Good afternoon ladies and gentlemen, and welcome to the Osisko Gold Royalties Q4 and Year-End 2016 Results Conference Call. After the presentation, we will conduct a question-and-answer session. [Operator Instructions] Please note that this call is being recorded today, March 16, 2017 at 11.00 Eastern Standard Time. Today on the call we have Mr. Sean Roosen, Chair of the Board of Directors and Chief Executive Officer of Osisko Gold Royalties and Mr. Bryan Coates, President of Osisko Gold Royalties. I would now like to turn the meeting over to our host for today's call, Mr. Sean Roosen, Chair of the Board of Directors and Chief Executive Officer of Osisko Gold Royalties. [Foreign Language]

[Foreign Language] Welcome everybody we will be using a PowerPoint that's found on our website titled 2016 Q4 and year-end results. I'd ask you to have a look at the forward-looking statements as we will be making some forward-looking statements in this presentation. To begin, we'll start on Page 3 of the PowerPoint. 2016, a very big year for Osisko Gold Royalties as we moved forward as fourth largest precious metal royalty company in the world with record gold equivalent ounces earned at 38,270 ounces, up 25% from 2015, record revenues at CAD62.7 million plus 38% from 2015, and net cash flows at CAD53.4 million compared to CAD28.9 million for 2015. So on all metrics moving ahead well. Well prepared for 2017. We ended the year with CAD499.2 million for December 31, 2016. We added significant assets to the company throughout the 2016 period both two royalties and some of our other investments. The significant ones in North America, where the Windfall royalty owned and operated by Osisko Mining, the Horne 5 royalty operated by Falco Resources, and Cariboo royalty operated by BGM, and Hermosa operated by Arizona Mining. So pretty good progress on the royalty front. We were also able to achieve a listing on the New York Stock Exchange in 2016 and as of this quarter we paid our tenth dividend. 2017 has been off to a good start with the addition of the Silver Stream from Taseko Mines, deal that we closed about two weeks ago. This immediately increases the cash flow from our profile at Osisko with over 200,000 ounces of silver for the next seven to 14 years including 2017 with an average of 350,000 ounces of year for the remainder for the 23 year reserve life, so a significant asset add in the first…

[Operator Instructions] Your first question comes from the line of Don Blyth with Paradigm Capital. Please go ahead.

Hi. Congratulations on a great year guys. I have more of a broad question on strategy. You guys have telegraphed that you would like to add a third producing royalty of similar quality to your flagships at Canadian Malartic and Éléonore, you've certainly got the cash to do so. Do you really believe there are opportunities out there to do this or is the market starting to move more towards the line of the incubator model as the development projects move closer to production?

We'll have to see how the rest of the year plays out. Obviously, we saw a bit of an increase in access to capital through equity markets in the second half of 2016, but as we look forward, we look at the gold price play action in Q1. We see some opportunities there, but I think we're focused on making sure that we don't miss any of the development asset opportunities that may be generated with the increased enthusiasm on gold projects. But that said and done, the cost of capital on streams is still very comparable to the equity market. So we think there is work to be done.

[Operator Instructions] Your next question comes from the line of Adrian Day with Adrian Day Asset Management. Please go ahead.

Yeah. Good Morning. My question kind of follows on from the last one. Sean, I was wondering how do you view sort of one large cash flowing royalty in stream versus buying three or four smaller ones as you've just done with Taseko, what do you see as the advantage of one big one?

Obviously, if we get exposure to an exceptional world class asset with long mine life, we would not want to miss that opportunity. But at the end of the day, big mines are found with small mines. So our belief is that small mines usually have the potential to become big mines if we're in the right jurisdiction, the right plumbing system. So we're pretty diligent about smaller projects and if deals of sort of CAD50 million to CAD100 million size are well within our willows, but we would certainly enjoy the opportunity to do CAD500 million to CAD1 billion if we see them around.

Your next question comes from the line of [indiscernible] with RBC Capital Markets. Please go ahead.

Good morning, everyone. Just a couple of quick ones for me. First off, do you have an update on either land package you have in Guerrero, whether there's been any movement on potentially monetizing that?

