- Record cash margin of $47.8 million from royalties and streams
- Operating cash flows from the royalties and streams segment of $35.0 million
Montréal, August 9, 2022 – Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE - https://www.commodity-tv.com/ondemand/companies/profil/osisko-gold-royalties-ltd/) today announced its consolidated financial results for the second quarter of 2022. Amounts presented are in Canadian dollars, except where otherwise noted.
Q2 2022 Financial Highlights
- 22,243 GEOs1 earned (Q2 2021 – 20,178 GEOs);
- Consolidated revenues of $64.0 million (Q2 2021 – $57.9 million);
Revenues from the royalties and streams segment2 of $51.5 million (Q2 2021 – $57.2 million, including $7.3 million from offtakes); Revenues from the mining exploration and development segment3 (i.e. Osisko Development Corp.) of $12.4 million (Q2 2021 – $0.7 million);
- Consolidated cash flows from operating activities of ($0.2 million) (Q2 2021 – $30.9 million);
Operating cash flows from the royalties and streams segment of $35.0 million (Q2 2021 – $37.3 million); Operating cash flows from the mining exploration and development segment of ($35.2) million (Q2 2021 – ($6.4) million);
- Cash margin4 of 93% from royalties and streams (Q2 2021 – 94%);
- Consolidated net earnings attributable to Osisko’s shareholders of $17.2 million, or $0.09 per share (Q2 2021 – net loss of $14.8 million or $0.09 per basic share);
- Consolidated adjusted loss4 of $4.7 million, or $0.03 per basic share (Q2 2021 – net earnings $20.2 million, $0.12 per basic share);
Adjusted earnings from the royalty and stream segment of $25.7 million, or $0.14 per basic share (Q2 2021 – $23.9 million, or $0.14 per basic share); and Adjusted loss from the mining exploration and development segment of $30.4 million, or $0.16 per basic share (Q2 2021 – $3.7 million, or $0.02 per basic share).
Sandeep Singh, President and CEO of Osisko commented: “We benefited from record GEO deliveries and cash margins in Q2 despite two core assets not being at their full run rates, and we expect deliveries to continue to climb steadily in the second half of the year. The markets have become increasingly volatile, but we believe the investment thesis for Osisko has never been stronger with growing cash flows, meaningful diversification, exposure to tier-1 jurisdictions, and countless catalysts in the portfolio. And as evident with our Q2 results, our royalty and streaming business affords protection from a highly inflationary mining environment.”
Financial Highlights by Operating Segment
(in thousands of dollars, except per share amounts)
As a result of the interest held (44.1% as of June 30, 2022) and based on other facts and circumstances, the Corporation consolidates the assets, liabilities, results of operations and cash flows of the activities of Osisko Development Corp. (“Osisko Development”) and its subsidiaries. The table below provides some financial highlights per operating segment. More information per operating segment can be found in the consolidated financial statements and management’s discussion and analysis for the three and six months ended June 30, 2022.
