Osisko Gold Royalties Ltd (OR, Financial) has released its preliminary results for the fourth quarter of 2024, reporting record revenues and cash margins. The company earned 20,005 attributable gold equivalent ounces (GEOs) in Q4, totaling 80,740 GEOs for the year, meeting the mid-point of its revised guidance. Despite a 14% year-over-year decrease in GEOs due to operational stoppages at the Renard and Eagle mines, Osisko achieved record quarterly revenues of $79.3 million and a cash margin of 96.2%. The press release was issued on January 7, 2025.
Positive Highlights
- Record quarterly revenues of $79.3 million and annual revenues of $262.2 million.
- Achieved a cash margin of 96.2% for Q4 and 96.5% for the full year.
- Strong cash position of $85.0 million as of December 31, 2024.
- Successful completion of Dalgaranga royalty acquisitions and Gibraltar silver stream amendment.
Negative Highlights
- 14% decrease in year-over-year GEOs due to operational stoppages at key mines.
- Drawn $135.1 million from revolving credit facility, indicating reliance on external financing.
Financial Analyst Perspective
From a financial analyst's viewpoint, Osisko Gold Royalties Ltd's performance in Q4 2024 demonstrates resilience in the face of operational challenges. The company's ability to maintain high cash margins and achieve record revenues despite a decrease in GEOs is commendable. However, the reliance on the revolving credit facility suggests a need for careful management of financial resources. The upcoming change in presentation currency to the U.S. dollar may also impact financial reporting and investor perception.
Market Research Analyst Perspective
As a market research analyst, Osisko's strategic acquisitions and amendments, such as the Dalgaranga royalty and Gibraltar silver stream, position the company well for future growth. The strong cash position and available credit facility provide financial flexibility. However, the operational stoppages highlight potential risks in the mining sector, emphasizing the importance of diversification and risk management in Osisko's portfolio.
Frequently Asked Questions
Q: What were Osisko's total GEOs for 2024?
A: Osisko earned a total of 80,740 GEOs in 2024.
Q: What was the cash margin percentage for Q4 2024?
A: The cash margin for Q4 2024 was 96.2%.
Q: How much cash did Osisko have at the end of 2024?
A: Osisko had approximately $85.0 million in cash as of December 31, 2024.
Q: When will Osisko release its full year-end results?
A: The full year-end results will be released on February 19, 2025, after market close.
Read the original press release here.
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