Welcome to our dedicated page for Osisko Gold Royalties news (Ticker: OR), a resource for investors and traders seeking the latest updates and insights on Osisko Gold Royalties stock.
Overview of Osisko Gold Royalties Ltd
Osisko Gold Royalties Ltd (symbol: OR) is a Canada-based intermediate precious metal royalty and streaming company that has been a key player in the mining finance sector since its inception in June 2014. The company focuses primarily on the Americas, with a North American-centric portfolio that includes over 130 royalties, streams, and precious metal offtakes. This business model allows Osisko to generate revenue through agreements tied to the production of precious metals, such as gold and silver, without engaging in the operational complexities and risks of mining itself.
Business Model: Royalties and Streams
Osisko’s core business lies in acquiring and managing net smelter return (NSR) royalties, streams, and similar interests in mining projects. A royalty agreement provides Osisko with a percentage of the revenue or production from a mine, while a streaming agreement allows the company to purchase a portion of a mine’s production at a pre-agreed price. This model ensures a steady income stream that is less volatile than direct mining operations, as it is not directly impacted by operational costs or risks such as labor disputes, equipment failures, or environmental compliance issues.
The company’s portfolio is anchored by five cornerstone assets, including a 5% NSR royalty on the Canadian Malartic mine, the largest gold mine in Canada. This asset provides a significant and stable revenue stream, highlighting Osisko’s strategy of focusing on high-quality, long-life assets. Other key assets include royalties and streams on various projects across North and South America, as well as other regions such as Australia and Africa.
Strategic Equity Investments
In addition to its royalty and streaming agreements, Osisko holds equity stakes in several publicly traded resource companies. These include a 15.5% interest in Osisko Mining Inc., a 12.8% interest in Osisko Metals Incorporated, a 12.7% interest in Falco Resources Ltd., and a 32.7% interest in Barkerville Gold Mines Ltd. This diversification strategy not only provides potential for capital appreciation but also positions Osisko as a strategic partner within the mining ecosystem. However, these investments also expose the company to market risks associated with equity price fluctuations.
Industry Context and Competitive Landscape
Osisko operates within the broader mining finance industry, where royalty and streaming companies provide an alternative to traditional debt or equity financing for mining projects. This sector is characterized by its focus on reducing operational risks while securing long-term revenue streams. Osisko competes with other major players in the royalty and streaming space, such as Franco-Nevada Corporation and Wheaton Precious Metals, by leveraging its North American focus and its strategic selection of high-quality assets.
The company’s emphasis on precious metals, particularly gold, aligns with global demand trends for these commodities as both industrial inputs and investment vehicles. However, the industry faces challenges such as fluctuating commodity prices, geopolitical risks, and regulatory changes. Osisko’s diversified portfolio and focus on stable jurisdictions help mitigate some of these risks, positioning it as a resilient player in the market.
Key Differentiators
- Geographic Focus: A North American-centric portfolio ensures exposure to politically stable and mining-friendly jurisdictions.
- High-Quality Assets: Cornerstone assets like the Canadian Malartic mine provide stable and predictable revenue streams.
- Diversification: The combination of royalties, streams, and equity investments reduces dependency on any single revenue source.
Conclusion
Osisko Gold Royalties Ltd has established itself as a significant player in the precious metals royalty and streaming industry. By focusing on high-quality assets, strategic equity investments, and a diversified portfolio, the company offers a unique value proposition within the mining finance sector. Its business model provides a lower-risk alternative to direct mining operations, ensuring stable revenue streams while maintaining exposure to the lucrative precious metals market.
Osisko Gold Royalties (OR: TSX & NYSE) has announced its first quarter 2025 dividend of C$0.065 per common share. The dividend will be paid on April 15, 2025 to shareholders of record as of March 31, 2025.
The company has confirmed this qualifies as an 'eligible dividend' under the Income Tax Act (Canada). For U.S. shareholders, the USD equivalent will be determined using the Bank of Canada's March 31, 2025 exchange rate.
Osisko has also reminded shareholders about its dividend reinvestment plan (DRIP). Canadian and U.S. residents can participate in the Plan for the upcoming dividend payment. Interested shareholders should contact their financial advisors or Osisko's transfer agent for enrollment details.
Osisko Gold Royalties reported record financial results for 2024, with revenues reaching US$191.2 million and operating cash flows of US$159.9 million. The company earned 80,740 gold equivalent ounces (GEOs), achieved net earnings of $16.3 million ($0.09 per basic share), and adjusted earnings of $97.3 million ($0.52 per basic share).
The company deployed over $287.7 million across three major transactions in 2024, including a 6% gold stream agreement on SolGold's Cascabel project, acquisition of royalties on Dalgaranga Gold project, and amendments to the Gibraltar silver stream. For 2025, Osisko expects GEOs to range between 80,000-88,000 with a 97% cash margin. The company's 5-year outlook projects 110,000-125,000 GEOs by 2029, representing over 30% growth.
Osisko Gold Royalties reported preliminary Q4 2024 results with 20,005 attributable gold equivalent ounces (GEOs), bringing the annual total to 80,740 GEOs, meeting their revised guidance of 77,000-83,000 GEOs. Despite a 14% year-over-year decrease due to operational stoppages at Renard diamond mine and Eagle mine, the company achieved record financial performance.
