Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX
& NYSE) today announced its consolidated financial results for
the second quarter of 2022. Amounts presented are in Canadian
dollars, except where otherwise noted.
Q2 2022 Financial
Highlights
- 22,243
GEOs1 earned (Q2 2021 – 20,178 GEOs);
- Consolidated
revenues of $64.0 million (Q2 2021 – $57.9 million);
- Revenues from
the royalties and streams segment2 of $51.5 million (Q2 2021 –
$57.2 million, including $7.3 million from offtakes);
- Revenues from
the mining exploration and development segment3 (i.e. Osisko
Development Corp.) of $12.4 million (Q2 2021 – $0.7 million);
- Consolidated
cash flows from operating activities of ($0.2 million) (Q2 2021 –
$30.9 million);
- Operating cash flows from the
royalties and streams segment of $35.0 million (Q2 2021 – $37.3
million);
- Operating cash flows from the
mining exploration and development segment of ($35.2) million
(Q2 2021 – ($6.4) million);
- Cash
margin4 of 93% from royalties and streams (Q2 2021 –
94%);
- Consolidated net
earnings attributable to Osisko’s shareholders of $17.2 million, or
$0.09 per share (Q2 2021 – net loss of $14.8 million or $0.09
per basic share);
- Consolidated
adjusted loss4 of $4.7 million, or $0.03 per basic share (Q2
2021 – net earnings $20.2 million, $0.12 per basic share);
- Adjusted
earnings from the royalty and stream segment of $25.7 million, or
$0.14 per basic share (Q2 2021 – $23.9 million, or $0.14 per basic
share); and
- Adjusted loss
from the mining exploration and development segment of $30.4
million, or $0.16 per basic share (Q2 2021 – $3.7 million, or $0.02
per basic share).
Sandeep Singh, President and CEO of Osisko
commented: “We benefited from record GEO deliveries and cash
margins in Q2 despite two core assets not being at their full run
rates, and we expect deliveries to continue to climb steadily in
the second half of the year. The markets have become increasingly
volatile, but we believe the investment thesis for Osisko has never
been stronger with growing cash flows, meaningful diversification,
exposure to tier-1 jurisdictions, and countless catalysts in the
portfolio. And as evident with our Q2 results, our royalty and
streaming business affords protection from a highly inflationary
mining environment.”
Financial Highlights by Operating Segment(in
thousands of dollars, except per share amounts)
As a result of the interest held (44.1% as of
June 30, 2022) and based on other facts and circumstances, the
Corporation consolidates the assets, liabilities, results of
operations and cash flows of the activities of Osisko Development
Corp. (“Osisko Development”) and its subsidiaries. The table below
provides some financial highlights per operating segment. More
information per operating segment can be found in the consolidated
financial statements and management’s discussion and analysis for
the three and six months ended June 30, 2022.
|
For the three and six months ended June 30, |
|
Osisko Gold Royalties
(i) |
Osisko Development (ii) |
Consolidated (v) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
$ |
$ |
$ |
$ |
$ |
$ |
|
|
|
|
|
|
|
Cash (June 30, 2022 and Dec. 31, 2021) |
312,981 |
|
82,291 |
|
136,302 |
|
33,407 |
|
449,283 |
|
115,698 |
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
|
|
|
|
Revenues |
51,545 |
|
57,246 |
|
12,862 |
|
775 |
|
63,959 |
|
57,941 |
|
Cash margin (iii) |
47,789 |
|
47,150 |
|
n/a |
|
n/a |
|
47,789 |
|
47,150 |
|
Gross profit |
35,938 |
|
35,713 |
|
653 |
|
- |
|
36,591 |
|
35,713 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
(G&A, bus. dev and exploration) |
(6,200 |
) |
(6,483 |
) |
(10,079 |
) |
(4,649 |
) |
(16,279 |
) |
(11,132 |
) |
Mining operating expenses |
- |
|
- |
|
(20,602 |
) |
- |
|
(20,602 |
) |
- |
|
Net earnings (loss) |
18,059 |
|
16,341 |
|
(1,487 |
) |
(41,404 |
) |
16,572 |
|
(25,063 |
) |
Net earnings (loss) attributable to Osisko’s shareholders |
