OR Royalties (NYSE:OR) reported higher third-quarter 2026 revenue and adjusted earnings as stronger realized metal prices offset nearly flat gold-equivalent ounces earned. The company maintained its full-year production outlook despite the impact of a pit wall incident at Canadian Malartic.
Revenue rose 26% to $90.2 million from $71.6 million a year earlier, while gold-equivalent ounces, or GEOs, totaled 20,237, compared with 20,326. Adjusted earnings rose 29% to $0.29 per share, and operating cash flow increased 21% on a per-share basis to $0.42.
The company earned 63,734 GEOs through the first nine months of 2026, up 8% year over year. It said that was tracking roughly toward the midpoint of its annual guidance of 80,000 to 90,000 GEOs.
Higher prices lift revenue and margins
Chief Financial Officer Frédéric Ruel said the quarterly revenue increase reflected realized prices of $4,204 per ounce of gold and $64.47 per ounce of silver. Royalties contributed $56 million of revenue, while streams contributed $34.2 million.
Cash margin rose to $87.3 million, or 96.8% of revenue, from $69.3 million, or 96.7%, a year earlier. Net earnings were $55.4 million, or $0.30 per basic share, compared with $0.44 per share in the prior-year quarter.
Ruel said the 2025 net earnings figure benefited from a $54 million noncash accounting gain related to the reclassification of the company’s investment in Osisko Gold Group.
Malartic disruption and new mine contributions
OR Royalties said operator Agnico Eagle completed remediation of Canadian Malartic’s north wall during the quarter and resumed mining in unaffected areas of the pit on September 27. Agnico’s estimated production impact remained unchanged at 60,000 to 80,000 fewer ounces in the second half of 2026 and up to 150,000 fewer ounces in each of 2027 and 2028.
Based on its 5% royalty, OR Royalties estimated the impact at approximately 3,000 to 4,000 GEOs in 2026 and up to 7,500 GEOs annually in 2027 and 2028. The company said its estimate for this year was already included in guidance. Canadian Malartic’s quarterly GEOs were modestly ahead of its expectations, helped by production from the Odyssey underground operation.
The company said its portfolio now includes 25 producing assets. Cuiú Cuiú in Brazil poured its first gold on September 10, while Amulsar in Armenia followed on October 10. Dalgaranga, announced as a new producing mine last quarter, continues to ramp up.
At Amulsar, OR Royalties’ stream accrues from first production, but deliveries will begin only after the operator repays a $150 million construction loan. At current commodity prices, the company expects first deliveries in the fourth quarter of 2027 or possibly the first quarter of 2028. First royalty payments from Cuiú Cuiú are expected in mid-2027.
A shipment from CSA missed the third-quarter cutoff, shifting some silver and copper GEOs into the fourth quarter. San Gabriel remains constrained by bottlenecks at the back end of its plant, and OR Royalties expects a measured improvement over the next 18 to 24 months.
Longer-term outlook and deal pipeline
OR Royalties reaffirmed its 2030 outlook of 120,000 to 135,000 GEOs, roughly 50% growth from this year. The company said the outlook requires no contingent capital and does not include increased GEOs from additional Spring Valley royalty coverage or the Murray Brook stream announced earlier this year.
The company expects Canadian Malartic’s share of its ounces to decline from 38% of 2026 guidance to about 21% of the 2030 outlook as other assets grow. It plans to provide 2027 guidance in February alongside its fourth-quarter results.
During the question-and-answer session, Jason Attew said the core of the company’s acquisition pipeline remains in the $50 million to $300 million range. While OR Royalties could consider a development stream with a headline value of $1 billion if payments were spread over construction milestones, he said an upfront payment of $1 billion to $1.5 billion in a single auction was unlikely.
Attew said the company would remain focused on transaction returns and per-share measures. Ruel said capital allocation could include acquisitions, share repurchases or debt reduction, depending on which creates the most net asset value per share.
Balance sheet and shareholder returns
OR Royalties ended September with $77 million in cash and $228 million drawn on its revolving credit facility, for net debt of $151.5 million. It expects an additional $65 million in the fourth quarter from a planned partial royalty buyback at Cascabel and a deferred payment from Galiano.
The company repurchased 1,007,496 shares for $29.1 million during the quarter and has bought back and canceled 1.6 million shares year to date. Its board declared a quarterly dividend of $0.065 per share, payable January 15, 2027.
At Eagle, Attew said Boroo’s agreement to acquire Victoria Gold and the mine from the receiver was a positive step toward a potential restart. The transaction is targeted to close December 31, subject to court approval. He said OR Royalties is awaiting further information and noted that its 5% royalty interest in the property was written down to effectively zero in 2024.
About OR Royalties (NYSE:OR)
OR Royalties is a precious metals royalty and streaming company. Rather than operating mines directly, it provides financing to mining companies in exchange for royalties, streams, and other interests that can entitle it to a share of production or revenue from mineral projects. The company’s portfolio includes interests in gold and other mineral projects, including royalties associated with Canadian Malartic and Éléonore in Canada. Its assets span multiple jurisdictions, with a significant presence in the Americas.
