Osisko Reports Q2 2024 Results
Osisko Gold Royalties (OR: TSX & NYSE) reported its Q2 2024 financial results, highlighting record operating cash flows of $52.3 million and a quarterly cash margin of 97%. Key points include:
- 20,068 gold equivalent ounces (GEOs) earned
- Revenues of $64.8 million from royalties and streams
- Net loss of $21.1 million due to a non-cash impairment loss
- Record adjusted earnings of $33.2 million ($0.18 per basic share)
- Cash balance of $65.7 million and debt of $109.0 million as of June 30, 2024
- Quarterly dividend increased by 8% to $0.065 per share
The company revised its 2024 GEO delivery guidance to 77,000 – 83,000 GEOs due to production suspension at Victoria Gold's Eagle mine. Osisko also announced the appointment of Wendy Louie to its Board of Directors.
Osisko Gold Royalties (OR: TSX & NYSE) ha riportato i risultati finanziari del Q2 2024, evidenziando flussi di cassa operativi record di 52,3 milioni di dollari e un margine di cassa trimestrale del 97%. I punti chiave includono:
- 20.068 once equivalenti d'oro (GEO) guadagnate
- Ricavi di 64,8 milioni di dollari da royalties e streaming
- Perdita netta di 21,1 milioni di dollari a causa di una perdita di valore non monetaria
- Utile rettificato record di 33,2 milioni di dollari (0,18 dollari per azione ordinaria)
- Saldo di cassa di 65,7 milioni di dollari e debito di 109,0 milioni di dollari al 30 giugno 2024
- Dividendo trimestrale aumentato dell'8% a 0,065 dollari per azione
L'azienda ha rivisto le sue linee guida per la consegna di GEO nel 2024 a 77.000 – 83.000 GEO a causa della sospensione della produzione nella miniera Eagle di Victoria Gold. Osisko ha anche annunciato la nomina di Wendy Louie nel suo Consiglio di Amministrazione.
Osisko Gold Royalties (OR: TSX & NYSE) reportó sus resultados financieros del segundo trimestre de 2024, destacando flujos de efectivo operativos récord de 52,3 millones de dólares y un margen de efectivo trimestral del 97%. Los puntos clave incluyen:
- 20.068 onzas equivalentes de oro (GEO) obtenidas
- Ingresos de 64,8 millones de dólares procedentes de regalías y streaming
- Pérdida neta de 21,1 millones de dólares debido a una pérdida por deterioro no monetaria
- Ganancias ajustadas récord de 33,2 millones de dólares (0,18 dólares por acción básica)
- Saldo de efectivo de 65,7 millones de dólares y deuda de 109,0 millones de dólares al 30 de junio de 2024
- Dividendo trimestral incrementado en un 8% a 0,065 dólares por acción
La empresa revisó su guía de entrega de GEO para 2024 a 77.000 – 83.000 GEO debido a la suspensión de la producción en la mina Eagle de Victoria Gold. Osisko también anunció el nombramiento de Wendy Louie a su Junta Directiva.
Osisko Gold Royalties (OR: TSX & NYSE)는 2024년 2분기 재무 결과를 발표하며 5230만 달러의 기록적인 운영 현금 흐름과 97%의 분기 현금 마진을 강조했습니다. 주요 사항은 다음과 같습니다:
- 20,068 금 환산 온스(GEO) 획득
- 로열티 및 스트림에서 6480만 달러의 수익
- 비현금 손상으로 인한 2110만 달러의 순손실
- 조정 이익 기록 3320만 달러(주당 0.18달러)
- 2024년 6월 30일 현재 현금 잔액 6570만 달러 및 부채 1억 900만 달러
- 분기 배당금 8% 증가하여 주당 0.065달러
회사는 Victoria Gold의 Eagle 광산에서 생산 중단으로 인해 2024년 GEO 배송 가이드를 77,000 – 83,000 GEO로 수정했습니다. Osisko는 또한 Wendy Louie를 이사회에 임명했다고 발표했습니다.