18,059 |
|
16,341 |
|
(899 |
) |
(31,100 |
) |
17,160 |
|
(14,759 |
) |
Net earnings (loss) per share attributable to Osisko’s
shareholders |
0.10 |
|
0.10 |
|
(0.01 |
) |
(0.19 |
) |
0.09 |
|
(0.09 |
) |
Adjusted net earnings (loss) (iv) |
25,716 |
|
23,877 |
|
(30,375 |
) |
(3,727 |
) |
(4,659 |
) |
20,150 |
|
Adjusted net earnings (loss) per basic share (iv) |
0.14 |
|
0.14 |
|
(0.16 |
) |
(0.02 |
) |
(0.03 |
) |
0.12 |
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
Before working capital items |
40,870 |
|
39,026 |
|
(24,913 |
) |
(3,708 |
) |
15,957 |
|
35,318 |
|
Working capital items |
(5,905 |
) |
(1,685 |
) |
(10,276 |
) |
(2,716 |
) |
(16,181 |
) |
(4,401 |
) |
After working capital items |
34,965 |
|
37,341 |
|
(35,189 |
) |
(6,424 |
) |
(224 |
) |
30,917 |
|
Cash flows from investing activities |
2,573 |
|
(42,377 |
) |
(97,759 |
) |
(47,464 |
) |
(95,186 |
) |
(89,841 |
) |
Cash flows from financing activities |
(125,705 |
) |
(3,542 |
) |
210,225 |
|
(1,718 |
) |
84,520 |
|
(5,260 |
) |
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
|
|
|
|
Revenues |
102,234 |
|
124,169 |
|
22,029 |
|
775 |
|
123,357 |
|
124,864 |
|
Cash margin (iii) |
95,297 |
|
93,676 |
|
n/a |
|
n/a |
|
95,297 |
|
93,676 |
|
Gross profit |
72,148 |
|
70,312 |
|
653 |
|
- |
|
72,801 |
|
70,312 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
(G&A, bus. dev and exploration) |
(12,457 |
) |
(12,511 |
) |
(18,007 |
) |
(9,851 |
) |
(30,464 |
) |
(22,362 |
) |
Mining operating expenses |
- |
|
|
(35,848 |
) |
|
- |
|
|
Net earnings (loss) |
34,863 |
|
29,805 |
|
(23,820 |
) |
(45,105 |
) |
11,043 |
|
(15,300 |
) |
Net earnings (loss) attributable to Osisko’s shareholders |
34,863 |
|
29,805 |
|
(17,377 |
) |
(33,970 |
) |
17,486 |
|
(4,165 |
) |
Net earnings (loss) per share attributable to Osisko’s
shareholders |
0.20 |
|
0.18 |
|
(0.10 |
) |
(0.20 |
) |
0.10 |
|
(0.02 |
) |
Adjusted net earnings (loss) (iv) |
50,559 |
|
47,316 |
|
(50,982 |
) |
(9,238 |
) |
(423 |
) |
38,078 |
|
Adjusted net earnings (loss) per basic share (iv) |
0.29 |
|
0.28 |
|
(0.29 |
) |
(0.06 |
) |
(0.00 |
) |
0.23 |
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
Before working capital items |
80,762 |
|
78,565 |
|
(42,182 |
) |
(1,285 |
) |
38,580 |
|
71,570 |
|
Working capital items |
(5,290 |
) |
(4,487 |
) |
(9,904 |
) |
(14,842 |
) |
(15,194 |
) |
(19,329 |
) |
After working capital items |
75,472 |
|
74,078 |
|
(52,086 |
) |
(16,127 |
) |
23,386 |
|
52,241 |
|
Cash flows from investing activities |
(13,013 |
) |
(56,158 |
) |
(94,445 |
) |
(69,172 |
) |
(107,458 |
) |
(119,620 |
) |
Cash flows from financing activities |
159,823 |
|
(11,053 |
) |
247,362 |
|
33,895 |
|
407,185 |
|
22,842 |
|
(i) |
Osisko Gold Royalties Ltd and its subsidiaries, excluding Osisko
Development Corp. and its subsidiaries. Represents the royalty,
stream and other interests segment. |
(ii) |
Osisko Development Corp. and its subsidiaries. Represents the
exploration, evaluation and development of mining projects
segment. |
(iii) |
Cash margin is a non-IFRS financial performance measure for the
royalties and streams segment which has no standard definition
under IFRS. It is calculated by deducting the cost of sales
(excluding depletion) from the revenues. Please refer to the
Non-IFRS Financial Performance Measures section of the MD&A for
the three and six months ended June 30, 2022 or the Notes section
at the end of this press release. |
(iv) |
Adjusted earnings (loss) and adjusted earnings (loss) per basic
share are non-IFRS financial performance measures which have no
standard definition under IFRS. Refer to the non-IFRS measures
provided under the Non-IFRS Financial Performance Measures section
of the Corporation’s MD&A for the three and six months ended
June 30, 2022 or the Notes section at the end of this press
release. |
(v) |
Consolidated results are net of the intersegment transactions.
