OR Royalties Inc. (OR) Earnings Call Transcript & Summary

Good afternoon, everyone. Firstly, welcome, everyone. It's great to see such a really, really good turnout for Monday afternoon. It's also really great to be here gathered when the commodities that underpin our business, they're up 2% to 3% today, especially silver up 3% or touched up 3%. We are very fortunate in that we have participants here in person and/or dialing in from New York, Los Angeles, London, Switzerland, Puerto Rico, Austria, Germany and Australia. We also got very lucky as to the original date of our Investor Day would have coincided with the Blue Jays World Series Parade have they obviously pulled off the win. Not to address too much, but again, what a series of all my years watching Major League Baseball that was by far the best world series is not even close. It had all the drama, as I think people know, and at the end of the day, as a fan of all sports, how could anyone not be optimistic about the future of the Blue Jays. And in my mind, that's not too dissimilar as to what we are experiencing at OR royalties. I believe we're at an inflection point with respect to our company, our growth path that we're embarking on and the shareholder returns that we hope to achieve. So if there is just one takeaway from our next 120 minutes together, it should be similar to what most Jay's fans should be feeling right now, and that's one of optimism. So I do have to start and state that my colleagues and I will be making forward-looking statements today for which actual results may differ. And procedurally, we'd like to hold all your questions until after all of our presenters have the opportunity to come and present. So with respect to the [indiscernible] , we're going to try and be as efficient as possible with your time today. As you can see by this agenda, the bulk of our presentation will be focused on our key growth assets. And hopefully, after our 120 minutes together, if we've done nothing else, you should take away 3 things: firstly, a better appreciation of our asset quality, the talent density of our team. And lastly, as I mentioned, the optimism with respect to our holistic business and some clarity of direction as to where this management team plans to take our royalties. Just quickly on the quality of our assets, my colleagues are going to spend some considerable time on 3 of our assets this afternoon. The first, as you can see on the agenda of Mantos Blancos, Second, with respect to our newest contributor, Dalgaranga; and finally, with our cornerstone asset, Canadian Malartic. The second takeaway, as I mentioned, should be about our team. As you may have noticed, our team is very, very lean. 50% of our total headcount is actually here to host you today. They're around the room, and they'll be presenting. And I think it's also important to note that the average tenure of this team is 7 years, which is quite impressive when you think that the company just last year celebrated its tenth anniversary. In addition, myself and Brendan, do bring down the average considerably -- considering that we both joined the company just 2 years ago. Now that I'm looking at these head shots, either Alija applied some exceptionally good facet program these photos were taken the last time the Blue Jays won the pennant. What I would say the team is incredibly proud of and what we certainly engender and I promote is access ability. We are always open to meet with our stakeholders, specifically the analyst community as well as all our shareholders and prospective shareholders. As you'll hear later from both Mike and Iain, this is also a team that our whole team manages risk on behalf of our shareholders. So real quick on our business model as a mid-tier royalty and streaming company, we do have a highly efficient business model. And as I say, if it's done right, it's the only business for which you can provide positive asymmetric returns for your shareholders. The model, as I think people know, is highly efficient. It's highly scalable. Right now, we have 22 producing assets out of an asset list of around 190 and is growing. So it provides significant both asset and cash flow diversification. As you also know, with the royalty and streaming companies, there is no direct capital operating or exploration cost exposure. We're highly insulated from inflationary cost pressures. And for ourselves, we are a very hard margin business. As you may have heard last week when we reported a quarter, we have a 97% cash margin in the first 9 months of 2025. While we recognize that there are no barriers to entry to set up a royalty and streaming company, and there are a number of new entrants, as I'm sure everyone is aware, or you think of the[indiscernible] streaming company that set up the Lending royalties or Lennar. I think they call themselves Lunar at this point. And I would say while the model may be easily duplicated, it is very, very hard to replicate. Our Canadian Malartic asset is well recognized as the best royalty in the sector for which I think a lot of you do know, but if you didn't, was a result of a corporate action. It was a defense solution to a hostile bid. In other words, one cannot just go out and acquire a Canadian Malartic type royalty and any of the active processes that we and/or our peers are currently involved in. Canadian Malartic truly is a cornerstone and unique. So why we're royalties. As I said, we have 22 producing assets with some of the best-in-class operators that exhibit both exceptional technical acumen as well as operational excellence. We're soon to have 23 producing assets as you'll hear later on from Darren at Ramelius. It is important to note that our top 3 assets are operated by well-established operators with a deep history of developing and expanding mines in a very responsible manner, those being Agnico Eagle, Capstone Copper and Harmony Gold. We are a precious metal investment vehicle. 95% of our gold equivalent ounces are in precious metals. And in fact, with silver trading, as I mentioned, over $50 this morning. for all those silver bugs, silver is a big contributor. I did mention in our conference call last Thursday that our third quarter, we had 30% of our geos in silver. We also have 84% of our mines in the top quartile or the top second quartile or the top half or better in terms of cash costs. In other words, there's no ROE assets that only work during current commodity price cycles. So how does one create value for shareholders? In our mind, it has everything to do with consistent and predictable business strategy, coupled with growth in both our operating cash flow per share and NAV per share. Despite some bumps in the road, our track record, as you can see since inception has been pretty good. And by the way, one of the governance changes that Norm our chair who is here and myself made when I arrived 2 years ago, was instituting both a minimum share ownership structure for both our employees and directors as well as restructured our long-term bonuses for the senior executive team. And so these long-term bonuses are directly measured against per share metrics, specifically growth in operating cash flow per share as well as NAV per share. As some of you would know, we host an Investor Day every couple of years. So I thought it would be helpful for the audience to contextualize what has changed since then. You can see the 8 items outlined in which a simplified business model would be core to that. Our team developed a corporate purpose statement, which goes as follows: to sustainably grow as a pure-play precious metals royalty and streaming company, which investors have to own. We've made huge strides in simplifying the business and turning the business around, and we do very much appreciate the patience and support of our shareholders. One of the areas we are most proud of and that Fred will be speaking to shortly was the relentless deleveraging journey. Just for context, when I joined the company, we had approximately $300 million of debt. Today, as Fred will report, we have USD 120 million in cash and no debt. And this is an incredibly good place for our team to go out and try to bring more assets into the portfolio. That's on the internal side of the ledger. So those are factors that I say that we always can control. On the external side, I think a lot of you have a good grasp as to what we're seeing from a macro perspective. It is these factors, obviously, that have led to exceptional performance of gold and silver. One area, though I would like to spend a little bit more time on is the situation that we're currently in, on the global debt to GDP levels. You have a situation everywhere when you look across the globe, the government finances are an absolute ruins. If you look at France, as a debt amounts, it goes through Prime Ministers faster than anyone can ever recall, Britain faces big tax raises to plug a hole in its budget after well for reforms were all but abandoned. In Japan's recent Prime Minister elections, it was clear. They want to splash out despite the country's vast debt situation. And that obviously all leads us to the U.S. or America and what I believe is an unsustainable deficit, which I'll speak more to later on. So for all the profile on publicity that you see in the U.S. capital market situation, the MAG 7 or the Magnificat 7 gets the most out of attention mainly because you hear it being a bellwether for the economy. The MAG 7, which you can see is tracked here obviously has is part of a large concentration of many global portfolios is likely for the portfolio managers in the room part of your portfolio. So I thought it'd be very interesting to illustrate if one were to synthetically create an index of all the 6 largest royalty and streaming companies or what I call the royalty. As you can see, for every $100 invested, if you invested at the Investor Day 2 years ago, you would have had a substantial return, in fact, in line with the MAG 7. And if you did decide to invest in OR, it has actually outperformed the MAG 7 by nearly 70%. These are exceptional returns. They get very little traction or fanfare outside of our small niche sector. I hope events like these and the people that are here that obviously broadcast and advocate for our company in the sector can use this and again inform other folks, generalists and the like to really talk about how our sector has done incredibly well and really outperformed global markets. I'd like to take the opportunity also to talk about the confluence of macroeconomic factors that I believe sets up an incredibly constructive gold tape for many years to come. Here's a few stats for you. Today, the U.S. has $38 trillion of federal government debt burden against a GDP estimate of $29 trillion. That gives a debt-to-GDP ratio of about 15%. And if you weren't aware, this is the highest level since the end of World War II. If one goes to New York, go watch a giant game or something like that and you go to the national debt clock that national. In New York, that debt clock is approaching $750,000 per U.S. family. It is substantial. This ratio has climbed steadily since the pandemic in 2020, where the federal government debt was just $20 trillion and GDP was $21 trillion. So for reference, since the pandemic, the federal government debt has risen by 90%, whereas GDP has climbed 38%. Obviously, to keep the economy growing, the U.S. government is now running near $2 trillion deficit. That's nearly 7% of GDP, while paying over $1 trillion per year in interest alone just to service that outstanding debt. And these are facts. These are not opinions. So you've heard much smarter people than myself such as Elon Musk, Paul Tudor Jones, Ray Dalio, say that unless hard actions are taken and behavior has changed in the U.S. is headed for some significant headwinds in structural trouble. Coincidentally, that all the mentioned -- all those people that I mentioned before, perhaps with the exception of Musk are absolute raging gold bulls. In fact, Ray Dalio is advocating that all PM's positions, including his big fund position themselves with a 10% allocation of gold and gold equities, coupled with what we're seeing in a steady and sticky inflation environment from the large stimulus of money that central banks and the U.S. Fed. It has forced organizations to raise and keep interest rates high, driving up the cost of borrowing. The recent policy decision on obviously, the U.S. reciprocal tariffs, I believe are just going to magnify the situation. The big beautiful bill is inflationary. That, and you layer on the fact that Central Bank still want to diversify away from the U.S. dollar in the face of dollar weaponization, you have a scenario for which Chinese consumers are still very concerned about their economy, particularly in real estate and the safety of their banking system. In my opinion, the U.S. Fed will have to take a far more accommodative monetary position as the U.S. economy starts to slow down. We will see what Fed Chair Powell does this December, but you layer that on to all the geopolitical unrest and the trend of reversing globalization. All this, in our opinion, leads to a very, very constructive gold tape. Last thing I'd say is for those that are not aware, Gold actually reached an incredible milestone just a few weeks ago, in that it has now overtaken the euro as the second largest reserve asset after the U.S. dollar. So the right portion of the slide here, and you'll see it in your deck, speaks to -- we just basically put a collection of core thematics at OR since our last Investor Day. We intend to address the big portion of these today. On the left-hand side are the group of our sell-side analysts, most of which are here today or their associates are here today. So thank you for attending. We do want to acknowledge their effort and expertise. These publishing analysts obviously are conduits for which their respective sales forces, and we have some sales folks here today. So again, thank you for coming to advocate both for the royalty and streaming sector, but also for OR Royalties. As you can see, the average target price from these men and women is over $61, which would imply a 36% to 37% gain from where we opened this morning. Lastly, I want to acknowledge these analysts who have been with the company for some time, specifically Kerry, Kosmos and Shane, who all initiated coverage when it was called the Cisco Go Royalties at the time, had one and only the Malartic royalty. So I'm not going to take too much more time here because I'm going to let my colleagues come and present. But hang on Real quick. We do have 4 differentiating factors or what we call differentiators at OR royalties versus our peers. What you'll hear from my colleagues and partners is we do have the best jurisdictional exposure. In fact, 80% of our NAV and cash flow has come from Canada, Australia and the U.S. We also do have the best growth profile. We've got a 40% growth offer base today. And all that growth is actually bought and paid for. So there's no contingent capital associated with a very solid integrity of growth over the next 5 years. As Fred will tell you as well, we have the best cash margins. And you're going to learn a lot more about Canadian Malartic today because, as I said, I've been on stage when some of the larger cap royalty and streaming companies when they've been asked the question about what the best gold royalty is out there. They unabashedly and always come back to the Canadian Malartic complex and asset. So with that, that was just a quick summary of our business. I'm going to hand it over to Heather and she's going to talk about the sustainability considerations.

