OR Royalties portfolio expands production pipeline with Cuiú Cuiú, Amulsar and Cariboo milestones

OR Royalties Inc. is entering a stronger production-growth phase as several assets across its royalty and streaming portfolio move from development toward commercial operation. Cuiú Cuiú in Brazil has produced its first gold and is expected to ramp toward commercial production during the fourth quarter, while first gold from the Amulsar mine in Armenia is described as imminent and commercial production remains targeted for the first half of 2027. Additional projects including Cariboo, South Railroad and Hermosa have also advanced toward construction or production milestones, giving OR Royalties a broader pipeline of future royalty and stream contributions beyond its cornerstone Canadian Malartic asset. The update strengthens the company’s growth narrative after second-quarter royalty and streaming revenue jumped 62% to $97.8 million and cash margin reached 96.8%.

The portfolio expansion matters because OR Royalties’ business model depends less on operating mines directly and more on acquiring royalties and streams that can generate high-margin revenue as partner companies build, expand and operate projects. That structure allows OR Royalties to benefit from rising production and higher precious metals prices without carrying most of the direct mine-development or operating costs. The company now holds more than 200 royalties, streams and related interests, while royalty, stream and other interests on its balance sheet increased to $1.48 billion at the end of the second quarter from $1.14 billion at year-end.

Cuiú Cuiú and Amulsar could become the next contributors to OR Royalties’ production base

Cuiú Cuiú has become the latest producing asset in the portfolio after operator Cabral Gold completed its first gold pour. OR Royalties owns a 1% net smelter return royalty on the Brazilian project, which is now ramping toward commercial production. Cabral also recently secured a C$45 million strategic investment from Alpayana, providing additional capital for the Phase 1 oxide operation and development work on a potential larger Phase 2 hard-rock project.

The importance of Cuiú Cuiú extends beyond the initial royalty revenue because additional development could increase the production base on which OR Royalties receives its percentage. Royalty companies generally benefit when mine operators expand resources, increase throughput or extend mine life because much of that incremental investment is funded by the operator rather than the royalty holder.

Amulsar could become an even more meaningful contributor. First gold is expected soon, with the mine still targeting commercial production during the first half of 2027. OR Royalties International owns both a gold and silver stream on the project, giving the company the right to purchase agreed percentages of future metal production at contractual transfer terms.

Under the agreement, OR Royalties International is entitled to 3.34% of payable gold until approximately 82,300 ounces have been delivered and 1.31% thereafter. The silver stream covers 49.22% of payable silver until approximately 1.03 million ounces have been delivered, falling to 19.69% afterward. OR Royalties currently expects initial stream payments in late 2027 or during the first half of 2028, depending partly on gold and silver prices.

The distinction between first production and first stream payments is important. Amulsar may begin producing before OR Royalties receives meaningful stream deliveries because payment timing depends on contractual thresholds and commodity prices, so the asset should be viewed as a future cash-flow catalyst rather than immediate revenue.

Other producing assets are also improving. Harmony Gold expects the CSA copper mine to produce 28,000 to 30,000 tonnes of copper in fiscal 2027 and is targeting a 40,000-tonne annual run rate by fiscal 2029. OR Royalties owns a 3% copper stream and a 100% silver stream on CSA, giving it exposure to a commodity mix broader than gold alone.

Cariboo, Hermosa and South Railroad deepen the pipeline beyond current producing assets

Cariboo has become one of the most important longer-term catalysts after its operator approved a formal construction decision. First gold is expected in the first quarter of 2029, followed by commercial production during the second half of that year, while OR Royalties owns a 5% net smelter return royalty on the project.

The project carries an estimated remaining capital requirement of approximately C$990 million, supported by up to C$1.64 billion of identified existing and proposed funding sources. That funding cushion reduces some financing uncertainty, although major construction projects remain exposed to inflation, permitting, engineering and schedule risks.

Hermosa in Arizona has also cleared an important regulatory hurdle. The United States Forest Service issued its final Record of Decision for the Hermosa Critical Minerals Project, completing the federal environmental process needed for certain supporting infrastructure. First production from the Taylor zinc-lead-silver deposit remains targeted for the first half of 2028, while OR Royalties holds a 1% net smelter return royalty on zinc and lead sulfide production.

South Railroad in Nevada has similarly completed federal permitting under the National Environmental Policy Act after receiving a positive Record of Decision from the Bureau of Land Management. Early works have begun, with first production targeted for the first half of 2028, while OR Royalties International owns a 100% silver stream on the project.

White Pine North adds another copper-focused growth opportunity. A recently published prefeasibility study outlined a 26-year mine plan with more than 45,000 tonnes of payable copper production annually at steady state, while the operator is targeting a final investment decision in the second half of 2027 and commercial production in 2030. OR Royalties owns a 1.5% royalty on copper production and a sliding-scale silver royalty that can increase substantially at higher copper prices.

