OSISKO REPORTS Q1 2022 RESULTS Record cash margin of $47.5 million from royalties and streams Operating cash flows from the royalties and streams segment of $40.5 million
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OSISKO REPORTS Q1 2022 RESULTS
Record cash margin of $47.5 million from royalties and streams
Operating cash flows from the royalties and streams segment of $40.5 million
Montréal, May 12, 2022 – Osisko Gold Royalties Ltd (the “Company” or “Osisko”) (OR: TSX & NYSE)
today announced its consolidated financial results for the first quarter of 2022. Amounts presented are
in Canadian dollars, except where otherwise noted.
Q1 2022 Financial Highlights
• 18,251 GEOs1 earned (Q1 2021 – 19,960 GEOs);
• Consolidated revenues of $59.4 million ($66.9 million in Q1 2021);
o Revenues from the royalties and streams segment2 of $50.7 million ($66.9 million in Q1
2021, including $17.9 million from offtakes);
o Revenues from the mining exploration and development segment 3 (i.e. Osisko
Development Corp.) of $8.7 million (net of intersegment transactions);
• Consolidated cash flows from operating activities of $23.6 million (Q1 2021 – $21.3 million);
o O perating cash flows from the royalties and streams segment of $40.5 million (Q1 2021
– $36.7 million);
o Operating cash flows from the mining exploration and development segment of
($16.9) million (Q1 2021 – ($15.4) million);
• Cash margin4 of 94% from royalties and streams (Q1 2021 – 94%);
• Consolidated net earnings attributable to Osisko’s shareholders of $0.3 million, or $ 0.00 per
share (Q1 2021 – $10.6 million or $0.06 per basic share);
• Consolidated adjusted earnings 4 of $ 2.2 million, or $ 0.01 per basic share ( Q1 2021 –
$17.9 million, $0.11 per basic share);
o Adjusted earnings from the royalty and stream segment of $24.8 million, or $ 0.15 per
basic share (Q1 2021 – $23.4 million, or $0.14 per basic share); and
o Adjusted loss from the mining exploration and development segment of $22.7 million, or
$0.14 per basic share (Q1 2021 – $5.5 million, or $0.03 per basic share).
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Sandeep Singh, President and CEO of Osisko commented: “ We achieved record cash margins in the
first quarter highlighting the strength of our high -quality asset base coupled with a surge in the gold
price. As previously mentioned, GEO deliveries are expected to increase over the course of the year as
seasonality impacts dissipate and ramp- ups progress at various assets. We are also excited to
announce that stream repayments have been reactivated from the Renard mine, including from a
diamond sale in May, and we have received repayment in full of amounts owing on the working capital
facility.
Given the current inflationary market dynamics, both globally and specific to the mining sector, we feel
Osisko offers a compelling value and growth investment, which is not subject to many of the same
inflationary risks.”
Financial Highlights by Operating Segment
(in thousands of dollars, except per share amounts)
As a result of its 70 % ownership in Osisko Development Corp. (“Osisko Development”), the assets,
liabilities, results of operations and cash flows of the Company consolidate the activities of Osisko
Development and its subsidiaries. The table below provides some financial highlights per operating
segment. More information per operating segment can be found in the consolidated financial statements
and management’s discussion and analysis for the three months ended March 31, 2022.
(i) Osisko Gold Royalties Ltd and its subsidiaries, excluding Osisko Development Corp. and its subsidiaries. Represents the royalty, stream and other
interests segment.
(ii) Osisko Development Corp. and its subsidiaries. Represents the exploration, evaluation and development of mining projects segm ent.
(iii) Cash margin is a non-IFRS financial performance measure for the royalties and streams segment which has no standard definition under IFRS. It is
calculated by deducting the cost of sales (excluding depletion) from the. Please refer to the Non- IFRS Financial Performance Measures section of the
MD&A for the three months ended March 31, 2022.