Refer to the Segment Disclosure section of the Corporation’s
MD&A for the three and six months ended June 30, 2022. |
Other Highlights
-
Publication of the inaugural Asset Handbook and the second edition
of the environmental, social and governance (“ESG”) report, Growing
Responsibly;
-
Repayment in full of the outstanding revolving credit facility for
$113.1 million;
-
Osisko Development completed the acquisition of Tintic Consolidated
Metals LLC (“TCM”) and related financings, which resulted in the
Corporation’s equity ownership in Osisko Development reducing from
70.1% to 44.1%;
-
Osisko Bermuda Limited (“OBL”) entered into a binding agreement
with TCM with respect to the previously announced metals stream
(the “Tintic Stream”) on the Trixie test mine (the “Trixie Mine”),
as well as mineral claims covering more than 17,000 acres in
Central Utah’s historic Tintic Mining District (the “Tintic
Property”), for US$20.0 million in exchange for 2.5% of all metals
produced and a transfer price of 25% of the spot prices;
-
Quarterly dividend of $0.055 per common share paid on July 15, 2022
to shareholders of record as of the close of business on June 30,
2022;
-
In July 2022, the Corporation purchased for cancellation a total of
659,520 common shares for $8.3 million (average acquisition price
per share of $12.65) under its 2022 NCIB program; and
-
Declaration of a quarterly dividend of $0.055 per common share
payable on October 14, 2022 to shareholders of record as of the
close of business on September 30, 2022.
Q2 2022 Results Conference Call
Details
Conference Call: |
Wednesday, August 10th, 2022 at 10:00 am ET |
Dial-in Numbers: |
North American Toll-Free: 1 (888) 396 8049Local and International:
1 (416) 764 8646Conference ID: 28077702 |
Replay (available until August 17th at 11:59 pm ET): |
North American Toll-Free: 1 (877) 674 7070Local and International:
1 (416) 764 8692Playback passcode: 077702# |
|
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 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 x105htaylor@osiskogr.com
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 June 30, |
|
Six months endedJune 30, |
|
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
|
|
|
|
|
Gold(i) |
$ |
1,871 |
$ |
1,816 |
|
$ |
1,874 |
$ |
1,805 |
Silver(ii) |
$ |
23 |
$ |
27 |
|
$ |
23 |
$ |
26 |
|
|
|
|
|
|
Exchange rate
(US$/Can$)(iii) |
|
1.2768 |
|
1.2282 |
|
|
1.2715 |
|
1.2471 |
|
(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) The royalties and streams
segment refers to the royalty, stream and other interests segment,
which corresponds to the activities of Osisko Gold Royalties Ltd
and its subsidiaries, excluding Osisko Development Corp. and its
subsidiaries.
(3) The mining exploration and
development segment refers to the mining exploration, evaluation
and development segment, which corresponds to the activities of
Osisko Development Corp. and its subsidiaries.
(4) 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) for
the royalties and streams segment, (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.
