OR Royalties Inc.

Good morning, ladies and gentlemen, and welcome to the OR Royalties Q3 2025 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 1 on your telephone keypad. Please note that this call is being recorded today, November 6, 2025, at 10 a.m. Eastern Time. I would now like to turn the meeting over to our host for today's call, Mr. Jason Etout. Bonjour, Mesdames et Messieurs, et bienvenue à la préconférence des résultats du troisième trimestre Good morning, everyone, and thanks for your attention today.

as I know it is a very busy reporting week. Procedurally, I'll run through the presentation and then we'll 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 that there are forward-looking statements in this presentation from which actual results may differ. Also, all amounts presented and discussed in today's call will be in U.S. dollars unless otherwise noted. I'm joined on the call today by Fred Ruel, the company's VP Finance and Chief Financial Officer, as well as my other colleagues as indicated on slide three. Oral royalties third quarter of 2025 was a straightforward one. With sequential quarter-over-quarter improvement with respect to GEOs earned, cash margin, cash flows, as well as our overall debt reduction. Our royalties earned 20,326 gold equivalent ounces in the third quarter, a modest 3% improvement over our second quarter of this year. Based on where we sit today, after the first nine months of the year, the company is tracking towards the midpoint of its previously published full-year 2025 gold equivalent ounce delivery guidance range of 80,000 to 88,000 geos. And this would be based on normalizing or the higher than budgeted commodity price ratios. In other words, gold, silver, copper, and gold year to date. More on this in a moment. Recall that we've been very specific, explicit about the fact that due to sequencing at some of our major producing assets, including Mentos Blancos and ongoing ramp ups at other assets like Nandini, the second half of the year was always expected to be a little bit stronger than the first half of 2025. Consequently, and at this stage, we think it's appropriate for outside observers to infer that Q4 2025 should be ore royalty's strongest quarter of the year in terms of TOs earned. And thanks to improved silver grades realized quarter to date, Mantos Blancos will be playing a key role in supporting what should be a very solid Q4 for us. Circling back on our gold equivalent ounce guidance for 2025 and commodity price ratios, It's worth noting that through September 30th, 2025, and due to the higher than budgeted gold prices versus both silver and copper over that period, Ore Royalties is tracking approximately 2,000 to 2,100 geos lower than its original budget. In other words, these geos are quote unquote lost when not normalizing for commodity price ratios. As a reminder, in February of this year, Ore Royalties applied a consensus commodity price and notably an 83 to 1 gold to silver ratio for its budgeted 2025 GEO delivery guidance. All else being equal and based on the current commodity price volatility, this number of quote unquote lost GEOs could either grow modestly or potentially get smaller before year end. The key message is that these same higher gold prices that have skewed the ratios versus their original budget affecting your GEOs earned have also more importantly translated to record revenues in cash flows from operating activities or royalties for both the third quarter and the first nine months of the year. For context, the average realized gold price for the first nine months of this year was $3,188 per ounce, which is over $900 per ounce greater from the same period last year. So as you can imagine, our shareholders should still be satisfied with the outcome associated with these year-to-date price movements. In addition, 65% of our revenues are directly derived from gold. And speaking of cash flows, we're once again happy to report cash margins for the period of just under 97% in line with our budget for the year. Our royalties ended the third quarter with $57 million in cash as of September 30th. We are in a debt-free position for the first time in over 10 years. as the company paid down the outstanding balance of its revolving credit facility during the period. And while members of our corporate development team remain extremely busy to this day, there were no major transactions announced by Orr Royalties during the third quarter outside of our second $10 million milestone payment released to SolGold. Given the ongoing progress the new management team there continues to make in advancing a new vision for Cascabel. With the rapid increase in already elevated precious metals, in addition to recent price volatility, I continue to espouse an internal culture of capital allocation discipline, where returns on new transactions must exceed our internal hurdle rates at what we believe internally to be more realistic commodity pricing scenarios, as well as contract structures that must come with the appropriate security features. Here at Orr Royalties, we have the fortunate luxury to be able to walk away from transactions that we can't work for any of these aforementioned reasons, thanks in large part to our already bought and paid for organic GEO growth profile over the next five or six years. I'll spend a little bit more time on our growth profile a little bit later. With respect to our ongoing commitment to return capital to shareholders, the company declared and paid its quarterly dividend of 5.5 cents per share in the second quarter marking its 44th consecutive dividend. Our royalties history of progressive dividend payment serves as a testament to the confidence we have in the consistency, predictability, and the anticipated growth of the current and future cash flows underpinning our business. Now moving on to the company's financial performance for Q3 25. Quarterly revenues of $71.6 million track 71% higher versus the same period last year. Again, largely thanks to the increased commodity prices and deliveries. And it also represented a quarterly record for the company. Net earnings of $0.44 per basic common share for the period also marked a very significant year-over-year improvement, thanks