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DATE
Thursday, Nov. 12, 2026
CALL PARTICIPANTS
- President and Chief Executive Officer - Jason Attew
- Chief Financial Officer and Vice President, Finance - Frédéric Ruel
TAKEAWAYS
- Revenue -- $90.2 million, representing a 26% increase year over year driven by higher realized precious metal prices.
- Gold Equivalent Ounces (GEOs) -- 20,237 ounces, remaining stable compared to 20,326 ounces in the third quarter of 2025.
- Adjusted Net Earnings -- $53.9 million, or $0.29 per share, increasing 29% year over year reflecting strong asset performance and price appreciation.
- Cash Margin -- $87.3 million, or 96.8% of revenue, due to the low-cost structure of the royalty and stream portfolio.
- Operating Cash Flow -- $67.6 million, or $0.42 per share, representing a 21% increase on a per-share basis.
- Full-Year 2026 Guidance -- 80,000 to 90,000 GEOs, reaffirmed by management as tracking toward the midpoint of the range.
- Barnat Pit Wall Incident -- 3,000 to 4,000 GEOs estimated negative impact in 2026, resulting from remediation efforts at the Canadian Malartic mine.
- 2030 GEO Outlook -- 120,000 to 135,000 ounces, representing approximately 50% growth over the 2026 guidance range.
- Realized Gold Price -- $4,304 per ounce, compared to $3,434 per ounce in the third quarter of 2025.
- Realized Silver Price -- $64.47 per ounce, compared to $39.40 per ounce in the prior-year period.
- Share Repurchases -- $29.1 million spent to buy 1,007,496 shares in the quarter, completing the active buyback program for the year.
- Cuiú Cuiú Mine -- First gold poured on Sept. 10, 2026, marking the addition of a new heap leach asset in Brazil to the producing portfolio.
- Amulsar Mine -- First gold poured on Oct. 10, 2026, expanding the company's producing asset count to 25.
- Canadian Malartic Production -- 5,838 gold GEOs and 55 silver GEOs earned, despite the north wall remediation at the Barnat pit.
- Odyssey Mine Tonnes -- 391,000 tonnes mined, setting a new record for the underground operation at the Canadian Malartic Complex.
- SolGold Buyback -- $35 million cash consideration, expected by Nov. 30, 2026, following the exercise of a repurchase option on the Cascabel royalty.
- Galiano Deferred Payment -- $30 million expected in the fourth quarter, representing the first of two payments from the Gold Fields portfolio acquisition.
- Mantos Blancos Performance -- 3,231 silver GEOs earned, meeting management's expectations for the emblematic Chilean asset.
- Available Liquidity -- approximately $1 billion, following an increase of the revolving credit facility to $850 million.
- South32 Hermosa Project -- Main and ventilation shafts are expected to reach the primary production level during the December quarter.
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RISKS
- Jason Attew indicated, "San Gabriel remains constrained by the back end of Buenaventura's plant," which is expected to result in a measured ramp-up period of 18 to 24 months.
- Attew noted that Amulsar stream deliveries to the company start only "once the operator repays its $150 million construction loan," which may delay first receipts until late 2027 or early 2028.
- Management confirmed that the Barnat pit wall incident will result in "60,000 to 80,000 fewer ounces in the second half of 2026" at the operator level.
SUMMARY
OR Royalties Inc. (NYSE:OR) reported financial results for the third quarter of 2026 and confirmed its annual guidance for gold equivalent production. Management stated that three development projects commenced production during the year, increasing the total count of producing assets to 25. The company reported revenue growth driven by higher precious metal prices and indicated that the business model maintained a cash margin of 96.8%. Strategic developments during the period included the expansion of the revolving credit facility and the completion of a share repurchase program. Management also detailed a long-term growth trajectory that projects a 50% increase in gold equivalent production by 2030 through the development of fully funded assets.
- The company reported that the first phase of shaft sinking at Canadian Malartic finished at 1,586 meters on July 9, 2026, with shaft-hoisted ore planned for the second quarter of 2027.