Thanks, Jason. It's so nice to see so many familiar faces out here today, and hello to everyone joining us live. We're catching the replay. For those I haven't met yet, I'm Heather Taylor, and I'm responsible for all things sustainability and communications here at OR. Before I do dive in, I do want to spend a moment to say thank you to grant for coordinating and hosting us today. So thanks, Grant. Over the next few minutes, I'd like to share how we think about sustainability how we integrate environmental, social and governance considerations into our investment decisions and how that framework helps us manage risk across our portfolio and partnerships. Sustainability is embedded in our business model. We don't operate mines, as you know, but we take our responsibility seriously as an investor and partner in the mining industry. We are proud to say that as of November 2025, we continue to maintain leading roles with the ESG rating agencies. To call out one in particular, we're rated prime by ISS ESG with a corporate rating of C plus the highest in our peer group. It's not the kind of plus you'd worry about in school. In ISS terms, it represents top performance. And sustainability isn't just about our portfolio. It's also about our people. In 2025, we were rated -- sorry, 1 then. In 2025, we were certified as a great place to work for the second year in a row with 100% of our employees who took the survey saying that OR royalties is indeed a great place to work, a recognition that speaks to the culture we've built and the values we put into practice every day. Our ESG strategy is anchored in 5 key pillars that align with many of the United Nations sustainable development goals, due diligence, ensuring our investments adhere to responsible mining standards, climate action, conducting business in a way that protects the environment and where possible, helping our mining partners achieve their climate-related goals, social contributions, investing in the communities where we and our mining partners operate health and safety, promoting well-being across our teams and networks and diversity, equity and inclusion, ensuring we embrace diverse perspectives, backgrounds and experiences to ensure a workplace where everyone feels empowered to contribute their best. Now let's talk about how this plays out in practice. Every new investment goes through an ESG due diligence process. More than 50 targeted questions covering environmental, social and governance factors are embedded in our ESG due diligence tool, which we formalized in 2023. We apply this on a customized basis, adding in the leading questions were needed. Our internal team leads the process and when needed, we bring in external experts to evaluate specialized risks or opportunities. I'd like to say that our due diligence is like a marriage. You want to know everything before you commit not after. Our relationships with our mining partners don't stop with IDO. We continuously monitor our portfolio to ensure our mining partners maintain strong ESG commitments throughout the life of the investment. And this just isn't about values. It's also about financial discipline. In 2024 alone, we rejected over $350 million in potential deals, primarily because they didn't meet our ESG standards. It's not always the easy choice but we believe it's the right one for the long-term value and risk management of our business. Finally, sustainability is also about impact. The positive difference we can make beyond the balance sheet. We focus our community investments on 3 key areas: education, social and community and the environment. Since launching our community investment program in 2021, we've contributed close to $1 million to local and partner initiatives. In 2024 alone, that number was $361,000, over a 50% increase from the year before. We also introduced an employee donation matching program which has been a great success. It amplifies charitable giving and build a strong culture of engagement. On top of financial contributions, many of our employees also volunteer their time with organizations like the Canadian Mineral Industry Education Foundation, helping inspire the next generation of mining professionals. In summary, I was only given 5 minutes. Sustainability helps drive how we evaluate opportunities, how we manage risk and how we give back. At the end of the day, it is part of how we make a better call on what to back who to work with and what risks to walk away from. With that, I'll pass it over to Brendan to do a double click on Mantos.

Thanks, Heather. Yes. So I'm going to be talking to you about Mantos Blancos today. It's about 12 slides. But before we get going, I'll just give you a bit of background on myself. So I work for OR International and based in Bermuda. I'm a mining engineer with about 30 years experience, spread over operations, tech services and projects. I've been with OR for about 2 years, and Jason and I worked together at -- well, actually, I worked for Jason at Goldcorp a few years ago. So Mantos Blancos. We really like Mantos Blancos, it's a fantastic asset. We wish we had more of these types of assets in our portfolio. It's owned and operated. For those of you who don't know, it's owned and operated by Capstone copper. It's located in Northern Chile, and it's been in production for over 60 years, which really speaks to the quality of the asset. It produces a copper and silver concentrate, and we stream 100% of the silver at a 8% transmit price. Last year, it did about 10,000 GEOs for us, which is gold equivalent ounces. And then this year, it's forecast, we think, around about just a bit over 12,000 DAs. So there's a lot on this slide, but I just want to point out a couple of key points. I'll be talking to you about elements that as it relates to my expertise. And so that is the story of Mantos over the last few years, again, those of you that aren't familiar with the asset, is one of challenges associated with the ramp-up from a 12,000 ton a day sulfide plant to today operating at 20,000 tons a day. So we'll go into some of those challenges that they had over the last 3 or 4 years. The last 12 months has really been about optimizations and steady-state production, so we can dive into that. And then towards the end of the presentation, we'll be looking at the recently -- or the message expansion or Phase 2 expansion, which is taking the project to 27,000 tons a day. So where are we? We're in Northern Chile. We talked about Tier 1 jurisdictions and all the rest of it, but this is perhaps -- if we wonder to choose where to put a mine, this is probably right at the top there. And so why is that? So again, Northern Chile -- well, Chile in general is a great place to mine. Northern Chile is really is a fantastic place. It's located about 50k outside of the -- mine is located about 50k outside of Anfa Gastar. And again, for those who aren't for me with Anfa Gastar. It's a town of around about 300,000 or 400,000 people, and it's really set up for mining. So a lot of equipment suppliers and consultants and things of that nature. So most of the workforce, of which there's about 2,500 people are based in Anfagasta, good services like sealed roads, grid power. And importantly, they get their water from Antofagasta as well, which is on their industrial water. So low elevation and no immediate, what you call townships around the mine itself. Again, it just green lights across the board. So again, long history, and it really speaks to the quality of the asset. It's been in production in one way, shape or form since 1960, 196 1. I won't go into a lot of those details, but it -- today, it's operating at that 20,000 ton a day or about 7.3 million tons per annum, and it produces a copper and silver concentrate. We first got involved when we acquired the Orion portfolio in 2017. And subsequent to that, we then contributed to the construction financing in 2019. As I mentioned, Capstone acquired the project in 2021, and we'll come back to that. So this is a snapshot of our -- the silver stream itself. One of our peers once said that not all streams are created equal. And so why is that? And a lot of it is on this page. So I would point to, one, we have security on assets. So if anything ever happened, in terms of a credit event, we would get seniority with respect to this asset, right? So that's really important. And that's often a point that's missed when talking about the streaming business. You can see a steady increase in production there. So again, tracking to that just over 12,000 GEOs for this year. And we have a big AOI, which is an area of interest, which is where the stream covers most of the exploration ground that Capstone have. I'll also point to the fact that there is a step down here. So after we received 19.3 million ounces of silver, it steps down to 40%. As of end of the quarter, I think with 7.1 million ounces have been delivered. So we've got another 10 years or thereabouts before that stick kicks in. Okay. So I put this slide in to demonstrate one of the weaknesses of the streaming -- well, often one of the weaknesses of streams is are you aligned with the operator? And so what does that mean? It can mean a bunch of different things, but I'll just point out a couple of key features. So the first one is, does the stream over encumber the asset? So what does that mean? So if the stream is so large, in fact, that it makes the underlying asset uneconomic, well, then kind of everyone loses, right? So this stream, although we stream 100% of the silver, it only represents about 5% of the gross revenues. And on a high-margin asset like Mantos, that is inconsequential or at least insignificant. And so from that respect, we're not misaligned. The other 2 relate to the 2 graphs. So a lot of data there, but the relationship between copper and silver. So are they correlated? Because we want them to be correlated so that we're not misaligned with the operator. So the first one on the left is the grades that are actually being fed into the plant. And the one on the right is the metallurgical recoveries going through the plant of copper and silver. You see the lines of best fit there and the correlation is really strong at almost 1:1. And so that means we're aligned, and that's really good, right? So you want to see that in a stream. Okay. So again, the story about Mantos, I'll just touch on the last few years because it speaks again to the perseverance of both Capstone and the quality of the asset. So Capstone acquired the asset in 2021. Previously, it was owned by a private equity group. They carried out an expansion from 12,000 to 20,000 ton a day. And some of those -- the expansion elements were of questionable quality. So when Capstone took over, they -- to their credit, and I really want to give them a plug, they persevered with this asset and fault founded and Fault found engineered and then executed a turnaround story. It was kind of a 3-year process and all the rest of it, but they eventually reached steady state about this time last year. We can perhaps go into Q&A on what they -- what those measures were in terms of how they rectified it. But it was -- a lot of it was back end of the plant. So this is when they're dealing with the tailings. So thickeners, transfer pumps, things of that nature. So then more recently, the last 12 months or thereabouts, have been pursuing an array of optimizations at site. And that's been impressive, and I should plug Capstone again that I've been around and these guys were -- I was really impressed how they were able to pursue multiple opportunities at the same time. So by themselves, like 2%, 4%, 6%, maybe not much. But when you add them all together, it becomes material. And I was really impressed how they were able to prioritize ones that showed more promise. So the one thing that we do have troubles with at Mantos is the variability, and you saw that a couple of slides ago. So we have -- silver is actually quite variable. We, both copper and silver have high variability. Silver is actually probably double the variability compared to copper. And that makes a challenge in terms of trying to forecast what happens from period to period, right? So by in itself, it's not a problem. It's just that sometimes the boss comes into your office and says, right, what happened this month. So you can see that there's been times when there's been exceptionally high grade over 12 grams a ton. And then other times when we're 4 or 5, right? So how do we manage that, right? So what -- given that the project has been operating at steady state for the last 12 months, this has really become more apparent, and you can actually see through previously when there was problems on top of problems, it was really hard to see, but it's become more obvious now. We've been putting out some inconsistencies to the operator and Capstone were good enough to at least hear us and they've recently -- well, they remodeled the silver resource and have been monitoring that, and it's performing far better than it was, say, 12 months ago. So that's great. We have other elements within the stream where we have a 2-month lag between when it's produced and when we get paid. And so in a budget period, it's not the be all and end all, but it does help smooth the message. Fundamentally, we do take our own cut at -- or make our own estimate of what's going to happen. So when Capstone do provide us their estimates and forecasts and budgets, we layer on what we think is going to happen as well. And sometimes that puts on more conservatism. Okay. So 20,000 tons a day, this is the throughput through the processing facility. It's pretty obvious. I'll just point to the dotted line that 20,000 ton a day, this is on quarters as well. And you can see over the last 4 or 5 quarters, they've managed to become way more consistent. It's -- they've actually operated this plant up to 28,000 tons a day. And they've done that probably almost certainly to debottleneck and/or find out where the choke points are in anticipation of Phase 2 expansion. Okay. It's an important asset for us. We were at site this time last year, and we try and go every 12 to 18 months. I'll probably end up going down there later this year or early next year. We speak to the operator once a quarter. We get monthly reports when we get budgets and forecasts and reconciliations and things of that nature. We've got a good relationship with the operator. They've really been -- they're fantastic to work with. So what do we look for when we go to site and/or when we're looking at disclosure, whether it be private or otherwise? Well, anything to validate what we've been told previously and what's coming down the pipe is it different from last time is are our interest being looked after? Are we aligned? Is there an opportunity to collaborate anywhere? These things are constantly monitoring the situation. It is an open pit or a series of open pits, and that's significant insofar as it's low technical risk, right? So when you've got multiple open pits, if you've got a problem in one pit, you can source from the other. And again, it just speaks to the quality of the project. a big equipment as well, I should say, right? So it's bulk moving bulk tons, low strip ratio, things of that nature. Okay. So we're coming towards the end of the presentation here, and a colleague will come up and talk about some exploration, but this is the immediate near term. We have received the first cut of 2026 budget, and it's similar to 2025. They have not and we have not baked in some of those optimizations that I touched on before. So we do get another cut at this later on this year and next year before we have to sit on our guidance. So there might be some opportunities for -- to increase that maybe 5% plus or minus. I'll just skip over some plant optimizations and stuff and leave that to Q&A. And I'll just look at -- talk to Phase 2 expansion. So Phase 2 expansion, Capstone have come out and said that they're doing a PFS, preliminary feasibility study of Phase 2, taking it to 27,000 tons a day, and that should be out the first half of next year and a technical report will follow that. If everything goes according to plan, we see first production maybe late 2028, say, early 2029. And I will point out that it's an expansion. So not a greenfield build or anything like that. And given that they've already operated at 28,000 tons a day for periods this year, it's -- the build is likely kind of less than 12 months or thereabouts. So not huge amounts of risk. I think that's it. Guy, do you want to come up and talk to...

