OR Royalties Inc. Annual Report: A Plain-English Guide

I’m sharing this guide to help you understand how OR Royalties Inc. performed this year. My goal is to cut through the corporate jargon and give you the facts you need to decide if this company belongs in your portfolio.

1. What does this company do?

Think of OR Royalties as a landlord for mining companies. Instead of digging for ore themselves, they provide upfront money to mining operators. In exchange, they receive a royalty—a percentage of the gold, silver, or copper produced.

This is a lower-risk way to invest in mining because the company avoids daily operating costs, labor strikes, and mine accidents. As of December 31, 2025, they hold 217 royalty and stream interests, providing exposure to 41 producing mines worldwide.

2. Financial performance: A big year for growth

The company had a fantastic 2025. Revenue jumped to $277.4 million, up from $191.2 million in 2024. That is a 45% increase, driven by higher production at the Canadian Malartic and Cortez mines.

They also strengthened their balance sheet. They paid off all long-term debt, which was $93.9 million last year. This makes the company more stable and stops interest payments from eating into their profit. They also hold $142.1 million in cash—up from $59.1 million—giving them plenty of money to make new deals. Profit for the year reached $88.6 million, up from $52.3 million, reflecting a healthy 32% profit margin.

3. Major wins and expansion

The company is in growth mode. In 2025, they spent $215 million to acquire new royalty interests, including a 1.2% royalty on the Mara project. They are constantly reinvesting to ensure a steady flow of metal for years to come. Their total assets grew from $1.38 billion to $1.57 billion, thanks to these acquisitions and the rising value of their existing interests.

4. Future outlook

Momentum has carried into 2026. They recently secured deals with Gold Fields Limited and the Namdini gold mine. This is expected to add 15,000 gold-equivalent ounces annually starting in late 2026. They are targeting a 10% annual increase in production for the next three years, which is a positive sign for long-term growth.

5. Key risks

• The "Operator" Problem: OR Royalties relies on other companies to run the mines. If an operator faces a strike or management failure, OR Royalties loses money. A 10% production drop at a major site like Cortez directly reduces their revenue.
• Commodity Prices: Their income depends on the market price of gold, silver, and copper. A 5% drop in gold prices would have cut 2025 revenue by about $12 million.
• Geopolitical Issues: Mines are global. Political unrest or new mining laws can shut down production. Currently, 22% of revenue comes from regions with higher political risk, such as parts of West Africa and South America.

6. Leadership and strategy

Management has grown the business while keeping the books clean. Auditors confirmed their internal controls are effective, and they have a policy to claw back executive bonuses if financial results are inaccurate. They offer a Dividend Reinvestment Plan (DRIP) for shareholders. The annual dividend is $0.16 per share, using only 28% of their operating cash flow. This leaves plenty of room to pay dividends while still funding future growth.

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Final Thought for Investors: OR Royalties offers a unique way to gain exposure to metal prices without the heavy risks of running a mine. With zero long-term debt, a growing cash pile, and a clear expansion strategy, they are well-positioned for the future. When deciding, weigh their strong balance sheet against the reality that they are ultimately dependent on the performance of third-party mine operators and global commodity price swings.