Osisko Gold Royalties Ltd (the “
Corporation” or
“
Osisko”) (OR: TSX & NYSE) is pleased to
provide an update on its fourth quarter 2022 deliveries, revenues,
cash margin and recent asset advancements. All monetary amounts
included in this report are expressed in Canadian dollars, unless
otherwise noted.
PRELIMINARY Q4 2022 RESULTS
Osisko earned approximately 25,023 attributable
gold equivalent ounces1 (“GEOs”) in the fourth quarter of 2022, for
a total of approximately 89,367 GEOs in 2022, representing record
quarterly and annual deliveries for the Corporation.
Osisko recorded preliminary revenues from
royalties and streams of $61.9 million during the fourth quarter
and preliminary cost of sales (excluding depletion) of
$4.7 million, resulting in a record quarterly cash margin2 of
approximately $57.2 million (or 92%).
For the year 2022, preliminary revenues from
royalties and streams reached a record $217.8 million and
preliminary cost of sales (excluding depletion) are estimated at
$16.1 million, resulting in a record annual cash margin2 of
approximately $201.7 million (or 93%).
As at December 31st, 2022, Osisko’s cash
position amounted to approximately $90.5 million, after repaying,
in full, the $300 million convertible debentures on December 31,
2022 and advancing US$50 million to SolGold plc (“SolGold”)
pursuant to the previously announced royalty financing on the
world-class Cascabel copper-gold property. The Corporation’s
revolving credit facility was drawn by approximately $150 million
at the end of 2022, with an additional amount of $400 million
available to be drawn, plus the uncommitted accordion of up to $200
million.
Sandeep Singh, President and CEO of Osisko,
commented: “2022 was an exceptionally positive year for Osisko. We
had successive quarters of record GEOs earned, revenues and cash
margins, we added world-class assets to an already high-quality
portfolio, took advantage of volatile markets to buy-back 1.7
million common shares for $22.1 million, reactivated stream
payments from the Renard mine, simplified the business with the
deconsolidation of Osisko Development Corp. realigning Osisko as a
pure-play royalty and streaming business and continued to
strengthen and diversify our Board of Directors.
“Our GEOs earned, year-over-year, increased by
12% in 2022 but fell slightly short of the low end of our guidance
of 90,000 ounces. This was partly due to the Eagle mine still
working towards steady-state production and the Mantos mine facing
delays in the ramp up of their mill expansion. That extra growth
will flow into upcoming quarters and we expect significant upward
momentum in deliveries from both mines going forward. The higher
gold-silver price ratio, experienced mostly in the second and third
quarters, also reduced GEOs earned by approximately 1,550 ounces in
2022 versus expectations.
“Our asset base continues to outperform through
numerous expansions, mine life extensions and reserve and resource
replacement, and we look forward to continuing to showcase the
depth and quality of our asset base throughout 2023.”
Osisko will provide full production and
financial details with the release of its fourth quarter and full
year 2022 results after market close on Thursday, February 23rd,
2023 followed by a conference call on Friday, February 24th at 10am
ET. More details are provided at the end of this release.
RECENT ASSET ADVANCEMENTS AND UPCOMING
CATALYSTS
CSA (100% Silver Stream - Pending
Transaction Closing)
On December 28th, Osisko announced that Osisko
Bermuda Limited (“OBL”) entered into a revised binding agreement
with Metals Acquisition Corp (“MAC”) with respect to the previously
announced silver stream on the producing CSA mine (“CSA”) in New
South Wales, Australia. The key amendment in the revised agreement
is a potential reduction in the upfront deposit amount payable by
OBL on closing from US$90 million to US$75 million for 100% of
payable silver for the life of mine. Between 2019-2021, annual
payable silver production from CSA averaged ~431,000 ounces, or
~5,700 gold equivalent ounces3 annually (based on commodity prices
on December 22, 2022).
Additionally, OBL entered into a backstop
financing agreement with MAC as an update to the previously
announced copper stream option. OBL may provide an upfront deposit
of up to US$75 million in respect of a copper stream on CSA, which
MAC may draw in whole or in part to fund any shortfall in the
equity financing required to complete the acquisition of the mine.
