Good morning, everyone, and greetings from Antofagasta. Our board and management team are in Chile this week. 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. 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 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 are logging in to the webcast, we will advance the slides for today's presentation, which is also available in the Investor 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. Fréd 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 96.8 cents of every revenue dollar is cash margin. In addition, adjusted earnings per share were up 29%. Second, the greenfield pipeline is now producing.
Cuiú Cuiú, a heap leach mine in Brazil, poured its first gold on September 10th. In Armenia, at Amulsar, the heap leach asset poured its first gold on October 10th. Those, combined with Dalgaranga, which we announced last quarter, have provided our company and our shareholders exposure to three new mines, which puts the number of producing assets for our company to 25. Thirdly, our guidance holds. The 63,734 GEOs through nine months, which is up 8% year-over-year, is tracking roughly to the midpoint of the 80,000-90,000 GEO annual guidance that we provided in February, and that is after absorbing the Malartic pit wall incident. What went the other way this quarter? Malartic first. Agnico completed remediation of the north wall during the quarter and resumed mining in the unaffected areas of the pit on September 27th.
Their estimate of the impact is unchanged, 60,000-80,000 fewer ounces in the second half of 2026, and up to 150,000 in each of 2027 and 2028. At our 5% royalty, that is roughly 3,000-4,000 GEOs out this year and up to about 7,500 a year in 2027 and 2028. Those are our numbers, not Agnico's, and they are 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 tons were mined, and East Gouldie produced 27,250 oz. Important to note that Agnico is hosting a capital markets day on November 18th, where we will 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 which 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 10th. At CSA, a shipment missed the quarter-end cutoff, so some silver and copper GEOs moved into the fourth quarter. San Gabriel remains constrained by the back end of Buenaventura's plant. We expect improvement at a measured pace over the next 18-24 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 is done. 1,007,496 shares bought for $29.1 million, as it proved what to be at our 2026 share price lows. Cuiú Cuiú commissioning in the fourth quarter, first pour on September 10th, 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 one thing you will not find at any other royalty company. There are shafts being sunk under four of our assets, and this quarter, every one of them moved. At Canadian Malartic, the first phase of shaft sinking finished on July 9th at 1,586 m, 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 past the halfway mark at 732 m. 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, zero contingent capital, looks like in practice. Amulsar and Cuiú Cuiú are on slide six. The one 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 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 will look to Buenaventura for specific guidance, but for those wanting more color, at its Investor's Day the day before yesterday, Buenaventura spoke to San Gabriel in some detail and signaled a measured ramp-up over the next 18-24 months. Our portfolio currently boasts 25 assets that are currently in production, with the two most recent additions already discussed. While first royalty and stream payments from both of those assets are expected over the coming quarters. Four catalysts I would like to mention.
Agnico Eagle's Capital Markets Day on November 18th, we expect execution details on Canadian Malartic, Upper Beaver, and Hammond Reef. The full path to a million ounces, including the second shaft, we still expect in mid-2027. Windfall. on October 30th, 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 before Capstone's February 1st Capital Markets Day. Island Gold, shaft commissioning in mid-2027, with underground rates targeted at 2,000 tons per day by year-end. One line on Eagle. On October 22nd, Boroo announced an agreement to acquire Victoria Gold, and with it, the Eagle Mine, from the receiver, with closing targeted for December 31st, 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 is good for the Yukon, good for Boroo, and we will have more to say when the transaction closes. Moving to slide nine. This slide is the answer to the question we get most often. The 2030 outlook of 120,000-135,000 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 Barnett event exposed is diluted by the quality growth we have already paid for. On new business, the pipeline is extremely active, and our criteria have not 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 zero contingent capital required. Beyond that, we do not comment on specific transactions until they are signed and announced.
With that, Fred, over to you for the financial review.
Thank you, Jason. 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 $4,204 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 non-cash 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 non-cash 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, so a 21% increase on a per-share basis compared to Q3 of last year. 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 shareholder through dividends to-date, and a further $0.065 per share of 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 one-third 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 30th. 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 two 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 NAV 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 do not find and announce any accretive deals for our shareholders over this period, and no OR share blocks come our way, then we will 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.
Thank you. That is the end of our remarks. We will basically provide back to the operator to open it up for some questions and answers.
Thank you. Ladies and gentlemen, if you would like to ask a question, please press star one. To withdraw your question, press star two. Please limit yourself to one question and one follow-up. One moment, please, for your first question. Your first question comes from Tanya Jakusconek from Scotiabank. Please go ahead.
Oh, okay. Good morning. Thank you for taking my questions. I am consolidating my three into two. All right. Can I ask on just 2027 outlook? 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. 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? I just want to make sure at least I have my production correct for 2027. 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. I just want to confirm that. Then I have a second question.
Yeah. No, thank you, Tanya. Good morning. Appreciate you participating in the call as always. 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 5% more than Q3, roughly 21,300 GEOs. All the ingredients for the Q4 slight step up are or will be in place for 2027. That's obviously CSA and Harmony getting more used to the assets and moving that forward. As I said in my statement, the CSA shipment that missed in September, a full quarter of that mining, or we'll see that in Q4. The full quarter of mining back in the Barnett Pit.
