Osisko Gold Royalties Ltd (the “
Corporation” or
“
Osisko”) (OR: TSX & NYSE) is pleased to
announce its second quarter 2024 deliveries, revenues and cash
margin, as well as an update on its cash and debt positions as of
June 30th, 2024. In addition, Osisko is also providing some select
asset updates. All monetary amounts included in this report
are expressed in Canadian dollars, unless otherwise noted.
PRELIMINARY Q2 2024 RESULTS
Osisko earned 20,068 attributable gold
equivalent ounces1 (“GEOs”) in the second quarter of 2024.
Osisko recorded preliminary revenues from
royalties and streams of $64.8 million during the second quarter
and preliminary cost of sales (excluding depletion) of $2.2
million, resulting in a record quarterly cash margin2 of
approximately $62.6 million (or 97%).
As of June 30th, 2024, Osisko’s cash position
was approximately $65.7 million, following $44.2 million in
repayments on the Corporation's revolving credit facility during
the second quarter (for total repayments of $87.9 million in
the first half of 2024). The Corporation’s revolving credit
facility was drawn by approximately $109.0 million at the end of
June 2024, with an additional amount of $441.0 million available to
be drawn plus the uncommitted accordion of up to $200.0
million.
SELECT ASSET UPDATES
Eagle Mine (operated by Victoria Gold Corp.)
On June 24th, 2024, Victoria Gold Corp.
(“Victoria”) announced that the heap leach pad at
the Eagle Gold Mine (“Eagle”) in the Yukon Territory experienced a
failure. Operations have been suspended while the site operations
team, along with management and the Yukon government officials
continue to assess the situation and gather information. At this
stage, Victoria has confirmed that there have been no fatalities or
injuries to personnel associated with the incident. Victoria also
confirmed that there had been some damage to infrastructure and a
portion of the failure had left containment.
Subsequently on July 4th, 2024, Victoria advised
that it had received Notices of Default from its lenders under the
Credit Agreement dated December 18, 2020. A default under the Eagle
Royalty Agreement dated April 13, 2018, was also triggered and
consequently, Osisko provided a Notice of Default to Victoria on
July 4, 2024.
Osisko holds a 5% NSR royalty on Eagle until
97,500 ounces of gold have been delivered and a 3% NSR royalty
thereafter. Osisko’s royalty covers the entire Dublin Gulch
property including the reserves on the Eagle and Olive ore deposits
and all of the exploration targets identified by Victoria.
CSA Mine (operated by Metals Acquisition
Limited)
In April 2024, Metals Acquisition Limited
(“MTAL”) presented an updated Mineral Reserve and
Resource Statement based on drilling completed at CSA up to August
2023. Highlights included a 67% increase in mine life to 11 years
(to the end of 2034) based on Mineral Reserves only, compared to a
6-year mine life outlined previously. Mineral Reserves are 14.9
million tonnes (“Mt”) grading 3.3% copper
(“Cu”) and 13 g/t silver (“Ag”).
These increases were achieved after just ten months of ownership
and based on drilling data from only two and a half months
post-closing of the acquisition, with the effective date for the
Reserve and Resource Statement being August 31, 2023. Despite the
near doubling of the Mineral Reserves, CSA still has 4.7Mt grading
4.9% Cu and 15 g/t Ag in the Measured and Indicated Categories and
3.3Mt grading 5.5% Cu and 21 g/t Ag in the Inferred Category that
are not included in the Mineral Reserves and work is underway to
convert these to Mineral Reserve estimates in the future.
Osisko, through its wholly-owned subsidiary
Osisko Bermuda Limited (“Osisko Bermuda”), owns a
100% silver stream on the CSA mine as well as a 3.0-4.875% copper
stream, the latter being the newest production stream in Osisko’s
portfolio, and now active as of June 15th, 2024. The first delivery
under the CSA copper stream to Osisko Bermuda was made in the first
week of July for a total of approximately 74 tonnes of copper
(164,000 pounds), or approximately 300 GEOs. These deliveries were
not included in the second quarter GEO deliveries referenced
above.
Tocantinzinho (operated by G Mining Ventures
Corp.)
In early June 2024, G Mining Ventures Corp.
