Osisko Gold Royalties Q4 2024: Contradictions in Capital Return Strategies and Geographic Expansion Priorities

These are the key contradictions discussed in Osisko Gold Royalties' latest 2024Q4 earnings call, specifically including: Share Buybacks and Dividend Priorities, and Expansion into Geographies outside Tier 1 jurisdictions:



Record Revenue and Cash Margin:
- Osisko Gold Royalties Ltd reported record annual revenues of $191.2 million in 2024, with a peer-leading cash margin of 96.5%.
- The growth was buoyed by strong precious metals prices and impressive results from operating partners, particularly the 5% royalty at Agnico Eagle's Canadian Malartic Mine.

GEO and Dividend Performance:
- The company earned 20,005 gold equivalent ounces in Q4 2024, ending the year with 80,740 GEOs, slightly above the midpoint of the revised guidance.
- Despite a challenging year, Osisko maintained its 41 consecutive dividend payouts, returning over $360 million to shareholders, driven by stable performance and strong cash flow generation.

Copper and Base Metal Exposure:
- Osisko's exposure to base metals increased significantly, with copper now accounting for a larger portion of GEOs due to assets like the MAC Copper CSA stream.
- This shift is part of the company's long-term strategy to diversify its portfolio and leverages its strong exposure to Tier 1 mining jurisdictions.

Operational and Strategic Focus:
- The company remains focused on returning capital to shareholders, maintaining a strong balance sheet, and pursuing high-quality, accretive precious metal streams and royalties.
- This is reflected in its commitment to completing at least one or possibly two meaningful transactions in 2025, aiming to enhance its GEO delivery and cash flow growth.