OR Royalties Inc.
Overview
OR Royalties Inc. is a mid-tier gold royalty and streaming company headquartered in Montreal, Canada, operating primarily in Canada and USA. Key assets include Ermitaño, Canadian Malartic Complex, CSA, and Mantos Blancos. The entity's portfolio comprises 171 royalties and 14 streams, with 20 assets currently producing, including 13 royalties and 7 streams. The business model centers on acquiring and managing a diversified portfolio of royalty and stream interests, providing capital to mining companies in exchange for these long-term agreements. This approach is designed to offer investors lower-risk exposure to precious metals and other commodities. Strategic focus is placed on acquiring interests in high-quality, long-life projects operated by established partners. As a non-operating partner, the organization has limited or no direct input into the conduct of mining operations, which mitigates direct operational and capital expenditure risks. The core value proposition rests on building a geographically and operationally diversified asset base to generate sustainable returns for shareholders.
Strategy
Strategic focus centers on disciplined capital allocation toward new and accretive royalty and stream investments to drive growth. The business strategy encompasses a multi-faceted approach, including acquiring interests in projects at various stages of development and operation. Growth is underpinned by the anticipated ramp-up of assets in the development pipeline and expansions at partner-operated mines. Management approach involves actively seeking opportunities to enhance the existing portfolio, such as amending agreements to increase exposure to underlying assets. The organization maintains a long-term growth pipeline of assets with development timelines that extend beyond the current 5-year outlook, providing a foundation for future value creation. Recent activities demonstrate a commitment to deploying capital across the asset lifecycle, from providing financing for producing assets to securing royalties on early-stage exploration projects, thereby balancing near-term cash flow with long-term growth potential.
Management
Executive leadership is headed by a President and Chief Executive Officer appointed in January 2024, a veteran with over 25 years of experience in the mining sector, including previous roles as CEO at other mining companies and as CFO at a major producer, bringing extensive capital markets and strategic transaction expertise. The Board of Directors is composed of 9 members, 8 of whom are independent, including an independent Chair. This structure ensures robust oversight and independent judgment. Governance is supported by 5 specialized board committees: Audit and Risk; Governance and Nomination; Environmental and Sustainability; Human Resources; and an Independent Investment Review Committee. The governance framework is reinforced by specific policies, such as a formal Conflict of Interest and Related Party Transaction Policy adopted in 2022, designed to ensure that all transactions are transparent and managed in the best interests of the corporation.
Sustainability
Sustainability initiatives are integrated into the investment process through an enhanced Environmental, Social, and Governance screening and monitoring tool, implemented in 2024 for all new investment decisions. A formal 2024-2027 climate change strategy, informed by a climate-related risk assessment, focuses on managing financial risks and enhancing disclosure. The organization purchased and retired certified carbon credits to offset its 2023 office-based Scope 2 and Scope 3 indirect emissions. Governance enhancements include the appointment of a dedicated Vice President, Sustainability and Communications and the implementation of key policies covering human rights, anti-bribery, and anti-corruption. Social responsibility is demonstrated through a donation matching policy for employee charitable contributions and recognition as a certified Great Place to Work®. The investment philosophy supports responsible operators to promote sustainable development.
Structure
The corporate structure includes a material wholly-owned subsidiary, Osisko Bermuda Limited, which holds the majority of the organization's international stream and offtake agreements. Strategic partnerships are utilized for significant transactions, including a 2024 agreement to jointly acquire a stream interest in partnership with a subsidiary of Franco-Nevada Corporation. The company maintains significant equity investments in other publicly traded mining entities, including a 24.4% ownership stake in Osisko Development Corp. and a 4.9% interest in Metals Acquisition Limited, often secured in conjunction with acquiring royalty or stream interests. Structural adjustments are also made to existing agreements, such as recent amendments to a silver stream that increased the company's attributable interest following ownership consolidation by the operating partner. These arrangements reflect a flexible approach to structuring investments and partnerships to optimize the portfolio.
