SENIOR-QUALITY PORTFOLIO, LEADING GROWTH POTENTIAL
JULY 2024
SENIOR-QUALITY PORTFOLIO, LEADING GROWTH POTENTIAL
TSX | NYSE: OR
Senior-quality precious metal portfolio
21 producing assets(i) anchored by a 5% NSR royalty on Agnico Eagle's Canadian Malartic Complex(ii)
Peer-leading organic growth profile
Attributable GEO delivery growth of ~30% based on Osisko's current 5-year outlook (2028e)
Highest concentration of assets in low-riskTier-1 mining jurisdictions(iii)
Current production and development project pipeline
Strong balance sheet & disciplined capital allocation strategy
+C$705 million in available liquidity as of June 30, 2024 - between cash and undrawn revolving credit facility (incl. C$200 million accordion)
Note: Market capitalization, dividend, and P/NAV as at market close on July 9, 2024
+185
royalties, streams
and offtakes
C$4.0B
market cap
82-92k
2024 GEO Delivery
Guidance
C$187M
2023 cash flows from
operations
97%
cash margin
business1
1.20%
dividend yield
78%
GEOs from 'Tier 1'
Mining Jurisdictions(ii)
(2023)
1.16x
Consensus P/NAV2
- Includes Victoria Gold Corp.'s Eagle mine and G Mining Ventures Corp.'s Tocantinzinho (TZ) mine, and Agnico Eagle Mines Ltd.'s Akasaba West satellite mine at Goldex
- Canadian Malartic Open Pits 5.0% NSR Royalty; Canadian Malartic Odyssey Underground Blended 4.61% NSR Royalty
- vs. precious metals royalty & streaming peers; 'Tier-1' mining jurisdictions defined as: Canada, USA, Australia
3
CORE BENEFITS OF THE ROYALTY & STREAMING BUSINESS MODEL
ROYALTY & STREAMING MODEL | KEY BENEFITS |
Highly efficient and scalable business model
Significant asset and cash-flow diversification
No direct capital, operating or exploration cost exposure
Insulated from inflationary cost pressures
Optionality to exploration success, mine life extensions and expansions
High margins provide sustainable cash-flow generation and shareholder returns throughout the commodity cycle
Leverage to precious metals prices
4
COMMITTED TO SUSTAINABILITY
OSISKO'S ESG STRATEGY COMMITS TO UPHOLD SUSTAINABLE | Five Key Components | |||
BUSINESS PRACTICES AND GROW RESPONSIBLY | Underpinning ESG Strategy: | |||
DUE DILIGENCE | CLIMATE CHANGE | SOCIAL | HEALTH & SAFETY | DIVERSITY, EQUITY & |
CONTRIBUTIONS | INCLUSION | |||
Conduct extensive due | Conduct business in a | Support the communities | Encourage the health, | Foster an environment |
diligence on investments | way that protects the | that host our offices and | safety, and well-being of | that prioritizes diversity, |
to ensure adherence to | environment and, where | partner assets | all our employees | equity and inclusion |
responsible mining | possible, help our mining | |||
practices | partners achieve climate- | |||
related goals |
Ranked 6/120 within
Precious Metals Industry
UN Global Compact | World Gold Council | Sustainability Report | Sustainability Report | Rated "AA" by MSCI | + |
Recognized as ESG Regional Top | |||||
Participant | Member | Guided by GRI | Guided by SASB | Rated & ESG Industry Top Rated |
5
MATERIAL ACCOMPLISHMENTS & VALUE DRIVERS
PERFORMANCE
42,327 GEOs earned in H1/24 at a cash margin of 97.0%1
RECENT SELECT TRANSACTIONS
GROWTH |
2028e outlook represents |
+30% growth over current |
(20,068 GEOs earned in Q2/24)
CASCABEL GOLD
STREAM (2024)
US$225M total investment for a 6% Gold Stream until 225koz have been delivered (3.6% thereafter)
US$10M due on closing (part of a total of US$30M for phased pre- construction funding)
Syndicated US$750M transaction with FNV (Osisko at 30%)
NAMDINI NSR ROYALTY (2023)
1.0% Au NSR royalty acquired from Savannah Mining Limited for US$35M
First gold production expected Q4/24
