Osisko Gold Royalties Ltd (the “
Corporation” or
“
Osisko”) (OR: TSX & NYSE) is pleased to
provide an update on its first quarter 2022 deliveries, sales, cash
margins and recent asset advancements.
PRELIMINARY Q1 2022 RESULTS
Osisko earned approximately 18,251 attributable
gold equivalent ounces1 (“GEOs”) in the first quarter of 2022. This
figure excludes 3,025 GEOs earned from the Renard diamond stream.
As expected, production in the first quarter was impacted by the
coldest months of the year, which reduced production at the Eagle
mine. Production is expected to increase in the coming quarters as
that seasonal effect dissipates and as ramp up of the Mantos
expansion progresses. In addition, proceeds from the Renard diamond
stream are not expected to be reinvested into the bridge loan
starting in early May and, as such, revenues will be recognized
again as attributable GEOs.
Osisko recorded preliminary revenues from
royalties and streams of C$50.7 million during the first quarter
and preliminary cost of sales (excluding depletion) of C$3.2
million, resulting in a record quarterly cash margin2 of C$47.5
million, or approximately 94% (97% excluding the Renard diamond
stream).
Osisko will provide full production and
financial details with the release of its first quarter 2022
results after market close on Wednesday, May 11th, 2022, followed
by a conference call on Thursday, May 12th at 8am ET. More details
are provided at the end of the release.
Sandeep Singh, President and CEO of Osisko
commented: “Osisko had a very productive start to the year. We
provided our inaugural 5-year growth outlook which highlights
excellent organic growth, announced an agreement to acquire a
metals stream on the high-grade Trixie Gold Mine in Utah, entered
into a binding agreement with Metals Acquisition Corp. on a silver
stream on the high-grade CSA mine in Australia, and closed a US$250
million equity financing. We look forward to the Trixie and CSA
transactions closing in 2022.
We have previously guided that Q1 GEOs would be
lower relative to the remainder of the year as the Eagle operation
does not stack ore in the coldest 90 days of the year (January to
March) and as other assets ramp up during the year, namely the
Mantos expansion, the Ermitaño and Santana start-ups, and the
reactivation of the Renard stream in early May. This bodes well for
the remainder of the year, as we nonetheless benefitted from a
record cash margin in Q1 due to strong gold prices and the
inflation-protected nature of our business.”
PORTFOLIO UPDATE
CSA Mine Silver Stream
On March 17th, Osisko Bermuda Limited (“OBL”),
entered into a binding agreement with Metals Acquisition Corp.
(“MAC”) with respect to a US$90 million silver stream to facilitate
MAC’s acquisition of the producing CSA mine in New South Wales,
Australia. OBL has also provided MAC with an option to draw up to
an additional US$100 million in upfront proceeds through the
sale of a copper stream, subject to MAC’s financing needs and the
parties finalizing definitive terms and conditions. MAC has granted
OBL a right of first refusal to purchase any royalties or streams
on any asset owned by MAC for three years following the closing of
the transaction.
From 2019 to 2021, average annual payable silver
production at the CSA mine was ~431koz, or ~5,600 gold equivalent
ounces per year*. The mine has a long track-record of reserve and
resource replacement, with greater than 100% of mined reserves
having been replaced since 2011. MAC is targeting a mine life of
over 15 years from existing drill tested zones, with additional
exploration potential from both near-mine and regional targets
along a highly prospective geological trend within the 350km²
property package. The stream is subject to the MAC transaction
closing, which is expected in the third quarter of 2022. For more
information, refer to Osisko’s press release dated March 17th, 2022
filed on www.sedar.com.
Canadian Malartic Update
Yamana Gold Inc. and Agnico Eagle Mines Limited
(together the “Partnership”) have fifteen drills currently
operating at site and approximately 137,000 meters of surface and
underground drilling is planned to infill and expand mineral
resources in 2022. The focus will be on aggressive infill drilling
at the East Gouldie deposit to continue the conversion of Inferred
mineral resources to Indicated mineral resources and to refine the
geological model. Over 50% of the Inferred resource has been
drilled to 75 meter centers with selected volumes drilled to
40 meters.
Recent drilling continues to define a second
mineralized shear zone, the Titan zone, located parallel to and
approximately 350 meters south of East Gouldie, expanding the
mineralized footprint and providing a new, little tested target
volume adjacent to East Gouldie. Ongoing reserve development and
resource expansion is expected to extend the mine life beyond 2039
and highlights the potential for additional underground
infrastructure, and hence production.