If the full deposit is drawn, OBL will be entitled to receive 3.0%
of payable copper until the 5th anniversary of the closing date
(the “First Threshold Stream”), then 4.875% of payable copper until
33,000 metric tonnes have been delivered in aggregate (the “Second
Threshold Stream”), and thereafter 2.25% for the remaining life of
mine. Between 2019-2021, annual copper production from CSA averaged
~43,000 metric tonnes. Based on historical production levels,
average gold equivalent ounces4 deliverable under the First
Threshold Stream and the Second Threshold Stream would equate to
between ~5,700 to 9,300 ounces annually (based on commodity prices
on December 22, 2022).
Closing of the acquisition is expected in 2023,
subject to MAC securing sufficient acquisition financing.
Canadian Malartic Update (5% NSR royalty
on open pit and 3-5% NSR royalty on underground)
On November 4th, Agnico Eagle Mines Ltd.
(“Agnico Eagle”) announced a binding offer to acquire Yamana Gold
Inc.’s (“Yamana”) interest in its Canadian assets, including the
other half of the Canadian Malartic mine (“Canadian Malartic”). The
consolidation of Canadian Malartic would give Agnico Eagle
operational control during the remaining development period of the
Odyssey underground project and would provide the opportunity to
monetize future additional mill capacity at the mine, given Agnico
Eagle’s extensive operations and strategic land position in the
region. In addition to the 3-5% Odyssey net smelter return (“NSR”)
royalty, a $0.40 per tonne milling fee is payable to Osisko on ore
processed from any property that was not part of the Canadian
Malartic Property at the time of the sale of the mine in 2014.
On October 26th, Agnico Eagle reported that
construction and development activities at the Odyssey underground
project remain on schedule. Shaft sinking activities are expected
to commence in January 2023, with pre-commercial production from
the Odyssey South ramp expected in March 2023. In the third quarter
of 2022, ten diamond drill rigs were active at surface and four
rigs were active underground. An expanded drill program is focused
on infill drilling at Odyssey South, on drill testing the Odyssey
Internal zones and on infill and step-out drilling at East Gouldie.
A recent intercept at Odyssey South yielded 5.7 grams per tonne
(“g/t”) gold over 21.8 meters at 367 meters depth. At East Gouldie,
the drilling in the core of the deposit continues to return wide,
high-grade intersections, with recent results including 4.6 g/t
gold over 50.7 meters at 1,537 meters depth. Step-out drilling to
the west of East Gouldie continues to test the western extension
and filling the gap between East Gouldie and the Norrie Zone, with
a recent intercept of 4.2 g/t gold over 12.8 meters at 1,331 meters
depth in an area approximately 100 meters above the Norrie Zone and
670 meters west of the current East Gouldie mineral resources
(Figure 1).
At a conference in Toronto in November, Agnico
Eagle highlighted that recent drilling at Odyssey has extended East
Gouldie to the west by ~670 meters and to the east at depth by
~500 meters, to more than 1,700 meters from the current
mineral resources, demonstrating significant resource growth
potential. Recent drilling suggests the potential connection of the
East Gouldie deposit and the Norrie Zone along strike (Figure 1).
The presentation highlighted that, while still in the concept
phase, there is the potential for an additional 150,000-250,000
ounces of annual gold production from Odyssey Extension (West or
East) based on the assumption of a second shaft producing 10,000 to
15,000 tonnes per day at 2.5 g/t to 2.75 g/t gold (link).
Figure 1: Canadian Malartic Mine – Composite
Longitudinal Section is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/693a19f5-8515-4a5c-8985-0e8cd5bf276b
Mantos Blancos Expansion (100% Silver
Stream)
On October 31st, Capstone Copper Corp.
(“Capstone”) announced that ramp up activities at the Mantos
Blancos Concentrator Debottlenecking Project (“MB-CDP”) continued
during the third quarter with increased focus on achieving
operational stability of the auxiliary systems such as the
electrical and tailing systems. Ramp-up in production has been
slower than initially expected, however, mill throughput continues
to improve and the plant averaged above design throughput level for
20 of 27 planned operating days in October.
Delivery of refined silver to OBL under the
silver stream occurs approximately two months post production at
the Mantos Blancos mine. As a result, Osisko anticipates starting
to fully benefit from the expansion in early 2023.
As part of MD-CDP Phase II, Capstone is
analyzing the potential to increase throughput of the plant to 10.0
million tonnes per year (from 7.3 million tonnes per year) using
existing underutilized ball mills and process equipment. Capstone
is also evaluating the potential to extend the life of copper
cathode production. The Advanced Basic Engineering Study is
expected to be released in the first half of 2023, and the
Environmental DIA application was submitted in August 2022.