(iv) Adjusted earnings (loss) and adjusted earnings (loss) per basic share are non -IFRS financial performance measures which have no standard definition
under IFRS. Refer to the non-IFRS measures provided under the Non-IFRS Financial Performance Measures section of the Company’s MD&A for the
three months ended March 31, 2022.
(v) Consolidated results are net of the intersegment transactions. Refer to the Segment Disclosure section of the Company’s MD&A for the three months
ended March 31, 2022.
For the three months ended March 31,
Osisko Gold Royalties (i) Osisko Development (ii) Consolidated (v)
2022 2021 2022 2021 2022 2021
$ $ $ $ $ $
Cash (March 31, 2022 and Dec. 31, 2021) 392,648 82,291 56,802 33,407 449,450 115,698
Revenues 50,689 66,923 9,167 - 50,689 66,923
Cash margin (iii) 47,508 46,526 - - 47,508 46,526
Gross profit 36,210 34,599 - - 36,210 34,599
Operating expenses
(G&A, bus. dev and exploration) (6,257) (6,029) (7,928) (5,201) (14,185) (11,230)
Mining operating expenses - - (15,246) - - -
Net earnings (loss) 16,804 13,464 (22,333) (3,701) (5,529) 9,763
Net earnings (loss) attributable to Osisko’s
shareholders 16,804 13,464 (16,478) (2,907) 326 10,557
Net earnings (loss) per share attributable to
Osisko’s shareholders
0.10 0.08
(0.10) (0.02)
0.00 0.06
Adjusted net earnings (loss) (iv) 24,843 23,439 (22,670) (5,042) 2,173 18,397
Adjusted net earnings (loss) per basic share (iv) 0.15 0.14 (0.14) (0.03) 0.01 0.11
Cash flows from operating activities
Before working capital items 39,892 39,540 (17,269) 2,422 22,623 36,252
Working capital items 615 (2,802) 372 (12,126) 987 (14,928)
After working capital items 40,507 36,738 (16,897) (9,704) 23,610 21,324
Cash flows from investing activities (15,586) (13,781) 3,314 (21,708) (12,272) (29,779)
Cash flows from financing activities 285,528 (7,511) 37,137 35,613 322,665 28,102
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Other Highlights
• Bought deal public offering of 18,600,000 common shares at a price of US$13.45 per common
share for total gross proceeds of US$250.2 million;
• As a result of Stornoway Diamonds Canada Inc.’s (“Stornoway”) improved financial position, the
Renard stream was reactivated at the end of April. Stornoway’s cost reductions, coupled with
strengthening diamond prices resulted in positive cash generation at Renard over 2021;
• In January 2022, Osisko Development entered into definitive agreements to acquire 100% of
Tintic Consolidated Metals LLC (“Tintic”). Osisko Bermuda Limited (“Osisko Bermuda”) entered
into a non- binding metals stream term sheet with a wholly -owned subsidiary of Osisko
Development, which included an upfront deposit of between US$20 million and US$40 million.
In the event that the full US$40 million upfront deposit is utilized, Osisko Development will deliver
to Osisko Bermuda 5% of all metals produced from the Tintic property until 53,400 ounces of
refined gold have been delivered and 4.0% thereafter;
• Osisko Development closed private placements during the quarter for aggregate gross proceeds
of approximately $251 million. To date, the company has received gross proceeds of
$42.4 million. The remainder of the funds are held in escrow and will be released upon certain
conditions, including completion of the listing on the common shares on the New York Stock
Exchange and closing of the Tintic acquisition;
• Repayment in full of the outstanding revolving credit facility in April 2022 for $112.5 million;
• Publication in April of the inaugural Asset Handbook and the second edition of the environmental,
social and governance (“ESG”) report, Growing Responsibly; and
• Declared a quarterly dividend of $0.055 per common share payable on July 15, 2022 to
shareholders of record as of the close of business on June 30, 2022.
