Or Royalties Inc. · TSX:OR
Or Royalties — Q2 2021 Earnings Presentation
19 slides from Or Royalties's earnings presentation, Aug 10, 2021
Slide 1: Q2 2021 Results
Q2 2021 RESULTS AUGUST 10, 2021
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: Q2 2021 Highlights
Q2 2021 HIGHLIGHTS 20,178 GEOs1 earned SUBSEQUENT TO Q2 Record revenues from royalties and streams of In July 2021, amendments to revolving credit C$49.9 million facility. Increasing the amount available by C$150 million to C$550 million, with an Record cash flows generated by the royalties and addi
Slide 4: Quarterly Dividend Increase
QUARTERLY DIVIDEND INCREASE 10% increase in quarterly dividend to C$0.055 per common share Quarterly Dividend (C$/share) C$0.03 C$0.04 C$0.05 C$0.055 Cumulative Dividend Returned since Inception (C$M) $184.4 $149.1 $116.3 $86.3 $55.1 $30.8 $1.6 $13.8 2014 2015 2016 2017 2018 2019 2020 2021e PRIORITI
Slide 5: Transactions
TRANSACTIONS SPRING VALLEY PARRAL GOLD AND SILVER ROYALTY ACQUISITION – APRIL 2021 OFFTAKE CONVERSION – APRIL 2021 Acquired six royalties and one precious metals GoGold Resources Inc. and Osisko Bermuda offtake, for total cash consideration of US$26.0 Limited entered into an agreement to convert mil
Slide 6: Transactions (Cont'd)
TRANSACTIONS (CONT’D) ROYALTY ACQUISITION ON TOCANTINZINHO PROJECT - JULY 2021 Royalty transfer agreement to purchase a 2.75% NSR royalty on the Tocantinzinho gold project (“TZ”), as well as on the surrounding 28,275 hectare land package, for a cash consideration of US$10 million (C$12.6 million) Th
Slide 7: Producing Royalties and Streams
PRODUCING ROYALTIES AND STREAMS Q2 2021 GEOs BY ASSET Q2 2021 GEOs BY PRODUCT (excluding the Renard Stream) OTHERS 552 GEOs (2.7%) SILVER 9,433 4,071 GEOs 20,178 (20.2%) GEOs GOLD 2,297 15,555 GEOs (77.1%) 1,771 1,612 1,076 949 587 608 552 431 258 185 41 103 161 114 GOLD SILVER OTHERS (R) = Royalty,
Slide 8: Canadian Malartic
CANADIAN Strong Q2 from the open pit with record quarterly tonnes MALARTIC mined (18.3M tonnes). The mill continued to perform above target, processing 5.7M tonnes Infill drilling continues to return encouraging results in the core of the East Gouldie (EG) deposit (5% NSR) The eastern extension of t
Slide 9: Mantos Blancos and Eagle
MANTOS BLANCOS EAGLE 100% Silver Stream 5% NSR Antofagasta, Chile Yukon, Canada Mine expansion is expected to increase the 2021 guidance of 180koz to 200koz of gold. Stronger throughput of the operation’s sulphide concentrator H2 2021 expected due to seasonal effects and plant from 4.3 Mtpa to 7.3 M
Slide 10: Santana and Ermitaño
SANTANA ERMITAÑO 3% NSR 2% NSR Sonora State, Mexico Sonora State, Mexico Simple open pit, heap leach in Northern Mexico Production expected early 2022. Test mining now underway First gold production expected imminently Updated resource pending and prefeasibility study Maiden NI 43-101 resource pendi
Slide 11: Cariboo Gold Camp and San Antonio
CARIBOO GOLD CAMP SAN ANTONIO 5% NSR 15% Gold & Silver Stream BC, Canada Sonora, Mexico A total of 200,000m to be drilled in 2021 (100,000m A total of 45,000m to be drilled in 2021 (11,500m of drilling completed to date in 2021) of drilling completed to date in 2021) Lowhee expanding rapidly while s
Slide 12: Windfall and Upper Beaver
WINDFALL UPPER BEAVER 2-3% NSR 2% NSR Québec, Canada Ontario, Canada Continues to intersect significant mineralization Conversion and expansion drilling at depth from both infill and expansion drilling, including continues to intersect high-grade copper-gold, 2,181g/t gold over 2.5m and 403g/t gold
Slide 13: Q2 2021 Financial Performance
Q2 2021 FINANCIAL PERFORMANCE RECORD REVENUES FROM RECORD CASH FLOW ROYALTIES AND STREAMS (C$ M)11 GENERATED BY THE ROYALTIES AND STREAMS SEGMENT (C$ M)2 $49.9 $37.3 $28.7 $16.8 Q2 2020 Q2 2021 Q2 2020 Q2 2021 13
Slide 14: Q2 2021 Financial Performance
Q2 2021 FINANCIAL PERFORMANCE NET EARNINGS (LOSS) ADJUSTED EARNINGS FROM (C$ M)4 THE ROYALTIES AND STREAMS SEGMENT (C$ M)2,5 $13.0 Q2 2020 Q2 2021 $23.9 ($14.8) $6.6 Q2 2020 Q2 2021 Mostly as a result of an impairment charge of $36.1 million on the Bonanza Ledge Phase 2 project, operated by Osisko D
Slide 15: Q2 2021 Results
Q2 2021 RESULTS 3 MONTHS ENDED 6 MONTHS ENDED (C$ 000) Jun. 30, 2021 Jun. 30, 2020 Jun. 30, 2021 Jun. 30, 2020 GOLD PRODUCTION (oz) 15,555 8,571 30,442 20,019 SILVER PRODUCTION (oz AuEq) 4,071 3,180 8,642 7,378 DIAMOND PRODUCTION (oz AuEq) 1,985 177 3,766 2,112 OTHER (oz AuEq) 524 458 1,024 1,036 RE
Slide 16: Q2 2021 Revenues Breakdown
Q2 2021 REVENUES BREAKDOWN 3 MONTHS ENDED 6 MONTHS ENDED (C$ 000) Jun. 30, 2021 Jun. 30, 2020 Jun. 30, 2021 Jun. 30, 2020 ROYALTIES: Revenues $36,347 $20,819 71,348 46,623 Cost of Sales ($119) ($99) ($293) ($267) CASH MARGIN: $36,318 $20,720 $71,055 $46,356 STREAMS: Revenues $13,470 $7,914 $27,556 $
Slide 17: Balance Sheet Strength
BALANCE SHEET STRENGTH BALANCE SHEET June 30, 2021 CREDIT FACILITY (C$ M) ITEMS As at June 30, 2021 Considering the recent increase in the Osisko Gold Osisko facility Royalties12 Development13 $112 Cash (C$ M) $110.3 $144.6 Investments (C$ M)14 $888.2 $103.9 AVAILABLE Debt (C$ M) $402.0 - CREDIT: $5
Slide 18: Summary
SUMMARY 94% C$37.3 M 20,178 (97% excluding the RECORD CASH FLOWS FROM C$49.9 M C$110.3 M ATTRIBUTABLE Renard stream) RECORD REVENUES IN CASH AS AT OPERATING ACTIVITIES GEOs EARNED FOR CASH MARGIN EARNED FROM ROYALTIES JUN. 30, 2021 GENERATED BY THE Q2 2021 ON GEOs RECEIVED AND STREAMS (ROYALTIES AND
Slide 19: 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