Osisko Announces Preliminary Q3 2023 Deliveries, Along with Record Quarterly Revenues and Cash Margin and Provides Portfolio Updates
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OSISKO ANNOUNCES PRELIMINARY Q3 2023 DELIVERIES, ALONG WITH
RECORD QUARTERLY REVENUES AND CASH MARGIN
AND PROVIDES PORTFOLIO UPDATES
Montréal, October 11th, 2023 – Osisko Gold Royalties Ltd (the “ Corporation” or “Osisko”) (OR: TSX & NYSE)
is pleased to provide an update on its third quarter 2023 deliveries, revenues, cash margin and recent asset
advancements. All monetary amounts included in this report are expressed in Canadian dollars, unless otherwise
noted.
PRELIMINARY Q3 2023 RESULTS
Osisko earned approximately 23,292 attributable gold equivalent ounces 1 (“GEOs”) in the third quarter of 2023,
including 1,386 GEOs earned from the recently acquired CSA silver stream.
Osisko recorded preliminary revenues from royalties and streams of $62.1 million during the third quarter and
preliminary cost of sales (excluding depletion) of $ 4.4 million, resulting in a record quarterly cash margin 2 of
approximately $57.7 million (or 93%).
Osisko’s cash balance was relatively stable at the end of the third quarter at approximately $70.8 million, resulting
in a net debt position of approximately $244.6 million as at September 30, 2023, representing an improvement of
$5.0 million despite additional investments in royalties completed during the quarter.
Paul Martin, Interim CEO of Osisko, commented: “Osisko delivered a solid quarter of GEOs earned, along with
record revenues and cash margin in Q3 despite challenges faced by some of our key operating partners over the
past several months. These include the forest fires in northern Canada, other ongoing ramp- up issues, and a
notable sharp decline in rough diamond prices. While we anticipate improved quarter-over-quarter performance at
several of our core producing assets, Renard will continue to be impacted by weak rough diamond prices and, as
a result, Osisko is assuming no reportable GEOs from Renard in Q4. As such, we now are guiding towards the
low end of our GEO delivery guidance for 2023.”
Osisko will provide full production and financial details with the release of its third quarter 2023 results after market
close on Wednesday, November 8th, 2023 followed by a conference call and webcast on Thursday, November 9th
at 10am ET. More details are provided at the end of this release.
PORTFOLIO UPDATE
Canadian Malartic Complex - Second Quarter Production & Underground Development Updates
(5% Net Smelter Return [“NSR”] royalty on open pit and 3-5% NSR royalty on underground)
On July 26th, Agnico Eagle Mines Limited (“Agnico Eagle”) announced second quarter 2023 gold production from
the Canadian Malartic Complex (“Canadian Malartic”) of 177,755 ounces. The majority of the gold produced during
the period was sourced from the Barnat pit, with the Canadian Malartic pit having finally been depleted in the
second quarter of 2023. Preparations for in-pit tailings disposal have commenced, which is expected to start in the
second half of 2024. Notably, gold production from the Odyssey mine via the ramp from Odyssey South in the
second quarter of 2023 totaled 6,747 ounces. On June 28th Canadian Malartic reached a milestone by pouring its
seven millionth gold ounce since achieving commercial production in 2011. Osisko would like to extend its
congratulations to Agnico and the Canadian Malartic team on this remarkable achievement .
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In addition to the results of an internal study on the Odyssey Underground mine released on June 2 0th (see
Figure 1, below), on July 26 th, Agnico Eagle also provided key highlights of the 2023 Odyssey Study and work
completed in the second quarter. These include:
• Approximately 60% of the surface construction has been completed with approximately US$429 million spent
on construction and development activities through June 30, 2023.
• As at June 30, 2023, approximately 60 meters of the shaft had been sunk, with approximately 50 meters of
that concrete-lined. Shaft sinking activities increased through the quarter, with the ongoing commissioning of
shaft sinking equipment.
• The commissioning of the paste plant was expected to be completed in the third quarter of 2023, which will
facilitate the production ramp-up to the design rate of 3,500 tonnes per day (“tpd”) in 2024.
