Osisko Reports Q2 2022 Results

Rhea-AI Summary

Osisko Gold Royalties Ltd (OR) reported strong Q2 2022 results, showcasing a record cash margin of $47.8 million from royalties and streams. The company earned 22,243 GEOs, up from 20,178 GEOs in Q2 2021. Consolidated revenues increased to $64.0 million compared to $57.9 million in the same quarter last year. However, net earnings were $17.2 million, a turnaround from the $14.8 million loss in Q2 2021. Operating cash flows from the royalties segment were $35.0 million, reflecting robust cash generation despite operating challenges in other areas.

Positive

• Record cash margin of $47.8 million from royalties and streams.
• Consolidated revenues rose to $64.0 million from $57.9 million year-over-year.
• Net earnings of $17.2 million, reversing a loss from the previous year.
• Increased GEOs earned, rising to 22,243 from 20,178 in Q2 2021.
• Cash margin from royalties and streams at 93%, indicating strong profitability.

Negative

• Operating cash flows from the mining exploration and development segment were negative at ($35.2 million).
• Consolidated cash flows from operating activities of ($0.2 million) compared to $30.9 million in Q2 2021.
• Adjusted loss of $4.7 million, contrasting with net earnings of $20.2 million in Q2 2021.

Record cash margin of $47.8 million from royalties and streams
Operating cash flows from the royalties and streams segment of $35.0 million

MONTRÉAL, Aug. 09, 2022 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE) today announced its consolidated financial results for the second quarter of 2022. Amounts presented are in Canadian dollars, except where otherwise noted.

Q2 2022 Financial Highlights

• 22,243 GEOs¹ earned (Q2 2021 – 20,178 GEOs);
• Consolidated revenues of $64.0 million (Q2 2021 – $57.9 million);
  
  
  • Revenues from the royalties and streams segment² of $51.5 million (Q2 2021 – $57.2 million, including $7.3 million from offtakes);
  • Revenues from the mining exploration and development segment³ (i.e. Osisko Development Corp.) of $12.4 million (Q2 2021 – $0.7 million);
• Consolidated cash flows from operating activities of ($0.2 million) (Q2 2021 – $30.9 million);
  
  
  • Operating cash flows from the royalties and streams segment of $35.0 million (Q2 2021 – $37.3 million);
    
    
  • Operating cash flows from the mining exploration and development segment of ($35.2) million (Q2 2021 – ($6.4) million);

• Cash margin⁴ of 93% from royalties and streams (Q2 2021 – 94%);
• Consolidated net earnings attributable to Osisko’s shareholders of $17.2 million, or $0.09 per share (Q2 2021 – net loss of $14.8 million or $0.09 per basic share);
• Consolidated adjusted loss⁴ of $4.7 million, or $0.03 per basic share (Q2 2021 – net earnings $20.2 million, $0.12 per basic share);
  
  
  • Adjusted earnings from the royalty and stream segment of $25.7 million, or $0.14 per basic share (Q2 2021 – $23.9 million, or $0.14 per basic share); and
  • Adjusted loss from the mining exploration and development segment of $30.4 million, or $0.16 per basic share (Q2 2021 – $3.7 million, or $0.02 per basic share).

Sandeep Singh, President and CEO of Osisko commented: “We benefited from record GEO deliveries and cash margins in Q2 despite two core assets not being at their full run rates, and we expect deliveries to continue to climb steadily in the second half of the year. The markets have become increasingly volatile, but we believe the investment thesis for Osisko has never been stronger with growing cash flows, meaningful diversification, exposure to tier-1 jurisdictions, and countless catalysts in the portfolio. And as evident with our Q2 results, our royalty and streaming business affords protection from a highly inflationary mining environment.”

Financial Highlights by Operating Segment
(in thousands of dollars, except per share amounts)

As a result of the interest held (44.1% as of June 30, 2022) and based on other facts and circumstances, the Corporation consolidates the assets, liabilities, results of operations and cash flows of the activities of Osisko Development Corp. (“Osisko Development”) and its subsidiaries. The table below provides some financial highlights per operating segment. More information per operating segment can be found in the consolidated financial statements and management’s discussion and analysis for the three and six months ended June 30, 2022.