Cash Margin (in dollars and in percentage of revenues)
Cash margin (in dollars) represents revenues
from the royalties and streams segment less cost of sales
(excluding depletion). Cash margin (in percentage of revenues)
represents the cash margin (in dollars) divided by revenues from
the royalties and streams segment.
|
|
Three months ended June 30, |
|
Six months ended June, |
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
$ |
|
$ |
|
$ |
|
$ |
|
|
|
|
|
|
|
|
Royalty and stream
interests |
|
|
|
|
|
Total Revenues |
63,959 |
|
57,941 |
|
123,357 |
|
124,864 |
|
|
Less: Revenues from mining
activities (Osisko Development) |
(12,414 |
) |
(695 |
) |
(21,123 |
) |
(695 |
) |
|
Less: Revenues from offtake
interests |
- |
|
(7,339 |
) |
- |
|
(25,265 |
) |
|
Revenues from royalty and
stream interests |
51,545 |
|
49,907 |
|
102,234 |
|
98,904 |
|
|
|
|
|
|
|
|
Total Cost of sales |
(15,318 |
) |
(10,791 |
) |
(26,480 |
) |
(31,188 |
) |
|
Less: Cost of sales from
mining activities (Osisko Development) |
11,562 |
|
695 |
|
19,543 |
|
695 |
|
|
Less: Cost of sales from
offtake interests |
- |
|
7,104 |
|
- |
|
24,343 |
|
|
Cost of sales of royalty and
stream interests |
(3,756 |
) |
(2,992 |
) |
(6,937 |
) |
(6,150 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from royalty and
stream interests |
51,545 |
|
49,907 |
|
102,234 |
|
98,904 |
|
|
Less: Cost of sales of royalty
and stream interests |
(3,756 |
) |
(2,992 |
) |
(6,937 |
) |
(6,150 |
) |
|
Cash margin (in dollars) -
royalty and stream interests |
47,789 |
|
46,915 |
|
95,297 |
|
92,754 |
|
|
|
|
|
|
|
|
Cash margin (in percentage of
revenues) - royalty and stream interests |
93 |
% |
94 |
% |
93 |
% |
94 |
% |
|
|
|
|
|
|
|
Offtake
interests |
|
|
|
|
|
Revenues from offtake
interests |
- |
|
7,339 |
|
- |
|
25,265 |
|
|
Less: Cost of sales of offtake
interests |
- |
|
(7,104 |
) |
- |
|
(24,343 |
) |
|
Cash margin (in dollars) |
- |
|
235 |
|
- |
|
922 |
|
|
|
|
|
|
|
|
Cash margin (in percentage of
revenues) |
- |
|
3 |
% |
- |
|
4 |
% |
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 exploration and evaluation assets, unrealized gain (loss) on
investments, share of loss of associates, deferred premium income
on flow-through shares, 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.
|
For the three months ended June 30, |
|
2022 |
2021 |
|
Osisko GoldRoyalties
(i) |
|
Osisko Development (ii) |
|
Consolidated |
|
Osisko GoldRoyalties
(i) |
|
Osisko Development (ii) |
|
Consolidated |
|
(in thousands of dollars, except per share amounts) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
|
|
|
|
|
|
Net earnings (loss) |
18,059 |
|
(1,487 |
) |
16,572 |
|
16,341 |
|
(41,404 |
) |
(25,063 |
) |
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
Impairment of assets |
384 |
|
- |
|
384 |
|
- |
|
40,479 |
|
40,479 |
|
Foreign exchange (gain) loss |
(7,593 |
) |
(1,563 |