• The extraction of the first stope at Odyssey South in the second quarter of 2023 has shown positive
reconciliation with respect to tonnes and gold grade, reflecting the potential contribution from internal zones
(previously unclassified mineralized zones within the porphyry, currently being infill drilled and defined). Agnico
Eagle continues drilling to better identify the internal zones that have the potential to improve the production
profile at Odyssey South. The production levels below level 36 have been redesigned to capture the potential
mining recovery of these zones.
• The next phase of surface construction and underground mine development is on schedule, with a focus on
initiating production from East Gouldie via ramp and shaft in 2027. The main hoist building is expected to be
completed in 2025, while the ore silo, the second phase of the paste plant, the shaft sinking and the first
loading pocket at mid shaft are expected to be completed in 2027.
Figure 1: Canadian Malartic Production Profile
Source: Agnico Eagle Press Release, June 20, 2023
The recently completed (second quarter of 2023) internal study on Odyssey Underground was previously
highlighted by the fact that Agnico Eagle’s confidence in the overall mine plan had improved with approximately
53% of mineable gold ounces now categorized as I ndicated mineral resources compared to approximately 5% in
the internal study completed in 2020. Further to this, the larger mineable mineral resource extended the mine life
to 2042 and increased the forecast gold production for the Odyssey mine by 23%, or 1.7 million ounces of gold,
compared to the 2020 Odyssey Study.
On the exploration front, up to 16 drill rigs were active on the Canadian Malartic property during the second quarter
and 32,285 meters of drilling were completed. Drilling targeted several areas that are part of the Odyssey mine,
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including the infill of the East Gouldie deposit from surface, and of the Odyssey South and Odyssey internal zones
from the exploration ramp.
Exploration drilling also continued to investigate the broader East Gouldie mineralized zone and extended the
zone laterally to the east and to the west. Regional exploration drilling totaled 3,000 meters during the second
quarter, with work resuming on the Rand Malartic property to test the extension of the Odyssey mine's different
zones.
CSA - Exploration and Operations Update
(100% Silver Stream and 3% Copper Stream [Cu Stream Commences June 2024])
On September 11 th, Metals Acquisition Limited (“MAC”) reported July and August 2023 production (the first two
full months of M AC’s ownership) of 7,294 tonnes of copper from the CSA Mine (“CSA”). Mill throughput in July
2023 of 118kt of ore was a record and the focus is on increasing ore from the mine to fill the excess plant capacity.
In addition, and also in the third quarter, on July 31st and September 11th respectively, MAC announced the results
from the ongoing resource infill and near mine exploration drill programs at CSA. These results included:
• 50.4 meters @ 8.9% Cu and 36 g/t Ag, from 170.6 meters in UDD20134
• 25.5 meters @ 12.7% Cu and 55 g/t Ag, from 150.5 meters in UDD20128
• 20.7 meters @ 14.4% Cu and 61 g/t Ag, from 150.5 meters in UDD20147A
• 28.7 meters @ 10.6% Cu and 41 g/t Ag, from 179.8 meters in UDD20140
• 21.5 meters @ 7.7% Cu and 32 g/t Ag, from 139.7 meters in UDD21049
Drilling has continued to demonstrate the continuity and high- grade nature of the CSA ore bodies. These holes
are predominately across the QTSN and QTSC deposits and highlighted potential lode extensions down dip and
along section and opportunities for thicker lode interpretations . All drill results are from drilling that has been
completed after the December 2022 Mineral Resource Estimate and will be incorporated into the 2023 Mineral
Resource Estimate.
Figures 2 & 2A: CSA Copper Mine Long Section - Location of Some Recently Published Drill Results
Source: MAC Press Release, September 11, 2023
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Mantos Blancos - Phase 1 Expansion Ramp Up Details
(100% Silver Stream)
On August 2 nd, Capstone Copper Corp. (“Capstone”) discussed its progress on the ramp up of the Phase I
debottlenecking project at the Mantos Blancos mine ("Mantos Blancos") . Capstone has experienced lower mill
throughput of late as a result of mill downtime caused by unplanned repair and maintenance of a mill lubrication
system, tailings dewatering challenges due to presence of clays in the top benches of Phase 20, and other
challenges related to the integration of pre- existing and new equipment. A plan to address the plant stability is
underway that includes improved maintenance and optimization of the concentrator. Capstone expects Mantos
Blancos to be consistently delivering higher throughput rates in the second half of 2023, and to be fully ramped up
to design capacity (~20,000 tpd) by year end.