	For the three and six months ended June 30,
	Osisko Gold Royalties (i)					Osisko Development (ii)				Consolidated (v)
	2022			2021		2022		2021		2022			2021
	$	$				$		$		$	$
Cash (June 30, 2022 and Dec. 31, 2021)	312,981			82,291		136,302		33,407		449,283			115,698
Three months ended June 30,
Revenues	51,545			57,246		12,862		775		63,959			57,941
Cash margin (iii)	47,789			47,150		n/a		n/a		47,789			47,150
Gross profit	35,938			35,713		653		-		36,591			35,713
Operating expenses
(G&A, bus. dev and exploration)	(6,200		)	(6,483	)	(10,079	)	(4,649	)	(16,279		)	(11,132	)
Mining operating expenses	-			-		(20,602	)	-		(20,602		)	-
Net earnings (loss)	18,059			16,341		(1,487	)	(41,404	)	16,572			(25,063	)
Net earnings (loss) attributable to Osisko’s shareholders	18,059			16,341		(899	)	(31,100	)	17,160			(14,759	)
Net earnings (loss) per share attributable to Osisko’s shareholders	0.10			0.10		(0.01	)	(0.19	)	0.09			(0.09	)
Adjusted net earnings (loss) (iv)	25,716			23,877		(30,375	)	(3,727	)	(4,659		)	20,150
Adjusted net earnings (loss) per basic share (iv)	0.14			0.14		(0.16	)	(0.02	)	(0.03		)	0.12
Cash flows from operating activities
Before working capital items	40,870			39,026		(24,913	)	(3,708	)	15,957			35,318
Working capital items	(5,905		)	(1,685	)	(10,276	)	(2,716	)	(16,181		)	(4,401	)
After working capital items	34,965			37,341		(35,189	)	(6,424	)	(224		)	30,917
Cash flows from investing activities	2,573			(42,377	)	(97,759	)	(47,464	)	(95,186		)	(89,841	)
Cash flows from financing activities	(125,705		)	(3,542	)	210,225		(1,718	)	84,520			(5,260	)
Six months ended June 30,
Revenues	102,234			124,169		22,029		775		123,357			124,864
Cash margin (iii)	95,297			93,676		n/a		n/a		95,297			93,676
Gross profit	72,148			70,312		653		-		72,801			70,312
Operating expenses
(G&A, bus. dev and exploration)	(12,457		)	(12,511	)	(18,007	)	(9,851	)	(30,464		)	(22,362	)
Mining operating expenses	-					(35,848	)			-
Net earnings (loss)	34,863			29,805		(23,820	)	(45,105	)	11,043			(15,300	)
Net earnings (loss) attributable to Osisko’s shareholders	34,863			29,805		(17,377	)	(33,970	)	17,486			(4,165	)
Net earnings (loss) per share attributable to Osisko’s shareholders	0.20			0.18		(0.10	)	(0.20	)	0.10			(0.02	)
Adjusted net earnings (loss) (iv)	50,559			47,316		(50,982	)	(9,238	)	(423		)	38,078
Adjusted net earnings (loss) per basic share (iv)	0.29			0.28		(0.29	)	(0.06	)	(0.00		)	0.23
Cash flows from operating activities
Before working capital items	80,762			78,565		(42,182	)	(1,285	)	38,580			71,570
Working capital items	(5,290		)	(4,487	)	(9,904	)	(14,842	)	(15,194		)	(19,329	)
After working capital items	75,472			74,078		(52,086	)	(16,127	)	23,386			52,241
Cash flows from investing activities	(13,013		)	(56,158	)	(94,445	)	(69,172	)	(107,458		)	(119,620	)
Cash flows from financing activities	159,823			(11,053	)	247,362		33,895		407,185			22,842

