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.

• Completed major transactions including a 6% gold stream at SolGold's Cascabel and a 1.8% GRR at Spartan Resources' Dalgaranga, with the latter expected to close in Q4.

• Ended Q3 with a cash balance of $58.5 million and net debt just over $20 million, reflecting significant balance sheet improvement.

• Declared and paid a quarterly dividend of $0.065 per share, marking the 40th consecutive dividend, with another scheduled for January 2025.

• Net earnings were $18.3 million ($0.10/share), rebounding from a prior-year loss, and adjusted earnings rose to $28.8 million ($0.15/share).

Financial highlights

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

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

• Cash margin improved to 96.3% in Q3 2024, up from 93.0% in Q3 2023, and remains industry-leading.

• Adjusted earnings per share reached $0.15, and cash flow per share was $0.25, both up year-over-year.

• 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 after Eagle Mine suspension.

• 2028 outlook targets 120,000–135,000 GEOs, representing ~40% growth from 2024 guidance midpoint.

• Dalgaranga and Cascabel expected to contribute to growth within 2–3 years; Namdini mine commissioning expected in Q4 2024 with first gold pour before year-end.

• Anticipates net cash position by early 2025, providing flexibility for future deals.