(Kitco News) - Osisko Gold Royalties (TSX: OR & NYSE: OR) reported today that the company earned approximately 25,023 attributable gold equivalent ounces ("GEOs") in Q4 2022, for a total of approximately 89,367 GEOs in 2022, representing record quarterly and annual deliveries for Osisko.
The company said that GEOs earned increased by 12% in 2022 year-over-year, but fell slightly short of the low end of its guidance of 90,000 ounces, partly due to the Eagle mine still working towards steady-state production and the Mantos mine facing delays in the ramp up of their mill expansion.
"That extra growth will flow into upcoming quarters and we expect significant upward momentum in deliveries from both mines going forward. The higher gold-silver price ratio, experienced mostly in the second and third quarters, also reduced GEOs earned by approximately 1,550 ounces in 2022 versus expectations," Osisko noted in a statement.
The company also said it recorded preliminary revenues from royalties and streams of C$61.9 million during the fourth quarter and preliminary cost of sales (excluding depletion) of C$4.7 million, resulting in a record quarterly cash margin of approximately $57.2 million (or 92%).
For the year 2022, preliminary revenues from royalties and streams reached a record C$217.8 million and preliminary cost of sales (excluding depletion) are estimated at C$16.1 million, resulting in a record annual cash margin of approximately C$201.7 million (or 93%), it added.
President and CEO Sandeep Singh commented, "2022 was an exceptionally positive year for Osisko. We had successive quarters of record GEOs earned, revenues and cash margins, we added world-class assets to an already high-quality portfolio, took advantage of volatile markets to buy-back 1.7 million common shares for $22.1 million, reactivated stream payments from the Renard mine, simplified the business with the deconsolidation of Osisko Development Corp. realigning Osisko as a pure-play royalty and streaming business and continued to strengthen and diversify our Board of Directors.
"Our asset base continues to outperform through numerous expansions, mine life extensions and reserve and resource replacement, and we look forward to continuing to showcase the depth and quality of our asset base throughout 2023."
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 175 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.
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