CLOSING OF THE CSA Ag/Cu STREAMS (2023)
US$150M invested for 100% Ag stream (Feb
2023-) and 3.0-4.875% Cu stream (June 2024-)
US$40M invested in MTAL equity
Both streams now resulting in GEOs earned for Osisko
2024e guidance range of |
82-92k GEOs |
BUSINESS SIMPLIFICATION
&
IMPROVED CORPORATE
GOVERNANCE
Executing on re-alignment towards being a "pure-play" royalty & streaming company
+C$90 MILLION OF REPAYMENT ON REVOLVING
CREDIT FACILITY YTD IN 2024
SHAREHOLDER
RETURNS
Q2/24 dividend of $0.065
per common share
6
A HIGH-QUALITY PORTFOLIO
PRODUCING ASSETS | INTEREST | OPERATING PARTNERS | |||||||||||||||||||||||||||||||||||||||
1 | CANADIAN MALARTIC | 5% NSR | AGNICO EAGLE | ||||||||||||||||||||||||||||||||||||||
3 | 2 | MANTOS BLANCOS | 100% Ag Stream | CAPSTONE COPPER | |||||||||||||||||||||||||||||||||||||
3 | CSA | 100% Ag & 3-4.875% Cu Streams | METALS ACQUISITION LIMITED | ||||||||||||||||||||||||||||||||||||||
7 | 4 | EAGLE(i) | 5% NSR | VICTORIA GOLD | |||||||||||||||||||||||||||||||||||||
8 | |||||||||||||||||||||||||||||||||||||||||
5 | 5 | 3 | |||||||||||||||||||||||||||||||||||||||
5 | ÉLÉONORE | 2.2-3.5% NSR | NEWMONT | ||||||||||||||||||||||||||||||||||||||
9 | |||||||||||||||||||||||||||||||||||||||||
139 | 6 | SASA | 100% Ag Stream | CENTRAL ASIA METALS | |||||||||||||||||||||||||||||||||||||
6 | |||||||||||||||||||||||||||||||||||||||||
11 | |||||||||||||||||||||||||||||||||||||||||
14 | 19 | 7 | SEABEE | 3% NSR | SSR MINING | ||||||||||||||||||||||||||||||||||||
8 | GIBRALTAR | 87.5% Ag Stream | TASEKO MINES | ||||||||||||||||||||||||||||||||||||||
1 | |||||||||||||||||||||||||||||||||||||||||
10 | 9 | ISLAND GOLD | 1.38-3% NSR | ALAMOS GOLD | |||||||||||||||||||||||||||||||||||||
12 | |||||||||||||||||||||||||||||||||||||||||
10 | PAN | 4% NSR | CALIBRE MINING | ||||||||||||||||||||||||||||||||||||||
18 | |||||||||||||||||||||||||||||||||||||||||
11 | LAMAQUE | 1% NSR | ELDORADO GOLD | ||||||||||||||||||||||||||||||||||||||
17 | 7 | 12 | PARRAL | 2.4% Au & Ag Streams | GOGOLD RESOURCES | ||||||||||||||||||||||||||||||||||||
13 | DOLPHIN TUNGSTEN | 1.5% GRR | GROUP 6 METALS | ||||||||||||||||||||||||||||||||||||||
14 | BALD MOUNTAIN | 1-4% GSR | KINROSS GOLD | ||||||||||||||||||||||||||||||||||||||
20 | 15 | FRUTA DEL NORTE | 0.1% NSR | LUNDIN GOLD | |||||||||||||||||||||||||||||||||||||
15 | |||||||||||||||||||||||||||||||||||||||||
16 | BRAUNA | 1% GRR | LIPARI MINERAÇÃO | ||||||||||||||||||||||||||||||||||||||
16 | |||||||||||||||||||||||||||||||||||||||||
19 | 17 | SANTANA | 3% NSR | MINERA ALAMOS | |||||||||||||||||||||||||||||||||||||
Total Assets | 18 | ERMITAÑO | 2% NSR | FIRST MAJESTIC SILVER | |||||||||||||||||||||||||||||||||||||
2 | |||||||||||||||||||||||||||||||||||||||||
19 | MACASSA TH | 1% NSR | AGNICO EAGLE | ||||||||||||||||||||||||||||||||||||||
16 | |||||||||||||||||||||||||||||||||||||||||
4 | 20 | TOCANTINZINHO | 0.75% NSR | G MINING VENTURES | |||||||||||||||||||||||||||||||||||||
Producing Asset | |||||||||||||||||||||||||||||||||||||||||
21 | AKASABA WEST | 2.5% NSR (Partial Coverage) | AGNICO EAGLE | ||||||||||||||||||||||||||||||||||||||
Assets undergoing expansion, extension or ramp-up | |||||||||||||||||||||||||||||||||||||||||
13 |
PRECIOUS METALS FOCUS | LOW-COST MINES3 | BEST-IN-CLASS PARTNERS |
Q1 2024 GEOs BY COMMODITY | NPV BY CASH COST QUARTILE | PRODUCTION, DEVELOPMENT & EXPLORATION |
<0.1% | ||
3% | 19% | |
97% | 81% | |||||||
PRECIOUS METALS | DIAMONDS | OTHER | <50TH PERCENTILE | >50TH PERCENTILE | 7 | |||
(i) Eagle mine operations suspended after June 24, 2024 heap leach pad failure. 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.
