-- RBC Capital Markets said Friday that it hosted investor meetings with OR Royalties (OR.TO) chief executive Jason Attew and Grant Moenting, the company's vice president of capital markets.
RBC said it reviewed key questions asked by investors and a summary of management's responses.
When asked why OR was less active in 2025, the company said it would remain disciplined in its capital allocation.
RBC noted that management outlined low success in 2025 due to elevated valuations and returns below target thresholds, increased competition and capital availability, and 25%
of deals were unsecured, which is a non-starter for OR.
As for OR's outlook for return of capital, management expressed willingness to repurchase shares to drive per share growth rather than pursue dilutive acquisitions.
The company said it expects to maintain an opportunistic buyback throughout 2026, contingent on investment opportunities and internal valuation.
OR anticipates royalty sector consolidation to continue, driven by a significant increase of new entrants to an already fragmented industry, RBC said.
Meanwhile, OR's management believes that the opportunity at the Malartic operation in Quebec is largely overlooked. The company owns a 5% net smelter royalty in the mine owned by Agnico Eagle Mines (AEM.TO).
Malartic is currently undergoing a transition from low grade open-pit mining to high grade
underground mining, RBC said.
RBC maintained OR's outperform rating and US$56 price target. The company traded at US$39.65 per share at last look on the New York Stock Exchange.
Price: $54.70, Change: $-0.11, Percent Change: -0.20%