Osisko Gold Royalties (OR: TSX & NYSE) a publié ses résultats financiers du deuxième trimestre 2024, mettant en avant des flux de trésorerie d'exploitation records de 52,3 millions de dollars et une marge de trésorerie trimestrielle de 97 %. Les points clés comprennent :
- 20 068 onces équivalentes d'or (GEO) obtenues
- Revenus de 64,8 millions de dollars provenant des redevances et des flux
- Perte nette de 21,1 millions de dollars en raison d'une perte de valeur non monétaire
- Bénéfice ajusté record de 33,2 millions de dollars (0,18 dollar par action ordinaire)
- Solde de trésorerie de 65,7 millions de dollars et dette de 109,0 millions de dollars au 30 juin 2024
- Dividende trimestriel augmenté de 8 % à 0,065 dollar par action
La société a révisé ses prévisions de livraison de GEO pour 2024 à 77 000 – 83 000 GEO en raison de l'arrêt de la production dans la mine Eagle de Victoria Gold. Osisko a également annoncé la nomination de Wendy Louie à son conseil d'administration.
Osisko Gold Royalties (OR: TSX & NYSE) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht und dabei rekordverdächtige Betriebscashflows von 52,3 Millionen Dollar sowie eine quartalsweise Cash-Marge von 97 % hervorgehoben. Die wichtigsten Punkte sind:
- 20.068 Goldäquivalent-Unzen (GEO) verdient
- Einnahmen von 64,8 Millionen Dollar aus Royalties und Streams
- Nettoverlust von 21,1 Millionen Dollar aufgrund eines nicht liquiden Wertminderungsverlustes
- Rekordadjustierte Gewinne von 33,2 Millionen Dollar (0,18 Dollar pro Stammaktie)
- Barguthaben von 65,7 Millionen Dollar und Schulden von 109,0 Millionen Dollar Stand 30. Juni 2024
- Quartalsdividende um 8 % auf 0,065 Dollar pro Aktie erhöht
Das Unternehmen hat seine Umsatzprognose für 2024 auf 77.000 – 83.000 GEO aufgrund der Produktionsaussetzung in der Eagle-Mine von Victoria Gold revidiert. Osisko gab außerdem die Ernennung von Wendy Louie in den Vorstand bekannt.
- Record operating cash flows of $52.3 million, up from $47.4 million in Q2 2023
- Record adjusted earnings of $33.2 million, increased from $27.2 million in Q2 2023
- Revenues from royalties and streams increased to $64.8 million from $60.5 million in Q2 2023
- Quarterly dividend increased by 8% to $0.065 per share
- Repayment of $44.2 million under the revolving credit facility
- Extension of credit facility maturity date to April 30, 2028
- Acquisition of new gold stream on SolGold's Cascabel copper-gold project in Ecuador
- Net loss of $21.1 million due to a non-cash impairment loss of $67.8 million on the Eagle gold royalty
- Decrease in GEOs earned to 20,068 from 24,645 in Q2 2023
- Downward revision of 2024 GEO delivery guidance to 77,000 – 83,000 GEOs due to production suspension at Victoria Gold's Eagle mine
- Two-month delay in Capstone's ramp-up to 20,000 tonnes per day at Mantos Blancos
Insights
Osisko Gold Royalties' Q2 2024 results present a mixed picture. On the positive side, the company achieved record operating cash flows of
However, the company reported a net loss of
The 8% dividend increase signals management's confidence in future cash flows. However, investors should note the revised 2024 GEO delivery guidance, now 77,000 – 83,000 GEOs, down from the previous 82,000 - 92,000 range due to production issues at key assets.
Osisko's Q2 results reflect the inherent volatility in the mining royalty business. The impairment on the Eagle gold royalty highlights the risks associated with individual mine performance. However, the company's diversified portfolio helps mitigate such risks, as evidenced by the strong overall financial performance despite this setback.
The acquisition of the Cascabel gold stream is a strategic move, adding a tier-1 copper-gold asset to Osisko's portfolio. This demonstrates the company's ability to leverage its strong balance sheet for growth opportunities. The first deliveries from the CSA copper stream and Akasaba West royalty are positive developments, indicating the company's pipeline is starting to bear fruit.