For the three and six months ended June 30,
Osisko Gold Royalties (i)
Osisko Development (ii)
Consolidated (v)
2022
2021
2022
2021
2022
2021
$
$
$
$
$
$
Cash (June 30, 2022 and Dec. 31, 2021)
312,981
82,291
136,302
33,407
449,283
115,698
Three months ended June 30,
Revenues
51,545
57,246
12,862
775
63,959
57,941
Cash margin (iii)
47,789
47,150
n/a
n/a
47,789
47,150
Gross profit
35,938
35,713
653
-
36,591
35,713
Operating expenses
(G&A, bus. dev and exploration)
(6,200)
(6,483)
(10,079)
(4,649)
(16,279)
(11,132)
Mining operating expenses
-
-
(20,602)
-
(20,602)
-
Net earnings (loss)
18,059
16,341
(1,487)
(41,404)
16,572
(25,063)
Net earnings (loss) attributable to Osisko’s
shareholders
18,059
16,341
(899)
(31,100)
17,160
(14,759)
Net earnings (loss) per share attributable to
Osisko’s shareholders
0.10
0.10
(0.01)
(0.19)
0.09
(0.09)
Adjusted net earnings (loss) (iv)
25,716
23,877
(30,375)
(3,727)
(4,659)
20,150
Adjusted net earnings (loss) per basic share (iv)
0.14
0.14
(0.16)
(0.02)
(0.03)
0.12
Cash flows from operating activities
Before working capital items
40,870
39,026
(24,913)
(3,708)
15,957
35,318
Working capital items
(5,905)
(1,685)
(10,276)
(2,716)
(16,181)
(4,401)
After working capital items
34,965
37,341
(35,189)
(6,424)
(224)
30,917
Cash flows from investing activities
2,573
(42,377)
(97,759)
(47,464)
(95,186)
(89,841)
Cash flows from financing activities
(125,705)
(3,542)
210,225
(1,718)
84,520
(5,260)
Six months ended June 30,
Revenues
102,234
124,169
22,029
775
123,357
124,864
Cash margin (iii)
95,297
93,676
n/a
n/a
95,297
93,676
Gross profit
72,148
70,312
653
-
72,801
70,312
Operating expenses
(G&A, bus. dev and exploration)
(12,457)
(12,511)
(18,007)
(9,851)
(30,464)
(22,362)
Mining operating expenses
-
(35,848)
-
Net earnings (loss)
34,863
29,805
(23,820)
(45,105)
11,043
(15,300)
Net earnings (loss) attributable to Osisko’s
shareholders
34,863
29,805
(17,377)
(33,970)
17,486
(4,165)
Net earnings (loss) per share attributable to
Osisko’s shareholders
0.20
0.18
(0.10)
(0.20)
0.10
(0.02)
Adjusted net earnings (loss) (iv)
50,559
47,316
(50,982)
(9,238)
(423)
38,078
Adjusted net earnings (loss) per basic share (iv)
0.29
0.28
(0.29)
(0.06)
(0.00)
0.23
Cash flows from operating activities
Before working capital items
80,762
78,565
(42,182)
(1,285)
38,580
71,570
Working capital items
(5,290)
(4,487)
(9,904)
(14,842)
(15,194)
(19,329)
After working capital items
75,472
74,078
(52,086)
(16,127)
23,386
52,241
Cash flows from investing activities
(13,013)
(56,158)
(94,445)
(69,172)
(107,458)
(119,620)
Cash flows from financing activities
159,823
(11,053)
247,362
33,895
407,185
22,842
(i) Osisko Gold Royalties Ltd and its subsidiaries, excluding Osisko Development Corp. and its subsidiaries. Represents the royalty, stream and other interests segment.
(ii) Osisko Development Corp. and its subsidiaries. Represents the exploration, evaluation and development of mining projects segment.
(iii) Cash margin is a non-IFRS financial performance measure for the royalties and streams segment which has no standard definition under IFRS. It is calculated by deducting the cost of sales (excluding depletion) from the revenues. Please refer to the Non-IFRS Financial Performance Measures section of the MD&A for the three and six months ended June 30, 2022 or the Notes section at the end of this press release.
(iv) Adjusted earnings (loss) and adjusted earnings (loss) per basic share are non-IFRS financial performance measures which have no standard definition under IFRS. Refer to the non-IFRS measures provided under the Non-IFRS Financial Performance Measures section of the Corporation’s MD&A for the three and six months ended June 30, 2022 or the Notes section at the end of this press release.
(v) Consolidated results are net of the intersegment transactions. Refer to the Segment Disclosure section of the Corporation’s MD&A for the three and six months ended June 30, 2022.