Victoria Gold Update (5% NSR
Royalty)
Production throughout 2022 at Eagle was affected
by slower than expected ramp up to steady state primarily due to
mechanical availability of the crushing and conveying circuit being
lower than expected. The primary reason for the lower mechanical
availability was the conveyor belt failure late in the third
quarter resulting in almost three weeks of downtime. Based on
improved operational and maintenance staffing and protocols, it is
expected that gold production will be higher in 2023.
Drilling over the past two years has focused on
testing areas below and adjacent to the current pit at Eagle.
Results have extended mineralization to 850 meters depth
(previously 350 meters depth) and 500 meters to the west
along strike. A new technical report, including an updated mineral
resource estimate, is expected early in 2023 on both Eagle and the
Raven deposit.
Seabee (3% NSR Royalty)
On December 12th, SSR Mining Inc. (“SSR”)
reported exploration results from Seabee including both near-mine
resource development drilling adjacent to current underground
infrastructure at the Santoy Mine Complex, as well as more regional
activity across the Seabee property. Notably, the regional
exploration activity included drilling at the Porky Main and Porky
West targets, with results to-date returning broad intercepts of
near-surface mineralization potentially amenable to open pit mining
in the future.
Additional regional exploration included the
initial delineation of the Shane target, which remains open along
strike and is located adjacent to the Santoy Road that connects the
mine to the Seabee processing facility. Results at Shane included
54.3 g/t gold over 4.6 meters. Given the number of prospective
targets at Seabee, SSR expects to expand their exploration program
at the mine again in 2023, to aggressively advance these
opportunities towards potential development.
Island Gold (1.38-3% NSR
Royalty)
On November 29th, Alamos Gold Inc. (“Alamos”)
reported results from surface and underground exploration drilling
at the Island Gold mine, further extending high-grade gold
mineralization in Island West, Island East and at depth (Figure 2)
and highlighting the significant upside potential; not only
laterally and at depth, but within newly defined sub-parallel
structures. The majority of highlighted drill intersections are
within Osisko’s claims of 2% or 3% NSR royalty, which is a higher
NSR royalty than current production. As of November 25th, a total
of 28,174 meters of surface directional drilling, 17,984 meters of
underground exploration drilling, and 9,707 meters of regional
surface exploration drilling has been completed at the Island Gold
Mine.
At Island West, high-grade mineralization has
been extended 225 meters west of existing Mineral Reserves and
Resources. At the Island West Hanging Wall Zones, high-grade gold
mineralization was intersected within newly defined sub-parallel
zones in the hanging wall (B, G, and G1 zones). These sub-parallel
zones are within proximity of existing underground infrastructure
and represent a significant opportunity to add near mine Mineral
Reserves and Resources. At Island East Lower, high-grade gold
mineralization further extended down-plunge from the large
high-grade Inferred Mineral Resource block in the lower part of
Island East which contained 2.0 million ounces (3.96 million tonnes
grading 15.48 g/t gold) as of December 31, 2021. At Island Main,
high-grade gold mineralization extended 160 meters below Inferred
Mineral Resources (MH30-02), representing one of the deepest
intersections to date at a vertical depth of 1,666 meters. This
highlights the significant opportunity for further high-grade
Mineral Reserve and Resource additions with the deposit open
laterally and at depth across the currently defined 2 kilometers
strike.
Figure 2: Island Gold – Long Section
Highlighting Exploration Drilling Results is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/1765ab40-642f-46c6-811e-c95fe46aeb4f
Lamaque (1% NSR Royalty)
On December 5th, Eldorado published its updated
mineral resource and reserve estimates having an effective date of
September 30, 2022. Lamaque’s Proven and Probable reserves include
4.3 million tonnes of 6.62 g/t gold for 985,000 ounces, which
represented a 10% year-over-year decline (or a 7% increase net of
annual depletion).Eldorado plans to spend ~55% of their 2022
exploration budget ($44 million to $48 million) in Canada.
Approximately 112,000 meters of drilling is planned with a focus on
brownfields opportunities within the Lamaque/Bourlamaque
properties, including exploration drift and resource conversion at
Ormaque and resource conversion of C6 and C7 at Lower Triangle.
Eldorado has 28,000 drill meters dedicated to the Bourlamaque
property, where Osisko has a 2.5% NSR royalty.