The revised GEO guidance reflects challenges at Victoria Gold's Eagle mine and Capstone's Mantos Blancos ramp-up delay. However, the expected contributions from Namdini and Tocantinzinho projects by year-end could provide a boost to Osisko's near-term growth prospects.
The appointment of Wendy Louie to Osisko's Board of Directors is a positive development for the company's governance structure. Ms. Louie's extensive experience in finance and leadership roles within the mining industry, including her time as CFO at Sabina Gold and Silver Corp and various senior positions at Goldcorp Inc., brings valuable expertise to the board.
Her background in financial management and reporting, combined with her experience in both large corporations and growth-oriented companies, aligns well with Osisko's position as a rapidly expanding royalty company. This appointment enhances the board's financial oversight capabilities and adds diversity to its composition.
The company's commitment to transparency is evident in the publication of its fourth sustainability report and 2024 Asset Handbook. These documents provide stakeholders with important information about Osisko's ESG practices and asset portfolio, which is important for investor confidence in the current market environment.
Record operating cash flows of
Appointment of Ms. Wendy Louie to the Board of Directors
MONTREAL, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Company” or “Osisko”) (OR: TSX & NYSE) today announced its consolidated financial results for the second quarter of 2024. Amounts presented are in Canadian dollars, except where otherwise noted.
Highlights
- 20,068 gold equivalent ounces1 (“GEOs”) earned (24,645 GEOs in Q2 2023);
- Revenues from royalties and streams of
$64.8 million ($60.5 million in Q2 2023); - Record cash flows generated by operating activities of
$52.3 million ($47.4 million in Q2 2023); - Net loss of
$21.1 million ,$0.11 per basic share (net earnings of$18.0 million ,$0.10 per basic share in Q2 2023), as a result of a non-cash impairment loss of$67.8 million on the Eagle gold royalty, representing100% of the net book value on June 30, 2024 ($49.9 million , net of income taxes); - Record adjusted earnings2 of
$33.2 million ,$0.18 per basic share ($27.2 million ,$0.15 per basic share in Q2 2023); - Repayment of
$44.2 million under the revolving credit facility and extension of the maturity date from September 29, 2026 to April 30, 2028; - Cash balance of
$65.7 million and debt outstanding of$109.0 million as at June 30, 2024; - Publication of the fourth edition of the Company’s sustainability report, Growing Responsibly and the 2024 Asset Handbook; and,
- Declaration of a quarterly dividend of
$0.06 5 per common share paid on July 15, 2024 to shareholders of record as of the close of business on June 28, 2024, an increase of8% .
Subsequent to June 30, 2024
- Acquisition by Osisko Bermuda Limited of a new gold stream on SolGold plc’s Cascabel copper-gold project in Ecuador;
- First delivery under the CSA copper stream from Metals Acquisition Limited;
- First payment from Agnico Eagle Mines Ltd. under the Akasaba West
2.5% NSR royalty; - Additional repayments of
$13.8 million (US$10.0 million ) on the revolving credit facility; and - Declaration of a quarterly dividend of
$0.06 5 per common share payable on October 15, 2024 to shareholders of record as of the close of business on September 30, 2024.
Appointment of Ms. Wendy Louie to Osisko’s Board of Directors
Osisko is also pleased to announce the appointment of Ms. Wendy Louie to its Board of Directors.
Ms. Louie is a Canadian Chartered Professional Accountant with over 25 years of diverse finance and leadership experience focused primarily on the mining industry. Ms. Louie was the Vice President Finance and CFO of Sabina Gold and Silver Corp. until its acquisition by B2Gold Corp in April 2023. Prior to that, Ms. Louie also held several senior management roles at Goldcorp Inc. from 2006 to 2016 serving as Vice President Finance, Vice President Reporting and Assistant Controller. From 2004 to 2006, Ms. Louie was also a Senior Tax Manager at Ernst & Young and from 1995 to 2004, she held various finance positions with Duke Energy Canada. Ms. Louie currently serves as an Independent Director for Liberty Gold Corp.
