Osisko Gold Royalties Ltd (the “Company” or “Osisko”) (OR: TSX & NYSE) today announced its consolidated financial results for the third quarter of 2024. Amounts presented are in Canadian dollars, except where otherwise noted.

Highlights

  • 18,408 gold equivalent ounces (“GEOs1”) earned (23,292 GEOs in Q3 20232);
  • Revenues from royalties and streams of $57.3 million ($62.1 million in Q3 2023), exclusive of 1,595 GEOs earned but not sold due to quarter-end timing;
  • Cash flows generated by operating activities of $47.2 million ($43.5 million in Q3 2023);
  • Quarterly cash margin3 of 55.1 million or 96.3%;
  • Net earnings of $18.3 million, $0.10 per basic share (net loss of $20.0 million, $0.11 per basic share in Q3 2023);
  • Adjusted earnings4 of $28.8 million, $0.15 per basic share ($18.3 million, $0.10 per basic share in Q3 2023);
  • Repayment of $27.3 million under the revolving credit facility (and repayment of $115.2 million year-to-date in 2024);
  • Cash balance of $58.5 million and debt of $80.7 million as at September 30, 2024;
  • Acquisition of a 6% gold stream (until 225,000 ounces are delivered, and then 3.6% thereafter) by Osisko Bermuda Limited (“Osisko Bermuda”) on SolGold plc's (“SolGold”) Cascabel copper-gold development project in Ecuador for a total of US$225.0 million, payable upon achieving certain milestones;
  • Entered into a binding agreement to acquire a 1.8% gross revenue royalty (“GRR”) from Tembo Capital Mining Fund II (“Tembo”) on Spartan Resources Limited’s Dalgaranga Gold Project (“Dalgaranga”) in Western Australia for US$44 million, and a 1.35% GRR on additional regional exploration licenses in proximity to Dalgaranga from Tembo for US$6 million;
  • First delivery of copper received by Osisko Bermuda from Metals Acquisition Limited under the CSA copper stream;
  • First payment received from Agnico Eagle Mines Ltd. under the Akasaba West 2.5% NSR royalty (partial coverage);
  • Appointment of Ms. Wendy Louie to the Company's Board of Directors as an Independent Director; and
  • Declaration of a quarterly dividend of $0.065 per common share paid on October 15, 2024 to shareholders of record as of the close of business on September 30, 2024.

Subsequent to September 30, 2024

  • Declaration of a quarterly dividend of $0.065 per common share payable on January 15, 2025 to shareholders of record as of the close of business on December 31, 2024;
  • Osisko added to the Solactive Global Silver Miners Total Return Index; the underlying index that is tracked by the Global X Silver Miners ETF (“SIL”), pursuant to the index's semi-annual ordinary adjustment, effective November 1, 2024; and,
  • The resignation of Mr. Robert Krcmarov from the Board of Directors in order to assume the role of President & CEO of Hecla Mining Company.

Jason Attew, President & CEO of Osisko commented: “Osisko had a solid third quarter and remains on track to achieve its 2024 revised guidance range of 77,000 to 83,000 GEOs delivered. On the last day of the quarter, Osisko also announced an agreement to purchase a royalty on Spartan’s Dalgaranga Gold Project in Western Australia, an asset that checks all of our boxes in terms of near-term production and cash flow, top-tier mining jurisdiction, management quality and significant exploration upside. This accretive transaction is expected to close shortly upon customary approval from Australia’s Foreign Investment Review Board, and will provide incremental growth to Osisko’s peer-leading GEO delivery growth profile within the next two-to-three years.

Catalysts continued to crystallize for Osisko during the third quarter, most notably first deliveries under the CSA copper stream, first production at G Mining Ventures’ Tocantinzinho gold mine, and finally Gold Fields closing its acquisition of Osisko Mining to consolidate 100% of the Windfall gold project. Looking ahead into the next several months, we’re still expecting to see improved production at Capstone’s Mantos Blancos mine, as well as commissioning and first gold production from the Namdini gold project, both of which will serve as key incremental GEO delivery growth drivers for 2025 and beyond.”

