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Osisko Gold (TSE:OR)
:OR
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Osisko Gold Royalties
(NYSE:OR)
56Neutral
Positive Factors
Financial Capacity
Osisko has ample capacity to execute on new transactions, or otherwise be debt-free with available capacity of $414.9M plus an uncommitted accordion of up to $200.0M.
Portfolio Quality
Osisko Gold Royalties has a number of quality, long-life portfolio royalties and streams on assets generally seen as low cost and in stable jurisdictions.
Negative Factors
Earnings
Osisko reported Q4/24 GEO results that were a bit below expectations, leading to a marginal decrease in quarterly estimates.
Osisko Gold Royalties (OR) vs. S&P 500 (SPY)
Market Cap
C$5.13B
Dividend Yield0.98%
Average Volume (3M)439.11K
Price to Earnings (P/E)229.6
Beta (1Y)0.77
Revenue Growth1.62%
EPS Growth-232.31%
CountryCA
Employees25
SectorBasic Materials
Sector Strength62
IndustryMining
Share Statistics
EPS (TTM)0.12
Shares Outstanding186,750,100
10 Day Avg. Volume484,275
30 Day Avg. Volume439,112
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)26.75
Price to Cash Flow (P/CF)127.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$31.88Price Target Upside16.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Osisko Gold Royalties Business Overview & Revenue Model
Company DescriptionOsisko Gold Royalties Ltd (OR) is a leading intermediate precious metal royalty and streaming company focused on North American assets. Based in Montreal, Canada, the company is primarily engaged in acquiring and managing a diversified portfolio of royalties, streams, and other interests on gold and other precious metals. Osisko Gold Royalties aims to provide its shareholders with high-quality exposure to precious metal prices and offers a unique investment opportunity within the mining sector.
How the Company Makes MoneyOsisko Gold Royalties generates revenue primarily through its royalty and streaming agreements with mining operators. In a royalty agreement, Osisko receives a percentage of the revenue or a fixed payment based on the production from the mining operations. In a streaming agreement, the company provides upfront capital to mining operators in exchange for the right to purchase a fixed percentage of the produced metal at a predetermined price. This model allows Osisko to benefit from the production and price increases of precious metals without the operational risks associated with direct mining operations. The company's earnings are further enhanced by its strategic investments in mining companies and its ability to optimize its portfolio through acquisitions and sales of royalty and streaming interests.
Osisko Gold Royalties Financial Statement Overview
Summary
Osisko Gold Royalties shows a mixed financial picture with modest revenue growth and strong gross profit margins. However, consistent net losses and fluctuating EBIT margins present operational challenges. The balance sheet is stable with low leverage, but profitability remains a concern. Recent cash flow improvements provide optimism, although historical performance has been inconsistent.Income Statement
The company has shown a modest revenue growth over the years with a slight increase in the latest TTM. Gross profit margin has remained relatively strong, but net profit margin continues to be negative due to significant net income losses. EBIT and EBITDA margins have been inconsistent, reflecting operational challenges.45
Neutral
Balance Sheet
Osisko Gold Royalties has maintained a strong equity base with a relatively low debt-to-equity ratio, indicating financial stability. However, the return on equity is negatively impacted by consistent net losses. The equity ratio remains robust, reflecting a solid financial position despite some liabilities.60
Neutral
Cash Flow
The cash flow situation shows improvement in the TTM with positive free cash flow, but historical free cash flow has been negative. The operating cash flow to net income ratio suggests strong cash generation relative to reported net losses, indicating potential for future financial recovery.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 248.02M | 247.32M | 217.81M | 224.88M | 213.63M | 392.60M | Gross Profit |
| 192.33M | 173.06M | 150.38M | 138.87M | 104.33M | 82.71M | EBIT |
| 56.37M | 98.06M | 122.97M | 92.30M | 64.60M | 35.14M | EBITDA |
| 33.65M | 33.55M | 189.74M | 178.06M | 107.83M | -180.57M | Net Income Common Stockholders |
| -54.91M | -48.34M | 85.28M | -56.67M | 16.88M | -234.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 184.26M | 75.92M | 90.55M | 115.70M | 306.02M | 128.93M | Total Assets |
| 2.23B | 2.01B | 2.00B | 2.37B | 2.40B | 1.95B | Total Debt |
| 352.77M | 199.88M | 155.57M | 428.80M | 411.80M | 349.04M | Net Debt |
| 178.50M | 132.16M | 65.02M | 313.10M | 109.27M | 240.82M | Total Liabilities |
| 463.05M | 356.94M | 259.09M | 590.56M | 556.07M | 453.81M | Stockholders Equity |
| 1.77B | 1.65B | 1.74B | 1.63B | 1.73B | 1.49B |
| Cash Flow | Free Cash Flow | ||||
| 134.66M | -104.08M | -14.26M | -170.14M | -29.91M | 7.46M | Operating Cash Flow |
| 200.62M | 187.03M | 109.95M | 106.09M | 107.98M | 91.60M | Investing Cash Flow |
| 57.94M | -219.84M | -381.86M | -272.04M | -223.10M | 7.56M | Financing Cash Flow |
| -270.18M | 14.31M | 219.24M | -19.60M | 316.86M | -161.91M |
Osisko Gold Royalties Technical Analysis
Positive
27.46
Price Trends
27.10
Positive
27.27
Positive
25.38
Positive
Market Momentum
-0.15
Negative
52.52
Neutral
65.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OR, the sentiment is Positive. The current price of 27.46 is above the 20-day moving average (MA) of 27.04, above the 50-day MA of 27.10, and above the 200-day MA of 25.38, indicating a bullish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 65.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:OR.
