Osisko Gold ((TSE:OR)) has held its Q1 earnings call. Read on for the main highlights of the call.
Osisko Gold Royalties recently held its earnings call, revealing a positive outlook for the company. The sentiment was upbeat, reflecting strong financial performance, strategic dividend increases, and notable sustainability achievements. Despite facing some production challenges, the company’s future appears promising, bolstered by its leadership in key jurisdictions and a robust cash position.
Strong Start to 2025
Osisko Gold Royalties kicked off 2025 with a strong performance, earning 19,014 gold equivalent ounces (GEOs) in the first quarter. This achievement places the company on track to meet its full-year guidance of 80,000 to 88,000 GEOs. The company reported operating cash flows of $46.1 million, maintaining a cash margin of 97.1%, which underscores its operational efficiency.
Dividend Increase
In a move that will please investors, Osisko declared its 42nd consecutive dividend and announced a 20% increase to the base quarterly dividend, now payable in U.S. dollars. This decision reflects the company’s commitment to returning value to shareholders and its confidence in future cash flows.
Sustainability Achievements
Osisko continues to make strides in sustainability, having published its fifth sustainability report. The company has made significant progress in its ESG initiatives and has maintained leading ESG ratings, showcasing its dedication to responsible mining practices.
Financial Performance
The company’s financial performance was robust, with quarterly revenues climbing to $54.9 million. Earnings per share improved to $0.14, while adjusted earnings per share rose to $0.16, indicating strong financial health and operational success.
Jurisdictional and Cash Margin Leadership
Osisko maintains its leadership status in Tier 1 mining jurisdictions, coupled with peer-leading cash margins. This strategic positioning enhances its competitive edge and supports its long-term growth objectives.
Upcoming Name Change
Reflecting its evolution and independence, Osisko Gold Royalties announced a forthcoming name change to OR Royalties. This rebranding effort aligns with the company’s strategic vision and its focus on precious metal streams and royalties.
Lower Production at Mantos Blancos
The first quarter saw a slight dip in production at Capstone Copper’s Mantos Blancos, attributed to lower silver grades. However, the company remains optimistic about future performance improvements.
Canadian Malartic’s Weakest Quarter
Canadian Malartic experienced its weakest quarter, primarily due to operational adjustments. Despite this, the company anticipates stronger performance in subsequent quarters, driven by strategic enhancements.
Forward-Looking Guidance
Osisko Gold Royalties provided robust guidance for the year, emphasizing a strong start with 19,014 GEOs earned in Q1. The company is on track to meet its full-year guidance of 80,000 to 88,000 GEOs. With operating cash flows of $46.1 million and a reduced net debt of just over $10 million, Osisko is well-positioned for continued success. The company remains focused on its high-quality precious metal streams and royalties, with key assets expected to deliver improved performance throughout the year.
In conclusion, Osisko Gold Royalties’ earnings call painted a positive picture of the company’s current standing and future prospects. With strong financial performance, strategic initiatives, and a focus on sustainability, Osisko is well-equipped to navigate the challenges ahead and capitalize on growth opportunities.