Osisko Mining : 2023 – Q2 – Financial Statements

Condensed Interim Consolidated Financial Statements

For the three and six-month periods ended June 30, 2023 and 2022

Presented in Canadian dollars

(Unaudited)

Table of Contents

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION	3
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE (INCOME)/LOSS	4
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY	5
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS	6
NOTES TO FINANCIAL STATEMENTS	7
1)	Reporting entity	7
2)	Basis of presentation	7
3)	Tax recoverable	9
4)	Marketable securities	10
5)	Investment in associate	10

6) Investment in joint venture …….…………………………………………………………………………………. 11

7)	Property, plant and equipment	13
8)	Exploration and evaluation assets	13
9)	Deferred share unit and restricted share unit plans	13
10)	Convertible debenture	14
11)	Asset retirement obligation	15
12)	Income taxes	15
13)	Capital and other components of equity	16
14)	Expenses	18
15)	Related party transactions	18
16)	Other receivables	19
17)	Long-term receivables and advances	19
18)	Commitments	20
19)	Subsequent events	20

Condensed Interim Consolidated Statements of Financial Position (Tabular amounts express in thousands of Canadian dollars) (Unaudited)

		June 30,		December 31,
As at		2023		2022
Assets
Current assets
Cash and cash equivalents	$	340,214	$	62,904
Restricted cash		1,100		1,100
Other receivables (note 16)		73,572		29,298
Tax recoverable (note 3)		36,976		41,257
Marketable securities (note 4)		14,314		15,679
Other assets		577		2,785
Total current assets		466,753		153,023
Non-current assets
Long-term receivables and advances (note 6 and 17)		265,111		6,000
Investment in associate (note 5)		39,673		39,878
Investment in joint venture (note 6)		480,375		-
Property, plant and equipment (note 7)		1,034		36,032
Exploration and evaluation assets (note 8)		2,077		730,403
Total non-current assets		788,270		812,313
Total assets	$	1,255,023	$	965,336
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	30,316	$	27,596
Current lease liabilities		252		385
Total current liabilities		30,568		27,981
Non-current liabilities
Flow-through premium liability (note 13(a))		8,600		-
Non-current lease liabilities		860		989
Share-based payment liability (note 9)		16,540		20,271
Convertible debenture (note 10)		116,165		102,124
Asset retirement obligation (note 11)		-		7,941
Deferred tax liability (note 12)		73,914		105,796
Total non-current liabilities		216,079		237,121
Total liabilities		246,647		265,102
Equity
Share capital (note 13(a))		949,849		869,597
Contributed surplus (note 13(d))		68,691		68,171
Warrants (note 13(e))		9,865		-
Equity component of convertible debenture (note 10)		15,852		15,852
Accumulated other comprehensive (loss)/income		(5,679)		629
Accumulated deficit		(30,202)		(254,015)
Total equity attributed to equity owners of the Corporation		1,008,376		700,234
Total liabilities and equity	$	1,255,023	$	965,336

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

Commitments (note 18)

Subsequent events (note 19)

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Condensed Interim Consolidated Statements of Comprehensive (Income)/Loss

(Tabular amounts express in thousands of Canadian dollars, except per share and share amounts) (Unaudited)