(i)	Osisko Gold Royalties Ltd and its subsidiaries, excluding Osisko Development Corp. and its subsidiaries. Represents the royalty, stream and other interests segment.
(ii)	Osisko Development Corp. and its subsidiaries. Represents the exploration, evaluation and development of mining projects segment.
(iii)	Cash margin is a non-IFRS financial performance measure for the royalties and streams segment which has no standard definition under IFRS. It is calculated by deducting the cost of sales (excluding depletion) from the revenues. Please refer to the Non-IFRS Financial Performance Measures section of the MD&A for the three and six months ended June 30, 2022 or the Notes section at the end of this press release.
(iv)	Adjusted earnings (loss) and adjusted earnings (loss) per basic share are non-IFRS financial performance measures which have no standard definition under IFRS. Refer to the non-IFRS measures provided under the Non-IFRS Financial Performance Measures section of the Corporation’s MD&A for the three and six months ended June 30, 2022 or the Notes section at the end of this press release.
(v)	Consolidated results are net of the intersegment transactions. Refer to the Segment Disclosure section of the Corporation’s MD&A for the three and six months ended June 30, 2022.

Other Highlights

• Publication of the inaugural Asset Handbook and the second edition of the environmental, social and governance (“ESG”) report, Growing Responsibly;
  
• Repayment in full of the outstanding revolving credit facility for $113.1 million;
  
• Osisko Development completed the acquisition of Tintic Consolidated Metals LLC (“TCM”) and related financings, which resulted in the Corporation’s equity ownership in Osisko Development reducing from 70.1% to 44.1%;
  
• Osisko Bermuda Limited (“OBL”) entered into a binding agreement with TCM with respect to the previously announced metals stream (the “Tintic Stream”) on the Trixie test mine (the “Trixie Mine”), as well as mineral claims covering more than 17,000 acres in Central Utah’s historic Tintic Mining District (the “Tintic Property”), for US$20.0 million in exchange for 2.5% of all metals produced and a transfer price of 25% of the spot prices;
  
• Quarterly dividend of $0.055 per common share paid on July 15, 2022 to shareholders of record as of the close of business on June 30, 2022;
  
• In July 2022, the Corporation purchased for cancellation a total of 659,520 common shares for $8.3 million (average acquisition price per share of $12.65) under its 2022 NCIB program; and
  
• Declaration of a quarterly dividend of $0.055 per common share payable on October 14, 2022 to shareholders of record as of the close of business on September 30, 2022.
  

Q2 2022 Results Conference Call Details

Conference Call:	Wednesday, August 10th, 2022 at 10:00 am ET
Dial-in Numbers:	North American Toll-Free: 1 (888) 396 8049 Local and International: 1 (416) 764 8646 Conference ID: 28077702
Replay (available until August 17th at 11:59 pm ET):	North American Toll-Free: 1 (877) 674 7070 Local and International: 1 (416) 764 8692 Playback passcode: 077702#
	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 165 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its cornerstone asset, a 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada.

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:

Heather Taylor
Vice President, Investor Relations
Tel. (514) 940-0670 x105
htaylor@osiskogr.com

Notes:

(1)   Gold Equivalent Ounces

GEOs are calculated on a quarterly basis and include royalties, streams and offtakes. Silver earned from royalty and stream agreements are converted to gold equivalent ounces by multiplying the silver ounces earned by the average silver 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. Offtake agreements are converted using the financial settlement equivalent divided by the average gold price for the period.

Average Metal Prices and Exchange Rate

	Three months ended June 30,					Six months ended June 30,
		2022		2021			2022		2021
Gold(i)	$	1,871	$	1,816		$	1,874	$	1,805
Silver(ii)	$	23	$	27		$	23	$	26
Exchange rate (US$/Can$)(iii)		1.2768		1.2282			1.2715		1.2471

	(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)   The royalties and streams segment refers to the royalty, stream and other interests segment, which corresponds to the activities of Osisko Gold Royalties Ltd and its subsidiaries, excluding Osisko Development Corp. and its subsidiaries.

(3)   The mining exploration and development segment refers to the mining exploration, evaluation and development segment, which corresponds to the activities of Osisko Development Corp. and its subsidiaries.

(4)   Non-IFRS Measures

The Corporation has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS) including (i) cash margin (in dollars and in percentage) for the royalties and streams segment, (ii) adjusted earnings (loss) and (iii) adjusted earnings (loss) per share. 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. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. As Osisko’s operations are primarily focused on precious metals, the Corporation presents cash margins and adjusted earnings as it believes that certain investors use this information, together with measures determined in accordance with IFRS, 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 and in percentage of revenues)

Cash margin (in dollars) represents revenues from the royalties and streams segment less cost of sales (excluding depletion). Cash margin (in percentage of revenues) represents the cash margin (in dollars) divided by revenues from the royalties and streams segment.