Osisko holds a 5% net smelter return (“NSR”)
royalty on East Gouldie, Odyssey South, East Amphi and the western
half of East Malartic and a 3% NSR royalty on Odyssey North and the
eastern half of East Malartic. For more information, refer to
Agnico Eagle Mines Limited’s press release dated February 23rd,
2022 filed on www.sedar.com.
Agnico Eagle: Additional
Updates
On February 23rd, Agnico Eagle Mines Limited
(“Agnico Eagle”) announced global production guidance and noted
that the forecast for 2024 does not include potential production
upside from pipeline projects such as the AK deposit, the Odyssey
internal zones and the Akasaba project at the Goldex mine.
Collectively, if developed, these projects could potentially add up
to 100,000 ounces of gold production to the 2024 forecast. Osisko
owns a 2% NSR royalty on the AK deposit, 2.5% NSR royalty on
the Akasaba project and 3-5% NSR royalty on the Odyssey internal
zones.
Following its merger with Kirkland Lake Gold
Ltd., Agnico Eagle now owns the producing Macassa mine and mill and
the Holt mining complex (approximately 60 kilometers northeast of
Kirkland Lake). Agnico Eagle plans to evaluate the potential to
integrate a number of satellite deposits with the existing
infrastructure in the region including AK, Upper Beaver, Upper
Canada, Anoki-McBean and Bidgood. Osisko owns a 2% NSR royalty on
these deposits.
Agnico Eagle also noted that Upper Beaver has
the potential to be a low-cost mine with annual production in the
range of 150,000 to 200,000 ounces of gold and a moderate initial
capital requirement. Agnico Eagle is evaluating various processing
options including building a stand-alone mill and tailings facility
at the Upper Beaver site or using an existing mill and tailings
facility at either the Macassa mine or the Holt mining complex. For
more information, refer to Agnico Eagle’s press release dated
February 23rd, 2022 filed on www.sedar.com.
Mantos Completes Business Combination
with Capstone
On March 23rd, Mantos Copper Limited completed
its previously announced business combination with Capstone Mining
Corp. to form Capstone Copper Corp. (“Capstone”). Capstone is a
mid-tier copper producer with a diversified portfolio of
high-quality, long-life operations in the Americas, including the
Mantos Blancos copper-silver mine in Chile.
Capstone is currently completing a mill
expansion at Mantos Blancos to increase sulphide throughput from
4.5Mtpa to 7.3Mtpa. Construction is complete and ramp-up is well
underway. Annual deliveries of refined silver to Osisko over the
first five years, once ramp-up is completed, are expected to
average approximately 1.3 million ounces. Life of mine payable
silver production is expected to total approximately 14.9 million
ounces. A phase II expansion study is also underway reviewing the
potential for a further throughput expansion from 7.3Mtpa to
10Mtpa.
Osisko holds a 100% silver stream on the Mantos
Blancos mine with an ongoing transfer price equal to 8% of the spot
silver price. For more information, refer to Capstone’s press
release dated March 23th, 2022 filed on www.sedar.com
Victoria Gold Provides Guidance and
Exploration Drilling Updates
On March 24th, Victoria Gold Corp. (“Victoria
Gold”) announced 2021 production results for the Eagle gold mine,
including 164,222 ounces of gold produced, representing a 40%
increase in gold production compared to 2020. It also provided 2022
production guidance of between 165,000 and 190,000 ounces of
gold.
The first quarter of 2022 should be the lowest
quarter in terms of production at Eagle, given its seasonal nature
with ore stacking on the heap leach pad curtailed during the 90
coldest days of the year from January to March. This period was
also used for a planned six-week maintenance program on the
crushing and stacking facilities.
Victoria Gold has initiated ‘Project 250’ aimed
at increasing the average annual gold production of Eagle toward
250,000 ounces of gold during 2023. Detailed engineering and
procurement of equipment are underway to enable construction to
start in the second half of 2022.
On February 28th and March 1st, Victoria Gold
announced assay results from the 2021 Dublin Gulch drill program on
the Raven and Lynx targets. During the 2021 season, 20,000 meters
of diamond drilling were completed across the claim package. The
2021 program successfully doubled the strike length of Raven to
~1.3 km, particularly to the west in an area covered by overlying
metasedimentary rocks. Highlighted assay results from the first 19
Raven drill holes include 1.25 g/t gold over 70 meters and 1.74 g/t
gold over 15.1 meters. In 2022, Victoria Gold is targeting an
inaugural mineral resource estimate for Raven and an additional
20,000 meters of drilling.