We've had several approaches. There's been quite a few proposals. We'll probably make a decision sometime over the next three to six months. We haven't - last year was pretty busy with other things and we didn't see that it was up much. Exploration, international exploration on the go. This year, we're seeing more interest in that and obviously with the resolution of the last field of Goldcorp and some of the evolution [Technical Difficulty] that's kind of what we're waiting for. So we'll see where that goes, but we would obviously retain royalty rights on it if we were to put it into another asset group, but we haven't made any final decisions as of yet.

That's great. And then just one little modeling question, can you just give the breakdown of the tax pools you still have in Canada and 8 22:28 cash taxes you'd expect to - or when you start to expect?

Elif Levesque, our CFO is with us this morning. So I'll ask Elif to give you an overview.

Hi. So we have currently tax pool development total of 100 million, which is mainly fees and CDEs and we have some additional, about 15 million in terms of share issue expenses, but so, let's say 100 million for fees and CDEs. And right now, if we don't do anything else, I guess we would be expecting to be taxable in 2018, payable in 2019. But this is an ongoing strategy for us, so we're working on it.

And your next question comes from the line of Kerry Smith with Haywood Securities. Please go ahead.

Sean, just on the Guerrero land package, it's really large, is there a big holding cost to hold that ground?

Not at present. It's less than CAD0.5 million at present, but as we move closer to initiating exploration, the land package will go up in holding costs, but right now, it's relatively low.

Your next question comes from the line of Carey MacRury with TD Securities. Please go ahead.

Hi. Good morning. I'm just wondering if you could provide some guidance on what you're expecting for 2017 for G&A and business development.

It's an ongoing piece and we haven't put out any guidance on it as of yet. But if you look at what we did last year, cash costs, G&A and they are separated from equity based compensation, were somewhere around 15 million and then the actual cost of the equity position around, would probably put us in a 20 million, 22 million depending in share price as we move forward. So we did see reduction in the direct cash costs, but some of the RSUs and option packages come for, we will have to consider them under G&A.

Your next question comes from the line of Michael Siperco with Macquarie. Please go ahead.

Hi. Thanks, Sean and team for taking my question. A couple of quick ones. Maybe, given that you did sign your first stream deal in the quarter, and the ongoing CRA issues that some of your peers are saying, can you give us your thoughts on how you're thinking about the future structure of these deals? Should we expect to see anything offshore or is it just a case by case basis?

For us, it's case by case. Obviously, our chosen path forward has been by investing through Flow Through to continue to protect our cash flows and we're able to roll those investments over. So, it's been a pretty successful strategy for us and especially if we've been able to buy Flow Through and companies where the assets are moving up the value chain as we have today. So that's our current strategy and we'll see where we get to.

I'd also add, Michael that we have always, - we've told you that we are continuing to review international structures and most of our deals so far have been focused in Canada. We are looking to establish the platforms that would allow us to compete internationally, structure internationally and we're working towards that and ensuring that the structure also works well.

Perfect. Thank you. Makes sense. And then one other for me, just on the dividend, in 2016, by my math, anyway as you paid out about 25% of operating cash flow, can you talk a little bit, I guess, in the context of the balance sheet, which is a little stronger now with the sale of this vestment and the cash that you're generating going forward, how you think about the dividend?

I think we want to stay in that 20%, 25% payout range, Michael, we want to make sure that we're growing our cash flow assets in accordance with our dividend expectations and we don't want everyone to find ourselves in a position where we can't maintain it. So we've taken a very prudent, but steady approach to it and that's going to be our methodology on a go-forward basis. We want to be a steady eddy on the dividend skews.

So that's the range that we should be looking at sort of similar payout ratio to what we see in '16?

That's correct.

All right. We have no further questions. So I'd like to thank everybody for participating in the call today and we look forward to catching up with everybody as we get into more of the marketing session for April and May and I think that we've set the stage for a pretty good year in 2017 and we hope that you'll join us as we participate in this goal rally.

This concludes today's conference call. You may now disconnect.