OR - Osisko Gold Royalties: A High-Quality Business At An Attractive Price

2024-05-09 18:18:16 ET

Summary

• Osisko Gold Royalties reported record cash margins of ~97% in Q1 2024 and is on track for another year of record cash flow generation.
• Meanwhile, the company's dip in attributable production is expected to be short lived as multiple assets come online or deliver higher contributions.
• More importantly, Osisko continues to see several positive developments across its royalty/streaming portfolio and its long-term growth outlook looks very achievable.
• In this update, we’ll dig into the company’s Q1 results, recent developments, and why it continues to be a premier way to add precious metals exposure.

While the recent surge in metals prices has helped many producers to claw back lost margins from the 2021-2023 period, the ~15% higher gold price has improved already phenomenal margins for royalty/streaming companies like Osisko Gold Royalties ( OR ). The company just reported record cash margins of ~97% in Q1 2024, and that was before the gold price surged another $300/oz to settle near the $2,350/oz level. Meanwhile, the company has rewarded shareholders with an 8% dividend increase (US$0.21 per share annually) and continues to see positive developments from its partner across its assets, and the higher copper price hasn’t hurt the outlook for its suite of royalties on copper development projects.

In this update, we’ll dig into the company’s Q1 results, recent developments, and why it continues to be a premier way to add precious metals exposure....

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