OSISKO REPORTS RECORD 2023 RESULTS AND PROVIDES 2024 GUIDANCE AND NEW 5-YEAR OUTLOOK Record annual revenues of $247.3 million and record operating cash flows of $187.0 million
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OSISKO REPORTS RECORD 2023 RESULTS AND PROVIDES 2024
GUIDANCE AND NEW 5-YEAR OUTLOOK
Record annual revenues of $247.3 million
and record operating cash flows of $187.0 million
Montréal, February 20, 2024 – Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX &
NYSE) is pleased to announce its consolidated financial results for the year-end 2023. Amounts presented
are unaudited and in Canadian dollars, except where otherwise noted.
2023 Financial Highlights
• 94,323 gold equivalent ounces (“GEOs1”) earned (89,367 GEOs in 2022);
• Record revenues from royalties and streams of $247.3 million ($217.8 million in 2022);
• Record cash flows generated by operating activities2 of $187.0 million ($175.1 million in 2022);
• Net loss2 of $48.3 million, $0.26 per basic share2 (net earnings of $85.3 million, $0.47 per basic share
in 2022), mostly due to non-cash impairment charges largely as a result of a fair value assessment of
investments and royalty and stream interests of $149.6 million; and
• Adjusted earnings4 of $100.1 million, $0.54 per basic share ($87.3 million, $0.48 per basic share in
2022)
Other Highlights
• Total capital deployed of over $290.0 million across 5 new transactions:
o Closing of the silver and copper streams on Metals Acquisitions Limited’s CSA mine in Australia
by Osisko Bermuda Limited for US$150.0 million ($198.8 million);
o Amendment to increase its effective silver stream from 12.5% to 87.5% on Taseko Mines Ltd.’s
Gibraltar mine in BC for US$10.3 million ($13.6 million);
o Acquisition of a 3% gold net smelter return (“NSR”) royalty and 1% copper NSR royalty on Hot
Chili Ltd.’s Costa Fuego copper-gold project in Chile for US$15.0 million ($19.9 million);
o Acquisition of a 1% NSR royalty covering Cardinal Namdini Mining Ltd.’s Namdini gold project
in Ghana for US$35.0 million ($48.4 million); and
o Acquisition of a 1% NSR royalty on Cabral Gold Inc.’s Cuiú Cuiú gold project in Brazil for
US$5.0 million ($6.8 million);
• Publication of the 2023 Asset Handbook and third edition of the C orporation’s sustainability report,
Growing Responsibly;
• Appointment of Mr. Jason Attew as President and Chief Executive Officer (“CEO”) of the Corporation
and Mr. Norman MacDonald as Chair of the Board of Directors;
• Sale of the equity investment in Osisko Mining Inc. for gross proceeds of $131.6 million, which were
used to reduce the revolving credit facility to a drawn balance of $191.9 million; and
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• Declaration of quarterly dividends totaling $0.235 per common share in 2023 ($0.22 per common share
in 2022).
Subsequent to December 31, 2023
• Additional repayments of $30.2 million on the revolving credit facility to a drawn balance of
approximately $164.5 million;
• Declaration of a quarterly dividend of $0.06 per common share payable on April 15, 2024 to
shareholders of record as of the close of business on March 28, 2024; and
• Announcement of Mr. David Smith joining the Corporation’s Board of Directors as an Independent
Director.
Guidance for 2024 and 5-Year Outlook
2024 Guidance3
Osisko expects GEOs earned to range between 82,000 to 92,000 in 2024 at an average cash margin of
97%. The 2024 guidance assumes the commencement of GEOs earned from the CSA Copper Stream from
June 15, as well as the commencement of production from G Mining Ventures Corp.’s Tocantinzinho project
and Cardinal Namdini Mining Limited’s project later in the year.
Osisko’s 2024 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.
5-Year Outlook3
Osisko expects its portfolio to generate between 120,000 and 135,000 GEOs in 2028. The outlook assumes
the commencement of production at The Windfall Mining Group’s Windfall and South32 Ltd’s Hermosa,
amongst others. It also assumes that Capstone Copper Corp’s 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 , including Alamos Gold Inc.’s Phase 3+
Expansion at Island Gold.