Windfall Gold Project (2-3% NSR
Royalty)
On December 8th, Osisko Mining Inc. (“Osisko
Mining”) announced that it had signed a binding term sheet with
Miyuukaa Corp. (“Miyuukaa”), a wholly-owned corporation of the Cree
First Nation of Waswanipi, with respect to the construction of
proposed transmission facilities and the transport of hydroelectric
power to the Windfall project. Miyuukaa will finance, build, own
and operate a 69 kV dedicated transmission line that will transport
hydroelectricity to the Windfall project minimizing the
environmental footprint.
On November 28th, Osisko Mining delivered a
positive step forward for the Windfall gold project in Québec with
the release of feasibility study results highlighting full year
average production of 306,000 ounces of gold at an average fully
diluted grade of 8.1 g/t gold, an after-tax NPV of $1.2 billion at
a 5% discount rate and IRR of 34%. Osisko Mining anticipates
completion of the EIA study and commencement of the permitting
process in Q1 2023. Project financing plans are expected to be
announced in the first half of 2023 with a production decision in
early 2024.
On October 18th, Osisko Mining announced a new
regional exploration program on its Urban-Barry gold project
located in the Abitibi region in Québec. The program, to begin in
early 2023, will focus largely on areas outside the Windfall gold
deposit and will start with 10,000 meters of drilling, and induced
polarization geophysical surveys. Near deposit exploration targets
include a high-potential exploration area identified 1.5 kilometers
east-northeast of the Windfall deposit and on previously identified
showings, including Golden Bear and Fox, which are parallel to the
main Windfall deposit.
Cariboo Gold Project (5% NSR
Royalty)
On January 3rd, 2023, Osisko Development Corp.
(“Osisko Development” or “ODV”) announced results from a
feasibility study on the Cariboo Gold Project (“Cariboo”). Results
highlighted a scalable project with a base case scenario producing
an average of approximately 163,695 ounces of gold annually over a
12-year mine life (1.87 million ounces of cumulative gold
production) at an average diluted head grade of 3.78 g/t gold.
Initial production (“Phase 1”) for the first three years
contemplates a 1,500 tonnes per day operation yielding
approximately 72,501 ounces of gold per year. Concurrently,
underground development will advance to ramp up operations to 4,900
tonnes per day in year four, increasing annual production to
approximately 193,798 ounces of gold per year in Phase 2. The
project delivers a 20.7% IRR and an after-tax NPV of $502 million
at a 5% discount rate and US$1,700 per ounce gold price. The
feasibility study utilized initial Proven and Probable reserves of
16.7 million tonnes at an average grade of 3.78 g/t gold for a
total of 2.03 million ounces of gold.
ODV remains on track for completing the
Environmental Assessment process early in in the second quarter of
2023, anticipates receiving final permits by the end of 2023, with
initial production expected in 2024.
Tintic Project (2.5% Metals
Stream)
On November 30th, Osisko Development announced
sampling results from its ongoing underground exploration program
at its Trixie test mine (“Trixie”). Assay highlights on 702 chip
samples, from 177 mine faces, included the high grade result of
4,757 g/t gold and 528 g/t silver over 1.22 meters. Approximately
7,315 meters of surface reverse circulation drilling and 1,274
meters of underground diamond drilling has been completed to
November 15, 2022, which, together with the continuous face and
back sampling results, will support the completion of an initial
mineral resource estimate expected in the first quarter of
2023.
AK Deposit (2% NSR Royalty)
On October 26th, Agnico Eagle reported that an
assessment is underway to evaluate the Amalgamated Kirkland Deposit
(“AK Deposit” or “AK”) as a potential ore source for its Macassa
mine. At a recent conference in Toronto, Agnico Eagle highlighted
the potential for the AK Deposit to produce
30,000-50,000 ounces of gold starting in 2024. The exploration
ramp into the AK Deposit was completed in the third quarter of
2022. An infill drilling program from underground is underway, with
9,983 meters completed in 75 holes by the end of the third quarter
of 2022. Recent results from infill drilling at AK include a
highlight intercept of 30.7 g/t gold over 3.6 meters at 64 meters
depth. Further expansion potential of the AK Deposit is now being
assessed, as elimination of the property boundaries from the merger
with Kirkland Lake simplifies targeting and exploration in the
eastern extension of the deposit.
Upper Beaver (2% NSR
Royalty)
On October 26th, Agnico Eagle reported that work
continues on the engineering for an exploration shaft and the
potential to use existing Kirkland Lake Camp equipment and
infrastructure to reduce capital expenditures and operating costs
at the Upper Beaver project. Several development scenarios for
Upper Beaver are currently being evaluated.
