Or Royalties Inc. · TSX:OR
Or Royalties — Osisko Gold Royalties — Investor Presentation (January 2021)
27 slides from Or Royalties's investor presentation, January 2021
Slide 1: The Leading Growth-Oriented Royalty Company
THE LEADING GROWTH-ORIENTED ROYALTY COMPANY JANUARY 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: Osisko Business Model
OSISKO BUSINESS MODEL ROYALTY MODEL BENEFITS High leverage to gold Highly efficient business model (+90% cash margin, sustainable dividend, small team with low G&A, scaleable business) No capital cost requirements Predictable operating costs Free upside to additional ounces found Significantly highe
Slide 4: A Quality Royalty Portfolio
A QUALITY ROYALTY PORTFOLIO NAV BY COUNTRY RISK NAV BY COMMODITY Over 140 royalties, streams and precious Lower Medium High Gold Silver PGM Other metals offtakes 5% 5% 15% 12% 18% 29% 18% 7% 16% Diversified cash flow from 17 producing 48% 55% 13% 40% 6% assets (primarily on gold mines) 72% 95% 70% 7
Slide 5: A Quality Investment
A QUALITY INVESTMENT TSX | NYSE: OR DIVIDEND YIELD Highest dividend in royalty peer group High trading liquidity (on average $19.3M per day over the last three months) Strong balance sheet and significant financial capacity 1.2% 1.1% 1.1% 0.8% Diversified, supportive shareholder base 0.0% Significan
Slide 6: Committed to Managing Risk – Focus on ESG
COMMITTED TO MANAGING RISK – FOCUS ON ESG OUR APPROACH ESG due diligence fully integrated into project evaluations Much like investment community, we use ESG evaluations to price risk TOP QUARTILE “A” ESG RATING Promote best-in-class practices FROM MSCI AS AT OCTOBER 8, 2020 Evolving contract struct
Slide 7: Tier-1 Royalty Portfolio
TIER-1 ROYALTY PORTFOLIO GIBRALTAR 75% Ag ÉLÉONORE SASA STREAM 2-3.5% NSR 100% Ag STREAM EAGLE RENARD 5% NSR 9.6% DIAMOND STREAM LAMAQUE 6 SEABEE 3% NSR 0.85% NSR 3 OVER 140 108 BALD CANADIAN ROYALTIES, MALARTIC MOUNTAIN 5% NSR STREAMS & 1-4% NSR ISLAND GOLD PRECIOUS METAL PAN MINE 2 4% NSR 1.38-2.5
Slide 8: A Catalyst Rich Phase
A CATALYST RICH PHASE EXISTING PRODUCING ASSETS OUTPERFORMING Operators replacing production, extending mine lives and in certain cases announcing significant expansions Malartic Underground discovery represents a new flagship royalty in the making (Q1 milestones) Continued Eagle ramp up and Mantos
Slide 9: The World's Most Valuable Gold Royalty
CANADIAN MALARTIC Flagship royalty asset Canada’s largest gold mine A stable producer at first quartile costs Significant additional mine life potential from new underground discovery THE WORLD’S MOST OUNCES DELIVERED TO OSISKO (K oz Au) VALUABLE GOLD ROYALTY 35.4 33.6 33.5 30.1 29.2 5% NSR Québec,
Slide 10: Canadian Malartic Underground
CANADIAN MALARTIC 10 Moz of resources (mostly in the inferred category2) UNDERGROUND Underground ramp development began in 20203 Revised R&R and PEA study expected in Q1 20213 The underground has the potential to support a multi-hundred thousand ounce annual production platform for decades3 Increase
Slide 11: Eagle, Mantos Blancos, Éléonore
EAGLE Ramping up to 220,000 ounces of gold per year Exploration delivering high grade drill results on the Raven target, expanding strike length to 750 meters 5% NSR Open in all directions - a 250m step out to the East returned Yukon, Canada | Victoria Gold Corp. 2.77g/t over 66 meters MANTOS BLANCO
Slide 12: Island Gold, SASA, Gibraltar, Seabee
ISLAND GOLD SASA 1.38%-3% NSR 100% Ag Stream Ontario, Canada | Alamos Gold Inc. Macedonia | Central Asia Metals PLC Positive Phase III Expansion Study and proceeding with an One of the largest zinc, lead and silver mines in Europe expansion of the operation to 236,000 ounces/year starting in 2025 Lo
Slide 13: Sustained GEO Growth
SUSTAINED GEO GROWTH EAGLE SAN ANTONIO MALARTIC UPPER BEAVER RAMP UP 15% Au-Ag Str. UNDERGROUND 2% NSR 5% NSR 9.000 GEOs/Year 3-5% NSR 2,400 GEOs/Year GEO PRODUCTION MANTOS EXPANSION4 CARIBOO HORNE 5 BACK FORTY COVID-19 100% Ag Stream 5% NSR 100% Ag Stream 18.5% Au, 75% Ag Str. IMPACTED 6,000 GEOs/Y
Slide 14: Built-In Growth
BUILT-IN GROWTH Highest development weighting in peer group maturing at the right time Over 540,000 meters drilled on our producing assets in 2019 Royalties or streams on ~25,000 km2 in the some of the most important Canadian mining camps NAV BY STAGE DRILLING ON OSISKO ROYALTY PROPERTIES6 Producing