Other Highlights
- Publication of the inaugural Asset Handbook and the second edition of the environmental, social and governance (“ESG”) report, Growing Responsibly;
- Repayment in full of the outstanding revolving credit facility for $113.1 million;
- Osisko Development completed the acquisition of Tintic Consolidated Metals LLC (“TCM”) and related financings, which resulted in the Corporation’s equity ownership in Osisko Development reducing from 70.1% to 44.1%;
- Osisko Bermuda Limited (“OBL”) entered into a binding agreement with TCM with respect to the previously announced metals stream (the “Tintic Stream”) on the Trixie test mine (the “Trixie Mine”), as well as mineral claims covering more than 17,000 acres in Central Utah’s historic Tintic Mining District (the “Tintic Property”), for US$20.0 million in exchange for 2.5% of all metals produced and a transfer price of 25% of the spot prices;
- Quarterly dividend of $0.055 per common share paid on July 15, 2022 to shareholders of record as of the close of business on June 30, 2022;
- In July 2022, the Corporation purchased for cancellation a total of 659,520 common shares for $8.3 million (average acquisition price per share of $12.65) under its 2022 NCIB program; and
- Declaration of a quarterly dividend of $0.055 per common share payable on October 14, 2022 to shareholders of record as of the close of business on September 30, 2022.
Q2 2022 Results Conference Call Details
Conference Call:
Wednesday, August 10th, 2022 at 10:00 am ET
Dial-in Numbers:
North American Toll-Free: 1 (888) 396 8049
Local and International: 1 (416) 764 8646
Conference ID: 28077702
Replay (available until August 17th at 11:59 pm ET):
North American Toll-Free: 1 (877) 674 7070
Local and International: 1 (416) 764 8692
Playback passcode: 077702#
Replay also available on our website at www.osiskogr.com
Qualified Person
The scientific and technical content of this news release has been reviewed and approved by Guy Desharnais, Ph.D., P.Geo., Vice President, Project Evaluation at Osisko Gold Royalties Ltd, who is a “qualified person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
About Osisko Gold Royalties Ltd
Osisko Gold Royalties Ltd is an intermediate precious metal royalty company which holds a North American focused portfolio of over 165 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its cornerstone asset, a 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada.
Osisko’s head office is located at 1100 Avenue des Canadiens-de-Montréal, Suite 300, Montréal, Québec, H3B 2S2.
For further information, please contact Osisko Gold Royalties Ltd:
Heather Taylor
Vice President, Investor Relations
Tel. (514) 940-0670 x105
In Europe:
Swiss Resource Capital AG
Jochen Staiger
Notes:
(1) Gold Equivalent Ounces
GEOs are calculated on a quarterly basis and include royalties, streams and offtakes. Silver earned from royalty and stream agreements are converted to gold equivalent ounces by multiplying the silver ounces earned by the average silver price for the period and dividing by the average gold price for the period. Diamonds, other metals and cash royalties are converted into gold equivalent ounces by dividing the associated revenue earned by the average gold price for the period. Offtake agreements are converted using the financial settlement equivalent divided by the average gold price for the period.
Average Metal Prices and Exchange Rate
Three months ended
June 30,
Six months ended
June 30,
2022
2021
2022
2021
Gold(i)
$1,871
$1,816
$1,874
$1,805
Silver(ii)
$23
$27
$23
$26
Exchange rate (US$/Can$)(iii)
1.2768
1.2282
1.2715
1.2471
(i) The London Bullion Market Association’s pm price in U.S. dollars.
(ii) The London Bullion Market Association’s price in U.S. dollars.
(iii) Bank of Canada daily rate.
(2) The royalties and streams segment refers to the royalty, stream and other interests segment, which corresponds to the activities of Osisko Gold Royalties Ltd and its subsidiaries, excluding Osisko Development Corp. and its subsidiaries.
(3) The mining exploration and development segment refers to the mining exploration, evaluation and development segment, which corresponds to the activities of Osisko Development Corp. and its subsidiaries.
