Or Royalties Inc. · TSX:OR

Or Royalties — Osisko Gold Royalties — Merger or Acquisition (June 2017)

43 slides from Or Royalties's merger presentation, June 2017

  1. Slide 1: Building a World Class Growth Royalty Company

    BUILDING A WORLD CLASS GROWTH ROYALTY COMPANY ORION TRANSACTION OVERVIEW June 2017

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements Certain statements contained in this presentation may be deemed "forward-looking statements“ within the meaning of applicable Canadian and U.S. securities laws. All statements in this presentation, other than statements of historical fact, that address future events, devel

  3. Slide 3: Osisko Group's History in the Mining Sector

    Osisko Group’s History in the Mining Sector EXPERIENCED STRONG STRONG HISTORY MANAGEMENT TECHNICAL OF VALUE TEAM TEAM CREATION SALE OF CANADIAN ACQUISITION OF MALARTIC AND SPIN- VIRGINIA BY OSISKO OUT OF OSISKO GOLD GOLD ROYALTIES ROYALTIES In C$ Billions CREATION OF ACCELERATOR 1ST SALE OF VIRGINIA

  4. Slide 4: Building a World Class Growth Royalty Company

    Building a World Class Growth Royalty Company • Significant portfolio of high quality royalties and streams on new Canadian • High quality, diversified portfolio of mines streams, royalties and offtakes • Robust cash flow • Significant cash flow with a strong • Highly attractive portfolio of world c

  5. Slide 5: Highlights of the Transaction

    Highlights of the Transaction  Combination of two high quality royalty portfolios • Osisko to acquire Orion's portfolio of 6 streams, 61 royalties and 7 offtakes for total consideration of C$1,125 million - C$675 million in cash and C$450 million in shares  Creation of a world class portfolio of p

  6. Slide 6: Adding Quality Cash Flowing Assets

    Adding Quality Cash Flowing Assets Cornerstone Assets in Top Jurisdictions Canadian Malartic (5% NSR): One of Canada's largest gold mines operated by well-regarded operators Éléonore (2-3.5% NSR): Long-life mine ramping-up production operated by a senior operator Renard (9.6% Diamond Stream): Québec

  7. Slide 7: Immediate Production, Significant Growth Pipeline & Future Optionality

    Immediate Production, Significant Growth Pipeline & Future Optionality Pro Forma GEOs (k oz) Optionality 2017-2023 CAGR: Including Brucejack: 16% • Marban NSR • Upper Beaver NSR Excluding Brucejack: 13% • Highland Copper NSR • Casino NSR 162 • Ollachea NSR • Yenipazar Offtake 21 • Spring Valley NSR

  8. Slide 8: Industry Leading Cash Flow Growth

    Industry Leading Cash Flow Growth Cash Flow Generated from Prod’n Assets (C$ M) 2 Optionality 2017-2023 CAGR: Including Brucejack: 13% • Marban NSR • Upper Beaver NSR Excluding Brucejack: 10% • Highland Copper NSR • Casino NSR $200 • Ollachea NSR • Yenipazar Offtake $25 • Spring Valley NSR $170 • Pa

  9. Slide 9: Tier 1 Jurisdictional Focus

    Tier 1 Jurisdictional Focus 102 4 3 1 Geographical CF Distribution 8 2018 2023 North America: 78% 76% 13 South America: 8% 13% Asia: 7% 7% Europe: 3% 3% Australia: 2% 1% Represents total royalty/streaming assets Africa: 2% 1% 9

  10. Slide 10: North American Gold Focused Portfolio

    North American Gold Focused Portfolio NPV by Stage NPV by Type Exploration 6% Offtake 5% Development 18% Stream 38% Construction / Ramp-Up Production Royalty 14% 62% 57% NPV By Geography 2017-20 Cash Flow by Metal Diamond Other 2% Other 12% 12% Chile 8% Silver 16% U.S. 7% Canada 73% Gold 70% Source:

  11. Slide 11: Best in Class Portfolio: Growth & Diversification

    Best in Class Portfolio: Growth & Diversification Consensus 2017-20 Cash Flow Growth (%) Asset Concentration (Top 3 as % of Total NPV) 53% 76% 56% 50% 46% 21% 12% 11% 33% (6%) Osisko 1 Franco- Wheaton Royal Osisko Osisko Wheaton Osisko Royal Franco- (PF) Nevada Precious Metals Gold (Current) (Curren