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Q1 2022 Results Conference Call Details
Conference Call: Thursday, May 12, 2022 at 8:00 am EDT
Dial-in Numbers: North American Toll-Free: 1 (888) 440-2180
Local and International: 1 (438) 803-0536
Access code: 1981388
Replay (available until May 27, 2022
at 11:59 pm EDT):
North American Toll-Free: 1 (800) 770-2030
Local and International: 1 (647) 362-9199
Access code: 1981388
Replay also available on our website at www.osiskogr.com
Qualified Person
The scientific and technical content of this news release has been reviewed and approved by Guy
Desharnais, Ph.D., P.Geo., Vice President, Project Evaluation at Osisko Gold Royalties Ltd, who is a
“qualified person” as defined by National Instrument 43- 101 – Standards of Dis closure for Mineral
Projects (“NI 43-101”).
About Osisko Gold Royalties Ltd
Osisko Gold Royalties Ltd is an intermediate precious metal royalty company which holds a North
American focused portfolio of over 165 royalties, streams and precious metal offtakes. Osisko’s portfolio
is anchored by its cornerstone asset, a 5% net smelter return royalty on the Canadian Malartic mine,
which is the largest gold mine in Canada.
Osisko’s head office is located at 1100 Avenue des Canadiens -de-Montréal, Suite 300, Montréal,
Québec, H3B 2S2.
For further information, please contact Osisko Gold Royalties Ltd:
Heather Taylor
Vice President, Investor Relations
Tel. (514) 940-0670 x105
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Notes:
(1) Gold Equivalent Ounces
GEOs are calculated on a quarterly basis and include royalties, streams and offtakes. Silver earned from royalty and stream agreements
are converted to gold equivalent ounces by multiplying the silver ounces earned by the average silver price for the period and dividing by
the average gold price for the period. Diamonds, other metals and cash royalties are converted into gold equivalent ounces by dividing
the associated revenue earned by the average gold price for the period. Offtake agreements are converted using the financial settlement
equivalent divided by the average gold price for the period.
Average Metal Prices and Exchange Rate
Three months ended
March 31,
2022 2021
Gold(i) $1,877 $1,794
Silver(ii) $24.01 $26.26
Exchange rate (US$/Can$)(iii) 1.2662 1.2626
(i) The London Bullion Market Association’s pm price in U.S. dollars.
(ii) The London Bullion Market Association’s price in U.S. dollars.
(iii) Bank of Canada daily rate.
(2) T he royalties and streams segment refers to the royalty, stream and other interests segment, which corresponds to the activities of Osisko
Gold Royalties Ltd and its subsidiaries, excluding Osisko Development Corp. and its subsidiaries.
(3) T he mining exploration and development segment refers to the mining exploration, evaluation and development segment, which
corresponds to the activities of Osisko Development Corp. and its subsidiaries.
(4) Non-IFRS Measures
The Company has included certain performance measures in this press release that do not have any standardized meaning prescribed by
International Financial Reporting Standards (IFRS) including (i) cash margin (in dollars and in percentage) for the royalties and streams
segment, (ii) adjusted earnings ( loss) and (iii) adjusted earnings (loss) per share. The presentation of these non-IFRS measures is
intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. These measures are not necessarily indicative of operating profit or cash flow from operations as
determined under IFRS. As Osisko’s operations are primarily focused on precious metals, the Company presents cash margins and
adjusted earnings as it believes that certain investors use this information, together with measures determined in accordance with IFRS, to
evaluate the Company’s performance in comparison to other companies in the precious metals mining industry who present results on
a similar basis. However, other companies may calculate these non-IFRS measures differently.
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Cash Margin (in dollars and in percentage of revenues)
Cash margin (in dollars) represents revenues from the royalties and streams segment less cost of sales (excluding depletion). Cash
margin (in percentage of revenues) represents the cash margin (in dollars) divided by revenues from the royalties and streams segment.