At a recent conference in Toronto, Agnico Eagle
highlighted the potential for Upper Beaver to produce
150,000-250,000 ounces of gold as early as 2027. Upper Beaver
currently hosts Proven and Probable reserves of 7.9 million
tonnes at 5.43 g/t gold for 1.4 million ounces, Measured and
Indicated resources of 3.6 million tonnes at 3.45 g/t gold for
403,000 ounces and Inferred resources of 8.7 million tonnes at
5.07 g/t gold for 1.4 million ounces.
Cascabel (0.6% NSR Royalty)
On November 23rd, SolGold announced that
investors, including Jiangxi Copper (Hong Kong) Investment Company
Limited (“Jiangxi”), invested US$36 million into the company. Post
the financing, Jiangxi owns approximately 6.3% of SolGold’s
outstanding shares. Jiangxi Copper Company Limited, the parent
company of Jiangxi, is one of the largest global producers of
refined copper. The investment strengthens SolGold’s balance sheet
and signifies another strong endorsement for SolGold and the
Cascabel project.
SolGold is currently undertaking a strategic
review process to maximize shareholder value, including a review of
financing alternatives, the spin out of non-core assets and/or a
direct or indirect sale of an interest in Cascabel as well as
opportunities to de-risk the project, reduce costs and improve
overall economics.
Marimaca Copper (1% NSR
Royalty)
On December 15th, Marimaca Copper Corp.
(“Marimaca”) announced a high-grade primary sulphide intercept from
hole MAD-22. The full drill hole intersected 240 meters at 1.01%
Total Copper (“CuT”) from surface in two separate zones of oxide
and primary sulphide. Sulphide highlights include 92 meters at
2.11% CuT from 140 meters, including 22 meters at 5.27% CuT from
204 meters (Figure 3). While previous drilling into the down-dip
geophysical targets, identified in 2020 and 2021, intersected
additional mixed and secondary sulphides at depth, MAD-22
represents the first significant primary sulphide intersection to
date and could represent a primary high grade feeder structure as
interpreted in Marimaca’s geological model for the deposit.
On November 7th, Marimaca announced it had
entered into a water option agreement to secure future water supply
required for the Marimaca Copper Project. The option will allow
Marimaca to advance final project permitting and technical studies,
including water pipeline studies that are already underway.
On October 13th, Marimaca announced an updated
resource update for the Marimaca Oxide Deposit (“MOD”), which
demonstrated significant resource growth over the 2019 estimate and
could support a potential production rate higher than outlined in
the 2020 PEA. The update highlighted a 98% growth in Measured and
Indicated resources to 139.6 million tonnes at 0.48% CuT
(0.30% Soluble Copper (“CuS”)) for 665,000 tonnes of contained
copper and a 92% growth in Inferred resources to 82.7 million
tonnes at 0.39% CuT (0.16% CuS) for 323,000 tonnes of contained
copper. Given the increase in resources, Marimaca will be examining
50,000 tonne and 60,000 tonne per year copper cathode
production cases versus the 36,000 tonne per year average in
the 2020 PEA. A definitive feasibility study on the MOD is planned
for the second half of 2023 or early 2024.
Figure 3: Marimaca – East West
Cross Section Looking North, Highlighting hole MAD-22 within a
modelled magnetic anomaly is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/e67f9a14-d960-461c-b9ba-ea818d34828e
Hermosa (1% NSR Royalty)
On October 24th, South32 Limited (“South32”)
announced that the feasibility study for the Taylor Deposit remains
on-track to support a final investment decision in mid-2023. Growth
capital expenditure at the Hermosa project was US$46M during the
September 2022 quarter, with US$290M expected to be spent in 2023.
Dewatering is a critical path item which will enable access to both
the Taylor and Clark orebodies. South32 progressed drilling of the
first two dewatering wells and construction of the second water
treatment plant, which remains on-track for commissioning in the
June 2023 quarter.
The selection phase of the Clark pre-feasibility
study was expected to be complete by the end of 2022. Subsequent to
the third quarter, South32 commenced phase two metallurgical test
work and bulk sample collection to support pilot plant production
at the Clark deposit from mid 2023. South32 continues to evaluate
options to accelerate the development pathway for Clark, supported
by the decision of the United States Government to invoke the
Defense Production Act for the production of critical minerals
including manganese, and ongoing discussions with potential
customers and end-users of battery-grade manganese.
