Osisko Gold Royalties Ltd Reports Q2 2022 Results

- Record cash margin of $47.8 million from royalties and streams

- Operating cash flows from the royalties and streams segment of $35.0 million

MONTRÉAL, Aug. 09, 2022 - Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE) today announced its consolidated financial results for the second quarter of 2022. Amounts presented are in Canadian dollars, except where otherwise noted.


Q2 2022 Financial Highlights

- 22,243 GEOs1 earned (Q2 2021 – 20,178 GEOs);

- Consolidated revenues of $64.0 million (Q2 2021 – $57.9 million);
-- Revenues from the royalties and streams segment2 of $51.5 million (Q2 2021 – $57.2 million, including $7.3 million from offtakes);
-- Revenues from the mining exploration and development segment3 (i.e. Osisko Development Corp.) of $12.4 million (Q2 2021 – $0.7 million);

- Consolidated cash flows from operating activities of ($0.2 million) (Q2 2021 – $30.9 million);
-- Operating cash flows from the royalties and streams segment of $35.0 million (Q2 2021 – $37.3 million);
-- Operating cash flows from the mining exploration and development segment of ($35.2) million (Q2 2021 – ($6.4) million);

- Cash margin4 of 93% from royalties and streams (Q2 2021 – 94%);

- Consolidated net earnings attributable to Osisko’s shareholders of $17.2 million, or $0.09 per share (Q2 2021 – net loss of $14.8 million or $0.09 per basic share);

- Consolidated adjusted loss4 of $4.7 million, or $0.03 per basic share (Q2 2021 – net earnings $20.2 million, $0.12 per basic share);
-- Adjusted earnings from the royalty and stream segment of $25.7 million, or $0.14 per basic share (Q2 2021 – $23.9 million, or $0.14 per basic share); and
-- Adjusted loss from the mining exploration and development segment of $30.4 million, or $0.16 per basic share (Q2 2021 – $3.7 million, or $0.02 per basic share).

Sandeep Singh, President and CEO of Osisko commented: “We benefited from record GEO deliveries and cash margins in Q2 despite two core assets not being at their full run rates, and we expect deliveries to continue to climb steadily in the second half of the year. The markets have become increasingly volatile, but we believe the investment thesis for Osisko has never been stronger with growing cash flows, meaningful diversification, exposure to tier-1 jurisdictions, and countless catalysts in the portfolio. And as evident with our Q2 results, our royalty and streaming business affords protection from a highly inflationary mining environment.”


Financial Highlights by Operating Segment

(in thousands of dollars, except per share amounts)

As a result of the interest held (44.1% as of June 30, 2022) and based on other facts and circumstances, the Corporation consolidates the assets, liabilities, results of operations and cash flows of the activities of Osisko Development Corp. (“Osisko Development”) and its subsidiaries. The table below provides some financial highlights per operating segment. More information per operating segment can be found in the consolidated financial statements and management’s discussion and analysis for the three and six months ended June 30, 2022.

                                                          For the three and six months ended June 30,
                                 Osisko Gold Royalties (i)  Osisko Development (ii)  Consolidated (v)
                                              2022      2021      2022      2021      2022      2021
                                                 $         $         $         $         $         $
Cash (June 30, 2022 and Dec. 31, 2021)     312,981    82,291   136,302    33,407   449,283   115,698
Three months ended June 30, 
Revenues                                    51,545    57,246    12,862       775    63,959    57,941
Cash margin (iii)                           47,789    47,150       n/a       n/a    47,789    47,150
Gross profit                                35,938    35,713       653         -    36,591    35,713
Operating expenses	 	 	
(G&A, bus. dev and exploration)             (6,200)   (6,483)  (10,079)   (4,649)  (16,279)  (11,132)
Mining operating expenses                        -        -    (20,602)        -   (20,602)        -
Net earnings (loss)                         18,059    16,341    (1,487)  (41,404)   16,572   (25,063)
Net earnings (loss) attributable to Osisko’s 
  shareholders                              18,059    16,341      (899)  (31,100)   17,160   (14,759)
Net earnings (loss) per share attributable 
   to Osisko’s shareholders                   0.10      0.10     (0.01)    (0.19)     0.09     (0.09)
Adjusted net earnings (loss) (iv)           25,716    23,877   (30,375)   (3,727)   (4,659)   20,150
Adjusted net earnings (loss) 
   per basic share (iv)                       0.14      0.14     (0.16)    (0.02)    (0.03)     0.12

Cash flows from operating activities
Before working capital items                40,870    39,026   (24,913)   (3,708)   15,957    35,318
Working capital items                       (5,905)   (1,685)  (10,276)   (2,716)  (16,181)   (4,401)
After working capital items                 34,965    37,341   (35,189)   (6,424)     (224)   30,917
Cash flows from investing activities         2,573   (42,377)  (97,759)  (47,464)  (95,186)  (89,841)
Cash flows from financing activities      (125,705)   (3,542)  210,225    (1,718)    84,520   (5,260)