(4) Non-IFRS Measures
The Corporation has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS) including (i) cash margin (in dollars and in percentage) for the royalties and streams segment, (ii) adjusted earnings (loss) and (iii) adjusted earnings (loss) per share. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. As Osisko’s operations are primarily focused on precious metals, the Corporation presents cash margins and adjusted earnings as it believes that certain investors use this information, together with measures determined in accordance with IFRS, to evaluate the Corporation’s performance in comparison to other companies in the precious metals mining industry who present results on a similar basis. However, other companies may calculate these non-IFRS measures differently.
Cash Margin (in dollars and in percentage of revenues)
Cash margin (in dollars) represents revenues from the royalties and streams segment less cost of sales (excluding depletion). Cash margin (in percentage of revenues) represents the cash margin (in dollars) divided by revenues from the royalties and streams segment.
Three months ended
June 30,
Six months ended
June,
2022
2021
2022
2021
$
$
$
$
Royalty and stream interests
Total Revenues
63,959
57,941
123,357
124,864
Less: Revenues from mining activities (Osisko Development)
(12,414)
(695)
(21,123)
(695)
Less: Revenues from offtake interests
-
(7,339)
-
(25,265)
Revenues from royalty and stream interests
51,545
49,907
102,234
98,904
Total Cost of sales
(15,318)
(10,791)
(26,480)
(31,188)
Less: Cost of sales from mining activities (Osisko Development)
11,562
695
19,543
695
Less: Cost of sales from offtake interests
-
7,104
-
24,343
Cost of sales of royalty and stream interests
(3,756)
(2,992)
(6,937)
(6,150)
Revenues from royalty and stream interests
51,545
49,907
102,234
98,904
Less: Cost of sales of royalty and stream interests
(3,756)
(2,992)
(6,937)
(6,150)
Cash margin (in dollars) - royalty and stream interests
47,789
46,915
95,297
92,754
Cash margin (in percentage of revenues) - royalty and stream interests
93%
94%
93%
94%
Offtake interests
Revenues from offtake interests
-
7,339
-
25,265
Less: Cost of sales of offtake interests
-
(7,104)
-
(24,343)
Cash margin (in dollars)
-
235
-
922
Cash margin (in percentage of revenues)
-
3%
-
4%
Adjusted earnings (loss) and adjusted earnings (loss) per basic share
Adjusted earnings (loss) is defined as: net earnings (loss) adjusted for certain items: foreign exchange gain (loss), impairment of assets (including impairment on financial assets and investments in associates), gains (losses) on disposal of exploration and evaluation assets, unrealized gain (loss) on investments, share of loss of associates, deferred premium income on flow-through shares, deferred income tax expense (recovery), transaction costs and other items such as non-cash gains (losses).
Adjusted earnings (loss) per basic share is obtained from the adjusted earnings (loss) divided by the weighted average number of common shares outstanding for the period.
