OR Royalties Q2 Revenue Jumps 62% on Gold Prices, Buys Back Shares

OR Royalties posted a 62% year-over-year increase in revenue for the second quarter, the company said Tuesday. Growth came on a 5% rise in gold equivalent ounces earned, the company said, with higher precious metals prices driving the rest of the gain. The royalty and streaming model converted 96.8% of revenue into cash margin.

Cash flow from operations climbed at the same 62% clip. The company maintained its 2026 guidance of 80,000 to 90,000 gold equivalent ounces.

"Revenues and operating cash flows each grew 62% year-over-year - the arithmetic of a 96.8% cash margin business in a stronger precious metals market," President and CEO Jason Attew said in a statement.

During the quarter, OR Royalties closed $335 million in acquisitions. The largest was Terraco Gold Corp. for $168 million, giving the company net smelter return royalties on Solidus Resources' Spring Valley project in Nevada. It also bought a portfolio of eight royalties from Gold Fields for $115 million, anchored by a 1.5% NSR on Buenaventura's producing San Gabriel gold-silver mine in Peru. As part of the same Gold Fields deal, OR Royalties acquired $60 million in deferred payment obligations from Galiano Gold for $52 million.

After quarter-end, the company closed a $28 million precious metals stream on Canadian Copper's Murray Brook project and signed a binding agreement with Hot Chili to extend its NSR royalties to cover the La Verde project at Costa Fuego for $15 million in cash.

The total portfolio of royalty, stream and other interests reached $1.48 billion at June 30, up from $1.14 billion at year-end 2025.

Attew highlighted the company's share repurchases following Agnico Eagle's July 2 disclosure about the Barnat pit at the Canadian Malartic complex. OR Royalties holds a 3-5% NSR on Canadian Malartic, one of the world's largest gold mines.

"When our shares sold off following Agnico Eagle's July 2 disclosure on the Barnat pit, we bought back over one million shares in early July, more than four times the number of shares repurchased in the entire second quarter, and at meaningfully lower prices," Attew said. He said the conviction in Canadian Malartic "remains unchanged" and that the company's cash generation allows it to fund a growing dividend and repurchase shares when mispriced, all while investing in new opportunities.

Agnico Eagle shares fell about 10% on the Barnat news, while OR Royalties' stock dropped roughly 8% in the days after the disclosure, according to the company.

Gold Fields, which sold the portfolio of royalties, holds an Alpha Score of 65, indicating moderate momentum. Agnico Eagle's Alpha Score is 55, reflecting mixed signals. The current gold profile benefits from the price environment, with the London Bullion Market Association's pm fix averaging well above year-ago levels.

OR Royalties operates a royalty and streaming model focused on Canada, the United States, and Australia. The company started with a single producing asset in June 2014 and now holds over 200 royalties, streams, and similar interests. The cornerstone is the Canadian Malartic NSR.

The company's cash margin was $156.1 million in the quarter, or 96.8% of revenue. The metric is a non-IFRS measure management uses to evaluate cash generation relative to peers.