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 internal judgements of publicly available forecasts and other disclosures
by the third-party owners and operators of the Corporation’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.
This 5-year outlook replaces the 5- year outlook previously released in 2023, which should be considered
withdrawn. Investors should not use this 5- year outlook to extrapolate forecast results to any year within
the 5-year period (2024-2028).
Management Commentary
Jason Attew, President & CEO of Osisko commented: “2023 was a banner year for Osisko marked by new
annual records achieved with respect to GEOs earned, revenues, cash flows and margins , in addition to
the closing of several key transactions which will positively contribute to Osisko’s cash flow and GEOs
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earned. The Corporation is now well-positioned with a materially improved balance sheet, and also with
having completed recent changes as it relates to both management and the Board.
After working through a full portfolio review as it relates to Osisko’s growth trajectory and associated
timelines, the Corporation’s 2024 guidance and updated 5-year outlook together provide what management
believes to be achievable ranges. Concerning the 2024 guidance, it is worth noting that the lack of GEO
deliveries resulting from the stoppage of operations at the Renard diamond mine will be partially offset by
expected improvements at certain other operating assets within our portfolio, in addition to some new assets
moving out of development and into production throughout the year . Furthermore, the Corporation’s
expected growth trajectory over the next five years remains very much intact as mine expansions and new
projects are completed by our partners between now and 2028.
Osisko enters 2024 with a continued focus on simplifying its story to further re- establish itself as a ‘pure-
play’ precious metals royalty and streaming company. We possess an unmatched asset base as defined
by exposure to Tier 1 mining jurisdictions and this unique aspect of our portfolio, when combined with our
robust organic growth outlook, results in the Corporation being well-positioned to deliver long-term value to
our current and future shareholders.”
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Q4 AND YEAR-END 2023 RESULTS CONFERENCE CALL AND WEBCAST DETAILS
Conference Call: Wednesday, February 21st, 2024 at 10:00 am ET
Dial-in Numbers:
(Option 1)
North American Toll-Free: 1 (888) 886 7786
Local and International: 1 (416) 764 8658
Conference ID: 57708068
Webcast link:
(Option 2)
https://viavid.webcasts.com/starthere.jsp?ei=1650912&tp_key=a14693e644
Replay (available until
Thursday, March 21st at 11:59
PM ET):
North American Toll-Free: 1 (877) 674 7070
Local and International: 1 (416) 764 8692
Playback Passcode: 708068#
Replay is 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, including 19 producing assets.
Osisko’s portfolio is anchored by its cornerstone asset, a 3- 5% net smelter return royalty on the Canadian
Malartic Complex, one of Canada’s largest gold operations.
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
Mobile : (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 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.
Average Metal Prices and Exchange Rate
Three months ended
December 31,
Years ended
December 31,
2023 2022 2023 2022
Gold(i) $1,971 $1,727 $1,940 $1,800
Silver(ii) $23.20 $21 $23.35 $22
Exchange rate (US$/Can$)(iii) 1.3624 1.3578 1.3497 1.3013
(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) From continuing operations.
(3) For the 2024 guidance, deliveries of silver, copper, and cash royalties have been converted to GEOs using commodity prices
based on consensus prices and a gold/silver price ratio of 83:1. 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 76:1.
(4) Non-IFRS Measures
The Corporation has included certain performance measures in this press release and in the annual Management and Discussion
Analysis for the year ended December 31, 2023 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 (iii) 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 Corporation 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 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.
In 2023, the following changes were made to the composition of adjusted earnings:
(i) total gains and losses on investments on the statement of income (loss) are now excluded from net earnings (loss) from
continuing operations; prior to this change, only the unrealized gains and losses on investments were excluded from net
earnings (loss) from continuing operations;
(ii) total foreign exchange gains and losses on the statement of income (loss) are now excluded from net earnings (loss)
from continuing operations; prior to this change, only the foreign exchange gains and losses adjustments from operation
activities on the statement of cash flows were excluded from net earnings (loss) from continuing operations;
(iii) t he tax impact of all adjustments in the calculation of adjusted earnings is now considered; prior to this change, the total
deferred income taxes on the statement of earnings (loss) was excluded from net earnings (loss) from continuing
operations.