- CEO Attew stated, "The 2030 outlook of 120,000 to 135,000 GEOs is roughly 50% growth over this year and it requires no contingent capital."
- Management expects the concentration of Canadian Malartic in the portfolio to decrease from 38% in 2026 to 21% by 2030 because other assets like Amulsar and Windfall are expected to grow around it.
- Attew stated, "The royalty runs with the land," in reference to the security of the company's 5% interest in the Eagle mine while the asset is in receivership.
- The company increased its revolving credit facility from $650 million to $850 million to support potential acquisitions in the $50 million to $300 million range.
- CEO Attew noted that the 2030 outlook excludes potential increases from the Spring Valley royalty coverage and the Murray Brook stream.
INDUSTRY GLOSSARY
- GEOs: Gold Equivalent Ounces, a metric used to convert different metal production into a single unit based on relative prices.
- NSR: Net Smelter Return, a royalty based on the value of production less certain costs such as smelting and refining.
- NCIB: Normal Course Issuer Bid, a method for a company to repurchase its own shares on the open market.
- Heap Leach: A mining process where precious metals are extracted by leaching minerals from a pile of crushed ore.
- LBMA: London Bullion Market Association, which sets international standards for the precious metals market.
Full Conference Call Transcript
Operator: Good morning, ladies and gentlemen and welcome to OR Royalties Q3 2026 Results Conference Call. [Operator Instructions] Please note this call is being recorded today, November 12, 2026 at 10:00 a.m. Eastern Time. I would now like to turn the meeting over to your host for today's call, Mr. Jason Attew. [Foreign Language].
Jason Attew: Good morning, everyone and greetings from Antofagasta. Our Board and management team are in Chile this week. And the day before yesterday, we had the privilege of visiting Mantos Blancos, our second-largest GEO contributor this quarter. This year, Mantos Blancos celebrates 65 years of continuous operation, one of the emblematic mines of Northern Chile. So congratulations to everyone who has worked there over those 6.5 decades. I also want to thank the Capstone team on-site, Fernando, Felipe, Antonio and Christian, among others, for their hospitality, their candor and the quality of the dialogue. There is no substitute for standing on the asset to understand both its challenges and its opportunities. Couple of housekeeping notes before we get going.
Please note that the news release and the regulatory filings are available on our website, on EDGAR and SEDAR+. If you're logging into the webcast, we will advance the slides for today's presentation, which is also available in the Investors section of our website. Please also note, there are forward-looking statements in this presentation from which actual results may differ and that the amounts presented and discussed will be in U.S. dollars unless otherwise noted. Fred Ruel, our CFO, is with me and will take you through the Q3 numbers momentarily. Three things to take away from our third quarter of 2026. Firstly, the model did its job.
We earned 20,237 GEOs, essentially the same as the 20,326 a year ago and turned them into 26% more revenue and 21% more operating cash flow because $0.968 of every revenue dollar is cash margin. In addition, adjusted earnings per share were up 29%. Second, the greenfield pipeline is now producing. Cuiú, a heap leach mine in Brazil, poured its first gold on September 10. And in Armenia at Amulsar, the heap leach asset poured its first gold on October 10. Those, combined with Dalgaranga, which we announced last quarter, have provided our company and our shareholders exposure to 3 new mines, which puts the number of producing assets for our company to 25. Thirdly, our guidance holds.
The 63,734 GEOs through 9 months, which is up 8% year-over-year, is tracking roughly to the midpoint of the 80,000 to 90,000 GEO annual guidance that we provided in February and that's after absorbing the Barnat pit wall incident. What went the other way this quarter? Barnat first. Agnico completed remediation of the north wall during the quarter and resumed mining in the unaffected areas of the pit on September 27. Their estimate of the impact is unchanged, 60,000 to 80,000 fewer ounces in the second half of 2026 and up to 150,000 in each of 2027 and 2028.
