Osisko Shareholders Back Leadership and Strategic Shift with Overwhelming Support at Annual Meeting

Osisko Gold Royalties Ltd (OR) has emerged from its recent Annual and Special Meeting of Shareholders with a clear mandate for continuity and growth, as investors overwhelmingly endorsed all proposed resolutions. With 83.29% of shares represented, the meeting underscored strong alignment between shareholders and management, setting the stage for the company’s rebranding to OR Royalties Inc. and its ambitious project pipeline.

Voting Results: A Vote of Confidence in Leadership and Governance

The meeting’s outcomes reflect robust shareholder support for Osisko’s current direction. Key results include:
1. Director Elections: All eight directors were re-elected unanimously, ensuring continuity in leadership.
2. Auditor Appointment: PricewaterhouseCoopers was retained as the auditor, a standard but critical decision for maintaining financial transparency.
3. Say-on-Pay: Executive compensation received majority approval, signaling investor comfort with the company’s incentive structure.
4. Deferred Share Unit Plan: The plan’s approval highlights shareholder trust in equity-based incentives for directors.

The unanimous approvals and high participation rate (83.29% of shares) suggest investors are content with Osisko’s governance and strategy, particularly its focus on high-quality royalties and streams in the precious metals sector.

Strategic Shifts: From Royalties to Development

While the voting results focused on governance, the company’s strategic priorities lie in advancing its Cariboo Gold Project through Osisko Development Corp. (a related entity). The project’s Feasibility Study (2025 FS) revealed compelling economics:
- After-tax NPV5%: $943 million at a $2,400/oz gold price.
- Unlevered IRR: 22.1%, with a 10-year mine life and average annual production of 190,000 ounces.
- Cost Efficiency: Average AISC of US$1,157/oz, positioning Cariboo as a low-cost asset.

The project’s Final Investment Decision (FID) is expected in the coming months, pending financing. Construction could begin as early as late 2025, with completion targeted for end-2027. However, risks remain:
- Permitting Delays: Transmission line approvals are pending, with potential impacts on timelines.
- Gold Price Sensitivity: At a higher $3,300/oz gold price, NPV5% jumps to $2.1 billion, highlighting the project’s leverage to rising prices.

Balancing Risks and Opportunities

Osisko Development’s cash position of $77.6 million (as of Q1 2025) and a $35.7 million term loan provide some liquidity, but securing project financing for Cariboo remains critical. Meanwhile, other projects like Tintic (small-scale production underway) and San Antonio (under strategic review) offer secondary growth avenues.

Conclusion: A Strong Foundation, but Challenges Linger

Osisko’s shareholder meeting results and strategic updates paint a bullish picture for investors. The rebranding to OR Royalties Inc. reflects a shift toward integrating royalty and development assets under a unified strategy. Key data points reinforce this optimism:
- Cariboo’s 22.1% IRR positions it as a high-margin project in a sector starved for such assets.
- 83.29% shareholder participation signals confidence in leadership’s ability to navigate risks.
- Gold price leverage: A 10% increase in gold prices could boost Cariboo’s NPV by $200 million+, amplifying its appeal.

However, execution risks—particularly permitting delays and financing—could test the company’s agility. Investors should monitor Cariboo’s FID timeline and gold price trends closely. For now, Osisko’s strong governance support and project pipeline justify cautious optimism, especially for those betting on a sustained recovery in gold prices.

In sum, OR Royalties Inc. enters its next chapter with the wind at its back, but the true test lies in transforming feasibility studies into cash flows. Shareholders have given management the green light—now it’s up to the team to deliver.