Good morning, ladies and gentlemen, and welcome to the Osisko Gold Royalties Q3 2024 Results Conference Call. After the presentation, we will conduct a question-and-answer section. [Operator Instruction] Please note, that this call is being recorded today, November 6, 2024 at 5:00 PM Eastern time. I would now like to turn the meeting over to our host for today’s call, Mr. Jason Attew.

Thank you, Joelle. Good evening, everybody, and thanks for being on today's call. I'm Jason Attew, President and CEO of the Osisko Gold Royalties. Procedurally, I will run through the presentation and then we will open up the line for questions. For those participating online via the webcast, you can submit your questions in advance through the webcast platform. Today's presentation will also be available and downloadable online through our corporate website. Please note, that there are forward-looking statements in this presentation for which actual results may differ. Of particular note is that from Q4 2024 onwards, Osisko will be making a change to its presentation currency as it will also be reporting exclusively in US dollars. But for today, please note the basis of presentation will be in Canadian dollars unless otherwise noted. I'm joined today on the call by Fred Ruel, the company's VP, Finance and Chief Financial Officer, as indicated on slide 3, with some of my other colleagues also available as necessary. When looking at Osisko's third quarter and first nine months of 2024, we had a solid first three quarters as it relates to the gold equivalent ounces earned, cash margin, cash flows as well as overall debt reduction, especially when considering the loss of the Eagle Mine royalty as a key contributor in late June of this year. Osisko earned 18,408 gold equivalent ounces in the third quarter, which has us in a good position as of September 30 to achieve our previously published full year 2024 guidance of 77,000 to 83,000 gold equivalent ounces. Osisko's operating cash flows for the period came in at an impressive $47.2 million and a cash margin of 96.3% during the period. More on Osisko's cash margin in a couple of slides. We came true on our commitment…

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session [Operator Instructions] Your first question comes from Ralph Profiti with Eight Capital. Your line is now open.

Thanks, operator. Good afternoon. Jason, I wanted to ask a question on the Dalgaranga production profile, specifically your reference to 2,500 ounces annually, which I believe was a life of mine estimate. When we get into that high-grade core in those early years, do you have a sort of more of a near-term profile? If you look at potential diluted grades, I mean, my numbers come almost double that in the first few years. Just wondering if that is sort of a rational assumption. And then just a follow-up. If we're not going to get a mine plan until the second quarter of 2025, do you anticipate still including it in your next guidance update? Or will you wait?

Thank you, Ralph, for your question. And you noted the most important thing with respect to disclosure from Spark Resources. We will not see publicly the feasibility studies, as I mentioned, into 2025. So it's really difficult for us to comment on a mine plan that hasn't been developed. However, I will pass the microphone over to Guy, who is very familiar with, again, that investment and was one of the bigger advocates here at Osisko of us pursuing and transacting on that. So Guy, please?

Yes. Ralph, you correctly pointed out that the grade, they have potential to hit high grade earlier in the life of mine. We're trying to be a little bit conservative with respect to how those ounces are going through that plant, but there's also a buydown provision, and we don't know what's going to happen with that piece as well. So...

Okay. All right. Fair enough.

Sorry, Ralph, the other point is that the mill allows for 2.5 million tonnes per year. However, the company has sort of been communicating that they'll be using a portion of that, at least in the initial life of mine.

And with respect to your question on the five-year outlook, yes, in February of next year, we will be providing five-year outlook, and you can expect that there'll be some inclusion of Dalgaranga within our five-year outlook.

Okay. Thanks for that clarity. And I apologize if I missed this on Namdini. Are we expecting first revenue, including sort of that one to two-month lag that first gold is ported towards the end of the year. We may not see those first revenues until, say, Q1 or Q2 of 2025?

I think that's a very good assumption. And yes, so yes, Ralph, I think that's what we're expecting here Q1 2025, if again, they pour first gold by the end of this year.

Okay. Thanks, Jason. Thanks, Steve.

Thanks Ralph.

Your next question comes from Kerry Smith with Haywood Securities. Your line is now open.

Thanks operator. Jason, would the Plan B for Dalgaranga when you -- when it closes, I guess you would just draw down on your facility. Is that the plan in the short-term at least?

