OSISKO REPORTS Q2 2024 RESULTS Record operating cash flows of $52.3 million with quarterly cash margin of 97% Appointment of Ms. Wendy Louie to the Board of Directors
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OSISKO REPORTS Q2 2024 RESULTS
Record operating cash flows of $52.3 million with quarterly cash margin of 97%
Appointment of Ms. Wendy Louie to the Board of Directors
Montréal, August 6, 2024 – Osisko Gold Royalties Ltd (the “Company” or “Osisko”) (OR: TSX & NYSE) today
announced its consolidated financial results for the second quarter of 2024. Amounts presented are in Canadian
dollars, except where otherwise noted.
Highlights
• 20,068 gold equivalent ounces1 (“GEOs”) earned (24,645 GEOs in Q2 2023);
• Revenues from royalties and streams of $64.8 million ($60.5 million in Q2 2023);
• Record cash flows generated by operating activities of $52.3 million ($47.4 million in Q2 2023);
• Net loss of $21.1 million, $0.11 per basic share ( net earnings of $18.0 million, $0.10 per basic share in Q2
2023), as a result of a non-cash impairment loss of $67.8 million on the Eagle gold royalty, representing 100%
of the net book value on June 30, 2024 ($49.9 million, net of income taxes);
• Record adjusted earnings2 of $33.2 million, $0.18 per basic share ($27.2 million, $0.15 per basic share in Q2
2023);
• Repayment of $ 44.2 million under the revolving credit facility and extension of the maturity date from
September 29, 2026 to April 30, 2028;
• Cash balance of $65.7 million and debt outstanding of $109.0 million as at June 30, 2024;
• Publication of the fourth edition of the Company’s sustainability report, Growing Responsibly and the 2024 Asset
Handbook; and,
• Declaration of a quarterly dividend of $0.065 per common share paid on July 15, 2024 to shareholders of record
as of the close of business on June 28, 2024, an increase of 8%.
Subsequent to June 30, 2024
• Acquisition by Osisko Bermuda Limited of a new gold stream on SolGold plc’s Cascabel copper-gold project in
Ecuador;
• First delivery under the CSA copper stream from Metals Acquisition Limited;
• First payment from Agnico Eagle Mines Ltd. under the Akasaba West 2.5% NSR royalty;
• Additional repayments of $13.8 million (US$10.0 million) on the revolving credit facility; and
• Declaration of a quarterly dividend of $0.065 per common share payable on October 15, 2024 to shareholders
of record as of the close of business on September 30, 2024.
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Appointment of Ms. Wendy Louie to Osisko’s Board of Directors
Osisko is also pleased to announce the appointment of Ms. Wendy Louie to its Board of Directors.
Ms. Louie is a Canadian Chartered Professional Accountant with over 25 years of diverse finance and leadership
experience focused primarily on the mining industry. Ms. Louie was the Vice President Finance and CFO of Sabina
Gold and Silver Corp. until its acquisition by B2Gold Corp in April 2023. Prior to that, Ms. Louie also held several
senior management roles at Goldcorp Inc. from 2006 to 2016 serving as Vice President Finance, Vice President
Reporting and Assistant Controller. From 2004 to 2006, Ms. Louie was also a Senior Tax Manager at Ernst & Young
and from 1995 to 2004, she held various finance positions with Duke Energy Canada. Ms. Louie currently serves
as an Independent Director for Liberty Gold Corp.
Mr. Norman MacDonald, Chair of Osisko’s Board of Directors commented: “We are very excited to have Wendy
join Osisko’s Board of Directors. Her wealth of experience at the corporate level, with her having held various senior
finance roles at growth- oriented resource companies both big and small , made her an ideal candidate to be
appointed as Osisko’s newest Independent Director. Her proven track record, attention to detail, and dedication to
the highest professional standards will no doubt benefit Osisko and its shareholders going forward.”