Patriot Battery Metals (2% NSR Royalty
on Lithium)
On December 19th, Patriot Battery Metals Inc.
(“Patriot”) released metallurgical test results which showed 79%
recovery to a 5.8% Li2O concentrate using dense media separation
alone.
On December 13th, Patriot reported results from
twelve holes from the CV5 Pegmatite. Osisko’s NSR royalty covers
the majority of known pegmatite bodies on the property. Results
returned some of the highest individual lithium grades to date and
included 113.4 meters at 1.61% Li2O including 38 meters at 2.17%
Li2O. Drilling continues to extend mineralization to the
east-northeast, flanked by several secondary lenses, traced over a
strike length of at least 2,200 meters. Mineralization remains open
in all directions with wide widths and strong grades encountered
along the currently defined length. A winter/spring drill program
is planned to commence in early-January with three rigs already at
site, and an additional two rigs scheduled to mobilize in early
February. The primary objectives of the drill program are to
further delineate the extent of the CV5 Pegmatite, as well as
infill drilling to improve the geological model to achieve
Indicated resource confidence to support a subsequent
Prefeasibility Study. A maiden resource estimate is anticipated in
the first half of 2023.
WKP (2% NSR Royalty)
On December 13th, OceanaGold Corporation
(“Oceana”) announced results from their 2022 resource conversion
program at Wharekirauponga (“WKP”). Since the March 2022 mineral
resource estimate, 5,829 meters were drilled at WKP, predominantly
targeting resource conversion at the EG Vein Zone, in addition to a
further 679 meters supporting geohydrological and geotechnical
studies. Results are anticipated to increase confidence in the
geological and grade continuity of the deposit.
Resource conversion and extensional drilling
continues with approximately 2,500 meters scheduled for the first
half of 2023 in support of a pre-feasibility study expected to be
completed towards the end of 2023. An Indicated Resource of 1.1
million gold ounces has been determined as the optimal resource
size target for defining the initial development plans for the
project study work.
Tocantinzinho (0.75% NSR
Royalty)
On November 22nd, G Mining Ventures (“GMIN”)
provided an update on the Tocantinzinho Project (“TZ”) in Brazil
highlighting that the project remains on track and on budget for
commercial production in the second half of 2024. Detailed
engineering is 43% complete and overall project procurement has
progressed to 73% completion.
On October 18th, GMIN announced results from
delineation drilling at TZ. The program confirmed the continuity of
higher-grade gold in the main pit area (continuous width of close
to 200 meters and to a depth of 400 meters), confirmed that
mineralization extends below the existing pit shell and increased
definition areas to be mined during pre-production. Highlights
confirming a high-grade core include 193.6 meters of 1.48 g/t gold
including 12.8 meters of 4.59 g/t gold and 144.7 meters of 1.70 g/t
gold including 13.7 meters of 2.41 g/t gold. Highlight intercepts
outside the feasibility pit shell include 72.1 meters of 1.05 g/t
gold including 14.8 meters of 3.45 g/t gold.
Regulus Resources (up to 1.5% NSR
Royalty on AntaKori)
On December 22nd, Regulus Resources Inc.
(“Regulus”) announced a US$15 million strategic investment by
Nuton, a Rio Tinto Venture. The investment bolsters Regulus’
balance sheet and represents another strong endorsement of the
AntaKori project. Upon closing, Nuton will own an ~16.5% interest
in Regulus. Regulus and Nuton will jointly undertake copper
sulphide leach testing at AntaKori utilizing Nuton’s technologies.
The Nuton technologies have the potential to process
arsenic-bearing copper sulphides with less impact on the
environment and water resources than traditional concentrator
processing.
ADDITIONAL HIGHLIGHTS
1) Agnico Eagle
reported that work commenced at Akasaba West open pit project in
September 2022 with mobilization of main contractor and initiation
of clearing activities (2.5% NSR royalty)
2) Western Copper and
Gold announced Rio Tinto exercised its right to extend certain
rights under the investor rights agreement (2.75% NSR royalty)
3) First Majestic
announced strong Q3 production from the Ermitaño mine, continued
mill improvements to enhance recoveries (2% NSR royalty)
4) Taseko Mines
announced highest quarterly mill throughput at Gibraltar since
expansion and see potential for continued increases (75% silver
stream)
5) Osisko Development
announced the sale of 7,358 ounces of gold from the San Antonio
stockpile processing in 2022 and 1.1 million tonnes at an average
grade of 0.58 g/t gold have been placed on the pad. ODV is awaiting
receipt of change of use land and EA permits from the Mexican
government while it continues its efforts on stockpile
processing.
