Osisko Gold Royalties Ltd (OR) Q1 2025 Earnings Call Highlights: Strong Financial Performance ...

In This Article:

  • Gold Equivalent Ounces (GEOs) Earned: 19,014 GEOs in Q1 2025.

  • Operating Cash Flows: $46.1 million with a cash margin of 97.1%.

  • Cash and Net Debt: $63.1 million in cash; net debt reduced to just over $10 million.

  • Quarterly Revenue: $54.9 million, higher year-over-year.

  • Earnings Per Share (EPS): $0.14 per basic common share, improved year-over-year.

  • Cash Flow Per Share: $0.25, up from $0.20 in Q1 2024.

  • Adjusted Earnings Per Share: $0.16 per basic common share, up from $0.12 in Q1 2024.

  • Quarterly Dividend: CAD 0.065 per share; subsequent increase to USD 0.055 per share.

  • Precious Metals Contribution: Over 93% of GEOs from precious metals; gold at just under 67% and silver at just over 26%.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Osisko Gold Royalties Ltd (NYSE:OR) reported a solid start to 2025 with 19,014 gold equivalent ounces (GEOs) earned, aligning with their full-year guidance of 80,000 to 88,000 GEOs.

  • The company achieved an impressive operating cash flow of $46.1 million with a cash margin of 97.1% for the first quarter.

  • Osisko reduced its net debt to just over $10 million, showcasing strong financial management and a robust balance sheet.

  • The company declared a 20% increase in its quarterly dividend to USD 0.055 per share, reflecting confidence in future cash flows.

  • Osisko's sustainability efforts were highlighted with the release of their fifth annual Sustainability Report, demonstrating progress in ESG initiatives.

Negative Points

  • The first quarter was expected to be the weakest due to sequencing in major assets like Malartic and Mantos Blancos, impacting initial performance.

  • No major transactions were announced during the period, despite a busy corporate development team, potentially affecting growth expectations.

  • Production at Capstone Copper's Mantos Blancos was slightly lower year-over-year due to lower silver grades.

  • The Cariboo project is not included in the five-year outlook due to pending project financing, creating uncertainty in future contributions.

  • Osisko's name change to OR Royalties may cause temporary confusion among stakeholders and requires effective communication to ensure a smooth transition.

Q & A Highlights

Q: Can you provide an overview of Osisko Gold Royalties' financial performance in Q1 2025? A: Jason Attew, President and CEO, highlighted that Osisko earned 19,014 gold equivalent ounces (GEOs) in Q1 2025, aligning with their full-year guidance of 80,000 to 88,000 GEOs. The company reported operating cash flows of $46.1 million with a cash margin of 97.1%. Revenues were $54.9 million, and earnings per share improved to $0.14 from the previous year. The company ended the quarter with $63.1 million in cash and reduced net debt to just over $10 million.