Mr. Norman MacDonald, Chair of Osisko’s Board of Directors commented: “We are very excited to have Wendy join Osisko’s Board of Directors. Her wealth of experience at the corporate level, with her having held various senior finance roles at growth-oriented resource companies both big and small, made her an ideal candidate to be appointed as Osisko’s newest Independent Director. Her proven track record, attention to detail, and dedication to the highest professional standards will no doubt benefit Osisko and its shareholders going forward.”
Additional Commentary
Jason Attew, President & CEO of Osisko commented: “Osisko’s second quarter of 2024 was a markedly busy one, thanks to the Company’s robust corporate development pipeline and its ever-evolving portfolio of assets. Increased commodity prices resulted in strong revenues and record operating cash flows that allowed Osisko to continue to rapidly pay down its revolving credit facility. As such, Osisko’s balance sheet remains well-positioned for the future deployment of capital towards new accretive growth opportunities. A perfect example of this was the recent announcement of the acquisition of the Cascabel gold stream by Osisko Bermuda, a transaction that was completed subsequent to quarter-end and one that provides the Company with an additional long-term growth lever on a tier-1 copper-gold asset3.
Prior to the heap leach facility failure at Victoria Gold’s Eagle mine, Osisko was tracking well with regard to its previously published 2024 GEO delivery guidance range of 82,000 - 92,000 GEOs. However, under our assumption that production at Eagle will remain suspended through to the end of 2024, the Company has decided to adjust its 2024 GEO delivery guidance range to 77,000 – 83,000 GEOs. The revised guidance also factors in the recently disclosed two-month delay in Capstone’s ramp-up to 20,000 tonnes per day at Mantos Blancos. Recall that we had previously expected a marginally stronger second half to the year in 2024, thanks mostly to the CSA copper stream, and to a lesser extent, our NSR royalties at Akasaba West and Tocantinzinho; two out of three of these assets, in fact, are already contributing to Osisko’s top line, with first payments from Tocantinzinho expected in the fourth quarter. Finally, at Namdini, the project is still on schedule to pour first gold before end-of-year, thus providing Osisko with additional growth heading into 2025.”
Q2 2024 RESULTS CONFERENCE AND WEBCAST CALL DETAILS
| Conference Call: | Wednesday, August 7th, 2024 at 10:00 am ET |
| Dial-in Numbers: (Option 1) | North American Toll-Free: 1 (800) 717-1738 Local – Montréal: 1 (514) 400-3792 Local - Toronto: 1 (289) 514-5100 Local - New York: 1 (646) 307-1865 Conference ID: 66153 |
| Webcast link: (Option 2) | https://viavid.webcasts.com/starthere.jsp?ei=1679304&tp_key=1149f8ec91 |
| Replay (available until Monday, September 9th at 11:59 am ET): | North American Toll-Free: 1 (888) 660-6264 Local - Toronto: 1 (289) 819-1325 Local - New York: 1 (646) 517-3975 Playback Passcode: 66153# |
| 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 Mr. 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
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 | Heather Taylor |
| Vice President, Capital Markets | Vice President, Sustainability and Communications |
| Tel: (647) 477-2087 x116 | Tel: (647) 477-2087 x105 |
| Mobile: (365) 275-1954 | |
| Email: gmoenting@osiskogr.com | Email: htaylor@osiskogr.com |
Notes:
(1) Gold Equivalent Ounces
GEOs 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 June 30, | ||||
| 2024 | 2023 | |||
| Gold(i) | ||||
| Silver(ii) | ||||
| Exchange rate (US$/Can$)(iii) | 1.3683 | 1.3428 | ||
(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) Bank of Canada daily rate.