At our 5% royalty, that's roughly 3,000 to 4,000 GEOs out this year and up to about 7,500 GEOs a year in 2027 and 2028. Those are our numbers, not Agnico's and they're already inside our guidance. In the quarter itself, GEOs from Canadian Malartic came in modestly ahead of our own expectations, helped by Odyssey, where a record 391,000 tonnes were mined and East Gouldie produced 27,250 ounces. Important to note that Agnico is hosting a Capital Markets Day on November 18, where we'll be looking for more information on various assets, not only at Canadian Malartic but also at Marban, AK, Upper Beaver and Hammond Reef, all high-quality projects on ORhich OR Royalties owns various NSR royalty coverage.
Two smaller things that did not land when we said they would. In August, we told you first gold at Amulsar in September. It came on October 10. At CSA, a shipment missed the quarter-end cutoff, so some silver and copper GEOs moved into the fourth quarter. And San Gabriel remains constrained by the back end of Buenaventura's plant. We expect improvement at a measured pace over the next 18 to 24 months and we will not guide ahead of the operator. Scoring ourselves to what we told you in August, Murray Brook closing in the third quarter, it closed in July.
The share buyback, it's done, 1,007,496 shares bought for $29.1 million has -- had proved what to be at our 2026 share price lows. Cuiú commissioning in the fourth quarter, first pour on September 10, ahead of schedule. The Japan Gold option exercised in September, it closed on November 4. The 2030 outlook intact and it still excludes increased GEOs from the additional Spring Valley royalty coverage and the Murray Brook stream we announced earlier this year. Here is the 1 thing you will not find at any other royalty company. There are shafts being sunk under 4 of our assets. And this quarter, every 1 of them moved.
At Canadian Malartic, the first phase of shaft sinking finished on July 9 at 1,586 meters, with shaft-hoisted ore from East Gouldie planned for the second quarter of 2027. At Hermosa, South32 expects both the main shaft and the ventilation shaft will reach the primary production level this December quarter. At Upper Beaver, sinking passed the halfway mark at 732 meters. And finally, at Island Gold, Alamos now expects to commission its shaft in mid-2027, a quarter later than planned. A shaft is the slowest, most capital-intensive thing in mining and our partners are paying for every meter. That is what is bought and paid for 0 contingent capital looks like in practice. Amulsar and Cuiú are on Slide 6.
The 1 mechanic to understand on Amulsar, our stream accrues from first production but deliveries to OR start once the operator repays its $150 million construction loan and the accrued ounces then arrive in equal installments over the following 20 quarters. At current commodity prices, we expect first deliveries in the fourth quarter of 2027 or perhaps the first quarter of 2028. First royalty payments from Cuiú are expected in mid-2027. Briefly across the rest of the portfolio, Mantos Blancos performed to expectations as did CSA. However, on the latter, GEOs earned came in a little light with a shipment that just missed the end of the third quarter. Elsewhere, Dalgaranga continues to ramp up.
Namdini has been performing to expectations, while GEOs from San Gabriel still remain challenged as Buenaventura continues to work through the bottlenecks at the back end of its plant. We'll look to Buenaventura for specific guidance. But for those wanting more color, at its Investor Day the day before yesterday, Buenaventura spoke San Gabriel in some detail and signaled a measured ramp-up over the next 18 to 24 months. Our portfolio currently boasts 25 assets that are in -- currently in production, with the 2 most recent additions already discussed, while royalty -- or, while first royalty and stream payments from both of those assets are expected over the coming quarters.
Four catalysts I'd like to mention: Agnico Eagle's Capital Markets Day on November 18. We expect execution detail on Canadian Malartic, Upper Beaver and Hammond Reef. The full path to 1 million ounces, including the second shaft, we still expect in mid-2027. Windfall. On October 30, Quebec issued Gold Fields a certificate of authorization, the principal environmental approval. And Gold Fields has said that it expects a final investment decision by February 2027, along with its 2026 provisional results. Mantos Blancos, the Phase II pre-feasibility study for Capstone's February 1 Capital Markets Day and Island Gold shaft commissioning in mid-2027, with underground rates targeted at 2,000 tonnes per day by year-end. One line on Eagle.