Three months ended
March 31,
2022 2021
$ $
Royalty and stream interests
Total Revenues 59,398 66,923
Less: Revenues from mining activities (Osisko Development) (8,709) -
Less: Revenues from offtake interests - (17,926)
Revenues from royalty and stream interests 50,689 48,977
Total Cost of sales (11,162) (20,397)
Less: Cost of sales from mining activities (Osisko Development) (7,981) -
Less: Cost of sales from offtake interests - 17,239
Cost of sales of royalty and stream interests (3,181) (3,158)
Revenues from royalty and stream interests 50,689 48,977
Less: Cost of sales of royalty and stream interests (3,181) (3,158)
Cash margin (in dollars) - royalty and stream interests 47,508 45,819
Cash margin (in percentage of revenues) - royalty and stream interests 94% 94%
Royalty and stream interests (excluding the Renard diamond stream)
Revenues from royalty and stream interests 50,689 48,977
Less: Revenues from the Renard diamond stream (7,190) (3,995)
Revenues from royalty and stream interests, excluding the Renard diamond stream 43,499 44,982
Cost of sales from royalty and stream interests (3,181) (3,158)
Less: Cost of sales from the Renard diamond stream 2,023 1,718
Cost of sales of royalty and stream interests, excluding the Renard diamond stream (1,158) (1,440)
Revenues from royalty and stream interests, excluding the Renard diamond stream 43,499 44,982
Less: Cost of sales of royalty and stream interests, excluding the Renard diamond stream (1,158) (1,440)
Cash margin (in dollars) 42,341 43,542
Cash margin (in percentage of revenues) 97% 97%
Offtake interests
Revenues from offtake interests - 17,926
Less: Cost of sales of offtake interests - (17,239)
Cash margin (in dollars) - 687
Cash margin (in percentage of revenues) - 4%
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Adjusted earnings (loss) and adjusted earnings (loss) per basic share
Adjusted earnings (loss) is defined as: net earnings (loss) adjusted for certain items: foreign exchange gain (loss), impairment of assets
(including impairment on financial assets and investments in associates), gains (losses) on disposal of exploration and evaluation assets,
unrealized gain (loss) on investments, share of loss of associates, deferred premium income on flow-through shares, deferred income tax
expense (recovery), transaction costs and other items such as non-cash gains (losses).
Adjusted earnings (loss) per basic share is obtained from the adjusted earnings (loss) divided by the weighted average number of common
shares outstanding for the period.
(i) Osisko Gold Royalties Ltd and its subsidiaries, excluding Osisko Development Corp. and its subsidiaries. Represents the royalt y, stream and
other interests segment.
(ii) Osisko Development Corp. and its subsidiaries. Represents the mining exploration, evaluation and development segment.
For the three months ended March 31,
2022 2021
Osisko Gold
Royalties (i)
Osisko
Development (ii) Consolidated
Osisko Gold
Royalties (i)
Osisko
Development (ii) Consolidated
(in thousands of dollars, except
per share amounts)
$ $ $ $ $ $
Net earnings (loss) 16,804 (22,333) (5,529) 13,464 (3,701) 9,763
Adjustments:
Impairment of assets 520 - 520 4,400 - 4,400
Foreign exchange (gain) loss (876) (524) (1,440) 29 744 773
Unrealized loss (gain) on investments 5,840 228 6,068 1,389 (1,310) 79
Share of loss of associates (2,604) 331 (2,273) (375) 407 32
Deferred premium income on flow-through shares - (341) (341) - (469) (469)
Deferred income tax expense (recovery) 5,159 (31) 5,128 4,532 (1,182) 3,350
Adjusted earnings (loss) 24,843 (22,670) 2,173 23,439 (5,511) 17,928
Weighted average number of
common shares outstanding (000’s) 166,926 166,926 166,926 165,842 165,842 165,842
Adjusted earnings (loss) per basic share 0.15 (0.14) 0.01 0.14 (0.03) 0.11
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Forward-looking Statements
Certain statements contained in this press release may be deemed "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and “forward- looking information” within the meaning of
applicable Canadian securities legislation. All statements in this press release, forward- looking statements are statements
other than statements of historical fact, that address, without limitation, future events, production estimates of Osisko’s assets
(including increase of production), timely developments of mining properties over which Osisko has royalties, streams, offtakes
and investments, management’s expectations regarding Osisko’s growth, results of operations, estimated future revenues,
production costs, carrying value of assets, ability to continue to pay dividend, requirements for additional capital, busines s
prospects and opportunities future demand for and fluctuation of prices of commodities (including outlook on gold, silver,
diamonds, other commodities) currency markets and general market conditions . In addition, statements and estimates
(including data in tables) relating to mineral reserves and resources and gold equivalent ounces are forward-looking
statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given
that the estimates will be realized. Forward-looking statements are statements that are not historical facts and are generally,
but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential",
"scheduled" and similar expressions or variations (including negative variations), or that events or conditions "will", "woul d",
"may", "could" or "should" occur. Forward-looking statements are subject to known and unknown risks, uncertainties and other
factors, most of which are beyond the control of Osisko, and actual results may accordingly differ materially from those in
forward-looking statements. Such risk factors include, without limitation: fluctuations in the prices of the commodities that drive
royalties, streams, offtakes and investments held by Osisko; fluctuations in the value of the Canadian dollar relative to the U.S.
dollar; regulatory changes by national and local governments, including permitting and licensing regimes and taxation policies;
regulations and political or economic developments in any of the countries where properties in which Osisko holds a royalty,
stream or other interest are located or through which they are held; risks related to the operators of the properties in which
Osisko holds a royalty, stream or other interests; timely development, permitting, construction, commencement of production,
ramp-up (including operating and technical challenges) on any of the properties in which Osisko holds a royalty, stream or
other interest; rate and timing of production differences from resource estimates or production forecasts by operators of
properties in which Osisko holds a royalty, stream or other interest; the unfavorable outcome of any challenges or litigation
relating title, permit or license with respect to any of the properties in which Osisko holds a royalty, stream or other interests or
to Osisko’s right thereon; differences in rate and timing of production from resource estimates or production forecasts by
operators of properties in which Osisko holds a royalty, stream or other interest, including conversion from resources to
reserves and ability to replace resources; business opportunities that become available to, or are pursued by Osisko; continued
availability of capital and financing and general economic, market or business conditions; risks and hazards associated with
the business of exploring, development and mining on any of the properties in which Osisko holds a royalty, stream or other
interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins,
flooding and other natural disasters or civil unrest or other uninsured risks, the integration of acquired assets and the responses
of relevant governments to the COVID-19 outbreak and the effectiveness of such response and the potential impact of COVID-
19 on Osisko’s business, operations and financial condition. The forward- looking statements contained in this press release
are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of
the properties in which Osisko holds a royalty, stream or other interest by the owners or operators of such properties in a
manner consist ent with past practice and with public disclosure (including forecast of production); the accuracy of public
statements and disclosures made by the owners or operators of such underlying properties (including expectations for the
development of underlying properties that are not yet in production); no adverse development in respect of any significant
property in which Osisko holds a royalty, stream or other interest; that statements and estimates relating to mineral reserve s
and resources by owners and operators of the properties in which Osisko holds a royalty, stream or other interest are accurate;
the Company’s ongoing income and assets relating to determination of its PFIC status; integration of acquired assets; and the
absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended.
For additional information on risks, uncertainties and assumptions, please refer to the most recent Annual Information Form of
Osisko filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov which also provides additional general assumptions
in connection with these statements. Osisko cautions that the foregoing list of risk and uncertainties is not exhaustive. Investors
and others should carefully consider the above factors as well as the uncertainties they represent and the risk they entail.
Osisko believes that the assumptions reflected in those forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be accurate as actual results and prospective events could materially differ from
those anticipated such the forward looking statements and such forward-looking statements included in this press release are
not guarantee of future performance and should not be unduly relied upon. These statements speak only as of the date of this
press release. Osisko undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise, other than as required by applicable law.