OR Royalties' Q2 2025: Diverging Views on Corporate Development and 5-Year Guidance Criteria

Corporate development focus, inclusion criteria for the 5-year guidance are the key contradictions discussed in OR Royalties' latest 2025Q2 earnings call.



Gold Equivalent Ounces (GEOs) and Production Guidance:
- OR Royalties earned 19,700 GEOs in Q2 2025, with an expectation to achieve its full-year guidance of 80,000 to 88,000 GEOs.
- Despite a mid-year delay due to the gold/silver ratio, the company anticipates a stronger second half driven by increased production at Canadian Malartic and improved silver grades at Mantos Blancos.

Financial Performance and Cash Flow:
- Quarterly revenue was $60.4 million, with net earnings per share of $0.17, marking significant year-over-year improvement.
- Cash flow per share was $0.27, up from $0.21 in Q2 2024. This was driven by higher commodity prices, particularly gold.

Debt Reduction and Capital Returns:
- OR Royalties ended Q2 with $49.6 million in cash, achieving a net cash position for the first time in years by paying down its credit facility.
- The company declared and paid its quarterly dividend of $0.055 per share, marking its 43rd consecutive dividend, reflecting confidence in consistent cash flows.

Strategic Acquisitions and Growth:
- OR Royalties acquired a 100% silver stream on Orla Mining's South Railroad project for $13 million, with positive prospects for the project's future development.
- The company's focus remains on disciplined capital allocation, with plans to pursue high-quality accretive streams and royalties to bolster its current and near-term GEO deliveries and cash flows.