Capstone is currently evaluating the potential to further increase throughput of the Mantos Blancos sulphide
concentrator plant from 20,000 tpd to 27,000 tpd using idled mill capacity . The Mantos Blancos Phase II
debottlenecking project feasibility study is expected to be released in the second half of 2024.
On September 28th, Capstone announced that the Copper Mark had been awarded to Mantos Blancos, highlighting
Capstone’s commitment to responsible operating practices, the environment, employees, local communities and
governments. The Copper Mark is a comprehensive assurance framework, developed to ensure that value chain
participants demonstrate best practice in responsible production and contribute to the United Nations Sustainable
Development Goals.
Eagle - 2023 Guidance Maintained After Solid Third Quarter and Despite Wildfire Interruptions
(5% NSR Royalty)
On October 4 th, Victoria Gold (“Victoria”) announced its third quarter production results. The Eagle Gold mine
(“Eagle”) produced 41,561 ounces of gold during the period from July 1st to September 30th, 2023. Year-to-date
2023 gold production was 124,749 ounces. Gold production was up by 17% in the first nine months of 2023
compared to the same period in 2022 while third quarter production decreased 17% year -over-year. Both the
quarterly decrease year-over-year and the 9-month year-to-date increase are due to a reduction in seasonality as
a result of year -round ore stacking on the heap leach pad, a more even distribution of planned maintenance
throughout the year and a growing heap leach pad which moderates quar ter-over-quarter gold production. The
third quarter quarter-over-quarter decrease in grade was due to mine sequencing. Ore and waste mined, ore
stacked on the heap leach pad and gold produced were all negatively impacted during the third quarter of 2023
by an approximate two-week evacuation in early August due to wildfire activity.
On September 14 th, Victoria announced the first analytical results from the 2023 exploration campaign at the
Raven deposit. Raven was the primary focus of the exploration efforts with over 13,200 meters of diamond drilling
completed. Highlights include 7.80 g/t Au over 6.0 meters from 235.5 meters, and 3.45 g/t Au over 27.5 meters
from 239.0 meters. Victoria anticipates releasing an updated Raven Mineral Resource Estimate (“MRE”) after the
completion of the 2023 field season including receipt and analysis of all results.
Éléonore - Back Up and Running After Wildfire Evacuation
(2.2-3.5% NSR Royalty)
During Newmont Corporation’s (“Newmont”) second quarter results conference call held on July 20 th, Newmont’s
management noted at the time that in the second week of June , the company made the swift and proactive
decision to evacuate its workforce and place the Éléonore gold mine (“Éléonore”) on care and maintenance to
protect the company’s employees and contractors. On July 20th, Newmont added that it was then safely ramping
up production activities as the forest fire threat continued to abate. Along with its second quarter results, Newmont
noted that Éléonore produced 48,000 ounces of gold during the period, and that annual production guidance range
was still being maintained at 265,000-295,000 ounces of gold.
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Island Gold - Expecting Stronger Mining and Milling Rates in Second Half of 2023
(1.38%-3% NSR Royalty)
On July 26th, Alamos Gold Inc. (“Alamos”) reported that Island Gold mine (“Island Gold”) produced 30,500 ounces
of gold in the second quarter of 2023 (vs. 32,900 ounces in the first quarter) reflecting lower tonnes and grades
processed. Underground mining rates averaged 1,105 tpd in the second quarter, lower than both annual guidance
and the prior year period reflecting unplanned downtime due to smoke from wildfires in Northern Ontario as well
as weather related power outages. Stronger mining and milling rates are expected in the second half of the year,
the operation therefore remains on track to meet full year production guidance of 120,000-135,000 ounces of gold.