		Three months ended June 30,				Six months ended June,
		2022		2021		2022			2021
		$		$		$			$
	Royalty and stream interests
	Total Revenues	63,959		57,941		123,357			124,864
	Less: Revenues from mining activities (Osisko Development)	(12,414	)	(695	)	(21,123		)	(695		)
	Less: Revenues from offtake interests	-		(7,339	)	-			(25,265		)
	Revenues from royalty and stream interests	51,545		49,907		102,234			98,904
	Total Cost of sales	(15,318	)	(10,791	)	(26,480		)	(31,188		)
	Less: Cost of sales from mining activities (Osisko Development)	11,562		695		19,543			695
	Less: Cost of sales from offtake interests	-		7,104		-			24,343
	Cost of sales of royalty and stream interests	(3,756	)	(2,992	)	(6,937		)	(6,150		)
	Revenues from royalty and stream interests	51,545		49,907		102,234			98,904
	Less: Cost of sales of royalty and stream interests	(3,756	)	(2,992	)	(6,937		)	(6,150		)
	Cash margin (in dollars) - royalty and stream interests	47,789		46,915		95,297			92,754
	Cash margin (in percentage of revenues) - royalty and stream interests	93	%	94	%	93		%	94		%
	Offtake interests
	Revenues from offtake interests	-		7,339		-			25,265
	Less: Cost of sales of offtake interests	-		(7,104	)	-			(24,343		)
	Cash margin (in dollars)	-		235		-			922
	Cash margin (in percentage of revenues)	-		3	%	-			4		%

Adjusted earnings (loss) and adjusted earnings (loss) per basic share

Adjusted earnings (loss) is defined as: net earnings (loss) adjusted for certain items: foreign exchange gain (loss), impairment of assets (including impairment on financial assets and investments in associates), gains (losses) on disposal of exploration and evaluation assets, unrealized gain (loss) on investments, share of loss of associates, deferred premium income on flow-through shares, deferred income tax expense (recovery), transaction costs and other items such as non-cash gains (losses).

Adjusted earnings (loss) per basic share is obtained from the adjusted earnings (loss) divided by the weighted average number of common shares outstanding for the period.

	For the three months ended June 30,
	2022							2021
	Osisko Gold Royalties (i)			Osisko Development (ii)		Consolidated		Osisko Gold Royalties (i)		Osisko Development (ii)			Consolidated
(in thousands of dollars, except per share amounts)	$			$		$		$		$			$
Net earnings (loss)	18,059			(1,487	)	16,572		16,341		(41,404		)	(25,063	)
Adjustments:
Impairment of assets	384			-		384		-		40,479			40,479
Foreign exchange (gain) loss	(7,593		)	(1,563	)	(9,156	)	(169	)	791			622
Unrealized loss (gain) on investments	5,574			(11,697	)	(6,123	)	1,553		13			1,566
Variation of fair value of derivative instruments	-			(19,381	)	(19,381	)	-		-			-
Share of loss of associates	1,078			141		1,219		1,111		750			1,861
Deferred premium income on flow-through shares	-			(573	)	(573	)	-		(2,798		)	(2,798	)
Transaction cost – Tintic	-			2,664		2,664
Deferred income tax expense (recovery)	8,214			1,521		9,735		5,041		(1,558		)	3,483
Adjusted earnings (loss)	25,716			(30,375	)	(4,659	)	23,877		(3,727		)	20,150
Weighted average number of common shares outstanding (000’s)	185,316			185,316		185,316		167,895		167,895			167,895
Adjusted earnings (loss) per basic share	0.14			(0.16	)	(0.03	)	0.14		(0.02		)	0.12

