SENIOR-QUALITY PORTFOLIO, LEADING GROWTH POTENTIAL
MARCH 2024
CAUTIONARY STATEMENTS
FORWARD-LOOKING STATEMENTS
Certain statements contained in this presentation may be deemed "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking statements are statements other than statements of historical fact, that address, without limitation, future events, the ability to complete any announced transaction, production estimates of Osisko's assets (including increase of production), the 2024 guidance on GEOs and cash margin and the 5-year outlook on GEOs included under "Guidance for 2024 and 5-Year Outlook" and other guidance based on disclosure from operators, timely developments of mining properties over which Osisko has royalties, streams, offtakes and investments, management's expectations regarding Osisko's growth, results of operations, estimated future revenues, production costs, carrying value of assets, ability to continue to pay dividend, requirements for additional capital, business prospects and opportunities, future demand for and fluctuation of prices of commodities (including outlook on gold, silver, diamonds, other commodities) currency, markets and general market conditions. In addition, statements and estimates (including data in tables) relating to mineral reserves and resources and statements and guidance as to gold equivalent ounces are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, including the assumptions set out under "Guidance for 2024 and 5-Year Outlook", and no assurance can be given that the estimates or related guidance will be realized. Forward-looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions or variations (including negative variations), or by statements that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, most of which are beyond the control of Osisko, and actual results may accordingly differ materially from those in forward-looking statements. Such risk factors include, without limitation, (i) with respect to properties in which Osisko holds a royalty, stream or other interest; risks related to: (a) the operators of the properties, (b) timely development, permitting, construction, commencement of production, ramp-up (including operating and technical challenges), (c) differences in rate and timing of production from resource estimates or production forecasts by operators, (d) differences in conversion rate from resources to reserves and ability to replace resources, (e) the unfavorable outcome of any challenges or litigation relating to title, permit or license, (f) hazards and uncertainty associated with the business of exploring, development and mining including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters or civil unrest or other uninsured risks; (ii) with respect to other external factors: (a) fluctuations in the prices of the commodities that drive royalties, streams, offtakes and investments held by Osisko, (b) fluctuations in the value of the Canadian dollar relative to the U.S. dollar, (c) regulatory changes by national and local governments, including permitting and licensing regimes and taxation policies, regulations and political or economic developments in any of the countries where properties in which Osisko holds a royalty, stream or other interest are located or through which they are held, (d) continued availability of capital and financing to Osisko or the operators of properties, and general economic, market or business conditions, and (e) responses of relevant governments to infectious diseases outbreaks and the effectiveness of such response and the potential impact of such outbreaks on Osisko's business, operations and financial condition; (iii) with respect to internal factors: (a) business opportunities that may or not become available to, or are pursued by Osisko, (b) the integration of acquired assets or (c) the determination of Osisko's Passive Foreign Investment Company ("PFIC") status. The forward-looking statements contained in this presentation are based upon assumptions management believes to be reasonable, including, without limitation: the absence of significant change in the Company's ongoing income and assets relating to determination of its PFIC status; the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended and, with respect to properties in which Osisko holds a royalty, stream or other interest, (i) the ongoing operation of the properties by the owners or operators of such properties in a manner consistent with past practice and with public disclosure (including forecast of production), (ii) the accuracy of public statements and disclosures made by the owners or operators of such underlying properties (including expectations for the development of underlying properties that are not yet in production), (iii) no adverse development in respect of any significant property, (iv) that statements and estimates relating to mineral reserves and resources by owners and operators are accurate and (v) the implementation of an adequate plan for integration of acquired assets.
For additional information on risks, uncertainties and assumptions, please refer to the most recent Annual Information Form of Osisko filed on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov which also provides additional general assumptions in connection with these statements. Osisko cautions that the foregoing list of risk and uncertainties is not exhaustive. Investors and others should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Osisko believes that the assumptions reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be accurate as actual results and prospective events could materially differ from those anticipated such the forward-looking statements and such forward-looking statements included in this presentation are not guarantee of future performance and should not be unduly relied upon. In this presentation, Osisko relies on information publicly disclosed by other issuers and third-parties pertaining to its assets and, therefore, assumes no liability for such third-party public disclosure. These statements speak only as of the date of this presentation. Osisko undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.
SAFE HARBOUR STATEMENT
This presentation has been prepared for informational purposes only in order to assist prospective investors in evaluating an investment in Osisko Gold Royalties Ltd. The information related to mining operators provided in this presentation has been sourced from public disclosure. Inquiries regarding this presentation can be made to the senior management of Osisko.
