OR Royalties Inc.

Good morning, ladies and gentlemen, and welcome to the Osisko Gold Royalties Q2 2020 Results Conference Call. After the presentation, we will conduct a question and answer session. If you would like to ask a question, please pick up your receiver and press star followed by the number one on your telephone keypad. Please note that this call is being recorded today, August 6, 2020, at 10 a.m. Eastern Time. Today on the call, we have Mr. Sean Rusin, Chair of the Board of Directors and Executive Officer of Osisko Gold Royalties. Mr. Sandeep Singh, President of the Cisco Gold Royalty, and Mr. Frédéric Ruel, Chief Financial Officer and Vice President Finance. I'd now like to turn the meeting over to our host for today's call, Mr. Sean Rosen. Bonjour, Mesdames et Messieurs, et bienvenue à la conférence des résultats du deuxième trimestre de l'année 2020 de Redevance pour y faire au Cisco Limited. Après la présentation, nous procéderons à une séance de questions et réponses. Si vous désirez poser une question, veuillez décrocher le combiné du téléphone et appuyer sur la touche étoile suivie du numéro 1. Veuillez prendre note que cet appel est enregistré aujourd'hui le 6 août 2020 à 10 h de l'Est. Nous avons sur l'appel d'aujourd'hui M. Sean Wilson, président du Conseil d'administration et chef de la direction de Redevance Orifère Osisko, M. Cindy Singh, président de Redevance Orifère Osisko, et M. Frédéric Ruel, Chief Financial Director and Vice-President of Finance. I would now like to give the floor to your host, Mr. Sean Roussin.

Thank you very much, and welcome to our conference call for the second quarter of Cisco. For everyone on the line, we will follow the PowerPoint on our website, which is on the second quarter of 2020 for Cisco. And I ask everyone, from a Q&A point of view, ask us questions in French, there's no problem. And we're going to move forward today with the announcements, more or less in line with what you have wished, I hope, for all the situations that exist. And I wish you all the best. And to all our partners, in a difficult time, we will be sure that we, as Cisco, will try to be a leader from a health perspective here in the sector. And we are moving forward with all our projects, our partners, with all the consequences that exist in the health situation. And I'll switch to English now. And just to recap what I had said, you know, we really are trying to make sure that we are the best partners out there for COVID-19 for both of our operators, our employees. and our investors. We've taken a lot of steps and tried to be a leader in terms of how things should be done and can be done during this pandemic. We've taken a very strong position in terms of supporting all of our operators and to do the best we can to take care of all of our associated partners and employees. and families that are associated with us and those in the greater good of our society as we go through this pandemic. I'll start off with a basic recap of the business. I don't want to lose sight of where we are in this pandemic, but we did produce 12,386 GEOs in the quarter. We had $228.7 million in of revenues and royalties from our products that we invested in. Cash flow from operating activities was at $15.4 million. Net earnings at $13 million with about $0.08 per share. Adjusted earnings of $5.7 million after several payments, including dividends. We withdrew production guidance due to COVID-19. In Q1 and Q2, we are back now guiding to about 63,000 to 65,000 ounces a year. And for the first half of the year, somewhere between the second half of the year, from 33,000 to 35,000 ounces as the mines come back online. We also did a financing in the second quarter of $85 million with Investment Quebec and We really thank the government of Quebec and Investment Quebec for having partnered up with us during a hard time. It was more, you know, sort of a vote of confidence, I think, from our partners at Investment Quebec to really to come in and, you know, bolster our balance sheet in a time when things were unclear. And obviously, we have a lot of commitments in Quebec and Canada partnerships with Investment Quebec. So this makes great sense for us to continue to have our partners invest in us and with us as we move forward. We also improved the silver stream from Gibraltar, having paid $8.5 million to transfer price to go from $2.75 an ounce in transfer costs down to zero. So we basically had a royalty status on that silver stream, which I think is an exceptional asset. um, to achieve during this, uh, this market where we, we see a lot of competition, uh, for royalties and streams. So it's, you know, it's Austin to, to the team for, for getting the deal done. And, uh, obviously a big vote of confidence from our partners at your broker, uh, you know, and, and just take in terms of their confidence, choose us as a partner on that deal as we go forward. Um, also we saw the commercial production declaration from Victoria gold. obviously a huge milestone for us. We have a 5% top line royalty on that project. I'd like to congratulate John McConnell and the whole team at Victoria for just, you know, exceptional mind build. Just getting that project going during a time when, you know, we faced a couple of cold winters and we saw the thing through and, you know, John and his team our building in Canada's next best gold mine, and it was the largest gold mine ever built in the Yukon. And, you know, heading for 200,000 ounces a year plus of production and just an exceptional outcome on that project with our partners from Orion Mine Finance and ourselves having led the charge to get the project financed back in 2018 and 19 when everybody else was hiding under the bed. We were able to get that project finance and John's management team huge kudos and hats off for the work that they did there to make that project work the way it is working now and obviously hitting a premium gold market it couldn't have been smarter and it couldn't have been better so that's the way we see it you know in terms of our COVID-19 results I mean it obviously Osisko really hasn't hasn't had a big impact on us in terms of you know, what has been for other industries. And we're quite humble about taking advantage of the situation. But, you know, the price of gold has gone through the roof. And, you know, our partners continue to operate at a very good pace. And we see a lot of things positive happening in the gold space in terms of the projects that we're involved in as we go forward. We declared a $0.05 dividend in July 15, 2020. So that continues to be a leading dividend in the gold space. Subsequent to the Q2 results, we are looking for 33,000 to 35,000 ounces of GEOs in the second quarter. Obviously, it's a good school price. Anything that's not pure gold is taking a backseat in terms of GEOs. on an equivalent basis. So, you know, we're definitely seeing revenues increase based on the pure gold assets in a proportionate basis to other assets. I'll move on right now to page 12, and I'm going to hand it over to Fred to take that through, if we could, please.

