OR Royalties Q2 Earnings Call Highlights

• Why Bloom Energy May Be the Most Important AI Infrastructure Stock

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.

Second-Quarter Results

• MarketBeat Week in Review – 07/20- 07/24

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.

• Oracle Is One Step From Junk—Can It Afford the AI Boom?

Attew said the company converted $0.968 of every revenue dollar into cash margin during the quarter.

Canadian Malartic Update

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 unaffected because Barnat was already expected to be mined out by 2028 or 2029. He said Odyssey, which is expected to be the future of Canadian Malartic, set a quarterly production record of 28,800 ounces. The first phase of shaft No. 1 sinking was completed in July at a depth of 1,586 meters, and first shaft production remains scheduled for the second quarter of 2027.

Attew also noted that Canadian Malartic experienced a six-day mill shutdown during the second quarter following a fatal accident in April. He expressed condolences to those affected and said the company supported Agnico’s emphasis on worker safety.

Portfolio and Outlook

OR Royalties said the second half of 2026 is expected to be modestly lighter than the first half. In addition to the Barnat disruption, concentrate transportation logistics at CSA deferred some silver and copper GEOs into the second half, while Mantos Blancos delivered fewer GEOs than in the first quarter because silver grades were weighted toward the beginning of the year.

Management expects ramp-ups at Namdini, San Gabriel, Dalgaranga, CB and CSA to partly offset the impact. OR Royalties received its first royalty payment from Dalgaranga during the quarter, while the company said its increased 2% royalty at Namdini is becoming a more significant contributor as the operation ramps up.

The company currently has 23 producing assets and expects Cabral Gold’s Cuiú project in Brazil to become its 24th producing asset, with commissioning still scheduled for the fourth quarter.

Attew said the company expects updates later this year from Harmony, including fiscal 2027 guidance and an updated mineral resource estimate and life-of-mine plan. He also highlighted expected first gold at Amulsar in September. OR Royalties’ stream there is expected to begin accruing from first production, although first payments are currently expected in 2028 and depend largely on commodity prices and the pace at which operator United Gold repays its loan.

Capital Allocation and Acquisitions

The company closed the Gold Fields royalty portfolio and Spring Valley acquisitions during the quarter, totaling $335 million and largely funded through its revolving credit facility. OR Royalties ended June with $75.6 million of cash and $215 million drawn on its credit facility, for net debt of $139 million. The company repaid $18 million on the facility during the quarter.

Subsequent to quarter-end, OR Royalties closed a $28 million Murray Brook precious-metals stream with Canadian Copper, along with a $4 million equity subscription. It also expects to close a $15 million extension of its royalty coverage at Chile’s Costa Fuego project to include the La Verde discovery.

The board increased the quarterly dividend by 18.2% to $0.065 per share in May. A further $0.065-per-share dividend was declared and is payable Oct. 15. The company repurchased more than 225,000 shares for $8 million during the second quarter and about 1 million additional shares for $29.1 million in July.

Earlier this week, OR Royalties increased its revolving credit facility to $850 million from $650 million, increased its accordion feature to $350 million from $200 million, and extended the facility’s maturity to August 2030 from May 2029.

Management said it will continue to prioritize accretive royalty and stream opportunities, while considering debt repayment and opportunistic share repurchases if no suitable acquisitions are completed.

About OR Royalties (NYSE:OR)

OR Royalties PLC (NYSE: OR) is a closed-ended investment company that specializes in acquiring and managing royalty interests in life science and pharmaceutical products. The company provides capital to biotechnology, specialty pharmaceutical and medical device companies in exchange for a share of future sales revenues. By focusing on royalties secured against marketed products, OR Royalties aims to deliver income and growth potential while minimizing the development and commercialization risks typically associated with direct equity stakes.

The company's core activities include sourcing royalty transactions, structuring bespoke financing solutions and actively monitoring a diversified portfolio of assets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

Source MarketBeat