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.