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) announced a fourth quarter 2021 dividend of C$0.055 per common share, scheduled for payment on January 14, 2022. Shareholders must be on record by December 31, 2021 to receive this eligible dividend. For U.S. shareholders, the dollar equivalent will be based on the Bank of Canada’s exchange rate on the record date. The company also offers a dividend reinvestment plan for eligible shareholders.
Osisko Gold Royalties reported Q3 2021 financial results, earning record revenues of $50.0 million, up from $41.2 million in Q3 2020. Operating cash flows from royalties and streams reached a record $44.1 million, while cash margin maintained at 93%, 97% excluding diamond streams. However, net earnings attributable to shareholders declined to $1.8 million or $0.01 per share, impacted by a $33.3 million impairment from Osisko Development. The company also declared a quarterly dividend of $0.055 per share, demonstrating ongoing commitment to shareholder returns.
Osisko Gold Royalties Ltd (OR) announces the acquisition of royalties from Barrick Gold Corporation for a total cash consideration of US$11,750,000. The transaction includes a 2% NSR royalty on the West Kenya project, a 1% NSR royalty on the Frontier project, and a 1% NSR royalty on the Central Houndé project. The West Kenya project, operated by Shanta Gold, shows significant potential with high-grade resources and a planned mine life of 9 years, producing around 105,000 ounces of gold annually. This acquisition enhances Osisko's portfolio, emphasizing growth-oriented investments.
Osisko Gold Royalties reported a strong performance in Q3 2021, earning approximately 20,032 gold equivalent ounces and generating C$50 million in revenues, with an impressive operating cash margin of C$46.5 million, reflecting a 93% margin. The company increased its dividend by 10% and repurchased over 1.7 million shares. Key exploration updates from partners indicate promising findings that support growth at multiple projects, including Canadian Malartic and Victoria Gold’s Eagle project. Osisko will release full results on November 9, 2021.
Osisko Gold Royalties Ltd (OR) has updated its normal course issuer bid (NCIB) program, repurchasing 1,267,666 common shares for C$18.5 million from January to August 2021, including 920,266 shares for C$14.1 million in August alone. The company aims to buy back up to 14,610,718 shares by December 11, 2021, believing their stock is undervalued. So far in 2021, Osisko has returned over $35 million to shareholders through repurchases and dividends, reaffirming its commitment to capital returns.
Osisko Gold Royalties Ltd (OR: TSX & NYSE) has announced a third quarter 2021 dividend of C$0.055 per common share, a 10% increase from the previous quarter, totaling an annualized dividend of C$0.22. This dividend will be paid on October 15, 2021, to shareholders on record as of September 30, 2021. President and CEO Sandeep Singh emphasized the company's financial strength and commitment to returning value to shareholders. Additionally, a dividend reinvestment plan is available for shareholders in Canada and the U.S.
Osisko Gold Royalties Ltd (OR) reported a strong Q2 2021, achieving record revenues of $49.9 million from royalties and streams, up from $28.7 million in Q2 2020. The company earned 20,178 GEOs, an increase from 12,245 GEOs year-over-year. Operating cash flows reached $30.9 million, while record operating cash flows from the royalties segment hit $37.3 million. However, a net loss of $14.8 million was reported due to a $36.1 million impairment charge. A quarterly dividend was raised by 10% to $0.055 per share. The company also expanded its credit facility.
Osisko Gold Royalties Ltd (OR: TSX & NYSE) announced a royalty transfer agreement with Sailfish Royalty Corp, acquiring up to 2.75% net smelter return royalty on the Tocantinzinho gold project for US$10 million. Located in Brazil, Tocantinzinho has proven and probable reserves of 1.78Moz gold. A feasibility study indicates a mine life of 10 years, with an annual gold production of 170Koz at a cost of US$615/oz. The project operator may buy down the royalty by 2%, paying US$5.5 million at construction time.
Osisko Gold Royalties Ltd (OR: TSX & NYSE) reported strong preliminary Q2 2021 results, earning approximately 20,178 attributable gold equivalent ounces (GEOs) and generating revenues of C$57.2 million. The cost of sales was C$10.1 million, leading to a record operating cash margin of approximately C$47.1 million, representing about 94%. The company anticipates a robust second half of the year with advancements in its asset portfolio, particularly at the Santana and Eagle mines. A conference call is scheduled for August 10, 2021, to discuss full results.
On May 12, 2021, Osisko Gold Royalties Ltd held its annual shareholder meeting, where all 9 director nominees were elected with significant support. The election results showcased strong backing for nominees such as John R. Baird and Sandeep Singh, receiving over 99% of votes cast in favor. Additionally, PricewaterhouseCoopers was appointed as the independent auditor for the upcoming year. The meeting also approved unallocated rights under the Employee Share Purchase Plan and the Restricted Share Unit Plan, indicating continued shareholder confidence in corporate governance and executive compensation strategies.
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