Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX
& NYSE) today announced its consolidated financial results for
the first quarter of 2023. Amounts presented are in Canadian
dollars, except where otherwise noted.
Highlights – First Quarter of 2023
- 23,111 GEOs1
earned, an increase of 27% over the first quarter of 2022 (Q1 2022
- 18,251);
- Revenues from
royalties and streams of $59.6 million (Q1 2022 - $50.7
million);
- Cash flows
generated by operating activities2 of $45.5 million (Q1 2022 -
$40.5 million);
- Cash margin3 of
$55.5 million or 93% (Q1 2022 – $47.5 million or 94%)
- Net earnings2 of
$20.8 million, $0.11 per basic share (Q1 2022 – $16.8 million,
$0.10 per basic share);
- Adjusted
earnings3 of $32.6 million, $0.18 per basic share (Q1 2022 – $24.8
million, $0.15 per basic share);
- Repayment of
$15.0 million under the revolving credit facility;
- Increase in the
cash balance to $119.1 million as at March 31, 2023; and
- Declaration of a
quarterly dividend of $0.055 per common share paid on April 14,
2023 to shareholders of record as of the close of business on March
31, 2023.
Sandeep Singh, President and CEO of Osisko
commented: “We had a good start to 2023 and expect growth in
deliveries over the year as we reap the benefits of ramp-ups at
some of our core assets, in addition to the anticipated near-term
closing of the CSA transaction, positioning Osisko for another
record year.
The catalysts in our portfolio continue to
intensify. Agnico Eagle’s consolidation of the Canadian Malartic
mine provides multiple avenues for further production upside as it
studies ways to maximize mill throughput. Further, the partnership
between Gold Fields and Osisko Mining on the Windfall project is a
tremendous outcome that de-risks an important asset in our
portfolio. We congratulate the Osisko Mining team on a great
result. More globally, our partners continue to unlock significant
value across our shared asset base with an average of over 1.1
million meters drilled per year over the past six years. This value
is daylighting itself across the entire portfolio highlighting the
free upside embedded within our asset base.”
Subsequent to March 31, 2023
- Declaration of a
quarterly dividend of $0.060 per common share (an increase of 9.1%)
payable on July 14, 2023 to shareholders of record as of the close
of business on June 30, 2023.
Board Renewal
The Corporation is pleased to announce that
Mr. Norman MacDonald is a new independent candidate for
election at its upcoming Annual Meeting of Shareholders to be held
on June 7, 2023. Mr. MacDonald has over 25 years of
experience working at natural resource focused institutional
investment firms. Mr. Charles E. Page, who is
nearing the end of his tenure as per the Corporation’s policies,
will not be standing for re-election. The members of the
Board of Directors and management would like to express their
appreciation to Mr. Page for his insight and valuable
contribution over the years.
Q1 2023 RESULTS CONFERENCE CALL AND WEBCAST
DETAILS
Osisko provides notice of first quarter 2023
results and webcast and conference call details.
Results Release: |
Wednesday, May 10th, 2023 after market close |
Conference Call: |
Thursday, May 11th, 2023 at 10:00 am ET |
Dial-in Numbers: |
North American Toll-Free: 1 (888) 886 7786Local and International:
1 (416) 764 8658Conference ID: 02416869 |
Webcast link: |
https://viavid.webcasts.com/starthere.jsp?ei=1608666&tp_key=f4d17ca2be |
Replay (available until Sunday, June 11th at 10:00 am ET): |
North American Toll-Free: 1 (877) 674 7070Local and International:
1 (416) 764 8692Playback Passcode: 416869# |
|
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 180 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, one
of Canada’s largest gold mines.
