OR Royalties (TSX: OR), formerly Osisko Gold Royalties, saw its Q2 2025 revenue jump 27% to $60.4 million from $47.4 million last year. The surge comes in despite the 2% slip in gold equivalent ounces earned to 19,700 from Q2 2024’s 20,068.
The rally is primarily due to a rise in average gold prices, soaring 40% YoY to $3,280 per ounce. Cash cost per ounce ticked up to $130 from last year’s $115. Gross profit rose 31% to $50.2 million, expanding margin to 83.1%.
However, operating costs climbed faster than sales—general and administrative expenses grew 28% and business-development spend almost doubled—yet the absence of last year’s $49.6 million impairment drove operating income to $41.4 million, versus a $17.6 million loss a year ago.
Net income printed at $32.4 million (or $0.17 loss per share) against a $15.4 million loss last year, while adjusted earnings improved 41% to $34.1 million (or $0.18 per share).
Operating cash flow rose 34% to $51.4 million, but free cash flow was tempered by $17.9 million in royalty and stream acquisitions, pushing total investing outflows to $19.4 million vs $3.7 million last year. Management used the price-driven windfall to repay $40 million on its revolving credit facility, yet still spent $7.9 million on dividends and $5.7 million on tax-related share-unit settlements. Net cash fell $13.4 million in the quarter.
At quarter end, cash sat at $49.6 million, down 16% from December, but long-term debt was slashed 62% to $35.7 million, putting the company in a net-cash position for the first time in several years.
Management reaffirmed full-year guidance of 80,000–88,000 GEOs, implying a back-half weighting that hinges on catalysts such as Capstone’s Mantos Blancos and Alamos Gold’s Island Gold expansion.
OR Royalties last traded at $40.55 on the TSX.
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