again to higher commodity prices and deliveries. but also in part due to the fact that as of August 2025, Orr Royalties is no longer accounting for his equity position in a Cisco development as an investment in an associate, and instead will now flow through other comprehensive income. This change in the accounting treatment of the Cisco development investment generated a non-cash gain of $54 million in the third quarter. as a result of the revaluation of a Cisco development equity investment at fair value on the date of the loss of significant influence being mid-August, which was triggered by the ODEV equity financings. Most importantly, Q3 saw sizable year-over-year improvements in both cash flow per share at $0.34 versus $0.19 in Q3 last year, as well as quarterly adjusted earnings of $0.22 per basic common share. Again, versus 11 cents in the same period last year. Next slide, please. During the third quarter of 2025, our geos earned came predominantly from Canada, and we derived approximately 95% of our geos from precious metals. The balance coming from our direct copper exposure through our copper stream at Harmony Gold's CSA copper mine in Australia. Some comments on specific mine performances during the quarter before speaking about a couple of our more material assets in greater detail. At Agnico Eagle's Canadian Malartic Complex, it had yet another solid quarter with respect to GEOs earned. A reminder that historically we've often seen strong fourth quarters at Canadian Malartic versus the other way around. And while that should bode well for a final quarter of the year, we are mindful of an announced four to five day maintenance shutdown at the mine during the fourth quarter. At Capstone Copper's Mantos Blancos operation, Q3 production saw a significant year over year jump, thanks to a couple of things. First, much improved plant throughput, still largely holding consistent and a nameplate of 20,000 tons per day. And secondly, and approximately a month's worth of improved silver grades contributing to our own third quarter stream deliveries. Recall that with the two-month stream lag, our 2025 stream delivery year for Mantos Blancos started November 1, 2025. 2024, sorry, and ends October 31, 2025. As noted, throughput levels remained at or above the mine's nameplate capacity of 20,000 tonnes per day at Mantos Blancos. And our anticipation is that Silver Grade should stay higher and in line with ORS expectations through the final month of our stream delivery year, which was the October that just ended. And also, as indicated in last week's Q3 2025 update from Capstone, the Mantos Blankos Phase 2 feasibility study is still scheduled for 2026, which we believe will be in the first half of the year. Finally, we've recently been really impressed with the ongoing successful ramp up at the Nandini mine in Ghana, which based on our geos earned and paid year to date, it is starting to hit its stride after a slower start to the calendar year. We're expecting continued improvements from Nandini going forward based on the most recent publicly available mine plan for the asset, which was the 2019 feasibility study completed by the former Cardinal Resources. to which we understand the current operator is adhering to. Moving to slide seven, and as I mentioned earlier, the number of currently producing assets in our portfolio stands at 22. And while unlikely to be included in any of our GEOs received this year, the next asset expected to be added to this list will be Remelius Resources' Della Garanga mine in Western Australia. With our partner recently having released a full integration plan, for the high-grade underground mine, which includes some modest gold production out of the mine in the first half of 2026. So likely beginning early next calendar year, more on Dela Granga a bit later. On our last call three months ago, we went out of our way to highlight the meaningful silver exposure provided by ore royalties, which through H1 2025 was just over 26%. If we recall the same chart from the previous slide, you'll have seen that silver represented over 30% of our revenues in the third quarter. Summing this all up, we are essentially flagging that ore royalties can provide lower risk, higher quality, and meaningful leverage to silver for investors that are looking for it, especially if silver prices continue to close the gap versus gold, as it has done over the past month or so. Moving on to slide eight, which many of you will have seen many times before, our company continues to set itself apart from the rest of its relevant peers in two key areas. First, as it relates to lower risk jurisdictional exposure, and second, as it relates to our peer-leading cash and gross margins. Starting with the former, just a friendly reminder that Oral Royalties is the unequivocal leader when it comes to both net asset value and gold equivalent ounces earned from what we define as Tier 1 mining jurisdictions, which include Canada, the United States, and Australia. And we would think that with the recent explicit plans outlined for the first time by Romilius regarding Dalgaranga, as well as other recent development advancements across our portfolio, this exposure could very likely grow in the near to medium term. Moving to the latter, Simply Put or Royalty's peer-leading cash margins provide our shareholders with both transparent leverage to precious metals prices as well as unmatched downside protection. Switching gears to slide 9 and focusing on our cornerstone asset, our partner Agnico Eagle provided some relevant information relating to the Canadian Mark Millartic Complex along with its Q3 2025 financial results. announced on Wednesday evening last week. As it relates to operations during the period, aggregate gold production of approximately 150,000 to 157,000 ounces in the quarter was higher than planned, primarily as a result of higher grades of the Barnett pit at Canadian Malartic. The higher gold grades at Canadian Malartic were a result of the continued mining of mineralized zones near historical underground stopes in the Barnett pit, that returned higher grades than anticipated. Flipping to slide 10, the Odyssey old underground gold production during Q3 was slightly ahead of plan