OR Royalties Inc.

Good morning, ladies and gentlemen, and welcome to the Osisko Gold Royalties Q1 2024 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 one on your telephone keypad. Please note that this call is being recorded today, May 9, 2024, at 10 a.m. Eastern Time. Today on the call, we have Mr. Jason Atu, President and Chief Executive Officer. Mr. Frédéric Ruel, Chief Financial Officer, and Vice President, Finance, Heather Taylor, Vice President, Sustainability and Communications, and Mr. Ian Farmer, Vice President, Corporate Development. I would now like to turn the meeting over to our host for today's call, Mr. Jason O'Toole. Bonjour, Mesdames et Messieurs, et bienvenue à l'appel conférence des résultats du premier trimestre de l'année 2024 de Redouvrance Horifère Ossisqué Limité. 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. Veuillez prendre note que cet appel est enregistré aujourd'hui le 9 mai, 24 à 10 heures de l'Est. Nous avons sur l'appel aujourd'hui M. Jason Latou, Président et Chef de la Direction, M. Frédéric Ruel, Chef de la Direction Financière et Vice-Président Finance, and Mr. Ian Farmer, Vice President, Development, Corporative, and Heather Taylor, Vice President, Development, Durable, and Communication. I would now like to give the floor to your host, Mr. Jason Attu.

Good morning, everybody, and thanks for being on today's call. I'm Jason Attu, President and CEO of Cisco Group Graphics. Procedurally, I, along with Heather Taylor, will run you through the presentation, and then we'll subsequently open up the line for questions. For those participating online via the webcast, you can submit your questions in advance through the webcast platform. Today's presentation will also be available and downloadable online through our corporate website. Please note there are four looking statements in this presentation from which actual results may differ. Also, please note the basis of the presentation will be in Canadian colors or otherwise noted. I'm joined on the call this morning by Frederick Ruel, the company's VP Finance and Chief Financial Officer, and Heather Taylor, Vice President of Sustainability and Communications, amongst the others as indicated on slide three. Slide four, when looking at a fiscal's first three months of 2024, we are off to a predictable start as it relates to gold equivalent ounces earned, cash margins, cash flows, as well as overall debt reduction. Cisco earned $22,259 geos in the first quarter of 2024, which puts us on track to achieve our previously published full-year 2024 guidance of between $82,000 and $92,000 gold equivalent ounces. Revenues for the period were strong in Q1 at $60.8 million. Even though gold and silver prices in Q1 were a little less, with average realized prices of U.S. $2,073 and U.S. effectively, the precious metals complex only saw a real appreciation after our last sales concluded for the quarter. In other words, today's spot gold price was approximately $250 higher than a realized price over Q1. In addition, Ascisco's cash margins were 97% in the quarter. This is just shy of the company's record quarterly cash margin of 98% in the third quarter of 2017. Ascisco ended the first quarter $70.6 million in cash and net debt of just over $8 million after the company continued to pay down its revolving credit facility during this period. So far in Q2, the company has repaid an additional $18.6 million on the facility, further increasing the financial flexibility in order to be able to transact a new accretive opportunity as they present themselves. With respect to our ongoing commitment to return capital to shareholders, the company 36 consecutive dividends with over $279 million returned to shareholders to date from these distributions. Subsequent to the quarter, the System Board of Directors approved an 8% increase to the base quarterly dividend to $0.065 for common shares tabled on July 15, 2024 to shareholders of record as of close of business on June 28, 2020, 2024. This is a testament to the tremendous confidence we have in the consistency and the predictability of the cash flows underpinning our business. With respect to our opportunity set, the company's pipeline continues to remain robust, with our corporate development team busier than they have ever been. We remain optimistic that we'll get at least one, but possibly two, meaningful transactions across the line this year. Finally, report, Growing Responsibly. And I'd like to bring on Heather Taylor to talk about this key achievement in more detail. Heather?

