Unlocking Tier-1 Treasure: OR Royalties' Strategic Assets Position It to Exceed 5-Year GEO Outlook

The mining sector has long been a realm of volatility, but OR Royalties Inc. (OR) is turning risk into reward by strategically acquiring assets in Tier-1 jurisdictions and advancing projects with near-term catalysts. As the company's portfolio of projects—particularly the South Railroad silver stream and Spring Valley gold project—reach critical milestones, investors are poised to benefit from a de-risked pathway to exceeding its 5-year gold equivalent ounce (GEO) outlook of 110,000–125,000 GEOs. Here's why OR is a buy now.

South Railroad Silver Stream: A Low-Cost, High-Margin Growth Engine

OR's acquisition of a 100% silver stream on Orla Mining's South Railroad project in Nevada stands as a masterclass in unlocking hidden value. For just $13 million, OR secured the right to receive silver at 15% of the market price over the mine's life, starting in 2027. This deal not only diversifies OR's exposure to precious metals but also aligns with its focus on Tier-1 jurisdictions, where operational and regulatory risks are minimized.

Why It Matters:
- Exploration Momentum: Orla Mining's 2025 exploration budget of $15 million (18,000 meters of drilling) is already uncovering high-grade intersections, with plans to expand resources and define new oxide gold targets. A technical report and updated resource estimates are due by late 2025, setting the stage for production ramp-up.
- Margin Power: The 15% silver price participation ensures minimal capital outlay for OR while maximizing upside as silver prices rise.

Spring Valley: Permitting Progress Fuels Near-Term Gold Production

The Spring Valley gold project in Nevada is a linchpin of OR's growth strategy. With BLM approval expected by August 2025 and $835 million in EXIM financing secured, the project is on track to begin production in late 2025/2026, delivering 300,000+ gold ounces annually. OR's 2.0–3.5% NSR royalty on the core deposit ensures it captures a significant slice of this production.

Key Catalysts:
- Permitting Finalization: The BLM's Record of Decision by August 2025 removes regulatory uncertainty, allowing construction to begin by Q3 2025.
- Debt-Free Growth: EXIM financing under the “Make More in America” initiative reduces funding risks, enabling full-scale development.

Embedded Value: A Pipeline of Accretive Deals in Safe Jurisdictions

OR's seven advancing assets—including Cariboo Gold (190,000 oz Au/year by 2027), Upper Beaver ($200M-funded project targeting 210,000 oz Au/year by 2031), and Ermitaño's high-grade silver-gold discovery—are not yet reflected in its 5-year outlook. These projects, located in politically stable regions like Canada and Nevada, provide significant optionality to push GEOs far beyond 125,000.

Why Tier-1 Matters:
- Operational Certainty: Projects in Tier-1 jurisdictions benefit from robust infrastructure, skilled labor, and predictable regulatory environments.
- Strong Partnerships: OR's royalty agreements with operators like Agnico Eagle (Upper Beaver) and Orla Mining (South Railroad) ensure execution expertise and financial stability.

Financial Fortitude and Dividend Resilience

OR's Q1 2025 operating cash flow of $46.1 million and a 20% dividend increase for Q2 underscore its financial strength. The company's dividend policy remains unshaken by commodity price swings, thanks to a portfolio of low-cost royalties and streams. With $330 million in liquidity, OR is well-positioned to pursue accretive acquisitions and capitalize on emerging opportunities.

Risks? Yes, But Manageable

• Regulatory Delays: While Spring Valley's BLM timeline is tight, the project's advanced permitting stage reduces this risk.
• Commodity Volatility: OR's GEO targets assume $2,668/oz gold and $4.23/lb copper. However, its royalty structure insulates it from price declines, as it benefits from volume growth regardless of spot prices.

Conclusion: Act Now—Catalysts Are Imminent

OR Royalties is at a pivotal juncture. With Spring Valley's permits due in August, South Railroad's technical report by year-end, and a pipeline of projects in Tier-1 jurisdictions, the company is primed to exceed its 5-year GEO outlook and unlock shareholder value. Investors should act now to capture the upside from these near-term catalysts and the embedded growth in OR's portfolio.

Investment Thesis: OR Royalties offers a rare combination of low-risk exposure to Tier-1 assets, imminent production catalysts, and a dividend-backed financial model. With shares trading at a discount to its GEO-driven growth potential, this is a buy for long-term wealth creation.

Final Call: Don't let this opportunity slip. OR's strategic acquisitions and de-risked projects make it a standout play in the mining sector. Act now before the market catches up.