It's a great introduction to Mantos. Thanks for that, Brendan. So I'm Guy Desharnais. I'm the VP of Project Evaluations with OR Royalties. My background is geology, resource estimation, exploration, and I'm kind of the gatekeeper of new investments in the company, but also because I've been around now for 8 years, I have a little bit more history with this deposit and the other assets that we picked up through the Orion portfolio. So Part of the history here is that this used to be an underground mine. You can see some of the old underground workings here. So there are cores of this very high-grade material available. And the key mining areas is basically covered by here, and there's a few other pits off the slide here. And when you have this embarrassment of good, high-grade, easy-to-mine material, it kind of sucks in all the activity. So the previous operator put out a very long life of mine. And in the meantime, there hasn't been a lot of impetus to really accelerate exploration and get into it. So this image is from Capstone and sort of capture some of the key areas where they're intending on exploring. So this is the first time we're really seeing them with their intentions of exercising -- getting the drills going and adding to areas adjacent to the existing pits. Some of this is oxide material. So they do actually have an oxide circuit as well where they do heap leaching and SXEW. But we're more excited about where the expansions are going to be in here. And regionally as well, we have the key mining area here. And you can actually see on this LiDAR image, you have this -- you can see the topography very clearly here, and you sort of lose it here. This is because there's some overburden. So even the thinnest amount of cover really slows down your exploration and your capability of seeing through there. So they're actually showing they're going to start looking at some of that material under cover and then the regional claims to the south here as well is going to see some attention. So I think it's early days. There has been some work in terms of soil sampling and geophysics that was done previously, but the drill bit hasn't really been active. So we're keen to see how this evolves now going forward. So with that, I'm going to pass it over to Grant, who's going to introduce the video for Dalgaranga.

Yes. Thanks. I'll be super brief. I'm Grant Monting, VP of Capital Markets. You'll probably hear me say that in the video again, too. But in lieu of a partner presentation because we couldn't necessarily make the time zones work, I prerecorded a video last week with our partner, Ramelius Resources on Dalgaranga, which, as Jason mentioned, should be the newest producing asset in our portfolio shortly. Just if you're in the room, there should be Ramelius presentations on all the tables for you to follow along because Darren, our partner in the presentation will be referring to some slides. And for those who are on the webcast, there is -- if you're on the webcast in the section underneath our presentation, there should be a link to the same Ramelius presentation, so you can follow along. One item of note, at one point when Darren says go to Slide 23, he actually meant 27. We only did one take of this video. So anyways. Here we go. Good day, everybody. Thanks for joining us today for -- or Royalty's Analyst and Investor Day 2025. By way of introduction, my name is Grant Moenting, and I'm joined today by Darren Millman, Chief Financial Officer of Ramelius Resources. This video is being recorded on Friday, November 7, Melbourne time. And I'm very excited because we are here today to talk about what will very likely be the next producing and/or cash flowing asset in OR Royalty's portfolio, and that's the Dalgaranga high-grade gold project located in Western Australia. As many of you may know already, OR Royalties owns a 1.44% gross revenue royalty, which was acquired from a third-party Tembo on September 30, 2024. Before we get started with Darren and by way of background, on July 31 of this year, Ramelius Resources fully closed its acquisition of Spartan Resources. And then just 2 weeks ago, our new operating partner provided its detailed plans on how Ramelius expects Dalgaranga to fit into its impressive gold production growth plans over the next year, 5 years and beyond. Everyone here today in person should have a small hard copy deck of Ramelius' most recent corporate presentation, and those online should see a downloadable version. The idea being that if Darren refers to any specific slides in this deck during his answers, you can follow along with them. In the interest of time, I'd first like to thank Darren for his time today, and now we'll jump straight into some Q&A. Hey, Darren, I was hoping that first, maybe you could talk about your company's recent press releases regarding Ramelius' new 5-year growth plans and specifically on your Mt Magnet, Dalgaranga integration, perhaps making specific reference on your company's creative decision to centralize all the processing at your pre-existing Mt Magnet hub and also how Dalgaranga and its high-end, high-grade never-never deposit fits in as a core component to Ramelius' path forward starting in calendar 2026 and beyond.

Sure, Grant, and good morning or good evening, everyone. It's a pleasure to be here and thank the team for allowing us to speak a few words on our most important asset actually in our portfolio as we go forward. Probably firstly, for those in the room, refer to Slide 6. What Slide 6 does here, it basically summarizes our 5-year outlook. And we've got 2 key assets, one being the Mt Magnet asset in which Dalgaranga forms part of and the second being in the gold is Rebecca Row. So what we've done here is we look to put out over the next 5 years, both our production and also our all-in sustaining costs. Just to keep mindful that the all-in sustaining cost is in Australian dollars as opposed to U.S. dollars. And what we've also tried to do here is to just highlight how we compare with our peer group. As you can see on Slide 6, we have a growing production profile. Basically, we're looking to become a 500,000 ounce producer with Dalgaranga being key to that. But what could also flag here is that we're about $500 an ounce less than any of our peer groups, which was noted in the footnote. For us, we can do this by enabling -- we want to be able to be very low cost and maintain a good cost overview. We're a hub-and-spoke company in which basically extracts ore sources within a region and then put it to our most central mills. And at the moment, Mt Magnet is what Dalgaranga will be forming part of. For us, as you can see in that slide, we'll be currently proxy 200 million -- 200 ounce producer for the next 2 years and then rising every year. If you look at the blue represented, that's Mt Magnet in which Dalgaranga forms part of. And basically, that's the engine room in which we will be growing to us hitting proxy 350,000 ounces from Mt Magnet alone. For those who have got the deck in front of them, I'd just point you to Slide 7. And we've got the 2 assets in the portfolio, one is being operating, which is Mt Magnet and the second being Rebecca Road. What we're trying to do here is just flag sort of what the sequencing will be over the next several years because at the moment, Mt Magnet is an existing operation. And what we're looking to do is to take this plant from 2 million ton per annum up to 5 million ton per annum, and I'll get into that shortly. But I guess for the benefit of those on the call or in the room, historically, we were looking to develop the Rebecca Row project in FY '27. We've actually pushed that back to FY '28 to purely focus on the Mt Magnet plant in which Dalgaranga will be processed. So we've pushed it back 12 months. We want to technically focus on delivering Mt Magnet, and we're comfortable to move that back 1 year for Rebecca Row purely to ensure we deliver on time and on budget the project that Dalgaranga forms part of -- probably the next slide that makes sense to speak to probably be Slide 12 of the deck. And that just gives you the overview specifically on Mt Magnet. And as you can see here in the orange, the contribution coming through for Dalgaranga is very, very key for us to get that growth profile. At the moment, you'll see sort of minimal coming in, in FY '26, but will contribute significantly year-on-year. And I'll be putting forward the Mt Magnet operation will become a Tier 1 asset in Australia, obviously, Tier 1 jurisdiction and with a very, very low cost profile because of the high-grade ore that Dalgaranga contributes. So for those that are on the call again, Slide 13 just gives you that flavor on where and how quickly this project ramps up. So as you can see on the slide, we've got sort of 0.2 and then 0.6 and then 1.1 ramping up year-on-year. If it was -- the previous owner, Spartan, they would be putting forward the average run rate could be between 1.2 million, 1.3 million ton processing per annum, and they're probably putting forward up to 9 grams per ton in the context of grade. We've been able to deliver year-on-year both on production and cost guidance as a company. We're the only ASX producer that is both consecutively hit cost guidance and production. That is sort of fact. And this is something that we pride ourselves on. So what we're putting out in the context of volume and grade, we can put a hand in our heart and know we're going to deliver that, and there's potentially some upside when you look at that. So for me, it's an achievable plan. and there's potentially some upside operationally, and I'm sure we'll get into exploration as well.

And Darren, did you want to touch on some of the metallurgical test work you've done and maybe just an overview of the plant maybe in a little bit more detail. I think that's Slides 14 and 15 in the deck.

Sure, Grant. As Grant said, we spent a lot of time making sure we got this right. And we studied -- we historically, Spartan did a lot of test work. As you can see on Slide 14, there was elements of Ramelius and Spartan, the previous owners of the Dalgaranga asset. And over time, this is basically a 3- to 4-month program. So we acquired or we announced the transaction with Spartan in March. We then put out -- we closed on July. And then basically, this test work run us all the way up until our release last week. What the test work basically tells us is our existing plant at Mt Magnet, we're grinding to 175 micron. And if we're going to do that, the recoveries will be approximately 80%. If we grind the ore down to 53%, we get approximately 93% recoveries. What we're also looking at in this process was how much retention time is required. And basically, what the results have told us is, okay, well, if you actually grind it to 53 micron, then you can actually get that 93 versus some other test work was indicating, well, you might need 24 or 48 hours retention time to get these higher recoveries. So we spent a lot of time to understand the test work. And then from that, we've then decided to develop the appropriate plant requirements to go forward. One thing that you would have seen we're doing this ramp-up in FY '26, FY '27, we will be recovering at these lower levels because we want to -- it's not a huge amount of tons that we'll be processing, but we want to ensure by come -- early FY '28 that we've got these higher recoveries and the plant is in place. So FY '26, FY '27, we'll be grinding at 175. And this is all lab work. So historically, when we've done lab work and then the actual results, we have gotten better recoveries. Obviously, we're hopeful that we can move more tons earlier and then the grades will be above the 80 that we've got in our test work. So time will tell, but we've got some upside, we feel in that. And then if you look at Slide 15, this actual plan, and we went from 8 different options as we went through the process, and we landed with option 8, and it's a little unusual. So on the left-hand side, you'll see Circuit 1, and that's the existing magnet circuit running at 2 million tons per annum. And because of the additional grind that the Dalgaranga ore material needs, we'll have to be running at 53, which then reduces the tonnage. And what our operational guys are saying, well, Mt Magnet itself is actually built better to be processing the Dalgaranga material than you generally think building a separate plant for Dalgaranga ore alone would be the right solution. But everything our sort of metallurgical test guys on the ground and the third parties have actually suggested it's kind of a flip. So the ore from Dalgaranga should be going to the Mt Magnet plant and the new magnet or the new plant being built at Mt Magnet should have the old ore we'll call it at Mt Magnet. So -- it was quite a great solution in our view. And through that process, we can save $100 million in capital savings in doing that because we're also utilizing existing Dalgaranga equipment that enables us to do this. So we think it's a really good solution, smart solution, and it enables us to process the Dalguranga ore quicker, which means we can get the access to the higher recoveries quicker, which is obviously important from an NPV and things of that nature perspective.

Of course, of course. No, that's great, Darren. Thanks very much. Super insightful. Just moving on here, maybe you can touch briefly on Ramelius' view on any potential upside at Dalgaranga that could result from further work on understanding both the Giles underground as well as the potential never, never open pit projects. I know you provided a few scoping study level details in your recent releases. But perhaps maybe you can expand a bit on how and when you think these might also ideally slot into your plans.

Sure, Grant. So on Slide 23, it probably best speaks to the ore body that is Dalgaranga and probably could highlight sort of that PFS that we did release was just on the Never and Pepper to the north side of the Dalgaranga system. So we declared the resource or the reserve, sorry, and we're able to put that out there a couple of weeks ago. And that was just purely on Never and Pepper. And obviously, you can see there very thick ore body. So we call it we're going down the neck for the first few years. And then in FY '30, we'll be actually to the heart of the ore body. And I think that's important just for people to be aware of. That's when the grade really ticks up looking back at that sort of production profile, it's probably just be aware of that. We've only drilled down full of a kilometer. It just becomes not economic to continue to drill. So we feel there's a lot of potential still at depth at never-never which is on the north side. The other potential -- and we're drilling 75,000 meters this year alone on the Dalgaranga system as a whole. There's some infill, which is never as we're looking to mine that. But the real potential upside for us, we see is on the south side. So we're kind of referring that as the Gilbey's underground, which is underneath the existing open pit. We've actually built up a decline that's going sort of to the left. So your turn left, basically, you're hitting the never-never underground and you turn right and then there's the potential to become the Dolby's underground. We've done a scoping study on the never open pit up the top. That's going to form part of our mine plan. That's at a scoping study level. And then we've done a preliminary assessment just at the 4 pillars area. And that's kind of we call it a starter underground. This year, as I said, we'll be spending or drilling 75,000 meters, approximately under AUD 20 million on that -- probably that south side. So that's where we see, I guess, the biggest potential in our portfolio in the context of volume of ounces. For those that have looked at the deck a bit closer, we've got Penny and Q and Galaxy, but for potentially fighting new ounces is actually Dalgaranga to the south side. The Dalgaranga ore body is approximately somewhere between -- what it is from a reserve perspective, 9 from a resource perspective. you see on the page there, there's a pretty good drill results. So 6.3 meters at 6 -- so there's some pretty good -- our gut is when you dilute more on the south side, you won't be getting the same grades as we saw it never, never and Peppa but you're still be getting some pretty good grades. If we ballpark ideally, we're probably more in the 3 to 5-gram sort of space, but you've got volume, and that's what we're trying to build up. So probably come September next year when we released our reserves and resources update, that's when you'll be finding out more a lot of infill drilling to validate do we have a real mine there? And then subsequent to that, we'll do more drilling. So that's probably when we'll know if this could become another underground mine. And then on Slide 28 is the kind of the corridor. So bottom left-hand side there, that's where Pepper never is. And then there's further potential opportunities, golden wings patient Wharf Beefeater Bombas the previous 1 was fan of Jin. So hence some of these names. For pipes, for example, is actually in strange. So a bit of a tribute for you. But that's sort of more longer term. We're focusing on what we know today, where the resources are, where the high grade shoots have seen and that in the longer term, what we'll be going after as well. So yes, so I think there's a lot more to come. We're focusing this year, obviously, delivering the mine on time, on budget. We'll be in commercial production early FY '27. And -- but then this is a longer-term play, I think, for us from an exploration perspective.

