Osisko Development - CEO, Sean Roosen.
CEO, Sean Roosen.
Source: La Presse.
  • Osisko Gold Royalties (OR) has posted a record quarterly performance as climbing gold prices add strength to its revenue channels
  • For the three months ending September 30, the company generated C$41.2 million in revenue from royalties and streams compared to $33.9 million in the same period last year
  • Cash operating margins also hit a record of 96 per cent compared to 91 per cent in 2019
  • Gold prices rose significantly during the third quarter of 2020, tipping over US$2,000 (roughly C$2,603) per ounce for the first time in history in early August
  • Osisko Gold Royalties is currently down 0.43 per cent to $11.58 per share

Osisko Gold Royalties (OR) has posted a record quarterly performance as climbing gold prices add strength to its revenue channels.

For the three months ending September 30, 2020, the Montreal-based company generated a best-ever result of C$41.2 million in revenue from royalties and streams, compared to $33.9 million in the same period last year.

Cash operating margins also hit a record of 96 per cent, compared to 91 per cent in 2019, while net earnings grew from a loss of $45.9 million to a profit of $12.5 million.

The strong performance comes despite a decline in earned gold equivalent ounces (GEOs), which fell to 16,739 from 18,123 last year. This reflects the significant increase in gold prices this year, which tipped over US$2,000 (roughly C$2,603) per ounce for the first time in history in early August.

“Our cornerstone Canadian Malartic royalty continues to create significant value for our shareholders as the joint venture partnership makes significant strides towards an underground development decision,” said Sandeep Singh, President of Osisko Gold Royalties.

“We anticipate a continued upward trend in GEO deliveries in the fourth quarter, and we believe that we are in excellent position to meet our forecast for the second half of 2020,” he added.

Most significantly, the third quarter results follow the recent news of a spin-out company that was announced on October 5, which will be focused primarily on advancing the Cariboo Gold Project in British Columbia and a number of other key assets.

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

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

Osisko says the spin-out transaction simplifies the company as a pure-play royalty and streaming company, while maintaining exposure to the company-making assets contributed to Osisko Development.

Osisko Gold Royalties is currently down 0.43 per cent to $11.58 per share at 10:49am EST.

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