  12. Slide 12: Compelling Valuation and Upside

    Compelling Valuation and Upside Consensus P/NAV  Stable production from current Osisko 2.2x Average: 1.8x assets 1.6x 1.5x 1.1x  High growth added through acquisition  Diversification with maintained low Franco- Nevada Royal Gold Wheaton Precious Metals Osisko geopolitical risk EV / Operating NAV

  13. Slide 13: A World Class Royalty Company

    A World Class Royalty Company 5 CORNERSTONE ASSETS • Canadian Malartic - Canada (5% NSR) • Renard - Canada (9.6% diamond stream) • Éléonore - Canada (2-3.5% NSR) • Mantos - Chile (100% silver stream) PROVIDE CASH FLOW ANCHOR • Brucejack - Canada (4% gold/silver stream) CASH FLOW • Pro forma Osisko h

  14. Slide 14: Transaction Summary

    OSISKO GOLD ROYALTIES Transaction Summary 14

  15. Slide 15: Transaction Summary

    Transaction Summary TOTAL PURCHASE PRICE • C$1,125 million • C$675 million in cash CONSIDERATION • 30.9 million common shares of Osisko Gold Royalties (C$450 million) • Oskar Lewnowski of Orion to join Osisko Board STRONG PARTNERS • C$275 million equity investment by La Caisse and Fonds; La Caisse t

  16. Slide 16: Attractive Valuation for a Very Rare Opportunity

    Attractive Valuation for a Very Rare Opportunity Precedent Stream Transactions (P/NAV) Precedent Corporate Transactions (P/NAV) # of Assets 84 3 74 Acquired 2.0x 2.0x Average: 1.0x Average: 1.6x 1.6x 1.6x 1.2x 1.2x 0.8x 0.8x 0.4x 0.4x 0.0x 0.0x  Multiple paid in-line with stream asset transactions

  17. Slide 17: Financing Details

    Financing Details Financial Partners Source Amount Cash from Balance Sheet (C$ M) $250  Created in 1965, La Caisse is an institutional investor that manages several public and parapublic pension plans and insurance programs in Québec Credit Facility (C$ M) $150  Second largest pension fund in Cana

  18. Slide 18: Pro Forma Capitalization and Balance Sheet

    Pro Forma Capitalization and Balance Sheet Balance Sheet Item Pro Forma Pro Forma Ownership La Caisse Current Ownership: 4.7% Cash (C$ M) ~$100 Fonds Current Ownership: 2.9% Debt (C$ M) $200 Orion 19.7% Investments (C$ M) Over $450 La Caisse 12.1% Basic Shares Outstanding (M) 156.8 Other Osisko Shar

  19. Slide 19: Benefits to Osisko Gold Royalties Shareholders

    Benefits to Osisko Gold Royalties Shareholders  Strengthens position within the precious metals royalty sector • Could benefit from valuation re-rating  Meaningfully increases the size and scale of Osisko Gold Royalties’ platform, enhancing its competitive positioning and access to capital • Abili

  20. Slide 20: Evolution into a World Class Royalty Company

    Evolution into a World Class Royalty Company JUNE 2014 MARCH 2017 POST-ACQUISITION Cornerstone Royalty: Cornerstone Royalties: Cornerstone Assets: Canadian Malartic 5% NSR Canadian Malartic 5% NSR Canadian Malartic NSR Eléonore 2-3.5% NSR Eléonore NSR Growth Royalties: Renard Diamond Stream 2% NSR o

  21. Slide 21: Thank you

    OSISKO GOLD ROYALTIES COM | NYSE&TSX:OR OSISKO 21

  22. Slide 22: Asset Portfolio

    OSISKO GOLD ROYALTIES Asset Portfolio

  23. Slide 23: List of Key Acquired Assets

    List of Key Acquired Assets Opera tor Interes t Sta g e Ca teg ory Country Strea m s Renard Stornoway 9.6% Diamond Stream Production Cornerstone Asset Canada Mantos Mantos Copper (Private) 100% Ag Stream Production Cornerstone Asset Chile Brucejack Pretium 4% Au, 4% Ag Streams Commissioning Cornerst