For the three months ended June 30,
2022
2021
Osisko Gold
Royalties (i)
Osisko Development (ii)
Consolidated
Osisko Gold
Royalties (i)
Osisko Development (ii)
Consolidated
(in thousands of dollars, except
per share amounts)
$
$
$
$
$
$
Net earnings (loss)
18,059
(1,487)
16,572
16,341
(41,404)
(25,063)
Adjustments:
Impairment of assets
384
-
384
-
40,479
40,479
Foreign exchange (gain) loss
(7,593)
(1,563)
(9,156)
(169)
791
622
Unrealized loss (gain) on investments
5,574
(11,697)
(6,123)
1,553
13
1,566
Variation of fair value of derivative instruments
-
(19,381)
(19,381)
-
-
-
Share of loss of associates
1,078
141
1,219
1,111
750
1,861
Deferred premium income on flow-through shares
-
(573)
(573)
-
(2,798)
(2,798)
Transaction cost – Tintic
-
2,664
2,664
Deferred income tax expense (recovery)
8,214
1,521
9,735
5,041
(1,558)
3,483
Adjusted earnings (loss)
25,716
(30,375)
(4,659)
23,877
(3,727)
20,150
Weighted average number of
common shares outstanding (000’s)
185,316
185,316
185,316
167,895
167,895
167,895
Adjusted earnings (loss) per basic share
0.14
(0.16)
(0.03)
0.14
(0.02)
0.12
For the six months ended June 30,
2022
2021
Osisko Gold
Royalties (i)
Osisko Development (ii)
Consolidated
Osisko Gold
Royalties (i)
Osisko Development (ii)
Consolidated
(in thousands of dollars, except
per share amounts)
$
$
$
$
$
$
Net earnings (loss)
34,863
(23,820)
11,043
29,805
(45,105)
(15,300)
Adjustments:
Impairment of assets
904
-
904
4,400
40,479
44,879
Foreign exchange loss (gain)
(8,469)
(2,087)
(10,556)
(140)
1,535
1,395
Unrealized (gain) loss on investments
11,414
(11,469)
(55)
2,942
(1,297)
1,645
Variation of fair value of derivative instruments
-
(19,381)
(19,381)
-
-
-
Share of (earnings) loss of associates
(1,526)
472
(1,054)
736
1,157
1,893
Deferred premium income on flow-through shares
-
(914)
(914)
-
(3,267)
(3,267)
Transaction cost – Tintic
-
4,727
4,727
Deferred income tax expense (recovery)
13,373
1,490
14,863
9,573
(2,740)
6,833
Adjusted earnings (loss)
50,559
(50,982)
(423)
47,316
(9,238)
38,078
Weighted average number of
common shares outstanding (000’s)
176,182
176,182
176,182
167,696
167,696
167,696
Adjusted earnings (loss) per basic share
0.29
(0.29)
0.00
0.28
(0.06)
0.23
(i) Osisko Gold Royalties Ltd and its subsidiaries, excluding Osisko Development Corp. and its subsidiaries. Represents the royalty, stream and other interests segment.
(ii) Osisko Development Corp. and its subsidiaries. Represents the mining exploration, evaluation and development segment.
Forward-looking Statements
Certain statements contained in this press release 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. All statements in this press release, forward-looking statements are statements other than statements of historical fact, that address, without limitation, future events, production estimates of Osisko’s assets (including increase of production), 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 gold equivalent ounces are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates will be realized. Forward-looking statements are statements that are not historical facts and 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 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: fluctuations in the prices of the commodities that drive royalties, streams, offtakes and investments held by Osisko; fluctuations in the value of the Canadian dollar relative to the U.S. dollar; 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; risks related to the operators of the properties in which Osisko holds a royalty, stream or other interests; timely development, permitting, construction, commencement of production, ramp-up (including operating and technical challenges) on any of the properties in which Osisko holds a royalty, stream or other interest; rate and timing of production differences from resource estimates or production forecasts by operators of properties in which Osisko holds a royalty, stream or other interest; the unfavorable outcome of any challenges or litigation relating title, permit or license with respect to any of the properties in which Osisko holds a royalty, stream or other interests or to Osisko’s right thereon; differences in rate and timing of production from resource estimates or production forecasts by operators of properties in which Osisko holds a royalty, stream or other interest, including conversion from resources to reserves and ability to replace resources; business opportunities that become available to, or are pursued by Osisko; continued availability of capital and financing and general economic, market or business conditions; risks and hazards associated with the business of exploring, development and mining on any of the properties in which Osisko holds a royalty, stream or other interest, 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, the integration of acquired assets and the responses of relevant governments to the COVID-19 outbreak and the effectiveness of such response and the potential impact of COVID-19 on Osisko’s business, operations and financial condition. The forward-looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Osisko holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice and with public disclosure (including forecast of production); 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); no adverse development in respect of any significant property in which Osisko holds a royalty, stream or other interest; that statements and estimates relating to mineral reserves and resources by owners and operators of the properties in which Osisko holds a royalty, stream or other interest are accurate; the Corporation’s ongoing income and assets relating to determination of its PFIC status; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended.