Okay. Good morning, everyone. As previously noted by Sean, our deliveries of precious metals were affected by the COVID impact in G2. Several of our operating counterparties have announced temporary operational restrictions due to the COVID-19 pandemic, including reduced activities and operations based on care methods. As of today, most operators have restarted their activities and have reached, for our in the near term. The strong gold price offset the reduction in EGLs earned during the second quarter, which should lead us to a great second half of the year, both in terms of cash margin and cash flows. If we go to page five of the presentation, revenues from royalties and streams amounted to 28.7 million, compared to 33.8 million in June 2019. Cash flows from operating activities were 15.4 million compared to 21.4 million last year. Excluding the impact of the changes in non-cash working capital items, operating cash flows were 18.6 million compared to 23.5 million. On page six, we show a breakdown of our cash margin for Q2 and near today. The cash margin on our royalties decreased by 3 million to 20.7 million in Q2. For the first half of the year, the cash margin on royalties reached 46.4 million, less than 1 million lower than in 2019, despite the COVID impact on our deliveries due to the strong hold prices, which offset the lower delivery in Q2. The cash margin on our streams was 6.4 million in Q2, similar to 2019, and 15.4 million for the first half of the year, which was 3.2 million higher than last year, resulting in a cash margin on our royalties and streams of 95% in Q2 of this year compared to 90% in Q2 of last year. Our total cash margin reached 27.8 million in Q2, including 0.6 million from our uptake agreements, $3.7 million lower than in 2019. Year-to-date, our total cash margin was $63.1 million, an increase of $1 million. On page seven, we present the summary of our earnings and adjusted earnings. Net income was $13 million in Q2, $0.08 per share, compared to a net loss of $6.5 million in Q2 2019 of $0.05 per share. Adjusted earnings were $5.7 million, or 3 cents per share compared to 8.2 million or 5 cents per share less. We can go on page 8, representation, where we have a summary of our results for Q2 and year-to-date. Geos from goat production were lowered this year, partly due to the sale of the goose jet off stake in 2019 and, of course, the impact of COVID. The decrease in our total revenues from $132 million to $41 million was also due to the sale of Prusak off-state, as well as low deliveries as a result of the COVID pandemic. But this was partially offset by the higher realized price on our gold. Our average gold price per ounce sold amounted to $2,363 Canadian in June of this year. compared to $1,766 in Q2 of last year. Gross profit for Q2 was relatively flat at $19.1 million compared to $19.7 million in 2019. On page 9, you find a summary of our financial position. Our cash balance at the end of Q2 was over $200 million. Our debt amounted to $422 million. which includes the drawdown of $50 million done in March on the revolving credit facility as a cautionary measure. Our net debt amounted to, at the end of June 2, $220 million. If we include the $100 million accordion available under our credit facility, the total facility available is over $400 million at the end of June, which places Cisco in a very good position to deploy its capital. In addition, our equity investment portfolio is currently valued at over $300 million for a total firepower of over $900 million. On page 10, you may find our updated guidance for the second half of the year. As you know, after requiring our guidance for the year in March due to the uncertainties related to the pandemic, we have now reissued a new guidance. We expect GLs of between 32,000 to 35,000 in the second half of the year, with a cash margin on our royalties and streams of 95%, or an annual daily guidance of 63,500 ounces to 65,500 ounces. It's good to know that CO3 will be slightly impacted, again, by the reduced mining DVDs, In Q2, as some of our royalties are delivered with a delay of one to three months, we expect the situation to be pulled back to normal in Q4 to benefit from this exceptional low price. Back to you, Sean.

