MONTRÉAL, July 08, 2024 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the "Corporation" or "Osisko") (OR: TSX & NYSE) is pleased to announce its second quarter 2024 deliveries, revenues and cash margin, as well as an update on its cash and debt positions as of June 30th, 2024. In addition, Osisko is also providing some select asset updates. All monetary amounts included in this report are expressed in Canadian dollars, unless otherwise noted.
PRELIMINARY Q2 2024 RESULTS
Osisko earned 20,068 attributable gold equivalent ounces1 ("GEOs") in the second quarter of 2024.
Osisko recorded preliminary revenues from royalties and streams of $64.8 million during the second quarter and preliminary cost of sales (excluding depletion) of $2.2 million, resulting in a record quarterly cash margin2 of approximately $62.6 million (or 97%).
As of June 30th, 2024, Osisko's cash position was approximately $65.7 million, following $44.2 million in repayments on the Corporation's revolving credit facility during the second quarter (for total repayments of $87.9 million in the first half of 2024). The Corporation's revolving credit facility was drawn by approximately $109.0 million at the end of June 2024, with an additional amount of $441.0 million available to be drawn plus the uncommitted accordion of up to $200.0 million.
SELECT ASSET UPDATES
Eagle Mine (operated by Victoria Gold Corp.)
On June 24th, 2024, Victoria Gold Corp. ("Victoria") announced that the heap leach pad at the Eagle Gold Mine ("Eagle") in the Yukon Territory experienced a failure. Operations have been suspended while the site operations team, along with management and the Yukon government officials continue to assess the situation and gather information. At this stage, Victoria has confirmed that there have been no fatalities or injuries to personnel associated with the incident. Victoria also confirmed that there had been some damage to infrastructure and a portion of the failure had left containment.
Subsequently on July 4th, 2024, Victoria advised that it had received Notices of Default from its lenders under the Credit Agreement dated December 18, 2020. A default under the Eagle Royalty Agreement dated April 13, 2018, was also triggered and consequently, Osisko provided a Notice of Default to Victoria on July 4, 2024.
Osisko holds a 5% NSR royalty on Eagle until 97,500 ounces of gold have been delivered and a 3% NSR royalty thereafter. Osisko's royalty covers the entire Dublin Gulch property including the reserves on the Eagle and Olive ore deposits and all of the exploration targets identified by Victoria.
CSA Mine (operated by Metals Acquisition Limited)
In April 2024, Metals Acquisition Limited ("MTAL") presented an updated Mineral Reserve and Resource Statement based on drilling completed at CSA up to August 2023. Highlights included a 67% increase in mine life to 11 years (to the end of 2034) based on Mineral Reserves only, compared to a 6-year mine life outlined previously. Mineral Reserves are 14.9 million tonnes ("Mt") grading 3.3% copper ("Cu") and 13 g/t silver ("Ag"). These increases were achieved after just ten months of ownership and based on drilling data from only two and a half months post-closing of the acquisition, with the effective date for the Reserve and Resource Statement being August 31, 2023. Despite the near doubling of the Mineral Reserves, CSA still has 4.7Mt grading 4.9% Cu and 15 g/t Ag in the Measured and Indicated Categories and 3.3Mt grading 5.5% Cu and 21 g/t Ag in the Inferred Category that are not included in the Mineral Reserves and work is underway to convert these to Mineral Reserve estimates in the future.
Osisko, through its wholly-owned subsidiary Osisko Bermuda Limited ("Osisko Bermuda"), owns a 100% silver stream on the CSA mine as well as a 3.0-4.875% copper stream, the latter being the newest production stream in Osisko's portfolio, and now active as of June 15th, 2024. The first delivery under the CSA copper stream to Osisko Bermuda was made in the first week of July for a total of approximately 74 tonnes of copper (164,000 pounds), or approximately 300 GEOs. These deliveries were not included in the second quarter GEO deliveries referenced above.
Tocantinzinho (operated by G Mining Ventures Corp.)
In early June 2024, G Mining Ventures Corp. ("G Mining") announced that construction of its flagship Tocantinzinho gold project ("TZ") in Brazil remained on track with the first gold pour expected to occur in the very near term, and with commercial production expected soon thereafter. Overall physical construction at TZ was approximately 97% complete as of May 31st, 2024. Ore was introduced into the grinding circuit on June 10th after G Mining received the hot commissioning permit from the Pará State Environmental Agency, SEMAS. The commissioning permits allow for the mining and processing of ore, disposal of tailings as well as the selling and exporting of gold.
Osisko owns a 0.75% NSR royalty on the Tocantinzinho project.
Q2 2024 RESULTS CONFERENCE AND WEBCAST CALL DETAILS
Osisko provides notice of the second quarter 2024 results and conference and webcast call details.
Results Release: | Tuesday, August 6th, 2024 after market close |
Conference Call: | Wednesday, August 7th, 2024 at 10:00 am ET |
Dial-in Numbers: (Option 1) | North American Toll-Free: 1 (800) 717-1738 Local – Montreal: 1 (514) 400-3792 Local – Toronto: 1 (289) 514-5100 Local – New York: 1 (646) 307-1865 Conference ID: 66153 |
Webcast link: (Option 2) | https://viavid.webcasts.com/starthere.jsp?ei=1679304&tp_key=1149f8ec91 |
Replay (available until Monday, September 9th at 10:00 AM ET): |