6) Highland Copper
announced selection of G Mining Services to prepare a PEA on
combined scenario for Copperwood and White Pine Projects (1.5% NSR
royalty & 100% silver NSR royalty)
7) Osisko Metals
announced definition drilling at Pine Point including 9 meters of
10.51% Zinc and 3.52% Lead, 11.5 meters of 9.37% Zinc and
4.99% Lead and 12 meters of 25.80% Zinc and 6.84% Lead (3% NSR
royalty)
8) Group6 announced
updated project economics for the Dolphin Tungsten Mine including
an increase in the NPV8% to A$300 million from A$231 million and
first tungsten concentrate production on track for Q1 2023 (1.5%
GRR)
9) Shanta Gold
continues to hit high-grade gold at the West Kenya Project
including 721 g/t gold over 0.6 meters, 155 g/t gold over 2.8
meters and 153 g/t gold over 2.2 meters (2% NSR royalty)
10) O3 Mining filed
the Initial Project Description at the Federal and Provincial
Levels for permitting of the Marban Project (0.435-2% NSR
royalty)
11) Calibre Mining
intersected 5.5 g/t gold over 3 meters and suggested that new
results indicate there could be a large, untested Carlin-style
mineral system at depth (4% NSR royalty over most of Gold Rock)
12) Westhaven Gold
intersected 1.95 g/t gold and 5.61 g/t silver over 25 meters at
Shovelnose (2% NSR royalty)
13) Pacific Ridge
Exploration intersected 278 meters of 0.72 g/t Au, 0.14% Cu and
0.95 g/t Ag at the Kliyul copper-gold porphyry project (1.5% NSR
royalty)
14) Eagle Mountain
Mining intersected 1.3% Cu, 13.63 g/t Ag, and 0.18 g/t Au over 29.7
meters at Talon (3% NSR royalty)
15) Poseidon Nickel
released a feasibility study on the Black Swan Project which
includes 300,000 tonnes of 4.7% nickel for 13,000 tonnes of nickel
metal from Silver and Golden Swan. A final investment decision is
expected in 2023 with a concentrate production possible in 2024
(1.75% NSR royalty on base metals on Golden Swan and Silver
Swan).
Q4 AND YEAR-END 2022 RESULTS AND CONFERENCE CALL
DETAILS
Osisko provides notice of the fourth quarter and
annual 2022 results and conference call details.
Results Release: |
Thursday, February 23rd, 2023 after market close |
Conference Call: |
Friday, February 24th, 2023 at 10:00 am ET |
Dial-in Numbers: |
North American Toll-Free: 1 (888) 886 7786Local and International:
1 (416) 764 8658Conference ID: 04967722 |
Replay (available until Friday,
March 24th at 11:59 pm ET): |
North American Toll-Free: 1 (877) 674 7070Local and International:
1 (416) 764 8692Playback Passcode: 967722# |
|
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 and year-end procedures, the anticipated financial
information presented in this press release is preliminary, subject
to quarter-end and year-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 December 31 |
|
Years ended December 31 |
|
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
|
|
|
|
|
Gold(i) |
$1,727 |
$1,796 |
|
$1,800 |
$1,799 |
Silver(ii) |
$21.17 |
$23.33 |
|
$21.73 |
$25.14 |
|
|
|
|
|
|
Exchange rate
(US$/Can$)(iii) |
|
1.3578 |
|
1.2603 |
|
|
1.3013 |
|
1.2535 |
(i) The
London Bullion Market Association’s pm price in U.S.
dollars. (ii) The
London Bullion Market Association’s price in U.S.
dollars. (iii) Bank
of Canada daily rate.