Thank you very much, Fred. And, you know, I just wanted to give a snapshot of your company, the shareholders own this company, and things are going exceptionally well. I think in terms of where we are from an asset standpoint, obviously from a share performance standpoint, we have some ground to make up, but the fundamentals of the company remain exceptionally solid in a space that's very difficult. In the next slide, we'll show you the quality of our portfolio, over 135 royalties and streams, precious metal optics, diversified cash flow from 16 producing assets, 91%. going to 95%, uh, cashflow operating, uh, margins in terms of, you know, most of our, our assets are in royalties. So we don't, uh, we don't have margin compression the way that others do. Uh, and that sort of, I think distinguishes the portfolio, uh, from a lot of other things. It is a dominantly royalty portfolio as opposed to a streaming portfolio, uh, page 12, you know, quality of investments. I mean, we've, uh, You know, we've done a lot in terms of making sure that we had quality. Our dividend sits at 1.5%, which is the best in the space. As you can see here, Wheaton and Royal and Franco are all at 1% or less, whereas we're at 1.5%. So, you know, we do offer, you know, kind of a wait-and-see aptitude, and I think, obviously, an increased gold price. We have a leverage to a... a significant amount of growth assets in our portfolio. As we always said, we were a strong growth company with our accelerator model. So we're well leveraged to take advantage of this gold price as we move further into it. You know, a significant undervalued amount there in terms of the re-rate. It's surprising to me that we haven't seen the re-rate yet, but for those who come in now, I think that the re-rate is fairly imminent as as this gold price persists and we see what the actual upside of the Cisco can be here. In terms of our trading, we've been highly liquid stock at over $18.5 million a day. The balance sheet, over $202 million of cash on the balance sheet, over $900 million of finance capacity, if you include our available debt capacity and our equity book. We sit with one of the biggest dry powder companies fire you know the ability to fire capabilities of all the wealthy companies in the world right now it's over 900 million canadian in available firepower to get going on a new transaction we do think that there are some some transactions that will happen at this price level however we've obviously built our portfolio in the past so even if nothing were to happen we see uh, quite a bit of opportunity for us. And if you look forward to page 13, um, you see that we go for about 140,000 assets of geos just on our organic growth of things that our shareholders have already financed and paid for. Um, so we have the organic growth. We don't have to reach, we don't have to stretch, uh, and we don't have to pay premiums that, uh, we've seen people paying in the space, you know, they're, they're, they're quite, uh, quite high in terms of achieving assets. Um, all we really have to do is just sit back and harvest right now. Page 14, I think, is probably the most exciting slide of this entire presentation today in terms of things that we knew about when we sold Canadian large back in 2014 that are now being documented and drilled to resource and reserve level by our partners at Agnico and Yamada. Congratulations to them on a great job in terms of you know, transitioning this project from what we always knew was it was a great open pit mine to what it looks like it may be one of the best ever underground gold mines. This is quite an exceptional, exceptional deposit. It produced 8 million ounces by the time we got there in 2003. We documented another plus 8 million ounces in the open pit. And now there's another 10 million ounces in the underground pit. So this is ranked as one of the best gold deposits ever discovered in the world. And it continues to deliver value for both the Agnico and Yamada shareholders and also the Cisco shareholders. And we congratulate them on a job well done. And we look forward to seeing the underground delivered here. We haven't really seen it calculated in our share price. but we think it's high time that everybody understands that the Mallardic Underground is a significant contributor to Osisko gold royalties as we move forward. And, you know, we wish our partners well on that and we want to see it come forward. And if you see, look, it's page 18, you can see that the dominantly things that are important to the new mine plan are on the Osisko 5% ground as we move forward. And we see some of the other assets, you know, that are there, you know, continue to contribute that really weren't in the calculation, I don't think, for Cisco. So that's all good news for Cisco shareholders. And, you know, we look forward to seeing the evolution of that mine, the underground transition. Obviously, at these gold prices, I think that everybody being incentivized to move forward quickly. The next slide that we have here shows the Eagle project. Obviously, you know, on target for ramping up to 220,000 ounces a year, for which we have a 5% royalty on. We continue to be, you know, have a size scale royalty on our Eleanor mine in Quebec and Manteau has been seen an increase as well. And congratulations to John Brzezinski and the Osisko mining team in terms of success that they've enjoyed at Windfall Lake in Quebec with the You know, just a massive discovery there with over 5 million ounces of high-grade ounces at plus 8 grams. And continued to drill there with over 30 drills on site as we speak today. So, you know, just a knock it out of the park success there. Let's go over all these shareholders. This is obviously, you know, shows why our accelerator model is important. You know, we backed John at the very beginning of this process. And we were