Good morning, ladies and gentlemen, and welcome to the Osisko Gold Royalties Q4 and Year 2024 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, February 20, 2025, at 10 AM Eastern Time. I would now like to turn the meeting over to our host for today's call, Mr. Jason Attew. [Foreign Language]

Good morning, everybody, and thanks for being on today's call. For those of us in Quebec or Ontario, I hope the run on snow shovels will be behind us soon, so we can turn our minds to more temperate outdoor activities. Procedurally, I'll run through our prepared presentation and then, we will subsequently open up the line for question-and-answer session. 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, there are forward-looking statements in this presentation from which actual results may differ. Also, please note that given we have now officially shifted our presentation currency to U.S. dollars, the basis of presentation will all be in USD, unless otherwise noted. I'm joined on the call this morning by Frederic Ruel, the company's Chief Financial Officer and VP, Finance amongst the others as indicated on Slide 3. When looking at Osisko's full year 2024 and as noted in our preliminary Q4 '24 numbers that we released back in early January, the company had a very solid year, all things considered/ Osisko earned 20,005 gold equivalent ounces in the fourth quarter of 2024, which allowed us to end the year at 80,740 GEOs in aggregate, a figure that came in slightly above the midpoint of the company's revised guidance of 77,000 to 83,000 GEOs for the full year 2024. Buoyed by strong precious metals prices, Osisko achieved record annual revenues of $191.2 million at a peer-leading cash margin of 96.5%. Thanks to another strong annual performance from our cornerstone 5% royalty at Agnico Eagle's Canadian Malartic Mine as well as impressive results from our other operating partners. Osisko ended the 2024 year with $59 million in cash and…

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] And your first question comes from Tanya Jakusconek with Scotiabank. Your line is now open.

Great. Good morning. I think that's me. Good morning, team. I just wanted to circle back on the -- firstly, the outline for 2025 and you did mention the 45:55, Jason, for the production profile. Does that mean that Q1 and Q2 are relatively equal? Again, I know pricing changes this, but on what we know today is Q1 -- are Q1 and Q2 equal? And then we see that stronger Q4 and we have a bigger bump in Q3. I'm just trying to understand the year.

Yeah. Look, very good question. Thank you, Tanya. And as you can appreciate, we don't give quarter-to-quarter guidance. However, what we can say is certainly as we said in my remarks that Q2 does pick up. The one of the bigger drivers with our -- obviously our core asset being Canadian Malartic and they've disclosed this will have a weaker-than-anticipated, what we anticipated Q1. So you can think Q1 will be the weakest quarter over the 2025 with obviously some improvement going into Q2, representing again about 45% of the GEOs delivered and then the back half Q3, Q4 and with Q4 having the effectively Q3, Q4 having stronger quarters and making up that 55% of the GEOs delivered over the course of 2025. I hope that provides a little bit more clarity.

Yeah. No, it's -- I was just looking at some of the ramp-ups that you had mentioned, definitely Canadian Malartic made sense and then just Namdini royalty -- Namdini's contribution would be the other one coming in the second half. So I think we got all of the ones in line for that profile. Second question I have has to do on your capital allocation. So second question is on the business itself, the transaction opportunities and then the third is on the dividend and share buyback. So just on my second question, which is the investment in the business. I just wanted to ask again what are the opportunities that you yourself are seeing out there size-wise and sort of, are you focused on production versus development. And then I'm interested in the bigger opportunities that are out there. How big could you go and would you be interested in syndications of any transaction? So let's start there.

There's a lot to unpack there. Thank you, Tanya, for that question. Maybe I'll start firstly with the last question around syndication. Obviously, in 2024, as everyone knows, we did do a syndicated deal with Franco. So I think that answers the question that we're certainly open to doing syndicated deals. We think it makes a lot of sense in certain circumstances. And obviously the deal that we did with Cascabel, there was a unique set of circumstances that benefited both ourselves and Franco. So certainly are open to syndicated deals and that also feeds well or relates to your question on sizing because clearly, if we did do syndicated deals being Osisko and intermediate gold and royalty streaming, we can certainly punch well above our weight and look at transactions around the $1 billion, $1 billion plus again if we did some smart syndication. And again, that flows into the opportunity set. So the opportunity set currently, I would say, is very robust, where our team has certainly got a lot of files that we're working through. I wouldn't say though in caution, the analysts and investors, I wouldn't say it's as frenetic as it was mid-2024. We're certainly seeing some opportunities specifically in the copper space, either being paused and/or groups just doing more studies. And as you can appreciate, these big expansions and/or acquisitions or development builds with base metal copper assets in particular are multi-billion dollar commitments. And again, as you know, obviously, gold has significantly outperformed copper over the past at least six, seven months. So we're starting to see some trepidation, let's just say, by various boards and others of fully endorsing projects that are $1 billion few years spend for which, again, we being at Osisko were looking at doing obviously capital providing…

Yeah. I did have some follow-ups. So just on the transaction, I didn't quite get what size range you are seeing and are the opportunities that you are seeing either in the development, it seems rather than already in production? And are we looking for opportunities in 2030 and beyond? I'm just trying to understand how far out these opportunities from a timing perspective.