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 x105
htaylor@osiskogr.comNotes:
(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, |
|
|
2023 |
2022 |
|
|
|
|
|
Gold(i) |
$1,890 |
$1,877 |
|
Silver(ii) |
$22.55 |
$24.01 |
|
|
|
|
|
Exchange rate
(US$/Can$)(iii) |
1.3525 |
1.2662 |
|
(i) |
The London
Bullion Market Association’s pm price in U.S. dollars. |
|
(ii) |
The London Bullion Market Association’s price in U.S.
dollars. |
|
(iii) |
Bank of Canada daily rate. |
(2) From continuing operations(3) 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 (i) cash margin (in dollars and in percentage), (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 continuing operations less cost of sales (excluding
depletion). Cash margin (in percentage of revenues) represents the
cash margin (in dollars) divided by revenues from continuing
operations.
|
Three months endedMarch 31, |
|
|
2023 |
|
|
2022 |
|
|
$ |
|
|
$ |
|
|
|
|
|
Royalty
interests |
|
|
|
Revenues |
39,178 |
|
|
34,989 |
|
Less: cost of sales (excluding
depletion) |
(135 |
) |
|
(94 |
) |
Cash margin (in dollars) |
39,043 |
|
|
34,895 |
|
|
|
|
|
Depletion |
(6,848 |
) |
|
(6,855 |
) |
Gross
profit |
32,195 |
|
|
28,040 |
|
|
|
|
|
Stream
interests |
|
|
|
Revenues |
20,409 |
|
|
15,700 |
|
Less: cost of sales (excluding
depletion) |
(3,906 |
) |
|
(3,087 |
) |
Cash margin (in dollars) |
16,503 |
|
|
12,613 |
|
|
|
|
|
Depletion |
(6,647 |
) |
|
(4,443 |
) |
Gross
profit |
9,856 |
|
|
8,170 |
|
|
|
|
|
Royalty and stream
interestsTotal cash margin (in dollars) |
55,546 |
|
|
47,508 |
|
Divided by: total
revenues |
59,587 |
|
|
50,689 |
|
Cash margin (in percentage of
revenues) |
93.2 |
% |
|
93.7 |
% |
|
|
|
|
Total – Gross
profit |
42,051 |
|
|
36,210 |
|
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 assets, unrealized gain (loss) on investments, share of income
(loss) of associates, 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.
|
Three months ended March
31, |
|
|
2023 |
|
2022 |
|
(in thousands of dollars, except per share amounts) |
$ |
|
$ |
|
|
|
|
Net earnings from continuing operations |
20,848 |
|
16,804 |
|
|
|
|
Adjustments: |
|
|
Impairment of assets |
271 |
|
520 |
|
Foreign exchange loss (gain) |
18 |
|
(876 |
) |
Unrealized net (gain) loss on investments |
(2,097 |
) |
5,840 |
|
Share of loss (income) of associates |
6,145 |
|
(2,604 |
) |
Deferred income tax expense |
7,460 |
|
5,159 |
|
|
|
|
Adjusted earnings |
32,645 |
|
24,843 |
|
|
|
|
Weighted average number of common
shares outstanding (000’s) |
184,719 |
|
166,926 |
|
|
|
|
Adjusted earnings per basic
share |
0.18 |
|
0.15 |
|
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, (i) with respect to properties in which Osisko holds a
royalty, stream or other interest; risks related to: (a) the
operators of the properties, (b) timely development, permitting,
construction, commencement of production, ramp-up (including
operating and technical challenges), (c) differences in rate and
timing of production from resource estimates or production
forecasts by operators, (d) differences in conversion rate from
resources to reserves and ability to replace resources, (e) the
unfavorable outcome of any challenges or litigation relating title,
permit or license, (f) hazards and uncertainty associated with the
business of exploring, development and mining including, but not
limited to unusual or unexpected geological and metallurgical
conditions, slope failures or cave-ins, flooding and other natural
disasters or civil unrest or other uninsured risks; with respect to
external factors: (a) fluctuations in the prices of the commodities
that drive royalties, streams, offtakes and investments held by
Osisko, (b) fluctuations in the value of the Canadian dollar
relative to the U.S. dollar, (c) regulatory changes by national and
local governments, including permitting and licensing regimes and
taxation policies; regulations and political or economic
developments in any of the countries where properties in which
Osisko holds a royalty, stream or other interest are located or
through which they are held, (d) continued availability of capital
and financing and general economic, market or business conditions,
and (e) 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;
with respect to internal factors: (a) business opportunities that
may or not become available to, or are pursued by Osisko or (b) the
integration of acquired assets. The forward-looking statements
contained in this press release are based upon assumptions
management believes to be reasonable, including, without
limitation: the absence of significant change in the Corporation’s
ongoing income and assets relating to determination of its Passive
Foreign Investment Company ("PFIC”) status; the absence of any
other factors that could cause actions, events or results to differ
from those anticipated, estimated or intended and, with respect to
properties in which Osisko holds a royalty, stream or other
interest, (i) the ongoing operation of the properties by the owners
or operators of such properties in a manner consistent with past
practice and with public disclosure (including forecast of
production), (ii) the accuracy of public statements and disclosures
made by the owners or operators of such underlying properties
(including expectations for the development of underlying
properties that are not yet in production), (iii) no adverse
development in respect of any significant property, (iv) that
statements and estimates relating to mineral reserves and resources
by owners and operators are accurate and (v) the implementation of
an adequate plan for integration of acquired assets.