On October 22, Boroo announced an agreement to acquire Victoria Gold and with it the Eagle mine from the receiver, with closing targeted for December 31, subject to court approval. We clearly saw the announcement from Boroo and their expectation to commit CAD 1.5 billion over the life of mine at Eagle. We are awaiting further information as the sales process advances toward closing in order to understand next steps. Obviously, the fact that the mine is moving from the hands of the receiver into a prospective operator is a positive step toward restarting production at Eagle. It's good for the Yukon, good for Boroo and we'll have more to say when the transaction closes. Moving to Slide 9.
This slide is the answer to the question we get most often. The 2030 outlook of 120,000 to 135,000 GEOs is roughly 50% growth over this year and it requires no contingent capital. Every asset in the growth bar is either producing, in construction, or fully funded by its operator. The point I would draw your eye to is on the right. As that growth arrives, Canadian Malartic's share of our ounces falls from 38% of the 2026 guidance to about 21% of the 2030 outlook, not because Malartic shrinks but because Amulsar, Windfall, Cariboo, Hermosa, Spring Valley, South Railroad, among others, grow around it.
The concentration this year's Barnat event exposed is diluted by the quality growth we've already paid for. On new business, the pipeline is extremely active and our criteria haven't moved. No NAV-dilutive deals and a focus on complementary royalty and stream assets to our already high-quality portfolio. We can afford that selectivity because our growth through 2030, as outlined here on Slide 10, is already 100% bought and paid for with 0 contingent capital required. Beyond that, we don't comment on specific transactions until they're signed and announced. So with that, Fred, over to you for the financial review.
Frédéric Ruel: Thank you, Jason and good morning, everyone. Revenues for the quarter were $90.2 million, up from $71.6 million a year ago, 26% growth on effectively the same amount of GEOs earned, driven by realized prices of $4,304 per ounce of gold and $64.47 per ounce of silver. Cash margin was $87.3 million or 96.8% of revenues, up from $69.3 million or 96.7% last year. Royalties, which carry essentially no cost, contributed $56 million of revenue; streams contributed $34.2 million. Net earnings were $55.4 million, $0.30 per basic share, against $0.44 per share in the same period a year ago.
Higher net earnings in Q3 2025 came from a noncash accounting gain of $54 million on the reclassification of Osisko Gold Group from an associate to a non-associate. At the time, the book value of the investment was revalued at its fair value on that date, which generated a noncash gain. More importantly, however, Q3 2026 adjusted earnings were $53.9 million or $0.29 per share, up 29% year-over-year. Cash flow from operations was $67.6 million, $0.42 per share against $0.34, a 21% increase on a per-share basis compared to Q3 of last year. And as I stated on the last conference call, the per-share line is the one we manage the business to. Turning to the balance sheet.
We ended September with $77 million of cash and $228 million drawn on the revolving credit facility for a net debt position of $151.5 million. Net debt increased slightly compared to the end of last quarter as the draw funded the various capital deployment measures, as already mentioned by Jason earlier on the call, partially offset by $15 million in repayments against the facility during the quarter. Our returns to shareholders, the Board maintained the quarterly dividend at $0.065 per share paid on October 15, our 48th consecutive quarterly dividend, with approximately $310 million returned to our shareholders through dividends to date and a further $0.065 dividend -- $0.065 per share dividend has been declared payable January 15, 2027.
Jason already mentioned the total of roughly 1 million shares repurchased and canceled during the period, which was all completed in mid-July. Year-to-date, the company has repurchased and canceled 1.6 million common shares under the NCIB. At the end of September, the company received a notice from SolGold of its intention to exercise its buyback option under the royalty agreement to repurchase 1/3 of the company's NSR royalty on the Cascabel property for a cash consideration of $35 million. Following the buyback, the company will retain a 0.4% NSR royalty. The buyback is expected to be effective on November 30.
This $35 million would be in addition to a separate $30 million also to be received from Galiano during the fourth quarter, marking the first of 2 deferred payments to be received by OR Royalties as outlined in our announcement with respect to the Gold Fields portfolio acquisition made back in February of this year. In total, that's $65 million in cash flow coming onto the balance sheet in the fourth quarter over and above our expected normal course operating cash flows.