Highlighted assay results from the first 6 holes
on Lynx include 2.0 g/t gold over 32.3 meters and 3.42 g/t gold
over 18.3 meters. Mineralization at the Lynx target resembles the
Raven and Nugget deposits, and extends over a strike length of 600
meters while remaining open to the east, west, and at depth.
Osisko holds a 5% NSR royalty on Victoria Gold’s
Dublin Gulch project including the Eagle gold mine, and the Raven
and Lynx targets. For more information, refer to Victoria Gold’s
press releases dated February 28th, March 1st and March 24th,
2022 filed on www.sedar.com.
Reserve Increase from
Éléonore
On February 24th, Newmont Corporation
(“Newmont”) reported a mineral reserve increase, net of depletion,
of 560,000 ounces of gold at the Éléonore gold mine. Probable
reserves now comprise 11.2Mt grading 5.05 g/t for 1.82 million
ounces of gold. Newmont reiterated 2022 production guidance at
Éléonore of 275,000 ounces of gold.
Osisko owns a sliding scale 2.0% to 3.5% NSR
royalty on Newmont’s Éléonore gold mine, with a current rate of
2.2%. For more information, refer to Newmont’s the press release
dated February 24th, 2022 filed on www.sedar.com.
Island Gold Expands Resources and
Reserves
On February 22nd, Alamos Gold Inc. (“Alamos”)
announced that the Island Gold mine mineral reserves and resources
increased across all categories, including a 2% increase in mineral
reserves and an 8% increase in Inferred mineral resources. An
updated mine plan is set to be released mid-2022, incorporating an
additional 1.2 million ounces of Inferred resources delineated
since the completion of the Phase III Expansion study published in
July 2020. The updated mine plan is also expected to incorporate
higher-grade material in proximity to the planned shaft bottom
earlier in the mine life. This change should contribute to a higher
proportion of production coming from areas covered by Osisko’s 3%
NSR royalty earlier in the mine plan versus production from areas
covered by Osisko’s 1.38% NSR royalty. A total of $22 million is
budgeted for exploration at Island Gold in 2022.
Osisko holds a 1.38% to 3% NSR royalty on
Alamos’ Island Gold mine. For more information, refer to Alamos’
press release dated February 22nd, 2022 filed on
www.sedar.com.
Seabee Mine Life Extended
On February 23rd, SSR Mining Inc. (“SSR”)
announced a mine life extension at the Seabee mine to 2028. Seabee
has been in continuous operation for 30 years and has a
demonstrated track record of mineral reserve replacement that SSR
expects to continue into the future. Exploration expenditures will
be increased by 20% in 2022, and will focus on Santoy 8, Santoy 9,
Gap Hangingwall, Shane, Joker and Porky.
Osisko owns a 3% NSR royalty on SSR’s Seabee
Mine. For more information, refer to SSR’s press release dated
February 23rd, 2022 filed on www.sedar.com.
New Lamaque Technical Study Highlights
Significant Upside
On February 24th, Eldorado Gold Corporation
(“Eldorado”) released the results of a new technical study for the
Lamaque project, including increased gold production to over
190,000 ounces per year based on the Upper Triangle Reserves. The
company also highlighted the potential to extend the life of mine
by up to an additional 8.5 years at a production rate of
approximately 180,000 ounces per year with production from Lower
Triangle and Ormaque Inferred resources. These zones have now been
evaluated in a preliminary economic assessment (PEA) and provide
potential for significant production increases and opportunities
for resource expansion.
On March 29th, Eldorado announced expansions to
the Ormaque zone along strike and at depth, including 18.7 g/t
Au over 6.6 meters. An exploration drift is currently being
developed to access the upper Ormaque deposit from the
Triangle-Sigma decline, which will facilitate a 16,900 meter infill
and expansion drill program. Eldorado also announced a 37,000 meter
drill program on the Bourlemaque property focusing on the Bevcon
and Herbin targets.
Osisko holds a 1% NSR royalty over the Triangle,
Plug 4, Parallel and Ormaque deposits, and a 2.5% NSR royalty over
the Bonnefond, Bevcon, Herbin and River targets. For more
information, refer to Eldorado’s press releases dated February 24th
and March 29th, 2022 filed on www.sedar.com.
Osisko Development Financing, Tintic
Acquisition and San Antonio Results
On January 25th, Osisko Development Corp.