No, that's -- I know that's great and really exciting. I mean you touched on the regional stuff at the end. And without looking to far in the future. I mean you guys acquired Spartan Resources. Obviously, there's a mine already there and potentially more as you just outlined. But is there maybe an internal belief amongst your exploration team that perhaps what's been discovered to date and as defined by Spartan and yourselves, is only just the beginning and that potentially, there could be other never nevers and peppers out there along the sort of regional corridor.

Yes. So the they call it the Bigiti breaks, and that's sort of on the geologists and sort of at times I guess, or retenant accountant. But there's the really high intrusive sort of breaks that they referred to, and that's how Simon Lawson. He followed the magnet structure that I understood them about Magnet structures, took that learnings applied it to Dalgaranga and then Papa zone area, that was the sort of really post together breaks. So you need to be really undo it from a geological modeling perspective on where to drill. So it will take time, obviously, hopeful to find more high-grade these sort of shoots. But -- and historically, it was just this open pit and they hadn't discovered this underground. So what was defined as we know today, in the reserves and resources that was really only done in a 3- or 4-year period, which is obviously a very short period of time. So our view, there's a lot more potential here. We paid $2.5 billion for the pleasure of owning the asset. We've already done an NPV at 4,500 a year at 3.4%. So we view it's all upside. I'm sure you guys will be happy to find more ounces as well. But for us, it's more -- let's just let's just get the mine right. Let's find out what's underneath the existing open pit to Gilbey's pit. And then from there, we'll more get into the regional. But yes, there's nothing that wouldn't suggest further upside. It just really get operational and focus first. Second would be the underground at Gilbey's. And then thirdly is corridor that I just spoke to now. So there's definitely potential. It's -- and we'll continue to drill at this level, if not more, I guess for the benefit of those on the call that Dalgaranga. We went from a $50 million budget in FY '25 to up to $100 million, and that was kind of a metro poll from the Spartan guys, they were able to find a lot of ounces in a short period of time. So -- if we've got the targets, we've got the balance sheet to do what we need to do. And -- it's only going to grow with our portfolio as you saw that production profile. So yes, it's -- we've got the money to do if the drill targets are there, then we'll drill it out. We've gone from 5 drill rigs to 12 drill rigs in a matter of sort of under 12 months. So if we need to go higher than we will, we have been able to get access to them. So ever it doesn't seem to be issue.

That's great. Well, I think that's all the time we have. Darren, we only -- we had just 15 to 20 minutes to get through this. But I want to thank you so much for your time today. I think we're just as excited as maybe you are to see your team go forward with the sort of sensible execution with respect to your outline plans. And with that said and done, I think we'll conclude this section of today's agenda. I'm now happy to pass things off to my colleague, Dr. Geeta Harney to run through some of our key growth assets.

Thanks, Virtual Grant. Do you have the other clicker? This one is deficient in lasers. That's really great. I love how Grant pestered the CFO to give us some exploration upside. This is a very recent acquisition on our part. We -- there was no mine plan for us to build off of, and hats off to Brendan, Matt and myself for figuring out more or less what this asset could do in terms of mining productivity, grade recovery, pretty much everything that we were hoping for was shown in there. The only thing we got wrong is the price of gold. So now it's all upside from here. This slide deck was constructed basically to walk you through what process we'll be going through in February next year to try to construct our 5-year outlook. We have -- you've seen this slide many, many times. It gives a good overview of how we think about our future growth. And I'll be walking through some of the names in this column. But we've seen pretty significant increases in the likelihood that some of these assets that were on the outside looking in last year in February or this year in February, and they've advanced and derisked and gain -- we are gaining confidence that they're going to be giving -- making the graduation and being inside that 2030 outlook. And that outlook that we currently have in 2029, one of the anchors of that is the Island Gold asset, Alamos Gold. So this is a long section looking at the asset. They are including the Magino pit now within that view, which is super useful. And we've created sort of an overlay of the royalty percentage over that asset. So in gray are things that have been mined out. In orange are the reserves. And one thing that's really important in the flow of the inventory that's going to go through the mill is -- they've mostly been mining within this 1.38% NSR area. And as the life of mine gets more and more mature, they're progressively going more into the 3% areas and the 2% area. So the royalty percentage will naturally increase with time. We're also going to benefit from the shaft, which is going to provide them a better -- more production or the production rate will increase with time. This is one of the bottlenecks of the asset. Also the higher grade at the base of the mine here. So a lot of the amazing drill intersections that they were providing over the last few years were from this section over here. So we're going to benefit in 3 ways. As the life of mine grows, we are going to have higher tonnage throughput Alamos has been -- had put out in July an updated study, but that was mostly a derisking. So the reserves -- a lot of the inventory was in inferred resources, and it's graduated to a lot more reserves. And also an update on Magino. But the study that we were looking forward to seeing is the expansion studies, which was supposed to be end of this year, but it's pushed back to early next year. So we'll be really keen to see what happens there, but there's quite a good potential that we're going to see above and beyond what they have, what they've shown previously. So one of the aspects that they're pointing to is that the shaft that they're building and is near the base of the shaft now has excess capacity to bring up waste and ore to surface. So they're going to try to increase that. We're hopeful as well that they're going to start building in these hanging wall and footwall zones that they've been talking about. Those should be ramp accessible and could bring up the amount of ounces in any given year. CSA is another cornerstone of ours. Recently, they've been -- Mac Copper got purchased by Harmony Gold. In the background here is the overlay. We -- we're semi-hiding it because this was MA's plan. And MA was basically pointing to around 40,000 tons of copper per year last year towards 50,000 and beyond. And the important pieces of that growth were going to be the ventilation system, which is ongoing, which would unlock the base of the mine where the very high-grade material is and also 2 separate mining sectors in the upper part of the mine. So there's some copper lenses up there, but also zinc lenses. They refer to these as the Marine mine. And we're pretty -- we'll have to wait until next -- early next year. Harmony has promised us an updated life of mine and a plan going forward. But we expect part of Harmony's thinking about the value of this asset is within those aspects. Mantos, Brendan did a great job of summarizing. We're keen to see what the expansion study will show in terms of tonnage and timing. So we've talked about the assets that are producing now. In February of this year, we had outlined 3 of these 4 assets as being going into production between now and 2029. We've added Dalgaranga in our most recent releases. But windfall is one asset that we've been waiting a long time to graduate and get into the production. There's been a lot of good work done by Gold Fields. They're in the floor below us in Montreal. We see lots of new faces, lots of activity buzzing around. And they have a lot of catalysts coming up. So IBA permitting and an updated feasibility in early next year. We have a good update now on Dalgaranga, the CFO gave us some extra upside beyond what we see, which is great. Marimacca is an asset that because of the copper price increasing and the simplicity of the construction and the permitting on here has gained a lot of credibility. This is now -- the market cap of the company is above $1 billion very comfortably. So here, we're expecting the permitting and FID within the next few months. And Hermosa South 32 is spending $750 million this year to advance the project. That's on schedule. Everything points to things going well at that asset. So these are our key things that were fairly easy for us to add to our 5-year outlook at the beginning of the year. Now we're going to look at some of the assets that were on the bubble or that were under consideration that we couldn't do. And primarily those that have really advanced in terms of derisking and the likelihood that we will be including them in our updated 5-year outlook. So we see a lot of names here. Jason showed a forward-looking warning statement. This is the most forward-looking portion of our talk. We'll be naming -- giving you descriptions of some of these assets. It doesn't mean that we will be including them. It means that we will be considering them when we do the exercise of the updated outlook in February of next year. Osisko Development, advancing Caribou, Sean has done an amazing job of derisking and raising the money to advance the project. So several hundred million dollars were raised in equity over the past year. And we have the construction here of the Appian facility, which is a nice piece of very innovative piece of financing, which is going to backstop some of the future things. So here, we're going to be looking forward to an official FID. But in the meantime, they're spending a lot of money advancing the project. So we have now access to the Lohe Zone through ramp. They've opened up a corridor here and are drilling off 13 kilometers of drilling. So this is something in the next few months, we hope to see the FID and a construction decision. Eagle last year, we completely wrote it off on the financial side, and we removed it from our outlook. There was a very unfortunate event here, as most of you know. But since this time last year, what we've seen is that there's a lot of hope. So PwC is running a process to find a new operator. There was a lot of interest in that first round of -- first phase of evaluation. Now that second phase is ongoing. Several operators are looking at this asset. The deadline for bids currently earmarked for December 31, 2025. So will we have sufficient certainty come February to decide what we do with this asset? That's going to be a tough one because it will still be in the process of figuring out the nuts and bolts. But this is a very chunky asset for us. It's around 8,000 GEOs per year. And when it turns back on, it will be very meaningful for us. Spring Valley was an investment we made in 2021. USD 26 million were invested. Over the past -- it took a while for information to come out. This is within Waterton Gold or Solidus Resources. They put out a feasibility earlier this year, outlining an ounce profile that may have surprised some people. Project is in Nevada. It's fully permitted. And now with the recent announcement from Wheaton, it's fully financed. The -- our royalty is quite -- it's covering everything that's known and chunky over the thickest, most important parts. I just want to point out that we have a 500,000 ounce holiday basically on this -- we have this core claim, this 3.5% royalty area. So as part of the Wheaton investment in this asset, we got a little bit more information. So the Executive Chairman here, they've announced that early works are ongoing and first gold might be in the first half of 2028. So this is -- last year, this time, this was not really on our radar. We're really hard to nail down when this thing could start. And now we're pretty confident about the starting date of that. Amulsar is a project in Armenia. We've had it as part of the Orion portfolio. We had some issues several years back and the group at OR International have worked really hard to preserve our exposure to that project and also increase or improve in several ways our stream that's on this. So now this asset is within United Gold, which is the same team that built the Allied Gold portfolio. The asset is now owned partially by the government, which helps ensure that everybody is aligned with the continued construction of the project. And now they're advancing construction activities, trying to close buildings down to make sure that they can continue over the winter. And just on this asset as well, our -- the stream deliveries to OR International are going to be accrued during the period that the $150 million debt facility is paid down. Once that's paid down that, that accrued amount gets paid out over a 5-year period. South Railroad is a very recent investment on our part. Orla is going through a new and updated feasibility study now. We expect that quite shortly. a record of decision by 2027 and construction potentially end of '27 on an asset, which is -- we have 100% silver stream. It's in Nevada, should be fairly straightforward. We're looking forward to seeing what that feasibility study reveals because the -- obviously, the recovery of gold and silver will increase as they go to a finer crush. We don't know what -- how much they will invest in terms of the CapEx and OpEx to achieve that. But given the high prices of gold and silver, I think it will make sense for them to try to pull out as much of the metal as possible. Upper Beaver, I think Agnico surprised many of us by how quickly they constructed and how big the infrastructure is on surface here. So this is meant to be an advanced exploration activity. But you can see from the size of the shaft, like this is built to be a mine as soon as possible. In terms of the start date of this, it's hard to nail down because the permits are not in hand. And I think Agnico is being a little bit careful in terms of messaging of when this can start actual production. So in the press release where they outlined the project of 210,000 ounces of gold per year, they pointed to 2031-ish. But on the website, they're showing the goal of 29 to 30. So this is an example where come February, we're going to look at this. We don't have any insider information, but we'll debate internally on what do we do with this. So it's going to be on that cusp, very reputable operator whose intention is to go as fast as possible. But given that it's on this bubble of timing, there's a good chance that we won't be including this asset. Cascabel is one of our most important development assets. It's located in Ecuador. The new management team there has been a breath of fresh air, advancing a new project execution plan hand-in-hand with G Mining Services. What we -- the new time line for first ore is quite early. They're drilling now, and there's a good press release this morning on a very good drill results on that Tandayama pit. But it depends what the final configuration of the mine is because there's different aspects. The real important high GEO profile is related to that Alpala block model or the block cave, which may be done partially within a sublevel cave. So depending on how you configure the project, it's going to change. But what we know as a base case as of 2030, we'll be getting payments of $4 million, which will have a chance of being accounted as GEOs at that time. So our cornerstone asset, obviously, is Malartic. We spent a lot of time thinking about this asset. Matt and I will be visiting the site this week and trying to capture as much forward-looking statements from there on that visit to try to see what -- how they're thinking about the asset, timing of the expansions. and the shaft. So we've accumulated a lot of knowledge, collected a lot of bread crumbs. So we try to, in this part of the presentation, sort of put those breadcrumbs together and lead you to a potential conclusion. So this is a long section that we've seen several times. I just want to point out that the resources and reserves on this is a very big number, but it's not done growing. So reserves are 7.5 million ounces. M&I is 2.5 million ounces and the inferred is an additional 10 million ounces. I'll encourage you to go to the back of the deck, you'll see the details of those numbers. But what's not included in any of those resources are the Eclipse zone, which looks very similar in terms of thickness and grade as East Gouldie, nothing with respect to the Titan zone, the Keel zone or the internal zones. So those are all upside beyond what's even on paper for this asset. On this -- on the long section, you see the only parts that are referred to in the resources and reserves are what's in orange, which are the reserves and in blue, which are the resources. So all of the rest of this pale green of Eastgollie is not in the table at all. And year-over-year, this green blog keeps growing. So this is the edge of the green blob at the end of -- or in February 2024. That's growing, and we're also seeing intersections beyond that version. So this inventory, which is gigantic, will continue to grow. This is just a point in time. In 5 years, it will look very different. This is the current life of mine that Agnico is showing. A few things to note. 2027, they backfill it with more than 100,000 ounces year-over-year with material that they think now that they're going to be able to mine from underground and fill the mill. The other thing to note is that already in '26 and '27, the mill is not completely full. So any additional mineralization or inventory that they can send there is a win because you have a fixed cost, which is that processing cost and anything that you can bring in there is a win. This is a long section of the mine plan of East Gouldie. One thing that was noted in the Q3 call, they've identified and they keep growing and hitting very good holes in this upper East, East Gouldie section. And they made this comment of including a potential second mining area in the upper mine. So we don't know what that means now. We have no context. Potentially, it's accessed via the ramp. or the upper loading pocket. But potentially, this is a parallel system or a parallel mine production that could fill in some of these tons that are latent in that mill. So we've drawn some cartoon lines on here. It's very easy for us to do that just to illustrate what it is. We understand mining is hard and for us to show you what this could look like is a little bit too easy to be real. But we know now that the second shaft is a very likely scenario, and I'll explain to you why we think that. But I just wanted to leave the traces of how Agnico has been talking about this second shaft over time. So this is as early as Q1 2023, we had the first mention. Obviously, Q1 2025, we have a potential for that second shaft. And now we're not talking about second shaft or the current shaft that they're sinking is no longer called the shaft or the project we're working on. They're calling it shaft #1 because clearly, to me, the shaft #2 is on its way and hopefully, another one after that. And now the language of Agnico is the vision to 1 million ounces annual production at Malartic. They're being quite explicit now, giving ounce production and mill throughput numbers associated with that. So it's becoming more and more concrete as time goes on as Agnico continues to talk about this opportunity. On this slide, interestingly, they show the entire belt of claims that they have. I've added some other points of interest that are more interesting for us and for them. So we have a small royalty on Acasa West. AK is going in production imminently. It was meant to go into production this quarter. So Akasaba West is actually being trucked to Goldex and then the concentrate then is going to LaRonde. AK is planned to go all the way to LaRonde. So they're not -- when they're talking about district scale and like we have synergies, I think they are thinking about the world being a lot smaller than we think. I'll just note that these 2 deposits, Upper Canada and Oki McBeam, there's several million ounces of resources there. They're right next to the rail. That rail is plotted on their map and runs right next to Malartic. So there's a scenario where they think like let's do hub and spoke, but like go really big on this. And we're looking forward to seeing the 2027 study, which potentially could include some of these potential synergies that we're seeing. So this is a slide of us trying to figure out what is the potential timing of the shaft # 2. And we like to play a game at OR called what would Amar do. And when we're building this, we're trying to give you a time line. If you're standing in end of 2026 and you have an opportunity ahead of you, what are the different aspects in how Agnico has in terms of their resources, their capital allocation priorities, the human resources they have available and the opportunities to fill the mill with material could be. So the purple line here, and I think this is surprising for a lot of people is the amount of time to put in this ramp or the main decline to the bottom of the mine. It's an extended long lead item to get to the full production of the mine. And that decision was actually that decline was taken a few quarters before the actual FID. So if it makes sense and provides them with flexibility in terms of the schedule, they will spend some money to keep -- to get things going. And then shaft #1, there's a period here. It's split into 3. So surface infrastructure, shaft sinking and the underground infrastructure. So everything outside this yellow box are things that there's enough information on the public disclosure of Agnico to trace, including the commissioning of that mid-pocket. Some of the -- this might be surprising how long it could take here to do the other loading pockets. There's quite a bit of uncertainty, and it's sitting inside our yellow box here. But part of the reason is they need to -- or ideally, they'll have access through the decline as well to get the equipment in there and also provide secondary egress for safety. Again, the amount of tons available to fill the mill, that wedge starts growing already at the end of 2026. And then in the yellow here is basically our conceptual view of how this build-out could occur. We're expecting a very important report for us and for Agnico about how they're going to look at the Canadian Malartic overall milling infrastructure and the mining scenario at the beginning of 2027. So Q1 2027, we anchor that piece of surface infrastructure at that same time. But again, if it makes sense for them to spend a little bit ahead of time and give them the flexibility to go earlier, then there's potential that leaks out of and ahead of that official decision. So all that to say, they are pointing to early 2030s for that shaft #2. But depending on how Amar feels, what would Amar do when he's standing in 2026, there is potential to compress this. There's one thing also is the shaft thinking that this amount of time is 3.5 years of shaft #1, and we have it shorter here. And one reason for that is because they'll have access at the very bottom, there are methods to accelerate that from the bottom up where you have access on multiple levels. and you have basically -- you don't -- you remove the need to scoop at the base of a blind shaft sinking. There is latent capacity even if you take all the pieces that they've outlined that they're going to feed the mill. So this is basically in the PEA or the 2021 study, shaft #2, which is required, Marban and Wasamac, there's still 10,000 to 15,000 tons per day that could go through that mill. So what would Amar do? Well, we think there's a very good chance that Agnico takes a leap and commits to a third shaft or shaft #3. And this was initially brought up in Q1 2024. Again, the CFO brought it up in May of this year and Amar at the Denver conference pretty explicitly eventually, we might even build a third shaft. So following the pattern of how the second shaft was slowly building confidence of the language was changing, we think there's a pretty good chance that we're seeing a similar scenario here where they're preparing the markets. I think they need to be careful, especially in the past few years where making sure that the schedule of capital deployment is in a controlled manner that they're not putting out like big-ticket items willy-nilly. So I think they're building towards this scenario, and I think it makes a lot of sense economically. It's just we're going to wait to see very keenly to see what the result of this is. Thank you. I'll pass it on to Fred Ruel, our CFO.