able to achieve exceptional numbers in terms of what we ended up paying for the royalty. But the reality is we took the risk early on. And our model, I think, is proven beyond a shadow of a doubt by Windfall and Hermosa, where we've taken these risks and these bets early on. And we just had exceptional returns. And they're so much better than anybody else's royalty and streaming deals in the space that It's hard to argue that we wouldn't want to continue on with that business with the returns on some of these deals being in the thousands of percent as opposed to the 1% or 2% returns that we're seeing currently go off in the bank run processes. There's a lot of bidding going on, but not much is being accomplished in terms of net returns. We continue to believe in that model. The accelerator model is demonstrated well here, I think, by both Windfall and Hermosa. Corn 5 continues to be a significant asset that's in our portfolio. It's been undervalued. It's currently at 6 million ounces of geos in reserves, not in resources. And then on to Caribou, which has been a sort of a controversial topic within the assistance bill portfolio. Last resource update was at 4.4 million ounces. There will be an upcoming resource update This is a mining project. This is a mining camp. And we're going to give you more information on that as we get further into the year. But I can tell you that things are going extremely well at Caribou. And the drill results are starting to build a case to confirm what we always believe, which is this is not just a mining project, but it's a mining camp. On to page 15, we do have a high exposure to the gold prices. We believe in terms of royalty and streaming companies that we are the purest of them all in terms of being mostly exposed to gold. A lot of other companies are sidebar to copper mines or polymetallic mines, or they have other ingredients in their cake that make them a little bit less exposed to gold. So we continue to be proud champions of the highest gold component in the space with 81% at our center. On page 20, the business plan for Cisco hasn't changed since 2014. We are allocating 25% to our earlier stage accelerating models and things like Caribou and 75%. to our sort of last money in strategy where we're bidding on things like we did with Victoria Gold. The plan hasn't changed too much. And I realize there's been a discount on the stock because of our hybrid strategy. But at the end of the day, when I look around the gold price today, I have to think that we were pretty much right on the money in terms of what we bet on. And we need to deliver those returns in the share price now. So that will be the challenge for the management team as we go forward into the fourth quarter. And as we see the summer end is to really bring it home that the hybrid model where we put that 25% of the accelerator companies. And we've seen some of these accelerator companies like Barkerville advance through the accelerator business into the development business. And we need to take advantage of that for our shareholders. So that will be the challenge for Sandy and myself as we come into the end of the year to really make sure that we transition that valuation that we've created there into the share price. In terms of opportunities, you know, we've looked at our accelerator model and we've created quite a bit of value here. I just wanted to recap for shareholders the things that we did do. You know, the incubation of a Cisco mining happened in 2015. It was an $8 million market cap. It's now $1.3 to $1.4 billion market cap. We did a Cisco metals with our friend Bob Wears. You know, that started out as a $5, $6 million market cap. It's now $70, $80 million, Falco Resources. We started that company out in 2015, really. Luke Lessard stepped in and really helped put the meat on the bones in terms of that project. It's trading at about $100 million right now, but it certainly can be bigger than that. Talos resources led by Terry Harbert, you know, really another brownfield camp in BC that's sort of seen the light of day and benefited from the tactical and structural geology that Terry brought to the team, you know, to really advance that project forward. Mineral Alamos, we saw that company go from $13 million market cap to currently $230 million. So even if you've only invested in the sidecar companies to Cisco, you've done pretty well. And we continue to be that incubation and that source of really hardcore grinder companies. incubation companies where we take an opinion on an asset, we take it and we build it. And we, you know, we get in there early and we work at heart. And that, you know, people like Chris Loader and Ruben Padilla and Terry Harbert and Bob Wares and John Brzezinski, they all bring that extra effort and that extra, you know, personality and character to these apps that, that, that we've been able to uncover as we move forward and, I'm pretty proud of what we've done in the incubation strategy. So on the final slide here today, we have the upside. We have the opportunity. We have a team, and we have the ability to acquire assets, to mobilize those assets and take them through to fruition. And, you know, I thank everybody for supporting us as a Cisco shareholder. We look forward to bringing you to the latest projects sold and you know obviously caribou will be a big part of the story as we get into the rest of the year um but also you know what john is doing with cisco mining uh terry is doing with talisker and bob is doing with cisco metals are are pretty important parts of our story as we go forward so i'd like to thank everybody for being here today and then we'll see to get to but we uh we don't think that uh If there's anything wrong here, if ever there has been a time when we are right, this is it. This is it now. So thanks to everybody, and I'll turn it over for Q&A.