These changes in the manner in which the Corporation calculates adjusted earnings were made to align the calculations with its
peers and facilitate the comparison with these companies. These changes also affect indirectly adjusted earnings per basic share,
because they are calculated from adjusted earnings. Comparative figures for 2022 have been restated to reflect the current
composition of adjusted earnings.
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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
December 31,
Years ended
December 31,
2023 2022 2023 2022
($’000) ($’000) ($’000) ($’000)
Royalty interests
Revenues 44,519 40,038 160,430 144,066
Less: cost of sales (excluding depletion) 22 (283) (511) (1,055)
Cash margin (in dollars) 44,541 39,755 159,919 143,011
Depletion (5,587) (6,993) (24,017) (27,362)
Gross profit 38,954 32,762 135,902 115,649
Stream interests
Revenues 20,645 21,876 86,890 73,743
Less: cost of sales (excluding depletion) (4,030) (4,449) (16,135) (15,021)
Cash margin (in dollars) 16,615 17,427 70,755 58,722
Depletion (7,450) (7,052) (32,376) (23,993)
Gross profit 9,165 10,375 38,379 34,729
Royalty and stream interests
Total cash margin (in dollars) 61,156 57,182 230,674 201,733
Divided by: total revenues 65,164 61,914 247,320 217,809
Cash margin (in percentage of revenues) 93.8% 92.4% 93.3% 92.6%
Total – Gross profit 48,119 43,137 174,281 150,378
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Adjusted earnings and adjusted earnings per basic share
Adjusted earnings is defined as: net earnings (loss) from continuing operations, adjusted for certain items: foreign exchange gains
(losses), impairment charges and reversal related to royalty, stream and other interests, expected credit losses 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
December 31,
Years ended
December 31,
2023 2022 2023 2022
(in thousands of dollars, except per share
amounts)
$ $ $ $
Net (loss) earnings from continuing
operations (67,153) 22,408 (48,343) 85,285
Adjustments:
Impairment of royalty and stream
interests 23,500 1,818 47,619 1,818
Foreign exchange (gain) loss (5,146) 2,865 (1,603) (20,146)
Share of loss (income) of associates 343 2,246 (7,925) 1,863
Expected credit losses, write-offs and
impairment of investments 64,500 1,181 101,980 2,361
Loss on investments 14,326 1,024 18,808 13,196
Other non-cash gains (635) - (635) -
Tax impact of adjustments (346) (1,456) (9,828) 2,951
Adjusted earnings 29,389 30,086 100,073 87,328
Weighted average number of
common shares outstanding (000’s) 185,543 184,265 185,226 180,398
Adjusted earnings per basic share 0.16 0.16 0.54 0.48
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 increas e of production) , the 2024 guidance on GEOs and cash margin and the 5- year
outlook on GEOs included under “Guidance for 2024 and 5 -Year Outlook” and other guidance based on disclosure
from operators, 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 ad ditional capital,
business 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 statements and guidance as to
gold equivalent ounces are forward-looking statements, as they involve implied assessment, based on certain
estimates and assumptions, including the assumptions set out under “Guidance for 2024 and 5-Year Outlook”, and no
assurance can be given that the estimates or related guidance will be realized. Forward-looking statements 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 by
statements 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 producti on,
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
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to replace resources, (e) the unfavorable outcome of any challenges or litigation relating to 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 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 to Osisko or the operators of properties , and general
economic, market or business conditions, and (e) responses of relevant governments to the infectious diseases
outbreaks and the effectiveness of such response and the potential impact of infectious diseases outbreaks 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 Passive Foreign Investment Company ("PFIC”) status; 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 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. 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.