(2) Non-IFRS 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 less cost of sales
(excluding depletion). Cash margin (in percentage) represents the
cash margin (in dollars) divided by revenues.
|
|
Three months endedDecember 31, 2022 |
|
Year endedDecember 31, 2022 |
|
|
|
|
|
|
Revenues |
$61,914 |
|
|
$217,809 |
|
|
Less: Cost of sales (excluding depletion) |
|
($4,732 |
) |
|
|
($16,076 |
) |
|
Cash margin (in dollars) |
$57,182 |
|
|
$201,733 |
|
|
Cash margin (in percentage of revenues) |
|
92 |
% |
|
|
93 |
% |
|
|
(3) In the case of the CSA
silver stream, silver ounces were converted to gold equivalent
ounces by multiplying the average payable silver ounces produced
annually at CSA by the LBMA Silver Price on December 22, 2022 and
dividing by the LBMA Gold Price PM as of December 22,
2022.(4) In the case of the CSA copper stream,
copper tonnes were converted to gold equivalent ounces by
multiplying the average payable copper tonnes produced annually at
CSA by the LME Official Copper Settlement Price on December 22,
2022 and dividing by the LBMA Gold Price PM as of December 22,
2022. Assumed Buy-Down Option is not exercised.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”).
In this press release, Osisko relies on
information publicly disclosed by other issuers and third parties
pertaining to its assets and, therefore, assumes no liability for
such third-party public disclosure.
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 175
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. These forward‐looking
statements, by their nature, may require Osisko to make or rely on
certain assumptions and necessarily involve known and unknown risks
and uncertainties that could cause actual results to differ
materially from those expressed or implied in these forward‐looking
statements. Forward‐looking statements are not guarantees of
performance. These forward‐looking statements, may involve,
but are not limited to, statements with respect to future events or
future performance, the realization of the anticipated benefits
deriving from Osisko’s investments, the general performance of the
assets of Osisko, and the results of exploration, development and
production activities as well as expansions projects relating to
the properties in which Osisko holds a royalty, stream or other
interest. Words such as “may”, “will”, “would”, “could”, “expect”,
“suggest”, “appear”, “believe”, “plan”, “anticipate”, “intend”,
“target”, “estimate”, “continue”, or the negative or comparable
terminology, as well as terms usually used in the future and the
conditional, are intended to identify forward‐looking statements.
Information contained in forward‐looking statements is based upon
certain material assumptions that were applied in drawing a
conclusion or making a forecast or projection, including, without
limitation, management’s perceptions of historical trends; current
conditions; expected future developments; the ongoing operation of
the properties in which Osisko holds a royalty, stream or other
interest by the operators of such properties in a manner consistent
with past practice; the accuracy of public statements and
disclosures made by the operators of such underlying properties; no
material adverse change in the market price of the commodities that
underlie the asset portfolio; no adverse development in respect of
any significant property in which Osisko holds a royalty, stream or
other interest; the accuracy of publicly disclosed expectations for
the development of underlying properties that are not yet in
production; and the absence of any other factors that could cause
actions, events or results to differ from those anticipated,
estimated or intended. Osisko considers its assumptions to be
reasonable based on information currently available, but cautions
the reader that their assumptions regarding future events, many of
which are beyond the control of Osisko, may ultimately prove to be
incorrect since they are subject to risks and uncertainties that
affect Osisko and its business. Such risks and uncertainties
include, among others, that the financial information presented in
this press release is preliminary and could be subject to
adjustments, the successful continuation of operations underlying
the Corporation’s assets, the performance of the assets of Osisko,
the growth and the benefits deriving from its portfolio of
investments, risks related to the operators of the properties in
which Osisko holds a royalty, stream or other interest, including
changes in the ownership and control of such operators; risks
related to exploration, development, permitting, infrastructure,
operating or technical difficulties on any of the properties in
which Osisko holds a royalty, stream or other interest, the
influence of macroeconomic developments as well as the impact of
and the responses of relevant governments to the COVID-19 outbreak
and the effectiveness of such responses. In this press release,
Osisko relies on information publicly disclosed by other issuers
and third parties pertaining to its assets and, therefore, assumes
no liability for such third party public disclosure.
For additional information with respect to these
and other factors and assumptions underlying the forward‐looking
statements made in this press release, see the section entitled
“Risk Factors” in the most recent Annual Information Form of Osisko
which is filed with the Canadian securities commissions and
available electronically under Osisko’s issuer profile on SEDAR at
www.sedar.com and with the U.S. Securities and Exchange Commission
and available electronically under Osisko’s issuer profile on EDGAR
at www.sec.gov. The forward‐ looking statements set forth
herein reflect Osisko’s expectations as at the date of this press
release and are subject to change after such date. Osisko disclaims
any intention or obligation to update or revise any forward‐looking
statements, whether as a result of new information, future events
or otherwise, other than as required by law.
Osisko Gold Royalties (NYSE:OR)
Historical Stock Chart
From May 2023 to Jun 2023
Osisko Gold Royalties (NYSE:OR)
Historical Stock Chart
From Jun 2022 to Jun 2023