at approximately 22,400 ounces driven by higher ore mined of approximately 3,634 tons per day compared to the target of 35,000 tons or 3,500 tons per day. Regarding the development Odyssey Underground, the third quarter of 2025 saw mine development advance ahead of schedule with a record 4770 meters completed. The breakthrough of the ramp to the mid shaft loading station at level 102 was completed in the third quarter of 2025. And the main ramp towards the shaft bottom progressed to the depth of 1059 meters as at September 30th, 2025. As previously noted, by our partner and firmed up during the third quarter, Pignico Eagle approved the extension of the first shaft by 70 meters to a depth of 1,870 meters amongst some additional loading station adjustments. This adjustment is expected to improve operational flexibility and efficiency in the early 2030s, reducing reliance on truck haulage and further unlocking the significant exploration potential at depth. And speaking of efficiency, the sinking of the first shaft is already two months ahead of schedule. Looking at exploration, Agnico continues to press ahead aggressively with 29th surface and underground drill rigs operating during the period. The drilling program at Odyssey targeted the upper eastern, lower eastern, and lower western extensions of the East Goldie deposit. the new eclipse zone and portions of the Odyssey deposit near the Odyssey shaft. Our partner believes this area of East Gouldie has the potential to add indicated mineral resources and potential mineral reserves to East Gouldie by year end. The drilling success should benefit the ramping up of the mining operations and provide additional flexibility in mine development in East Gouldie, including a potential second mining area in the upper part of the mine. We touched on the following subject on our last quarterly conference call, but I think it's once again worth time to reiterate that our partner, Agnico Eagle, continues to openly discuss the concept of a second shaft at Odyssey. On slide nine, we've provided just a small sample size of the details provided by Agnico as it relates to the current concept, including specific underground mine throughput profiles, as well as aggregate potential underground production range in ounces, as well as a breakdown of what is being targeted for both shaft number one and number two, expected grades and recoveries, and finally, fairly detailed timelines to achieving all of this. What does this mean for oil royalties? Distilling all of this down, it means that we could see an approximately additional 15,000 geos from a second shaft over and above what would be expected from the first shaft. The sheer amount of gold discovery to date at Odyssey Underground, and more specifically East Gouldie, on which we have a 5% NSR royalty, and which continues to expand, continues to support our partners' plans. The current mineral inventory at East Gouldie sits at approximately 50 million gold ounces and continues to grow. Agnico Eagle now has over 29 drills turning to expand this inventory, in addition to firming up the confidence of what has been previously defined. Given the sheer magnitude of the potential upside here, we can sympathize with Agnico's approach of taking a measured and methodical approach to the potential addition of the second shaft. Consequently, it is unlikely that there will be any meaningful public disclosure as it relates to specific details on the second shaft until the first half of 2027. Though IGNICO has already indicated that upon release of those figures, a final investment decision would be quick to follow, if not almost immediate. Here at Our Royalties, it is our continued belief that the value of the potential second shaft at Odyssey is not currently fully reflected in our share price, or even for that matter, in IGNICO's share price. despite the fact that we truly believe that there is little doubt that this project will eventually be sanctioned and completed. Finally, the potential second shaft only serves as a component, albeit a key one, to IGNICO's broader plans, which could see the entire complex produce a million ounces from 2030 onwards, when factoring in additional regional ore sources, such as Marvan and Wasimac. As a reminder, Waban is subject to an NSR royalty or NSR royalties owned by ore royalties, as well as the toll milling royalty, while Wasimac ore would be subject only to the toll milling royalty. Ignico noted on their conference call last Thursday that the studies on both the second shaft and the complex's path to a million ounces remain on track. On to slide 10, which touches on Dalgaranga. a high-grade underground gold asset in which Ore Royalties owns a 1.44% gross revenue royalty, and which was acquired just over a year ago. On July 31st, Remilius Resources fully closes acquisition of Spartan Resources, and then just two weeks ago, our new operating partner provided its detailed plans of how it expects Dalgaranga to fit into this gold production growth over the next five years. In summary, Remelius is choosing to operate and concurrently expand its central processing facility at its pre-existing Mount Magnet hub in order to accommodate ore from Dalgaranga. Eventually, and within the next two years, the facility will be completely expanded to 5 million tons per annum, and with two separate crushing circuits to accommodate ores from both Mount Magnet and Dalgaranga. due to their respective different grind size and recovery profiles. In the meantime, higher-grade ore from Dalgaranga will be fed through the pre-existing unmodified plant, with lower recovery rates expected to be achieved during this interim period. The good news out of all of this for ore royalties is that Dalgaranga is now very likely the next producing asset in our portfolio, with the first production expected in the first half of 2026. with significant step changes in growth expected after that based on Romelius' financial year. Based on the recently provided production profiles, Dalgaranga is also set to produce close to 275,000 ounces of gold in Romelius' financial year in 2030 alone. None of these figures include any potential additional ore sources sourced from Dalgaranga's Gilbey's Underground or a potential