CAUTIONARY NOTE TO U.S. INVESTORS REGARDING MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES
Osisko is subject to the reporting requirements of the applicable Canadian securities laws, and as a result, reports its mineral resources and reserves according to Canadian standards. Canadian reporting requirements for disclosure of mineral properties are governed by National Instrument 43-101 ("NI 43-101"). The definitions of NI 43-101 are adopted from those described by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM"). In a number of cases Osisko has disclosed resource and reserve estimates covering properties related to the mining assets that are not based on CIM definitions, but instead have been prepared in reliance upon JORC and S-K 1300 (collectively, the "Acceptable Foreign Codes"). Estimates based on Acceptable Foreign Codes are recognized under NI 43-101 in certain circumstances. New mining disclosure rules under Subpart 1300 of Regulation S-K became mandatory for U.S. reporting companies beginning with the first fiscal year commencing on or after January 1, 2021. CIM definitions are not identical to those of the Acceptable Foreign Codes, the resource and reserve definitions and categories are substantively the same as the CIM definitions mandated in NI 43-101 and will typically result in reporting of substantially similar reserve and resource estimates. Nonetheless, readers are cautioned that there are differences between the terms and definitions of the CIM and the Acceptable Foreign Codes, and there is no assurance that mineral reserves or mineral resources would be identical had the owner or operator prepared the reserve or resource estimates under another code.
Mr. Guy Desharnais, PhD., P.Geo., is the qualified person for this presentation as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects and has reviewed and verified the technical information contained herein. Mr. Desharnais is an employee of Osisko Gold Royalties and is non-independent.
2
SENIOR-QUALITY PORTFOLIO, LEADING GROWTH POTENTIAL
TSX | NYSE: OR
Senior-quality precious metal portfolio
19 producing assets anchored by a 5% NSR royalty on Agnico Eagle's Canadian Malartic Complex(i)
Peer-leading organic growth profile
Attributable GEO delivery growth of ~30% based on Osisko's current 5-year outlook (2028e)
Highest concentration of assets in low-riskTier-1 mining jurisdictions(ii)
Current production and development project pipeline
Strong balance sheet & disciplined capital allocation strategy
+C$600 million in available liquidity as of December 31, 2023 - between cash and undrawn revolving credit facility (incl. C$200 million accordion)
+185
royalties, streams
and offtakes
C$4.0B
market cap
82-92k
2024 GEO Delivery
Guidance
C$187M
2023 cash flows from
operations
97%
cash margin
business1
1.1%
dividend yield
78%
GEOs from 'Tier 1'
Mining Jurisdictions(ii)
(2023)
1.28x
Consensus P/NAV2
Note: Market capitalization, dividend, and P/NAV as at market close on March 15, 2024
- Canadian Malartic Open Pits 5.0% NSR Royalty; Canadian Malartic Odyssey Underground Blended 4.61% NSR Royalty
- vs. precious metals royalty & streaming peers; 'Tier-1' mining jurisdictions defined as: Canada, USA, Australia
3
CORE BENEFITS OF THE ROYALTY & STREAMING BUSINESS MODEL
ROYALTY & STREAMING MODEL | KEY BENEFITS |
Highly efficient and scalable business model
Significant asset and cash-flow diversification
No direct capital, operating or exploration cost exposure
Insulated from inflationary cost pressures
Optionality to exploration success, mine life extensions and expansions
High margins provide sustainable cash-flow generation and shareholder returns throughout the commodity cycle
Leverage to precious metals prices
4
COMMITTED TO SUSTAINABILITY
OSISKO'S ESG STRATEGY COMMITS TO UPHOLD SUSTAINABLE | Five Key Components | |||