Good afternoon. Thank you for being with us today, whether in person or joining through the webcast. For those that I haven't had the chance to meet, my name is Frederic Ruel, Vice President, Finance and CFO of our royalties since 2020. But I've been with the company since 2015 and prior to that with the Osisko group during the building of the Kenze Malaric mine. It's a pleasure for me today to provide you with a quick finance update with an emphasis on our balance sheet position. I'll also give you a quick update on income taxes at the end of my presentation. For those who have been following us for the last few years, you've seen the work that we've done to simplify our business. The simplification is clearly reflected in our financial statements, which are now a lot easier to read and understand than a few years ago. On that same note, you've probably noticed in our most recent filings that since August, Osisko Development is no longer considered an associate from an accounting standpoint. Therefore, you won't see these noncash shares of loss of associates in our results from 2026 onwards. Certainly, a key point in our Q3 results for the first time in the last 10 years, we are debt-free. From 2017 through 2022, we had debt outstanding on average of CAD 400 million, which was mostly related to the acquisition of the Orion portfolio. During that time, questions were raised regarding our investment capacity and strengthening our balance sheet became a high management priority. In the last 2, 2.5 years, as a result of our disciplined approach to capital management, the sale of our Osisko mining block and of course, the positive metal price environment, we have repaid debt quarter after quarter despite continuing to deploy capital to accretive acquisitions and while continuing to increase steadily our dividend. And as of the end of last quarter, our credit facility was fully repaid. At the end of Q3, we had $57 million in cash. Since then, all Royalties International has received payment for the Mac Copper shares of $49 million, and we have continued to generate free cash flows. As of today, we have approximately $120 million in cash, an undrawn credit facility of $650 million plus an accordion of $200 million. As a reminder, in May of this year, we increased our credit facility by more than 50% and extended its maturity date to 2029. We also own marketable securities with a market value of approximately $150 million. All of this gives us incredible flexibility in terms of investment capacity, the strongest we've seen since the company was founded in 2014. The next slide illustrates the strength of our current balance sheet. Our available liquidities allow us to compete on most transactions without needing to raise capital. But despite this additional financial flexibility, we'll continue our disciplined approach to capital deployment. On the next slide, we show a brief overview of our dividend history. The dividend was implemented at the end of 2014. At that time, the quarterly dividend was CAD 0.03 per share, which would represent approximately USD 0.21, USD 0.022 per share today using current -- the current exchange rate. Between 2014 and today, the dividend per share more than doubled, increasing by 150% for an average compounded increase of 9%. The last increase was in Q2 of this year, where we raised our dividend by 20%. Annually, over $40 million is distributed in dividend to our shareholders and over $269 million have been distributed since 2014. A dividend reinvestment plan was also implemented in 2015. And historically, a 3% discount has been offered to shareholders participating in the plan. I'd like to take this opportunity to remind nonregistered beneficial shareholders that following our name change and assignment of a new CUSIP number last May, you may have to submit a new enrollment form in order to continue participating in the DRIP. You can consult our latest dividend press release, our website or contact us if you have any questions about this. Lastly, at the bottom right of the slide, we have a graph that shows that we have the capacity to continue to increase our dividend as the current cost of the dividend represents only about 20% of our pertained cash flows and around 17% to 18% for the first 9 months of 2025 compared to an average of 25% for the last 10 years. The dividend level is reviewed quarterly by the Board and is determined in a function of considerations, including our financial position, market conditions and anticipated cash requirements. On the next slide, we present a brief summary of our current NCIB program, which was implemented in 2016 and has been renewed annually since then. The current program allows the company to buy back up to 5% of its outstanding shares. Since the program was put in place and when taking into consideration the Orion share buyback in 2019, a total of 20.5 million shares have been acquired for cancellation for a total acquisition price of CAD 279 million or $13.60 per share. This represents more than 10% of our current shares outstanding. Today, to acquire these shares, we would have to pay over CAD 900 million. The NCIB may be used when we believe that the underlying value of the company is not reflected in the market price. On another note, and we've telegraphed this in the last quarters now, we will be cash taxable in Canada for the first time in fiscal year 2025. mostly as a result of increased revenues and the depletion of our Canadian tax pools over the years. For 2025, based on the first 9 months of the year and our forecast for Q4, we estimate our cash -- our taxes payable in Canada to range between $13 million and $15 million, all of that subject to our actual result in Q4, of course. As we've mentioned before, these taxes will be paid in the first quarter of 2026. Then starting in 2026, we'll make monthly tax installments. We also have certain assets taxable in the U.S., Mexico and next year in Australia and withholding taxes on certain revenues earned outside of Canada, but these are currently not significant. The effective tax rate for the first 9 months of the year was 19% when excluding foreign exchange impacts, the share of loss of associates and other noncash gains and losses. In other words, operating income plus interest revenues minus finance costs. The current effective tax rate for the first 9 months of 2025 is also where we expect to remain over the next few years. A reasonable range would probably be 18% to 21%. Of course, subject to metal prices, our mix of geographical revenues and our future investments, which may be tax deductible in Canada. Please do not hesitate to reach out if we can assist you modeling income taxes in your respective financial models. Overall, I would summarize our current financial situation as being the strongest we've seen since the creation of the company more than 10 years ago, providing our corporate development teams with a greater flexibility to acquire assets that will benefit our shareholders. I'll be available after the presentation if you have any questions, of course. I will now hand the floor over to my colleagues, Iain and Mike, for a corporate development update. Thank you.

