Osisko Gold Royalties reports strong revenue in third quarter
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(Kitco News) - Osisko Gold Royalties (OR: TSX & NYSE) announced today that the company earned approximately 20,032 attributable gold equivalent ounces ("GEOs") in Q3 2021, excluding 2,452 GEOs earned from the Renard diamond stream; compared to 16,739 ounces earned in Q3 2020.
Importantly, Osisko said it had recorded preliminary revenues of C$50.0 million during the third quarter (Q3 2020: $41.2 million) and preliminary cost of sales (excluding depletion) of C$3.5 million, resulting in an operating cash margin of approximately C$46.5 million.
The company added that its operating cash margin was approximately 93% during the third quarter of 2021 (97% excluding the Renard diamond stream).
Osisko noted that given the meaningful cash flow generated at current commodity prices, the company has previously announced a 10% increase to its third quarter dividend and repurchased over 1.7 million common shares in the months of August and September.
President and CEO Sandeep Singh commented, "Our cash flowing assets continued to meet or exceed our expectations over the course of another strong quarter. The corporation's cash flow potential will only strengthen as our paid-for and peer-leading organic growth unfolds over the coming years."
Osisko 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 160 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, which is the largest gold mine in Canada.