Mr. Norman MacDonald, Chair of Osisko’s Board of Directors commented: “Rob has been an active and engaged independent member of Osisko’s Board for 2 years, and over this period, the Company has benefitted significantly from his dedicated leadership combined with his technical experience. On behalf of the Board, management and the Company’s shareholders, I would like to congratulate Rob on his new role as President and CEO of Hecla and wish him all the best in his future endeavors.”

Q3 2024 RESULTS CONFERENCE AND WEBCAST CALL DETAILS

Conference Call: Wednesday, November 6th, 2024 at 5:00 pm ET
   
Dial-in Numbers: (Option 1) North American Toll-Free:  1 (800) 717-1738 Local – Montreal: 1 (514) 400-3792 Local – Toronto: 1 (289) 514-5100 Local – New York: 1 (646) 307-1865 Conference ID: 83490
   
Webcast link: (Option 2) https://viavid.webcasts.com/starthere.jsp?ei=1691902&tp_key=a7c42fad9d
   
Replay (available until Friday, December 6th at 11:59 PM ET): North American Toll-Free: 1 (888) 660-6264 Local – Toronto: 1 (289) 819-1325 Local – New York: 1 (646) 517-3975 Playback Passcode: 83490#
   
  Replay also available on our website at www.osiskogr.com
   

Qualified Person

The scientific and technical content of this news release has been reviewed and approved by Guy Desharnais, Ph.D., P.Geo., Vice President, Project Evaluation at Osisko Gold Royalties Ltd, who is a “qualified person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).

About Osisko Gold Royalties Ltd

Osisko Gold Royalties Ltd is an intermediate precious metal royalty company which holds a North American focused portfolio of over 185 royalties, streams and precious metal offtakes, including 20 producing assets. Osisko’s portfolio is anchored by its cornerstone asset, a 3-5% net smelter return royalty on the Canadian Malartic Complex, home to one of Canada’s largest gold mines.

Osisko’s head office is located at 1100 Avenue des Canadiens-de-Montréal, Suite 300, Montréal, Québec, H3B 2S2.

For further information, please contact Osisko Gold Royalties Ltd:
Grant Moenting Vice President, Capital Markets Tel: (514) 940-0670 x116 Cell: (365) 275-1954 Email: gmoenting@osiskogr.com Heather Taylor Vice President, Sustainability and Communications Tel: (514) 940-0670 x105 Email: htaylor@osiskogr.com
   

Notes:

(1) Gold Equivalent OuncesGEOs are calculated on a quarterly basis and include royalties and streams. Silver ounces and copper tonnes earned from royalty and stream agreements are converted to gold equivalent ounces by multiplying the silver ounces or copper tonnes by the average silver price per ounce or copper price per tonne for the period and dividing by the average gold price per ounce for the period. Diamonds, other metals and cash royalties are converted into gold equivalent ounces by dividing the associated revenue by the average gold price per ounce for the period.

 

  Average Metal Prices and Exchange Rate    
       
    Three months ended September 30,  
    2024     2023  
             
  Gold (i) $2,474     $1,928  
  Silver (ii) $29     $24  
  Copper (iii) $9,210     $8,356  
             
  Exchange rate (US$/Can$) (iv) 1.3641     1.3414  

 

  (i) The London Bullion Market Association’s pm price in U.S. dollars per ounce.
  (ii) The London Bullion Market Association’s price in U.S. dollars per ounce.
  (iii) The London Metal Exchange’s price in U.S. dollars per tonne.
  (iv) Bank of Canada daily rate.

 

(2) Three months ended September 30, 2023 (“Q3 2023”).
   
(3) Non-IFRS MeasuresThe Corporation has included certain performance measures in this press release that do not have any standardized meaning prescribed by IFRS Accounting Standards including cash margin in dollars and in percentage. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS Accounting Standards. As Osisko’s operations are primarily focused on precious metals, the Corporation presents cash margins as it believes that certain investors use this information, together with measures determined in accordance with IFRS Accounting Standards, to evaluate the Corporation’s performance in comparison to other companies in the precious metals mining industry who present results on a similar basis. However, other companies may calculate these non-IFRS measures differently.
   

Cash Margin (in thousands of dollars and in percentage of revenues)

Cash margin (in thousands of dollars) represents revenues less cost of sales (excluding depletion). Cash margin (in percentage of revenues) represents the cash margin (in thousands of dollars) divided by revenues.