	For the six months ended June 30,
	2022							2021
	Osisko Gold Royalties (i)			Osisko Development (ii)		Consolidated		Osisko Gold Royalties (i)		Osisko Development (ii)			Consolidated
(in thousands of dollars, except per share amounts)	$			$		$		$		$			$
Net earnings (loss)	34,863			(23,820	)	11,043		29,805		(45,105		)	(15,300	)
Adjustments:
Impairment of assets	904			-		904		4,400		40,479			44,879
Foreign exchange loss (gain)	(8,469		)	(2,087	)	(10,556	)	(140	)	1,535			1,395
Unrealized (gain) loss on investments	11,414			(11,469	)	(55	)	2,942		(1,297		)	1,645
Variation of fair value of derivative instruments	-			(19,381	)	(19,381	)	-		-			-
Share of (earnings) loss of associates	(1,526		)	472		(1,054	)	736		1,157			1,893
Deferred premium income on flow-through shares	-			(914	)	(914	)	-		(3,267		)	(3,267	)
Transaction cost – Tintic	-			4,727		4,727
Deferred income tax expense (recovery)	13,373			1,490		14,863		9,573		(2,740		)	6,833
Adjusted earnings (loss)	50,559			(50,982	)	(423	)	47,316		(9,238		)	38,078
Weighted average number of common shares outstanding (000’s)	176,182			176,182		176,182		167,696		167,696			167,696
Adjusted earnings (loss) per basic share	0.29			(0.29	)	0.00		0.28		(0.06		)	0.23

(i)   Osisko Gold Royalties Ltd and its subsidiaries, excluding Osisko Development Corp. and its subsidiaries. Represents the royalty, stream and other interests segment.
(ii)   Osisko Development Corp. and its subsidiaries. Represents the mining exploration, evaluation and development segment.

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. All statements in this press release, forward-looking statements are statements other than statements of historical fact, that address, without limitation, future events, production estimates of Osisko’s assets (including increase of production), timely developments of mining properties over which Osisko has royalties, streams, offtakes and investments, management’s expectations regarding Osisko’s growth, results of operations, estimated future revenues, production costs, carrying value of assets, ability to continue to pay dividend, requirements for additional capital, business prospects and opportunities future demand for and fluctuation of prices of commodities (including outlook on gold, silver, diamonds, other commodities) currency markets and general market conditions. In addition, statements and estimates (including data in tables) relating to mineral reserves and resources and gold equivalent ounces are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates will be realized. 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: fluctuations in the prices of the commodities that drive royalties, streams, offtakes and investments held by Osisko; fluctuations in the value of the Canadian dollar relative to the U.S. dollar; 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; risks related to the operators of the properties in which Osisko holds a royalty, stream or other interests; timely development, permitting, construction, commencement of production, ramp-up (including operating and technical challenges) on any of the properties in which Osisko holds a royalty, stream or other interest; rate and timing of production differences from resource estimates or production forecasts by operators of properties in which Osisko holds a royalty, stream or other interest; the unfavorable outcome of any challenges or litigation relating title, permit or license with respect to any of the properties in which Osisko holds a royalty, stream or other interests or to Osisko’s right thereon; differences in rate and timing of production from resource estimates or production forecasts by operators of properties in which Osisko holds a royalty, stream or other interest, including conversion from resources to reserves and ability to replace resources; business opportunities that become available to, or are pursued by Osisko; continued availability of capital and financing and general economic, market or business conditions; risks and hazards associated with the business of exploring, development and mining on any of the properties in which Osisko holds a royalty, stream or other interest, 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, the integration of acquired assets and the responses of relevant governments to the COVID-19 outbreak and the effectiveness of such response and the potential impact of COVID-19 on Osisko’s business, operations and financial condition. The forward-looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Osisko holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice and with public disclosure (including forecast of production); 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); no adverse development in respect of any significant property in which Osisko holds a royalty, stream or other interest; that statements and estimates relating to mineral reserves and resources by owners and operators of the properties in which Osisko holds a royalty, stream or other interest are accurate; the Corporation’s ongoing income and assets relating to determination of its PFIC status; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended.

For additional information on risks, uncertainties and assumptions, please refer to the most recent Annual Information Form of Osisko filed on SEDAR at www.sedar.com 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.