With respect to Island Gold’s Phase 3+ Expansion, total capital expenditures were US$54.7 million in the second
quarter with spending through the period focused on shaft site infrastructure, including the hoist house and
headframe. The expanded and accelerated mine plan as part of Phase 3+ also transitions a greater proportion of
production towards Osisko’s 2% and 3% NSR royalty boundaries earlier in the mine plan, as opposed to the
mineral inventory covered by Osisko’s current 1.38% NSR royalty.
A total of US $14 million is budgeted for exploration at Island Gold in 2023. For the past several years, the
exploration focus has been on adding high- grade mineral resources at depth in advance of the Phase 3+
Expansion study, primarily through surface directional drilling. The underground exploration drilling program has
been expanded from 27,500 met ers in 2022 to 45,000 meters in 2023 and is focused on defining new Mineral
Reserves and Resources in proximity to existing production horizons and infrastructure including along strike, and
in the hanging- wall and footwall. These potential high- grade mineral reserve and resource additions would be
low-cost to develop and could be incorporated into the mine plan and mined within the next several years.
Sasa - Steady Third Quarter Operations + Progress on New Infrastructure
(100% Silver Stream)
On October 10th, Central Asia Metals plc (“CAML”) provided a third quarter operations update from its Sasa zinc -
lead mine in North Macedonia. During the period, 10,249 tonnes of concentrate containing 50.0% zinc and 9,919
tonnes of concentrate containing 71.0% lead were produced. Payable base metal in concentrate sales for the
third quarter 2023 were 4,097 tonnes of zinc and 7,252 tonnes of lead. Sasa noted that it sold 95,044 ounces of
payable silver to Osisko Gold Royalties, in accordance with its streaming agreement.
Phase two of the Central Decline development at depths beneath the 910 metre level is underway and, as at
September 30th, the decline had been developed down to 860 metres. While Sasa awaits a component to enable
testing of cemented backfill, mining on the 800 metre level that has been prepared for paste fill mining operations
has now commenced. Construction of the dry stack tailings plant project has commenced, as has land clearance
for the dry stack tailings landform.
Seabee - Update
(3% NSR Royalty)
On August 2nd, SSR Mining Inc.’s (“SSR Mining”) announced that in the second quarter, underground mining rates
rebounded, averaging more than 1,300 tpd reflecting the ongoing success of continuous improvement initiatives
at the site. Processed grades improved in July, resulting in 8,000 ounces of gold produced during the month. SSR
Mining noted that after the strong July, Seabee is positioned for a stronger second half of 2023.
SSR Mining continues to advance its near-mine exploration at Seabee, prioritizing mineral resource conversion
activities to ensure growth and mine life extensions in the future.
Lamaque - Update
(1% NSR Royalty)
On October 1st, Eldorado Gold Corporation (“Eldorado”) announced that Lamaque produced 42,691 ounces of
gold in the third quarter. T hird quarter production increased slightly over the first and second quarter. Production
was impacted by slower than expected development in the underground as a result of suspended shifts in the
second quarter due to the wildfires in the region. In the fourth quarter, Eldorado expects to continue to push
development, allowing access to higher grade stopes from the C4 zone.
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The second half of the year is expected to be stronger as both processing rates and grade increase. In 2023,
production guidance at Lamaque is forecasted to be 170,000 to 180,000 ounces of gold.
Eldorado also highlighted that exploration results at Ormaque continue to demonstrate the potential to increase
resources. Partial results from resource conversion drilling will be incorporated in a resource update later in 2023
and an inaugural reserve on Ormaque in 2024.
Gibraltar - Throughput and Production Improve Quarter-Over-Quarter
(87.5% Silver Stream)
On October 4 th, Taseko M ines Limited (“Taseko”) announced that during the thir d quarter of 2023, Gibraltar
produced 35 million pounds of copper and 369,000 pounds of molybdenum. The 25% quarter -over-quarter
increase in copper production was a result of higher grades, improved recoveries and increased mill throughput.