) |
(9,156 |
) |
(169 |
) |
791 |
|
622 |
|
Unrealized loss (gain) on investments |
5,574 |
|
(11,697 |
) |
(6,123 |
) |
1,553 |
|
13 |
|
1,566 |
|
Variation of fair value of derivative instruments |
- |
|
(19,381 |
) |
(19,381 |
) |
- |
|
- |
|
- |
|
Share of loss of associates |
1,078 |
|
141 |
|
1,219 |
|
1,111 |
|
750 |
|
1,861 |
|
Deferred premium income on flow-through shares |
- |
|
(573 |
) |
(573 |
) |
- |
|
(2,798 |
) |
(2,798 |
) |
Transaction cost – Tintic |
- |
|
2,664 |
|
2,664 |
|
|
|
|
Deferred income tax expense (recovery) |
8,214 |
|
1,521 |
|
9,735 |
|
5,041 |
|
(1,558 |
) |
3,483 |
|
|
|
|
|
|
|
|
Adjusted earnings (loss) |
25,716 |
|
(30,375 |
) |
(4,659 |
) |
23,877 |
|
(3,727 |
) |
20,150 |
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding (000’s) |
185,316 |
|
185,316 |
|
185,316 |
|
167,895 |
|
167,895 |
|
167,895 |
|
|
|
|
|
|
|
|
Adjusted earnings (loss) per basic share |
0.14 |
|
(0.16 |
) |
(0.03 |
) |
0.14 |
|
(0.02 |
) |
0.12 |
|
|
For the six months ended June 30, |
|
2022 |
|
2021 |
|
|
Osisko GoldRoyalties
(i) |
|
Osisko Development (ii) |
|
Consolidated |
|
Osisko GoldRoyalties
(i) |
|
Osisko Development (ii) |
|
Consolidated |
|
(in thousands of dollars, except per share amounts) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
|
|
|
|
|
|
Net earnings (loss) |
34,863 |
|
(23,820 |
) |
11,043 |
|
29,805 |
|
(45,105 |
) |
(15,300 |
) |
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
Impairment of assets |
904 |
|
- |
|
904 |
|
4,400 |
|
40,479 |
|
44,879 |
|
Foreign exchange loss (gain) |
(8,469 |
) |
(2,087 |
) |
(10,556 |
) |
(140 |
) |
1,535 |
|
1,395 |
|
Unrealized (gain) loss on investments |
11,414 |
|
(11,469 |
) |
(55 |
) |
2,942 |
|
(1,297 |
) |
1,645 |
|
Variation of fair value of derivative instruments |
- |
|
(19,381 |
) |
(19,381 |
) |
- |
|
- |
|
- |
|
Share of (earnings) loss of associates |
(1,526 |
) |
472 |
|
(1,054 |
) |
736 |
|
1,157 |
|
1,893 |
|
Deferred premium income on flow-through shares |
- |
|
(914 |
) |
(914 |
) |
- |
|
(3,267 |
) |
(3,267 |
) |
Transaction cost – Tintic |
- |
|
4,727 |
|
4,727 |
|
|
|
|
Deferred income tax expense (recovery) |
13,373 |
|
1,490 |
|
14,863 |
|
9,573 |
|
(2,740 |
) |
6,833 |
|
|
|
|
|
|
|
|
Adjusted earnings (loss) |
50,559 |
|
(50,982 |
) |
(423 |
) |
47,316 |
|
(9,238 |
) |
38,078 |
|
|
|
|
|
|
|
|
Weighted average number of common
shares outstanding (000’s) |
176,182 |
|
176,182 |
|
176,182 |
|
167,696 |
|
167,696 |
|
167,696 |
|
|
|
|
|
|
|
|
Adjusted earnings (loss) per basic share |
0.29 |
|
(0.29 |
) |
0.00 |
|
0.28 |
|
(0.06 |
) |
0.23 |
|
(i) Osisko Gold Royalties Ltd
and its subsidiaries, excluding Osisko Development Corp. and its
subsidiaries. Represents the royalty, stream and other interests
segment.(ii) Osisko Development Corp. and its
subsidiaries. Represents the mining exploration, evaluation and
development segment.