BUSINESS PRACTICES AND GROW RESPONSIBLY | Underpinning ESG Strategy: | |||
DUE DILIGENCE | CLIMATE CHANGE | SOCIAL | HEALTH & SAFETY | DIVERSITY, EQUITY & |
CONTRIBUTIONS | INCLUSION | |||
Conduct extensive due | Conduct business in a | Support the communities | Encourage the health, | Foster an environment |
diligence on investments | way that protects the | that host our offices and | safety, and well-being of | that prioritizes diversity, |
to ensure adherence to | environment and, where | partner assets | all our employees | equity and inclusion |
responsible mining | possible, help our mining | |||
practices | partners achieve climate- | |||
related goals |
UN Global Compact | World Gold Council | Sustainability Report | Sustainability Report | Rated "A" by MSCI | Ranked 6/117 within |
Participant | Member | Guided by GRI | Guided by SASB | Precious Metals Industry |
5
RECENT MATERIAL ACCOMPLISHMENTS & VALUE DRIVERS
PERFORMANCE
Record annual revenues of
$247.3M & record cash
margin in Q4/23 OF 94.0%1
(93% in Q3 2023)
BUSINESS
SIMPLIFICATION
Executing on re-alignment towards being a "pure-play" royalty & streaming company (recent sale of OSK position)
RECENT TRANSACTIONS
CLOSING OF THE | GIBRALTAR Ag STREAM | NAMDINI NSR |
CSA Ag/Cu STREAMS | AMENDMENTS | ROYALTY |
US$150M invested for | Increased the effective | 1.0% Au NSR royalty |
100% Ag stream (Feb | stream percentage by 12.5% | acquired from |
2023-) and 3.0-4.875% | to 87.5% + step-down | Savannah Mining |
Cu stream (June 2024-) | delivery threshold was | Limited for US$35M |
US$40M invested in | extended resulting in an | (excl. applicable |
MTAL equity | additional ~1.5Moz silver | taxes & levies) |
+$290 MILLION OF CAPITAL DEPLOYED IN 2023
GROWTH
2023 GEO deliveries +6% YOY growth; 2028e outlook represents ~30% growth
SHAREHOLDER
RETURNS
Q4 2023 dividend
declared of $0.06 per
common share
6
A HIGH-QUALITY PORTFOLIO
PRODUCING ASSETS | INTEREST | OPERATING PARTNERS | |||||||||||||||||||||||||||||||||||||
1 | CANADIAN MALARTIC | 5% NSR | AGNICO EAGLE | ||||||||||||||||||||||||||||||||||||
3 | 2 | MANTOS BLANCOS | 100% Ag Stream | CAPSTONE COPPER | |||||||||||||||||||||||||||||||||||
3 | EAGLE | 5% NSR | VICTORIA GOLD | ||||||||||||||||||||||||||||||||||||
7 | 4 | CSA | 100% Ag & 3-4.875% Cu Streams | METALS ACQUISITION LIMITED | |||||||||||||||||||||||||||||||||||
8 | |||||||||||||||||||||||||||||||||||||||
5 | 5 | 3 | |||||||||||||||||||||||||||||||||||||
5 | ÉLÉONORE | 2.2-3.5% NSR | NEWMONT | ||||||||||||||||||||||||||||||||||||
9 | |||||||||||||||||||||||||||||||||||||||
139 | 6 | SASA | 100% Ag Stream | CENTRAL ASIA METALS | |||||||||||||||||||||||||||||||||||
6 | |||||||||||||||||||||||||||||||||||||||
11 | |||||||||||||||||||||||||||||||||||||||
14 | 7 | SEABEE | 3% NSR | SSR MINING | |||||||||||||||||||||||||||||||||||
19 | |||||||||||||||||||||||||||||||||||||||
8 | GIBRALTAR | 87.5% Ag Stream | TASEKO MINES | ||||||||||||||||||||||||||||||||||||
1 | |||||||||||||||||||||||||||||||||||||||
10 | 9 | ISLAND GOLD | 1.38-3% NSR | ALAMOS GOLD | |||||||||||||||||||||||||||||||||||
12 | |||||||||||||||||||||||||||||||||||||||
10 | PAN | 4% NSR | CALIBRE MINING | ||||||||||||||||||||||||||||||||||||
18 | |||||||||||||||||||||||||||||||||||||||
11 | LAMAQUE | 1% NSR | ELDORADO GOLD | ||||||||||||||||||||||||||||||||||||
17 | 7 | 12 | PARRAL | 2.4% Au & Ag Streams | GOGOLD RESOURCES | ||||||||||||||||||||||||||||||||||
13 | DOLPHIN TUNGSTEN | 1.5% GRR | GROUP 6 METALS | ||||||||||||||||||||||||||||||||||||
14 | BALD MOUNTAIN | 1-4% GSR | KINROSS GOLD | ||||||||||||||||||||||||||||||||||||
15 | FRUTA DEL NORTE | 0.1% NSR | LUNDIN GOLD | ||||||||||||||||||||||||||||||||||||
15 | |||||||||||||||||||||||||||||||||||||||
19 | 16 | BRAUNA | 1% GRR | LIPARI MINERAÇÃO | |||||||||||||||||||||||||||||||||||
16 | |||||||||||||||||||||||||||||||||||||||
17 | SANTANA | 3% NSR | MINERA ALAMOS | ||||||||||||||||||||||||||||||||||||
