OR Royalties Inc.

Good morning, ladies and gentlemen, and welcome to the Osisko Gold Royalties first quarter 2021 results conference call. After the presentation, we will conduct a question and answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad. Please note that this call is being recorded today, May 12, 2021, at 10 a.m. Eastern Time. Today on the call, we have Mr. Sandeep Singh, President and Chief Executive Officer, and Mr. Frédéric Riel, Chief Financial Officer and Vice President, Finance. I would now like to turn the meeting over to our host for today's call, Mr. Sandeep Singh. Bonjour Mesdames et Messieurs et bienvenue à l'appel conférence des résultats du premier trimestre de l'année 2021 de redevances orifères au Cisco Limited. Après la présentation, nous procéderons à une séance de questions et réponses. Si vous désirez poser une question, veuillez appuyer sur la touche étoile suivie du numéro 1. Please note that this call is recorded today, May 12, 2021, at 10 p.m. We have on the call today Mr. Sandeep Singh, President and Director-General, and Mr. Frédéric Ruel, Director-General and Vice-President of Finance. I would now like to give the floor to your host, Mr. Sandeep Singh. Thank you. Go ahead, sir.

Thanks very much, operator. And thanks to everyone on the line for listening in and catching up on us on what we think is a very strong start to the year with our Q1 with an asset base that continues to perform exceptionally well. I'm following a deck. I'm on currently page three. It's on our website. So if you haven't picked it up, hopefully you can follow along and we will point to slide numbers as we go through this. Again, on slide three, What I would say is, obviously, we had pre-release production numbers of nearly 20,000 geos at a 97% margin. That's quite in line with the midpoint of our guidance, which bodes well for us for the rest of the year for reasons that we'll explain as we go throughout the presentation. Records or near records on a number of key financial metrics that Fred will walk you through in a little bit more detail as well. We've also done we think and we hope a better job of segmenting the Cisco royalties business and financials and metrics from our ownership stake in Cisco development, which obviously I think most of you will know we are consolidating for the time being. I think that's important. As I don't expect many of you on the analyst side to be modeling us on a consolidated basis and hence the forecasts that are out there on us, probably not on a consolidated basis either. So hopefully that's more user-friendly and something that we'll continue to do until we no longer need to. Big catalyst that came through for us over the course of the quarter, the largest, obviously, is the IGNICO and Yamana positive construction decision on the Malartic Underground. And that story, frankly, only continues to get better since that underground development decision was made. and I'll pick up on that as well. Subsequent to the quarter, we put out our inaugural ESG report, which we are proud of. We've always been proud of our ESG and sustainability practices. What was lacking was perhaps putting them on paper. We continue to improve those practices and improve our disclosure, and that's something you'll see from us throughout the remainder of the year, as well as some unique means of offsetting our carbon footprint, including the partnership we went into with a private entity called Carbon Streaming Corp, which I'll touch on as well later in the presentation. So that's just a bit of flavor for the quarter and the financial numbers that Fred will walk you through over the next several slides. And then I'll pick up again thereafter to get into some of that detail I just promised. So Fred, if you wouldn't mind picking up on slide four, please.

Absolutely. Thank you, Sandeep. Good morning, everyone. Thank you for joining us today. Good metal prices and robust deliveries led to strong results for Cisco and Q1, as Sandeep said, including record revenues and cash margins, as well as solid operating cash flows from the royalty and stream business. Our operating cash margin on our royalties and streams reached 94%, 97% excluding revenues and cost of sales from the Renault Diamond Stream. As Sandy mentioned, we earn close to 20,000 GEOs in Q1, led by our main assets, including Canadian Malartic and Mentos. As presented on page 4 of the presentation, 75% of our GEOs were derived from gold and 23% from silver. Page 5 of the presentation, we recorded record revenues from royalties and streams of $49 million compared to $37.8 million in Q1 2020. Q1 was the first quarter where Cisco is consolidating a Cisco development results for the full quarter. And as such, we are now providing additional segment information in our financial statements, MD&A, and press release, splitting results from our royalty and stream business and results from a Cisco development. Cash flows from operating activities were $29.3 million on a consolidated basis. For the royalty and stream segment only, cash flows from operations reached $36.7 million compared to $25.7 million in Q1 of 2020. On page 6, we present a summary of our earnings and adjusted earnings. And net earnings to a Cisco's shareholders were $10.6 million or $0.06 per share compared to a net loss of $13.3 million in 2020 or $0.09 per share. On a consolidated basis, adjusted earnings were $18.4 million or $0.11 per share, which is comprised of adjusted earnings of $23.4 million or $0.14 per share from the royalty and stream segment and an adjusted loss of $5 million from a Cisco development. On page 7, we present a summary of our quarterly results with additional details for the royalty and stream segment, including gross profit in Q1 of $34.6 million compared to $21.6 million last year. The average realized gold price was $169 Canadian dollars higher compared to last year. Adjusted earnings from the royalty and stream segment were 23.4 million compared to 9.3 million last year. If we go on page eight, we present a breakdown of our cash margin for Q1. The cash margin on our royalties increased to reach 34.7 million compared to 25.6 million last year. The cash margin on our streams amounted to 11.1 million, up from 8.8 million in 2020. resulting in a cash margin on our royalties and streams of 93.6% or 96.8%, excluding the Renaud Diamond Stream. Our total cash margin in Q1 reached $46.5 million compared to $35.3 million last year. And finally, on page 9, you may find a summary of our financial position. Our consolidated cash balance was $321 million at the end of Q1, including $120 million for Cisco Gold Royalties and $201 million for Cisco Development. Cisco Gold Royalties held investments having a value of $217 million at the end of March, in addition to our investment in Cisco Development, valued at over $730 million for a total of close to $1 billion. Our total debt was stable at $400 million, with over $250 million available under our credit facility. Back to you, Sandy, for the rest of the presentation.