Additional Commentary
Jason Attew, President & CEO of Osisko commented: “Osisko’s second quarter of 2024 was a markedly busy one,
thanks to the Company’s robust corporate development pipeline and its ever-evolving portfolio of assets. Increased
commodity prices resulted in strong revenues and record operating cash flows that allowed Osisko to continue to
rapidly pay down its revolving credit facility. As such, Osisko’s balance sheet remains well-positioned for the future
deployment of capital towards new accretive growth opportunities. A perfect example of this was the recent
announcement of the acquisition of the Cascabel gold stream by Osisko Bermuda, a transaction that was completed
subsequent to quarter-end and one that provides the Company with an additional long-term growth lever on a tier-1
copper-gold asset3.
Prior to the heap leach facility failure at Victoria Gold’s Eagle mine, Osisko was tracking well with regard to its
previously published 2024 GEO delivery guidance range of 82,000 - 92,000 GEOs. However, under our assumption
that production at Eagle will remain suspended through to the end of 2024, the Company has decided to adjust its
2024 GEO delivery guidance range to 77,000 – 83,000 GEOs. The revised guidance also factors in the recently
disclosed two-month delay in Capstone’s ramp-up to 20,000 tonnes per day at Mantos Blancos. Recall that we had
previously expected a marginally stronger second half to the year in 2024, thanks mostly to the CSA copper stream,
and to a lesser extent, our NSR royalties at Akasaba West and Tocantinzinho; two out of three of these assets , in
fact, are already contributing to Osisko’s top line, with first payments from Tocantinzinho expected in the fourth
quarter. Finally, at Namdini, the project is still on schedule to pour first gold before end- of-year, thus providing
Osisko with additional growth heading into 2025.”
Q2 2024 RESULTS CONFERENCE AND WEBCAST CALL DETAILS
Conference Call: Wednesday, August 7th, 2024 at 10:00 am ET
Dial-in Numbers:
(Option 1)
North American Toll-Free: 1 (800) 717-1738
Local – Montréal: 1 (514) 400-3792
Local - Toronto: 1 (289) 514-5100
Local - New York: 1 (646) 307-1865
Conference ID: 66153
Webcast link:
(Option 2)
https://viavid.webcasts.com/starthere.jsp?ei=1679304&tp_key=1149f8ec91
Replay (available until
Monday, September 9th at
11:59 am ET):
North American Toll-Free: 1 (888) 660-6264
Local - Toronto: 1 (289) 819-1325
Local - New York: 1 (646) 517-3975
Playback Passcode: 66153#
Replay also available on our website at www.osiskogr.com
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Qualified Person
The scientific and technical content of this news release has been reviewed and approved by Mr. 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 Disclosure 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 185 royalties, streams and precious metal offtakes, including 20 producing assets. Osisko’s portfolio
is anchored by its cornerstone asset, a 3-5% net smelter return royalty on the Canadian Malartic Complex , home
to one of Canada’s largest gold mines.
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:
Grant Moenting Heather Taylor
Vice President, Capital Markets Vice President, Sustainability and Communications
Tel: (647) 477-2087 x116 Tel: (647) 477-2087 x105
Mobile: (365) 275-1954
Email: [email protected] Email: [email protected]
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Notes:
(1) Gold Equivalent Ounces
GEOs are calculated on a quarterly basis and include royalties and streams. Silver ounces and copper tonnes earned from royalty and
stream agreements are converted to gold equivalent ounces by multiplying the silver ounces or copper tonnes by the average silver price
per ounce or copper price per tonne for the period and dividing by the average gold price per ounce for the period. Diamonds, other metals
and cash royalties are converted into gold equivalent ounces by dividing the associated revenue by the average gold price per ounce for
the period.
Average Metal Prices and Exchange Rate
Three months ended
June 30,
2024 2023
Gold(i) $2,338 $1,976
Silver(ii) $28.84 $24.13
Exchange rate (US$/Can$)(iii) 1.3683 1.3428
(i) The London Bullion Market Association’s PM price in U.S. dollars per ounce.
(ii) The London Bullion Market Association’s price in U.S. dollars per ounce.
(iii) Bank of Canada daily rate.
(2) Non-IFRS Performance Measures
The Company has included certain performance measures in this press release that do not have any standardized meaning prescribed by
IFRS Accounting Standards including (i) cash margin (in dollars and in percentage of revenues), (ii) adjusted earnings and (i ii) adjusted
earnings per basic 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 Accounting Standards. These
measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS Accounting Standards.
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 Accounting Standards, 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.