(“Osisko Development”) announced the proposed acquisition of Tintic
Consolidated Metals LLC (“TCM”). On completion of the transaction,
Osisko Development will acquire 100% ownership of the producing
Trixie Mine, as well as mineral claims covering more than 17,000
acres in Central Utah’s historic Tintic Mining District. More than
2,300 underground samples collected over a 215 meter strike length
at Trixie have an average grade of 93 g/t gold and 135 g/t silver.
Osisko Development is targeting an increase in throughput from 45
tons per day to 500 tons per day by the end of 2024.
To facilitate Osisko Development’s acquisition
of TCM, OBL has entered into a non-binding term sheet for a
US$20-40 million stream on all metals produced from the Trixie
Mine. If the full US$40 million upfront deposit is utilized, OBL
will purchase 5% of all metals produced until 54,300 ounces of gold
are delivered, and 4% thereafter. The stream amount will be reduced
pro rata if the upfront deposit is less than US$40 million.
Following the announcement of the acquisition of TCM, Osisko
Development announced financings for gross proceeds totaling
approximately C$251.5 million. Subject to the TCM acquisition and
the closing of said financings, Osisko’s ownership in Osisko
Development will be reduced from 75% to approximately
45%.
On February 28th, Osisko Development announced
drill results on San Antonio. A total of 27,900 meters were
completed on exploration and infill drilling on the Sapuchi,
California and Golfo de Oro deposits. Highlights from Golfo de Oro
include 1.55 g/t gold over 42.5 meters and 2.47 g/t gold over 21.2
meters. Highlights from Sapuchi include 2.19 g/t gold over 78.90
meters including 21.3 g/t gold over 3.2 meters. The Sapuchi, Golfo
de Oro, and California Zones trend for approximately three
kilometers and there are at least a dozen other targets at surface
that remain unexplored or underexplored along a ten kilometer
strike.
Osisko holds a 15% gold and silver stream on the
San Antonio project. For more information, refer to Osisko
Development’s press releases dated January 25th, February 28th,
March 2nd, March 4th, and March 29th, 2022 filed on
www.sedar.com.
Windfall Updates
On January 10th, Osisko Mining Inc. (“Osisko
Mining”) provided an updated mineral resource estimate on the
Windfall gold project (“Windfall”). Measured and Indicated
resources are estimated at 3.2 million ounces of gold, an increase
of 73%, at an average grade of 10.5 g/t. Inferred resources are
estimated at 3.6 million ounces of gold at an average grade of 8.6
g/t. Osisko Mining continued to intersect very high grade
intersections at Windfall in the first quarter of 2022, including
449 g/t gold over 2.3 meters and 56.5 g/t gold over 6.9 meters.
Drilling also confirmed the Golden Bear discovery with 15.3 g/t
gold over 3.5 meters and 10.5g/t gold over 2.4 meters. On March
23rd, Osisko Mining announced the discovery of a new gold zone near
Lynx 4 that included intersections of 60.7 g/t gold over 5 meters
and 76.4 g/t gold over 3.6 meters. A feasibility study is expected
in 2022.
On February 28th, Osisko Mining announced that
it entered into a memorandum of understanding with the Cree First
Nation of Waswanipi (“CFNW”) for transport of hydroelectric power
to the Windfall project. The CFNW will finance, build, own and
operate a 120kV transmission line that will supply hydroelectricity
to the Windfall project.
Osisko owns a 2% to 3% NSR royalty on Osisko
Mining’s Windfall project. For more information, refer to Osisko
Mining’s press releases dated January 10th and 25th, February 16th
and 28th, and March 2nd, 23rd and 29th, 2022 filed on
www.sedar.com.
G Mining Ventures Advancing
Tocantinzinho
On February 9th, G Mining Ventures Corp.
(“G Mining”) reported the results of an updated feasibility
study for the Tocantinzinho gold project, located in Para State,
Brazil. The updated study estimates average annual gold production
of 196,000 ounces over the first five years and 187,000 ounces over
the full 10.5 year mine life. G Mining hopes to secure project
financing and make a construction decision by mid-2022.
Osisko holds a 1.75% NSR royalty on the
Tocantinzinho project that is subject to a buy down of 1% (for a
resulting NSR royalty of 0.75%). For more information, refer to
G Mining’s press release dated February 9th, 2022 filed on
www.sedar.com.