never-never open pit project, which serve as potential upside, and on which Ramilius has also completed a PEA-level scoping study, scoping studies respectively. And, of course, this doesn't include any potential future exploration upside success within our royalties area of interest either. To sum up these points, We think that the recently released plans from Romilius represents the first positive early indication of the true potential of this high-grade asset going forward. We'd like to extend our congratulations to the entire Romilius team on having completed these creative and well-received integration plans in relative short order post this acquisition of Spartan Resources, and we very much look forward to Romilius' execution going forward. Moving to slide 13, but also staying down under, we're happy to report that Harmony Gold's acquisition of MAC Copper closed on October 24th, 2025. The most immediate impact to Oral Royalties, and more specifically, Oral Royalties International, was the receipt of 49 million in cash for the 4 million shares held in MAC Copper. Even more exciting, though, is the future of this asset under such a deeply skilled underground mine operators such as Harmony. With the transaction closed, the approximate three-month integration process of the asset is now underway, with Harmony looking to immediately execute on available synergies, while also looking to maximize operational efficiencies once the integration is complete. Furthermore, Harmony has already provided a timeline with respect to future catalysts at CSA. most notably an updated life of mine plan expected in August of 2026. Before that, however, will be some key interim updates in late February or early March of 2026, at which time Harmony is expected to provide a fiscal year 2026 production guidance for CSA, as well as detailed updates on operational performance, key project development milestones, and finally on recent exploration activities. From our understanding, Harmony doesn't plan to deviate from either of the two projects started under Mack Copper, specifically the Upper Marin Mine as well as the CSA Ventilation Project, with the latter still scheduled for completion in Q3 2026. Recall that these two projects are expected to get to the mine to a point where it can sustainably produce under 50,000 tons of copper per annum level. which represents a production expansion of approximately 25% of the most recently completed full year of operations in 2024. Recall the underground mine that had been the key bottleneck with the surface processing facility still having plenty of latent capacity, a facet that we expect Harmony to take full advantage of over time. Let's move to slide 12. We're now highlighting the CSA expansion projects more explicitly in our five-year growth outlook to 2029 alongside Island Gold, Galgaranga and the others. As it relates to CSA, these expansions were always expected based on our exchanges with both Mack Copper and now Harmony Gold. Another minor change on this slide versus previous variations is that we've reintroduced the Eagle Mine in the Yukon back into the optionality bar. where previously it had been completely removed. And this actually provides a very good segue into slide 13, which provides an ongoing summary of the significant progress being made on some of our key optionality assets that are currently excluded from our five-year outlook. Though this slide might provide a good foundational preview on how to think about what might be included in our 2030 five-year outlook. when released in mid-February of next year. As noted in our press release last night, we'll start with Caribou and Spring Valley, two shovel-ready, fully permitted, sizable gold projects that each resides in what we would define as Tier 1 mining jurisdictions. In aggregate, these two assets would be able to provide ore royalties and their shareholders with approximately 16,000 geos in aggregate once fully underway. Starting with Caribou, with another round of additional financing just completed, ODEV is already moving forward with pre-construction and construction activities for the development of the project, including certain detailed engineering, procurement, underground development, operational readiness planning, and other early works activities. We're expecting more news from the ASISCO development team in the near term as it relates to more concrete plans and timelines for the Caribou construction. which is set to be completed in order to achieve first gold production in the second half of 2028. Moving to Spring Valley, our understanding that Solidus and its build team are effectively ready to go, as the company is keen to move forward with construction work. However, at this time, our partner is seeking final authorization of project financing via the proposed $835 million of U.S. Ex-Am Bank facilities. So stay tuned on this one. Progress continues apace at Agnico Eagle's Upper Beaver project in Ontario. Elsewhere, United Gold, or Lydian Armenia, is already drawing down on its credit facility in order to move forward with what's left to complete for the construction of Almasar. In fact, we just had our team on site this past September, and they were very pleased to see this kind of activity there. the first of its kind in a really long time. And at South Railroad, Orla Mining should have an updated feasibility study out before the end of this year, with the final record of decision expected mid-2026 and first gold and silver before the end of 2027. Finally, at Eagle, we understand that first round bids for the asset were due in the first week of September 2025. With those interested parties that made it into the second round, now completing more due diligence, including site visits. The hope is that a new owner can be announced sometime in the coming months with a potential new plan of operations, including a potential timeline to restarting production following fairly soon after that. Quickly on slide 14, on top of everything else we've mentioned, here is an updated list of key catalysts on currently producing assets on the left, and key near-term development projects that fall within our current five-year outlook on the right. I'll single out just two for now.