Mining in the Gibraltar pit is progressing on plan and the lower benches are providing the ore quality the company
had been expecting. Mining operations are now well established in the lower be nches of the Gibraltar pit, which
have higher grades and larger, more consistent ore zones. Notably in June and July , Taseko benefited from the
softer ore in the Gibraltar pit , and mill throughput averaged well above nameplate capacity. The Gibraltar pit will
be the sole source of ore for the remainder of 2023, resulting in the higher production already seen in the third
quarter; this is expected to continue through the final quarter of the year.
Pan - Ongoing Exploration Success
(4% NSR Royalty)
On October 10th, Calibre Mining Corp. (“Calibre”) reported third quarter gold production from Pan of 9,729 ounces,
down slightly, but effectively in-line with Calibre’s output in the second quarter. Full year 2023 production guidance
from the mine was maintained at 40,000-45,000 ounces of gold.
On August 1st, Calibre announced additional near surface, resource expansion assay results from its 2023 drill
program at Pan. Results at the Dynamite North and Palomino targets located immediately north and south of the
current open pit operation, respectively, continue to expand zones with grades higher than Pan’s stated mineral
resource grade of 0.4 g/t Au. Currently a small amount of material at Palomino exists in Inferred resources, and
recent results come from targets that immediately surround the current open pit operations. The potential now
exists to materially increase resource ounces, grade and confi dence south of the Pan mine and the Palomino
deposit remains open to the southeast and at shallow depths. Some highlight intercepts include 1.23 g/t Au over
38.1 meters, 2.56 g/t Au over 10.7 meters and 1.13 g/t Au over 22.9 meters. All drill targets are l ocated near-
surface in oxidized limestone. Given the proximity to the current open pit, and the fact that Palomino is within the
permitted area, Calibre has indicated they could start mining at Palomino as early as 2024.
Renard - Update
(9.6% Diamond Stream)
After a two-week interruption due to forest fires near the mine site, Stornoway Diamonds (Canada) Inc. resumed
mining operations on July 1st and the diamond recovery plant restarted on July 4th. As a result of the temporary
evacuation, there has been a moderate impact on deliveries from Renard in the third quarter of 2023. More
importantly, the diamond market has seen continued softening over the second and third quarter due to low
polished stone demand in both the United States and Chinese markets. Furth er exacerbating the situation for
Renard, the Indian diamond industry has called for a voluntary halt on all rough diamond imports for a two- month
period (October and November) to alleviate pressures faced by manufacturers holding high levels of polished
inventory. Given these headwinds, Renard’s equity shareholders are currently exploring a variety of alternatives
which will include providing funding for near -term working capital shortfalls at the operation. Taking into account
all of the above, Osisko no w expects Renard will provide no reportable GEOs under its diamond stream for at
least the remainder of the year.
Corvette - Maiden CV5 MRE Delive rs on Expectations + Subsequent Strategic Investment by A lbemarle
(2% NSR Royalty on Lithium)
On July 30 th, Patriot Battery Metals Inc. (“Patriot”) announced the inaugural MRE for the CV5 Spodumene
Pegmatite at its wholly owned Corvette Property, located in the Eeyou Istchee James Bay region of Qué bec. The
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CV5 spodumene pegmatite is located approximately 13.5 kilometers south of the regional and all‑weather Trans-
Taiga Road and powerline infrastructure corridor, and within 50 kilometers of the La-Grande 4 (LG4) hydroelectric
dam complex.
The MRE at CV5 has established it as the largest lithium pegmatite mineral resource in the Americas, returning
109.2 million tonnes at 1.42% Lithium Oxide (“Li 2O”) and 160 parts per million (“ppm”) Tantalum Pentoxide of
Inferred resources, at a cut -off grade of 0.40% Li 2O, for a total of 3,835,000 tonnes contained lithium carbonate
equivalent. Additionally, and as reported by Patriot, the resource and geological modelling has outlined significant
potential for growth at CV5, which remains open at both ends along strike, and to depth along a significant portion
of its length.
