Or Royalties Inc. · TSX:OR
Or Royalties — Q1 2021 Earnings Presentation
21 slides from Or Royalties's earnings presentation, May 12, 2021
Slide 1: Q1 2021 Results
OSISKO GOLD ROYALTIES Q1 2021 RESULTS mg, » a 2021 Cs: WWW.OSISKOGR.COM | NYSE&TSX:OR
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS FORWARD-LOOKING STATEMENTS This presentation contains forward-looking information and forward-looking statements (together, “forward-looking statements“) within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Ac
Slide 3: Q1 2021 Highlights
Q1 2021 HIGHLIGHTS 19,960 GEOs1 earned Osisko declared a quarterly dividend of C$0.05 per common share paid on April 15, 2021 to Record revenues from royalties and streams of shareholders of record as of the close of business C$49.0 million on March 31, 2021 Operating cash flows generated by the roy
Slide 4: Producing Royalties and Streams
PRODUCING ROYALTIES AND STREAMS Q1 2021 GEOs BY ASSET Q1 2021 GEOs BY PRODUCT (excluding the Renard Stream) OTHER 522 GEOs (2.6%) 8,808 SILVER 4,571 GEOs 19,960 (22.9%) GEOs GOLD 14,867 GEOs 2,460 (74.5%) 1,664 1,759 1,558 1,171 620 590 624 500 445 385 264 214 113 319 203 22 GOLD SILVER DIAMONDS OTH
Slide 5: Q1 2021 Financial Performance
Q1 2021 FINANCIAL PERFORMANCE RECORD REVENUES FROM CASH FLOW GENERATED BY THE ROYALTIES AND STREAMS (C$ M)6 ROYALTY AND STREAM SEGMENT (C$ M)2 $49.0 $36.7 $37.8 $25.7 Q1 2020 Q1 2021 Q1 2020 Q1 2021 5
Slide 6: Q1 2021 Financial Performance
Q1 2021 FINANCIAL PERFORMANCE NET EARNINGS ADJUSTED EARNINGS FROM (C$ M)4 THE ROYALTY AND STREAM SEGMENT (C$ M)2,5 $10.6 Q1 2020 Q1 2021 $23.4 ($13.3) $9.8 Q1 2020 Q1 2021 6
Slide 7: Q1 2021 Results
Q1 2021 RESULTS 3 MONTHS ENDED (C$ 000) Mar. 31, 2021 Mar. 31, 2020 GOLD PRODUCTION (oz) 14,867 11,448 SILVER PRODUCTION (oz AuEq) 4,571 4,198 DIAMOND PRODUCTION (oz AuEq) 1,781 1,935 OTHER (oz AuEq) 500 578 REALIZED GOLD PRICE (C$ per oz) $2,294 $2,125 REVENUES $66,923 $52,605 GROSS PROFIT $34,599
Slide 8: Q1 2021 Revenue Breakdown
Q1 2021 REVENUE BREAKDOWN 3 MONTHS ENDED (C$ 000) Mar. 31, 2021 Mar. 31, 2020 ROYALTIES: Revenues $34,911 $25,804 Cost of Sales ($174) ($168) CASH MARGIN: $34,737 $25,636 STREAMS: Revenues $14,086 $12,030 Cost of Sales ($2,984) ($3,193) CASH MARGIN: $11,102 $8,837 OFFTAKES: Revenues $17,926 $14,771
Slide 9: Balance Sheet
BALANCE SHEET BALANCE SHEET Mar. 31, 2021 CREDIT FACILITY (C$ M) ITEMS As at March 31, 2021 Osisko Gold Osisko Royalties7 Development8 $112.9 Cash (C$ M) $119.7 $201.0 Investments (C$ M)9 $905.2 $114.2 AVAILABLE CREDIT: Debt (C$ M) $401.3 - $387.1 M10 Basic Shares Outstanding (M) 167.3 133.2 Quarter
Slide 10: Tier-1 Royalty Portfolio
A QUALITY ROYALTY PORTFOLIO NET ASSET VALUE NET ASSET VALUE NET ASSET VALUE BY COMMODITY11 BY COUNTRY RISK11 BY CASH COST11 HIGHEST SAFEST PARTNERSHIPS EXPOSURE TO PORTFOLIO WITH LOW-COST GOLD MINES TIER-1 ROYALTY PORTFOLIO 10
Slide 11: The World's Most Valuable Gold Royalty
CANADIAN MALARTIC Flagship royalty asset on Canada’s largest gold mine A stable producer at first quartile costs Significant additional mine life from newly approved, Odyssey underground project $0.40/t processing royalty on any ore outside royalty boundaries processed through mill THE WORLD’S MOST
Slide 12: Canadian Malartic Underground