(2) Non-IFRS Performance Measures
The Company has included certain performance measures in this press release that do not have any standardized meaning prescribed by IFRS Accounting Standards including (i) cash margin (in dollars and in percentage of revenues), (ii) adjusted earnings and (iii) adjusted earnings per basic 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 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 Company presents cash margins and adjusted earnings as it believes that certain investors use this information, together with measures determined in accordance with IFRS Accounting Standards, to evaluate the Company’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 less cost of sales (excluding depletion). Cash margin (in percentage of revenues) represents the cash margin (in dollars) divided by revenues.
| Three months ended June 30, | Six months ended June 30, | ||||||||||
| (in thousands of dollars) | 2024 | 2023 | 2024 | 2023 | |||||||
| $ | $ | $ | $ | ||||||||
| Royalty interests | |||||||||||
| Revenues | 46,236 | 39,323 | 90,780 | 78,501 | |||||||
| Less: cost of sales (excluding depletion) | (145 | ) | (205 | ) | (250 | ) | (340 | ) | |||
| Cash margin (in dollars) | 46,091 | 39,118 | 90,530 | 78,161 | |||||||
| Depletion | (5,361 | ) | (5,610 | ) | (10,895 | ) | (12,458 | ) | |||
| Gross profit | 40,730 | 33,508 | 79,635 | 65,703 | |||||||
| Stream interests | |||||||||||
| Revenues | 18,610 | 21,177 | 34,817 | 41,586 | |||||||
| Less: cost of sales (excluding depletion) | (2,081 | ) | (4,055 | ) | (3,809 | ) | (7,961 | ) | |||
| Cash margin (in dollars) | 16,529 | 17,122 | 31,008 | 33,625 | |||||||
| Depletion | (5,052 | ) | (7,357 | ) | (11,042 | ) | (14,004 | ) | |||
| Gross profit | 11,477 | 9,765 | 19,966 | 19,621 | |||||||
| Royalty and stream interests Total cash margin (in dollars) | 62,620 | 56,240 | 121,538 | 111,786 | |||||||
| Divided by: total revenues | 64,846 | 60,500 | 125,597 | 120,087 | |||||||
| Cash margin (in percentage of revenues) | 96.6 | % | 93.0 | % | 96.8 | % | 93.1 | % | |||
| Total – Gross profit | 52,207 | 43,273 | 99,601 | 85,324 | |||||||
Adjusted earnings and adjusted earnings per basic share
Adjusted 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 June 30, | Six months ended June 30, | |||||||
| 2024 | 2023 | 2024 | 2023 | |||||
| (in thousands of dollars, except per share amounts) | $ | $ | $ | $ | ||||
| Net (loss) earnings | (21,115 | ) | 17,961 | (6,042 | ) | 38,809 | ||
| Adjustments: | ||||||||
| Impairment of royalty interests | 67,832 | 6,629 | 67,832 | 6,629 | ||||
| Foreign exchange loss | 1,069 | 172 | 4,319 | 153 | ||||
| Share of loss (income) of associates | 3,117 | (19,167 | ) | 16,675 | (13,022 | ) | ||
| Changes in allowance for expected credit losses and write-offs | - | 19,860 | (1,895 | ) | 20,131 | |||
| Loss (gain) on investments | 355 | 4,066 | (101 | ) | 1,969 | |||
| Tax impact of adjustments | (18,093 | ) | (2,300 | ) | (17,909 | ) | (2,293 | ) |
| Adjusted earnings | 33,165 | 27,221 | 62,879 | 52,376 | ||||
| Weighted average number of common shares outstanding (000’s) | 186,217 | 185,302 | 186,009 | 184,990 | ||||
| Adjusted earnings per basic share | 0.18 | 0.15 | 0.34 | 0.28 | ||||
(3) Please refer to SolGold plc’s press release dated May 14, 2024 and entitled “SolGold plc Key Financial Developments” available on SolGold’s SEDAR+ profile at www.sedarplus.ca.