    Three months ended September 30,     Nine months ended  September 30,  
    2024     2023     2024     2023  
    $     $     $     $  
                         
  Royalty interests              
  Revenues 38,472     37,410     129,252     115,911  
  Less: cost of sales (excluding depletion) (66 )   (193 )   (316 )   (533 )
  Cash margin (in dollars) 38,406     37,217     128,936     115,378  
                 
  Depletion (2,763 )   (5,972 )   (13,658 )   (18,430 )
  Gross profit 35,643     31,245     115,278     96,948  
                 
  Stream interests              
  Revenues 18,783     24,659     53,600     66,245  
  Less: cost of sales (excluding depletion) (2,075 )   (4,144 )   (5,884 )   (12,105 )
  Cash margin (in dollars) 16,708     20,515     47,716     54,140  
                 
  Depletion (6,753 )   (10,922 )   (17,795 )   (24,926 )
  Gross profit 9,955     9,593     29,921     29,214  
                 
  Royalty and stream interests                      
  Total cash margin (in dollars) 55,114     57,732     176,652     169,518  
  Divided by: total revenues 57,255     62,069     182,852     182,156  
  Cash margin (in percentage of revenues) 96.3 %   93.0 %   96.6 %   93.1 %
                 
  Total – Gross profit 45,598     40,838     145,199     126,162  

 

(4) Adjusted earnings and adjusted earnings per basic shareAdjusted earnings is defined as: net earnings (loss), adjusted for certain items: foreign exchange gains (losses), impairment charges and reversal related to royalty, stream and other interests, changes in allowance for expected credit losses, write-offs and impairment of investments, gains (losses) on disposal of assets, gains (losses) on investments, share of income (loss) of associates, transaction costs and other items such as non-cash gains (losses), as well as the impact of income taxes on these items. Adjusted earnings per basic share is obtained from the adjusted earnings divided by the weighted average number of common shares outstanding for the period.

 

    Three months ended  September 30,   Nine months ended  September 30,  
    2024   2023   2024   2023  
  (in thousands of dollars, except per share amounts) $   $   $   $  
           
  Net earnings (loss) 18,288   (19,999 ) 12,246   18,810  
           
  Adjustments:        
  Impairment of royalty and streams interests -   17,490   67,832   24,119  
  Foreign exchange (gain) loss (737 ) 3,390   3,582   3,543  
  Share of loss (income) of associates 11,188   4,754   27,863   (8,268 )
  Changes in allowance for expected credit losses and write-offs -   17,349   (1,895 ) 37,480  
  Loss on investments 104   2,513   3   4,482  
  Tax impact of adjustments 5   (7,197 ) (17,904 ) (9,482 )
           
  Adjusted earnings 28,848   18,300   91,727   70,684  
           
  Weighted average number of common shares outstanding (000’s) 186,408   185,304   186,145   184,947  
           