Namdini will have the full 2%, and the continued ramp-up at Dalgaranga. That's where very comfortable, the midpoint for 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. One of insurers is now basically guided to the next 18 - 24 months. It's going to be very cautious on the ramp-up there, and QAQE.
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 10th, it is successful in paying off the $150 million construction loan, it's 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.
Okay. My second question is just on the pipeline. I always ask about this because, from moment to moment, these transactions appear, disappear. Can you just talk a little bit about whether we're still in that $100 million-$300 million range that you talked about last quarter in terms of opportunities? Is that what you're seeing, or are we going to the $500 million-$700 million or a billion dollars? 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?
It's an excellent question, Tanya. Please keep asking it, because quarter-over-quarter, things do change, as you can appreciate. What we can tell you is we're aware of a number of a billion-dollar-plus streams that are in various stages of processes with various operators around the world. As it relates to OR Royalties, as you can appreciate and you know, we have just over $1 billion of available liquidity. Our balance sheet certainly can do those larger transactions. The question is whether we should. 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.
We've spent at least the last three 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 billion-dollar deals, because billion-dollar deals can come in two formats. They can come in a headline value, or as I mentioned before, upfront capital, and they're very two different things.
A billion-dollar development stream funded against construction milestones over a two or three-year build is, in cash terms, as you can appreciate, $200 million-$400 million a year. If we match those to a project spend protected by completion tests and security, that's a transaction we can do inside this facility without issuing a share.
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. To answer the question, a billion-dollar headline, perhaps, yes. A billion-dollar, billion-and-a-half-dollar check on day one, probably not. The core for us of our pipeline is still, as I mentioned on the conference call, and 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.
Jason, just to complete that, I asked about the change 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've seen increase in land package. How would that be different from what you're looking at, or maybe you're looking at something else?
Yeah. 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. 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.
Okay. Thank you so much for taking my questions, which I hope I squeezed into two.
Thank you, Tanya. Have a great morning.
Your next question comes from John Tumazos from John Tumazos Very Independent Research. Please go ahead.
Thank you for taking my question. 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 number two, t,hree and four that might come in between 2030 and 2035?
Yeah, 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 at an asset called Casino, as you're aware, into 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. You can think of those two assets as the biggest single drivers of our growth beyond 2030.
Again, there's obviously Cascabel that is a very, it's a world-class asset, as I think you know, and now it's got an operator there that really is moving this forward, and we expect, again, in next decade, we'll be receiving significant GEOs from it.
Thank you. Once again, you don't need to contribute any money for those because you've already bought in.
Everything is bought and paid for. There's no contingent capital associated with the assets that I mentioned.
How about the lithium in the north of Québec? You didn't mention that as one of the big early ones. Is that moving a little bit more slowly?
You're talking PMET's asset, the old, what was named Corvette?
The company used to be called Patriot, but now it has a big, an Aboriginal name that I can't pronounce.
Shaakichiuwaanaan. Yes.
Yeah, you are better than me.
Yeah, that one, again, that one, in our estimation, will come in. 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 per 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, there is an expectation that, yes, we will be getting GEOs or lithium product when that is up in operation. Obviously, you have probably heard me say before, Quebec, I believe, is the best mining jurisdiction in the globe. It has not only got all the components with respect to the geology, but it has also got the talent, it has got the regulatory environment, it has 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 is not in there, and it continues to sit in the optionality bar of 2030 and beyond.
Horne five is another one you didn't mention, and Eagle, where miraculously, Eagle looks like it could come in 2029 or 2030.
Yeah, maybe I'll start with Eagle first, because that's obviously quite topical, and we've seen the news, and I mentioned it, Boroo has agreed by 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 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 was treated that way. You're also aware we took the impairment in 2024. We wrote it down to effectively zero.
Anything that might happen within Eagle, the Yukon, is just pure upside for ourselves. 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.
Thank you, and congratulations. I'm happy to be a shareholder.
Thank you, John. Appreciate your support.
Ladies and gentlemen, as a reminder, if you'd like to ask a question, please press star one. Your next question comes from Derick Ma from TD Cowen. Please go ahead.
Thank you. 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? Sorry, that was a bit long-winded.
Yeah, 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. Fixed costs for our companies are pretty stable. We're not subject to the inflationary components for 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. 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. I do believe, I talked about our core pipeline being 50 to 300. 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 are doing right by our shareholders and doing it now the accretive deals. The short answer is yes, there is plenty of opportunity that we see. We think there is enough opportunity for all the parties, especially the five large ones, the large caps and the two mid-caps that you need to be aware of. We could not be more pleased with the opportunities out there, but we just continue to be disciplined as I have preached for many years.
Okay. Thank you, and good luck.
Thanks, Derick.
There are no further questions at this time. I will turn the call back over to Jason Attew for closing remarks.
Thank you, operator, and really do appreciate everybody's time. Again, we're going to sign off from Antofagasta 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.
Ladies and gentlemen, this concludes today's conference call. You may now disconnect. Thank you.