🧾 What This Document Is

This is OR Royalties' Annual Information Form (AIF), a comprehensive yearly report filed with regulators like the SEC. Think of it as the company's official "report card" and owner's manual rolled into one. It details everything from their business model and financial health to the major deals they made and the risks they face. It's meant to give investors a full, transparent picture of the company.

🏢 What The Company Does

👉 In simple terms, OR Royalties is a "mining landlord." Instead of digging for gold, silver, or copper themselves, they buy rights to a slice of the revenue or production from mines owned and operated by other companies.

Business Model: They make money through two main tools:
- Royalties: A contract that gives them a percentage (like 1-5%) of a mine's sales revenue.
- Streams: An agreement where they pay upfront cash to a mine developer, in exchange for the right to buy a percentage of the future metal produced at a significantly reduced price.
Industry: They operate in the precious metals and mining sector, acting as a financial partner to mining companies. This model means they have no operating mines, no employees at mine sites, and lower direct costs.

💰 Financial Moves & Portfolio Highlights

This section covers the major deals and changes that shaped their year. This is where the company's "landlord" strategy comes to life.

🤝 Major Acquisitions & Agreements

Cascabel (Ecuador): In 2024, they partnered to fund part of the massive Cascabel copper-gold project. By 2025, they had made a $10 million deposit. In a twist, the project owner (SolGold) was bought out in 2026, which allowed OR Royalties to buy back half of their commitment in exchange for gold, simplifying their interest.
CSA Mine (Australia): In 2023, they paid $150 million total ($75M for silver + $75M for copper streams) for a share of silver and copper from the producing CSA Mine. They also invested $40M in the mine's owner, which they later sold for a $9 million profit in 2025.
Spring Valley (Nevada): A major 2026 deal, paying $168 million to acquire royalties on the Spring Valley gold project.
Gold Fields Portfolio (2026): Bought a portfolio of eight royalties for $115 million, adding assets in Peru, Ghana, Australia, and Canada.

📈 Key Portfolio Updates

Eagle Gold Mine (Yukon): A major setback. The mine's heap leach facility failed in mid-2024, halting operations. The mine operator entered receivership. OR Royalties had to take a $49.6 million impairment charge on this asset.
Gibraltar Mine (BC): Successfully increased their silver stream interest to 100% through a series of amendments with operator Taseko.
Windfall Project (Quebec): Benefited when Gold Fields acquired the project owner, Osisko Mining, for C$2.16 billion in 2024. OR Royalties holds a 2-3% royalty here.
Leadership: 2023-2024 saw significant board and executive changes, settling with Jason Attew as CEO and Norman MacDonald as Board Chair.

💸 Financial Position & Flexibility

The company's financial health is crucial for funding new deals.

Credit Facility: They have a $650 million credit facility (with an extra $200M option) that was completely undrawn at the end of 2025. This is their war chest for new acquisitions.
Strategy: They actively use this financial strength to acquire new royalties and streams, as seen in the 2026 purchases. They also strategically sell equity stakes in companies they invest in (like MAC Copper) to realize profits.

🔮 What's Next (The Strategy)

OR Royalties is clearly on an acquisition spree to grow its portfolio of income-generating assets. Their focus is on:

Acquiring New Assets: Actively buying royalties and streams on both producing mines and promising development projects (like South Railroad in Nevada, expected 2027).
Geographic & Commodity Diversification: Adding assets across the globe (Canada, Australia, South America, Africa) and across metals (gold, silver, copper, lithium).
Leveraging Financial Strength: Using their strong balance sheet and credit line to move quickly on deals, as shown by the over $280 million committed in early 2026 alone.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

Royalty/Stream Model: High-margin revenue without the costs and headaches of running mines.
Strong Balance Sheet: Large, undrawn credit line provides firepower for deals.
Diversified Portfolio: Revenue comes from many mines and metals, reducing dependence on any single one.
Management Expertise: Team has deep mining finance experience.

⚠️ Risks Ahead (The Fine Print):

Commodity Prices: Revenue lives and dies by volatile gold, silver, and copper prices.
Operator Risk: They don't control the mines. A mine failure (like Eagle Gold), labor strike, or poor management by the operator stops their payments.
Project Development Risk: Many assets are in exploration or construction. Delays, cost overruns, or failure to find enough metal could kill the project.
Buy-backs: Operators sometimes have the right to "buy back" a portion of OR Royalties' interest for cash, permanently reducing future income.
Concentration: A large portion of their revenue still comes from a few key assets, like the Canadian Malartic complex.

🧠 The Analogy

OR Royalties is like a savvy landlord who owns properties (royalties) in a bustling mining district. They don't manage the noisy, expensive mines themselves. Instead, they collect a steady stream of rent (royalty payments) or a fixed discount on the ore (streams) from the miners who do the hard work. Their big challenge is picking the right properties (mines) in good locations, ensuring the tenants (operators) are reliable, and managing the risk that a mine might flood or metal prices might crash, making the rent harder to pay.

📇 Key Contacts & People

Jason Attew: President & Chief Executive Officer
Norman MacDonald: Chair of the Board
Investor Relations Contact: (Note: The filing text mentions an Investor Relations to Vice President, Sustainability and Communications transition, but no specific name, email, or phone was provided in the excerpt.)

🧩 Final Takeaway

OR Royalties is aggressively growing its portfolio of "mining landlord" assets through major acquisitions, backed by a strong financial position. The strategy offers high-margin potential but is inherently tied to the volatile performance and operational success of the mines it does not control, as starkly highlighted by the costly failure at the Eagle Gold Mine.

OR Royalties Inc. — 40-F Filing