Our capital allocation framework is unchanged: investment into new precious metals royalties and streams, as well as returns to shareholders through the dividend and buybacks, with ongoing debt repayment being considered normal course, all prioritized in whatever order creates the most net asset value per share. In the first half of 2026, that meant new asset acquisitions. In the final quarter of 2026, it could mean more acquisitions or opportunistic share repurchases. Our philosophy is simple: if we don't find and announce any accretive deals for our shareholders over this period and no OR share blocks come our way, then we'll look to reduce the debt drawn from our facility.
With our recently increased revolving credit facility, our balance sheet provides OR Royalties with ample capacity and flexibility for our upcoming capital allocation decisions. Thanks, everyone and back to you, Jason.
Jason Attew: Thank you. That's the end of our remarks. We'll basically provide back to the operator to open it up for some questions and answers.
Operator: [Operator Instructions] Your first question comes from Tanya Jakusconek from Scotiabank.
Tanya Jakusconek: I'm consolidating my 3 into 2. All right. So can I ask on just 2027 outlook? And I know, Jason, you provided what you look like in 2030. And I know 2027 is supposed to be a bit better than 2026 on a GEO basis. Obviously, prices have an impact. But maybe we can just review the assets that are going to contribute on the upside? And what should we be thinking on the downside as well? Just want to make sure at least I have my production correct for 2027. And on that as well, if I could ask about the debt.
I think you mentioned that the debt repayment is lower in priority to share buyback and transaction opportunities. So just want to confirm that. And then I have a second question.
Jason Attew: Yes. No, thank you, Tanya. Appreciate you participating in the call as always. So 2027, as we've stated in the past, we don't give guidance until February of 2027, when we put our results out for Q4. However, as you can appreciate and we talked about today, even from walking us from Q3 to Q4 in order to meet the midpoint of our guidance, Q4 has to do about 5% more than Q3, roughly 21,300 GEOs. And all the ingredients for the Q4 slight step-up all will be in place for 2027. That's obviously CSA and Harmony getting more used to the asset and moving that forward.
As I said in my statement, the CSA shipment that missed September, a full quarter of that mining -- or we'll see that in Q4. The full quarter of mining back in the Barnat pit, Namdini will have the full 2% and the continued ramp-up at Dalgaranga. That's where we're very comfortable, at the midpoint from a Q4 perspective and a lot of the assets that I mentioned will obviously move into 2027. There are a number of our assets that are expanding, as you can appreciate. Some of those assets that you can get more detail from the operators that we expect in 2027 to move are Island Gold, Namdini, as I mentioned, Dalgaranga.
San Gabriel is the one asset that, again, if you go to their investor presentation, it's a lot slower to ramp up than we expected when we first made the announcement. Buenaventura has now basically guided to the next 18 to 24 months. It's -- going to be very cautious on the ramp-up there. And Cuiú, possibly, as I mentioned in my opening remarks, it really will depend on the commodity price complex. But if Amulsar, which did produce first gold on October 10, it is -- is successful in paying off the $150 million construction loan, it is possible that we'll receive some of those GEOs in 2027.
That's really all I can provide until we provide the full guidance in February of 2027, Tanya. But we're always happy to have a conversation with you offline and talk you through where we see some of the catalysts in 2027.
Tanya Jakusconek: Okay. And my second question is just on the pipeline. I always ask about this because from moment to moment, these transactions appear or disappear. So just -- can you just talk a little bit about whether we're still in that $100 million to $300 million range that you talked about last quarter in terms of opportunities? Is that you're -- what you're seeing? Or are we going to the $500 million to $700 million or $1 billion? A couple of them are out there on that. How would you characterize what you're seeing, what the structure of the deals you're seeing and whether you've changed any thoughts about how you would structure your own contracts with this environment?
Jason Attew: So it's an excellent question. Tanya, please keep asking it because quarter-over-quarter, things do change, as you can appreciate. So what all we can tell you is, we're aware of a number of $1 billion-plus streams that are in various stages of processes with various operators around the world. And so as it relates to OR Royalties, as you can appreciate and you know, we have just over $1 billion of available liquidity. And so our balance sheet certainly can do those larger transactions. The question is whether we should.
