Good afternoon, ladies and gentlemen, and welcome to the Osisko Gold Royalties Q3 2016 Results Conference Call. After the presentation, we will conduct a question-and-answer session. [Operator Instructions] Please note that this call is being recorded today, November 10, 2016 at 11.00 Eastern Standard Time. Today on the call we have Mr. Sean Roosen, Chair of the Board of Directors and Chief Executive Officer of Osisko Gold Royalties; Mr. Bryan Coates, President of Osisko Gold Royalties; and Mr. Andre Gaumond, Director of Osisko Gold Royalties. I would now like to turn the meeting over to our host for today's call, Mr. Sean Roosen, Chair of the Board of Directors and Chief Executive Officer of Osisko Gold Royalties.

So welcome to the third quarter call. We will be following the PowerPoint that's on our Web-site and we will be going on a page by page basis through that, and hopefully will be able to provide you with some insight on things that have come through in this quarter. On that PowerPoint, there is a cautionary forward-looking statement. I would ask you to take that into consideration as we will be making some forward-looking statements within this presentation. To begin with, on Page 1, the bullion that we received indirect has increased. We do receive gold bullion and silver bullion indirect to our account. We've had a 21% increase quarter over quarter from 2015 to 2016 with 9,902 ounces of gold received and silver, and about just over 10,000 gold ounces equivalent if we include some of our cash yielding royalties. Guidance for this year sits at 34,500 to 37,200. Till year to date we have received 28,793 ounces. So we believe we are on track to achieve our guidance for the year. On to the next slide, as you can see, net cash flow from operating activities versus 2015 have gone from C$12.6 million to C$15 million, a 19% increase, with revenues having increased 50% from C$11.7 million to C$17.6 million. So, all in all, everything working in the right direction here. In terms of our bullion sales, on the next page, the highest gold price ever achieved in Canadian dollars on September 6, 2011 was C$1,877. Our last quarter, we sold gold at C$1,743. So I think that having Canadian assets has proven that it's a great hedge against a stronger dollar price, and we have seen exceptional margins in our space. And also because we are Canadian-based, our G&A is in Canadian dollars. So on a…

I've been blessed with my career to have worked and partnered with very competent and dedicated people. I feel very lucky. I have been very lucky to have been at the right place and at the right moment to discover fabulous deposit, had the privilege to be supported by outstanding and loyal shareholders with whom I developed friendship and supported by the Quebec government as well as association. I also felt always welcome in the most remote areas in Northern Quebec by many First Nations within which now I have many, many friends. So, what can I say except the fact that altogether I consider myself a very, very lucky man, and I thank obviously the entire mining industry for having given me the opportunity to make a difference in the mining sector and especially in Northern Quebec, and I feel blessed and fortunate and very privileged.

Thank you very much, Andre. It's been a pleasure having been through the Virginia transition with you and I think that your team and the quality of work that you created and consistency of working in top areas will continue on with Osisko Mining, and we look forward to seeing you in many occasions and we will be warning the moose that you have more time for hunting. So I think that the moose should be very scared at this point in time, but we're quite happy and we thank you very much for all the contribution to get us to where we are today, Andre. With that, operator, I think we can open it up to Q&A.

[Operator Instructions] Your first question comes from the line of Mark Mihaljevic of RBC Capital Markets. Please go ahead.

Quick question for me, I guess you guys outlined a number of avenues where you see opportunities in this space and how you see the ability to grow the business. I was just wondering what you see as the current opportunity set and which of the four buckets that you outlined do you think has the best potential of being realized as the next cornerstone asset that you referred to?

We look at the space right now, several of the larger polymetallic companies are capable of issuing precious metal streams on base metal assets in terms of shoring up their balance sheet. So we think that there is somewhere between C$2 billion to C$4 billion possible in that sector. So that's our immediate focus. As well, all these balance sheet transitions are underway as to be able to act in that space, which is kind of a unique time I believe. Once all these balance sheet structural issues have been resolved, it may well be very difficult to see producing assets that we'll be putting streams on. So I think we have to focus on here now, which is precious metal streams on polymetallic assets while this is on the go.

I guess a bit of a follow-up to that. Have you hurt to see any other companies pull back on that front, given obviously copper now up through $2.50, zinc prices again very strong year to date, so has that had an impact?

