Osisko Gold posts record royalty revenue in Q4
Osisko Gold Royalties Ltd. (OR-TSX, OR-NYSE) has released a update on its fourth quarter 2024 preliminary deliveries, revenues and cash margin, as well as on its cash and debt positions as of December 31, 2024
Osisko is an intermediate precious metal royalty company with a focus on the Americas. The company holds a North American focused portfolio of over 185 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its cornerstone asset, a 5.0% net smelter return royalty on the Canadian Malartic Complex in Quebec, one of Canada’s largest gold mines.
Osisko earned 20,005 attributable gold equivalent ounces (GEOs) in the fourth quarter of 2024, for a total of 80,740 GEOs in 2024, thereby achieving the midpoint of the company’s revised GEO delivery guidance range of 77,000 to 83,000 GEOs. Osisko’s year-over-year GEOs earned decreased by 14% in 2024 due to the stoppage of operations at the Renard diamond mine in Quebec in the fourth quarter of 2023 and with the stoppage of the Eagle Gold Mine in the Canadian Yukon as of June 24, 2024, following a stope failure at its heap leach pad facility.
Osisko recorded record preliminary revenues from royalties and streams of $79.3 million during the fourth quarter, and preliminary cost of sales (excluding depletion) of $3.1 million, resulting in a record quarterly cash margin of approximately $76.3 million or 96.2%.
For the full year 2024, preliminary revenues from royalties and streams reached a record $262.2 million, and preliminary cost of sales (excluding depletion) are estimated at $9.3 million, resulting in a record annual cash margin of $252.9 million or 96.5%.
As at December 31, 2024, Osisko’s cash position was approximately $85 million.
Osisko was in the news recently when it completed an amendment to its silver stream associated with the Gibraltar copper mine in British Columbia, which is operated by a subsidiary of Taseko Mines Ltd. [TKO-TSE]
Osisko and Taseko have amended the Silver Stream to increase Osisko’s attributable silver percentage by 12.5% to 100%. Further to this, Osisko and Taseko have also extended the step-down silver delivery threshold to 6.81 million ounces delivered, accounting for Osisko’s additional silver ownership.
In exchange for these amendments, Osisko has paid an additional deposit amount of US$12.7 million to Taseko. These amendments were concluded further to the announcement by Taseko back in March, 2024, that it had entered into a definitive agreement to consolidate a 100% interest in Gibraltar by acquiring the remaining 12.5% interest from Dowa Metals & Mining Ltd. and Furukawa Co. Ltd.
Osisko shares edged up 0.038% or $0.01 to $26.60. The shares trade in a 52-week range of $29.57 and $17.41.