Home » **Success story**: Record results for 2023! More ounces than ever! Success story continues!

**Success story**: Record results for 2023! More ounces than ever! Success story continues!

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**Success story**: Record results for 2023!  More ounces than ever!  Success story continues!

Dear readers,

Royalty and streaming companies are essentially highly specialized financing companies that make upfront payments to mining companies in exchange for a share of the mine’s future production. The payment is fixed in advance, but the earnings are tied to the future price of gold, which has leverage on the price of gold. Further benefits arise when a mine is expanded or a new discovery is made locally, as the royalty is tied to a percentage of mine production.

And because a company like Osisko Gold Royalties has a lot of royalties and streams (Over 180 royalties in North America), it has a highly diversified revenue base. Proof of the success of the business model is that the largest gold royalty/streaming company by market cap, Franco-Nevada (FNV), has far outperformed both the S&P 500 and physical gold since its inception.

Osisko Gold Royalties Reports Record Results for 2023

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2023 was a banner year for Osisko Gold Royalties, marked by new annual records in GEOs earned, revenue, cash flow and margins, as well as the completion of several key transactions that were accretive to cash flow and GEOs earned of Osisko.

2023 Financial Highlights

Quelle: Osisko Gold
Royalties

94,323 gold equivalent ounces (“GEOs”) earned (89,367 GEOs in 2022); Record royalty and stream revenue of $247.3 million ($217.8 million in 2022); Record operating cash flow2 of $187.0 million ($175.1 million in 2022); Net loss2 of $48.3 million, or $0.26 per basic share2 (net income of $85.3 million, or $0.47 per basic share in 2022), primarily due to non-cash impairment charges, largely attributable to a fair value assessment of investments and royalty and stream interests, of $149.6 million; and Adjusted Earnings4 of $100.1 million, $0.54 per base share ($87.3 million, $0.48 per base share in 2022)

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Quelle: Osisko Gold
Royalties

The company is now well positioned with a significantly improved balance sheet and has also completed recent management and board changes.

Safety is mandatory: Osisko Gold Royalties with the highest exposure to safe mining regions!

Quelle: Osisko Gold
Royalties

Investing in the future! Growth is firmly planned!

Quelle: Osisko Gold
Royalties

After a complete review of the portfolio in light of Osisko’s growth trajectory and associated timelines, the Company’s 2024 guidance and updated 5-year forecasts provide a range that management believes is realistic.

With respect to the 2024 guidance, it should be noted that the lack of GEO deliveries resulting from the cessation of operations at the Renard Diamond Mine will be partially driven by expected improvements in certain other operating assets within the portfolio, as well as some new assets added during the year from development to production.

Furthermore, the company’s expected growth trajectory over the next five years remains very much intact as mine expansions and new projects are completed by the partners by 2028.

2024
Outlook:

Osisko expects to earn between 82,000 and 92,000 GEOs in 2024 at an average cash margin of 97%. The 2024 forecast assumes the commencement of GEOs from the CSA Copper Stream starting June 15, as well as the commencement of production from G Mining Ventures Corp.’s Tocantinzinho project. and the Cardinal Namdini Mining Limited project later in the year.

5-year outlook:

Osisko expects its portfolio to generate between 120,000 and 135,000 GEOs in 2028. The outlook assumes production at Windfall Mining Group’s Windfall and South32 Ltd.’s Hermosa, among others. will start. Additionally, Mantos Blancos is believed to be owned by Capstone Copper Corp. will have reached rated capacity following the recent expansion of its operations, as well as increased production from certain other operators that have announced planned expansions, including the Phase 3+ expansion at Alamos Gold Inc.’s Island Gold.

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In addition to this growth profile, Osisko has several other growth assets that were not included in the 5-year forecast because their timelines are either later or less clear. As operators provide further clarity on these assets, Osisko will seek to incorporate them into its long-term outlook.

The future path to success will already be paved in 2023!

Osisko Gold Royalties invested over $290 million in 2023 across a total of 5 projects:

Completion of silver and copper streams at Metals Acquisitions Limited’s CSA mine in Australia by Osisko Bermuda Limited for US$150.0 million ($198.8 million); Amendment to increase the effective silver grade at Taseko Mines Ltd’s Gibraltar mine. in B.C. from 12.5% ​​to 87.5% for $10.3 million ($13.6 million); Acquisition of a 3% gold net smelting return (“NSR”) and a 1% copper NSR royalty on Hot Chili Ltd.’s Costa Fuego copper-gold project in Chile for US$15.0 million (19.9 million $); Acquisition of a 1% NSR royalty on Cardinal Namdini Mining Ltd.’s Namdini Gold Project in Ghana for US$35.0 million ($48.4 million); and Acquisition of a 1% NSR royalty for Cabral Gold Inc.’s Cuiú Cuiú gold project in Brazil for US$5.0 million ($6.8 million);

Highlights so far in 2024!

The year 2024 also started strong for Osisko Gold Royalties! You have already done your homework and done good for your own company and its shareholders:

Additional repayments of $30.2 million on the revolving credit facility on a drawn balance of approximately $164.5 million; Declaration of a quarterly dividend of $0.06 per common share payable on April 15, 2024 to stockholders of record as of the close of business on March 28, 2024; and announcing the addition of Mr. David Smith to the Company’s Board of Directors as an independent director.

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5 points that make up Osisko Gold Royalties!

“Pure Play” precious metal royalty and streaming company

Low-risk precious metals exposure in “Tier 1” mining regions

Long-lasting growth phase through assets already paid for

High-quality portfolio with a high replacement value

Strong balance sheet and active transaction market -> new growth opportunities

Conclusion:

2023 was a fantastic year with new annual records in terms of GEOs generated, revenue, cash flow and margins!

Quelle: Osisko Gold
Royalties

As we enter 2024, Osisko Gold Royalties remains focused on simplifying its story to re-establish itself as a pure-play precious metals royalty and streaming company.

This unique aspect of its portfolio, combined with its robust organic growth prospects, means the company is well positioned to deliver long-term value to current and future shareholders.

My team and/or myself are or may be shareholders of the companies presented and these are or may be or become part of the SRC Mining Special Situations Certificate. Thanks for watching and goodbye from Switzerland.

This is not investment advice or a solicitation to buy or sell stocks. Everyone has to know for themselves what kind of risk they can and are confident about taking. Everyone is responsible for themselves.

Attention conflict of interest: I own the shares discussed in the article or are they included in the SRC Mining Special Situations certificate.

Good luck and warm greetings from Switzerland.

Yours, Jochen Staiger and Marc Ollinger

Swiss Resource Capital AG

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