HIGHEST EXPOSURE TO TIER 1 MINING JURISDICTIONS(i) vs. PEERS
100% | ||||||||
90% | ||||||||
80% | ||||||||
70% | ||||||||
60% | ||||||||
% | 50% | |||||||
NAV | ||||||||
40% | ||||||||
30% | ||||||||
20% | ||||||||
10% | ||||||||
0% | ||||||||
OR | TFPM | RGLD | FNV | WPM | SAND | |||
Canada | USA | Australia | Latin America (Incl. Mexico & Caribbean) | Europe | Africa | Asia |
Tier-1 Jurisdictions
Data Source: Canaccord Genuity Capital Markets Precious Metals Research, April 2024 | 8 |
(i) Canada, USA, Australia | |
CANADIAN MALARTIC COMPLEX
Open Pit, East Gouldie, Odyssey South & western half of East Malartic -
5.0% NSR Royalty
- Odyssey North and eastern half of East Malartic - 3.0% NSR Royalty
- Any ore processed from outside CM property - $0.40/t Mill Royalty Quebec, Canada | Agnico Eagle Mines Limited
Flagship royalty on Canada's 2nd largest operating gold mine
Average of ~580koz Au produced annually over 2023 - 2028 from Barnat Pit and Odyssey Underground (open pits are exhausted by 2028)4
Underground steady state production plan of 500- 600koz of gold per year starting in 2028 once shaft access is complete4
Current mine plan from 2023 Internal Study extends to 2042 and only includes approximately 57% of the existing resource ounces5
Agnico is evaluating the potential of a series of mineralized veins collectively termed the "Odyssey internal zones" to provide additional feed to the processing plant in the near and medium term
- Odyssey internal zones indicate the potential to further increase production during the 2024-2029 transition period from combined open-pit and underground mining to 100% underground mining
Studying potential to accelerate first underground production from East Gouldie into 2026 (from 2027) as ramp progress is ahead of schedule6
9 | |
Source: Agnico Eagle Mines Ltd. (February 2024) | |
CANADIAN MALARTIC COMPLEX
Complex expected to have ~40ktpd of excess mill capacity starting in 20286
Regional optimizations currently being studied for Wasamac (no OR royalty) with results expected in 20257
- Upper Beaver (2.0% NSR royalty to OR) regional synergy results coming in July 2025, however likely to be processed at LaRonde (not CMC)7
Potential for 2nd shaft at Odyssey Underground currently in concept phase; additional clarity on potential 2nd shaft expected over the next 1-2 years8
- A potential 2nd shaft could add ~15k GEOs to OR's annual earned GEOs over and above the current mine plan, starting in the early 2030's (and at no additional cost to OR)(i)
Recent exploration success east of East Gouldie: 4.5 g/t Au over 30.0m and 1,060m east of East Gouldie Mineral Reserves, and 3.1 g/t Au over 32.8m and 420m east of lower portion of East Gouldie Mineral Reserves7
Open Pit, East Gouldie, Odyssey South & western half of East Malartic -
5.0% NSR Royalty
- Odyssey North and eastern half of East Malartic - 3.0% NSR Royalty
- Any ore processed from outside CM property - $0.40/t Mill Royalty Quebec, Canada | Agnico Eagle Mines Limited
Source: Agnico Eagle Mines Ltd. (April 2024)
(i) Projected GEOs estimated internally by Osisko Gold Royalties Ltd. based on publicly released information from the operator. | 10 |
Estimates based on the following assumptions: 10,000 tpd of additional ore tonnage; average gold grade of 2.75 g/t Au; 94.6% |
overall gold recovery; and a 5% NSR Royalty rate8
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Disclaimer
Osisko Gold Royalties Ltd. published this content on 16 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 July 2024 15:31:08 UTC.