Osisko Gold Royalties Secures $450M Cariboo Loan, Maintains Moderate Buy Consensus

• Osisko Gold Royalties holds a consensus Moderate Buy rating with a C$63.20 average price target, significantly above its current C$45.07 trading level.
• The company reported Q2 2026 earnings of C$0.46 per share, driven by an 82.42% net margin and robust cash flows from its diversified portfolio.
• Appian Capital Advisory provides a US$450M credit facility to Osisko Gold Group to advance the permitted Cariboo Gold Project in British Columbia.
• New drilling at the Proserpine target confirms high-grade gold structures near Cariboo, expanding the known mineralized footprint for potential open pit mining.
• OR Royalties declared a US$0.065 Q3 dividend and promotes a 3% discounted Dividend Reinvestment Plan to encourage long-term ownership.

Osisko Gold Royalties Ltd (TSE:OR) continues to demonstrate strong financial resilience and analyst confidence, maintaining consensus Moderate Buy recommendation from six covering research firms. The stock currently trades at C$45.07, presenting substantial upside potential toward the average 12-month price target of C$63.20. This valuation gap is supported by recent earnings data, with the company reporting second-quarter 2026 earnings per share of C$0.46. Financial metrics for the quarter reveal quarterly revenue of C$138.98 million, yielding an impressive 82.42% net margin and a 19.91% return on equity. The business operates as a precious metals royalty and streaming entity, holding over 195 interests anchored by a cornerstone 3-5% net smelter return royalty on Agnico Eagle Mines Limited’s Canadian Malartic Complex.

How is the Cariboo Project Financed and Expanded?

A critical component of the company's growth strategy involves Osisko Gold Group Inc., formerly Osisko Development Corp., which has secured significant financing for its flagship Cariboo Gold Project in British Columbia. Appian Capital Advisory has entered into a credit agreement providing a senior secured project loan facility of up to US$450 million. The transaction includes an initial US$100 million draw, enabling Osisko to accelerate pre-construction activities and materially de-risk the project ahead of a final investment decision. An additional US$350 million in subsequent draws remains available upon final investment decision, subject to customary project milestones.

Complementing this financial backing, Osisko Gold Group reported initial diamond drilling results from the Proserpine regional greenfield target, located approximately seven kilometres southeast of the Cariboo Gold deposit. The program completed 6,463 metres in 14 holes between February and May 2026, confirming high-grade gold structures alongside broader lower-grade zones that suggest potential for open pit mining. Drilling expanded the known mineralized footprint at Proserpine to roughly one kilometre along strike by half a kilometre in width, with gold encountered from near surface to depths beyond 400 metres. The company has resumed drilling with three rigs and plans a further 26,500 metres to increase drill density, underscoring the prospect of a sizeable new gold system close to its permitted Cariboo project.

What Is the Impact of the Strategic Transition and Dividend Policy?

Osisko Gold Royalties is undergoing a strategic transition to become a pure-play royalty and streaming company, having recently sold its Osisko Development stake through a secondary offering. This move aims to resolve past management conflicts and align with market preferences for focused royalty businesses, with analysts noting the stock trades at approximately 1.1x Net Asset Value. The new leadership is credited with cleaning up the management group and asset portfolio, positioning the company for organic asset growth of 10-12% per annum. Despite this strategic shift, the company maintains a consistent payout policy, with OR Royalties Inc. announcing a third quarter 2026 dividend of US$0.065 per common share. The payout is designated as an eligible dividend under the Canadian Income Tax Act and is payable on October 15, 2026. To incentivize long-term share ownership, the company is actively promoting its Dividend Reinvestment Plan (DRIP), allowing eligible shareholders in Canada and the United States to reinvest their October dividend at a 3% discount. This mechanism provides a cost-effective avenue for investors to increase their exposure to the company’s diversified portfolio of over 200 precious metals royalties and streams.