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) provided select asset updates, highlighting positive developments in its portfolio. Key updates include:
- Upper Beaver Project: Potential for 210,000 oz gold and 3,600 tonnes copper annually, with production possible by 2030.
- Shaakichiuwaanaan Project: PEA results show potential to become one of the largest spodumene producers globally.
- Windfall Project: Gold Fields to acquire 100% ownership through a $2.16 billion transaction.
- CSA Mine: Achieved record quarterly copper production of 10,864 tonnes in Q2 2024.
- Tocantinzinho Mine: Reached commercial production on time and on budget.
- Eagle Gold Mine: Under receivership, with plans to resume operations after cleanup.
Osisko holds various royalties and streams on these projects, positioning it for potential growth and value creation.
Osisko Gold Royalties (OR: TSX & NYSE) has declared a third quarter 2024 dividend of C$0.065 per common share, marking its 40th consecutive quarterly dividend. The dividend will be paid on October 15, 2024 to shareholders of record as of September 30, 2024. This is an "eligible dividend" as defined by Canadian tax law. U.S. shareholders will receive the equivalent in USD based on the Bank of Canada's rate on September 30, 2024.
Osisko also reminds shareholders of its dividend reinvestment plan (DRIP) for Canadian and U.S. residents. Interested shareholders should contact their financial advisors or Osisko's transfer agent for enrollment details. The company emphasizes that participation in the DRIP does not exempt shareholders from taxes on reinvested dividends.
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 and Franco-Nevada have entered into a Gold Stream agreement with SolGold for the Cascabel copper-gold project in Ecuador. The Stream Purchasers will make initial deposits totaling US$100 million in three tranches for pre-construction costs, followed by additional deposits of US$650 million for construction costs. Osisko will provide 30% of the deposit for a 30% interest in the Gold Stream.
Key highlights include:
- Cascabel is a world-class, long-life Tier-1 copper-gold asset
- The 2024 PFS estimates production of 2.9 million tonnes of copper and 6.9 million ounces of gold over a 28-year mine life
- Potential for mine life extension through near-mine exploration
- Robust Gold Stream with phased investment as the project advances
- Osisko's annual deliveries expected to average 12,000 gold equivalent ounces over the initial mine life
Osisko Gold Royalties reported its Q2 2024 results, revealing 20,068 attributable gold equivalent ounces (GEOs) and $64.8 million in preliminary revenues. The company achieved a record cash margin of approximately $62.6 million. Osisko's cash position stood at $65.7 million after repaying $44.2 million on its revolving credit facility. Key asset updates included the suspension of operations at the Eagle Mine due to a heap leach pad failure, and the first deliveries from the CSA Copper Stream received in early July, which were not included in the Q2 GEO deliveries. The Tocantinzinho project in Brazil is nearing completion, with first gold pour expected soon. Osisko's Q2 2024 results will be discussed in a conference call on August 7, 2024.
Osisko Gold Royalties (OR) has reported that its partner, Victoria Gold Corp., experienced a failure at the heap leach pad of the Eagle Gold Mine in Yukon Territory. Operations have been temporarily suspended while the situation is assessed. Infrastructure damage has occurred, and some material has left containment, though no injuries were reported. Osisko holds a 5% NSR royalty on Eagle until 97,500 ounces of gold are delivered, and a 3% NSR royalty thereafter. The royalty covers the entire Dublin Gulch property, including Eagle, Olive ore deposits, and key exploration targets. Osisko is closely monitoring the situation and maintaining communication with Victoria.
Osisko Gold Royalties announced the results of its annual meeting of shareholders, reporting the election of 9 nominees as directors of the A total of 149,592,121 common shares were present, representing 80.47% of the outstanding shares. The also appointed PricewaterhouseCoopers, LLP as independent auditor and approved various resolutions related to share purchase plans. Osisko Gold Royalties is an intermediate precious metal royalty company with a diverse portfolio of over 185 royalties and streams, anchored by a significant net smelter return royalty on the Canadian Malartic Complex.
Osisko Gold Royalties has declared an 8% increase in the second quarter 2024 dividend, amounting to C$0.065 per common share. This marks the 39th consecutive quarterly dividend, to be paid on July 15, 2024, to shareholders of record as of June 28, 2024. The Company also offers a dividend reinvestment plan for shareholders in Canada and the United States.
Osisko Gold Royalties reported strong Q1 2024 results with operating cash flows of $50.4 million, cash margin of 97%, an 8% increase in quarterly dividend, and various financial achievements. The company earned 22,259 gold equivalent ounces, generated $60.8 million in revenues from royalties and streams, had net earnings of $15.1 million, and adjusted earnings of $29.7 million. Additionally, Osisko made repayments on its credit facility, had a cash balance of $70.6 million, and appointed a new board member. Following the quarter, the company made additional repayments on its credit facility, extended the maturity date, published sustainability reports, declared an increased dividend, and expects stronger GEO deliveries in the future. The CEO expressed confidence in the company's performance and growth prospects.
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