Looking to the right side, one second.

Looking to the right of the slide and starting with windfall, it's likely that Goldfields provide some updated economic numbers on the project at its upcoming capital markets day scheduled for next week on November 12th. Recall the most recent fulsome update from Goldfields provided the expectations that an updated feasibility study along with final project permits as well as final IVAs with the relevant First Nation groups are now expected in what is shaping up to be a very busy 2026 for Goldfields at windfall. Second, and touching briefly on what has been and continues to be a busy year for Merrimack at Copper, with the MOD feasibility study now completed, it's quite possible that in the next few months we could see additional major milestones achieved in the form of final permits for the MOD project and our partners securing full financing to move forward with the final investment decision and subsequent project construction. Finally, we'll end on the formal part of the presentation on slide 15, which outlines the current state of Oral Royalty's balance sheet. At quarter end, we were completely debt-free and had cash of $57 million. This cash balance would have grown to approximately $106 million if we'd been able to include the $49 million value of our MAC Copper shares, which are listed on this slide as investments held for sale, given this was representative as of September 30th. The good news is this cash was received this past week. So factoring this all in, with approximately $1 billion in potential available liquidity at the end of the quarter, the balance sheet is looking incredibly strong. Our improved financial position is key as Oral Royalties' corporate development team continues to be stretched to capacity across multiple transaction opportunities. At the same time, our robust organic growth profile and deep pipeline of tangible optionality affords ore royalties the luxury to maintain a disciplined approach and wait for the right deal as we're not willing to sacrifice investment returns, deal economics, or contract features just for the sake of adding gold equivalent ounces. As such, we plan to adhere to our time-tested strategy of measured and disciplined capital allocation in the pursuit of high-quality accretive streams and royalties that will bolster the company's current and near-term geo-deliveries, as well as cash flows, for the benefit of our current and future shareholders. And with that, we will conclude the formal part of today's call, and we can move forward with the Q&A. Joelle?