  Adjusted earnings per basic share 0.15   0.10   0.49   0.38  
                   

Forward-Looking Statements

Certain statements contained in this press release may be deemed “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking statements are statements other than statements of historical fact, that address, without limitation, future events, that Osisko will meet its revised guidance estimate, that conditions precedent to the closing of the purchase of the royalty on the Dalgaranga Gold Project will be met and that such transaction will provide incremental growth to Osisko GEOs, that production will improve at Mantos Blancos, and that the commissioning and first gold production from the Namdini project will be achieved in a timely manner. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential”, “scheduled” and similar expressions or variations (including negative variations), or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, most of which are beyond the control of Osisko, and actual results may accordingly differ materially from those in forward-looking statements. Such risk factors include, without limitation, (i) with respect to properties in which Osisko holds a royalty, stream or other interest; risks related to: (a) the operators of the properties, (b) timely development, permitting, construction, commencement of production, ramp-up (including operating and technical challenges), (c) differences in rate and timing of production from resource estimates or production forecasts by operators, (d) differences in conversion rate from resources to reserves and ability to replace resources, (e) the unfavorable outcome of any challenges or litigation relating title, permit or license, (f) hazards and uncertainty associated with the business of exploring, development and mining including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters or civil unrest or other uninsured risks, (ii) with respect to other external factors: (a) fluctuations in the prices of the commodities that drive royalties, streams, offtakes and investments held by Osisko, (b) fluctuations in the value of the Canadian dollar relative to the U.S. dollar, (c) regulatory changes by national and local governments, including permitting and licensing regimes and taxation policies, regulations and political or economic developments in any of the countries where properties in which Osisko holds a royalty, stream or other interest are located or through which they are held, (d) continued availability of capital and financing and general economic, market or business conditions, and (e) responses of relevant governments to infectious diseases outbreaks and the effectiveness of such response and the potential impact of such outbreaks on Osisko’s business, operations and financial condition; (iii) with respect to internal factors: (a) business opportunities that may or not become available to, or are pursued by Osisko, (b) the integration of acquired assets or (c) the determination of Osisko’s PFIC status. The forward-looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the absence of significant change in Osisko’s ongoing income and assets relating to determination of its PFIC status, and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended and, with respect to properties in which Osisko holds a royalty, stream or other interest, (i) the ongoing operation of the properties by the owners or operators of such properties in a manner consistent with past practice and with public disclosure (including forecast of production), (ii) the accuracy of public statements and disclosures made by the owners or operators of such underlying properties (including expectations for the development of underlying properties that are not yet in production), (iii) no adverse development in respect of any significant property, (iv) that statements and estimates relating to mineral reserves and resources by owners and operators are accurate and (v) the implementation of an adequate plan for integration of acquired assets.

For additional information on risks, uncertainties and assumptions, please refer to the most recent Annual Information Form of Osisko filed on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov which also provides additional general assumptions in connection with these statements. Osisko cautions that the foregoing list of risk and uncertainties is not exhaustive. Investors and others should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Osisko believes that the assumptions reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be accurate as actual results and prospective events could materially differ from those anticipated such the forward-looking statements and such forward-looking statements included in this press release are not guarantee of future performance and should not be unduly relied upon. In this press release, Osisko relies on information publicly disclosed by other issuers and third parties pertaining to its assets and, therefore, assumes no liability for such third-party public disclosure. These statements speak only as of the date of this press release. Osisko undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.

     
Osisko Gold Royalties LtdConsolidated Balance SheetsAs at September 30, 2024 and December 31, 2023(Unaudited)
(tabular amounts expressed in thousands of Canadian dollars)
     
  September 30,     December 31,  
  2024     2023  
  $     $  
         
Assets      
       
Current assets      
       
Cash 58,540     67,721  
Short-term investments 15,567     8,200  
Amounts receivable 8,703     6,282  
Other assets 1,147     1,842  
  83,957     84,045  
       
Non-current assets      
       
Investments in associates 85,620     115,651  
Other investments 99,457     93,025  
Royalty, stream and other interests 1,482,179     1,553,111  
Goodwill 111,204     111,204  
Other assets 8,153     8,951  
  1,870,570     1,965,987  
       
Liabilities      
       
Current liabilities      
       
Accounts payable and accrued liabilities 5,779     8,209  
Dividends payable 12,108     11,121  
Lease liabilities 1,214     1,122  
  19,101     20,452  
       
Non-current liabilities      
       
Lease liabilities 5,957     6,879  
Long-term debt 80,746     191,879  
Deferred income taxes 101,364     96,279  
  207,168     315,489  
       
Equity      
       
Share capital 2,113,691     2,097,691  
Contributed surplus 80,081     79,446  
Accumulated other comprehensive income 48,882     28,058  
Deficit (579,252 )   (554,697 )
  1,663,402     1,650,498  
  1,870,570     1,965,987  
           

 

Osisko Gold Royalties LtdConsolidated Balance SheetsAs at September 30, 2024 and December 31, 2023(Unaudited)
(tabular amounts expressed in thousands of Canadian dollars)
                       
  Three months ended September 30,     Nine months ended September 30,  
  2024     2023     2024     2023  
  $     $     $     $  
               
Revenues 57,255     62,069     182,852     182,156  
               
Cost of sales (2,141 )   (4,337 )   (6,200 )   (12,638 )
Depletion (9,516 )   (16,894 )   (31,453 )   (43,356 )
Gross profit 45,598     40,838     145,199     126,162  
               
