Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Streetwise Reports (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Mining Royalty Co. Posts Best Cash Margins to Date

% of readers think this story is Fact. Add your two cents.


Source: Kerry Smith   11/22/2022

Also, operating cash flow was a beat during this strong quarter for the Quebec-based firm, noted a Haywood Securities report.

Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE) had “a solid third quarter” of 2022 with record cash margins and higher-than-expected operating cash flows, reported Haywood Securities analyst Kerry Smith in a November 10, 2022 research note.

“We recommend accumulating shares at current levels,” Smith wrote and summarized Osisko’s financials for the quarter.

Best-Ever Cash Margins

The Quebec-based royalty company achieved CA$49.3 million (CA$49.3M), or 92%, in cash margins in Q3/22. This was based on CA$ 53.7M of revenue generated, reflecting a 4.1% increase from the previous quarter.

Osisko received 23,850 attributable gold equivalent ounces (GEOs). Of these, 65% were gold, 20% were silver, and 14% were diamonds. The Malartic mine stream delivered the most GEOs during Q3/22, at 31% of the total.

Total Q3/22 GEOs were up 7.2% from Q2/22 but fell short of Haywood’s estimate by 3%.

“For 2022, we estimate cash flow of CA$0.93 per share,” Smith wrote.

“Deliveries are expected to increase incrementally through the year as Mantos and Eagle continue to ramp up toward nameplate capacity,” Smith wrote.

Management maintained guidance for full-year 2022 of 90,000–95,000 GEOs, and Haywood forecasts 90,000 GEOs. At Q3/22′s end, Smith noted, Osisko was trending toward the lower end of guidance.

Cash Flow Is a Beat

In Q3/22, Osisko generated CA$44.2M in cash flow from operations before changes in working capital or CA$0.24 per share. This was more than both consensus and Haywood’s projections of CA$0.20 and of CA$0.22 per share, respectively.

“For 2022, we estimate cash flow of CA$0.93 per share,” Smith wrote.

During Q3/22, Osisko paid out its CA$0.055 per share dividend. At the quarter’s end, the mining company had CA$300.5M in cash, a CA$550M undrawn credit facility with a further CA$200M accordion, and CA$300M in convertible debentures that mature at the end of this year.

Significant Upcoming Events

Osisko Gold has a handful of catalysts slated to happen in Q4/22. They are a reserves and resources report on Tintic, feasibility studies on the Cariboo mine and the Windfall Lake project, and the closing of Osisko’s acquisition of a silver stream on the CSA mine.

Haywood has a Buy rating and a CA$25 per share target price on Osisko Gold, the current share price of which is about CA$16.75.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosures:
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. 

Disclosures For Haywood Capital Markets, Osisko Gold Royalties, November 7, 2022

Analyst Certification: I, Kerry Smith, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures: Of the companies included in the report the following Important Disclosures apply:

Haywood Securities, Inc. has reviewed lead projects of this company and a portion of the expenses for this travel may have been reimbursed by the issuer.

Haywood Securities Inc. or one of its subsidiaries has managed or co-managed or participated as selling group in a public offering of securities for this company in the past 12 months.

( Companies Mentioned: OR:TSX; OR:NYSE, )


Source: https://www.streetwisereports.com/article/2022/11/22/mining-royalty-co-posts-best-cash-margins-to-date.html


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.