Source
Osisko Gold Royalties Ltd - Annual Information Form - 2024
- Project should be interpreted as a single, group or complex of mines, deposits or other mineral assets. Name of the project should be identical to the official company naming convention.
- The ranges of values provided are indicative and should not be regarded as exact figures.
- Figures for exploration and development projects are based on available data and are indicative only; actual values may vary substantially.
- Royalties frequently apply to specific mineralized areas that may not coincide exactly with the boundaries of the overall project. As a result, even if a mine is currently in operation, the portion subject to the royalty may not be included in extraction activities until future years.
- Commodities are listed from most dominant to least dominant. Only selected commodities are shown.
- Table might not include all projects that are currently owned by the company. Displayed data are snapshots of the company's projects in time and might not be up to date.
- Exploration projects are partially represented in the table. Only projects with mineralization or strategic importance are shown.
- Companies might own processing facilities that are not included in the table. Those facilities play important role especially for companies operating in uranium, nickel and lithium sectors.
- Chart is always based on the company's primary listing.
- Presented values are denominated in currency of the country where the company is headquartered. Values like market capitalization might differ from the values visible in other parts of the page, where the currency is always USD.
- koz au: Thousand ounces of gold (production volume)
- moz au: Million ounces of gold (resource base or production volume)
- g/t: Grams per tonne (grade of gold or silver in ore)
- usd/oz au: US dollars per ounce of gold (cost metric)
- moz ag: Million ounces of silver (resource base or production volume)
- g/t ag: Grams per tonne of silver in ore (grade)
- usd/oz ag: US dollars per ounce of silver (cost metric)
- kt cu: Thousand tonnes of copper (production volume)
- mt ore: Million tonnes of ore (resource base for copper)
- %: Percent copper or uranium in ore (grade)
- usd/lb cu: US dollars per pound of copper (cost metric)
- mlb U3O8: Million pounds of uranium oxide (U3O8) (production or resource base)
- % eU3O8: Percent equivalent uranium oxide in ore (grade)
- usd/lb u3o8: US dollars per pound of uranium oxide (cost metric)
- Open Pit: Surface mining method using large excavated terraces to extract ore
- Underground: Subsurface mining through shafts, tunnels, and chambers
- ISR (In-Situ Recovery): Solution mining method using chemical leaching without excavation
- Exploration: Early-stage project searching for and defining mineral deposits
- Development: Mine under construction or preparation for production
- Operating: Active mine currently extracting and processing ore
- Expansion: Mine temporarily suspended or with limited production, in progress to increase production in the future
- Reclamation: Mine permanently closed or no longer producing, but the site is being rehabilitated
- P&P (Proven and Probable Reserves): Highest confidence mineral resources with detailed mine plans, it's a subset of M&I
- M&I (Measured and Indicated Resources): Well-defined resources with good geological confidence
- Inf (Inferred Resources): Estimated resources with limited geological confidence
- Scoping Study: High-level assessment to determine if a project warrants further investigation
- PEA (Preliminary Economic Assessment): Initial economic evaluation of a mineral project
- Pre-Feasibility (Preliminary Feasibility Study): Intermediate-level technical and economic assessment
- Feasibility (Definitive Feasibility Study): Comprehensive technical and economic evaluation for investment decisions
- BFS (Bankable Feasibility Study): Detailed study meeting lender requirements for project financing
- NPV (Net Present Value): Discounted value of future cash flows minus initial investment
- IRR (Internal Rate of Return): Discount rate that makes NPV equal to zero
- Payback Period: Time required to recover initial capital investment from project cash flows
- AISC (All-In Sustaining Cost): Total cost per ounce including sustaining capital and corporate costs
- Royalty: Payment to landowner/government based on percentage of production value or revenue
- Stream: Agreement to purchase future production at predetermined price, often below market rate
- NSR (Net Smelter Return): Royalty based on net revenue after smelting and refining costs
- GRR (Gross Revenue Royalty): Royalty based on total gross revenue before any deductions
- NPI (Net Profits Interest): Royalty based on net profits after operating costs and capital recovery