Thank you. At this time, if you would like to ask a question, please press star followed by the number one on your telephone keypad. Your first question comes from George Topping from Industrial Alliance. Your line is open.

Thanks, operator. Hey, Sean, Sandeep, and everybody else. On the caribou project, Sean, are you back up and running at full speed there on the exploration and reclamation activities, et cetera?

Hello?

Hello?

One moment, please.

Hi, George. I hear you. I don't know if we lost Sean there for a moment or if he's on mute, but I'll start the answer. Hopefully he's right behind me. But yeah, good morning, George. Yeah, things are generally back up and running. We did take a bit of a hiatus to make sure that we had the least amount of footprint during the pandemic. So generally speaking, we slowed things down. And in the near term, we'll be looking to kind of get back going with respect to exploration and some of the small remedial work that we're still doing there to clean up past sites.

So are you still going to spend the $10 million for this year, you think, in the MD&A?

Look, I think there's certainly the ability to catch that back up. You know, I think, as I said, it made sense to take a bit of a hiatus just to make sure that we were protecting our employees and the community, most importantly. And, you know, there's certainly the ability to catch that back up over the next two quarters.

Hmm. Will this roll through to the permitting as well with the government being impacted?

Sorry, George, did you say whether there was an impact on the permitting from COVID? On the permitting schedule? Yeah, not as of yet. I mean, I think there's been enough buffer and redundancies in our permitting schedule that we can absorb kind of what's happened in the near term. our team has continued to work, whereas we weren't necessarily full steam at site. We've certainly been full steam ahead on the permitting side. As you can imagine, a lot of that is desktop work and engagement. So that's all been ongoing as fast as we can get it moving. So I don't think we've really suffered any delays from that perspective as of yet. And again, I think if anything, we had the ability to uh, fast track permitting the community, uh, the first nations, the government have all been very supportive and we look to kind of continue that, uh, with them. And as long as we keep acting responsibly, responsibly, we think we have the opportunity to make up ground, not necessarily lose it.

