Osisko Reports Second Quarter 2019 Results and dividend.

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Overig advies 01/08/2019 07:10
MONTRÉAL, July 31, 2019 (GLOBE NEWSWIRE) — Osisko Gold Royalties Ltd (the “Company” or “Osisko”) (OR: TSX & NYSE) today announced its consolidated financial results for the second quarter of 2019.

•Revenues from royalties and streams of $33.8 million compared to $32.9 million in Q2 2018;
•Generated cash flows from operating activities of $21.4 million compared to $19.7 million in Q2 2018;
•Earned 19,651 gold equivalent ounces1 (“GEOs”) compared to 20,506 in Q2 2018;
•Adjusted earnings2 of $8.2 million, $0.05 per basic share2 compared to $3.7 million, $0.02 per basic share in Q2 2018;
•Net loss of $6.5 million, $0.04 per basic share compared to $0.5 million, $0.00 per basic share in Q2 2018;
•Recorded cash operating margins3 of 90% from royalty and stream interests, generating $30.3 million in operating cash flow in the second quarter, in addition to a quarterly cash operating margin of $1.2 million from offtake interests;
•Orion’s ownership of Osisko’s issued and outstanding common shares was reduced from 19.5% to 6.2%;
•Construction of the Eagle gold mine of Victoria Gold Corp. has reached 95% completion rate;
•Closed a senior-secured bridge credit facility together with certain secured lenders and key stakeholders to Stornoway Diamond Corporation (“Stornoway”) to support Stornoway during its strategic review process (up to $2.8 million attributable to Osisko);
•Held $83.6 million in cash, $281.9 million in equity investments4 and up to $450 million availability of undrawn credit facility as at June 30, 2019; and
•Declared a quarterly dividend of $0.05 per common share paid on July 15, 2019 to shareholders of record as of the close of business on June 28, 2019.

For more details, please refer to the Management’s Discussion and Analysis for the three and six months ended June 30, 2019.

Recent Performance

Sean Roosen, Chair and Chief Executive Officer, commented on the activities of the second quarter of 2019: “We are very pleased to have completed one of the most significant share repurchase transactions in our sector during the quarter, having repurchased 8% of our outstanding shares. Since its inception in June 2014, Osisko has returned $320 million to its shareholders through dividends and share buy backs. We believe Osisko is now very well positioned, with the gold price currently rallying at six-year highs, to benefit from substantial growth within its royalty and stream portfolio and deliver growth in our per share metrics over the next years.”

Orion Transaction

Betelgeuse LLC (“Orion”), a jointly owned subsidiary of certain investment funds managed by Orion Resource Partners, closed a secondary offering, pursuant to which a syndicate of underwriters purchased from Orion, on a bought deal basis an aggregate of 9,027,500 common shares (“Secondary Offering”) of Osisko at an offering price of $14.10 per common share5. Concurrently, Osisko has agreed to purchase for cancellation 12,385,717 of its common shares from Orion (“Share Repurchase”) at the same price as the Secondary Offering for a total of $174.6 million (satisfied in cash and direct transfer of certain equity securities held by Osisko). The purchase price per common share to be paid by Osisko under the Share Repurchase was determined to be the Secondary Offering Price. Payment from Osisko to Orion consisted of a combination of cash ($129.5 million) and the direct transfer of investments in associates and other investments held by Osisko ($45.1 million).

Benefits of the transaction to Osisko:
•8% reduction in the number of Osisko’s issued and outstanding common shares at an attractive price, resulting in an immediate positive impact on Osisko’s earnings per share and cash flow per share;
•Monetization of certain less liquid equity positions held by Osisko;
•Overall reduction in the weight of Osisko’s equity portfolio in relation to the overall size of the business;
•Positive impact on demand from index funds; and
•Reduction in expected annual dividend payments by $2.5 million.

On June 28, 2019, Osisko and Orion completed the first tranche of the Share Repurchase. A total of 7,319,499 common shares of Osisko were acquired from Orion and subsequently cancelled. A portion of the purchase price of $103.2 million for the first tranche of the Share Repurchase was paid in cash (from the sale of all of the common shares held by Osisko in Dalradian Resources Inc. to another entity managed by Orion Resource Partners) and a portion was paid in the form of the transfer from Osisko to Orion of investments in associates and other investments.

