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 Ltd (OR: TSX & NYSE) has announced a first quarter 2023 dividend of C$0.055 per common share, payable on April 14, 2023, to shareholders on record as of March 31, 2023. This eligible dividend, defined under the Income Tax Act (Canada), offers U.S. shareholders a dollar equivalent based on the Bank of Canada's daily rate on the record date. Osisko also has a dividend reinvestment plan available for its Canadian and U.S. shareholders, allowing them to reinvest dividends into additional shares. Shareholders are advised to consult their tax advisors concerning implications of participation in the plan.
Osisko Gold Royalties Ltd (OR) reported strong financial results for Q4 and the full year 2022, with record revenues of $217.8 million from royalties and streams, and a net earnings increase to $85.3 million, equating to $0.47 per share. The total earned GEOs rose by 12% to 89,367. Q4 also saw record quarterly revenues of $61.9 million and net earnings of $22.4 million. The company anticipates earning 95,000 to 105,000 GEOs in 2023, maintaining a cash margin of 93%. Additionally, Osisko plans significant investments, including a $250.2 million public offering and various acquisitions.
Osisko Gold Royalties reported record fourth quarter 2022 results, earning approximately 25,023 gold equivalent ounces (GEOs) and achieving a cash margin of $57.2 million, a 92% margin. Total revenues for Q4 reached $61.9 million, contributing to annual revenues of $217.8 million. Osisko's cash reserves stood at $90.5 million after full repayment of convertible debentures. The company is also advancing several asset transactions, including a pending $75 million silver stream agreement and ongoing developments at the Canadian Malartic and Mantos Blancos mines, with expectations for future growth in 2023.
Osisko Gold Royalties Ltd (OR: TSX & NYSE) announced a revised agreement with Metals Acquisition Corp (MAC) for a 100% silver stream on the CSA mine in New South Wales, Australia. Osisko's subsidiary, Osisko Bermuda Limited (OBL), will pay US$75 million upfront, reduced from US$90 million, plus ongoing payments at 4% of the spot price. Additionally, a backstop copper stream could provide up to US$75 million to cover financing shortfalls. The CSA mine has historically produced about 431,000 ounces of silver annually. The transaction is conditional on MAC securing necessary financing.
Osisko Gold Royalties Ltd (OR) has appointed Grant Moenting as Vice President, Capital Markets, starting January. With 16 years of experience, Moenting previously worked at Scotiabank Global Banking and Markets, where he was recognized as a top sales professional in mining. His extensive background in the mining sector and capital markets is expected to enhance Osisko's performance. CEO Sandeep Singh expressed that Moenting's expertise will complement the existing team and help leverage the company's strong year into 2023.
Osisko Gold Royalties Ltd (OR) has received approval from the Toronto Stock Exchange for a normal course issuer bid (NCIB Program) allowing it to acquire up to 18,293,240 common shares over the period from December 12, 2022, to December 11, 2023. This repurchase program, representing about 10% of the public float, aims to enhance shareholder value by reducing the number of shares outstanding. The maximum daily purchase limit is set at 81,963 shares. Previously, under the earlier NCIB Program, Osisko purchased 1,694,658 shares at an average price of $13.0619.
Osisko Gold Royalties Ltd (OR) announced a fourth quarter 2022 dividend of C$0.055 per common share, payable on January 16, 2023. Shareholders of record by December 30, 2022, will receive this dividend, which qualifies as an "eligible dividend" under the Income Tax Act (Canada). U.S. dollar equivalents will be set based on the Bank of Canada's rate on the record date. Additionally, the company has a dividend reinvestment plan available for shareholders in Canada and the U.S., providing an opportunity to reinvest dividends into common shares.
Osisko Gold Royalties Ltd (OR) reported strong Q3 2022 financial results, with revenues of $53.7 million, up from $50.0 million in Q3 2021. The company achieved a record cash margin of $49.3 million (92%) and operating cash flows of $51.1 million, compared to $44.1 million in the previous year. Net earnings rose to $28.0 million, or $0.15 per share. The strategic deconsolidation of Osisko Development Corp. was completed, shifting its results to discontinued operations. Osisko maintains a robust cash position of $300.5 million and continues to explore new royalty opportunities, including a $50 million financing agreement with SolGold for its Cascabel project.
Osisko Gold Royalties Ltd (OR) has entered a $50 million royalty financing agreement with SolGold plc to advance the Cascabel copper-gold property in Ecuador. The deal includes a 0.6% net smelter return royalty covering 4,979 hectares, including the Alpala project. Based on a pre-feasibility study, the NSR is expected to generate approximately 4,700 gold-equivalent ounces annually over 26 years. SolGold has options for buydown rights, while Osisko commits to funding ESG initiatives for three years. The transaction awaits customary conditions for closing.
Osisko Gold Royalties Ltd (OR) reported record preliminary Q3 2022 deliveries, generating approximately 23,850 gold equivalent ounces and C$53.7 million in revenue. The cash margin reached a record high of C$49.3 million, reflecting a 92% margin. The company also repurchased 1.3 million shares for C$16.5 million. Despite challenges, including a drop in gold prices and production delays, Osisko remains optimistic about meeting year-end guidance. The appointment of Rob Krcmarov to the Board adds significant mining expertise, potentially benefiting future growth.
FAQ
What is the current stock price of Osisko Gold Royalties (OR)?
What is the market cap of Osisko Gold Royalties (OR)?
What does Osisko Gold Royalties Ltd do?
How does Osisko generate revenue?
What are Osisko’s cornerstone assets?
What makes Osisko different from other royalty companies?
What are the risks associated with Osisko’s business model?
What is a net smelter return (NSR) royalty?
Does Osisko operate any mines directly?
What is the significance of Osisko’s equity investments?
What commodities does Osisko focus on?
Where are Osisko’s operations geographically focused?