Thanks, Jason, and thank you to everyone who's taken the time to join us today. Subsequent to the quarter, we published the fourth edition of our sustainability report, Growing Responsibly, as Jason mentioned. It's guided by the highest standards set by DRI, SAGD and IFRS climate-related disclosures. This publication marks another year of substantial progress made with respect to our governance, environmental, and social initiatives. I invite you to explore our achievements in greater detail in the report, which is posted on our website. Starting with governance, this past year has seen Osisko make significant strides. We've enhanced the leadership of our board by appointing an independent chair, reinforcing our commitment to robust oversight and accountability. We've also maintained our commitment to diversity, with women continuing to make up over 30% of our board members. The integration of my now not-so-new role as Vice President of Sustainability and Communications ensures that we have a dedicated individual focusing on our ESG initiatives and continuing to drive these forward. On the environmental side, supporting Osisko's mandate to align capital allocations with ESG principles We formalized our investment due diligence process by developing an ESG screening and monitoring tool. The tool is aligned with industry-leading practices and allows us to assess the ESG performance of potential assets and mining partners across multiple topics, prior to investing and subsequent monitoring post-capital deployment. In our commitment to address climate-related challenges, we conducted scenario analysis to gauge the exposure of key assets to climate-related risk and opportunities. This analysis helps inform the development of an inaugural climate change strategy for the 2024 to 2027 timeframe. We also enhanced their transparency in reporting scope three emissions and have entirely offset the company's 2023 office-based emissions with the purchase of high-quality carbon credits. Lastly, on the social front, We have deepened our commitment to our employees and the communities we impact. We implemented comprehensive training focused on diversity, equity, and inclusion, health and safety, and human rights. Additionally, our teams have actively participated in volunteering events that support and uplift our local communities. We deployed over $325,000 towards community donations aligned with our newly formalized community investment guidelines. Our efforts have been recognized externally, with Osisko receiving a AA rating from MSCI and high rankings from Sustainalytics, including top-rated regional and industry badges. These achievements we should be immensely proud of. These accomplishments reflect our strong performance relative to precious metal peers and underscore our dedication to leading ESG practices. As we look to the future, our commitment remains firm. We will continue to integrate ESG principles across the organization and into our corporate strategy, ensuring that our actions benefit not only our shareholders, but also the broader communities and environments in which we conduct business. With that, I'll pass it back to Jason.