And the honest answer is that $1 billion, $1.5 billion of upfront capital in a single auction is very unlikely for us because anything of quality, our larger peers, as you can appreciate, have a cost of capital advantage at those sizes. And we've spent at least the last 3 years proving that we will not pay above our hurdle to win a process and essentially have a winner's curse. That discipline is why the returns on what we did with Namdini, Spring Valley, Murray Brook, Gold Fields portfolio are where they are and we think they're peer-leading returns. Now I will provide some distinction around $1 billion deals because $1 billion deals can come in 2 formats.
They can come in a headline value or, as I mentioned before, upfront capital and they're 2 very different things. $1 billion development stream funded against construction milestones over a 2- or 3-year build is, in cash terms, as you can appreciate, $200 million to $400 million a year. If we can match those to a project spend protected by completion tests and security, that's a transaction we can do with -- inside this facility without issuing a share. And it's a structure where we believe as a mid-cap, our speed and flexibility are worth more to a counterparty than our larger peers' balance sheet.
But to answer the question, so $1 billion headline, perhaps, yes, $1 billion, $1.5 billion check on day 1, probably not. But the core for us of our pipeline is still, as I mentioned on the conference call in our Q2, is somewhere between $50 million and $300 million. We still want to obviously be very focused in precious metals, Canada, U.S., the Australias. The ticket sizes in the market may have gone up, as you correctly pointed out but we will continue to be very disciplined on our returns and very focused on the per-share metrics that you're aware of for our shareholders.
Tanya Jakusconek: And Jason, just to complete that, I asked about the change in any -- in the structure of the deals. As you think about this because it is a dynamic environment, are you thinking -- when I say structure of the deals, there's always a stream component, there's an equity component, a debt component and now I see an increase in land package and how would that be different from what you're looking at, or maybe you're looking at something else?
Jason Attew: Yes. So you're absolutely on point. I mean the structure has evolved over the course of time and there's many transactions that involve, as you say, all the components. So we are looking at transactions that effectively do fully fund our counterparties through the various instruments that you mentioned. As long as, again, we have the appropriate security that we're comfortable with and we get the appropriate return for our shareholders, we're comfortable in providing those type of packages to counterparties.
Operator: Your next question comes from John Tumazos from John Tumazos Very Independent Research.
John Tumazos: Looking at your 2030 forecast and the development and exploration projects beyond your forecast, I guess Cascabel is the biggest of those prospective future contributors. Which ones do you think are #2, #3 and #4 that might come in between 2030 and '35?
Jason Attew: Yes. It's a really good question, John. So thank you for that. We do have a long tail of optionality, obviously, within our portfolio. We do see things from 2030 to 2035. We have a nice royalty in an asset called Casino, as you're aware, in the Yukon. I think the biggest driver for us, though, comes back to our major cornerstone asset in Canadian Malartic. The growth to 2030 does not include the second shaft, as I think you're aware and you're going to meet with the Agnico people next week.
The second shaft and the expansion and their journey to 1 million ounces, which also includes, as I said in my opening remarks, a number of assets we have royalties on that comes next decade. So you can think of those 2 assets as the biggest single drivers of our growth beyond 2030. And again, there's obviously Cascabel that is a very -- it's a world-class asset, as I think you know. And now we've got an operator there that really is moving this forward. And we expect, again, in the next decade, we'll be receiving significant GEOs from it.
John Tumazos: And once again, you don't need to contribute any money for those because you've already bought in.
Jason Attew: Everything is bought and paid for. There's no contingent capital associated with the assets that I mentioned.
John Tumazos: How about the lithium in the north of Quebec? You didn't mention that as one of the big early ones. Is that moving a little bit more slowly?
Jason Attew: You're talking PMET's assets, the old -- what was named Corvette, which one you're referring to John?
John Tumazos: The company used to be called Patriot but now it has a big -- an aboriginal name that I can't pronounce.
Jason Attew: Shaakichiuwaanaan. Yes.
