We conduct due diligence and apply sound investment management practices to mitigate risks and maximize opportunities. We incorporate ESG factors into our investment decision-making process and strive to continually evaluate the effectiveness of our approach to meet, or exceed, industry-best practices and the expectations of our stakeholders.

 

As a capital provider, OR Royalties does not have direct control over the operation or sustainability activities of its mining partners’ operations. However, we recognize that by supporting responsible operators, we can promote responsible resource development through our investments. We take a comprehensive approach to due diligence by reviewing and assessing performance in a range of areas, including ESG, to identify, assess, and mitigate any potential risks before investing in an asset. The Board, particularly the Environmental and Sustainability Committee, regularly monitors potential sustainability issues, and stays informed on any emerging risks through regular updates from the Senior Executive Team.

In 2024 (and continuing into 2025), OR Royalties undertook a thorough review of its due diligence process and framework to enhance its effectiveness in guiding critical decision-making and supporting responsible investment practices. The framework provides a structured overview to guide investigative efforts, mapping out key activities that ensure a thorough and systematic evaluation of risks and opportunities.

Our Approach:

1	Identify and evaluate investment opportunities	Review and assess risks and opportunities, including ESG factors Site visits, where warranted Prepare internal risk dashboard and report
2	Assess investment criteria	Review risk report and proposed mitigations Preliminary investment decision Preliminary commercial discussions
3	Structure and sign agreement	Finalize investment structuring Drafting of definitive agreements, including operating and ESG focused provisions Final investment decision Board approval process
4	Monitor and evaluate assets through the lifetime of the investment	Review and monitor mining partner performance Engage with mining partners to support continuous sustainability improvement Potential collaboration on sustainability initiatives