Thanks, Heather. We now pivot to the company's financial performance for Q1. Quarterly revenues effectively track higher year-over-year commodity price. in comparing to Q1 2023, which was also partially offset by less than equivalent ounces versus the same period last year. The decrease in Q1 2024 was due to the stoppage of operations of Renard Diamond Mines at the end of 2023. Net earnings of $0.08 per basic common share for the period represented a modest decline versus the first quarter of 2023. However, this delta largely reflects a non-cash share of loss and modest non-cash foreign exchange loss during the period. Most importantly though, Q1 2024 saw a year-over-year improvement in both cash flow per share as well as quarterly adjusted earnings of 16 cents per basic common share. During the first quarter of 2024, the company had 19 producing assets. Our GEOs earned come predominantly from Canada, and we derived over 95% of our gold equivalent ounces from precious metals. Gold is just under 71%, and silver at 25%, with the remainder coming from other metals. As I noted previously, the recent shutdown of Bernard, diamonds will no longer be contributed to Asisco's GEO firms going forward. with the first material contribution coming from the CSA copper stream for the effective date of that copper stream is June 15th of this year. Some comments on specific mine performances during the quarter, or speaking about a couple of more material assets in greater detail. The Canadian Malarctic had yet another impressive start to the year, with a unique booking record quarterly production from the mine. The asset remains the system's most important contributors, or geo-turned by a solid, solid margin. Performance from Victoria Gold's Eagle mine during the first quarter of 2024 fell somewhat short of the budgeted expectations. Victoria noted, however, the gold production in Q1 2024 was lowered year over year due to lower rates related to mine sequencing of the Eagle ore body, the timing of placing stack tons underneath, and lower planned stacking rates in Q4 2023. to 185,000 ounces, the summer and fall season typically being the mine's strongest operating period. Performance from Capstone's Mantos-Lancos operation, where milling rates continue to lag phase one expansion sign levels, was effectively flat versus the prior period in Q4 2023. The typical will continue to monitor Mantos' performance through 2022. 2024 resolution of the plant issues following the delivery in June 2024 installation of new pumping announced growth in 2025 versus 2024. As I mentioned earlier, the number of currently producing assets in our portfolio stands at 19. We anticipate this number to increase by two production assets in the second half, as we expect both Mandini and Tocantinsino projects to be pouring gold before the end of the year, in addition to the start of the CSA Copper Spring. Moving to the next slide. While we've spoken to this slide an innumerate number of times, I think it remains as relevant today as ever, as our company continues to distinguish itself from the rest of its relevant peers in the subsector as it relates to jurisdictional exposure. ASISCO is the leader when it comes to both net asset value and gold equivalent ounces earned from what ASISCO defines as Tier 1 mining jurisdictions, which include Canada, the United States, and Australia. Of note is that if we were to add Chile to that list of countries, we would be by over 95%. In terms of Canadian malarctic, the mine realized record quarterly gold production driven by higher tonnage and gold rates thanks to contributions from the Odyssey Underground. More specifically, ramp development continues to exceed targets, reaching the first production levels of East Gould in February 2024 and at a depth at the end of March. Shaft sinking improved during the quarter with an average sinking rate of 2.4 meters per day. The temporary loading pocket previously planned at level 102 will now be built at level 64, which is expected to provide hoisting capacity by mid 2025, six months earlier than previously planned and will provide added development and production flexibility. We were obviously also delighted to hear our operating partner continues to make reference plans around a potential second shaft in the Odyssey Underground. A story to stay tuned to. Within the next slide on CSA, just a few weeks ago, our operating partners at Metals Acquisition Corps announced an updated mineral reserve and resource statement based on drilling completed at CSA only up to the end of August 2023. Highlights included a 57% increase in mine life to 11 years, in other words, to the end of 2034, based on mineral reserves only, compared to a six-year reserve mine life outlined previously. The updated mineral reserves only extend 95 meters vertically below the current decline position, and Metals Acquisition Corp. has continued to drill beyond the August 2023 cutoff date. So we clearly expect that there is more to come from this team in relative near term. Recall that exploration away from the known deposits, and there is clear potential to further optimize metal acquisition for April 2024 life of mine production plan. Exploration in the top 850 meters of the deposit is just starting, and initial results highlight strong potential to open additional mining fronts. Moving to the next slide, Island Medino. In late March 2024, Alamos announced a friendly acquisition of Argonaut Gold, and its Maginot Gold mine and mill, located immediately adjacent to Island Gold. This transaction is expected to close in Q3 2024. The Pre-Eastward Plan's phase three mill expansion construction work at Island will no longer be required following the announced acquisition of the 10,000 tonne per day Maginot mill, which is located approximately two kilometres from the Island Gold shaft. The larger mill and tailings infrastructure at Maginot will now accommodate the rapidly growing mineral reserves and resource base at Island Gold. The expanded and accelerated mine plan is also anticipated to transition a greater proportion of production towards assistive 2% and 3% NSR royalty boundaries earlier in the mine plan, as opposed to the mineral inventory covered by assistive 1.38% NSR royalty. In addition, a small fraction of the eastern limits of the Nagino pit is covered by a 3% The underground exploration potential previously highlighted by Argonine Gold on this plane is located less than 300 metres from the existing Island Gold underground infrastructure. Moving to our guidance and growth. After the first quarter, as previously noted, the company remains on solid footing with respect to being able to achieve its previously published 2024 geo-delivery guidance, especially being the CSA Copper, Streams, Tocantinsino, and Nandini. While this year's guidance number was always going to represent a modest step-down versus last year's, it is worth reminding everyone that with Renard no longer in the picture, cash margins have increased. And given the write-downs that have already taken place in the assets, tax pools have been created, so the fiscal is not expected to be taxable in Canada for 2024. Unsurprisingly, at this point in time, the company's five-year output for 2028 published in mid-February remains unchanged, as we remain very confident that both the expansion and our development assets will fuel the 35% peer-leading growth with no continued capital or any capital calls required. Moving to our catalyst slide, underpinning this updated growth profile is a long list of near-term catalysts. that we provided on slides 14 and 15. We've already discussed many of these already on previous slides on this presentation, so no need for me to add anything further here today. That said, I would still suggest you take the time to go through this impressive list yourself. And if you have any questions or would like to discuss further any of the remaining light items highlighted on these two pages, I encourage you to reach out to my colleagues here at ASISGO for more information. Turning to the balance sheet, finally, we'll end the formal part of the presentation on slide 16, which outlines the current state of the Cisco balance sheet. At quarter end, we had a total debt of just over $150 million, a net debt of only approximately $80 million. As we stated previously, the covenant performance was exceptionally strong with a 97% cash margin experience in the first quarter of 2024 expected to continue throughout the year. As noted previously on this call, and noted as a subsequent event in our MD&A, we've now also repaid an additional $18.6 million against our revolver credit facility, further strengthening our financial division, which, by the way, has extended the facility for another four years. In addition, if commodity prices, specifically gold and silver, sit above U.S. $2,300 and U.S. $2,700, respectively, or 25 respectively, we forecast to end up in a net cash position at the beginning of the fourth quarter of 2024. No significant deals are closed by that time. This is important as Cisco doesn't expect to sit on its hands in 2024. And our much improved balance sheet provides the company with the financial capacity and flexibility to continue its strategy of disciplined allocation in the pursuit of high-quality that will bolster the company's current near-term geo-deliveries and cash flows that should accrue to our shareholders' benefits. And with that, I'd like to thank everyone for listening today. We'll now open up the line for questions, as well as questions posted on the webcast. If we don't get to all the questions on the line, we will make sure to respond offline to those that we don't cover on this webcast. Operator?

Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press star followed by the one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the two. If you are using a speakerphone, please lift the hands up before pressing any keys. Your first question comes from Ralph Profiti with a capital. Your line is now open.

Thanks, operator. Good morning. Jason, thanks for taking my question. Two of them, please. Firstly, the degree to which you can, you know, without giving away too much, you mentioned one to two transactions, you know, hopefully be able to close this year. You know, can we get sort of a broad range of the sizes of that you're looking at? And maybe more importantly, whether or not these are sort of competitive processes or are you leveraging existing or new relationships where we would consider these opportunities more exclusive?

Thank you, Ralph. Very good question. And obviously, we'd love to give you more information on the opportunity set that we have. But obviously, there's a lot of confidentiality associated with respect to the opportunity set and the size of the ticket or the size of the transaction. Again, it varies, obviously, due to the transactions that we're looking at. say is, again, the team is very much focused and have the team very focused on a smaller number of high-convection bets that, again, we're hopeful that we can get one or two transactions announced by the end of the year. And transaction size, you can think of anywhere between $50 million up to $300 billion U.S. That's what we're essentially looking at. In terms of the competition, it is still a very, very competitive process, but competitive and environmental, I think you can appreciate. We've got a lot of peers as well as the private equity groups that participate in those processes. We do have some very strong relationships, though, and so we're also moving forward with a number of bilateral type transactions that are outside of any sort of process. But any more detail that we can provide you, Ralph, you know, obviously we've been preaching confidentiality. We're very excited to hopefully, again, be able to announce one or two of these by year-end, and then you can analyze this in terms of what the overall returns are because we'll be incredibly disciplined to ensure that either accretive deals and accretion will accrue to our shareholders.

Yes, certainly. I appreciate that. But very helpful comments. And then secondly, I wanted to break down the incremental benefit at Island Gold with Magino. And just, you know, can we quantify sort of bringing forward not only, you know, the actual production by not having to bring in that mill, but also, you know, the encroachment on the more advantageous 2% to 3% NSR. And, you know, if you're running at sort of 5,000 ounces gold equivalent, just wondering if you can quantify, say, over the guidance period, whether or not we're going to see any incremental GEOs from that.

Well, thank you, Rob. I'll start and ask you to provide some of his expertise around the technical nature of the asset. I would say his first comment is the transaction has not closed as of yet. And obviously the best source of information when it does close is with respect to the Alamos team. Obviously the proximity of the two assets time. What we're obviously excited is obviously you have an operator that's moving into taking over an asset and specifically it's all about mill optimization. As I think you know, that's got a deep set of experience in terms of both operational acumen but very deep balance sheet as well. So again, we're quite excited about the transaction. We do think that it's going to be beneficial for our royalties both at the Island Gold as well as the Geno over time. But I'll ask me to comment if he has anything further.

Yeah, sure. If you look at the most recent disclosure by Alamos, you'll see just naturally where the center of gravity of the mining is going towards the edges of where they've been recently. And that, in general, you can see that as going towards the 2% and 3%. The Maginot acquisition or potential acquisition doesn't really change any part of that plan. The thing that it does do is de-risk some of the construction that was required, the mill expansion, tailing facilities. And so that's, you know, if the acquisition goes through, then those items are de-risked. And then the other portion is below that pit. And you'd have to go back a couple of years to see some of the Argonaut disclosure on underground drilling that were really quite spectacular intersections. And those were not necessarily orphaned, but a lot less accessible, except for now in the hands of Alamos, it's a lot easier for them to drift over and further test those and see if they're economic and make sense to bring into the life of mine plan earlier. But that's, yeah, it's hard to quantify what that could look like.

All right. Helpful. Thanks, Jason. Thanks, Guy. Thank you, Ralph.

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

Thanks, operator. Jason, just two questions. Firstly, what is your sort of targeted debt level that you'd like to run with for the company? You keep paying it down pretty aggressively and you're generating $45 to $50 million a quarter of cash flow. So the debt's pretty modest in that context. I'm just wondering if you have a target number there.