For additional information on risks, uncertainties and assumptions, please refer to the most recent Annual Information Form of Osisko filed on SEDAR at www.sedar.com 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 press release are not guarantee of future performance and should not be unduly relied upon. These statements speak only as of the date of this press release. 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.
Osisko Gold Royalties Ltd
Consolidated Balance Sheets
(tabular amounts expressed in thousands of Canadian dollars)
June 30,
December 31,
2022
2021
$
$
Assets
Current assets
Cash
449,283
115,698
Amounts receivable
27,736
14,691
Inventories
26,361
18,596
Other assets
6,698
3,941
510,078
152,926
Non-current assets
Investments in associates
126,523
125,354
Other investments
113,302
169,010
Royalty, stream and other interests
1,148,482
1,154,801
Mining interests and plant and equipment
836,706
635,655
Exploration and evaluation
42,758
3,635
Goodwill
111,204
111,204
Other assets
34,381
18,037
2,923,434
2,370,622
Liabilities
Current liabilities
Accounts payable and accrued liabilities
33,341
30,049
Dividends payable
10,177
9,157
Provisions and other liabilities
12,663
12,179
Current portion of long-term debt
300,600
294,891
356,781
346,276
Non-current liabilities
Provisions and other liabilities
89,855
60,334
Long-term debt
4,636
115,544
Deferred income taxes
96,417
68,407
547,689
590,561
Equity
Share capital
2,085,642
1,783,689
Warrants
-
18,072
Contributed surplus
59,383
42,525
Equity component of convertible debentures
14,510
14,510
Accumulated other comprehensive income
28,010
58,851
Deficit
(305,499)
(283,042)
Equity attributable to Osisko Gold Royalties Ltd’s shareholders
1,882,046
1,634,605
Non-controlling interests
493,699
145,456
Total equity
2,375,745
1,780,061
2,923,434
2,370,622
Osisko Gold Royalties Ltd
Consolidated Statements of Income (Loss)
For the three and six months June 30, 2022 and 2021
(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)
Three months ended
June 30,
Six months ended
June 30,
2022
2021
2022
2021
$
$
$
$
Revenues
63,959
57,941
123,357
124,864
Cost of sales
(15,318)
(10,791)
(26,480)
(31,188)
Depletion and amortization
(12,050)
(11,437)
(24,076)
(23,364)
Gross profit
36,591
35,713
72,801
70,312
Other operating expenses
General and administrative
(14,875)
(9,171)
(27,519)
(19,077)
Business development
(1,260)
(1,118)
(2,681)
(2,105)
Exploration and evaluation
(144)
(843)
(264)
(1,180)
Mining operating expenses
(20,602)
-
(35,848)
-
Impairments - royalty, stream and other interests
-
-
-
(2,288)
Impairments - mining exploration, evaluation and development
-
(40,479)
-
(40,479)
Operating (loss) income
(290)
(15,898)
6,489
5,183
Interest income
2,292
1,348
3,483
2,658
Finance costs
(7,310)
(5,884)
(13,683)
(12,027)
Foreign exchange gain (loss)
9,405
(406)
10,592
(1,535)
Share of (loss) income of associates
(1,219)
(1,861)
1,054
(1,893)
Other gains (losses), net
23,884
1,629
18,660
(281)
Earnings (loss) before income taxes
26,762
(21,072)
26,595
(7,895)
Income tax expense
(10,190)
(3,991)
(15,552)
(7,405)
Net earnings (loss)
16,572
(25,063)
11,043
(15,300)
Net earnings (loss) attributable to:
Osisko Gold Royalties Ltd’s shareholders
17,159
(14,759)
17,485
(4,165)
Non-controlling interests