Hermosa Prefeasibility Study
Results
On January 17th, South32 Limited (“South32”)
provided results of a prefeasibility study on the Taylor deposit on
the Hermosa Property. The study outlined an initial 22 year life of
mine with a process design capacity of up to 4.3Mt per year. Based
on the study schedule, and subject to a final investment decision
and receipt of required permits, shaft development is expected to
commence in 2024 with first production in 2027. The steady state
annual metal production estimated by the prefeasibility study is
130,000 tonnes of zinc, 166,000 tonnes of lead and 8.7 million
ounces silver.
The Clarke deposit, hosting Indicated resources
of 33Mt of 9.39% Mn, 2.49% Zn and 110 g/t Ag, and Inferred
resources of 22Mt of 8.64% Mn, 2.04% Zn and 110 g/t Ag is
contemplated as a separate processing unit, producing a
battery-grade manganese product that would be additional to the
production of Taylor. The first phase of the prefeasibility on the
Clark deposit to select the preferred development pathway is
expected in late 2022.
Osisko holds a 1% NSR royalty on the Hermosa
project (including Taylor and Clarke). For more information, refer
to South32’s press release dated January 17th, 2022 on their
website.
Gibraltar Reserve Update
On March 31st, Taseko Mines Limited (“Taseko”)
announced a 40% increase to Proven and Probable reserves at its
75%-owned Gibraltar copper mine in central British Columbia. The
updated reserve at Gibraltar underpins a 23-year mine life
producing on average approximately 129 million pounds of copper and
2.3 million pounds of molybdenum annually. Taseko does not report
the silver content of their reserve estimates.
Osisko holds a 100% silver stream on Taseko’s
75% share of production at Gibraltar. For more information, refer
to Taseko’s press release dated March 31st, 2022 filed on
www.sedar.com.
New Resource at West Kenya
On March 9th, Shanta Gold Limited (“Shanta”)
reported a maiden Inferred resource on the Ramula target (within
the broader West Kenya property) of 6.6Mt grading 2.08 g/t for
434,000 ounces of gold. Shanta management is reviewing an
accelerated timeline to full economic assessment.
On February 28th, Shanta released drill results
from the 31,484 meter drill campaign completed in 2021. Highlights
included 3.9 meters of 17.8 g/t gold at Isulu and 3.2 meters of
16.1 g/t gold at Bushiangala. Osisko holds a 2% NSR royalty on
Shanta’s West Kenya property. For more information, refer to the
press releases dated February 28th and March 9th on Shanta’s
website.
Resource Update at Oracle
Copper
On March 3rd, Eagle Mountain Mining Limited
(“Eagle Mountain”) reported an updated Inferred resource estimate
on their Oracle Ridge project of 17Mt grading 1.48% copper, 15 g/t
silver and 0.17 g/t gold. The current mineral resource does not
include recently reported drill results, including 15 meters at
4.1% copper, 37 g/t silver and 0.53 g/t gold, and 30.7 meters
at 2.54% copper, 22 g/t silver and 0.42 g/t gold. A further
resource update is expected in Q4 2022.
Osisko holds a 3% NSR royalty on Eagle
Mountain’s Oracle Ridge property. For more information, refer to
press releases dated January 24th and March 3rd on Eagle Mountain's
website.
Cornish Metals Financing
On March 28th, Cornish Metals Inc. (“Cornish”)
announced an offering to raise up to £40.5 million including a
strategic investment of £25 million by Vision Blue Resources, an
investment company lead by Sir Mick Davis created to invest in
green energy related metal and mineral resource companies. Net
proceeds from the offering will be used to advance the South Crofty
tin project, a fully permitted, former producing high-grade
underground tin mine located in Cornwall UK. Work will include
dewatering of the mine, resource drilling, completion of a
feasibility study, evaluation of further downstream beneficiation
opportunities, and on-site early works in advance of a potential
construction decision.
Osisko holds a 1.5% NSR royalty on the South
Crofty deposit and 0.5% NSR royalty on the United Downs deposit.
For more information, refer to Cornish’s press release dated March
28th, 2022 filed on www.sedar.com.