In your second question, Carrie?

Okay. And my second question is, how is the agreement structured on the yellow most royalty in terms of how you actually figure out what your payable ounces will be from the island tonnage? Because the recoveries from Regina will be considerably lower than the recoveries they'll get from the island or just by virtue of the grade. I'm just wondering how you monitor that.

Thank you, Carrie. And so the way we think through things in terms of a net debt to EBITDA level, I would suggest that we can do producing assets. And it really, again, depends on the type of transaction that is done. Because if you're doing a transaction that gives you immediate cash flow, it's obviously better. But the general rule of thumb, Kerry, we don't want it to be for any long period of time beyond a net debt to EBITDA. do that, but generally speaking, rule of thumb of the management team, we think it's certainly a fees commodity crisis. Two times net debt to EBITDA would effectively then we'd be back into, as we have been over the clock course of the last 12, 18 months, just repaying that facility down to cash flow or repaying it back through another net.

Yeah, so the distribution of ounces on the relative coverage, we can have a separate conversation if you want to reach out. But there are clues in the most recent technical report in terms of the royalty percentage with time in some of the graphs that they provide. And with respect to the recovery of the Island Gold ores that would go into the Maginot mill, if you listen to the conference call that were given by Alamos following the announcement of the transaction, this was raised on those calls. The process, the specific process they use at Maginot and at the Island Gold mill are the same. The expectation is that the recovery will be equal. And I expect that Alamos will be highly sensitive to any gold loss, especially if you look at the differential and grades there. They'll be very sensitive and they'll always have, well, for the beginning period anyway, they'll have the opportunity to run test scenarios and run some of the mill throughput through the existing mill there. So, yeah, I'm not, we're not concerned about that scenario.

Okay. Okay. Thank you. Thank you, Gary.

The next question comes from John Tomasos from John Tomasos, Very Independent Research. Your line is now open.

Thank you very much and congratulations on all the progress on so many fronts. I was sort of brainstorming and I was thinking it would be an interesting package to put up for sale. If you were to bundle all of the Osisko legacy royalties together as a package, Caribou, Tintic, Horn 5, Falco, Windfall, and the 39.6% of OTV, and sell it as a block is an asset package. It's a nice North American package, a lot of good Canadian gold. And the proceeds would probably all book straight to equity because they're assets that you didn't pay much for that probably aren't on your books for very much, would probably all be tax free. because you have some accumulated losses. And it would improve the perceptions in the market. And we wouldn't have any more equity losses from ODV. What do you think of that, Jason? Would that be a nice way to pay down some debt or fund the stock buyback?

John, I appreciate the comments and the color and obviously a very interesting concept. What I would say, however, With all the assets that you mentioned, there are obviously some, we really do believe that there's, you know, the royalties, and it's so tough in the competitive market to actually acquire royalties, but these are some very, very good royalties that we think from a shareholder perspective, which I know you are one, it's much better for us to remain in our portfolio. As I think you're aware, it's very, very rare for royalty companies, streaming companies, and specifically funneling all the ones that you mentioned, I would argue in this marketplace that we wouldn't get the same value if we just patient and wait until these assets do come on and start generating some very good gold equivalent ounces in the fullness of time. But I appreciate the comments. Again, we are very supportive of obviously all that our reciprocal royalty shareholders will accrue the benefit for more so than if we were to simply monetize it as we suggest today.

Thank you.

Ladies and gentlemen, as a reminder, should you have a question, please press star one. Your next question comes from Tanya Jakusunak. Your line is now open.

Great. Thank you. Good morning, everyone. I just wanted to come back to Rob's question on the transactions that are out there and the one to two that you've talked about that can potentially be done this year, Jason. I'm trying to understand whether it's similar to other deals in the markets, which are either to fund the mine bills, to help buy out some of these new crest sold assets and or other by newmont so first of all or is it balance sheet repair like i'm trying to understand um what sort of you know deal um semantics they are yeah thanks for your question and again kind of the same overriding comment with ralph obviously all the conversations that we're in are

With respect to the type of transactions, though, and you probably, you're aware that Q1 was a very quiet period for any sort of transactions by basically the whole subsector, the whole sector of royalties and streams. There were really nothing material, as you know. And so in terms of the type of transactions that we're looking at, you're absolutely on point. It's transactions for which senior companies are selling assets and mid-tiers are effectively looking at this financing possibility or vehicle to essentially get the funds to bring that into their portfolio that hopefully will improve the portfolio. There are very few, I would say, opportunities with respect to balance sheet repair at this point. Typically, again, if the assets aren't supporting what they're doing currently, unless they have a large portfolio with one asset that's materially better than the others. And then we obviously need to structure it to ensure that our interests are protected if we're assisting with one of the lesser assets. So we're not really looking and working on anything with respect to balance sheet repair. It's more on companies either acquiring good assets that for the most part are production and or some very high quality development assets that will come into production within our five-year outlook with very, very competent teams, management teams and very good jurisdiction. I think that's all I can say for now, Tanya.