Q4 2024 saw record preliminary revenues of $79.3 million with a cash margin of 96.2%. Full-year 2024 preliminary revenues reached a record $262.2 million with a 96.5% cash margin. The company ended 2024 with approximately $85.0 million in cash and $135.1 million drawn from their revolving credit facility, with an additional $414.9 million available plus an uncommitted accordion of up to $200 million.
Osisko Gold Royalties (OR: TSX & NYSE) has completed two significant transactions: First, an amendment to its Gibraltar mine silver stream, increasing its attributable silver percentage by 12.5% to 100% for US$12.7 million. The step-down silver delivery threshold has been extended to 6,811,603 ounces. Second, the company closed the acquisition of a 1.8% gross revenue royalty on the Dalgaranga Gold project for US$44 million, plus a 1.35% GRR on nearby exploration licenses for US$6 million.
At Dalgaranga, operator Spartan Resources has achieved key milestones including obtaining underground mining permits, discovering a new high-grade gold zone called "Freak", and reporting a 68% increase in Indicated ounces in an updated Mineral Resource Estimate. Spartan also raised A$220 million to accelerate the project's restart over the next 24 months.
Osisko Gold Royalties (OR: TSX & NYSE) announced the renewal of its Normal Course Issuer Bid (NCIB) Program, approved by the Toronto Stock Exchange (TSX). The company may acquire up to 9,331,275 common shares from December 12, 2024, to December 11, 2025, representing approximately 5% of its issued and outstanding shares as of November 30, 2024. Daily purchases are capped at 73,283 shares, except for block purchases. Shares will be bought at the prevailing market price or at a discount through alternative means and will be canceled post-purchase. The Board believes this will enhance shareholder value. Under the previous NCIB Program, Osisko purchased 26,000 shares at an average price of $22.48 per share.
Osisko Gold Royalties provides updates on several key assets in its portfolio. At Mantos Blancos, plant throughput is reaching nameplate capacity of 20,000 tpd. Island Gold District is advancing its Phase 3+ Expansion, with potential for further expansion. Éléonore mine is being sold to Dhilmar for US$795 million. Namdini Gold Mine achieved first gold pour in November 2024. Dalgaranga Project received approvals for underground mining and discovered a new gold zone. Hermosa Project continues construction progress with US$124 million invested in Q3 2024. Multiple other assets showed positive developments, including first royalty payment from Tocantinzinho and advancement at various exploration and development projects.
Osisko Gold Royalties (OR: TSX & NYSE) has declared a fourth quarter 2024 dividend of C$0.065 per common share, payable on January 15, 2025, to shareholders of record as of December 31, 2024. The company reminds shareholders of its dividend reinvestment plan (DRIP) available to residents of Canada and the United States. Shareholders can participate in the DRIP for the upcoming dividend payment by consulting with their financial advisors or contacting the transfer agent directly.
Osisko Gold Royalties reported Q3 2024 financial results with operating cash flows of $47.2 million, up from $43.5 million in Q3 2023. The company earned 18,408 gold equivalent ounces (GEOs) and generated revenues of $57.3 million from royalties and streams. Net earnings were $18.3 million ($0.10 per share), compared to a net loss of $20.0 million in Q3 2023. The company maintained a strong cash margin of 96.3% and ended the quarter with a cash balance of $58.5 million and debt of $80.7 million. Notable developments include the acquisition of a 6% gold stream on SolGold's Cascabel project for US$225.0 million and a binding agreement to acquire royalties on the Dalgaranga Gold Project.
Osisko Gold Royalties (OR: TSX & NYSE) has released preliminary Q3 2024 results. The company earned 18,408 attributable gold equivalent ounces (GEOs) and recorded preliminary revenues of $57.3 million from royalties and streams. With a cost of sales of $2.2 million, Osisko achieved a quarterly cash margin of $55.1 million (96.3%).
As of September 30th, 2024, Osisko's cash position stood at $58.5 million. The company's revolving credit facility was drawn by $80.7 million, with an additional $469.3 million available plus an uncommitted accordion of up to $200.0 million. Osisko's net debt position was reduced to $22.2 million following debt repayments of $27.3 million in Q3.
The company will host its Q3 2024 results conference call on November 6th, 2024, after market close.
Osisko Gold Royalties (OR: TSX & NYSE) has announced a binding agreement to acquire a 1.8% gross revenue royalty on the Dalgaranga Gold project and a 1.35% gross revenue royalty on additional regional exploration licenses in Western Australia. The total consideration for the transaction is US$50 million, with US$44 million for the Dalgaranga Royalty and US$6 million for the Exploration Royalty.
Key highlights of the transaction include:
- Exposure to a premium gold development project in Western Australia
- Near-term cash flow potential with first production likely within 2 years
- Significant geological potential with ongoing high-grade discoveries
- Fully-permitted processing plant and established infrastructure
- High-grade, long-life, and potentially low-cost future gold mine
- Large and prospective exploration licenses
The transaction is subject to approval from Australia's Foreign Investment Review Board, expected in the coming weeks.
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