OSISKO REPORTS Q3 2024 RESULTS Strong Operating Cash Flows of $47.2 Million
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OSISKO REPORTS Q3 2024 RESULTS
Strong Operating Cash Flows of $47.2 Million
Montréal, November 6, 2024 – Osisko Gold Royalties Ltd (the “ Company” or “Osisko”) (OR: TSX &
NYSE) today announced its consolidated financial results for the third quarter of 2024. Amounts presented
are in Canadian dollars, except where otherwise noted.
Highlights
• 18,408 gold equivalent ounces (“GEOs1”) earned (23,292 GEOs in Q3 20232);
• Revenues from royalties and streams of $57.3 million ($ 62.1 million in Q 3 2023), exclusive of
1,595 GEOs earned but not sold due to quarter-end timing;
• Cash flows generated by operating activities of $47.2 million ($43.5 million in Q3 2023);
• Q uarterly cash margin3 of 55.1 million or 96.3%;
• Net earnings of $18.3 million, $0.10 per basic share (net loss of $20.0 million, $0.11 per basic share in
Q3 2023);
• Adjusted earnings 4 of $28.8 million, $0. 15 per basic share ($18.3 million, $ 0.10 per basic share in
Q3 2023);
• Repayment of $27.3 million under the revolving credit facility (and repayment of $115.2 million year-to-
date in 2024);
• Cash balance of $58.5 million and debt of $80.7 million as at September 30, 2024;
• Acquisition of a 6% gold stream (until 225,000 ounces are delivered, and then 3.6% thereafter) by
Osisko Bermuda Limited (“Osisko Bermuda” ) on SolGold plc's ( “SolGold”) Cascabel copper -gold
development project in Ecuador for a total of US$225.0 million, payable upon achieving certain
milestones;
• Entered into a binding agreement to acquire a 1.8% gross revenue royalty (“GRR”) from Tembo Capital
Mining Fund II (“Tembo”) on Spartan Resources Limited’s Dalgaranga Gold Project (“Dalgaranga”) in
Western Australia for US$44 million, and a 1.35% GRR on additional regional exploration licenses in
proximity to Dalgaranga from Tembo for US$6 million;
• First delivery of copper received by Osisko Bermuda from Metals Acquisition Limited under the CSA
copper stream;
• First payment received from Agnico Eagle Mines Ltd. under the Akasaba West 2.5% NSR royalty
(partial coverage);
• Appointment of Ms. Wendy Louie to the Company's Board of Directors as an Independent Director; and
• Declaration of a quarterly dividend of $0.065 per common share paid on October 15, 2024 to
shareholders of record as of the close of business on September 30, 2024.
Subsequent to September 30, 2024
• Declaration of a quarterly dividend of $0.065 per common share payable on January 15, 2025 to
shareholders of record as of the close of business on December 31, 2024;
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• Osisko added to the Solactive Global Silver Miners Total Return Index; the underlying index that is
tracked by the Global X Silver Miners ETF (“ SIL”), pursuant to the index's semi -annual ordinary
adjustment, effective November 1, 2024; and,
• The resignation of Mr. Robert Krcmarov from the Board of Directors in order to assume the role of
President & CEO of Hecla Mining Company.
Jason Attew, President & CEO of Osisko commented: “ Osisko had a solid third quarter and remains on
track to achieve its 2024 revised guidance range of 77,000 to 83,000 GEOs delivered. On the last day of
the quarter, Osisko also announced an agreement to purchase a royalty on Spartan’s Dalgaranga Gold
Project in Western Australia, an asset that checks all of our boxes in terms of near -term production and
cash flow, top-tier mining jurisdiction, management quality and significant exploration upside. This accretive
transaction is expected to close shortly upon customary approval from Australi a’s Foreign Investment
Review Board, and will provide incremental growth to Osisko’s peer-leading GEO delivery growth profile
within the next two-to-three years.