Thanks, Fred. So Mike and I are just going to -- are just going to walk through the corporate development section. This is the last -- the last piece of the presentation today. Grant should be quite happy. We'll have some time for Q&A after this. To start off, we wanted to provide you some insight in terms of our investment process and philosophy. The first thing I want to say is that OR is focused on building a portfolio for the long term, so not just adding growth for growth's sakes, but to really focus on a disciplined approach to value creation. Precious metals investors are looking to preserve value and purchasing power. So it's our job to build the portfolio in an accretive way that allows our shareholders that safety while also providing great optionality to the assets we've invested in. Royalties are long-duration assets. So it's critical to understand the risks to those investments. And as Jason said, we are risk managers for our shareholders. So we take a disciplined approach to long-term value creation. So how does this work in practice? We invest based on 3 core pillars, and each of these are assessed on quality, considering the context under which we invest and with a mindset of sustainability. In a perfect world, we would have 10 out of 10 across the board on project quality, jurisdiction, counterparty and investment structure, but it's just not possible. So this is where the context comes in. We need to review these core pillars in concert with one another. basically, we can use one to bolster another where, for example, a good -- a well-structured deal with a very capable management team in a jurisdiction that is not necessarily Tier 1 would be an investable asset for us. So since our last Investor Day 24 months ago, we've made a number of investments. These are a selection of those. If you look at all these together, it's about -- over our 2025 geos, it would be about a 20% a 20% increase. So not an insubstantial number of investments, and they each fit our core strategies one way or another. So for Cascabel, it was all about asset quality. It had a syndicated structure, which alleviated some of the risks of investing in Ecuador and deferred payments are deployed, which also derisks the investment. Gibraltar is a long-life Tier 1 asset with a very capable operator in Taseko. And this is the third such amendment we've made in that asset. And they've been operating there consistently, sometimes as low as $2 a pound copper. Dalgaranga is one of the best, as we heard today, emerging gold projects globally and one of the best mining jurisdictions in Western Australia. Ramelius saw value there and bought Spartan Resources for over AUD 2 billion. Another one I'd highlight on this page is Sable. It's a smaller investment for us, but it's one that highlights our technical team's capabilities, where we saw Freeport making the Aurora discovery in Northern BC. And just across the boundary there, TDG had the Ore West project, and we made the royalty investment on that asset. All these investments were made below $3,200 an ounce gold and 90% of the dollars deployed here were under $3,000 an ounce. So here's our due diligence process or our investment process. Brendan calls this the machine. We're always trying to improve our DD process and methodology. We start with origination where we really focus on the assets and the teams that can drive value and have a proven track record of doing so and understanding our counterparties' needs to tailor investments to the -- to a solution there. As for the DD, there are projects that are just quick nose. They will be discarded quickly and efficiently, whereas others take a jump to later stages where we do full DD. Guy will run a block model, Matt will run mine planning scenarios and Brendan builds the cost base from the bottom up. So really to understand the opportunity. And it's this in-house context that allows us to invest dollars on a relative basis. We've got fixed dollar resources. So it's really that relative basis and the context that allows us to deploy efficiently. We don't outsource our investment conclusions. We do not employ outsource DD only on a select basis where we need to bring in skill sets that we don't have in-house. And you'll also see feedback loops here. We do regular look-back analysis. Some people like to say that it's best to learn from your mistakes. We like to learn from our mistakes, but also other people's mistakes as well. So we'll consistently look back, see what's worked, see what's not worked in the past and fill those gaps in our process. The other feedback loop is with our partners. We need to consistently be supportive, understanding where we can add value and support our investee partners along the way. So our team reviews a lot of opportunities. We've been busier than ever over the last 24 months, busier than any time in OR's history, in fact, and the quality and size of opportunities have been better than we've ever seen. So we've been very, very busy, but our deep portfolio of optionality and growth allows us to be very disciplined in how we review new opportunities. So we have a stage gate approach. So over the last 24 months, we've reviewed over 300 investment opportunities. Typically, we do a first pass. The bulk of these assets that are rejected are rejected on asset quality, jurisdiction and commodity. And then as they move through the diligence hopper, they get to the end where we're then rejecting things -- opportunities on things like ESG criteria, structure and pricing. So all in all, we basically have a 2% to 5% completion rate on the transactions that we review. This reflects our very diligent and disciplined approach to execution. I'll call Mike up.

Good afternoon, everyone. For those of you who don't know me, my name is Michael Spencer. I'm the President of OR International. I've been with the company for 8 years now, and I spent my first half of my career before OR Investment Banking and mining in Toronto. My background is finance, so I'll try to keep it within those swim lanes. You heard Jason and Ian both talk about long-term value, building long-term value. And this is something that's at the heart of our strategy and drives the decisions that we make every single day. When we think about portfolio construction, and that's how we do think, we think about our new investments not only in a 5-year time line, but also a 5-, 10-, 15-, 20-, 40-year time line. And when we think about risks and we think about optionality, we think in all of those time periods. It's the only way we have to go about it. And it may surprise you that not every company in our industry does that. You will see that too many think about things that are right in front of their face the next 5 years. And they have the belief that scale is the driver to a premium valuation, add more ounces, add more ounces and we'll get a better valuation. But when you think that way, when you're looking at your due diligence process when you're managing your contracts, negotiating those contracts, when you're thinking 5 years ahead, you're not thinking 40 years ahead. Those are 2 very different ways in which you think about due diligence and contract negotiation. So as I said, we not only think in 5 years, we think 40 years out. Our strong belief is that over the long term, long term, premium multiples are driven by quality, not by scale, okay? You can have scale, but without the quality, you're not going to get that same premium multiple. Now when we talk about quality, it's important to differentiate between the 2 buckets. One is the project lens, which is on the left side, and we'll go to that in a second. And then the second is the investment structure lens, and that is on the right side, we'll go through that as well. In terms of the project, our approach is relatively straightforward, and I expect a lot of people in the mining industry would say the same thing. We focus on low-cost, long-life assets with scale that attracts top-tier operators. That's probably no different than a lot of our peers would say as well. We do take an approach not only looking at production, that is our priority, and we'll get through that in a second in terms of our pipeline. But we'll also look for longer-term optionality assets that we think are really good options. Spring Valley, Guy talked about it. We bought that in 2021, $26 million for an effective 2.5% royalty. We just saw Wheaton purchase will be an effective kind of 4.7% to 6.4% royalty for $670 million. So that's the difference. I think that's where we have the opportunity to get our guys out there ahead of time, Guy, Brendan, Matt and find those opportunities to create deep value. On the contract side, I would say this is where a lot of the key differences are within the industry, quite frankly. And I'm going to steal a phrase from some of our larger peers. If you listen to Wheaton, if you listen to Franco, they'll say it over and over, small structural differences can have major long-term value impacts. And that's a real key point to make right here is the structural differences are within the contracts. And I don't envy your situation. From a Street's perspective, it's very, very difficult to understand those differences within those contracts. A lot of the time, you don't have access to them or you have access to redacted contracts. So what I would say is one of the things that we can leave you with is, and maybe you take away from this is think about what questions you want to ask and find those key questions to ask to try to find those differences because when we think about a project. When we think about the contract, sorry, only 5% of that contract actually has to deal with what is being delivered to us and what are we paying for those deliveries, 5% of that contract. There's another 95% of that contract, and we know that lawyers, they love to hear themselves talk, they love to bill a lot of money. But there's another 95% of that contract that has a lot to do with the underlying value of our asset, our contract. And that's where we talk about building long-term value. And those small structural differences in those contracts can make a world of difference. I will go through a couple of things here, and I'm just going to kind of list them off, and I'm happy to have a discussion afterwards if anyone wants to have a larger discussion. But with things like structure -- sorry, security and guarantees. This is one of those items that's become very topical. People are starting to understand that there are differences within security and guarantees. Obviously, a secured interest is much better than unsecured interest. But within a secured interest, there's multiple shades of gray. You can be first or second ranking. If you are senior, how much sub debt can there be, what structural controls and restrictions are around those subordinated lenders. If you are subordinated, how extensive is the collateral package that supports that security? Are you going to be able to get through that senior debt before you start getting paid, how big can that senior claim grow to? And we've seen this become a lot more important lately as hedge books have blown up because some of those secured hedges are senior. And so -- and those are unlimited amounts that can become above you as a subordinated creditor. So that's a really big important aspect to it. Another thing is, and we don't like it -- it's part of the job, almost an evil part of the job, but what is the bankruptcy process in the host country. It's important because how much control do we have in bankruptcy and how much control do the courts have. Over a 40-year time frame, as we look at this, there's going to be upsides in commodity cycles. There's going to be difference in geopolitical situation. There could be just an issue with the underlying asset. We didn't look -- when we looked at Eagle, it's a great asset and unfortunately, some operator error happened. But you have to be able to manage that -- those cycles and how is that going to work out? And so understanding the bankruptcy process, if you unfortunately get to that point is important. The last thing I would say is, do you have guarantees and what security has been provided behind those guarantees? That's important. A parent guarantee is great, but it's only worth something if there's other assets that are binding that collateral. Like if there's nothing at that top parent other than a single asset developer, there's no difference from having a holdco guarantee from a senior parent guarantee. So that's security and guarantees, a couple more of the things that we look at, reporting requirements and audit rights. You'll see with Brendan, we spend a lot of time looking -- monitoring our assets, talking to our operators. We really do have great relationships with our operators, but we want to be able to get that information to have those conversations. And that led to with Capstone through Brendan's correspondence with them, them going back and looking at the silver, how they model the silver and potentially getting a new resource model for that silver, which is great. Operational covenants. How much leeway does the operator have to change the business or the project plan from what was underwritten in that stream. We don't want to be the operators, and I'm not suggesting we do, but you have to give them swim lanes because you don't want them necessarily walking away and saying, "Hey, okay, we're not going to build the mine this way anymore. We're going to build it half the scale after you guys just invested on a different mine case. Or what consent rights do we have? That's another option. Commingling rights. People talk about this now and again, but how stringent are those restrictions? How much compensation do we get paid? This is important because that can drive us to where the operator is going to be focusing their long-term investment. Are they going to be investing within your AOI? Are they going to be investing outside the AOI? That goes to commingling rights. Transfer rights. This is a really big one. Over time, over 40 years, that asset is going to change hands. There's very few assets in this world that stay within the same operator forever. So who can own this asset in the future? That's a big one. We want top-tier operators. We want to make sure that those operators are operating to the best industry standards. And if we don't like that operator that comes in, what is our recourse to that asset. A couple of other ones I'll list off really quickly. distribution rights and debt limits, when can the operator take money out. Payabilities and offtake contracts, our payabilities fixed? Are they floating? If they are floating, do we have any stay under the offtake contract? That's really important when it becomes a byproduct credit because your alignment is not with the operator. They're slightly different. Completion tests, reps and warranties, the list goes on and on and on. These contracts are very complex. We have teams of lawyers that look at these things constantly for us. That's why I say I don't envy the situation the Street is in, but if you can get the right questions into these streaming companies, you start to understand the value with which that contract can have -- some of these conditions in the contract can have to building long-term value. The next one I'll speak about here. I know a lot of people have questions about this. Certainly, it's one of the most topical on our conference calls is the pipeline. What is coming in the future. One thing I should have said off the hop here is at OR, we split our business into 2 distinct business units. There's myself, Brendan, who came up here was talking about Mantos and the team in Bermuda are OR International. Our strategy and our focus is on -- centered around streams, international streams, including new investments, portfolio management, metals trading. Iain, Guy and the rest of the team in Canada, they're focused on investments in Canada and international royalties. So that's how we split our business. Many of the key considerations I'll talk to you up here are similar across both business units, but I'll let Iain jump in here if he sees any subtle differences. On the left side, you'll see just reiterating what Fred had said, a reminder, we have about $1 billion in total liquidity available to deploy today in accretive transactions. I suspect if we don't deploy any more money, we will be across that $1 billion barrier by the end of this year. We haven't completed any big or flashy transactions in 2025, but I can assure you that our teams are extremely, extremely busy. We've been close on a few fronts. We've been down to the kind of eighth, ninth inning for another Blue Jays reference, Jason. But we really stuck to our investment criteria, stuck to our disciplined approach, and we actually walked away from a few transactions that we had in hand this year because they just didn't meet what we wanted. So it's very important to note that we are very busy, and we will continue to look at a lot of things. Iain showed you how many opportunities we've looked at over the last 12 months, and we'll kind of go through what our key considerations are here. The first item up here we have is expected returns. I'm going to actually do this one last because all these other things here that we talk about feed into what we think for expected returns or what guides our process to determine what kind of return we're looking for. Opportunity size, number one, we are seeing opportunities up to and including $1 billion. I think someone on the conference call said you could drive a truck through that. I agree. But there is a very widespread in terms of what opportunities are out there today. Jason has been extremely consistent that as a mid-tier, our strike zone is really around kind of that $50 million to $500 million mark. But we will go outside of that for good opportunities. One example of that, Iain walked through a couple of them, but one example I'll touch on here is South Railroad. That was a $13 million check. It was an opportunity that we saw very quickly. We had good insight on the project because Jason and Brendan had previous experience with it. And so we jumped on it even though it was kind of outside that main strike zone. The other side of the coin, if we go up to the upper end of that spectrum of $1 billion, we get very conscious about portfolio construction and how any new transaction fits into that portfolio. So for instance, I don't think you'll see us go out there and spend $1 billion on a new sportier jurisdiction in the world. We do like to stick to our bread and butter, maintain our disciplined approach. That said, we do $1 billion. If we saw a good opportunity in a good jurisdiction that we're comfortable with. We do have the ability to kind of spend some big dollars here. Opportunity mix should actually have been up here in between opportunity size and structure, really, at the moment, we're seeing opportunities centered around M&A financing and project financing. I would say that was the kind of the bigger tickets at the moment. We're seeing a little -- a couple of portfolios still trickling out. And Iain especially has been working on a few of those. And, to a lesser extent, some balance sheet refinancing, especially around some of those hedge blow-ups. We are seeing opportunities where people are trying to look for some refinancing there. But I would say, going forward, there will definitely be a slant at least as what we see today towards M&A financing and project financing. Structurally, outside of the contractual structuring that we talked about on the last slide, this structure here, what we really wanted to talk about was -- what are we looking at in terms of putting dollars out the door in what form. We have been pretty transparent in the past that we are looking at investing across the capital stack now. Our main focus will always be on streams and royalties, and that will not go away. But we are seeing opportunities to get near-term producing opportunities with really good contractual terms by providing some of those other forms of capital as well, specifically debt and equity. One thing I want to note here is in terms of structure as well. is that we're very cognizant of not over encumbering an asset. We've seen some very large streams completed in this industry that fundamentally changed that risk/reward profile of an asset over the long term. And again, our focus is building long term. So what we want to do is ensure that an operator has sufficient upside to continue to invest in that project going forward, whether it's exploration upside, expansion upside, et cetera. So that's something we take into consideration a lot when we're looking at structures here. commodities, we've been consistent in our approach. It's precious metal, pure-play precious metal royalty company. We have obviously looked at copper in the past. We have a stream on CSA. We will continue to do so in the right size and the right position. So that kind of copper angle, we will continue to look at. I won't close the door on every other commodity. There's always a right place, right time, right factor, but certainly, it's not our focus at all today, precious metals with a side of copper would be our focus here. Jurisdictional bend. I'm not going to harp on this one. Everyone knows we have the highest ratio of Tier 1 jurisdiction assets in our portfolio. We will continue to prioritize our dollars there. Development stage, priority A is to acquire near-term producing assets. like I said, but we will continue to look outside of that into the development stage where we can find good deep value. Again, Spring Valley is a great example of that. Types of counterparties, very simple. We want good trusted operators that have been there that have done that, especially when we're going into new jurisdictions that we don't know. We would definitely want to be going into a part into those jurisdictions with a partner that knows them very well. And then that all goes right back up to the top again to expected and required return, and we had a lot of questions about this. So when we think about our returns, the starting point is always risk-free rate and our weighted cost -- weighted average cost of capital. That's mainly informed, the WAC -- or WACC is mainly informed by the revolving credit facility. And then after that, what we do is we take a look at what type of margin or what type of spread we would want on top of that risk weight or that WACC. And that is very much determined by all those other things that we just talked about. There's no succinct answer to give you that this is the number for this, and this is a number for that. There are so many factors that fit into the solution. We need to take into account all of the risks that we just talked about. We also need to take into account all of the risks that we talked about previously with respect to contract structuring. So when you factor all those in together, we, generally, as a team, think about exactly what kind of spread we would need for all of the risks as those things add up. I should also note that -- first and foremost, people think about IRR, and I understand why, but we also look at more than just IRR. We will also look at payback time lines vis-a-vis reserves. So are you getting your payback within reserve life? MOIC or ROIC, however you think about it, roughly the same concept. And then also, how does that impact our per share metrics, PNAV, pecash flow, et cetera. So IRR is one piece of a larger puzzle when we think about expected returns and rates. With that, I think, Jason, am I passing it back to you for closing remarks. Q&A now.