  24. Slide 24: 9.6% Renard Diamond Stream

    9.6% Renard Diamond Stream Operator: Stornoway QUÉBEC’S FIRST P&P RESERVES OF Primary Diamond Commodity: DIAMOND MINE 22.3 M CARATS Location: North-Central Québec, Canada Reserves:  P&P reserves of 22.0M carats Resources:1  M&I of 0.9M and inferred of 13.4M carats  9.6% Stream on diamonds  US$50

  25. Slide 25: Renard Mine Overview

    Renard Mine Overview Project Details Project Summary Commodity Diamonds  Québec’s first diamond mine  Open pit and underground mining carried out from 5 Current Status Production (ramp-up) separate kimberlite pipes P&P Reserves 22.0M carats  7,000tpd diamond concentrating facility built and commi

  26. Slide 26: 100% Mantos Silver Stream

    100% Mantos Silver Stream A LARGE 3 BILLION POUND Operator: Mantos Copper (private company owned by Orion) COPPER MINE COPPER RESOURCE Primary Copper UNDERGOING WITH A STABLE SILVER Commodity: EXPANSION BY-PRODUCT Location: Antofagasta, Chile  100% stream on silver production; reducing to 30% after

  27. Slide 27: Mantos Project Overview

    Mantos Project Overview Project Details Project Summary Commodity Copper  A large operating open pit copper mine in the Antofagasta region of northern Chile Current Status Production (expansion)  The project is currently undergoing a ~US$70M expansion as the mine transitions from oxides to the Sul

  28. Slide 28: 4% Au/Ag Brucejack Stream, 50% Au Offtake

    4% Au/Ag Brucejack Stream, 50% Au Offtake Operator: Pretium Primary Gold Commodity: NEAR TERM HIGH GRADE GOLD PRODUCTION IN CANADA Location: 65km north of Stewart BC. Canada Reserves: P&P reserves of 8.1M oz Au, 5.9M oz Ag Resources:1 M&I of 9.1M oz Au, 7.9M oz Ag and inferred of 3.1M oz Au, 4.0M oz

  29. Slide 29: Brucejack Overview

    Brucejack Overview Project Details Project Summary Commodity Gold and Silver  Large high-grade underground mine  404 koz of gold per year expected Production (commercial Current Status  The project is in construction and ~80% built production targeted in 2017)  Commissioning is expected in Q2 20

  30. Slide 30: Brucejack Buy-Backs/Downs

    Brucejack Buy-Backs/Downs  The Brucejack stream comprises a Details of Scenarios meaningful asset in the acquired portfolio Buy-Back 2018  To be conservative, Osisko has assumed  On December 31, 2018, Pretium can elect to repurchase the 8% stream for that the stream would be bought-back on US$237

  31. Slide 31: 4.22%/62.5% Amulsar Au/Ag Stream, ~82% Au Offtake

    4.22%/62.5% Amulsar Au/Ag Stream, ~82% Au Offtake Operator: Lydian Primary Gold INITIAL 10-YEAR MINE LIFE WITH Commodity: 2.6 MILLION OZ GOLD RESERVES Location: Amulsar Mountain, Armenia Reserves: P&P reserves of 2.6M oz Au, 12.7M oz Ag Resources:1 M&I of 3.5M oz Au, 17.5M oz Ag and inferred of 1.3M

  32. Slide 32: Amulsar Overview

    Amulsar Overview Project Details Project Summary Commodity Gold and Silver  Conventional open-pit heap leach operation  Fully financed and permitted Current Status Construction  Construction underway with 44% of capex committed 103M tonnes  Expected production start in 2018 P&P Reserves 2.6M oun

  33. Slide 33: 100% SASA Silver Stream

    100% SASA Silver Stream Operator: Lynx Resources (Private Company owned by Orion) A LONG HISTORY OF CONSISTENT SILVER Primary Lead, zinc PRODUCTION IN MACEDONIA Commodity: Location: Kocani, Macedonia  100% stream on LOM payable silver production Stream:  US$5.00/oz Ag transfer payment Production:

