Orogen Royalties estimates 2025 revenue at $13.1M

Executive Summary

• Orogen Royalties Inc. reported record financial performance for the full year and fourth quarter ended December 31, 2025, driven by strong growth in both royalty and prospect generation revenues.
• Full-year 2025 revenue reached $13.1 million (up 32% YoY), with a preliminary pretax net income of $7 million (up 63% YoY) and after-tax net income of $4.1 million.
• The company maintains a strong balance sheet with $25.8 million in working capital and no debt, while providing 2026 production guidance for its key Ermitano asset that implies significant future royalty revenue.

Key Details

• 2025 Full Year Financials:
  • Total Revenue: $13.1 million (up 32% from $9.9 million in 2024).
  • Ermitano Royalty Revenue: $9.6 million (up 22% from $7.9 million).
  • Prospect Generation Revenue: $3.0 million (up 114% from $1.4 million).
  • Preliminary Pretax Net Income: $7.0 million (up 63% from $4.3 million).
  • Preliminary After-Tax Net Income: $4.1 million (up 58% from $2.6 million).
  • Balance Sheet: Working capital of $25.8 million; no debt.
• Q4 2025 Financials:
  • Total Revenue: $6.3 million (up 50% from $4.3 million in Q4 2024; up 259% from Q3 2025).
  • Ermitano Royalty Revenue: $3.1 million (up 29% from $2.4 million).
  • Prospect Generation Revenue: $3.1 million (up 94% from $1.6 million).
  • Preliminary After-Tax Net Income: $2.5 million (down slightly from $2.6 million in Q4 2024).
• 2026 Asset Guidance (Ermitano Mine):
  • Orogen holds a 2% Net Smelter Return (NSR) royalty on First Majestic Silver Corp.'s Ermitano mine (part of the Santa Elena complex in Sonora, Mexico).
  • First Majestic 2026 Production Guidance for Santa Elena complex: 64,000 to 71,000 ounces of gold and 1.3 million to 1.5 million ounces of silver.
  • Orogen estimates >90% of Santa Elena production comes from Ermitano.
  • Estimated 2026 Royalty Revenue from Ermitano: $7.1 million to $10.3 million (based on gold at $4,290/oz and silver at $52/oz).

Notable Quotes

• "We are pleased to deliver another record year of financial performance in 2025, with total revenue increasing 32 per cent to $13.1-million and strong growth across both our royalty and prospect generation businesses," said Paddy Nicol, chief executive officer of Orogen.
• "Consistent production at the Ermitano mine continued to provide a strong royalty base while our prospect generation model delivered exceptional results, more than doubling revenue year over year. Prospect generation is core to our strategy, enabling us to efficiently create new royalties at lower cost and risk while preserving capital. With no debt, significant working capital, an exploration team creating self-funded and alliance-based opportunities and pursuing a pipeline of royalty acquisition opportunities, we expect to continue expanding our royalty portfolio and delivering strong financial performance in 2026."