We'll now proceed -- and please wait for the mic. We've got one over here. Just for the benefit of people on the webcast, Larry?

This is Larry from CIBC. I just have a few questions. I can start out with a more topical one this morning. Last Friday, there was permitting news in Mexico. So I was just wondering, you've talked a lot about upside in terms of long-term growth potential. How does that kind of impact OR's long-term guidance? Are there any positive impact over there?

Thank you. So obviously, the situation in Mexico is fluid and complex. As we've said through the presentation, our preferred go forward, like we've got some assets clearly in Mexico that I think everybody is aware of. We don't see any of those being any risk based on the news flow that we saw last week. As we talked about in terms of our future opportunities, I think Mike went through a very good criteria of actually how we start to price these instruments. Our preference and our main filter as we look at instruments is really around ensuring that our jurisdictional profile continues to be best-in-class with respect to our peers. So again, Australia, Canada and the U.S. would take paramount when we actually start looking through those screens. I'm going to ask some of the technical folks if they also wanted to answer the question specifically with Mexico and the news that came out last week.

Just waiting here, yes. Yes, it's case by case. I think Mike explained it quite well where it's multidimensional. So Mexico is not Canada, U.S. or Australia. So we take that into consideration. Mexico is actually a pretty big country with regional areas that have different risk levels. There's a lot to consider just beyond the permitting as also the risk on that permitting, things change when politicians change sometimes. So we look at it -- we do look at things in Mexico, but we rank them case by case.

Awesome. Sounds good. I just have a second part question. It's more around like more accounting base. I know we've talked about Cisco development today and how that would impact potentially long-term guidance. Earlier this quarter, there was a disclosure that the accounting for ODEF has changed. I'm wondering how does that impact the geo calculation? Would that be an upside? Or how should we look at the geo calculator there?

Great. Great question. Thank you, Larry. I'm going to ask Fred to him up and clarify anything that I do say. But in short, it makes no difference in terms of the geo calculation whatsoever. All we've done is we declassified our investment because we're obviously below the 20% threshold based on the Osisko Development financings. We sit at just around kind of 13% on a pro forma basis when all those financings are closed. And so we've reclassified or declassified as an investment in associate and reclassified it under other comprehensive income. So there will be no P&L effect go forward. But in terms of the geos that we're expecting to come out of Caribou and the other assets within a Cisco development, there is no change. Fred, do you want to add anything further?

Next, Derick?

Derick Ma, TD. When you talked about the business development, you talked about the Idera process, you talked about the feedback loop. What are some lessons that you've learned from the feedback over the past 12 to 18 months.

I'm going to hand it off to our corporate development team, Iain, Mike.

Look, the -- There are a lot of lessons that we learned. In terms of specific cases, I'm going to keep it a bit more general. But I think one of the lessons that we take home is -- and this isn't -- I'm not necessarily speaking about one of the lessons we learned in our process, but perhaps some other processes is that intercreditor principles are key. When you look at things going into insolvency or on the brink, Mike made the comment whereby there are different levels of subordination. And there are minutia in intercreditor principles that can really dictate what kind of cards you're playing with at the table when you're getting to that point. So if -- I'm being as specific as I can without giving you the case study, but that was one that we looked at that we took a lot of home from. I think Brendan might have others because he is the master of the look back.

Maybe -- What? Well, we do it regularly, and maybe I'll just talk to you about that. So we do it at least twice a year. And if we have something that is like a material miss or something big happens in the industry, we'll have a look at it. But we like to give it a bit of time so that when we do look back it's more meaningful and that some of the hot air has gone out of it. So -- but we look at how we did the due diligence in terms of like -- could we have done it better, do we predict it appropriately? And -- but then we also look at it at the other end in terms of deal structure and all the rest of it. So it's painful at times, right? And we try and keep each other honest and ask really hard questions of each other. It's -- but at least, I find it rewarding after us not during it, but afterwards, you feel better about it. Yes -- that's about it.

Maybe let me ask one is on -- so let me ask one more. You talked about portfolio construction multiple times and how you think about it as a portfolio. In terms of jurisdictions outside of Canada, U.S. and Australia, what else are Tier 1 or Tier 1 B jurisdictions that you're currently not invested in that you would like to be invested in?

So it's a great, great question. I'll start and then hand it over to Iain and Mike who really kind of run through the strategy. And so it's certainly evolving, Eric, there's no question. As I said, there are 3 jurisdictions or the ones that we primarily look at for assets. We do look obviously at other jurisdictions as well. There's a lot of South American jurisdictions that we might not have exposure -- a significant exposure to currently. And then it will already depend on the region within South America as well. But all that said, as Mike went through kind of the process of how we're pricing our instruments, that actually takes a big, big factor too. We do need to make a spread over our cost of capital. So yes, I would say that there are some jurisdictions certainly that have generational type assets, a lot of porphyries obviously in South America that we really like to get exposure in but we're not going to go out and put instruments at any cost. It's got to be a measured return as we've described, and there are lots of opportunities out there that our team is quite busy. I'll ask Iain to comment first.

Yes. Look, it's case by case, and there are instruments that you can integrate into the deal that alleviates some of the risks in the jurisdiction that may be a bit more risky like political risk insurance and things like corporate guarantees. And it also comes down to the counterpart of you're with. If there's a counterparty that has been in the jurisdiction for decades, or is coming out of a -- is building a team that has deep roots in the jurisdiction, and they've been proven to operate there. That gives 1 a lot of comfort in going into a jurisdiction with a group like that. So it's really comes back to the context in those 4 pillars. It's one of the premise, one of the criteria by which we judge is maybe it's not 10 out of 10 on one of those criteria, but it really comes with the context.

I think that's -- I was going to say the same thing about the teams. It's when you go into a jurisdiction that's not Tier 1. You want to be with the team that knows how to operate there. And as Jason said, even countrywide, you need to split that down to region-wide it's like very regional specific expertise because they are -- it does vary significantly ranging the region.

The one thing I'd add is royalties are a bit different because sometimes you're picking up royalty sometimes that are already created. A lot of royalties are third-party royalties. And there are some jurisdictions that are very good for royalties because they're treated as interest in land. And there are some that they're basically just treated as a piece of paper that can be wiped in an insolvency. So even differences between Chile and Peru, for example, and different states in the U.S., so we look at that very carefully and -- especially if we're picking up a third-party royalty, the jurisdiction plays a key role.

Ingrid Rico with Stifel. Thank you so much for the presentation. There was a lot of detail here. I just have maybe 2 questions, if I can. So one, on the assets under consideration for the sort of 5-year outlook, almost they're restarting the, I guess, remaining construction. But as we think about the stream and the stream terms, can we assume that there is no renegotiation on the stream and that you guys are going to get paid on how the stream has been structured already?