Osisko holds a sliding scale NSR royalty of 1.5-3.5% on precious metals, and 2.0% on all other products, including
Lithium, at Corvette. Osisko estimates that a large majority (~80- 95%) of the CV5 MRE falls on its 2.0% Lithium
NSR royalty area ( see Figure 3 below) . The inaugural MRE includes only the CV5 Spodumene Pegmatite, and
therefore does not include any of the other known spodumene pegmatite clusters on the Property – CV4, CV8,
CV9, CV10, CV12, and CV13; some of which are covered Osisko’s royalty.
On July 31 st, Patriot announced a $109 million strategic equity investment ( the “Strategic Investment”) by
Albemarle Corporation (“Albemarle”). Upon closing of the Strategic Investment, Albemarle will own approximately
4.9% of Patriot’s issued and outstanding common shares on a fully-diluted in-the-money basis, or 6.4% on a non-
diluted, issued and outstanding basis. The proceeds from the Strategic Investment will be used to accelerate the
development activities at Corvette and for general corporate purposes . Osisko believes the strategic investment
serves to further underpin the quality of this asset on a global scale.
On September 24 th, Patriot announced drill results confirming extension of the CV5 spodumene pegmatite by
0.65 kilometers since the MRE to attain a total length of 4.35 kilometers. This is highlighted by several drill
intersections of over 90 meters of cumulative core length hosting spodumene bearing pegmatite. Patriot also
announced an initial drill campaign on the CV9 pegmatite cluster.
Figure 3 : Map from Patriot’s July 30 th, 2023 press release with Osisko’s 2% NSR Lithium Royalty coverage
overlayed in a yellow outline.
Source: Osisko Press Release, August 1st, 2023
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Hermosa - Taylor Development Update
(1% NSR Royalty on Taylor and Peake)
On August 23 rd, along with its financial results and outlook for the year ended June 30 th, 2023, South32 Ltd.
(“South32”) provided additional information with respect to its activity and timeline at the Hermosa Taylor zinc -
lead-silver development project. South32 highlighted that a final Feasibility Study and final investment decision
(FID) is still expected in 2023. South32 is currently optimizing the mine development schedule in accordance with
FAST-41 permitting. To qualify for the FAST -41 process, compl ex critical infrastructure projects must meet
rigorous criteria to demonstrate benefit to the United States. Further to this, the company is evaluating the
opportunity for an extended mine life of up to ~30 years, at a nameplate processing capacity of 4.3 million tonnes
per annum.
South32 noted that it was commissioning a second water treatment plant to support orebody dewatering, enabling
access to the Taylor and Clark deposits. Dewatering wells to support shaft sinking are currently under construction,
while the pre-sink shaft and initial site infrastructure development is already underway. Finally, on the exploration
front, South32 is continuing to drill the Peake Prospect (see Figure 4, below) following high-grade copper results.
Recent Peake drilling returned the best copper results to date, with 139 meter s at 2.49% copper equivalent
(“CuEq”) including 58.2 meters at 3.84% CuEq.
Figure 4: South32 Recent Drilling at Peake Target
Source: South32 Corporate Presentation, August 23, 2023
Costa Fuego - Project Footprint Set to Grow & Updated Resource Drilling Commences
(1% NSR Royalty on Copper and 3% NSR Royalty on Gold)
On August 28th, Hot Chili Limited’s (“Hot Chili”) announced that it had entered into a binding letter of intent with
Bastion Minerals Limited (“Bastion”) for the grant to Hot Chili of an option to acquire 100% of Bastion’s Cometa
Project in Chile (“Cometa” ), located near Hot Chili’s Costa Fuego Copper -Gold Project (“Costa Fuego”) in the
coastal range of the Atacama Region, Chile. Cometa consists of exploration and mining concessions covering
approximately 56 square kilometers in area located approximately 1 5 kilometers southeast of Costa Fuego’s
planned operating center and contiguous with Hot Chili’s landholdings in the region. This option is another step in
Hot Chili’s consolidation strategy for the Costa Fuego copper project.
On August 3rd, Hot Chili announced that drilling has re-commenced across the western extension of the Cortadera
porphyry resource. Drilling operations have been underway since late July with one reverse circulation rig in