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 handset before pressing any keys. One moment, please, for your first question. Your first question comes from Josh Wolfenson with RBC Capital Markets. Your line is now open.

Yeah, thanks very much. A couple of questions. First for Malartic, this has been a very strong year for the asset, outperforming expectations on Barnett grades. The existing mine plan in 2026 outlined a little bit lower production before some further increases thereafter. I'm wondering how OR is thinking about the near-term outlook for the assets in the context of what next year looks like and what we should expect there. Thank you.

Thank you, Josh. I know you had two questions, so we'll come back to you in a second, but I'm going to hand it over to Guy, who's best situated to answer the question for you in the audience.

Hey, Josh. We're not expecting any surprises. As you know, the grade overperformance is due to blocks that are around the underground stoves, and Agnico takes a fairly conservative approach to whether those blocks appear in the resource reserve models. We expect that to continue into the final pits that we see there. So no expected surprises. We do get more detailed information at the beginning of the year with respect to their short-term mine plans, but we don't have those yet. So, yeah.

And your next question, Josh?

I can keep going. I've got a couple of them. For Eagle, I'm wondering if OR has been involved in any part of the negotiation process with some of the parties here that have been, I guess, providing offers?

So, look, I think everybody is aware there is a public process that BMO Capital Markets Restructuring Group is running. It's safe to say that, as we mentioned, the first round indicative bids, non-binding bids, and they've selected a number of what we would qualify or what they've told us is high-quality operators with very, very good ESG credentials. In addition, given the fact that we are a stakeholder, given our interest, we've also signed an NDA with the group PwC, who's obviously acting for the Yukon government and BMO Capital Markets. So it's really not appropriate for us to be able to comment on, again, any discussions we may or may not have with potential operators. BMO Capital Markets is running a very fulsome and proper public process that you certainly and everybody, all stakeholders will be able to see in the fullness of time. All we can say is as a stakeholder, we're quite pleased with the progress that has been made. we do believe that at some point, and we'll very likely get visibility in 2026, as to what the plan of the next operator of the Eagle mine will be. And at that point, we will determine or decide whether we re-include the Eagle geos into our five-year outlook. So there's not much more that we can say on that, Josh, apart from we're very pleased with the quality of interest from established operators that are looking to set a base up in the Yukon.

Great, thank you. And then one last one. I think in some of the prior conference calls, you had talked about some potential for a transaction to be announced before year-end. It sounds like the company is instituting some greater discipline, and I'm just wondering what the outlook is still for that negotiation process. Thank you.

Yeah, no, it's a really good question. I'm looking at my team around the table here. As I said in my remarks, the corporate development technical teams are just flat out right now. We're looking at a lot of opportunities. However, as I've said in the past, I mean, if our group can get one, maybe two high conviction, very good returns for our shareholders over the course of 12 to 18 months, we will do that. What we've seen in the marketplace, though, is we have not been able to conclude those transactions, both on a couple of things, as I said in my remarks, value. We're not seeing, we've got to obviously make that spread on our own internal hurdle rates. We're not seeing deals right now that satisfy that criteria, as also we've seen some loosening of structure i.e. there's been a number of deals, as you would know, that are unsecured or the security instrument is not where we, as risk managers on behalf of shareholders, capital are comfortable with at this stage. So there's certainly a desire to get things done, Josh. It's just we have to remain very disciplined and really stick to our need and pick our spots.

Thank you very much. Thanks, Josh.

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

Oh, great. Good morning, everybody. Thank you for taking my call, and thank you, operator, for getting my name right. Can I just continue on Josh's questions on the transaction opportunities? Jason, you mentioned on your call that You know, you have an internal rate of return metric that, you know, you're very focused on as part of your strict valuation for all metrics for transactions. And you said it's a more conservative gold price. What sort of internal rate is that? Is it 15%?

It would vary, Tanya, and so maybe we can take this conversation offline because I think it is important you understand it, but I'll just talk about broad parameters. We obviously have a weighted average cost of capital within our company. That's mainly informed by a revolving credit facility. A revolving credit facility is based on a variable rate. I think you know what prime rates and where the rates have been going down. So approximately, and it could vary over time, but approximately it's about 4.5%. in terms of our cost of capital or cost of debt if we were to dip into the rolling credit facility. So that is obviously what we need for a transaction is a spread beyond that. And what we also do is we don't do transactions and we don't look at transactions in the frame of spot prices right now. We do continue to look at consensus pricing and be informed by that. All that said, we do look at spot as a relevant benchmark. It is a very competitive sector and very competitive for deals right now. And then we have to really lean on our technical team, Guy and Brendan in particular, to look through the asset and see what might not be publicly disclosed in terms of technical reports to look for upside both geologically, mine life extensions and operational efficiencies. So it's a very complex, well, it's an answer that has many different components to it. Very happy to walk you through our methodology at some point, but you can think around those parameters, as I said, a spread over that hurdle. And obviously, if we did a transaction in one of those tier one jurisdictions, the hurdle or the spread would be significantly less than let's call it tier two or tier three and we've proven that in the past does go back to the cascabel transaction that we did with franco and what the street had suggested in terms of the internal rate of return that was mid-teens for us pay 14 to 15 percent so that those are the approximately the goal post tanya okay so definitely over five percent spread over that um

Maybe just on the opportunities that you're seeing out there, I think on the Q2 conference call, it was quite a wide spread from like $50 million to a billion. I mean, you can drive a truck through that. Maybe we could talk a little bit more about what are you seeing currently in the environment. Is it a much tighter spread? Is it still streams versus royalty packages? Is it still development or financing for asset sales? What exactly are you seeing?

