Osisko Gold Royalties OR disclosed a few details on preliminary deliveries, revenues and cash margins for the fourth quarter and 2024.
Osisko Gold Achieves 2024 Targets Despite Challenges
OR reported 20,005 attributable gold equivalent ounces (“GEOs”) for the fourth quarter of 2024. This brings the total GEOs for 2024 to 80,740, within the company’s guided 77,000-83,000 GEOs.
However, GEOs declined 14% from 2023, reflecting the impacts of the closure of the Renard diamond mine in the fourth quarter of 2023 and the Eagle mine on June 24, 2024, following a slope failure at its heap leach pad facility.
OR Reports Record 2024 Preliminary Revenues on Higher Prices
Preliminary revenues from royalties and streams for the fourth quarter were C$79.3 million ($56.7 million). Preliminary cost of sales (excluding depletion) came in at C$3.1 million ($2.2 million) in the quarter. OR reported a record quarterly cash margin of C$76.3 million ($54.6 million). The cash margin was 96.2%.
For 2024, preliminary revenues from royalties and streams reached a record C$262.2 million ($191.2 million). The company reported revenues of C$247.3 million ($171.8 million) from royalties and streams in 2023. The impacts of the year-over-year decline in GEOs on Osisko Gold’s revenues were offset by higher gold, silver and copper prices.
The preliminary cost of sales (excluding depletion) for 2024 is estimated at C$9.3 million ($6.7 million). The company reported a record annual cash margin of C$252.9 million ($184.4 million) or 96.5%.
OR will reveal further details when it reports its fourth quarter and 2024 results on Feb. 19, 2025, after market close.
Osisko Gold’s Recent Updates
Boosts Gibraltar Silver Stream: Osisko Gold recently announced an amendment to its silver stream by increasing its attributable silver percentage by 12.5% to 100% with respect to the Gibraltar copper mine.
The mine is operated by a wholly-owned subsidiary of Taseko Mines Limited TGB. Osisko Gold and Taseko extended the step-down silver delivery threshold to 6,811,603 ounces delivered. In exchange for these amendments, OR paid an additional deposit amount of $12.7 million to Taseko.
Closed Dalgaranga Royalty Deal: Osisko Gold closed the previously announced acquisition of 1.8% gross revenue royalty on the Dalgaranga Gold project for $44 million. OR also acquired a 1.35% gross revenue royalty on additional regional exploration licenses in proximity to Dalgaranga for $6 million.
As of Dec. 31, 2024, Osisko Gold’s cash position was CAD85 million ($59.1 million).
OR Stock’s Price Performance
In the past year, shares of the company have gained 34.8% compared with the industry’s 20.2% growth.
Image Source: Zacks Investment Research
Osisko Gold’s Zacks Rank
OR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q4 & FY24 Preliminary Performance of Another Gold Stock
Sandstorm Gold Ltd. SAND recently disclosed a few details regarding the sale of attributable gold equivalent ounces (GEOs), preliminary revenues, and cash operating margins for the fourth quarter and 2024. Fourth-quarter preliminary revenues rose 7% year over year to $47.4 million. However, SAND witnessed a 2% dip in 2024 preliminary revenues to $176 million, which fell short of the Zacks Consensus Estimate of $179.65 million. The cash operating margin was $2,397 per attributable GEO in the quarter under review, rising 38% year over year.
Sandstorm Gold sold nearly 17,700 attributable GEOs in the fourth quarter. This marks a 24% decline from the 23,250 ounces of GEOs sold in fourth-quarter 2023. Through 2024, Sandstorm Gold sold nearly 72,800 attributable GEOs, a 25% year-over-year decline. The cash operating margin increased 23% year over year to $2,097 per attributable GEO in 2024.
Stock to Consider
A better-ranked stock from the basic materials space is Carpenter Technology Corporation CRS, which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has an average trailing four-quarter earnings surprise of 14.1%. The Zacks Consensus Estimate for CRS’s fiscal 2025 earnings is pegged at $6.77 per share, suggesting 42.8% year-over-year growth. Its shares have skyrocketed 187% in a year.
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Osisko Gold Royalties Ltd (OR) : Free Stock Analysis Report
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