So really -- I'm going to hand that off to Mike because Mike spent probably the better part of the last 3 years of his life around [indiscernible] and the stream amendments I would say, holistically, though, before he talks about that. We do very -- we feel very comfortable, Ingrid, about the instrument that we have. And if you actually look at the modifications that we made, it has very little if not any impact on the NAV as you think about the geos that we'll earn from that stream go forward. But Mike, please?

Yes. Look, I think we, as part of getting the new debt in place and the new team in place, you'll see that there were amendments made to the stream at that time. And we're very comfortable that, that stream will be as is. That it's a really good asset. It's just in a jurisdiction which has had some troubles politically. The strip -- the ASIC at this point in time is probably USD 1,500. So it's a high-margin asset at these prices. And I would just point out that a couple of the amendments that we made that may not have come through is that there was a cap on it before, and there's no cap on it now. So there's a tail stream that got put on there. There also was a buyback on it, 50% buyback, and that's been removed as well. So those are kind of 2 big amendments that got made out of that stream. But as Jason said, we're comfortable with the stream as it is today, and we expect that once that $150 million is repaid, we'll start to collect [indiscernible] at it.

Okay. And then for Mantos Blancos, so the silver grade reserve that I see in the presentation is much lower than, I guess, what has been so far. So I guess just trying to understand a bit of the grade profile as ORCs it and maybe if you have a number that you can tell us on the -- what you expect on grade and recoveries going into 2026.

Go ahead, Brendan, please.

Yes. So we have received the first cut of the 2026 budget, and it's similar to what we're seeing today. So 6, 7 for the ones that got teenagers now. So that's it for 2026. And the other thing I'd point out to remind is that there's a new technical report coming out in the first half of next year, and then I would refer to that in terms of more long term and all the rest of it. Yes.

Yes. Thank you for your questions, Ingrid. Adrian, go ahead.

Yes. Just on some of those opportunities that you missed out on, obviously, you've got outbid on some of those opportunities. Can you just talk to me about the competitiveness that you see in the market? And then if you are, obviously, as positive as probably many in this room are on the gold price. Do you relax those more stringent return requirements at some point to execute on some of these transactions?

Great question. Again, it's quite topical, given where we are with respect to the commodity markets. So the short answer is no. We absolutely have to remain disciplined. Again, we obviously, are not paid to prognosticate where the gold price is going for the next 5, 10 years. The best information that we have is actually by folks like yourself and the strategies of the economists that work at your firms, that's a long-term consensus. So we absolutely mark ourselves against long-term consensus. In terms of gold, gold and silver price. What we do also do if it's a near-term asset is obviously there's a forward curve that we can price it off. So again, it's a bit of a hybrid -- but we will not sacrifice returns. You heard what the return threshold that Mike went through. We'll not sacrifice returns. We have seen a number of deals that's clearly in our mind, this is a bet-on commodity price. As I said, 3 years from now, either of these teams are going to look like absolute heroes because they got it right and/or if the commodity roll it might not be 3 years, it might be 5, 6 years, when thing people are looking and our accountants are looking at the instruments that they put in and there's potential write-downs happening, that's a position we definitely do not want to be in. We've also seen through the course of at least the last 6 months but maybe a little longer, some of the structural components, i.e., the security that they're certainly being a little bit more and in some cases, a lot more relaxed as to where we're comfortable. I think Mike did an excellent job presenting why we think and why we continue to believe it's not just -- again, it's very hard to quantify some of these qualitative aspects around their security package, but we always think worst-case scenario. If a country blows up or if a country goes Parshaped or if an asset doesn't have what was expected in terms of the technical report. What would happen in those scenarios, what would happen going through an insolvency process, what are our protections. And so we will not do anything naked. And that's cost us deals as well. So I think the short answer is, again, we're not going to compromise on either of those. And if we're sitting here 2, 3 years from now and we still haven't done significant deals. That's fine as well because unlike some of our other peers, we really -- as you saw with the growth profile, we don't really have anything to backfill. We've got an exceptionally good growth profile that, again, is set up for the company. And I would say if we're in the commodity environment, you're talking about, a lot of those options that we talked about that were potentially moving forward into 2026, given the studies, given the margins, those will be accelerating. So we've got this long term of optionality that, again, I believe our shareholders will definitely be rewarded from -- but excellent question.

I just go one step further and say that there were, in fact, 3 specific deals this year where we weren't a price on the deal. It was -- we were there was a structure that was put in place that there was a red line we drew, and we wouldn't walk over it. And in those instances, there's somebody willing to walk over that red line.

That's actually a great segue for some of the questions we have from the webcast. They're kind of asked the kind of very topical with what you just said, Iain. So kind of asked the same way. But one, would you walked away transactions, what you walked away from? What were the items that did not meet your criteria? And then asked another way, what top 3 items in your contract structure will you not compromise on?

I think the first one was already answered, so we won't go unsecured, especially make it in a jurisdiction where we don't have interest in land. We can consider corporate guarantees in the right circumstance with the right counterparty. And I'll let Mike answer the -- what was the second one?

Just the top 3 before you walk away from Copa the top contract structure acres...

I think some of it goes to the ones that I've already mentioned. So when we look out 40 years, what risks are there in 40 years that we need to mitigate. And I would say that security is a big one, and Iain just touched on that. I would say who's going to operate it is a big one, too. At the end of the day, there's a very big difference in quality of operators. And we want to make sure that a good quality operator that has the financial and technical ability to operate that asset is the one that owns it in the future. Then after that, I think it also comes back down to debt levels that kind of ties into security, but what kind of debt levels can be put on the asset and where do they rank with respect to the stream or the royalty? And we need to make sure that asset -- the debt that's being put on to that asset is increasing the value of it as well. So we want to make sure that all in all, whenever someone is sitting there with us, another secured creditor, they're adding to the value of that asset, adding to value of our stream. So I would say those are off the top of my head, to...

The other is on the inter creditor side, and we have what we call our sacred cows, and there's 2 of them. And one is on an enforcement event or under default, you're paid as operating expense, these insolvencies or workouts can last a long time. And if the royalty is stalled and do you understand still over that period and not getting paid, those cash flows are accruing, but you don't know where in the ultimate waterfall they'll flush out. And then the other one is -- it's called an attached sale provision, whereby if you're a subordinated creditor and you're a royalty holder or a streamholders, that asset is going to go through a process, and it's going to end up in the hands of a new canard and the senior debt needs to support your royalty or stream being sold in whole into the full extent of the obligations to that new counterparty.

Just a couple more. These are from Scotiabank, Tantan actually, Jason, silver streams, tiny hearing, there are some big ones out there to the tune of $1 billion, would OR royalties be looking to increase its silver exposure? And then separately, but also from Tanya, we said today that size doesn't necessarily mean better. Do we think our market cap is too small for generalist investors, why or why not? So would we add to our silver exposure? And are we big enough to be on the radar for dentist investors?

Thank you, Tanya, for those questions through the webcast. First question on silver. As I think we've articulated and we continue to be consistent, we are a precious metals vehicle. So we have no issue bringing more silver into the portfolio. Right now, as I mentioned in my remarks, at least from our third quarter, we're 30% silver. So we do have a significant amount of silver in our portfolio. He's -- you're absolutely right, Tanya. There are some big opportunities out there for us. You can think that we're trying to be competitive because it is incredibly competitive, as I mentioned, but along the same lines in terms of remaining disciplined and not overpaying and/or taking streams that, again, impair or don't provide us the appropriate security. In terms of our size, another really good question. Look, we obviously are a mid-tier from a Canadian dollar perspective. We're -- from a market cap, as I think everybody knows, slightly over $8 billion as of today. We've gone over $10 billion in terms of market cap and CAD dollars. I think it's incumbent on this team, myself, in particular, to start getting the message out there around this investment opportunity. As I said earlier, the royalty and streaming sector, if you did create an index, a synthetic index, it would have outperformed effectively the MAG 7, which is the barometer the benchmark for the generalists out there. And I encourage all the other CEOs and their investor relations teams in the royalty and streaming sector to obviously go out and tell the message because this isn't a short-term phenomenon. It's -- there are multiples in terms of our trailing EBITDA as best if you look across all industries. And so -- and rightly so, and the last thing that I mentioned is, clearly, there is a bit of a consolidation theme that's happening in our sector right now. Obviously, Royal Gold stepped in and acquired both Sandstorm and Horizon as I think everybody is aware. And you also have this new entrant called Tether that is looking to consolidate or roll out what we call the Tier 3s or the smaller cap royalty and streaming cost. So again, that's a really good question. Tanya, if you have any advice for us to be able to get in front of some of the generalists and/or the players that you see in Scotia is important. We're all years, and we're happy for you to take us marketing to see those folks.

And just a couple more. These are for Adrian Day. You just talked about it briefly, Jason, the theme of consolidation. Do you want to talk about that more generally, but also if there's any specific transactions that we looked at from a consolidation point of view, if we ever care to and how come these transactions didn't happen if we walked away from them.

Thanks, Adrian. So another really good question. So again, our team has been very consistent. Our company is open for business. Clearly, I think everybody has also hurt myself saying consolidation is required in both the royalty and streaming sector as well as a gold operating sector. And so whether we're the consolidator , which would be obviously our preference and we have to do smart M&A, we can't do M&A that dilutes again the per share metrics that we're all compensated on that would be the best situation. But we also could be in a scenario or situation where we could be consolidated. What we would say, and I know, Adrian, we've gone through this before, but certainly, our team is very acute and up to speed with respect to all the mid-tiers as well as the Tier 3s in terms of our view of value for them. So put another way, we have a file on all these companies, if there is a continued consolidation theme, we will look to be active. And as long as it does meet our metrics and be an accretive deal, you can think of that we'd be a player in the consolidation theme that we expect is going to happen over the next 12 to 24 months.

And then the last one from Adrian is would we do more syndicated deals with one party or potential multiple parties working alongside us?

Yes. Another great question, Adrian. So syndicated deals are -- they're very rare in the royalty and streaming sector. The one that we did in 2024 with Franco, again, it was a very unique set of circumstances. It's obviously in Ecuador, a jurisdiction that we don't consider Tier 1 and to spread and diversify some of the risks across with, again, a major player was important for us to do. We also -- I think people weren't aware, we also had a royalty as did Franco Nevada royalty and the Cascabel assets. So it's not something that we went in to without deep understanding and knowledge of that project. To answer the question, though, yes, we absolutely would be open to do more syndicated deals, syndicated deals. So however, I would suggest or in jurisdictions such as Ecuador or areas that we could structure around to ensure that we're protecting our shareholders. if you weren't aware, the Cascabel transaction was essentially through a series of staged contingent payments as things progress and the asset gets derisked. Certainly, we'd look at syndicating those type of deals. But again, the architect for that deal is sitting in this room here with Mike, Mike Spencer, maybe you want to comment on that.

I think, Jason hit all the high points there is that was a unique set of circumstances, where we both had an interest in it. We both were interested in investing further. And Ecuador for both of us, we wanted to spread that risk. So I think it was just a unique set of circumstances. But as Jason said, there could be other opportunities that come up, and we're certainly open for business to work with other people, if it makes sense.

Thanks, Mike. That's it for those questions on the webcast. So Jason, off to you for some concluding remarks.

Look, thank you, everybody, for your time. We've gone a little bit over time. So I'm just going to wrap up by, again, the 3 takeaways that I started with I'm hoping, over the course of the last 140 minutes or so, you've got a pretty good lens in terms of our asset quality. We do think we have peer-leading asset quality. In addition, now that you've got some exposure to our [indiscernible] here, our team our talent density. I couldn't be more pleased with. We've got exceptional people at OR royalties, and we'll continue to obviously look at opportunities and create value for our shareholders. And the last thing is just around optimism. Again, as I said, we're in an inflection point or royalties. We've got a very, very good growth trajectory as some of the assets that or more longer dated actually and the maturation of our portfolio as some of these assets mature, and the studies get done and the funding comes in. we're just incredibly at such a great sector, the royalty and streaming sector. We're incredibly optimistic and we hope that you as both shareholders, investors and analysts and folks that advocate and share our view and vision are also very optimistic. So thank you very much for your time. And the team here will -- for the people in the room, the team here will stick around if you did have any specific questions for us, certainly please do. We're all very approachable, as I said, one thing that we take really significant pride in is their access to the management team. So again, thank you very much for your time, and we look forward to doing this in another 2 years.