So our focus is not 2030 and beyond. We obviously have a responsibility to look at anything that does come in that's of quality. So I will caveat that. In terms of our sweet spot, again, given how we think about our balance sheet, and Fred, our CFO, thinks about our balance sheet. We're very comfortable and this is U.S. dollars of doing transactions between $50 million and $500 million. The majority of the pipeline that we're looking at fits well within that $50 million to $500 million. I would say on a weighted basis, there's more $50 million transactions than $500 million as I think you can appreciate that they're rare, but we certainly have a few opportunities in that $500 million and even slightly above that, but that's really where our sweet spot is, Tanya. And we're seeing plenty of flow that. We think, again, as I stated, if we can get one or two of those transactions across the line in 2025, we'll be very happy because we think that will all accrue to shareholders' benefit.

So if we're looking at a shorter timeframe, I would assume that you would be looking at probably more advanced projects in the development phase to be in this -- a timeframe beyond 2030 or far beyond?

Our criteria -- yeah, our main criteria is either cash flowing assets or assets that will have an impact within our five year outlook. So receiving GEOs, cash flow and consideration prior to the end of again what we put out our five-year outlook to 2029. Again, and there's always exceptions to those, but that's really what our focus is.

And then my last question just circles back to shareholder returns. We didn't touch on any share buybacks. How do you rank your share buyback versus your dividend, in terms of returning capital?

Yeah. So the way we look at share buybacks is certainly a tool. I mean, we did do some share buybacks as you recall, in 2024, a whopping 26,000 shares. I mean, it wasn't much. We know that, but that was directly after, again, we had the disappointment with respect to Eagle and we believed as a management team that from an internal NAV or internal value perspective, there was good value for us to go and buy back shares. And you can see in our disclosure that was slightly below $23, for which we bought back and it was only $26,000, but we're obviously restricted to in terms of volume per day that -- we'd like -- we have liked to bought back a bit more than that. But we'll be, again, disciplined when we think about buybacks as well. If we believe that there's a dislocation in what we think fundamental value is versus what's obviously in the capital markets, we will step in. We can buy up to 9.9 million shares in the marketplace. So again, we will be active if we see the opportunity and really be opportunistic about lowering our share count because as you know, and we've talked about this before, this team in particular is very focused on per share metrics if we can get more exposure to -- for our shareholders to assets on a per share basis like Malartic, like Mantos, like CSA. Those are high-quality accretive transactions for our shareholders.

Okay. Thank you for taking my questions. I'll pass it to somebody else. Thank you.

A pleasure. Stay warm, Tanya. Thank you.

Yes.

[Operator Instructions] Your next question comes from Adrian Day with Adrian Day Asset Management.

Yeah. Good morning. Thank you. You're obviously very comfortable and liked your copper exposure. I'm just wondering a sort of hypothetical question. If an opportunity came along to perhaps exchange your copper assets for a good quality gold asset, would that be something you'd be willing to do?

Look, it's an interesting question, Adrian, and thank you for your question. I think, again, we're an organization that's open and we -- I think we've evidenced in 2024 before that we're quite creative on ensuring that we're open to the transactions and structures that are accretive to shareholder value. We as an organization, we are and be very clear and I've been clear with yourself that we are a precious metal vehicle. We'll continue to be a precious metal vehicle. However, we do like certain base metal commodities. We do have a positive constructive view on copper. If there's opportunities on a high-quality asset that we can pick up some more copper, like what we've done with CSA, we certainly will do that. But to answer directly your question, if we see value and there's a good arbitrage of swapping copper out for precious, it all comes down to whether or not that's going to be accretive to shareholders. So yes is the answer. I think it would be a specific set of circumstances. I don't think it's the easiest kind of transaction to facilitate for a whole host of reasons that you would know, but we certainly would be open to it because again, the main thesis and thrust that we put out from an investment perspective is that we are a precious metals vehicle.

Okay. Now that's helpful. Thank you.

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

Thank you, Joel. Thanks for your attention this morning. We know that all of you are in the midst of a very busy earnings season, so appreciate you calling in. If for whatever reason your question wasn't answered today or you're looking for more information about our business, please don't hesitate to reach out to Grant or any of the other executives as we are very happy to engage and provide further information. In closing, we believe we've laid out the parameters for a very successful 2025 for our shareholders and look further to providing further updates as we progress through our fiscal year 2025. Thank you very much for your attention today.

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