John Tumazos: Yes. You got the name.
Jason Attew: So, yes. That one, again, that one, in our estimation, will come in. And again, careful here not to -- the operator has obviously got guidance out there as well. You can follow that in terms of when they expect to actually get production. We have not put it by design in our 2030 outlook. We could -- and it is in our optionality bar from 2030 to 2035. So is there an expectation that, yes, we'll be getting GEOs or lithium product when that's up in operation? Obviously, you've probably heard me say before, Quebec, I believe, is the best mining jurisdiction in the globe.
It's not only got all the components with respect to the geology but it's also got the talent, it's got the regulatory environment. It's got a really conducive environment for projects to move forward. Clearly, this is a critical mineral. But we have not put it, to be very clear, in our 2030 outlook. That may change as things get progressed by PMET. But right now, it's not in there and it continues to sit in the optionality bar for 2030 to 20 -- or 2030 and beyond.
John Tumazos: Horne 5 is another one you didn't mention and Eagle where the -- miraculously Eagle looks like it'll come in '29 or '30.
Jason Attew: Yes. Maybe I'll start with Eagle first because that's obviously quite topical and we've seen the news and I mentioned that Boroo has agreed to buy Victoria Gold and they are committing or expect to commit CAD 1.5 billion. Our 5% NSR interest, it is a registered interest in the property. It's an interest in the land, which is from a security perspective, what you want to have in these situations. What we can tell you and what I said in my remarks, we're obviously following the court process very closely. I think it's inappropriate for us to comment at this stage while it's before the court. The royalty runs with the land.
And as far as we're aware, every party that was in the process has treated it that way. So -- and you're also aware, we took the impairment in 2024. We wrote it down to effectively 0. So anything that might happen within Eagle, the Yukon is just pure upside for ourselves. So again, we're obviously following what's going on. It's important to us and we'll report back when we can and when it's appropriate. With respect to Horne 5, as you know, that's obviously a very, very nice asset in Quebec. It's still subject to permits.
I would suggest you talk to that management team around when the expectation of permits is going to come in but it is just significant upside for us if and when the permits do come to Falco.
John Tumazos: Congratulations. I'm happy to be a shareholder.
Operator: [Operator Instructions] Your next question comes from Derick Ma from TD Cowen.
Derick Ma: Branching off Tanya's questions, liquidity for the entire royalty industry has continued to rise despite very strong deal execution over the past 12 months. If we were to bifurcate the market into sub-billion dollar deals alone, is there enough supply in the market for all the cash that's being generated by the royalty companies, considering especially that not all the payments are upfront? Or does demand kind of outstrip supply without these mega transactions and liquidity for the group will continue to grow? That was a bit long-winded.
Jason Attew: No, excellent question, and thank you for that, Derick. What I would say is, obviously, where the commodity complex is, every single one of the seniors, mid-cap and junior royalty companies are doing incredibly well. Our margins have obviously expanded. The fixed costs for our companies are pretty stable. We're not subject to the inflationary components of the operating partners that we have. What I would tell you is in terms of the opportunity set, it is very, very good. I can just tell you what we're seeing.
And I do believe that the validation by BHP on the Antamina transaction has really got the attention of not only the senior diversifieds but every company out there that has a secondary byproduct in precious. So I do believe -- I talked about our core pipeline being $50 million to $300 million. We certainly are seeing ample opportunity. Our corporate development and our technical team are visiting assets all over the world. From our perspective, from an execution, it will really come down to, again, cost of capital and making sure that we're doing right by our shareholders and doing NAV-accretive deals. So the short answer is, yes, there's plenty of opportunity that we see. [Audio Gap] here.
But the last thing that I would say is if anyone on the line has any questions, we take a lot of pride, any questions, comments, observations, or insight on our business, we take a lot of pride in this management team having full access to our owners. So please do reach out to Grant, Heather. You'll have their contacts or you can find them on the website and we look forward to further engagement. Thank you very much for your time this morning.
Operator: Ladies and gentlemen, this concludes today's conference call. You may now disconnect. Thank you.
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