Cash Margin (in dollars and in percentage of revenues)
Cash margin (in dollars) represents revenues less cost of sales (excluding depletion). Cash margin (in percentage of revenues) represents
the cash margin (in dollars) divided by revenues.
Three months ended
June 30,
Six months ended
June 30,
(in thousands of dollars) 2024 2023 2024 2023
$ $ $ $
Royalty interests
Revenues 46,236 39,323 90,780 78,501
Less: cost of sales (excluding depletion) (145) (205) (250) (340)
Cash margin (in dollars) 46,091 39,118 90,530 78,161
Depletion (5,361) (5,610) (10,895) (12,458)
Gross profit 40,730 33,508 79,635 65,703
Stream interests
Revenues 18,610 21,177 34,817 41,586
Less: cost of sales (excluding depletion) (2,081) (4,055) (3,809) (7,961)
Cash margin (in dollars) 16,529 17,122 31,008 33,625
Depletion (5,052) (7,357) (11,042) (14,004)
Gross profit 11,477 9,765 19,966 19,621
Royalty and stream interests
Total cash margin (in dollars) 62,620 56,240 121,538 111,786
Divided by: total revenues 64,846 60,500 125,597 120,087
Cash margin (in percentage of revenues) 96.6% 93.0% 96.8% 93.1%
Total – Gross profit 52,207 43,273 99,601 85,324
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Adjusted earnings and adjusted earnings per basic share
Adjusted earnings is defined as: net earnings (loss), adjusted for certain items: foreign exchange gains (losses), impairment charges and
reversal related to royalty, stream and other interests, changes in allowance for expected credit losses, write- offs and impairment of
investments, gains (losses) on disposal of assets, gains (losses) on investments, share of income (loss) of associates, trans action costs
and other items such as non-cash gains (losses), as well as the impact of income taxes on these items. Adjusted earnings per basic share
is obtained from the adjusted earnings divided by the weighted average number of common shares outstanding for the period.
Three months ended
June 30,
Six months ended
June 30,
2024 2023 2024 2023
(in thousands of dollars,
except per share amounts)
$ $ $ $
Net (loss) earnings (21,115) 17,961 (6,042) 38,809
Adjustments:
Impairment of royalty interests 67,832 6,629 67,832 6,629
Foreign exchange loss 1,069 172 4,319 153
Share of loss (income) of associates 3,117 (19,167) 16,675 (13,022)
Changes in allowance for expected
credit losses and write-offs - 19,860 (1,895) 20,131
Loss (gain) on investments 355 4,066 (101) 1,969
Tax impact of adjustments (18,093) (2,300) (17,909) (2,293)
Adjusted earnings 33,165 27,221 62,879 52,376
Weighted average number of
common shares outstanding (000’s) 186,217 185,302 186,009 184,990
Adjusted earnings per basic share 0.18 0.15 0.34 0.28
(3) Please refer to SolGold plc’s press release dated May 14, 2024 and entitled “SolGold plc Key Financial Developments” available on
SolGold’s SEDAR+ profile at www.sedarplus.ca.
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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. Forward-looking statements are statements other than statements of historical fact, that address,
without limitation, future events, that Osisko will be able to deploy capital toward accretive growth opportunities, that Osisko will
meet its revised guidance estimate, and that results for the second half of the year will be, all things being equal, stronger.