The second tranche of the Share Repurchase closed on July 15, 2019 for the acquisition and cancellation of 5,066,218 common shares of Osisko. The purchase price of $71.4 million was paid in cash (from the sale of all of the common shares held by Osisko in Victoria Gold Corp. to another entity managed by Orion Resource Partners). During the three months ended September 30, 2019, a gain of $1.7 million will be recognized in the consolidated statement of income (loss) for the difference between the carrying value of the Victoria shares (presented as asset held of sale as at June 30, 2019) and the liability for share repurchase.

Company Settlement First Tranche Value Second Tranche Value

Dalradian Resources Inc. Cash $58.1 million
Victoria Gold Corp. Cash $71.4 million
Aquila Resources Inc. Transfer $9.7 million
Highland Copper Company Inc. Transfer $3.0 million
Other investments Transfer $32.4 million

$103.2 million $71.4 million

The transaction costs related to the Share Repurchase and Secondary Offering were reimbursed by Orion.

Osisko’s 2019 outlook on royalty, stream and offtake interests is based on publicly available forecasts, in particular the forecasts for the Canadian Malartic mine published by Yamana Gold Inc. and Agnico Eagle Mines Limited, for the Éléonore mine published by Newmont Goldcorp Corporation, and for the Renard mine published by Stornoway Diamond Corporation. When publicly available forecasts on properties are not available, Osisko obtains internal forecasts from the producers, which is the case for the Mantos Blancos mine, or uses management’s best estimate.

Attributable GEOs for 2019 remains unchanged from previous guidance. GEOs and cash margin by interest are estimated as follows:
Low High Cash margin
(GEOs) (GEOs) (%)

Royalty interests 54,700 61,100 99.9
Stream interests 28,000 31,300 65.5
Offtake interests 2,300 2,600 1.2
85,000 95,000

For the 2019 guidance, silver, diamonds and cash royalties have been converted to GEOs using commodity prices of US$1,300 per ounce of gold, US$15.50 per ounce of silver and US$95 per carat for diamonds from the Renard mine (blended sales price) and an exchange rate (US$/C$) of 1.30.

Q2 2019 Results Conference Call

Osisko will host a conference call on Thursday, August 1, 2019 at 10:00 am EDT to review and discuss its Q2 2019 results.

MONTREAL, July 31, 2019 (GLOBE NEWSWIRE) — Osisko Gold Royalties Ltd (“Osisko” or the “Company”) (TSX:OR) (NYSE:OR) is pleased to announce a third quarter 2019 dividend of C$0.05 per common share. The dividend will be paid on October 15, 2019 to shareholders of record as of the close of business on September 30, 2019.

For shareholders residing in the United States, the U.S. dollar equivalent will be determined based on the daily rate published by the Bank of Canada on September 30, 2019. This dividend is an “eligible dividend” as defined in the Income Tax Act (Canada).

Sean Roosen, Chair and Chief Executive Officer of Osisko, commented: “We are happy to declare our 20th consecutive dividend payment. With this dividend payment, we will have proudly returned a total of over $100 million to shareholders since inception of the Company in 2014.”

The Company also wishes to remind its shareholders that it has implemented a dividend reinvestment plan (the “Plan”). Shareholders who are residents of Canada and the United States may elect to participate in the Plan in connection with the dividend to be paid on October 15, 2019 to shareholders on record as of September 30, 2019. If a shareholder elects to participate in the Plan, the Company will issue to the shareholder, in lieu of a cash dividend, common shares from treasury at a 3% discount to the weighted average price of the common shares during the five (5) trading days immediately preceding the dividend payment date. Participation in the Plan is optional and will not affect a shareholders’ cash dividends if the shareholder elects not to participate in the Plan. Quarterly dividends are only payable as and when declared by Osisko’s Board of Directors.

A complete copy of the Plan and the enrolment form are available on Osisko’s website at http://osiskogr.com/en/dividends/drip/. Shareholders should carefully read the complete text of the Plan before making any decisions regarding their participation in the Plan.

Non-registered beneficial shareholders who wish to participate in the Plan should contact their financial advisor, broker, investment dealer, bank or other financial institution that holds their common shares to inquire about the applicable enrolment deadline and to request enrolment in the Plan. For more information on how to enroll or any other inquiries, contact the Agent at 1-800-387-0825 (toll-free in Canada) or inquiries@canstockta.com.

Participation in the Plan does not relieve shareholders of any liability for taxes that may be payable in respect of dividends that are reinvested in common shares under the Plan. Shareholders should consult their tax advisors concerning the tax implications of their participation in the Plan having regard to their particular circumstances.

This press release is not an offer or a solicitation of an offer of securities.

About Osisko Gold Royalties Ltd

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