The number of assets reaching permitting, construction or production milestones reduces OR Royalties’ dependence on a small group of existing mines. Canadian Malartic remains the cornerstone asset, but future cash flow becomes more diversified if Cuiú Cuiú, Amulsar, Cariboo, Hermosa, South Railroad and White Pine North all advance as expected.

Recent acquisitions have already increased revenue while expanding OR Royalties’ future optionality

OR Royalties has been using acquisitions aggressively to accelerate portfolio growth. During the second quarter, the company completed $335 million of previously announced transactions, including the acquisition of Terraco Gold for $168 million and a Gold Fields royalty portfolio for $115 million. It also paid $52 million for scheduled deferred payments from Galiano Gold totaling $60 million.

The Gold Fields portfolio includes eight royalties and is anchored by a 1.5% net smelter return royalty on Buenaventura’s San Gabriel mine in Peru. The portfolio also brought interests in earlier-stage projects such as Ritz and Woodjam, where recent drilling results have increased the potential value of assets that currently contribute little or no revenue.

At Ritz, recent drilling included an interval grading 456 grams of gold per tonne over 11 metres, while Woodjam drilling returned 266 metres grading 0.97% copper with additional gold and silver. Exploration results do not guarantee an economic mine, but successful drilling can increase the long-term value of a royalty without requiring OR Royalties to fund the exploration program itself.

The company is also increasing exposure to Japan Gold’s portfolio. OR Royalties agreed to spend $3 million to raise its royalty interest across the properties from 1.5% to 2% after Japan Gold formed a strategic alliance under which Solidcore Resources committed $35 million to five initial exploration areas.

This is one of the core attractions of the royalty model. Operators spend their own capital on exploration, permitting and mine construction, while successful development increases the value of OR Royalties’ contractual interest. The risk is that many early-stage projects may never reach production, meaning portfolio breadth remains important.

High gold prices and a 96.8% cash margin strengthen OR Royalties’ capacity to keep investing

OR Royalties’ recent financial performance provides substantial capacity to continue making acquisitions while returning capital to shareholders. Second-quarter royalty and streaming revenue increased 62% year over year to $97.8 million, while operating cash flow rose to $83.2 million from $51.4 million.

The company earned 20,757 gold equivalent ounces during the quarter, only 5% more than a year earlier, demonstrating how much higher precious metals prices contributed to revenue growth. Cash margin reached $94.7 million, equivalent to 96.8% of revenue, compared with 95.8% a year earlier.

Net earnings increased to $61.4 million from $32.4 million, while adjusted earnings climbed to $60.5 million from $34.1 million. Management continues to expect 80,000 to 90,000 gold equivalent ounces for the full year.

The balance sheet has absorbed significant acquisition spending. OR Royalties ended the second quarter with $75.6 million of cash and $215 million of debt, producing net debt of approximately $139.4 million. The company subsequently increased its revolving credit facility from $650 million to $850 million and expanded the uncommitted accordion feature to $350 million, while extending the facility maturity to 2030.

Shareholder returns have continued alongside acquisitions. OR Royalties repurchased more than 1.55 million shares during 2026 through early August and increased its quarterly dividend by 18.2% to $0.065 per share. Management has positioned strong operating cash flow as sufficient to support acquisitions, dividends and opportunistic buybacks simultaneously.

OR Royalties shares closed down roughly 4% before the portfolio update was released, while spot gold also declined sharply during the session. Because the company published the asset update after regular North American trading had ended, the stock decline should not be attributed to the new Cuiú Cuiú or Amulsar announcements.

The more important investment question is whether the growing development portfolio can translate into meaningful gold equivalent ounce growth over the next several years. OR Royalties already benefits from unusually high cash conversion, but future valuation will increasingly depend on how quickly recently acquired and developing royalties begin contributing production.

Cuiú Cuiú is now moving through that transition, while Amulsar could follow. Cariboo, Hermosa and South Railroad provide the next layer of potential growth, with several exploration-stage assets offering longer-term optionality.

Key takeaways from OR Royalties’ expanding production and development pipeline

• Cuiú Cuiú has produced its first gold and is expected to ramp toward commercial production during the fourth quarter.
• OR Royalties owns a 1% net smelter return royalty on Cuiú Cuiú, giving it exposure to both the Phase 1 operation and potential future expansion.
• Amulsar is approaching first gold production, while commercial production remains targeted for the first half of 2027.
• OR Royalties owns gold and silver streams on Amulsar, with initial stream payments expected later as production and contractual thresholds develop.
• Cariboo has received a formal construction decision, with first gold targeted for 2029 and OR Royalties holding a 5% royalty.
• Hermosa and South Railroad have cleared important federal permitting milestones and are targeting first production in 2028.
• Second-quarter royalty and streaming revenue rose 62% to $97.8 million, while operating cash flow increased to $83.2 million.
• Cash margin reached 96.8%, highlighting the operating leverage inherent in the royalty and streaming model.
• OR Royalties completed $335 million of acquisitions during the second quarter and continues adding new royalty interests across precious and base metals.
• Future growth will depend on converting a broad pipeline of producing, development and exploration assets into additional gold equivalent ounce deliveries.