All right. Then a second question is the, uh, the diamond market. I'm interested in what you're seeing there, uh, with respect to diamond sales and, um, and pricing, obviously, for the Renard diamonds.

Yeah, obviously, Renard remains on care and maintenance. The diamond market was completely busted through this COVID piece. We're starting to see signs of life just broadly on the diamond side. There are more sales kind of coming about. Some have already transpired. We've seen a small uptick on that side, but I think it's fair to say that we're not – We're not out of the woods there from a diamond price perspective, nor is anyone in the sector. But we have seen some moderate improvement. I think from a retail perspective, again, we're not back to pre-COVID levels, but there are positive signs out there that things are returning to normal, if you will. And so I think we'll be cautious and we'll look to see some moderate improvement. But we've got a very sound partnership that's involved with the Renard Mines. It is a good mine. There's a billion dollars of good infrastructure that was spent there. It's really just missing a little bit of joy from a diamond market perspective. But we certainly hope, you know, the guidance we put out today does not reflect Renard, just given the continued uncertainty from a diamond price perspective. But we certainly hope that Renard will come back into the fold for us. And I think the partnership is working on ways to do that and going forward.

The commodity specialists that you speak to, are they predicting a price in, say, the next 12 months or so at a level where you might reopen the runoff?

Yeah, look, I think there's certainly that ability. I think it remains to be seen. Obviously, it's not the... opaque market to have to operate within from a pricing perspective. I think the sales that are coming up now, some of the ones that have already happened, some of the ones that are coming up soon will be pretty telling. And you can imagine we're keeping a close eye on that. In the meantime, I think the mine has been doing everything they can to bring their own cost structure down so that they can bridge that gap, not necessarily through diamond prices, but also through just being more efficient at everything we do. So look, I think As I said, a lot remains to be seen there, but we are cautiously optimistic that with just a little bit of improvement on the diamond side, there might be a restart there in our future.

George, maybe I'll just add a little bit of color to that. As you and I know, we've been around for a while. It's never as good or as bad as everybody likes to think it is. I think the diamond market, we're seeing a lot of smart people are going back and doing assets in the diamond space. So I'm cautiously optimistic all the way around on the diamonds. All right. Great. I'll pass it on.

I'm taking enough time. Thank you.

Your next question comes from John Tumazos from Very Independent Research. Your line is open.

Thank you. Congratulations on the better price environment. Maybe people will understand and embrace the incubator model now. I'm trying to throw you a cream puff.

Well, John, we certainly hope your enthusiasm is shared.

I'm trying to throw you a cream puff without being too difficult. Maybe people don't understand the value of caribou or how smart it was to buy Barkerville late last year. What is the highest offer you've turned down for Caribou? Or what is the lowest you'd sell it for? It looks like it's a big paycheck.

You're putting me on the spot on a lot of fronts here, but I will say that Caribou has continued to deliver, not just obviously from the gold price change, but we've had significant success at the drill bit on that project. And we're, we're going to be coming back to the market to tell you about that here in the next, uh, in the next short while. Um, but obviously we bought a, you know, it was a 4.6 million ounce deposit at $1,300 gold. And we're now dealing with $2,000 gold. Um, so, you know, we don't, uh, We don't claim that we're too smart, but we're smart enough to recognize that this was an asset unlike others. It's not just a mine deposit that we've identified. The overall resource that we're dealing with there is only in the first four kilometers, and we have 83 kilometers to deal with. So we kind of feel that we had to take the hit that we took, and there was a lot of punishment that was dealt. on the share price for that, but hopefully we'll see some reward as we come back and we demonstrate the strength of this asset and the fact that it's not just a deposit, but it's actually a mining camp. So we've got our work to do, John, and we've said no to quite a few corporates and there's a lot of discussion around it because the number of deposits that can actually go to 5 million ounces of mineable in the world is quite slim, and Barkerville is a camp, and we see upside there, you know, a single process facility with multiple mines up and down the trend as we get forward onto it. And, you know, we'll be a little more vocal about it as we come into Q3 and Q4, John, and, you know, appreciate your view and the fact that you've done the work to go and look at what Barkerville actually is.