Six months ended June 30, 
Revenues                                   102,234   124,169    22,029       775    123,357  124,864
Cash margin (iii)                           95,297    93,676       n/a       n/a     95,297   93,676
Gross profit                                72,148    70,312       653         -     72,801   70,312
Operating expenses
(G&A, bus. dev and exploration)            (12,457)  (12,511)  (18,007)   (9,851)   (30,464) (22,362)
Mining operating expenses                        -             (35,848)                   -
Net earnings (loss)                         34,863    29,805   (23,820)  (45,105)    11,043  (15,300)
Net earnings (loss) attributable 
  to Osisko’s shareholders                  34,863    29,805   (17,377)  (33,970)    17,486   (4,165)
Net earnings (loss) per share attributable 
   to Osisko’s shareholders                   0.20      0.18     (0.10)    (0.20)      0.10    (0.02)
Adjusted net earnings (loss) (iv)           50,559    47,316   (50,982)   (9,238)      (423)  38,078
Adjusted net earnings (loss)   
    per basic share (iv)                      0.29      0.28     (0.29)    (0.06)     (0.00)    0.23

Cash flows from operating activities	
Before working capital items                80,762    78,565   (42,182)   (1,285)    38,580    71,570
Working capital items                       (5,290)   (4,487)   (9,904)  (14,842)   (15,194)  (19,329)
After working capital items                 75,472    74,078   (52,086)  (16,127)    23,386    52,241
Cash flows from investing activities       (13,013)  (56,158)  (94,445)  (69,172)  (107,458) (119,620)
Cash flows from financing activities       159,823   (11,053)  247,362    33,895    407,185    22,842

(i) Osisko Gold Royalties Ltd and its subsidiaries, excluding Osisko Development Corp. and its subsidiaries. Represents the royalty, stream and other interests segment.
(ii) Osisko Development Corp. and its subsidiaries. Represents the exploration, evaluation and development of mining projects segment.
(iii) Cash margin is a non-IFRS financial performance measure for the royalties and streams segment which has no standard definition under IFRS. It is calculated by deducting the cost of sales (excluding depletion) from the revenues. Please refer to the Non-IFRS Financial Performance Measures section of the MD&A for the three and six months ended June 30, 2022 or the Notes section at the end of this press release.
(iv) Adjusted earnings (loss) and adjusted earnings (loss) per basic share are non-IFRS financial performance measures which have no standard definition under IFRS. Refer to the non-IFRS measures provided under the Non-IFRS Financial Performance Measures section of the Corporation’s MD&A for the three and six months ended June 30, 2022 or the Notes section at the end of this press release.
(v) Consolidated results are net of the intersegment transactions. Refer to the Segment Disclosure section of the Corporation’s MD&A for the three and six months ended June 30, 2022.


Other Highlights

- Publication of the inaugural Asset Handbook and the second edition of the environmental, social and governance (“ESG”) report, Growing Responsibly;

- Repayment in full of the outstanding revolving credit facility for $113.1 million;

- Osisko Development completed the acquisition of Tintic Consolidated Metals LLC (“TCM”) and related financings, which resulted in the Corporation’s equity ownership in Osisko Development reducing from 70.1% to 44.1%;

- Osisko Bermuda Limited (“OBL”) entered into a binding agreement with TCM with respect to the previously announced metals stream (the “Tintic Stream”) on the Trixie test mine (the “Trixie Mine”), as well as mineral claims covering more than 17,000 acres in Central Utah’s historic Tintic Mining District (the “Tintic Property”), for US$20.0 million in exchange for 2.5% of all metals produced and a transfer price of 25% of the spot prices;

- Quarterly dividend of $0.055 per common share paid on July 15, 2022 to shareholders of record as of the close of business on June 30, 2022;

- In July 2022, the Corporation purchased for cancellation a total of 659,520 common shares for $8.3 million (average acquisition price per share of $12.65) under its 2022 NCIB program; and

- Declaration of a quarterly dividend of $0.055 per common share payable on October 14, 2022 to shareholders of record as of the close of business on September 30, 2022.


Q2 2022 Results Conference Call Details

Conference Call: Wednesday, August 10th, 2022 at 10:00 am ET
Dial-in Numbers: North American Toll-Free: 1 (888) 396 8049
Local and International: 1 (416) 764 8646
Conference ID: 28077702

Replay (available until August 17th at 11:59 pm ET):
North American Toll-Free: 1 (877) 674 7070
Local and International: 1 (416) 764 8692
Playback passcode: 077702#

Replay also available on our website at www.osiskogr.com


Qualified Person

The scientific and technical content of this news release has been reviewed and approved by Guy Desharnais, Ph.D., P.Geo., Vice President, Project Evaluation at Osisko Gold Royalties Ltd, who is a “qualified person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).


About Osisko Gold Royalties Ltd

Osisko Gold Royalties Ltd is an intermediate precious metal royalty company which holds a North American focused portfolio of over 165 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.

Osisko’s head office is located at 1100 Avenue des Canadiens-de-Montréal, Suite 300, Montréal, Québec, H3B 2S2.


For further information, please contact:

Osisko Gold Royalties Ltd
Heather Taylor, Vice President, Investor Relations
Tel. (514) 940-0670 x105
htaylor@osiskogr.com



Notes:
(1) Gold Equivalent Ounces



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