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, 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" 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: 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 Corporation’s ongoing income
and assets relating to determination of its 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. 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
LtdConsolidated Balance Sheets (tabular amounts expressed
in thousands of Canadian dollars)
|
June 30, |
|
|
December 31, |
|
|
2022 |
|
|
2021 |
|
|
$ |
|
|
$ |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
Cash |
449,283 |
|
|
115,698 |
|
Amounts receivable |
27,736 |
|
|
14,691 |
|
Inventories |
26,361 |
|
|
18,596 |
|
Other assets |
6,698 |
|
|
3,941 |
|
|
510,078 |
|
|
152,926 |
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
Investments in associates |
126,523 |
|
|
125,354 |
|
Other investments |
113,302 |
|
|
169,010 |
|
Royalty, stream and other interests |
1,148,482 |
|
|
1,154,801 |
|
Mining interests and plant and equipment |
836,706 |
|
|
635,655 |
|
Exploration and evaluation |
42,758 |
|
|
3,635 |
|
Goodwill |
111,204 |
|
|
111,204 |
|
Other assets |
34,381 |
|
|
18,037 |
|
|
2,923,434 |
|
|
2,370,622 |
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
33,341 |
|
|
30,049 |
|
Dividends payable |
10,177 |
|
|
9,157 |
|
Provisions and other liabilities |
12,663 |
|
|
12,179 |
|
Current portion of long-term debt |
300,600 |
|
|
294,891 |
|
|
356,781 |
|
|
346,276 |
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
|
Provisions and other liabilities |
89,855 |
|
|
60,334 |
|
Long-term debt |
4,636 |
|
|
115,544 |
|
Deferred income taxes |
96,417 |
|
|
68,407 |
|
|
547,689 |
|
|
590,561 |
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
Share capital |
2,085,642 |
|
|
1,783,689 |
|
Warrants |
- |
|
|
18,072 |
|
Contributed surplus |
59,383 |
|
|
42,525 |
|
Equity component of convertible debentures |
14,510 |
|
|
14,510 |
|
Accumulated other comprehensive income |
28,010 |
|
|
58,851 |
|
Deficit |
(305,499 |
) |
|
(283,042 |
) |
Equity attributable to
Osisko Gold Royalties Ltd’s shareholders |
1,882,046 |
|
|
1,634,605 |
|
Non-controlling interests |
493,699 |
|
|
145,456 |
|
Total
equity |
2,375,745 |
|
|
1,780,061 |
|
|
2,923,434 |
|
|
2,370,622 |
|
Osisko Gold Royalties
LtdConsolidated Statements of Income (Loss)For the three
and six months June 30, 2022 and 2021(tabular amounts expressed in
thousands of Canadian dollars, except per share amounts)
|
Three months endedJune 30, |
|
|
Six months endedJune 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
|
|
|
|
|
Revenues |
63,959 |
|
|
57,941 |
|
|
123,357 |
|
|
124,864 |
|
|
|
|
|
|
|
|
|
Cost of sales |
(15,318 |
) |
|
(10,791 |
) |
|
(26,480 |
) |
|
(31,188 |
) |
Depletion and amortization |
(12,050 |
) |
|
(11,437 |
) |
|
(24,076 |
) |
|
(23,364 |
) |
Gross
profit |
36,591 |
|
|
35,713 |
|
|
72,801 |
|
|
70,312 |
|
|
|
|
|
|
|
|
|
Other operating
expenses |
|
|
|
|
|
|
|
General and administrative |
(14,875 |
) |
|
(9,171 |
) |
|
(27,519 |
) |
|
(19,077 |