Okay, that's fair enough. And maybe, Jason, would you be interested in, let's say, some of the bigger size deals that may be syndicated? Would that be of interest to you? if you were syndicated in that 60 to 300 million range that you talked about?

It's always of interest to us being the fourth to fifth largest company in terms of public companies, royalty companies out there. Again, we have deep relationships with all our peers, so it's always of interest to do something. As you can appreciate, though, there haven't been that many transactions of that sort or nature that's been done in the past. or for the reasons of, again, if you have a high-quality asset, obviously you want to do a transaction that accrues to your shareholders as opposed to, you know, keep sharing the economics with others. That said, we do have conversations. We do like the concept. We're open to that concept, and we'll see where it goes.

Okay. And then my last question on these transactions. You know, are we looking at sort of your transaction being very simple in structure, i.e., a royalty or a stream, or should we be thinking that they would be more complicated with equity investments and or debt components?

Yeah, that's a great question, Fanny. I would say every opportunity we look at is quite bespoke. There's obviously a set of needs for the partner or the indemnity company that we're looking And so we really do focus on the strength of the company, the cash flow of that company, and try to be quite bespoke with respect to how we can assist, whether it's royalty stream equity. We do shy away from the debt piece, though. That's not really what we consider part of our business. It's nothing that we've contemplated to date. And I would say right now, with the opportunities that we have in front of us, it's nothing that we're going to contemplate in the very near term.

Okay, that's very helpful. Thank you so much and good luck.

Thanks, Tanya.

Your next question comes from Brian MacArthur with Raymond James. Your line is now open.

Thank you for taking my questions. Just following up on Tanya's question, though, I mean, people talk about these $300 million and $400 million deals. Can we assume, though, the majority of that price will be streaming or royalties. I mean, if half of it becomes equity all the time, aren't we getting back into the situation we had before where, you know, the royalty companies own portfolios, but you're probably not going to get the same credit for it?

So thanks, Brian, for the comment. Like I can only comment on, again, the strategy and how we're going to execute our business. I can't speak for obviously our peers and our competitors. What I can tell you is the general point in terms of how we look at things, we do not want to be portfolio managers of equity positions go forward. We will, as I've said in the past, you know, in certain circumstances for which financing is quite bespoke and it's the last capital in with respect to the equity check, similar to what we did with the CSA transactions that was required for them to acquire the asset from Glencore. can be portfolio managers that effectively have an equity book. So it's essentially, again, as we think about from an assistive royalty perspective, the priorities in terms of funding, certainly royalty streams economic interest would be first and foremost, but if some equity is required and it's got to be right size, that really assists with a catalyzing event, either being an acquisition or for something,

than we have we'll very likely do that in the future great thank you for that color that's very helpful second question is just i know you mentioned renard and you know it's been taken out but it you know winsome potentially has a call option to to buy this thing and maybe in the future it comes back do you have any other i mean at times you've lent money into them and Do you have anything else that comes back? I mean, if this deal were to close and went forward, would the only thing you have be the 9.6% diamond stream, or is there other claims you might have on some of that money that they put into acquiring Renard if that transaction goes through? Thank you.

Thanks, Brian.

Excellent question.

I'm going to turn it over to Ian. Ian is on the board of Runaway. He's been living this experience for the last 24 months. he's probably the best person to comment. Go ahead, Mr. Renard.

Yeah, great question. Thanks. Look, in all likelihood, if that Winsome transaction materializes, the stream will be vested as part of that transaction, and the only proceeds will be the Winsome consideration being the cash or the share of Winsome.

Great. Thanks very much for taking my questions. Thank you, Brian.

There are no further questions at this time. I will now turn the call over to Jason.

Thank you very much, Operator. Again, this concludes our call. Thank you for your attention today and listening to our Q1 results. Have a good week, everybody.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.