both measures rising 62% from a year earlier as realized gold and silver prices increased and gold-equivalent-ounce deliveries grew 5%. President and CEO Jason Attew said the company delivered 43,497 gold equivalent ounces, or GEOs, during the first half of 2026, up 12% from the first half of 2025. The company maintained its full-year guidance for 80,000 to 90,000 GEOs and said its 2030 outlook of 120,000 to 135,000 GEOs remains unchanged.

Chief Financial Officer and VP of Finance Fréd Ruel said second-quarter revenue increased from $60.4 million in the prior-year period, supported by realized prices of $4,504 per ounce of gold and $70 per ounce of silver. Cash margin totaled $94.7 million, or 96.8% of revenue, compared with $57.8 million, or 95.8% of revenue, a year earlier. Royalties contributed $62.8 million of revenue during the quarter, while streams contributed $35 million. Net earnings were $61.4 million, or $0.33 per basic share, compared with $0.17 per share a year earlier. Adjusted earnings totaled $60.5 million, or $0.32 per share, up 78% year over year. Operating cash flow was $83.2 million, or $0.44 per share, compared with $0.27 per share in the prior-year quarter.

Management addressed the July 1 rock mass movement along the north wall of the Barnat open pit at Canadian Malartic. Attew said no one was injured and that Agnico Eagle’s monitoring systems had tracked the wall movement, while mining in the affected area had already been suspended as a precaution. According to Attew, about 1 million tons of moved material will remain in place. Agnico is expected to spend the third quarter building safety berms and access roads, with mining in the affected area anticipated to resume during the fourth quarter. Attew said approximately 370,000 ounces of gold are now considered inaccessible over the next three years, including 60,000 to 80,000 ounces in the second half of 2026 and up to roughly 150,000 ounces in each of 2027 and 2028. Applying OR Royalties’ 5% interest to those figures implies approximately 3,500 fewer GEOs in 2026 and up to roughly 7,500 fewer GEOs in each of 2027 and 2028, before any mitigation or recovery work by Agnico. Despite the near-term impact, Attew said the company’s 2026 guidance remains intact and the longer-term outlook is unaffe...