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Osisko Gold (TSE:OR)
:OR

Osisko Gold Royalties (OR) AI Stock Analysis

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Osisko Gold Royalties

(NYSE:OR)

Rating:69Neutral
Price Target:
C$41.00
▲(17.14%Upside)
Osisko Gold Royalties scores well due to its strong financial stability and positive earnings call, suggesting a promising trajectory. However, valuation concerns and revenue growth challenges temper the overall score, indicating room for improvement in financial performance and earnings sustainability.
Positive Factors
Dividends
The quarterly dividend was increased by 20%, signaling confidence in the company's financial stability.
Liquidity
Osisko ended the quarter with $63.1M in cash, reflecting strong liquidity and financial management.
Negative Factors
Development Risk
Development risk exposure remains a concern for Osisko.
Production Results
Osisko reported Q1/25 GEO results that were a bit below expectations.

Osisko Gold Royalties (OR) vs. iShares MSCI Canada ETF (EWC)

Osisko Gold Royalties Business Overview & Revenue Model

Company DescriptionOsisko Gold Royalties Ltd (OR) is a Canadian-based precious metals royalty and streaming company headquartered in Montreal, Quebec. Founded in 2014, Osisko focuses primarily on gold, but also has interests in silver, copper, and other metals. The company operates by acquiring and managing a portfolio of royalties, streams, and other interests, providing it exposure to a wide range of mineral projects. Osisko's strategic investments in mining assets aim to generate long-term, sustainable cash flows and deliver value to its shareholders.
How the Company Makes MoneyOsisko Gold Royalties makes money through a royalty and streaming business model. In this model, the company provides upfront capital to mining companies for the development and production of mining projects in exchange for royalties or streams on future production. Royalties are a percentage of revenue or net smelter return from mineral production, while streams are agreements where Osisko purchases a portion of the produced metal at a fixed price. This model allows Osisko to benefit from the production without bearing the operational risks associated with mining. The company's revenue streams are diversified across a broad portfolio of assets, which include both operating and development-stage mines, ensuring a steady flow of income. Strategic partnerships with mining operators and investments in high-quality projects are significant factors that enhance Osisko's earnings potential.

Osisko Gold Royalties Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 5.72%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Osisko Gold Royalties showcased a positive start to the year with strong financial performance, strategic dividend increases, and sustainability achievements. Despite some production challenges, the company's overall trajectory appears promising, supported by jurisdictional leadership and a strong cash position.
Q1-2025 Updates
Positive Updates
Strong Start to 2025
Osisko earned 19,014 GEOs in Q1 2025, on track to achieve a full-year guidance of 80,000 to 88,000 GEOs. Operating cash flows were $46.1 million with a cash margin of 97.1%.
Dividend Increase
Osisko declared and paid its 42nd consecutive dividend and announced a 20% increase to the base quarterly dividend, payable in U.S. dollars.
Sustainability Achievements
Osisko published its fifth sustainability report, made progress in ESG initiatives, and maintained leading ESG ratings.
Financial Performance
Quarterly revenues increased to $54.9 million, earnings per share improved to $0.14, and adjusted earnings per share increased to $0.16.
Jurisdictional and Cash Margin Leadership
Osisko maintains leading status in Tier 1 mining jurisdictions and peer-leading cash margins.
Upcoming Name Change
Osisko Gold Royalties will change its name to OR Royalties to reflect its evolution and independence.
Negative Updates
Lower Production at Mantos Blancos
Q1 production at Capstone Copper's Mantos Blancos was slightly lower year-over-year due to lower silver grades.
Canadian Malartic's Weakest Quarter
The first quarter at Canadian Malartic is expected to be the weakest of the year due to operational adjustments.
Company Guidance
During the Q1 2025 conference call, Osisko Gold Royalties provided robust guidance, highlighting a strong start to the fiscal year with 19,014 gold equivalent ounces (GEOs) earned, placing them on track to meet their full-year guidance of 80,000 to 88,000 GEOs. The company reported operating cash flows of $46.1 million with a 97.1% cash margin and reduced net debt to just over $10 million, ending the quarter with $63.1 million in cash. Osisko declared a quarterly dividend of C$0.065 per share, marking its 42nd consecutive dividend, and subsequently approved a 20% increase to US$0.055 per common share. The earnings per share for Q1 stood at $0.14, with cash flow per share at $0.25 and adjusted earnings per share at $0.16, reflecting a significant year-over-year improvement. The company remains focused on high-quality precious metal streams and royalties, with key assets like Canadian Malartic and Mantos Blancos expected to deliver improved performance throughout the year. Additionally, the company announced an upcoming name change to OR Royalties to reflect its evolution as a fully independent organization.