Slide 15: Growth Assets
GROWTH ASSETS CARIBOO CAMP SAN ANTONIO WINDFALL HORNE 5 5.0% NSR 15% Au & Ag Stream 2.0-3.0% NSR 90-100% Ag Stream B.C., Canada Sonora, Mexico Québec, Canada Québec, Canada 5.9 Moz Au7 and growing High grade 1.05 Moz Au8 Unique combination of 6 million GEOs in size and high grade with reserves10 Dec
Slide 16: Growth Assets (Cont'd)
GROWTH ASSETS (CONT’D) HERMOSA PINE POINT RENARD AMULSAR 1.0% NSR 2.0% NSR 9.6% Diamond Stream 4.2% Au & 62.5% Ag streams Arizona, USA NWT, Canada Quebec, Canada Armenia Over 100Mt at 10.4% Rare combination of size $1B of well-built Significant mineral ZnEq and multi-decade and high grade infrastruc
Slide 17: Further Imbedded Optionality
FURTHER IMBEDDED OPTIONALTY ASSET ROYALTY OPERATOR ASSET UPDATE Extension of the mineralized footprint of the project announced on Antakori 1.5%-3% NSR January 7, 2021 Ambler 1% NSR Feasibility study released and seeking federal 404 permit in H2-21 18.5% Au and 85% Back Forty Navigating permitting p
Slide 18: Strong Financial Position
STRONG FINANCIAL POSITION CREDIT FACILITY (C$ M)13 ANALYST COVERAGE14 BALANCE SHEET Sep. 30, 12-MONTH ITEMS 2020 RATING TARGET PRICE C$86.7 Cash and cash equivalents BOFA SECURITIES BUY C$18.50 $160.7 (C$ M) BMO CAPITAL MARKETS HOLD C$21.00 CANACCORD GENUITY BUY C$26.00 Debt (C$ M) $421.6 CIBC WORLD
Slide 19: A Significant Opportunity
A SIGNIFICANT OPPORTUNITY DEVELOPMENTS SINCE FALL 2019 CURRENT VALUE SPLIT VALUE SPLIT16 PRIOR TO BGM TRANSACTION (Fall 201915) A streamlined royalty company post development EQUITY EQUITY asset spin-out PORTFOLIO: PORTFOLIO: $1,024M12 $353M Gold up ~US$400/oz Malartic UG advancing steadily Added 20
Slide 20: Osisko Gold Royalties: A Portfolio That Matters
OSISKO GOLD ROYALTIES A PORTFOLIO THAT MATTERS UNLOCKING VALUE OVER 140 C$160.7 M ~18,800 PAID-FOR IN CASH ROYALTY, DIVIDEND ATTRIBUTABLE GROWTH + STREAM AND GEOs EARNED YIELD OFFTAKE WITH C$413.3 M FOR Q4 2020 ~1.2% UNDRAWN ASSETS CATALYSTS FACILITY LOW RISK EXPOSURE TO GOLD POISED TO OUTPERFORM 86
Slide 21: Appendix
OSISKO GOLD ROYALTIES __ APPENDIX > WWW.OSISKOGR.COM | NYSEaTSX:OR
Slide 22: Accelerator Case Studies
ACCELERATOR CASE STUDIES Equity Cost Equity Current Value Royalty/Stream Cost Royalty/Stream Value Total Return 17 348% 222% 120% 121% 62% (12%) 30% $857 $529 $11518 $176 $140 $152 $127 $114 Current Value $92 $98 Investment $81 $8120 $50 $56 $4119 $47 $24 $17 $17 $12 $8 $7 $13 $5 $619 $13 $10 $2518
Slide 23: Royalties, Streams and Offtakes – Complete List
ROYALTIES, STREAMS AND OFFTAKES – COMPLETE LIST ASSET NAME OPERATOR COUNTRY STATUS DESCRIPTION Producing Royalties, Streams & Offtakes 1 Canadian Malartic CM Partnership (Agnico Eagle, Yamana) Canada Production 5% NSR 2 Éleonore Newmont Canada Production 2-3.5% NSR on Au, 2% NSR on all other metals
Slide 24: Royalties, Streams and Offtakes – Complete List
ROYALTIES, STREAMS AND OFFTAKES – COMPLETE LIST ASSET NAME OPERATOR COUNTRY STATUS DESCRIPTION 39 Malartic UG CM Partnership (Agnico Eagle, Yamana) Canada Development East Gouldie 5% NSR, North Odyssey & East Malartic 3% NSR, South Odyssey 5% NSR 40 Magino Argonaut Gold Canada Development 3% NSR on
Slide 25: Royalties, Streams and Offtakes – Complete List
ROYALTIES, STREAMS AND OFFTAKES – COMPLETE LIST ASSET NAME OPERATOR COUNTRY STATUS DESCRIPTION 80 Eastmain West Azimut Exploration Canada Exploration 1.4% NSR 81 El Tecolote Minera Piedra Azul, S.A. Mexico Exploration 2% NSR 82 Estacion Llano Minera Piedra Azul, S.A. Mexico Exploration 2% NSR 83 Exp
Slide 26: Royalties, Streams and Offtakes – Complete List
ROYALTIES, STREAMS AND OFFTAKES – COMPLETE LIST ASSET NAME OPERATOR COUNTRY STATUS DESCRIPTION 118 Sabourin Creek O3 Mining Canada Exploration 2.5% NSR on all metals 119 Sagar (Uranium, Gold) Next Source Material Canada Exploration 1.5% NSR 120 Sandman 1 & 2 Gold Bull Resources Corp. United States E
Slide 27: Endnotes
ENDNOTES 1. Cash gross margin, which represents revenues less cost of sales, is a non-IFRS measure. The Company believes that this non-IFRS generally accepted industry measure provides a realistic indication of operating performance and provides a useful comparison with its peers. 2. Agnico Eagle’s
Osisko Gold Royalties — Investor Presentation (January 2021) on 6ix