Other operating expenses              
General and administrative (6,684 )   (11,697 )   (19,177 )   (25,214 )
Business development (1,506 )   (1,337 )   (4,959 )   (4,130 )
Impairment of royalty and stream interests -     (17,490 )   (67,832 )   (24,119 )
Operating income 37,408     10,314     53,231     72,699  
Interest income 1,591     1,115     4,095     5,348  
Finance costs (2,262 )   (6,086 )   (8,832 )   (12,401 )
Foreign exchange gain (loss) 737     (3,390 )   (3,582 )   (3,543 )
Share of (loss) income of associates (11,188 )   (4,754 )   (27,863 )   8,268  
Other (losses) gains, net (104 )   (19,862 )   1,892     (41,962 )
Earnings (loss) before income taxes 26,182     (22,663 )   18,941     28,409  
Income tax (expense) recovery (7,894 )   2,664     (6,695 )   (9,599 )
Net earnings (loss) 18,288     (19,999 )   12,246     18,810  
               
               
Net earnings (loss) per share              
Basic and diluted 0.10     (0.11 )   0.07     0.10  
                       

 

Osisko Gold Royalties Ltd Consolidated Statements of Income (Loss) For the three and nine months ended September 30, 2024 and 2023 (Unaudited)
(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)
                       
  Three months ended September 30,     Nine months ended September 30,  
  2024     2023     2024     2023  
  $     $     $     $  
Operating activities              
Net earnings (loss) 18,288     (19,999 )   12,246     18,810  
Adjustments for:              
Share-based compensation 2,158     3,967     6,532     9,124  
Depletion and amortization 9,846     17,223     32,441     44,248  
Impairment of royalty and stream interests -     17,490     67,832     24,119  
Impairment of investments in associates -     -     -     271  
Changes in expected credit losses of other investments -     17,349     (1,895 )   37,209  
Share of loss (income) of associates 11,188     4,754     27,863     (8,268 )
Change in fair value of financial assets at fair value through profit and loss 104     2,513     3     6,267  
Net gain on dilution of investments -     -     -     (4,842 )
Loss on the deemed disposal of an associate -     -     -     3,057  
Foreign exchange (gain) loss (757 )   3,399     3,583     3,424  
Deferred income tax expense (recovery) 7,024     (3,146 )   4,858     7,584  
Other 151     230     460     713  
Net cash flows provided by operating activities before changes in non-cash working capital items 48,002     43,780     153,923     141,716  
Changes in non-cash working capital items (801 )   (316 )   (4,027 )   (5,410 )
Net cash flows provided by operating activities 47,201     43,464     149,896     136,306  
               
Investing activities              
Acquisitions of short-term investments (1,314 )   (2,676 )   (7,281 )   (6,473 )
Acquisitions of investments -     -     -     (53,279 )
Proceeds on disposal of investments -     5,022     5,177     5,028  
Acquisitions of royalty and stream interests (14,377 )   (26,768 )   (14,377 )   (239,530 )
Other (36 )   (37 )   (43 )   (43 )
Net cash flows used in investing activities (15,727 )   (24,459 )   (16,524 )   (294,297 )
               
Financing activities              
Increase in long-term debt -     19,802     -     206,711  
Repayment of long-term debt (27,339 )   (28,151 )   (115,194 )   (41,614 )
Exercise of share options and shares issued under the share purchase plan 837     57     8,441     10,619  
Normal course issuer bid purchase of common shares (585 )   -     (585 )   -  
Dividends paid (10,747 )   (10,321 )   (31,234 )   (29,366 )
Withholding taxes on settlement of restricted and deferred share units (310 )   -     (3,297 )   (4,349 )
Other 32     (265 )   (1,333 )   (711 )
Net cash flows (used in) provided by financing activities (38,112 )   (18,878 )   (143,202 )   141,290  
               
(Decrease) increase in cash before effects of exchange rate changes on cash (6,638 )   127      (9,830 )   (16,701 )
Effects of exchange rate changes on cash (546 )   594     649     (3,093 )
(Decrease) increase in cash (7,184 )   721     (9,181 )   (19,794 )
Cash – beginning of period 65,724     70,033     67,721     90,548  
Cash – end of period 58,540     70,754     58,540     70,754  
                       
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