For additional information on risks,
uncertainties and assumptions, please refer to the most recent
Annual Information Form of Osisko filed on SEDAR at www.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 SheetsAs at March 31, 2023 and
December 31, 2022(Unaudited)
(tabular amounts expressed in thousands of
Canadian dollars)
|
March 31, |
|
|
December 31, |
|
|
2023 |
|
|
2022 |
|
|
$ |
|
|
$ |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
Cash |
119,084 |
|
|
90,548 |
|
Short-term investments |
1,644 |
|
|
- |
|
Amounts receivable |
8,871 |
|
|
11,700 |
|
Other assets |
3,201 |
|
|
2,546 |
|
|
132,800 |
|
|
104,794 |
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
Investments in associates |
318,460 |
|
|
319,763 |
|
Other investments |
72,184 |
|
|
73,504 |
|
Royalty, stream and other interests |
1,364,329 |
|
|
1,378,253 |
|
Goodwill |
111,204 |
|
|
111,204 |
|
Other assets |
9,763 |
|
|
8,783 |
|
|
2,008,740 |
|
|
1,996,301 |
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
3,811 |
|
|
6,825 |
|
Dividends payable |
10,160 |
|
|
10,121 |
|
Lease liabilities |
1,085 |
|
|
921 |
|
|
15,056 |
|
|
17,867 |
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
|
Lease liabilities |
7,688 |
|
|
6,701 |
|
Long-term debt |
134,370 |
|
|
147,950 |
|
Deferred income taxes |
92,564 |
|
|
86,572 |
|
|
249,678 |
|
|
259,090 |
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
Share capital |
2,087,576 |
|
|
2,076,070 |
|
Contributed surplus |
78,835 |
|
|
77,295 |
|
Accumulated other comprehensive income |
45,552 |
|
|
47,435 |
|
Deficit |
(452,901 |
) |
|
(463,589 |
) |
|
1,759,062 |
|
|
1,737,211 |
|
|
2,008,740 |
|
|
1,996,301 |
|
Osisko Gold Royalties
LtdConsolidated Statements of Income (Loss)For the three
months ended March 31, 2023 and 2022(Unaudited)
(tabular amounts expressed in
thousands of Canadian dollars, except per share amounts)
|
2023 |
|
|
2022 |
|
|
$ |
|
|
$ |
|
|
|
|
|
Revenues |
59,587 |
|
|
50,689 |
|
|
|
|
|
Cost of sales |
(4,041 |
) |
|
(3,181 |
) |
Depletion |
(13,495 |
) |
|
(11,298 |
) |
Gross
profit |
42,051 |
|
|
36,210 |
|
|
|
|
|
Other operating
expenses |
|
|
|
General and administrative |
(6,209 |
) |
|
(4,836 |
) |
Business development |
(1,496 |
) |
|
(1,421 |
) |
Operating
income |
34,346 |
|
|
29,953 |
|
Interest income |
2,063 |
|
|
1,108 |
|
Finance costs |
(2,870 |
) |
|
(5,926 |
) |
Foreign exchange gain |
19 |
|
|
818 |
|
Share of (loss) income of associates |
(6,145 |
) |
|
2,604 |
|
Other gains (Iosses), net |
1,826 |
|
|
(6,360 |
) |
Earnings before income
taxes |
29,239 |
|
|
22,197 |
|
Income tax expense |
(8,391 |
) |
|
(5,393 |
) |
Net earnings from
continuing operations |
20,848 |
|
|
16,804 |
|
Net loss from discontinued
operations |
- |
|
|
(22,333 |
) |
Net earnings
(loss) |
20,848 |
|
|
(5,529 |
) |
|
|
|
|
Net earnings (loss)
attributable to: |
|
|
|
Osisko Gold Royalties Ltd’s shareholders |
20,848 |
|
|
326 |
|
Non-controlling interests |
- |
|
|
(5,855 |
) |
Osisko Gold Royalties
LtdConsolidated Statements of Cash FlowsFor the three