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”, “would”, “may”, “could” or “should” occur. F orward-
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, (i) with respect to properties in which Osisko holds a royalty, stream or other interest; risks related to:
(a) the operators of the properties, (b) timely development, permitting, construction, commencement of production, ramp-up
(including operating and technical challenges), (c) differences in rate and timing of production from resource es timates or
production forecasts by operators, (d) differences in conversion rate from resources to reserves and ability to replace resources,
(e) the unfavorable outcome of any challenges or litigation relating title, permit or license, (f) hazards and uncertainty associated
with the business of exploring, development and mining 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,
(ii) with respect to other external factors: (a) fluctuations in the prices of the commodities that drive royalties, streams, offtakes
and investments held by Osisko, (b) fluctuations in the value of the Canadian dollar relative to the U.S. dollar, (c) 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, (d) continued availability of capital and financing and general economic ,
market or business conditions, and (e) responses of relevant governments to infectious diseases outbreaks and the effectiveness
of such response and the potential impact of such outbreaks on Osisko’s business, operations and financial condition; (iii) w ith
respect to internal factors: (a) business opportunities that may or not become available to, or are pursued by Osisko, (b) the
integration of acquired assets or (c) the determination of Osisko’s PFIC status (d) that financial information may be subject to
year-end adjustments. The forward-looking statements contained in this press release are based upon assumpt ions
management believes to be reasonable, including, without limitation: the absence of significant change in Osisko’s ongoing
income and assets relating to determination of its PFIC status, and the absence of any other factors that could cause actions ,
events or results to differ from those anticipated, estimated or intended and, with respect to properties in which Osisko holds a
royalty, stream or other interest, (i) the ongoing operation of the properties by the owners or operators of such properties in a
manner consistent with past practice and with public disclosure (including forecast of production), (ii) the accuracy of publ ic
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), (iii) no adverse development in respect of any significant
property, (iv) that statements and estimates relating to mineral reserves and resources by owners and operators are accurate
and (v) the implementation of an adequate plan for integration of acquired assets.
For additional information on risks, uncertainties and assumptions, please refer to the most recent Annual Information Form of
Osisko filed on SEDAR+ at www.sedarplus.ca 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. In this press release, Osisko relies on information publicly
disclosed by other issuers and third parties pertaining to its assets and, therefore, assumes no liability for such third-party public
disclosure. 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.
Osisko Gold Royalties Ltd
Consolidated Balance Sheets
(Unaudited)
(tabular amounts expressed in thousands of Canadian dollars)
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June 30, December 31,
2024 2023
$ $
Assets
Current assets
Cash 65,724 67,721
Short-term investments 14,466 8,200
Amounts receivable 6,456 6,282
Other assets 1,425 1,842
88,071 84,045
Non-current assets
Investments in associates 94,725 115,651
Other investments 102,279 93,025
Royalty, stream and other interests 1,486,501 1,553,111
Goodwill 111,204 111,204
Other assets 8,874 8,951
1,891,654 1,965,987
Liabilities
Current liabilities
Accounts payable and accrued liabilities 4,611 8,209
Dividends payable 12,101 11,121
Lease liabilities 1,182 1,122
17,894 20,452
Non-current liabilities
Lease liabilities 6,270 6,879
Long-term debt 108,966 191,879
Deferred income taxes 95,321 96,279
228,451 315,489
Equity
Share capital 2,111,336 2,097,691
Contributed surplus 77,791 79,446
Accumulated other comprehensive income 59,158 28,058
Deficit (585,082) (554,697)
1,663,203 1,650,498
1,891,654 1,965,987
Osisko Gold Royalties Ltd
Consolidated Statements of Income (Loss)
For the three and six months ended June 30, 2024 and 2023
(Unaudited)
(tabular amounts expressed in thousands of Canadian dollars)
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Three months ended
June 30,
Six months ended
June 30,
2024 2023 2024 2023
$ $ $ $
Revenues 64,846 60,500 125,597 120,087
Cost of sales (2,226) (4,260) (4,059) (8,301)
Depletion (10,413) (12,967) (21,937) (26,462)
Gross profit 52,207 43,273 99,601 85,324
Other operating expenses
General and administrative (6,367) (7,308) (12,497) (13,517)
Business development (2,089) (1,297) (3,449) (2,793)
Impairment of royalty interests (67,832) (6,629) (67,832) (6,629)
Operating (loss) income (24,081) 28,039 15,823 62,385
Interest income 1,245 2,170 2,504 4,233
Finance costs (2,839) (3,445) (6,570) (6,315)
Foreign exchange loss (1,069) (172) (4,319) (153)
Share of (loss) income of associates (3,117) 19,167 (16,675) 13,022
Other (losses) gains, net (355) (23,926) 1,996 (22,100)
(Loss) earnings before income taxes (30,216) 21,833 (7,241) 51,072
Income tax recovery (expense) 9,101 (3,872) 1,199 (12,263)
Net (loss) earnings (21,115) 17,961 (6,042) 38,809
Net (loss) earnings per share
Basic and diluted (0.11) 0.10 (0.03) 0.21