Osisko Gold Royalties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $19.78B | 15.21 | 14.66% | 1.08% | 16.53% | 206.89% | |
75 Outperform | $46.50B | 56.05 | 8.64% | 0.87% | 30.91% | 14.58% | |
72 Outperform | $4.33B | 8.52 | 11.62% | ― | 18.99% | 297.56% | |
70 Outperform | $2.65B | 136.17 | 1.00% | 0.93% | 0.80% | 137.87% | |
67 Neutral | $40.46B | 53.44 | 9.38% | 0.99% | -10.48% | -189.87% | |
56 Neutral | C$5.13B | 229.60 | 1.33% | 0.98% | 1.62% | -232.31% | |
47 Neutral | $2.64B | -3.82 | -29.05% | 3.32% | 2.72% | -29.50% |
* Basic Materials Sector Average
Performance Comparison
TSE:OR
Osisko Gold Royalties
27.29
6.04
28.45%
TSE:SSL
Sandstorm Gold
9.09
2.55
38.93%
TSE:K
Kinross Gold
15.99
8.47
112.55%
TSE:EQX
Equinox Gold
9.49
2.74
40.59%
TSE:WPM
Wheaton Precious Metals
102.40
42.13
69.91%
TSE:FNV
Franco-Nevada
211.70
58.21
37.92%
Osisko Gold Royalties Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -1.05% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive financial year with record revenues and a strong cash position. However, challenges remain with certain operations and growth projections, particularly with Mantos Blancos and the absence of the Eagle mine in future outlooks.Highlights
Record Annual Revenue
Osisko achieved record annual revenues of $191.2 million at a peer-leading cash margin of 96.5%.
Strong Precious Metals Performance
Osisko earned 80,740 gold equivalent ounces in 2024, slightly above the midpoint of the company's revised guidance.
Solid Financial Position
Osisko ended 2024 with $59 million in cash and net debt of just under $35 million after paying down $85 million against its revolving credit facility.
Dividend Consistency
Osisko declared and paid its 41st consecutive quarterly dividend of $0.065 per share.
New Asset Contributions
The addition of the Namdini mine in Ghana, with first gold poured in November 2024, marks a new production asset for Osisko.
Lowlights
Mantos Blancos Performance Challenges
Capstone's Mantos Blancos experienced a year-over-year decrease in performance due to milling rates below Phase 1 expansion design levels.
Lower 2025 Growth Expectations
The slope of GEO delivery growth in 2025 is expected to be less steep than previously anticipated due to mine sequencing and ramp-up challenges.
Eagle Mine Absence in Outlook
The updated five-year outlook to 2029 is lower than previous expectations due to the absence of the Eagle mine, which had been expected to contribute 10,000 GEOs.
Company Guidance
In the Osisko Gold Royalties Q4 and Year 2024 Results Conference Call, key financial metrics highlighted included the earning of 20,005 gold equivalent ounces (GEOs) in Q4, culminating in an aggregate of 80,740 GEOs for the full year. This result was slightly above the midpoint of the revised guidance range of 77,000 to 83,000 GEOs. The company achieved record annual revenues of $191.2 million, with a cash margin of 96.5%. Osisko ended 2024 with $59 million in cash and net debt of just under $35 million, after reducing its revolving credit facility by nearly $85 million. The company declared a quarterly dividend of $0.065 per share, with a similar dividend approved for April 2025. Looking forward, Osisko expects GEO delivery growth in 2025, although at a less steep trajectory than previously anticipated, with a guidance range of 80,000 to 88,000 GEOs for the year, maintaining a cash margin of approximately 97%. The company's five-year outlook projects continued growth, driven by existing and new production assets, despite the absence of expected contributions from the Eagle mine.Osisko Gold Royalties Corporate Events
Osisko Gold Royalties Achieves Record Financial Performance in Q4 2024
Jan 7, 2025
Osisko Gold Royalties announced preliminary results for the fourth quarter of 2024, reporting 20,005 gold equivalent ounces (GEOs) earned, reaching the mid-point of its guidance range despite a 14% decrease from the previous year due to operational stoppages at the Renard and Eagle mines. The company achieved record revenues and cash margins, with $79.3 million in quarterly revenues and a cash margin of $76.3 million, indicating strong financial performance despite the challenges. With a cash position of $85 million and a notable credit facility, Osisko is well-positioned financially, having completed significant acquisitions and amendments in the last quarter of 2024.
Osisko Gold Royalties Sees Promising Asset Growth
Dec 2, 2024
Osisko Gold Royalties is showing promising growth with significant asset updates from its Mantos Blancos silver stream and Island Gold District interests. The Mantos Blancos mine, operated by Capstone Copper, has improved throughput and may expand further, potentially boosting Osisko’s revenue. Additionally, Alamos Gold’s expansion plans for the Island Gold District could enhance Osisko’s future earnings.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.