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 be able to deploy capital toward accretive growth opportunities, that Osisko will meet its revised guidance estimate, and that results for the second half of the year will be, all things being equal, stronger. 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. 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 Ltd Consolidated Balance Sheets (Unaudited) (tabular amounts expressed in thousands of Canadian dollars) | |||||
| June 30, | December 31, | ||||
| 2024 | 2023 | ||||
| $ | $ | ||||
| Assets | |||||
| Current assets | |||||
| Cash | 65,724 | 67,721 | |||
| Short-term investments | 14,466 | 8,200 | |||
| Amounts receivable | 6,456 | 6,282 | |||
| Other assets | 1,425 | 1,842 | |||
| 88,071 | 84,045 | ||||
| Non-current assets | |||||
| Investments in associates | 94,725 | 115,651 | |||
| Other investments | 102,279 | 93,025 | |||
| Royalty, stream and other interests | 1,486,501 | 1,553,111 | |||
| Goodwill | 111,204 | 111,204 | |||
| Other assets | 8,874 | 8,951 | |||
| 1,891,654 | 1,965,987 | ||||
| Liabilities | |||||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | 4,611 | 8,209 | |||
| Dividends payable | 12,101 | 11,121 | |||
| Lease liabilities | 1,182 | 1,122 | |||
| 17,894 | 20,452 | ||||
| Non-current liabilities | |||||
| Lease liabilities | 6,270 | 6,879 | |||
| Long-term debt | 108,966 | 191,879 | |||
| Deferred income taxes | 95,321 | 96,279 | |||
| 228,451 | 315,489 | ||||
| Equity | |||||
| Share capital | 2,111,336 | 2,097,691 | |||
| Contributed surplus | 77,791 | 79,446 | |||
| Accumulated other comprehensive income | 59,158 | 28,058 | |||
| Deficit | (585,082 | ) | (554,697 | ) | |
| 1,663,203 | 1,650,498 | ||||
| 1,891,654 | 1,965,987 | ||||
| Osisko Gold Royalties Ltd Consolidated Statements of Income (Loss) For the three and six months ended June 30, 2024 and 2023 (Unaudited) (tabular amounts expressed in thousands of Canadian dollars) | |||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| $ | $ | $ | $ | ||||||||
| Revenues | 64,846 | 60,500 | 125,597 | 120,087 | |||||||
| Cost of sales | (2,226 | ) | (4,260 | ) | (4,059 | ) | (8,301 | ) | |||
| Depletion | (10,413 | ) | (12,967 | ) | (21,937 | ) | (26,462 | ) | |||
| Gross profit | 52,207 | 43,273 | 99,601 | 85,324 | |||||||
| Other operating expenses | |||||||||||
| General and administrative | (6,367 | ) | (7,308 | ) | (12,497 | ) | (13,517 | ) | |||
| Business development | (2,089 | ) | (1,297 | ) | (3,449 | ) | (2,793 | ) | |||
| Impairment of royalty interests | (67,832 | ) | (6,629 | ) | (67,832 | ) | (6,629 | ) | |||
| Operating (loss) income | (24,081 | ) | 28,039 | 15,823 | 62,385 | ||||||
| Interest income | 1,245 | 2,170 | 2,504 | 4,233 | |||||||
| Finance costs | (2,839 | ) | (3,445 | ) | (6,570 | ) | (6,315 | ) | |||
| Foreign exchange loss | (1,069 | ) | (172 | ) | (4,319 | ) | (153 | ) | |||
| Share of (loss) income of associates | (3,117 | ) | 19,167 | (16,675 | ) | 13,022 | |||||
| Other (losses) gains, net | (355 | ) | (23,926 | ) | 1,996 | (22,100 | ) | ||||
| (Loss) earnings before income taxes | (30,216 | ) | 21,833 | (7,241 | ) | 51,072 | |||||
| Income tax recovery (expense) | 9,101 | (3,872 | ) | 1,199 | (12,263 | ) | |||||
| Net (loss) earnings | (21,115 | ) | 17,961 | (6,042 | ) | 38,809 | |||||
| Net (loss) earnings per share | |||||||||||
| Basic and diluted | (0.11 | ) | 0.10 | (0.03 | ) | 0.21 | |||||