Osisko Gold Royalties Ltd
Consolidated Balance Sheets
(tabular amounts expressed in thousands of Canadian dollars)

	June 30,			December 31,
	2022			2021
	$			$
Assets
Current assets
Cash	449,283			115,698
Amounts receivable	27,736			14,691
Inventories	26,361			18,596
Other assets	6,698			3,941
	510,078			152,926
Non-current assets
Investments in associates	126,523			125,354
Other investments	113,302			169,010
Royalty, stream and other interests	1,148,482			1,154,801
Mining interests and plant and equipment	836,706			635,655
Exploration and evaluation	42,758			3,635
Goodwill	111,204			111,204
Other assets	34,381			18,037
	2,923,434			2,370,622
Liabilities
Current liabilities
Accounts payable and accrued liabilities	33,341			30,049
Dividends payable	10,177			9,157
Provisions and other liabilities	12,663			12,179
Current portion of long-term debt	300,600			294,891
	356,781			346,276
Non-current liabilities
Provisions and other liabilities	89,855			60,334
Long-term debt	4,636			115,544
Deferred income taxes	96,417			68,407
	547,689			590,561
Equity
Share capital	2,085,642			1,783,689
Warrants	-			18,072
Contributed surplus	59,383			42,525
Equity component of convertible debentures	14,510			14,510
Accumulated other comprehensive income	28,010			58,851
Deficit	(305,499	)		(283,042	)
Equity attributable to Osisko Gold Royalties Ltd’s shareholders	1,882,046			1,634,605
Non-controlling interests	493,699			145,456
Total equity	2,375,745			1,780,061
	2,923,434			2,370,622

Osisko Gold Royalties Ltd
Consolidated Statements of Income (Loss)
For the three and six months June 30, 2022 and 2021
(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

	Three months ended June 30,						Six months ended June 30,
	2022			2021			2022			2021
	$			$			$			$
Revenues	63,959			57,941			123,357			124,864
Cost of sales	(15,318	)		(10,791	)		(26,480	)		(31,188	)
Depletion and amortization	(12,050	)		(11,437	)		(24,076	)		(23,364	)
Gross profit	36,591			35,713			72,801			70,312
Other operating expenses
General and administrative	(14,875	)		(9,171	)		(27,519	)		(19,077	)
Business development	(1,260	)		(1,118	)		(2,681	)		(2,105	)
Exploration and evaluation	(144	)		(843	)		(264	)		(1,180	)
Mining operating expenses	(20,602	)		-			(35,848	)		-
Impairments - royalty, stream and other interests	-			-			-			(2,288	)
Impairments - mining exploration, evaluation and development	-			(40,479	)		-			(40,479	)
Operating (loss) income	(290	)		(15,898	)		6,489			5,183
Interest income	2,292			1,348			3,483			2,658
Finance costs	(7,310	)		(5,884	)		(13,683	)		(12,027	)
Foreign exchange gain (loss)	9,405			(406	)		10,592			(1,535	)
Share of (loss) income of associates	(1,219	)		(1,861	)		1,054			(1,893	)
Other gains (losses), net	23,884			1,629			18,660			(281	)
Earnings (loss) before income taxes	26,762			(21,072	)		26,595			(7,895	)
Income tax expense	(10,190	)		(3,991	)		(15,552	)		(7,405	)
Net earnings (loss)	16,572			(25,063	)		11,043			(15,300	)
Net earnings (loss) attributable to:
Osisko Gold Royalties Ltd’s shareholders	17,159			(14,759	)		17,485			(4,165	)
Non-controlling interests	(587	)		(10,304	)		(6,442	)		(11,135	)
Net earnings (loss) per share
Basic and diluted	0.09			(0.09	)		0.10			(0.02	)

 

Osisko Gold Royalties Ltd
Consolidated Statements of Cash Flows
For the three and six months ended June 30, 2022 and 2021
(tabular amounts expressed in thousands of Canadian dollars)