(“G Mining”) announced that construction of its
flagship Tocantinzinho gold project (“TZ”) in
Brazil remained on track with the first gold pour expected to occur
in the very near term, and with commercial production expected soon
thereafter. Overall physical construction at TZ was approximately
97% complete as of May 31st, 2024. Ore was introduced into the
grinding circuit on June 10th after G Mining received the hot
commissioning permit from the Pará State Environmental Agency,
SEMAS. The commissioning permits allow for the mining and
processing of ore, disposal of tailings as well as the selling and
exporting of gold.
Osisko owns a 0.75% NSR royalty on the
Tocantinzinho project.
Q2 2024 RESULTS CONFERENCE AND WEBCAST CALL
DETAILS
Osisko provides notice of the second quarter
2024 results and conference and webcast call details.
Results Release: |
Tuesday, August 6th, 2024 after market close |
Conference Call: |
Wednesday, August 7th, 2024 at 10:00 am ET |
Dial-in Numbers:(Option 1) |
North American Toll-Free: 1 (800) 717-1738Local – Montreal: 1 (514)
400-3792Local – Toronto: 1 (289) 514-5100Local – New York: 1 (646)
307-1865Conference ID: 66153 |
Webcast link:(Option
2) |
https://viavid.webcasts.com/starthere.jsp?ei=1679304&tp_key=1149f8ec91 |
Replay (available until Monday,
September 9th at 10:00 AM ET): |
North American Toll-Free: 1 (888) 660-6264Local – Toronto: 1 (289)
819-1325Local – New York: 1 (646) 517-3975Playback Passcode:
66153# |
|
Replay also available on our website at www.osiskogr.com |
Notes:
The figures presented in this press release,
including revenues and costs of sales, have not been audited and
are subject to change. As the Corporation has not yet finished its
quarter-end procedures, the anticipated financial information
presented in this press release is preliminary, subject to
quarter-end adjustments, and may change materially.
(1) Gold Equivalent Ounces
GEOs are calculated
on a quarterly basis and include royalties and streams. Silver and
copper earned from royalty and stream agreements are converted to
gold equivalent ounces by multiplying the silver ounces or copper
tonnes earned by the average silver or copper price for the period
and dividing by the average gold price for the period. Diamonds,
other metals and cash royalties are converted into gold equivalent
ounces by dividing the associated revenue earned by the average
gold price for the period.
Average Metal Prices
and Exchange Rate
|
Three months ended June 30, |
|
|
|
2024 |
|
2023 |
|
|
|
|
|
Gold(i) |
$2,338 |
$1,976 |
|
Silver(ii) |
$28.84 |
$24.13 |
|
|
|
|
|
Exchange rate (US$/Can$)(iii) |
|
1.3683 |
|
1.3428 |
|
|
(i) |
The London Bullion Market Association’s pm price in U.S.
dollars. |
|
(ii) |
The London Bullion Market
Association’s price in U.S. dollars. |
|
(iii) |
Bank of Canada daily rate. |
(2) Non-IFRS Measures
The 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
dollars) represents revenues less cost of sales (excluding
depletion). Cash margin (in percentage) represents the cash margin
(in dollars) divided by revenues.
(In thousands of dollars) |
Three months endedJune 30, 2024 |
|
|
|
|
Revenues |
$64,846 |
|
Less: Cost of sales (excluding depletion) |
($2,226 |
) |
Cash margin (in dollars) |
$62,620 |
|
Cash margin (in percentage of revenues) |
96.6% |
|
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 is an intermediate precious metal royalty
company focused on the Americas that commenced activities in June
2014. Osisko holds a North American focused portfolio of over 185
royalties, streams and precious metal offtakes. Osisko’s portfolio
is anchored by its cornerstone asset, a 3-5% net smelter return
royalty on the Canadian Malartic Complex, which is 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 MoentingVice President, Capital MarketsTel: (514) 940-0670
x116Cell: (365) 275-1954 Email: gmoenting@osiskogr.com |
Heather TaylorVice President, Sustainability and CommunicationsTel:
(514) 940-0670 x105Email: htaylor@osiskogr.com |
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, the consequence of
the heap leach failure on the Corporation’s asset related to Eagle,
that mineral resources at CSA will be successfully converted into
mineral reserves, that the development and construction at TZ will
remain on schedule, that financial information may be subject to
year-end adjustments, the availability of the uncommitted accordion
of the credit facility. 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 (d) that financial
information may be subject to year-end adjustments. 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. As regards Eagle, Osisko will
continue to closely monitor information disclosed by Victoria to
assess the impact on the Corporation’s asset related to Eagle.
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.
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