Osisko Gold ((TSE:OR)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Osisko Gold highlighted a robust financial performance and strategic advancements, despite some challenges with certain assets and project delays. The overall sentiment was positive, with financial improvements and new revenue streams taking center stage.
Strong GEOs Earned and Cash Flows
Osisko Gold reported earning 19,700 Gold Equivalent Ounces (GEOs) in Q2, aligning with their full-year guidance of 80,000 to 88,000 GEOs. The company achieved record cash flows from operating activities, driven by higher gold prices, showcasing their strong financial footing.
Positive Financial Performance
The company saw a significant increase in Q2 2025 revenues, reaching $60.4 million, with net earnings of $0.17 per share, a marked improvement from the previous year’s loss. Cash flow per share also rose to $0.27 from $0.21 year-over-year, highlighting the company’s financial growth.
Debt Reduction and Net Cash Position
For the first time in several years, Osisko Gold achieved a net cash position, ending Q2 with $49.6 million in cash. This was accomplished by diligently paying down its revolving credit facility, strengthening its balance sheet.
Successful Royalty Payments from New Assets
The company received its first royalty payments from new assets, including the Namdini mine in Ghana and Talisker Resources’ Bralorne in Canada, marking the beginning of new revenue streams.
Canadian Malartic and Tocantinzinho Contributions
Canadian Malartic reported a strong quarter with significant production increases, while the ramp-up at Tocantinzinho in Brazil is progressing well, contributing positively to the company’s portfolio.
Reduced Cash Margin
There was a slight dip in cash margin from Q1 due to the residual GEO contribution from the closed Renard diamond mine, but the company maintained a strong cash position overall.
Mantos Blancos Delays and Silver Grade Issues
Production at Mantos Blancos remained flat year-over-year due to lower silver grades, and the Phase 2 feasibility study has been delayed to 2026, presenting a challenge for the company.
Eagle Mine Sale Process
The Eagle mine in the Yukon is up for sale following a technical failure and suspension of operations last year, creating uncertainty about its future.
Forward-Looking Guidance
Osisko Gold is on track to meet its annual GEO delivery guidance, expecting a stronger second half with 55% of GEOs anticipated during this period. Despite some unrealized GEOs due to a higher gold/silver ratio, the company reported record cash flows from operations. With $49.6 million in cash and a net cash position, Osisko Gold is well-positioned financially. The company also completed a significant transaction acquiring a 100% silver stream on Orla Mining’s South Railroad project for $13 million and declared a $0.055 per share dividend, marking its 43rd consecutive payment.
In summary, Osisko Gold’s earnings call conveyed a positive outlook with strong financial performance and strategic progress. Despite some operational challenges, the company’s financial improvements, new revenue streams, and disciplined capital allocation underscore its robust position in the market.