Osisko Gold Royalties Q4 2024: Contradictions in Capital Return Strategies and Geographic Expansion Priorities
Thursday, Feb 20, 2025 6:15 pm ET
3min read 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.
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.
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