Osisko Announces Preliminary Q3 2024 GEO Deliveries, Cash Margin and Reduced Debt Balance

Rhea-AI Summary

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.

Positive

• Earned 18,408 attributable gold equivalent ounces in Q3 2024
• Recorded preliminary revenues of $57.3 million from royalties and streams
• Achieved a high quarterly cash margin of $55.1 million (96.3%)
• Reduced net debt position to $22.2 million
• Made debt repayments of $27.3 million in Q3

Negative

• Revolving credit facility drawn by $80.7 million

Insights

Financial Analyst

Osisko Gold Royalties' Q3 2024 preliminary results show solid performance with 18,408 attributable gold equivalent ounces (GEOs) earned. The company reported $57.3 million in preliminary revenues from royalties and streams, with a impressive cash margin of $55.1 million, or 96.3%.

The company's financial position has improved, with net debt reduced to $22.2 million after debt repayments of $27.3 million. This demonstrates strong cash flow generation and prudent financial management. The available credit facility of $469.3 million plus a $200 million accordion provides ample liquidity for future opportunities.

The increase in average metal prices, particularly gold at $2,474 per ounce compared to $1,928 in 2023, has significantly boosted Osisko's performance. This price environment, coupled with the company's high-margin business model, positions Osisko well for continued strong financial results.

Market Research Analyst

Osisko's preliminary Q3 results demonstrate the strength of the royalty and streaming business model in the current precious metals market. The 96.3% cash margin is exceptionally high, reflecting the low-risk nature of the company's operations and its ability to benefit from rising metal prices without direct exposure to mining costs.

The reduction in net debt to $22.2 million is a positive indicator for investors, as it improves the company's financial flexibility and reduces interest expenses. With a market cap of $3.47 billion, Osisko's debt level is very manageable, potentially allowing for future acquisitions or increased shareholder returns.

The significant increase in gold prices year-over-year (28.3% higher) has been a major tailwind for Osisko. If precious metal prices remain elevated, Osisko is well-positioned to continue delivering strong results, which could drive further share price appreciation and attract investor interest in the royalty and streaming sector.

MONTRÉAL, Oct. 08, 2024 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Company” or “Osisko”) (OR: TSX & NYSE) is pleased to provide an update on its third quarter 2024 preliminary deliveries, revenues and cash margin, as well as on its cash and debt positions as of September 30^th, 2024. All monetary amounts included in this report are expressed in Canadian dollars, unless otherwise noted.

PRELIMINARY Q3 2024 RESULTS

Osisko earned 18,408 attributable gold equivalent ounces¹ (“GEOs”) in the third quarter of 2024.

Osisko recorded preliminary revenues from royalties and streams of $57.3 million during the third quarter and preliminary cost of sales (excluding depletion) of $2.2 million, resulting in a quarterly cash margin² of approximately $55.1 million (or 96.3%).

As at September 30^th, 2024, Osisko’s cash position was $58.5 million. The Company’s revolving credit facility was drawn by $80.7 million at the end of September 2024, with an additional amount of $469.3 million available to be drawn plus the uncommitted accordion of up to $200.0 million. The net debt position as of September 30, 2024 was reduced to $22.2 million during the third quarter following debt repayments of $27.3 million.

Q3 2024 RESULTS CONFERENCE CALL AND WEBCAST DETAILS

Osisko provides notice of its third quarter 2024 results conference call and webcast.

Results Release:	Wednesday, November 6th, 2024 after market close
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, 2024 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

Notes:

The figures presented in this press release, including the cash balance, debt position, 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 September 30,
			2024			2023
	Gold (i)	$2,474			$1,928
	Silver (ii)	$29.43			$23.57
	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)	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 ended September 30, 2024
	Revenues	$57,255
	Less: Cost of sales (excluding depletion)	($2,141		)
	Cash margin (in dollars)	$55,114
	Cash margin (in percentage of revenues)		96.3%

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, 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

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 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.

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. 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.

FAQ

What were Osisko's (OR) GEO deliveries in Q3 2024?

Osisko earned 18,408 attributable gold equivalent ounces (GEOs) in the third quarter of 2024.

What was Osisko's (OR) cash margin in Q3 2024?

Osisko achieved a quarterly cash margin of $55.1 million, or 96.3% of revenues, in Q3 2024.

How much debt did Osisko (OR) repay in Q3 2024?

Osisko made debt repayments of $27.3 million during the third quarter of 2024.

What was Osisko's (OR) cash position as of September 30, 2024?

Osisko's cash position was $58.5 million as of September 30, 2024.

When will Osisko (OR) release its full Q3 2024 results?

Osisko will release its full Q3 2024 results on Wednesday, November 6th, 2024, after market close.