ADDITIONAL HIGHLIGHTS
|
1) |
|
First Majestic (2% NSR royalty on Ermitaño) successfully began
underground ore production at Ermitaño. |
|
|
|
|
|
2) |
|
Minera Alamos’ (3% NSR royalty on
Santana) announced optimization efforts provided positive impacts
on mining and leaching activities at Santana. |
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|
|
|
|
3) |
|
Western Copper and Gold (2.75%
NSR royalty on Casino) intersected 0.37% Cu and 0.59 g/t Au over
148.23 meters within the HYP zone. |
|
|
|
|
|
4) |
|
OceanaGold (2% NSR royalty on
WKP) intersected 39.1 g/t gold and 73.4 g/t silver over 10.3 meters
at WKP. |
|
|
|
|
|
5) |
|
Westhaven Resources (2% NSR
royalty on Shovelnose) declared a maiden Indicated resource of
10.6Mt of 2.32 g/t gold for 791koz and Inferred resources of
9.2Mt of 0.9 g/t for 263koz gold. |
|
|
|
|
|
6) |
|
Group 6 Metals (1.5% GRR on
Dolphin) announced that construction activities commenced on the
Dolphin Tungsten mine on King Island, Tasmania. |
|
|
|
|
|
7) |
|
Talisker Resources (1.7% NSR
royalty on Bralorne) intersected multiple intervals including
38 g/t gold over 1.55 meters and 43.5 g/t gold over 1.3
meters. |
|
|
|
|
|
8) |
|
Calibre Mining (4% NSR royalty on
Pan) intersected 1.02 g/t gold over 50.3 meters and 0.83 g/t gold
over 34 meters at Pan mine. |
|
|
|
|
|
9) |
|
O3 Mining (≈0.45% blended NSR
royalty on Marban after buybacks) increased open pit resources by
29% in the Indicated category at Marban. |
|
|
|
|
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10) |
|
Aldebaran Resources (1% NSR
royalty on Altar) intersected 19.08 g/t gold over 14.9 meters
and 0.51% copper equivalent over 707.1 meters on the Altar
property. |
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|
|
|
|
11) |
|
Pacific Ridge Exploration (1.5%
NSR royalty on Kliyul) reported 0.3% copper and 0.7 g/t gold over
316.7 meters and 0.28% copper and 0.5 g/t gold over 291.7
meters at Kliyul. |
Q1 2022 RESULTS AND CONFERENCE CALL DETAILS
Osisko provides notice of the first quarter 2022
results and conference call details. Participants will be required
to provide a passcode before joining the conference call as noted
below.
Q1 2022 Results Release: |
Wednesday, May 11th, 2022 after market close |
Conference Call: |
Thursday, May 12th, 2022 at 8:00 am EDT |
Dial-in Numbers: |
North American Toll-Free: 1 (888) 440-2180Local and International:
1 (438) 803-0536Access code: 1981388 |
Replay (available until May 27th
at 11:59 pm EDT): |
North American Toll-Free: 1 (800) 770-2030Local and International:
1 (647) 362-9199Access code: 1981388 |
|
Replay also available on our website at www.osiskogr.com |
Notes:
The figures presented in this press release,
including revenues and costs of sales, have not been audited and
are subject to change. As the Corporation has not yet finished its
quarter-end procedures, the anticipated financial information
presented in this press release is preliminary, subject to
quarter-end adjustments, and may change materially.
(1) Gold Equivalent OuncesGEOs
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 |
|
1.2660 |
|
|
|
(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 MeasuresThe
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 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. 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 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.
Cash margin (in dollars) represents revenues from royalties and
streams less cost of sales (excluding depletion). Cash margin (in
percentage) represents the cash margin (in dollars) divided by
revenues from royalties and streams.
|
|
Three months ended March 31, 2022 |
|
|
|
All assets |
|
Renarddiamond stream |
|
All assets, excluding the Renard diamond stream |
|
|
|
|
|
|
|
Revenues |
$ |
50,689 |
|
$ |
7,190 |
|
$ |
43,499 |
|
|
Less: Cost of sales |
$ |
(3,181 |
) |
$ |
(2,023 |
) |
$ |
(1,158 |
) |
|
Cash margin (in dollars) |
$ |
47,508 |
|
$ |
5,167 |
|
$ |
42,341 |
|
|
Cash margin (in percentage of revenues) |
|
94 |
% |
|
72 |
% |
|
97 |
% |
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 is an intermediate precious metal royalty
company focused on the Americas that commenced activities in June
2014. Osisko 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 TaylorVice President,
Investor RelationsTel: (514) 940-0670 #105Email:
htaylor@osiskogr.com |
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, 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, requirements for additional 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 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”, “would”, “may”, “could” or “should”.
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
consistent 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 reserves 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 “passive foreign investment
company” (“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. In this press release, Osisko relies on information publicly
disclosed by 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 because of new information,
future events or otherwise, other than as required by applicable
law.
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