The Bull Case For OR Royalties (TSX:OR) Could Change Following Renewed 5% Share Buyback Plan

• Earlier this week, OR Royalties Inc. renewed its normal course issuer bid, receiving Toronto Stock Exchange approval to repurchase and cancel up to 9,399,294 shares, or 5% of its outstanding float, through December 11, 2026.
• The board’s decision signals confidence in the company’s capital position and prioritizes returning capital by shrinking the share base for remaining investors.
• We’ll now look at how this renewed share buyback, and the planned 5% reduction in share count, shapes OR Royalties’ investment narrative.

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What Is OR Royalties' Investment Narrative?

To own OR Royalties, you need to be comfortable with a royalty model that converts a relatively lean operating footprint into growing gold equivalent ounces, while accepting a premium valuation and some governance turnover. The renewed buyback fits that story by reinforcing management’s focus on capital returns alongside the regular dividend, but its impact on near term catalysts still looks modest, especially given the company has not meaningfully used prior programs. The real drivers remain execution against 2025 GEO guidance, the quality and timing of partner mine ramps, and how clean future earnings look after the recent one off gain that inflated reported profits. On the risk side, paying a high multiple for low double digit forecast returns on equity, with a relatively new board, leaves less room for disappointment if growth underwhelms.

However, investors should also weigh how much they are paying for that growth story. OR Royalties' shares have been on the rise but are still potentially undervalued by 20%. Find out what it's worth.

Exploring Other Perspectives

Four fair value views from the Simply Wall St Community span roughly CA$38 to just over CA$62, underlining how far apart individual expectations can sit. Set against OR Royalties’ premium earnings multiple and reliance on partners to hit GEO targets, that gap in opinion highlights why it can help to compare several viewpoints before deciding how this buyback and growth profile fit into your own expectations.

Explore 4 other fair value estimates on OR Royalties - why the stock might be worth as much as 26% more than the current price!

Build Your Own OR Royalties Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your OR Royalties research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free OR Royalties research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate OR Royalties' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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