Yes, that's exactly right, Kerry. Again, it's US$50 million that will be coming out. We expect it's going to be coming out in Q4 of this year. It is subject, as I mentioned, to the -- for approval in Australia. But the plan is to just draw on a revolver facility. But as you also note and note from our quarter this year, we're making close to $50 million in operating cash flow per year -- or sorry, per quarter, especially at these elevated gold prices. So we'll quickly pay that down based on our operating cash flow.

Right. Okay. Okay. That's great. And then as you mentioned, you're going to switch over for calendar 2025 to U.S. dollar reporting then, correct?

Yes, that's correct. So our presentation currencies go forward for 2025 will be in U.S. dollars. Our functional currency still will remain as Canadian dollars.

And with a large proportion of your revenues coming from Canada, would you think about doing any currency hedging then? I mean, I know you wouldn't hedge the commodity, but might you hedge some of the exchange exposure?

Look, that's No, look, it's a good question, Kerry. And given again, we consider any sort of hedging FX, others is effectively a risk management exercise. If we see that there's a discrepancy, for example, today, there is obviously a very strong reaction and a very positive reaction to the U.S. dollar, whether that's -- we believe that's sustainable or not go forward. We, again, will get together as a team and potentially put on some U.S. dollar hedges. But it won't be material, and it's really as a risk management exercise as opposed to any sort of speculation on currency.

Got you. Okay. Okay. Thank you very much.

Thanks Kerry.

[Operator Instructions] Your next question comes from Tanya Jakusconek with Scotiabank. Your line is now open.

Hi. Great. Good evening. I think that's me. I just wanted to ask on the transaction environment. And I know, Jason, you mentioned it's really busy, and maybe you don't get another one in this year, but watch out in the first half of next year. Can you just comment on what you're seeing out there still? Is it in that $50 million to $300 million range? And are you seeing opportunities that require you to do a little bit more -- put different parameters on your transactions like we saw one of your competitors have to put collars in for the transaction they did. So I'm just kind of wondering what the structure is looking like. Has that been changing for you as well?

Thanks, Tanya, really good question. So as I said, the opportunity set is very, very robust. Again, our sweet spot, as we've articulated many, many times, is anywhere between US$50 million all the way up to US$400 million to US$500 million. So it really will depend, case-by-case. And first and foremost, we look at asset quality. And so yes, there's been a number of transactions that we've obviously seen one of our senior peers transact at. It was a transaction that also involved a debt facility. So what I would say around that is we try and be as bespoke to our operating partners or our potential operating partners as possible. But it really comes back to the asset quality. If we think the asset quality is very good and we think the management quality is very good in a jurisdiction that we're comfortable, we'll be as bespoke as we can to be competitive around ensuring that, again, we're disciplined with our capital deployment. And so you're seeing in the marketplace that everybody has to -- it is competitive, but everybody is having to be, again, providing that bespoke solution to some of the operating partners out there.

So would that be -- should I conclude from that, that you would be open to equity and debt, et cetera, and collars if you -- if the opportunity was great and you have to provide that?

Look, for the right asset and the team got excited and knew we were going to actually provide very good returns to our equity holders, yes, I think everything is on the table in terms of what you've seen historically.

Okay. And would most of the opportunities you're seeing still be in the development phase? Or are we seeing any that is more in the production phase?

We're seeing -- I would say we're seeing a lot in the cash flow development stage -- sorry, the cash flowing stage more so. And a lot of it has to do with, obviously, there's a lot of activity in our sector right now. So we're across a number of companies assisting them with acquisition finance. And so those acquisition finance, they're all cash flowing opportunities at this stage. There are also some high-quality development assets that were across from as well. So case by case, but we're -- again, the focus of this team and the company is really to focus on opportunities that will have an impact and hopefully a significant positive accretive impact in the next five years.

Okay. And did I hear correctly that you will be changing your reporting currency to U.S. dollars from Canadian dollars starting in 2025?

That's correct.

Okay. So Q4 will still be Canadian, but starting with Q1, it would be all USD.

And Q4 will be U.S. dollars and then into 2025, it will all be U.S. dollars.

Okay. So Q4 and going forward. Okay. That's great. Thank you for the clarity on that.

There are no further questions at this time. I will now turn the call over to Jason for closing remarks.

Look, thank you very much for everyone participating in this evening. As I said, we had a very solid quarter at Osisko Gold Royalties, and we look forward to coming back and a very -- another solid quarter in Q4. So thank you for your time. Thank you for your support. And if there are any further questions, you know how to get to us. Thank you.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.