	Three months ended June 30,						Six months ended June 30,
	2022			2021			2022			2021
	$			$			$			$
Operating activities
Net earnings (loss)	16,572			(25,063	)		11,043			(15,300	)
Adjustments for:
Share-based compensation	2,525			2,090			6,156			5,390
Depletion and amortization	15,983			11,794			31,000			24,055
Impairment of assets	384			40,479			904			44,879
Finance costs	2,570			1,716			4,715			3,555
Share of loss of associates	1,219			1,861			(1,054	)		1,893
Net gain on acquisition of investments	-			(211	)		(48	)		(649	)
Change in fair value of financial assets and liabilities at fair value through profit and loss	(12,106	)		1,777			(3,930	)		3,685
Net gain on dilution of investments	(1,544	)		-			(3,604	)		(1,391	)
Gain in deemed disposal of associate	(11,854	)		-			(11,854	)		-
Foreign exchange (gain) loss	(9,156	)		622			(10,556	)		1,395
Flow-through shares premium income	(573	)		(2,798	)		(914	)		(3,268	)
Deferred income tax expense	9,735			3,483			14,863			6,833
Other	2,202			(432	)		1,859			493
Net cash flows provided by operating activities before changes in non-cash working capital items	15,957			35,318			38,580			71,570
Changes in non-cash working capital items	(16,181	)		(4,401	)		(15,194	)		(19,329	)
Net cash flows (used in) provided by operating activities	(224	)		30,917			23,386			52,241
Investing activities
Acquisition of Tintic, net of cash acquired	(62,189	)		-			(62,189	)		-
Acquisition of investments	(384	)		(4,026	)		(11,118	)		(13,837	)
Proceeds on disposal of investments	3,186			8,338			24,241			28,109
Acquisition of royalty and stream interests	-			(39,085	)		(9,290	)		(42,877	)
Mining assets and plant and equipment	(20,973	)		(53,839	)		(34,007	)		(89,651	)
Exploration and evaluation expenses, net	(681	)		(1,028	)		(686	)		(1,163	)
Reclamation deposits, net	(13,371	)		-			(13,371	)		-
Other	(774	)		(201	)		(1,038	)		(201	)
Net cash flows used in investing activities	(95,186	)		(89,841	)		(107,458	)		(119,620	)
Financing activities
Bought deal equity financing	-			-			311,962			-
Share issue costs	(1,125	)		-			(13,941	)		-
Increase in long-term debt	3,666			-			7,536			50,000
Repayment of long-term debt	(115,095	)		-			(115,700	)		(50,000	)
Investments from minority shareholders	213,153			-			255,543			38,841
Share issue expenses from investments from minority shareholders	(5,108	)		-			(7,238	)		(2,581	)
Exercise of share options and shares issued under the share purchase plan	312			8,129			934			13,107
Normal course issuer bid purchase of common shares	-			-			(4,879	)		(4,464	)
Dividends paid	(9,755	)		(7,914	)		(18,478	)		(15,696	)
Capital payments on lease liabilities	(1,060	)		(1,928	)		(6,332	)		(2,780	)
Withholding taxes on settlement of restricted and deferred share units	(1,800	)		(3,544	)		(2,224	)		(3,582	)
Other	1,332			(3	)		2			(3	)
Net cash flows provided by (used in) financing activities	84,520			(5,260	)		407,185			22,842
(Decrease) increase in cash before effects of exchange rate changes on cash	(10,890	)		(64,184	)		323,113			(44,537	)
Effects of exchange rate changes on cash	10,723			(1,483	)		10,472			(3,024	)
(Decrease) increase in cash	(167	)		(65,667	)		333,585			(47,561	)
Cash – beginning of period	449,450			320,630			115,698			302,524
Cash  – end of period	449,283			254,963			449,283			254,963

FAQ

What were the financial results for Osisko Gold Royalties in Q2 2022?

Osisko Gold Royalties reported Q2 2022 revenues of $64.0 million and net earnings of $17.2 million.

How much was the cash margin reported by Osisko Gold Royalties for Q2 2022?

The cash margin for Q2 2022 was a record $47.8 million.

How did Osisko Gold Royalties perform in terms of GEOs earned in Q2 2022?

Osisko earned 22,243 GEOs in Q2 2022, an increase from 20,178 GEOs in Q2 2021.

What was the adjusted loss reported by Osisko Gold Royalties in Q2 2022?

Osisko reported an adjusted loss of $4.7 million for Q2 2022.

When is the next conference call for Osisko Gold Royalties?

The next conference call for Osisko Gold Royalties will be on August 10, 2022, at 10:00 AM ET.