Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $1 billion, operating cash flow of $705 million, and earnings of $466 million, representing increases of 43%, 33%, and 40% respectively compared to 2024 [5] - Adjusted net income reached a record $510 million, a 47% increase over 2024 [5][6] - The adjusted EBITDA margin was maintained at 82% for the year, supported by strong gold prices and stable cash G&A [6] Business Line Data and Key Metrics Changes - Gold contributed 78% of total revenue for the year, with significant revenue growth from the stream segment, which increased over 110% year-over-year to $265 million [11][19] - Royalty revenue for the quarter was up 42% year-over-year to $111 million, driven by strong performance from the Cortez CC zone and Peñasquito [11] Market Data and Key Metrics Changes - Metal prices significantly impacted revenue, with gold prices up 55%, silver up 74%, and copper up 21% compared to the prior year [19] - The company expects its revenue mix to remain consistent post-acquisition, maintaining the highest gold revenue percentage among large-cap peers in the royalty and streaming sector [19] Company Strategy and Development Direction - The company made several acquisitions, including Sandstorm Gold and Horizon Copper, to diversify and strengthen its portfolio [7][8] - The integration of the Sandstorm and Horizon portfolios is largely complete, with a focus on rationalizing and simplifying operations [9] - The company plans to host an investor day on March 31st to provide context for 2025 activities and guidance for 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position following a record year, emphasizing the strength of the underlying portfolio [32] - The company anticipates a steady state moving forward, with expectations for continued strong performance in 2026 [27][28] Other Important Information - The company paid over $118 million in dividends to shareholders and raised its annual dividend to $1.90 per share for 2026, marking the 25th consecutive annual dividend increase [6] - The company ended the year with outstanding debt of $900 million, with plans to reduce this to $725 million early in 2026 [28][29] Q&A Session Summary Question: What does the deal pipeline look like currently? - Management indicated that the deal pipeline remains strong, with ongoing activity despite market volatility [34][36] Question: Regarding Hod Maden, what is the company's involvement in discussions about the construction decision? - Management confirmed satisfaction with the technical report and stated that they are involved in discussions with SSR regarding development strategy and spending [43][46] Question: Can you elaborate on the mechanics behind the potential conversion of the Mara option into a gold stream? - The company can convert a small royalty into a 20% gold stream by investing approximately $225 million over the construction period [49][50] Question: What is the company's strategy regarding debt repayment versus new investments? - Management emphasized that finding good investments remains a priority, and they are not prioritizing debt repayment over new opportunities [85][88] Question: Why doesn't the company provide preliminary royalty revenue expectations? - The company explained that information rights limit their ability to provide estimates until after operators report their results [60][62]

Financial Data and Key Metrics Changes - OR Royalties achieved record annual revenues of $277.4 million, record operating cash flow of $246 million, and record earnings of $1.10 per share for the year 2025, driven by elevated precious metals prices [3][4] - The company ended 2025 with $142.1 million in cash and was completely debt-free, having paid off its credit facility in Q3 [4][33] - The company declared a quarterly dividend of $0.055, marking its 45th consecutive dividend, with over $279 million returned to shareholders to date [4][5] Business Line Data and Key Metrics Changes - OR Royalties earned 80,775 gold equivalent ounces (GEOs) in 2025, with 95% of GEOs coming from precious metals, including 65% from gold and 31% from silver [3][9] - The company had 22 producing assets at the end of 2025, with a significant portion of contributions from Tier One mining jurisdictions [9][12] Market Data and Key Metrics Changes - The company expects GEOs earned in 2026 to range between 80,000 and 90,000, with an average cash margin of approximately 97% [24][25] - The 2026 guidance reflects a consensus commodity price ratio of 73-to-1 for gold to silver, with current spot ratios around 64-to-1 [26] Company Strategy and Development Direction - The company emphasized a disciplined approach to capital allocation, prioritizing value over volume in acquisitions, with only $25 million spent on royalty and stream acquisitions in 2025 [6][7] - OR Royalties is targeting assets that contribute to a projected 50% growth trajectory through to 2030, focusing on accretive value creation [34][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, highlighting the strategic advantage of being debt-free and having a strong cash position [4][33] - The company anticipates significant growth in GEOs from various assets, including Canadian Malartic, Island Gold, Dalgaranga, San Gabriel, and Namdini, particularly in 2027 [25][26] Other Important Information - The company recently acquired a 1.5% NSR royalty at Buenaventura's San Gabriel Mine, which is expected to ramp up production and contribute meaningfully to GEOs from 2028 onwards [12][14] - The acquisition of the Gold Fields royalty portfolio is expected to strengthen the company's long-term pipeline and provide immediate cash flow [34] Q&A Session Summary Question: Guidance for year-over-year performance - Management explained that the methodology for 2026 guidance is consistent with previous years, using a consensus pricing ratio of 73-to-1 for gold to silver, with potential upside if silver prices stabilize [40][41] Question: Mine ramp-ups and production profile - Management indicated no significant new ramp-ups beyond disclosed assets, with Mantos Blancos being the largest contributor to silver deliveries [42][43] Question: Opportunities for further acquisitions - Management confirmed ongoing exploration of acquisition opportunities, including familiar assets and new portfolios, while maintaining a focus on geography [44][45] Question: Expected GEOs from specific assets in 2030 - Management stated that the 2030 guidance includes minimum payments from Cascabel, with potential additional GEOs from various assets [54] Question: Mantos performance expectations - Management confirmed that expectations for Mantos are effectively flat compared to 2025 and 2026 [58]