Osisko Gold Royalties Financial Statement Overview

Summary
Osisko Gold Royalties demonstrates financial stability with a strong balance sheet featuring low leverage and high equity. Despite improvements in net profit margin and cash flows, challenges persist with negative revenue growth and inconsistent cash management, which slightly dampen the financial outlook.
Income Statement
65
Positive
The company's revenue has shown volatility, with a noticeable decline in 2024 compared to previous years. This has impacted the gross profit margin, which remains relatively high at 96.47% for 2024. However, the net profit margin improved to 8.51% from a significant loss in the previous year, indicating better cost management. Despite these improvements, the revenue growth rate is negative, and EBIT margin has decreased, signaling challenges in maintaining profitability.
Balance Sheet
72
Positive
The balance sheet is robust with a low debt-to-equity ratio of 0.08 and a high equity ratio of 86.32%, indicating financial stability and low leverage. The return on equity has improved to 1.37%, reflecting slight profitability improvements. Overall, the company maintains strong equity positions, but low ROE could be a concern for future growth prospects.
Cash Flow
70
Positive
The company has a strong operating cash flow, significantly higher than net income, which is a positive indicator of cash generation capability. The free cash flow turned positive in 2024 from a negative position in the previous year, showing improved financial health. However, the free cash flow growth rate is not favorable due to previous negative values, and this could signal inconsistent cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue256.37M191.16M247.32M217.81M224.88M213.63M
Gross Profit204.01M181.47M173.06M150.38M138.87M104.33M
EBITDA119.02M139.33M33.55M189.74M178.06M107.83M
Net Income30.02M16.27M-48.34M85.28M-56.67M16.88M
Balance Sheet
Total Assets1.39B1.38B2.01B2.00B2.37B2.40B
Cash, Cash Equivalents and Short-Term Investments63.07M84.96M75.92M90.55M115.70M306.02M
Total Debt80.02M98.68M199.88M155.57M428.80M411.80M
Total Liabilities174.84M188.68M356.94M259.09M590.56M556.07M
Stockholders Equity1.21B1.19B1.65B1.74B1.63B1.73B
Cash Flow
Free Cash Flow125.94M86.48M-104.08M-14.26M-170.14M-29.91M
Operating Cash Flow182.31M159.93M187.03M109.95M106.09M107.98M
Investing Cash Flow-37.46M-75.64M-219.84M-381.86M-272.04M-223.10M
Financing Cash Flow-85.05M-74.87M14.31M219.24M-19.60M316.86M

Osisko Gold Royalties Technical Analysis

Technical Analysis Sentiment
Positive
Last Price35.00
Price Trends
50DMA
34.14
Positive
100DMA
31.29
Positive
200DMA
28.99
Positive
Market Momentum
MACD
0.17
Positive
RSI
51.00
Neutral
STOCH
34.61
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 35 is below the 20-day moving average (MA) of 35.50, above the 50-day MA of 34.14, and above the 200-day MA of 28.99, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 34.61 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 (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSKNT
77
Outperform
C$3.61B14.6439.28%105.06%481.75%
TSSSL
73
Outperform
$3.63B90.692.05%0.65%6.23%36.40%
TSOGN
73
Outperform
C$387.43M98.965.89%33.96%37.86%
TSOR
69
Neutral
C$6.43B146.142.50%0.76%12.78%
TSELE
68
Neutral
C$464.49M77.142.36%109.11%
58
Neutral
$176.48M398.312.86%3.06%56.49%
44
Neutral
C$956.42M-6.69-13.35%2.79%17.55%-32.18%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:OR
Osisko Gold Royalties
35.00
13.86
65.57%
TSE:SSL
Sandstorm Gold
12.81
5.38
72.41%
TSE:FISH
Sailfish Royalty
2.36
1.15
95.85%
TSE:OGN
Orogen Royalties
1.91
0.83
76.85%
TSE:KNT
K92 Mining
15.36
7.53
96.17%
TSE:ELE
Elemental Royalties
1.89
0.83
78.30%