Catalysts continued to crystallize for Osisko during the third quarter, most notably first deliveries under the
CSA copper stream, first production at G Mining Ventures’ Tocantinzinho gold mine, and finally Gold Fields
closing its acquisition of Osisko Mining to consolidate 100% of the Windfall gold project. Looking ahead into
the next several months, we’re still expecting to see improved production at Capstone’s Mantos Blancos
mine, as well as commissioning and first gold production from the Namdini gold project, both of which will
serve as key incremental GEO delivery growth drivers for 2025 and beyond.”
Mr. Norman MacDonald, Chair of Osisko’s Board of Directors commented: “Rob has been an active and
engaged independent member of Osisko’s Board for 2 years, and over this period, the C ompany has
benefitted significantly from his dedicated leadership combined with his technical experience. On behalf of
the Board, management and the Company’s shareholders, I would like to congratulate Rob on his new role
as President and CEO of Hecla and wish him all the best in his future endeavors.”
Q3 2024 RESULTS CONFERENCE AND WEBCAST CALL DETAILS
Conference Call: Wednesday, November 6th, 2024 at 5:00 pm ET
Dial-in Numbers:
(Option 1)
North American Toll-Free: 1 (800) 717-1738
Local – Montreal: 1 (514) 400-3792
Local – Toronto: 1 (289) 514-5100
Local – New York: 1 (646) 307-1865
Conference ID: 83490
Webcast link:
(Option 2)
https://viavid.webcasts.com/starthere.jsp?ei=1691902&tp_key=a7c42fad9d
Replay (available until Friday,
December 6th at 11:59 PM
ET):
North American Toll-Free: 1 (888) 660-6264
Local – Toronto: 1 (289) 819-1325
Local – New York: 1 (646) 517-3975
Playback Passcode: 83490#
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 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
Vice President, Capital Markets
Tel: (514) 940-0670 x116
Cell: (365) 275-1954
Email: [email protected]
Heather Taylor
Vice President, Sustainability and Communications
Tel: (514) 940-0670 x105
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
September 30,
2024 2023
Gold (i) $2,474 $1,928
Silver (ii) $29 $24
Copper (iii) $9,210 $8,356
Exchange rate (US$/Can$) (iv) 1.3641 1.3414
(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) The London Metal Exchange’s price in U.S. dollars per tonne.
(iv) Bank of Canada daily rate.
(2) Three months ended September 30, 2023 (“Q3 2023”).
(3) Non-IFRS Measures
The Corporation has included certain performance measures in this press release that do not have any standardized meaning
prescribed by IFRS Accounting Standards including cash margin in dollars and in percentage. 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 Corporation presents cash margins as it believes that certain investors use this information,
together with measures determined in accordance with IFRS Accounting Standards, to evaluate the Corporation’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 thousands of dollars and in percentage of revenues)
Cash margin (in thousands of dollars) represents revenues less cost of sales (excluding depletion). Cash margin (in percentage of
revenues) represents the cash margin (in thousands of dollars) divided by revenues.
Three months ended
September 30,
Nine months ended
September 30,
2024 2023 2024 2023
$ $ $ $
Royalty interests
Revenues 38,472 37,410 129,252 115,911
Less: cost of sales (excluding depletion) (66) (193) (316) (533)
Cash margin (in dollars) 38,406 37,217 128,936 115,378
Depletion (2,763) (5,972) (13,658) (18,430)
Gross profit 35,643 31,245 115,278 96,948
Stream interests
Revenues 18,783 24,659 53,600 66,245
Less: cost of sales (excluding depletion) (2,075) (4,144) (5,884) (12,105)
Cash margin (in dollars) 16,708 20,515 47,716 54,140
Depletion (6,753) (10,922) (17,795) (24,926)
Gross profit 9,955 9,593 29,921 29,214
Royalty and stream interests
Total cash margin (in dollars) 55,114 57,732 176,652 169,518
Divided by: total revenues 57,255 62,069 182,852 182,156
Cash margin (in percentage of revenues) 96.3% 93.0% 96.6% 93.1%
Total – Gross profit 45,598 40,838 145,199 126,162
(4) 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, transaction 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
September 30,
Nine months ended
September 30,
2024 2023 2024 2023
(in thousands of dollars,
except per share amounts)
$ $ $ $
Net earnings (loss) 18,288 (19,999) 12,246 18,810
Adjustments:
Impairment of royalty and streams
interests - 17,490 67,832 24,119
Foreign exchange (gain) loss (737) 3,390 3,582 3,543
Share of loss (income) of associates 11,188 4,754 27,863 (8,268)
Changes in allowance for expected
credit losses and write-offs - 17,349 (1,895) 37,480
Loss on investments 104 2,513 3 4,482
Tax impact of adjustments 5 (7,197) (17,904) (9,482)
Adjusted earnings 28,848 18,300 91,727 70,684
Weighted average number of
common shares outstanding (000’s) 186,408 185,304 186,145 184,947
Adjusted earnings per basic share 0.15 0.10 0.49 0.38
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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 meet its revised guidance estimate, that conditions precedent to the closing of the purchase
of the royalty on the Dalgaranga Gold Project will be met and that such transaction will provide incremental growth to Osisko GEOs,
that production will improve at Mantos Blancos, and that the commissioning and first gold production from the Namdini project will be
achieved in a timely manner. 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.