The answer to all those questions, Tanya, is yes, all of the above. Again, it varies for sure. And some obviously deals that are in flight we've been working on for can be two, three years. And some obviously come in through processes of existing operators, for example, deciding now is the right time to sell a royalty package off that they've put in a portfolio many, many years ago and obviously are looking at the commodity complex and saying, you know, is this the right time for us to extract value? So, again, there's a lot of different opportunities out there for us. I think I'm consistent in saying that for us, being a mid-tier streaming and royalty company, that the strike zone for us is anywhere between $50 and $500 million. We do have ample liquidity and capacity to do that, given, again, we're now zero debt and completely undrawn in a rolling credit facility. But there is many, many opportunities out there. As I said, our team is very busy, and I will, because I don't think it's – I will, again, emphasize that for our company, given our growth profile, we just have to be incredibly disciplined around capital allocations.

Okay, thank you. I guess we'll get more into that. It's your investor day. Maybe just a final question. As I think about 2026, and, you know, I know pricing, you know, is important, you know, whether you keep the 82 or 83 to 1 ratio. As I think about, and you provided the five-year, you know, 2029, you're up in that, you know, 120,000, 125,000 geos or thereabout. As I think 2026, would it be fair, and it's just a directional situation, would it be fair to assume that 2026 could look very similar to 2025?

Yeah, no, it's an excellent question, Tanya. Look, obviously, we'll provide more details when we put out our one-year guidance in February of 2026, as well as an updated five-year outlook. What we've been consistent in saying in the past is this growth rate 40% over the next five years is not linear. You know the assets that we have in production currently. Really the only new asset that's going in, unless we actually bring an asset through an acquisition, the only really new asset coming in is the Dalgaranga that we talked about on the call. We do expect next year for Mantos Blancos to continue to have the higher silver grades that we've just recently started to experience. So those are the big drivers of growth for 2026, as well as the Nandini mine in Ghana as it hits its full stride in 2026. That's probably the best guidance I can give you at this stage. We can certainly talk about it further on Monday at the Investor Analyst Day, but we'll give all that specificity the extent we can in February of 2026.

Okay, fair enough. Thank you very much and look forward to your Investor Day.

Thank you, Tanya.

Your next question comes from Carrie Mercury with Canaccord Genuity. Your line is now open.

Hi, good morning, guys. It's just a quick one for me. There was a copper buy-down option on the MAC copper stream. Just wondering if that option transfers now to Harmony and if you have any thoughts on whether to electrocute that or not.

So, really good question. Thank you for it, Carrie. Effectively, you can think of everything that we had with MAC Copper as essentially being assigned to Harmony Gold. So yes is a straightforward answer. And anything that you're modeling or seeing with MAC Copper, you can just assume because it has been assigned to Harmony Gold. There's been no changes in the structure, no changes in effectively anything commercially with respect to both the silver stream and the copper stream.

And that option only kicks in after this, on the fifth anniversary, they can exercise early?

That's correct.

Okay. Great. That's it for me. Thanks.

I don't know for the questions at this time. I will now turn the call over to management for closing remarks.

Thank you, Joelle. As always, if anyone on the call or listening to this replay has additional questions, insights, or observations, on our business and our business strategy, please do reach out to Grant, Heather, or myself, and we'd be more than pleased to provide more information about the bright future for our company and its shareholders. In addition, I would like to provide a final plug for our Investor and Analyst Day, which is planned to be a two-hour session this Monday, starting at 1 p.m., at Vantage Venues in downtown Toronto. My team will go through in much greater detail our assets, including the potential for growth, insights and opportunities that we do see within our portfolio. If you can make it down in person and you haven't already done so, please RSVP to my colleague Grant Monting. And if you can't make it in person, a live webcast link was also provided in our press release last night. We hope you can join us either way. And if not, a recording of the event will be available on our website in relatively shorter order after the event. Thank you again very much for your time. and we look forward to engaging with you in the future.

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