-- RBC Capital Markets on Tuesday maintained OR Royalties' (OR.TO) outperform rating and US$56 price target.
Singapore-based Boroo has announced it had entered into an exclusivity agreement to potentially acquire the previously operating Eagle gold mine in Yukon from its receiver, PwC. OR maintains a 5% net smelter royalty on the mine.
In June 2024, a catastrophic heap leach failure occurred at the Eagle mine, leading to environmental damage. OR acquired the Eagle royalty in March 2018 for C$98 million.
"We note that no final agreement is in place, and key hurdles to production advancement include rehabilitation of the mine's prior heap leach failure as well as local First Nations approval," RBC said.
RBC added that Boroo is currently in default of its streaming obligation at the ATO operation to stream holder Triple Flag Precious Metals (TFPM.TO).
OR traded at US$36.82 per share at last look Wednesday on the New York Stock Exchange.
Price: $50.72, Change: $-0.74, Percent Change: -1.44%