Osisko Reports First Quarter 2018 Results
94% Increase in Cash Flows from Operating Activities
MONTREAL, May 03, 2018 — Osisko Gold Royalties Ltd (the “Company” or “Osisko”) (TSX:OR) (NYSE:OR) today announced its consolidated financial results for the first quarter ended March 31, 2018 and an update on matters following quarter-end.
- Earned 20,036 gold equivalent ounces1 (“GEOs”), in-line with the 2018 annual guidance of 77,500 to 82,500 GEOs;
- Generated cash flows from operating activities of $23.3 million, a record which represents a 94% increase compared to the first quarter of 2017;
- Recorded cash operating margins2 of 91% from royalty and stream interests, maintaining the highest margin in the metals and mining sector, generating $29.5 million in addition to a cash operating margin of $2.4 million from offtake interests;
- Invested $148 million in Victoria Gold Corp.’s near-term Eagle Gold project located in Yukon, Canada, of which $98 million was for a 5% net smelter return royalty on the project. ($49 million will be funded pro rata to other debt facilities). The project is permitted, fully financed and in construction. Osisko expects to receive an average of 10,000 GEOs annually from the project once in production expected by 2020;
- Converted the Matilda gold offtake into a 1.65% gold stream;
- Sold investments for gross proceeds of $25.6 million, generating a cash gain3 of $15.5 million;
- Repaid $32 million on the revolving credit facility in April;
- Held $205 million in cash and cash equivalents and $382 million in equity investments4 as at April 30, 2018;
- Distributed $7.8 million in dividends to shareholders through its 14th consecutive dividend payment, bringing the total to $62.9 million since inception in 2014;
- Repurchased 1,607,099 shares during the first quarter of 2018 at a total cost of $20.3 million, or at an average price of $12.65.
For more details, please refer to the Management’s Discussion and Analysis for the three months ended March 31, 2018.
“While the current environment remains challenging in the global metals and mining sector, Osisko has had a very good start to the year being able to announce and close the Eagle Gold royalty acquisition, which further strengthens our Canadian-focused portfolio. Our value creation approach to investing in both near-term and long-term opportunities keeps us focused on finding the right opportunities for Osisko and its shareholders.
Osisko is in an excellent position to continue to invest in the opportunities that present themselves in the current market environment. We have nearly a billion dollars of available financial capacity to deploy into new investments and are actively reviewing new opportunities.
In addition to our financial capacity, we are continuously discussing with other capital providers within the global metals and mining sector to develop strategic relationships and alliances to further increase our capacity, enhance our suites of financial products and offer complete financing solutions to our mining partners”, said Sean Roosen, Chair and Chief Executive Officer.
Q1 2018 Results Conference Call
Osisko will host a conference call on Friday, May 4, 2018 at 10:00 EDT to review and discuss its Q1 2018 results.
Those interested in participating in the conference call should dial in at 1-(647) 788-4922 (international), or 1‑(877) 223-4471 (North American toll free). An operator will direct participants to the call.
The conference call replay will be available from 1:00pm EDT on May 4, 2018 until 11:59 pm EST on May 11, 2018 with the following dial in numbers: 1-(800) 585-8367 (North American toll free) or 1-(416) 621-4642, access code 6387003.
Osisko Gold Royalties
Vice President, Investor Relations
Osisko Gold Royalties
Joseph de la Plante
Vice President, Corporate Development