  34. Slide 34: 75% Back Forty Silver Stream

    75% Back Forty Silver Stream Operator: Aquila Resources Primary HIGH GRADE POLYMETALLIC ASSET IN Gold, zinc Commodity: MICHIGAN NEARLY PERMITTED Location: Upper Peninsula, Michigan, USA Reserves: None, PFS expected Q2 2017 Resources:1 M&I of 11.9M oz and inferred of 2.0M oz Ag  75% stream on LOM si

  35. Slide 35: Other Cash Flowing Royalties

    Other Cash Flowing Royalties Seabee Bald Mountain Operator: Silver Standard Operator: Kinross Primary Primary Gold Gold Commodity: Commodity: Location: 125km NE of La Ronge, Saskatchewan Location: Nevada, USA  P&P mineral reserves of 0.4M oz Au  P&P mineral reserves of 2.1M oz Au P&P Reserves: P&P

  36. Slide 36: Other Cash Flowing Royalties (Cont'd)

    Other Cash Flowing Royalties (Cont'd) Brauna Kwale Operator: Lipari Mineração Operator: Base Resources Primary Primary Diamond Titanium Commodity: Commodity: Location: Bahia, Brazil Location: Kenya M&I of 1.8M cts and inferred of 1.7M cts Resources: NSR Royalty: 1.5% gross revenue royalty diamond 20

  37. Slide 37: 2.75% Casino NSR Royalty

    2.75% Casino NSR Royalty Operator: Western Copper and Gold Primary Copper, Gold PROVEN & PROBABLE MINERAL Commodity: RESERVES OF 8.9M OZ AU AND Location: 380km NW of Whitehorse, Yukon 4.5B LBS CU Reserves:  P&P reserves of 8.9M oz Au, 4.5B lbs Cu Resources:1  M&I of 8.9M oz Au, 4.7B lbs Cu and inf

  38. Slide 38: Offtakes

    Offtakes Offtake Mechanics List of Acquired Offtakes  Producer agrees to sell a predetermined portion Quotational Period Effective of future gold production from its mine to Buyer Asset Offtake Status (Business Days) NSR (%) Description of the Project Large high grade  Buyer receives the predeterm

  39. Slide 39: List of Earlier Stage Acquired Assets

    List of Earlier Stage Acquired Assets Asset Op er at o r Ju r isd ic t io n Asset Op er at o r Ju r isd ic t io n L T D ev elo p m en t Asset s Ex p lo r a t io n St a g e Asset s (Co n t 'd ) Ambler Trilogy Alaska Gabel Columbus Bravada Gold Nevada Cameron Lake First Mining Finance Ontario Gabel Wi

  40. Slide 40: Mineral Reserves and Resources

    Mineral Reserves and Resources RENARD 1 AMULSAR 3 PROBABLE RESERVES* RESERVES* GRADE (CPHT) CARATS (M) TONNES (MT) AU GRADE AG GRADE AU AG TONNES CATEGORY Total Probable 66.5 22.0 33.0 (G/T) (G/T) (M OZ) (M OZ) (MT) Proven 0.8 4.6 1.2 6.6 44.7 *Estimated at a +1 DTC sieve size cut-off Probable 0.8 3

  41. Slide 41: Mineral Reserves and Resources (cont'd)

    Mineral Reserves and Resources (cont’d) 3 BACK FORTY 1 CASINO GLOBAL RESOURCES* RESERVES* CATEGORY AG GRADE (G/T) AG (M OZ) TONNES (MT) CU GRADE AU GRADE CU AU TONNES CATEGORY Measured 27.3 5.9 6.7 (%) (G/T) (B LBS) (M OZ) (MT) Indicated 22.2 6.0 8.4 Proven 0.26% 0.4 0.7 1.8 123 Total M&I 24.5 11.9

  42. Slide 42: The Team

    The Team MANAGEMENT TEAM  Co-Founder of Osisko  Transformed Osisko  18 years of Mining Corporation Mining into a leading experience in  Transformed Osisko intermediate producer finance, treasury Mining into a leading  Over 30 years of and financial intermediate producer experience in the report

  43. Slide 43: The Technical Team

    The Technical Team  Transformed Osisko  Co-Founder of Osisko  More than 25 years Mining into a leading Mining Corporation of experience in intermediate producer  Transformed Osisko mining exploration  VP Construction of Mining into a leading Osisko Mining during intermediate the build of Canadi

Osisko Gold Royalties — Merger or Acquisition (June 2017) on 6ix