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, (i) with respect to properties in w hich 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 estimates or production forecasts
by operators, (d) differences in conversion rate from resources to reserves and ability to replace resources, (e) the unfavor able
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 Os isko, (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 o f 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 rel evant
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) with 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.
The forward-looking statements contained in this press release are based upon assumptions 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 public statements and disclosures made by the owners or operators of such under lying
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
As at September 30, 2024 and December 31, 2023
(Unaudited)
(tabular amounts expressed in thousands of Canadian dollars)
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September 30, December 31,
2024 2023
$ $
Assets
Current assets
Cash 58,540 67,721
Short-term investments 15,567 8,200
Amounts receivable 8,703 6,282
Other assets 1,147 1,842
83,957 84,045
Non-current assets
Investments in associates 85,620 115,651
Other investments 99,457 93,025
Royalty, stream and other interests 1,482,179 1,553,111
Goodwill 111,204 111,204
Other assets 8,153 8,951
1,870,570 1,965,987
Liabilities
Current liabilities
Accounts payable and accrued liabilities 5,779 8,209
Dividends payable 12,108 11,121
Lease liabilities 1,214 1,122
19,101 20,452
Non-current liabilities
Lease liabilities 5,957 6,879
Long-term debt 80,746 191,879
Deferred income taxes 101,364 96,279
207,168 315,489
Equity
Share capital 2,113,691 2,097,691
Contributed surplus 80,081 79,446
Accumulated other comprehensive income 48,882 28,058
Deficit (579,252) (554,697)
1,663,402 1,650,498
1,870,570 1,965,987
Osisko Gold Royalties Ltd
Consolidated Statements of Income (Loss)
For the three and nine months ended September 30, 2024 and 2023
(Unaudited)
(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)
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Three months ended
September 30,
Nine months ended
September 30,
2024 2023 2024 2023
$ $ $ $
Revenues 57,255 62,069 182,852 182,156
Cost of sales (2,141) (4,337) (6,200) (12,638)
Depletion (9,516) (16,894) (31,453) (43,356)
Gross profit 45,598 40,838 145,199 126,162
Other operating expenses
General and administrative (6,684) (11,697) (19,177) (25,214)
Business development (1,506) (1,337) (4,959) (4,130)
Impairment of royalty and stream interests - (17,490) (67,832) (24,119)
Operating income 37,408 10,314 53,231 72,699
Interest income 1,591 1,115 4,095 5,348
Finance costs (2,262) (6,086) (8,832) (12,401)
Foreign exchange gain (loss) 737 (3,390) (3,582) (3,543)
Share of (loss) income of associates (11,188) (4,754) (27,863) 8,268
Other (losses) gains, net (104) (19,862) 1,892 (41,962)
Earnings (loss) before income taxes 26,182 (22,663) 18,941 28,409
Income tax (expense) recovery (7,894) 2,664 (6,695) (9,599)
Net earnings (loss) 18,288 (19,999) 12,246 18,810
Net earnings (loss) per share
Basic and diluted 0.10 (0.11) 0.07 0.10