) |
Business development |
(1,260 |
) |
|
(1,118 |
) |
|
(2,681 |
) |
|
(2,105 |
) |
Exploration and evaluation |
(144 |
) |
|
(843 |
) |
|
(264 |
) |
|
(1,180 |
) |
Mining operating expenses |
(20,602 |
) |
|
- |
|
|
(35,848 |
) |
|
- |
|
Impairments - royalty, stream and other interests |
- |
|
|
- |
|
|
- |
|
|
(2,288 |
) |
Impairments - mining exploration, evaluation and development |
- |
|
|
(40,479 |
) |
|
- |
|
|
(40,479 |
) |
Operating (loss)
income |
(290 |
) |
|
(15,898 |
) |
|
6,489 |
|
|
5,183 |
|
Interest income |
2,292 |
|
|
1,348 |
|
|
3,483 |
|
|
2,658 |
|
Finance costs |
(7,310 |
) |
|
(5,884 |
) |
|
(13,683 |
) |
|
(12,027 |
) |
Foreign exchange gain (loss) |
9,405 |
|
|
(406 |
) |
|
10,592 |
|
|
(1,535 |
) |
Share of (loss) income of associates |
(1,219 |
) |
|
(1,861 |
) |
|
1,054 |
|
|
(1,893 |
) |
Other gains (losses), net |
23,884 |
|
|
1,629 |
|
|
18,660 |
|
|
(281 |
) |
Earnings (loss) before
income taxes |
26,762 |
|
|
(21,072 |
) |
|
26,595 |
|
|
(7,895 |
) |
Income tax expense |
(10,190 |
) |
|
(3,991 |
) |
|
(15,552 |
) |
|
(7,405 |
) |
Net earnings
(loss) |
16,572 |
|
|
(25,063 |
) |
|
11,043 |
|
|
(15,300 |
) |
|
|
|
|
|
|
|
|
Net earnings (loss) attributable to: |
|
|
|
|
|
|
|
Osisko Gold Royalties Ltd’s shareholders |
17,159 |
|
|
(14,759 |
) |
|
17,485 |
|
|
(4,165 |
) |
Non-controlling interests |
(587 |
) |
|
(10,304 |
) |
|
(6,442 |
) |
|
(11,135 |
) |
|
|
|
|
|
|
|
|
Net earnings (loss) per share |
|
|
|
|
|
|
|
Basic and diluted |
0.09 |
|
|
(0.09 |
) |
|
0.10 |
|
|
(0.02 |
) |
Osisko Gold Royalties
LtdConsolidated Statements of Cash FlowsFor the three and
six months ended June 30, 2022 and 2021 (tabular amounts expressed
in thousands of Canadian dollars)
|
Three months endedJune 30, |
|
|
Six months endedJune 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
|
|
|
|
|
|
|
Operating
activities |
|
|
|
|
|
|
|
Net earnings (loss) |
16,572 |
|
|
(25,063 |
) |
|
11,043 |
|
|
(15,300 |
) |
Adjustments for: |
|
|
|
|
|
|
|
Share-based compensation |
2,525 |
|
|
2,090 |
|
|
6,156 |
|
|
5,390 |
|
Depletion and amortization |
15,983 |
|
|
11,794 |
|
|
31,000 |
|
|
24,055 |
|
Impairment of assets |
384 |
|
|
40,479 |
|
|
904 |
|
|
44,879 |
|
Finance costs |
2,570 |
|
|
1,716 |
|
|
4,715 |
|
|
3,555 |
|
Share of loss of associates |
1,219 |
|
|
1,861 |
|
|
(1,054 |
) |
|
1,893 |
|
Net gain on acquisition of investments |
- |
|
|
(211 |
) |
|
(48 |
) |
|
(649 |
) |
Change in fair value of financial assets and liabilities at fair
value through profit and loss |
(12,106 |
) |
|
1,777 |
|
|
(3,930 |
) |
|
3,685 |
|
Net gain on dilution of investments |
(1,544 |
) |
|
- |
|
|
(3,604 |
) |
|
(1,391 |
) |
Gain in deemed disposal of associate |
(11,854 |
) |
|
- |
|
|
(11,854 |
) |
|
- |
|
Foreign exchange (gain) loss |
(9,156 |
) |
|
622 |
|
|
(10,556 |
) |
|
1,395 |
|
Flow-through shares premium income |
(573 |
) |
|
(2,798 |
) |
|
(914 |
) |
|
(3,268 |
) |
Deferred income tax expense |
9,735 |
|
|
3,483 |
|
|
14,863 |
|
|
6,833 |
|
Other |
2,202 |
|
|
(432 |
) |
|
1,859 |
|
|
493 |
|
Net cash flows provided by