		Three months ended		Six months ended
For the period ended		June 30,		June 30,		June 30,		June 30,
	2023		2022		2023		2022
Expenses/(income)	$	2,638	$	(1,169)	$	10,091	$	5,345
Compensation expenses/(recovery) (note 14 and 15)
General and administration expenses (note 14 and 15)		3,167		1,509		4,625		2,997
General exploration expenses		20		-		20		20
Flow-through premium income (note 13(a))		(1,186)		(4,449)		(3,003)		(4,449)
Loss from marketable securities (note 4 and 14)		2,748		4,948		1,366		4,786
Fair value loss/(gain) on convertible debenture (note 10)		1,718		607		5,459		(34,301)
Gain on sale of investment in joint venture (note 6)		(209,982)		-		(209,982)		-
(Gain)/loss from disposition of property, plant and equipment (note 7)		-		(10)		10		(10)
Other loss/(income)		68		(5)		62		(15)
Operating (income)/loss		(200,809)		1,431		(191,352)		(25,627)
Finance income		(6,819)		(807)		(8,249)		(1,305)
Finance costs		1,932		2,047		3,881		4,086
Net finance (income)/expense		(4,887)		1,240		(4,368)		2,781
Share of loss of associate (note 5)		644		630		205		1,773
Share of income of joint venture (note 6)		(166)		-		(166)		-
(Income)/loss before tax		(205,218)		3,301		(195,681)		(21,073)
Deferred income tax (recovery)/expense (note 12)		(26,417)		3,494		(28,132)		10,493
Net (income)/loss	$	(231,635)	$	6,795	$	(223,813)	$	(10,580)
Change in fair value of convertible debenture attributable to the		7,546		(5,616)		8,582		(5,042)
change in credit risk (note 10)
Income tax effect		(1,999)		1,488		(2,274)		1,336
Other comprehensive loss/(income)		5,547		(4,128)		6,308		(3,706)
Comprehensive (income)/loss	$	(226,088)	$	2,667	$	(217,505)	$	(14,286)
Basic (earnings)/loss per share (note 13(b))	$	(0.61)	$	0.02	$	(0.60)	$	(0.03)
Weighted average number of shares (note 13(b))		381,167,433		349,377,309		371,479,650		348,734,686
Diluted (earnings)/loss per share (note 13(c))	$	(0.59)	$	0.02	$	(0.59)	$	(0.03)
Diluted weighted average number of shares (note 13(c))		390,136,468		349,377,309		379,996,141		354,776,855

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

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Condensed Interim Consolidated Statements of Changes in Equity (Tabular amounts express in thousands of Canadian dollars) (Unaudited)

	Number of		Share Capital		Warrants		Contributed		Equity		Accumulated		Deficit and		Total
	Shares						Surplus		Component of		Other		Accumulated
									Convertible		Comprehensive		Deficit
									Debenture		Income
Balance January 1, 2023	347,382,435	$	869,597	$	-	$	68,171	$	15,852	$	629	$	(254,015)	$	700,234
Income for the period	-		-		-		-		-		-		223,813		223,813
Other comprehensive loss for the period	-		-		-		-		-		(6,308)		-		(6,308)
Stock-based compensation (note 13(d) and 14)	-		-		-		570		-		-		-		570
Issuance of shares upon exercise of stock options (note 13(a) and (d))	32,500		126		-		(50)		-		-		-		76
Private Placement (note 13(a))	4,568,051		15,679		-		-		-		-		-		15,679
Private Placement (note 13(a))	32,260,000		84,697		9,865		-		-		-		-		94,562
Shares repurchased under normal course issuer bid (note 13(a))	(6,535,300)		(21,726)		-		-		-		-		-		(21,726)
Deferred tax asset (note 12)	-		1,476		-		-		-		-		-		1,476
Balance June 30, 2023	377,707,686	$	949,849	$	9,865	$	68,691	$	15,852	$	(5,679)	$	(30,202)	$	1,008,376
	Number of		Share Capital		Warrants		Contributed		Equity		Accumulated		Deficit and		Total
	Shares						Surplus		Component of		Other		Accumulated
									Convertible	Comprehensive		Deficit
									Debenture		Income
Balance January 1, 2022	346,279,008	$	854,439	$	14,498	$	63,192	$	15,852	$	-	$	(248,175)	$	699,806
Income for the period	-		-		-		-		-		-		10,580		10,580
Other comprehensive income for the period	-		-		-		-		-		3,706		-		3,706
Stock-based compensation (note 13(d) and 14)	-		-		-		1,075		-		-		-		1,075
Issuance of shares upon exercise of stock options	4,107,004		25,721		-		(11,358)		-		-		-		14,363
Expiry of warrants	-		-		(14,498)		14,498		-		-		-		-
Private Placement	2,891,088		11,923		-		-		-		-		-		11,923
Shares repurchased under normal course issuer bid	(5,463,820)		(22,079)		-		-		-		-		-		(22,079)
Deferred tax asset	-		12		-		-		-		-		-		12
Balance June 30, 2022	347,813,280	$	870,016	$	-	$	67,407	$	15,852	$	3,706	$	(237,595)	$	719,386

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

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