Osisko boasts 93.5% cash operating margin from royalties and streams
(Kitco News) - Osisko Gold Royalties (TSX: OR;NYSE: OR) announced today that the company received approximately 18,800 attributable gold equivalent ounces (“GEOs”) in the fourth quarter of 2020, for a total of approximately 66,100 GEOs in 2020, exceeding the revised guidance of 63,500 – 65,500 GEOs.
Osisko said that these figures exclude 1,750 GEOs earned from the Renard diamond stream in the fourth quarter of 2020 from diamonds sold from inventories by the operator. The net proceeds from the Renard diamond stream were reinvested through the bridge loan with the operator of the mine.
The company recorded preliminary revenues of C$64.5 million during the fourth quarter. Preliminary cost of sales, excluding depletion, was C$18.2 million resulting in a cash operating margin of approximately C$46.3 million. These figures include preliminary revenues from the Renard diamond stream of C$4.3 million, costs of sales, excluding depletion, of C$1.9 million resulting in an operating cash margin of C$2.4 million.
Osisko added that excluding offtakes, the company’s cash operating margin for royalties and streams was 93.5% during the fourth quarter of 2020 (97.1% excluding the Renard diamond stream).
CEO Sandeep Singh commented, “We are extremely pleased with the strength of our business in the fourth quarter and on having exceeded our revised guidance for the year. The upward trend in GEOs continued during the quarter and we look forward to further growth catalysts in 2021 and beyond.”
Osisko Gold Royalties is an intermediate precious metal royalty company focused on the Americas that commenced activities in June 2014. Osisko holds a North American focused portfolio of over 135 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its cornerstone asset, a 5% net smelter return royalty on the Canadian Malartic mine.