Total Assets | 18 | ERMITAÑO | 2% NSR | FIRST MAJESTIC SILVER | |||||||||||||||||||||||||||||||||||
2 | |||||||||||||||||||||||||||||||||||||||
16 | 19 | MACASSA TH | 1% NSR | AGNICO EAGLE | |||||||||||||||||||||||||||||||||||
4 | Assets undergoing expansion, extension or ramp-up | ||||||||||||||||||||||||||||||||||||||
Producing Asset | |||||||||||||||||||||||||||||||||||||||
13 |
PRECIOUS METALS FOCUS | LOW-COST MINES3 | BEST-IN-CLASS PARTNERS |
2023 GEOs BY COMMODITY | NPV BY CASH COST QUARTILE | PRODUCTION, DEVELOPMENT & EXPLORATION |
0.2% | ||
10% | 19% | |
90% | 81% | |||||||
PRECIOUS METALS | DIAMONDS | OTHER | <50TH PERCENTILE | >50TH PERCENTILE | 7 | |||
HIGHEST EXPOSURE TO TIER 1 MINING JURISDICTIONS(i) vs. PEERS
100% | ||||||||
90% | ||||||||
80% | ||||||||
70% | ||||||||
60% | ||||||||
% | 50% | |||||||
NAV | ||||||||
40% | ||||||||
30% | ||||||||
20% | ||||||||
10% | ||||||||
0% | ||||||||
OR | TFPM | RGLD | FNV | WPM | SAND | |||
Canada | USA | Australia | Latin America (Incl. Mexico & Caribbean) | Europe | Africa | Asia |
Tier-1 Jurisdictions
Data Source: Canaccord Genuity Capital Markets Precious Metals Research, January 2024 | 8 |
(i) Canada, USA, Australia | |
CANADIAN MALARTIC COMPLEX
Flagship royalty on Canada's 2nd largest operating gold mine
Average of ~580koz Au produced annually over2023-2028 from Barnat Pit and Odyssey Underground4
Underground steady state production plan of 500-600koz of gold per year starting in 2028 once shaft access is complete4
Studying potential to accelerate first production from East Gouldie into 20265
Current Odyssey mine plan from 2023 Internal Study extends to 2042 and only includes approximately 57% of the existing resource ounces6
Complex expected to have ~40ktpd of excess mill capacity starting in 20286:
- Regional synergies currently being studied (Upper Beaver, Wasamac etc.); initial results expected by mid-20245
- Potential for 2nd underground shaft at Odyssey Underground currently in concept phase7
Open Pit, East Gouldie, Odyssey South & western half of East Malartic - | |
5.0% NSR Royalty | |
+ Odyssey North and eastern half of East Malartic - 3.0% NSR Royalty | |
+ Any ore processed from outside CM property - $0.40/t Mill Royalty | Source: Agnico Eagle Mines Ltd. (February 2024) |
Quebec, Canada | Agnico Eagle Mines Limited
9
MANTOS BLANCOS
100% Silver Stream(i)
Antofagasta, Chile | Capstone Copper Corp.
Phase I expansion (MBCDP) commercial production in achieved December 20227
- Processing rate increased to 7.3 Mtpa (from 4.2 Mtpa) & mine life extended to 20387
Phase I steady-state throughput of 20ktpd expected in H2 2024 with the installation of additional infrastructure in Q2 20247
- Various plant and process bottlenecks worked through in 2023
Annual silver production expected to average ~1.3Moz over the first five years of Phase I7
Feasibility study for Phase II Expansion anticipated in 2025 to potentially further increase metal production7
The selected final pit was divided into operational phases, resulting in a total of eight phases to define the life-of-mine from 2020 (LOM 2020)8
Mine phases for the LOM 2020 plan added a total mineral inventory of 123 Mt of sulphides (minimum 0.22% Cu cut-off grade), 31 Mt of oxides and a total rock tonnage of 773 Mt.
Source: Capstone Copper Corp. (November 2021)
- Osisko's silver stream is on a 2-month lag; Osisko, through its wholly-owned subsidiary Osisko Bermuda Limited, owns a
100% silver stream on Mantos Blancos. Under the stream agreement, Osisko Bermuda will purchase 100% of payable | 10 |
silver produced at Mantos Blancos until 19.3 Moz have been delivered and 40% of payable silver thereafter for the |
remaining LOM.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Osisko Gold Royalties Ltd. published this content on 18 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2024 18:17:03 UTC.