(587)
(10,304)
(6,442)
(11,135)
Net earnings (loss) per share
Basic and diluted
0.09
(0.09)
0.10
(0.02)
Osisko Gold Royalties Ltd
Consolidated Statements of Cash Flows
For the three and six months ended June 30, 2022 and 2021
(tabular amounts expressed in thousands of Canadian dollars)
Three months ended
June 30,
Six months ended
June 30,
2022
2021
2022
2021
$
$
$
$
Operating activities
Net earnings (loss)
16,572
(25,063)
11,043
(15,300)
Adjustments for:
Share-based compensation
2,525
2,090
6,156
5,390
Depletion and amortization
15,983
11,794
31,000
24,055
Impairment of assets
384
40,479
904
44,879
Finance costs
2,570
1,716
4,715
3,555
Share of loss of associates
1,219
1,861
(1,054)
1,893
Net gain on acquisition of investments
-
(211)
(48)
(649)
Change in fair value of financial assets and liabilities at fair value through profit and loss
(12,106)
1,777
(3,930)
3,685
Net gain on dilution of investments
(1,544)
-
(3,604)
(1,391)
Gain in deemed disposal of associate
(11,854)
-
(11,854)
-
Foreign exchange (gain) loss
(9,156)
622
(10,556)
1,395
Flow-through shares premium income
(573)
(2,798)
(914)
(3,268)
Deferred income tax expense
9,735
3,483
14,863
6,833
Other
2,202
(432)
1,859
493
Net cash flows provided by operating activities
before changes in non-cash working capital items
15,957
35,318
38,580
71,570
Changes in non-cash working capital items
(16,181)
(4,401)
(15,194)
(19,329)
Net cash flows (used in) provided by operating activities
(224)
30,917
23,386
52,241
Investing activities
Acquisition of Tintic, net of cash acquired
(62,189)
-
(62,189)
-
Acquisition of investments
(384)
(4,026)
(11,118)
(13,837)
Proceeds on disposal of investments
3,186
8,338
24,241
28,109
Acquisition of royalty and stream interests
-
(39,085)
(9,290)
(42,877)
Mining assets and plant and equipment
(20,973)
(53,839)
(34,007)
(89,651)
Exploration and evaluation expenses, net
(681)
(1,028)
(686)
(1,163)
Reclamation deposits, net
(13,371)
-
(13,371)
-
Other
(774)
(201)
(1,038)
(201)
Net cash flows used in investing activities
(95,186)
(89,841)
(107,458)
(119,620)
Financing activities
Bought deal equity financing
-
-
311,962
-
Share issue costs
(1,125)
-
(13,941)
-
Increase in long-term debt
3,666
-
7,536
50,000
Repayment of long-term debt
(115,095)
-
(115,700)
(50,000)
Investments from minority shareholders
213,153
-
255,543
38,841
Share issue expenses from investments from minority shareholders
(5,108)
-
(7,238)
(2,581)
Exercise of share options and shares issued under the share purchase plan
312
8,129
934
13,107
Normal course issuer bid purchase of common shares
-
-
(4,879)
(4,464)
Dividends paid
(9,755)
(7,914)
(18,478)
(15,696)
Capital payments on lease liabilities
(1,060)
(1,928)
(6,332)
(2,780)
Withholding taxes on settlement of restricted and deferred share units
(1,800)
(3,544)
(2,224)
(3,582)
Other
1,332
(3)
2
(3)
Net cash flows provided by (used in) financing activities
84,520
(5,260)
407,185
22,842
(Decrease) increase in cash before effects of exchange rate changes on cash
(10,890)
(64,184)
323,113
(44,537)
Effects of exchange rate changes on cash
10,723
(1,483)
10,472
(3,024)
(Decrease) increase in cash
(167)
(65,667)
333,585
(47,561)
Cash – beginning of period
449,450
320,630
115,698
302,524
Cash – end of period
449,283
254,963
449,283
254,963