I think that there's obviously, there's asset dispositions that are underway, there's various processes on the go, but I think if you look across the space, there is about a commitment between management and Board to have about $10 billion to $15 billion of debt reduction in the space. So we are seeing those processes evolve. Some of them are fairly complex processes involving larger assets. So they do take time but they are happening.

Okay, perfect. That's it for me. Thanks guys.

Your next question comes from the line of John Tumazos of John Tumazos Very Independent Research. Please go ahead.

The Osisko Gold Royalties share price seem to be penalized over the last year or two due to some of the exploration development and investment opportunities that were long term oriented to the drill bit and development. And now that you restructure to put some of those in Oban and reorganize the Company, you seem to be penalized without them. What is your strategy to help the market appreciate all the good things you are doing?

John, as you said, we are not happy with our current share performance, price performance. We have gone long ways to restructuring the Company and we continue to finish that process, and with the listing on the New York Stock Exchange, we will be looking to focus on increased volume, which we think will lead to increased share ownership within the Company. So that is our number one focus right now, is to try and get the U.S. retail and institutional penetration through marketing and hopefully through straight up pure performance on our balance sheet, and as we see some of these opportunities that came through our accelerator process, it would be more tangible and understandable to the marketplace. It's our job to try and communicate and demonstrate that what we are doing is hopefully going to generate superior returns. So, as we get further into this piece, John, we will be coming to you and everybody else, that we think will help us with the distribution and increase the opportunities for volume as we evolve into the U.S. market a bit more. So that's the number one goal. And then obviously overall is to run a good business and make sure that our profile is where we would like it to be.

Thank you.

[Operator Instructions] Your next question comes from the line of Michael Siperco of Macquarie. Please go ahead.

Just on the back of this move in base metals, and I'll note too that your investment in Labrador Iron Ore Royalty is up above C$16 again, I thought maybe it was a good time for an update on Coulon and what's going on there, if you have any updates to give there?

Andre, would you like to handle Coulon?

We are doing a lot of internal studies about the functioning, we'd not say a PEA but we are looking at different things, doing some metallurgical work and we are drilling actually the extension of some of the lenses. So there is lots of work on different fronts on Coulon. It's the largest undeveloped copper-zinc-silver resource in Quebec. Of course as you saw that price of zinc has performed extremely well, the copper is now performing much better. So altogether, it's a project that we need to evaluate commercially and that's what we're doing internally.

Very good. Does your thinking, Sean, change at all with a little bit more of a lift to the base metal space here and some of the projects and royalties that you already have in the portfolio?

I think that obviously base metals, like gold in 2015, is maybe looks like it's finding bottom and coming back a bit. So we've set our pace internally to take advantage of both bad markets and good markets. So, I think with our accelerator model we have the ability to take advantage of some of these better markets in terms of seeing more money go into those projects and hopefully generate more value in our royalty package there. And in terms of the general base metals, obviously Coulon is to be the biggest kicker in our position at Highland Copper in Michigan as well as our position at Arizona Mining with the Hermosa deposit. So we have I think a small but potent exposure to the upside there.

Great. And maybe just one last question for me, the amount dedicated to acquisition of investments ticked up a little bit in the quarter. Can you talk about what was in that C$40 million number or so?

As you saw, we did participate in some flow-through investment, most recently on the Falco side, and we did increase some on the Osisko Mining side. But I will tell you that all of our investments on the portfolio have been made in a strategic proportion to achieve either royalty and/or streaming opportunities. So we continue on with good discipline in what we are trying to achieve in a very simple goal of creating another Canadian Malartic or Eleonore style royalty but at a much lower cost than the traditional ones that are being auctioned off in the tank processes right now. So, when we are doing that piece of business, we are looking to earn a superior return to the overall royalty and streaming space.

Very good. Thanks very much. That's it for me.

There are no further questions at this time. I will turn the call back over to the presenters.

Thank you very much, everybody. Hopefully, we can help you with any modelling issues that you may have. I know that we've been working on the acceptance of the incubator accelerator model within the market space and we look forward to any feedback that you could give us in terms of making sure that we have transmitted all the information that will help you look at the opportunity here. We are currently trading about 1.4x to 1.5x NAV. So there is a gap here for shareholders to take advantage of, as we hope to close that valuation gap as we move forward into Q4 and into Q1 of next year. I thank everybody for participating today.

This concludes today's conference call. You may now disconnect.