| Osisko Gold Royalties Ltd Consolidated Statements of Cash Flows For the three and six months ended June 30, 2024 and 2023 (Unaudited) (tabular amounts expressed in thousands of Canadian dollars) | |||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| $ | $ | $ | $ | ||||||||
| Operating activities | |||||||||||
| Net (loss) earnings | (21,115 | ) | 17,961 | (6,042 | ) | 38,809 | |||||
| Adjustments for: | |||||||||||
| Share-based compensation | 2,261 | 2,868 | 4,374 | 5,157 | |||||||
| Depletion and amortization | 10,742 | 13,271 | 22,595 | 27,025 | |||||||
| Impairment of royalty interests | 67,832 | 6,629 | 67,832 | 6,629 | |||||||
| Impairment of investments in associates | - | - | - | 271 | |||||||
| Changes in expected credit losses of other investments | - | 19,860 | (1,895 | ) | 19,860 | ||||||
| Share of loss (income) of associates | 3,117 | (19,167 | ) | 16,675 | (13,022 | ) | |||||
| Change in fair value of financial assets at fair value through profit and loss | 355 | 1,009 | (101 | ) | 3,754 | ||||||
| Net gain on dilution of investments | - | - | - | (4,842 | ) | ||||||
| Loss on the deemed disposal of an associate | - | 3,057 | - | 3,057 | |||||||
| Foreign exchange loss | 1,053 | 9 | 4,340 | 25 | |||||||
| Deferred income tax (recovery) expense | (9,534 | ) | 3,270 | (2,166 | ) | 10,730 | |||||
| Other | 152 | 447 | 309 | 483 | |||||||
| Net cash flows provided by operating activities before changes in non-cash working capital items | 54,863 | 49,214 | 105,921 | 97,936 | |||||||
| Changes in non-cash working capital items | (2,545 | ) | (1,822 | ) | (3,226 | ) | (5,094 | ) | |||
| Net cash flows provided by operating activities | 52,318 | 47,392 | 102,695 | 92,842 | |||||||
| Investing activities | |||||||||||
| Acquisitions of short-term investments | (5,067 | ) | (2,154 | ) | (5,967 | ) | (3,797 | ) | |||
| Acquisitions of investments | - | (53,008 | ) | - | (53,279 | ) | |||||
| Proceeds on disposal of investments | - | 6 | 5,177 | 6 | |||||||
| Acquisitions of royalty and stream interests | - | (212,762 | ) | - | (212,762 | ) | |||||
| Other | (3 | ) | (6 | ) | (7 | ) | (6 | ) | |||
| Net cash flows used in investing activities | (5,070 | ) | (267,924 | ) | (797 | ) | (269,838 | ) | |||
| Financing activities | |||||||||||
| Increase in long-term debt | - | 186,909 | - | 186,909 | |||||||
| Repayment of long-term debt | (44,238 | ) | - | (87,855 | ) | (13,463 | ) | ||||
| Exercise of share options and shares issued under the share purchase plan | 2,737 | 1,662 | 7,604 | 10,562 | |||||||
| Dividends paid | (10,130 | ) | (9,292 | ) | (20,487 | ) | (19,045 | ) | |||
| Withholding taxes on settlement of restricted and deferred share units | - | (3,893 | ) | (2,987 | ) | (4,349 | ) | ||||
| Other | (977 | ) | (234 | ) | (1,365 | ) | (446 | ) | |||
| Net cash flows (used in) provided by financing activities | (52,608 | ) | 175,152 | (105,090 | ) | 160,168 | |||||
| Decrease in cash before effects of exchange rate changes on cash | (5,360 | ) | (45,380 | ) | (3,192 | ) | (16,828 | ||||
| Effects of exchange rate changes on cash | 483 | (3,671 | ) | 1,195 | (3,687 | ) | |||||
| Decrease in cash | (4,877 | ) | (49,051 | ) | (1,997 | ) | (20,515 | ) | |||
| Cash – beginning of period | 70,601 | 119,084 | 67,721 | 90,548 | |||||||
| Cash – end of period | 65,724 | 70,033 | 65,724 | 70,033 | |||||||
FAQ
What were Osisko's (OR) Q2 2024 financial highlights?
Why did Osisko (OR) report a net loss in Q2 2024?
Has Osisko (OR) revised its 2024 GEO delivery guidance?
Did Osisko (OR) increase its dividend in Q2 2024?