Construction approval of Odyssey underground announced in CANADIAN February along with positive PEA results13 MALARTIC Updated resource of 14.5Moz13 of gold and growing UNDERGROUND Mine life extension from 2028 to at least 203913 Average underground production of 545koz of gold per year from 2029, b
Slide 13: Mantos, Eagle, Éléonore
MANTOS Mine expansion is expected to increase the throughput of the operation’s sulphide concentrator plant from 4.3 Mtpa to 7.3 Mtpa by Q4 2021 Expected to increase silver stream deliveries by 100% Ag Stream ~80% and extend mine life to 2035 Antofagasta, Chile | Mantos Copper S.A. EAGLE Commercial
Slide 14: Island Gold, Gibraltar, SASA, Seabee
ISLAND GOLD SASA 1.38%-3% NSR 100% Silver Stream Ontario, Canada | Alamos Gold Inc. Macedonia | Central Asia Metals PLC Updated resource and reserve estimate = 8% increase One of the largest zinc, lead and silver mines in Europe in reserves and a 40% increase in inferred resources Long mine life wit
Slide 15: Sustained GEO Growth
SUSTAINED GEO GROWTH GEO PRODUCTION EAGLE SAN ANTONIO MALARTIC UPPER BEAVER 78,000 RAMP UP 5% NSR 15% Au-Ag Str. 9.000 GEOs/Year UNDERGROUND 3-5% NSR 2% NSR 2,400 GEOs/Year 82,000 66,113 MANTOS EXPANSION16 CARIBOO HORNE 5 SPRING VALLEY 100% Ag Stream 5% NSR 100% Ag Stream 2,055 +6,000 GEOs/Year 9,30
Slide 16: Built-in Growth
BUILT-IN GROWTH High development weighting maturing at the right time Average of 970,000 meters drilled/yr for the last four years on our royalty assets Royalties or streams on ~25,000 km2 in the some of the most important Canadian mining camps NPV BY STAGE DRILLING ON OSISKO’S ROYALTY PROPERTIES17
Slide 17: Recent Transactions
RECENT TRANSACTIONS SPRING VALLEY PARRAL GOLD AND SILVER ROYALTY ACQUISITION – APRIL 2021 OFFTAKE CONVERSION – APRIL 2021 TRANSACTION SUMMARY: GoGold Resources Inc. and Osisko Bermuda Limited entered into an agreement to convert 6 royalties and one offtake for aggregate cash the current Parral gold
Slide 18: ESG Integral to Corporate Philosophy
ESG INTEGRAL TO CORPORATE PHILOSOPHY ESG due diligence fully integrated into project evaluations Evolving contract structures to ensure risks are efficiently managed ESG committee responsible for policies and practices SUSTAINABILITY Recently published inaugural ESG report IS, AND ALWAYS HAS BEEN, A
Slide 19: Funding a Decarbonized World
FUNDING A DECARBONIZED WORLD Osisko aims to be a leader in the ESG Leverages our streaming space and a part of the solutions expertise in a new sector that towards a Net-Zero world can have a meaningful impact on future generations Strategic partnership with Carbon Streaming Corp. that aims to finan
Slide 20: Summary
SUMMARY RECORD 19,960 93.6% C$36.7 M C$49.0 M C$119.7 M ATTRIBUTABLE CASH MARGIN EARNED CASH FLOW FROM OPERATING IN CASH AS AT REVENUES FROM GEOs EARNED FOR ON GEOs RECEIVED ACTIVITIES GENERATED BY THE MAR. 31, 2021 ROYALTIES AND Q1 2021 FOR Q1 2021 ROYALTY AND STREAM (ROYALTIES AND STREAM (excludin
Slide 21: Endnotes
ENDNOTES 1. GEOs are calculated on a quarterly basis and include royalties, streams and offtakes. Silver earned from royalty and stream agreements was converted to gold equivalent ounces by multiplying the silver ounces by the average silver price for the period and dividing by the average gold pric