Osisko Development - CEO, Sean Roosen.
CEO, Sean Roosen.
Source: The Globe and Mail.
  • Osisko Gold Royalties (OR) has reported record preliminary revenue of C$55.7 million for the third quarter of 2020
  • This came from a total of 16,700 gold equivalent ounces that were received for the three months ending September 30
  • Preliminary cost of sales came to $15.2 million, resulting in a cash operating margin of roughly $40.5 million
  • The strong performance follows the announcement of a proposed spinout company designed to advance the Cariboo Gold Project
  • Osisko Gold Royalties (OR) is currently up 0.448 per cent to $15.68 per share at 11:33am EDT

Osisko Gold Royalties (OR) has reported record preliminary revenue of C$55.7 million for the third quarter of 2020.

For the three months ending September 30, the Montreal-based royalty and streaming company received a total of 16,700 gold equivalent ounces.

A preliminary cost of sales, excluding depletion, came to $15.2 million, resulting in a cash operating margin of roughly $40.5 million. This in turn yielded, excluding offtakes, a record margin of 96.4 per cent.

Sandeep Singh, President of Osisko Gold Royalties, said the third quarter results demonstrate the company’s strength and the quality of its portfolio of assets.

“We anticipate a continued upward trend in GEO deliveries in the fourth quarter as some of our royalty and streaming assets have a lag between an operator’s production and delivery to us.

“As such, the third quarter had remnant impacts of certain operators producing less ounces in their [second quarter] period. That effect is now behind us and, with the strong third quarter, we are in excellent position to meet our forecast for the second half of 2020,” he added.

The strong third quarter results follow a separate announcement released earlier this month, which proposes the formation of a spinout company – Osisko Development – to advance the Cariboo Gold Project in British Columbia.

Under the terms of the plan, Osisko will transfer the project and a number of other properties to TSX Venture Exchange-listed Barolo Ventures, along with a portfolio of securities valued at approximately $116 million.

In exchange, Osisko will receive shares in Barolo, constituting a reverse take-over and the formation of Osisko Development.

Osisko Gold Royalties (OR) is currently up 0.448 per cent and ist trading at $15.68 per share at 11:33am EDT.

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