OSISKO REPORTS RECORD 2022 RESULTS AND PROVIDES 2023 GUIDANCE AND 5-YEAR OUTLOOK Record cash margin of $201.7 million Record operating cash flows from continuing operations of $175.1 million
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OSISKO REPORTS RECORD 2022 RESULTS
AND PROVIDES 2023 GUIDANCE AND 5-YEAR OUTLOOK
Record cash margin of $201.7 million
Record operating cash flows from continuing operations of $175.1 million
Montréal, February 23, 2023 – Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX &
NYSE) today announced its consolidated financial results for the fourth quarter and full year 2022, and
provided guidance for 2023 as well as its updated 5-year growth outlook . Amounts presented are in
Canadian dollars, except where otherwise noted.
2022 Financial Highlights
• Deconsolidation of Osisko Development Corp. (“Osisko Development”) as of
September 30, 2022 and presentation of its results as discontinued operations on the
consolidated statements of loss and the consolidated statements of cash flows;
• 89,367 GEOs1 earned, an annual record and an increase of 12% over 2021 (80,000 GEOs);
• Record revenues from royalties and streams of $ 217.8 million ( 2021 – $ 199.6 million;
$224.9 million including offtakes);
• Record cash flows generated by operating activities from continuing operations of $175.1 million
(2021 – $153.2 million);
• Record cash margin2 from royalties and streams of $201.7 million or 93% (2021 – $186.3 million
or 93%; $187.2 million including offtakes);
• N et earnings from continuing operations of $85.3 million, or $0.47 per share (2021 – $76.6 million
or $0.46 per basic share); and
• Record adjusted earnings2 of $111.3 million, or $ 0.62 per basic share ( 2021 – $ 94.4 million,
$0.56 per basic share).
Q4 2022 Financial Highlights
• 25,023 GEOs1 earned, a quarterly record (Q4 2021 – 19,830 GEOs);
• Record quarterly revenues from royalties and streams of $61.9 million (Q4 2021 – $50.7 million);
• C ash flows generated by operating activities from continuing operations of $48.5 million
(Q4 2021 – $35.1 million);
• Record quarterly cash margin2 from royalties and streams of $57.2 million or 92% (Q4 2021 –
$47.0 million or 93%);
• N et earnings from continuing operations of $22.4 million, or $ 0.12 per share ( Q4 2021 –
$21.2 million or $0.13 per basic share); and
• Record quarterly adjusted earnings 2 of $ 34.9 million, or $ 0.19 per basic share ( Q4 2021 –
$23.8 million, $0.14 per basic share).
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Sandeep Singh, President and CEO of Osisko commented: “ As discussed in our Q4 2022 preliminary
results release, Osisko had an exceptional year in 2022. We had successive quarters of record GEO
deliveries, revenues and cash margins, we were active on several high- quality transactions, and
returned capital to shareholders via dividends and share buy -backs. We continue to benefit from a
sustained period of organic growth and we have simplified the business positioning Osisko to unlock
significant value in 2023 for shareholders.”
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;
• Osisko Bermuda Limited (“Osisko Bermuda”), a wholly-owned subsidiary of Osisko, entered into
a revised binding agreement with Metals Acquisition Corp. (“MAC”) with respect to a
US$75.0 million silver stream to facilitate MAC’s acquisition of the producing CSA mine in New
South Wales, Australia). Osisko Bermuda also entered into a backstop financing agreement with
respect to an up to US$75.0 million copper stream;
• Osisko Bermuda entered into an agreement with Osisko Development, with respect to a metals
stream on the Trixie property, as well as mineral claims cove ring more than 17,000 acres in
Central Utah’s historic Tintic Mining District;
• Acquired a 1.0% net smelter return (“NSR”) royalty covering the currently known mineralization
and prospective exploration areas that constitute the Marimaca copper project located in
Antofagasta, Chile, for US$15.5 million ($20.3 million);
• Acquired a 0.6% NSR royalty for US$50.0 million ($67.2 million) covering the entire
4,979 hectare Cascabel property, including the Alpala project, located in northeastern Ecuador
and operated by SolGold plc;
• Took up a 20% participation right in Carbon Streaming Corporation’s Magdalena Bay Blue
carbon project, expected to be one of the largest blue carbon conservation projects in the world.
Osisko has funded US$1.2 million towards the development of the project and will receive a
stream of approximately 40,000 carbon credits annually or 4% of annual production;
• Increased the accordion feature of the revolving credit facility from $100.0 million to
$200.0 million and extended the maturity date to September 29, 2026;
• Repaid the $300 million convertible debentures that came to maturity, using $150.0 million from
the cash balance and drew the credit facility for the same amount;
• Repurchased 1.7 million common shares for $22.1 million under the normal course issuer bid
(average acquisition price of $13.06);
• Added Ms. Edie Hofmeister and Mr. Rob Krcmarov to the Board as independent directors; and
• Declared quarterly dividends totaling $0.22 per common share in 2022 compared to $0.21 per
common share in 2021.
Subsequent to December 31, 2022
• Declared a quarterly dividend of $0.055 per common share payable on April 14, 2023 to
shareholders of record as of the close of business on March 31, 2023.
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2023 Guidance and 5-Year Outlook
2023 Guidance
Osisko expects GEOs earned to range between 95,000 to 105,000 GEOs in 2023 at an average cash
margin of 93%.
Osisko’s 2023 guidance on royalty and stream interests is largely based on publicly available forecasts
from our operating partners. When publicly available forecasts on properties are not available, Osisko
obtains internal forecasts from the producers or uses management’s best estimate.