operating activities before changes in non-cash working capital
items |
15,957 |
|
|
35,318 |
|
|
38,580 |
|
|
71,570 |
|
Changes in non-cash working
capital items |
(16,181 |
) |
|
(4,401 |
) |
|
(15,194 |
) |
|
(19,329 |
) |
Net cash flows (used in) provided
by operating activities |
(224 |
) |
|
30,917 |
|
|
23,386 |
|
|
52,241 |
|
|
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
|
|
Acquisition of Tintic, net of
cash acquired |
(62,189 |
) |
|
- |
|
|
(62,189 |
) |
|
- |
|
Acquisition of investments |
(384 |
) |
|
(4,026 |
) |
|
(11,118 |
) |
|
(13,837 |
) |
Proceeds on disposal of
investments |
3,186 |
|
|
8,338 |
|
|
24,241 |
|
|
28,109 |
|
Acquisition of royalty and stream
interests |
- |
|
|
(39,085 |
) |
|
(9,290 |
) |
|
(42,877 |
) |
Mining assets and plant and
equipment |
(20,973 |
) |
|
(53,839 |
) |
|
(34,007 |
) |
|
(89,651 |
) |
Exploration and evaluation
expenses, net |
(681 |
) |
|
(1,028 |
) |
|
(686 |
) |
|
(1,163 |
) |
Reclamation deposits, net |
(13,371 |
) |
|
- |
|
|
(13,371 |
) |
|
- |
|
Other |
(774 |
) |
|
(201 |
) |
|
(1,038 |
) |
|
(201 |
) |
Net cash flows used in investing
activities |
(95,186 |
) |
|
(89,841 |
) |
|
(107,458 |
) |
|
(119,620 |
) |
|
|
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
|
|
Bought deal equity financing |
- |
|
|
- |
|
|
311,962 |
|
|
- |
|
Share issue costs |
(1,125 |
) |
|
- |
|
|
(13,941 |
) |
|
- |
|
Increase in long-term debt |
3,666 |
|
|
- |
|
|
7,536 |
|
|
50,000 |
|
Repayment of long-term debt |
(115,095 |
) |
|
- |
|
|
(115,700 |
) |
|
(50,000 |
) |
Investments from minority
shareholders |
213,153 |
|
|
- |
|
|
255,543 |
|
|
38,841 |
|
Share issue expenses from
investments from minority shareholders |
(5,108 |
) |
|
- |
|
|
(7,238 |
) |
|
(2,581 |
) |
Exercise of share options and
shares issued under the share purchase plan |
312 |
|
|
8,129 |
|
|
934 |
|
|
13,107 |
|
Normal course issuer bid purchase
of common shares |
- |
|
|
- |
|
|
(4,879 |
) |
|
(4,464 |
) |
Dividends paid |
(9,755 |
) |
|
(7,914 |
) |
|
(18,478 |
) |
|
(15,696 |
) |
Capital payments on lease
liabilities |
(1,060 |
) |
|
(1,928 |
) |
|
(6,332 |
) |
|
(2,780 |
) |
Withholding taxes on settlement
of restricted and deferred share units |
(1,800 |
) |
|
(3,544 |
) |
|
(2,224 |
) |
|
(3,582 |
) |
Other |
1,332 |
|
|
(3 |
) |
|
2 |
|
|
(3 |
) |
Net cash flows provided by (used
in) financing activities |
84,520 |
|
|
(5,260 |
) |
|
407,185 |
|
|
22,842 |
|
|
|
|
|
|
|
|
|
(Decrease) increase in cash
before effects of exchange rate changes on cash |
(10,890 |
) |
|
(64,184 |
) |
|
323,113 |
|
|
(44,537 |
) |
Effects of exchange rate changes
on cash |
10,723 |
|
|
(1,483 |
) |
|
10,472 |
|
|
(3,024 |
) |
(Decrease) increase in
cash |
(167 |
) |
|
(65,667 |
) |
|
333,585 |
|
|
(47,561 |
) |
Cash – beginning of
period |
449,450 |
|
|
320,630 |
|
|
115,698 |
|
|
302,524 |
|
Cash – end
of period |
449,283 |
|
|
254,963 |
|
|
449,283 |
|
|
254,963 |
|
Osisko Gold Royalties (NYSE:OR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Osisko Gold Royalties (NYSE:OR)
Historical Stock Chart
From Sep 2023 to Sep 2024