months ended March 31, 2023 and 2022(Unaudited)
(tabular amounts expressed in
thousands of Canadian dollars)
|
2023 |
|
|
2022 |
|
|
$ |
|
|
$ |
|
|
|
|
|
Operating
activities |
|
|
|
Net earnings from continuing
operations |
20,848 |
|
|
16,804 |
|
Adjustments for: |
|
|
|
Share-based compensation |
2,289 |
|
|
1,750 |
|
Depletion and amortization |
13,754 |
|
|
11,573 |
|
Impairment of assets |
271 |
|
|
520 |
|
Finance costs |
123 |
|
|
1,698 |
|
Share of loss (income) of associates |
6,145 |
|
|
(2,604 |
) |
Change in fair value of financial assets at fair value through
profit and loss |
2,745 |
|
|
7,948 |
|
Net gain on dilution of investments |
(4,842 |
) |
|
(2,060 |
) |
Foreign exchange loss (gain) |
16 |
|
|
(876 |
) |
Deferred income tax expense |
7,460 |
|
|
5,159 |
|
Other |
(87 |
) |
|
(20 |
) |
Net cash flows provided by
operating activities before changes in non-cash working capital
items |
48,722 |
|
|
39,892 |
|
Changes in non-cash working
capital items |
(3,272 |
) |
|
615 |
|
Net operating cash flows provided
by continuing operations |
45,450 |
|
|
40,507 |
|
Net operating cash flows used by
discontinued operations |
- |
|
|
(16,897 |
) |
Net cash flows provided by
operating activities |
45,450 |
|
|
23,610 |
|
|
|
|
|
Investing
activities |
|
|
|
Acquisitions of short-term
investments |
(1,643 |
) |
|
- |
|
Acquisitions of investments |
(271 |
) |
|
(6,296 |
) |
Acquisitions of royalty and
stream interests |
- |
|
|
(9,290 |
) |
Net investing cash flows used by
continuing operations |
(1,914 |
) |
|
(15,586 |
) |
Net investing cash flows used by
discontinued operations |
- |
|
|
3,314 |
|
Net cash flows used in investing
activities |
(1,914 |
) |
|
(12,272 |
) |
|
|
|
|
Financing
activities |
|
|
|
Bought deal equity
financing |
- |
|
|
311,962 |
|
Share issue costs |
- |
|
|
(12,816 |
) |
Repayment of long-term debt, net
of discount on banker’s acceptances |
(13,463 |
) |
|
- |
|
Exercise of share options and
shares issued under the share purchase plan |
8,900 |
|
|
622 |
|
Normal course issuer bid purchase
of common shares |
- |
|
|
(4,879 |
) |
Dividends paid |
(9,753 |
) |
|
(8,723 |
) |
Withholding taxes on settlement
of restricted and deferred share units |
(456 |
) |
|
(424 |
) |
Other |
(212 |
) |
|
(214 |
) |
Net financing cash flows used by
continuing operations |
(14,984 |
) |
|
285,528 |
|
Net financing cash flows provided
by discontinued operations |
- |
|
|
37,137 |
|
Net cash flows provided by (used
in) financing activities |
(14,984 |
) |
|
322,665 |
|
|
|
|
|
Increase in cash before effects
of exchange rate changes |
28,552 |
|
|
334,003 |
|
|
|
|
|
Effects of exchange rate
changes on cash |
|
|
|
Continuing operations |
(16 |
) |
|
(92 |
) |
Discontinued operations |
- |
|
|
(159 |
) |
Net increase in
cash |
28,536 |
|
|
333,752 |
|
Cash – beginning of
period |
90,548 |
|
|
115,698 |
|
Cash – end of
period |
119,084 |
|
|
449,450 |
|
Osisko Gold Royalties (TSX:OR)
과거 데이터 주식 차트
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Osisko Gold Royalties (TSX:OR)
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