Osisko Gold Royalties Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
OR Royalties Expands Portfolio with New Silver Stream Acquisition and Positive Asset Updates
Positive
Jun 2, 2025

OR Royalties announced positive updates on select development assets outside its current five-year growth outlook, highlighting the potential inclusion of these assets in future growth plans. The company has acquired a 100% silver stream on Orla Mining’s South Railroad project in Nevada, which is expected to start production by 2027. Additionally, OR Royalties holds a significant net smelter return royalty on the Spring Valley gold project, which is progressing towards construction with potential financing from the Export-Import Bank of the United States. These developments enhance OR Royalties’ asset portfolio and strengthen its position in the mining industry.

The most recent analyst rating on (TSE:OR) stock is a Buy with a C$28.00 price target. To see the full list of analyst forecasts on Osisko Gold Royalties stock, see the TSE:OR Stock Forecast page.

Delistings and Listing ChangesExecutive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Osisko Gold Royalties Rebrands to OR Royalties Inc.
Positive
May 8, 2025

Osisko Gold Royalties Ltd has announced a name change to ‘OR Royalties Inc.’ following shareholder approval at its annual and special meeting. The company’s shares will begin trading under the new name on May 13, 2025, while maintaining the ticker symbol ‘OR’ on both the TSX and NYSE. Additionally, all eight nominees for the board of directors were elected, and PricewaterhouseCoopers, LLP was appointed as the independent auditor. The meeting also approved the unallocated rights under the Deferred Share Unit Plan and endorsed the company’s executive compensation approach. These developments reflect a strategic rebranding and operational continuity, potentially enhancing the company’s market positioning and stakeholder confidence.

Dividends
Osisko Gold Royalties Increases Q2 2025 Dividend by 20%
Positive
May 7, 2025

Osisko Gold Royalties Ltd announced a 20% increase in its second quarter 2025 dividend to US$0.055 per common share, reflecting a strong financial position. The dividend will be paid on July 15, 2025, with a record date of June 30, 2025. The company also highlighted its dividend reinvestment plan available to Canadian and U.S. shareholders, which could enhance shareholder value by allowing dividends to be reinvested in common shares.

M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Osisko Gold Royalties Reports Strong Q1 2025 Results and Strategic Acquisitions
Positive
May 7, 2025

Osisko Gold Royalties Ltd reported strong financial results for Q1 2025, with significant cash flows from operating activities amounting to $46.1 million, and revenues from royalties and streams reaching $54.9 million. The company also announced strategic acquisitions, including a 1.5% net smelter return royalty from Japan Gold Corp and a basket of royalties in British Columbia. Additionally, Osisko declared a quarterly dividend increase and highlighted future growth catalysts, such as project financing initiatives and new life-of-mine plans, which are expected to enhance its market position and stakeholder value.

Shareholder MeetingsBusiness Operations and Strategy
Proxy Advisory Firms Endorse Osisko’s Proposed Resolutions
Positive
Apr 24, 2025

Osisko Gold Royalties Ltd announced that leading independent proxy advisory firms, ISS and Glass Lewis, have recommended shareholders vote in favor of all proposed resolutions at the upcoming Annual and Special Meeting. This endorsement could positively impact the company’s governance and shareholder relations, reinforcing Osisko’s strategic positioning within the precious metals industry.

Business Operations and Strategy
Osisko Gold Royalties Unveils 2024 Sustainability Report, Highlighting ESG Progress
Positive
Apr 17, 2025

Osisko Gold Royalties Ltd has released its 2024 Sustainability Report titled ‘Growing Responsibly,’ which marks the fifth edition of its ESG initiatives and key performance metrics. The report highlights the company’s advancements in climate strategy, community investments, governance, and employee engagement, including the implementation of a 2024-2027 climate strategy, achieving Board gender diversity targets, and earning the Great Place to Work certification. These efforts reflect Osisko’s commitment to responsible growth and long-term value creation, enhancing its industry positioning and stakeholder relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 03, 2025