Do you think it's reasonable to expect the payday to be over US 500 million with the first 500 million tax shielded?

I don't like to put numbers like that out there without having a lawyer and accountant sign off on them, John. But certainly, you know, we see here in a PA study that we did last year, a couple hundred thousand ounces a year. With all outstanding costs being below 800, sort of in the mid, you know, high 700s, this thing is worth a ton of money.

Congratulations and thank you. Thank you, John.

Your next question comes from Carrie Smith from Haywood Securities. Your line is open.

Thanks, operator. Sean or Sandy, just on Carrable, you were going to provide an update sometime later this year on that asset. Will the resource update come as part of that disclosure, or is that going to come out earlier?

You know, Kerry, I think where we are on it right now is that everybody's been so negative on the asset. We've been a little hesitant to get out there, but our work is being done, and we're going from four to ten drills. on the project as we speak. And as we get more comfort in terms of delivering, not just a resource update, but a reserve update, we'll come back to you. But, you know, I was suspected to be in Q4. Okay.

So it'll all come at the same time then.

Okay. That's great.

Thank you, Sean.

Gary, we're going to deliver a bulletproof resource. We don't really want anybody else poking at this thing. We know the asset's solid and we just want to make sure that we deliver the proper product. Okay, I got you. Thank you.

As a reminder, if you'd like to ask a question, please press star followed by the number one. Your next question comes from Jeremy Hoy from Canaccord Genuity. Your line is open.

Hi, thanks for taking my question. I think a lot of my questions have been answered. Actually, they were all surrounding Caribou and Barkerville. just related to next steps in the back half of the year. You guys have a resource and reserve update coming. Anything else going on with that project? You mentioned increased exploration as well.

Yeah, absolutely. Mr. Loader and Maggie have taken it amongst themselves to go out and get us 28 new drill targets. So we will be hitting those targets on a priority basis. outside of our infill drilling. And yeah, it's been very exciting times at Barkerville. And I hope that everybody will be impressed when we come forth with the information. But given the reaction we've had at Barkerville in the past, we're not going to come out until we actually have a final product for you. So it will be fourth quarter information. And we will make sure that everything is drilled beyond the shadow of a doubt before we show it to anybody, just based on previous reactions to that asset in terms of where it sits. We think that metallurgically, mining-wise, permit-wise, that we've been able to de-risk the asset significantly. But we're going to come forth at the same time with that information probably more in the Q4.

I appreciate that. Thank you.

As a reminder, if you'd like to ask a question, please press star followed by the number one. Your next question comes from Adrian Day from Asset Management. Your line is open.

Oh, thank you. Just a quick question. Listen, I may have missed it completely, but with the Malartic Underground, did you in the end have to make any concessions on the royalty?

Adrian, thank you for the question. The answer is no. The question that was being served up in the marketplace to shareholders previously was whether the royalty was making as much money as the rest of the mining group was at $1,200 or $1,300 gold price. I think that that discussion has ended. We're obviously well north of $1,200 to $1,300 gold. We have no intention to make any concessions now. Um, and there's been a bit of a discount on the Cisco share price, anticipating that, uh, that we would be making a concession on that, uh, on that royalty, but we have no intentions to do so. And obviously at $2,000 gold, it's not really even, even a relevant discussion that we would entertain.

Super. Thank you. Thank you.

We have no further questions. I'd like to turn the call back over to the presenters for their closing remarks.

So I'd like to thank everybody on the call today, and we appreciate it. Cisco has been a growth company, and we've had the lumps and bruises going through the marketplace as we built that growth portfolio. But obviously, I think that multiplied by the current commodity price that the risks that we took in building this portfolio over the last five years is paying off for us now, and I encourage our Cisco shareholders to be loud and proud about their persistence and their participation with us as we went through this asset building program. And I'll sign off there. And thanks, everybody.

This concludes today's conference call. Thank you for your participation. You may now disconnect.