For the 2023 guidance, deliveries of silver, diamond, copper, and cash royalties have been converted
to GEOs using commodity prices based on consensus prices and a gold/silver price ratio of 80:1. The
2023 guidance also forecasts the closing of the CSA Silver Stream in the second quarter of 2023, with
an effective date of February 1, 2023.
5-Year Outlook3
Osisko expects its portfolio to generate between 130,000 and 140,000 GEOs in 2027. The outlook
assumes the commencement of production at the San Antonio, Cariboo, Windfall and Back Forty
projects. It also assumes that Mantos Blancos will have reached its nameplate capacity following the
recent expansion of its activities, as well as increased production from certain other operators that have
announced planned expansions. Further, the outlook assumes that production from the Renard diamond
stream will have ceased by 2027 (while there remain opportunities for mine life extensions under study
by the operator) , but such GEOs are expected to be largely replaced by initial production from other
assets.
Beyond this growth profile, Osisko owns several other growth assets, which have not been factored in
the 5-year outlook, as their timelines are either later, or less clear. As the operators provide further clarity
on these assets, Osisko will seek to include them in its long-term outlook.
This 5- year outlook is based on publicly available forecasts and other disclosure by the third -party
owners and operators of the Company’s assets, and could differ materially from actual results . When
publicly available forecasts on properties are not available, Osisko obtains internal forecasts from the
producers or uses management’s best estimate. The commodity price assumptions that were used in
the 5-year outlook are based on current long-term consensus and a gold/silver price ratio of 75:1.
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Q4 and Year-end 2022 Results Conference Call Details
Conference Call: Friday, February 24th, 2023 at 10:00 am ET
Dial-in Numbers: North American Toll-Free: 1 (888) 886 7786
Local and International: 1 (416) 764 8658
Conference ID: 04967722
Replay (available until Friday,
March 24th at 11:59 pm ET):
North American Toll-Free: 1 (877) 674 7070
Local and International: 1 (416) 764 8692
Playback passcode: 967722#
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 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 180 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
December 31,
Years ended
December 31,
2022 2021 2022 2021
Gold(i) $1,727 $1,796 $1,800 $1,799
Silver(ii) $21 $23 $22 $25
Exchange rate (US$/Can$)(iii) 1.3578 1.2603 1.3013 1.2535
(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) Non-IFRS Measures
The Corporation 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), (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 Corporation 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 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 dollars and in percentage of revenues)
Cash margin (in dollars) represents revenues from continuing operations less cost of sales (excluding depletion). Cash margin (in
percentage of revenues) represents the cash margin (in dollars) divided by revenues from continuing operations.
Three months ended
December 31,
Years ended
December 31,
2022 2021 2022 2021
$ $ $ $
Royalty interests
Revenues 40,038 34,502 144,066 140,279
Less: cost of sales (excluding depletion) (283) (233) (1,055) (551)
Cash margin (in dollars) 39,755 34,269 143,011 139,728
Depletion (6,993) (7,324) (27,362) (28,958)
Gross profit 32,762 26,945 115,649 110,770
Stream interests
Revenues 21,876 16,171 73,743 59,333
Less: cost of sales (excluding depletion) (4,449) (3,413) (15,021) (12,752)
Cash margin (in dollars) 17,427 12,758 58,722 46,581
Depletion (7,052) (4,940) (23,993) (19,135)
Gross profit 10,375 7,818 34,729 27,446
Royalty and stream interests
Total cash margin (in dollars) 57,182 47,027 201,733 186,309
Divided by: total revenues 61,914 50,673 217,809 199,612
Cash margin (in percentage of revenues) 92.4% 92.8% 92.6% 93.3%
Offtake interests
Revenues - - - 25,265
Less: cost of sales (excluding depletion) - - - (24,343)
Cash margin (in dollars) - - - 922
Cash margin (in percentage of revenues) -% -% -% 3.6%
Depletion - - - (268)
Gross profit - - - 654
Total – Gross profit 43,137 34,763 150,378 138,870
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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 assets, unrealized gain (loss) on
investments, share of income (loss) of associates, 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.
Three months ended
December 31,
Years ended
December 31,
2022 2021 2022 2021
(in thousands of dollars, except per share
amounts)
$ $ $ $
Net earnings from continuing operations 22,408 21,233 85,285 76,627
Adjustments:
Impairment of royalty, stream and
other interests 1,818 650 1,818 2,938
Impairment of investments 1,181 - 2,361 2,112
Foreign exchange loss (gain) 2,822 4 (19,907) 186
Unrealized net loss (gain) on
investments 1,024 (6,143) 13,196 (14,403)
Share of loss of associates 2,246 883 1,863 2,246
Deferred income tax expense 3,427 7,181 26,688 24,695
Adjusted earnings 34,926 23,808 111,304 94,401
Weighted average number of
common shares outstanding (000’s) 184,265 167,924 180,398 167,786
Adjusted earnings per basic share 0.19 0.14 0.62 0.56
(3) 5- year Outlook
The 5-year outlook presented in this press release replaces the 5-year outlook previously released in 2022. Investors should not
use this 5-year outlook to extrapolate forecast results to any year within the 5-year period (2023-2027).
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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 fl uctuation 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 ar e 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 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 estimates 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; with respect to 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 gov ernments, 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 t hey are held, (d) continued availability of
capital and financing and general economic, market or business conditions, and (e) responses of relevant governments to the
COVID-19 outbreak and the effectiveness of such response and the potential impact of COV ID-19 on Osisko’s business,
operations and financial condition; with respect to internal factors: (a) business opportunities that may or not become available
to, or are pursued by Osisko or (b) the integration of acquired assets. 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 the Corporation’s ongoing income and assets relating to determination of its PFIC status; the absence of
any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended and, wi th
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 underlying
properties (including expectations for the development of underlying properties that are not yet in production), (iii) no adv erse
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.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.