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 released its Notice of Annual Meeting of Shareholders and Management Information Circular, available on its website and regulatory filings. The annual meeting is set for May 12, 2022, in Montreal. Notably, Christopher C. Curfman will not seek re-election, and the Governance Committee has nominated Edie Hofmeister, who brings extensive mining industry experience and a strong ESG focus. This nomination continues Osisko's board renewal, with five new directors added in two years, enhancing the company's governance.
Osisko Gold Royalties Ltd has successfully closed a bought deal public offering of 18,600,000 common shares at a price of US$13.45 each, raising total gross proceeds of US$250,170,000. The offering included an over-allotment option for underwriters to purchase an additional 2,790,000 shares. Proceeds will be used for general corporate purposes, including funding acquisitions and potential repayment of debts. The shares were offered under a short form prospectus and a registration statement in Canada and the U.S.
Osisko Gold Royalties Ltd has filed its Annual Information Form, Consolidated Annual Financial Statements, and Management's Discussion and Analysis for the year ending December 31, 2021. The corporation has also submitted its Annual Report on Form 40-F with the U.S. Securities and Exchange Commission. Shareholders can request hard copies of the financial statements at no charge. Osisko focuses on precious metal royalties in the Americas and has a diverse portfolio of over 160 royalties, anchored by a 5% royalty on the Canadian Malartic mine, Canada’s largest gold mine.
Osisko Gold Royalties Ltd (OR) announced a $90 million silver stream agreement through its subsidiary, Osisko Bermuda Limited, with Metals Acquisition Corp to facilitate the acquisition of the CSA mine in Australia. This deal secures 100% of payable silver production for the mine's life, generating an average of ~431koz annually. Furthermore, Osisko can access an additional $100 million through a copper stream option. The transaction enhances cash flow and offers strategic exposure to a high-grade copper asset, with anticipated closing in H2 2022, pending regulatory approvals.
Osisko Gold Royalties Ltd (OR: TSX & NYSE) announces a first quarter 2022 dividend of C$0.055 per common share, payable on April 14, 2022 to shareholders of record as of March 31, 2022. This dividend qualifies as an 'eligible dividend' under the Income Tax Act (Canada). For U.S. shareholders, the dollar equivalent will follow the Bank of Canada's rate on March 31, 2022. The company also has a dividend reinvestment plan, allowing shareholders to reinvest dividends. More information can be found on the company's website.
Osisko Gold Royalties Ltd (OR) reported strong financial results for 2021, achieving record revenues of $199.6 million from royalties and streams and a cash margin of 93%. The company earned 80,000 GEOs in line with guidance, while consolidated net loss attributable to shareholders was $23.6 million. For 2022, guidance includes a projected 90,000 to 95,000 GEOs and a 10% increase in quarterly dividends, reaching an annualized $0.22 per share. A 5-year growth outlook forecasts 130,000 to 140,000 GEOs by 2026, reflecting significant potential growth.
Osisko Gold Royalties Ltd (OR) announced a non-binding term sheet for a US$20-40 million metals stream to support Osisko Development Corp’s acquisition of the Trixie Mine and 17,000 acres in Utah's Tintic Mining District. The Trixie Mine is a high-grade gold source, historically producing 14,709 ounces at an average grade of 59 g/t. Osisko Development plans to expand production capacity from 20,000 to 100,000 ounces per annum by 2024. This investment is expected to enhance Osisko’s portfolio and leverage significant exploration potential in a prolific mining area.
Osisko Gold Royalties Ltd (OR) reported its preliminary Q4 2021 results, achieving approximately 19,830 attributable gold equivalent ounces (GEOs), totaling around 80,000 GEOs for the year, aligning with its guidance. The company recorded revenues of C$50.7 million and a cash margin of C$47.0 million, marking a quarterly record with a margin of 93%. Key asset advancements were noted, particularly at the Malartic property, with exploration successes expected to enhance production potential. Osisko's strategic focus remains on disciplined capital allocation and shareholder returns, including increased dividends and share buybacks.
Osisko Gold Royalties Ltd (OR:TSX & NYSE) has received approval from the Toronto Stock Exchange for a normal course issuer bid (NCIB Program) allowing repurchase of up to 16,530,688 common shares. The program is set to commence on December 12, 2021, and will run until December 11, 2022, with daily purchases capped at 87,264 shares. Osisko believes the market price does not reflect its underlying value, and the repurchase will benefit remaining shareholders. As of November 30, 2021, the company had 166,458,343 common shares outstanding.
Osisko Gold Royalties Ltd (OR: TSX & NYSE) has announced an agreement to acquire royalties from Talisker Resources Ltd for a total of CAD $7.5 million. The deal includes an additional 0.5% net smelter return (NSR) royalty on the Bralorne property, increasing Osisko’s total NSR interest to 1.7%. Additionally, Osisko will gain a 1.5% NSR on the newly acquired Ladner property and a future 1% NSR on the Golden Hornet property, contingent on Talisker's acquisition. The Bralorne site has historically produced over four million ounces of gold, while Ladner has an inferred resource of 691,540 ounces.
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