Osisko Gold Ro (OR)

History and Background

Osisko Gold Royalties Ltd (OR) was created in June 2014 following the acquisition of Osisko Mining Corporation by Yamana Gold and Agnico Eagle Mines. It focuses on gold royalties and streams.

Core Business Areas

• Royalties and Streams: Acquiring and managing royalties and streams on producing and developing mines, primarily focused on gold and other precious metals.
• Strategic Investments: Investing in mining companies and projects to create value and generate returns.

Leadership and Structure

Sean Roosen is the Chair and CEO. The company has a board of directors and a management team responsible for operations, finance, and exploration.

Key Offerings

• Royalty on Canadian Malartic: Osisko Gold Royalties holds a 5% net smelter return (NSR) royalty on the Canadian Malartic mine, one of Canada's largest gold mines. Competitors in this area involve other royalty companies like Franco-Nevada and Wheaton Precious Metals, who also compete for acquiring precious metals rights.
• Royalty on Eleonore Mine: Osisko holds a royalty on the Eleonore mine, a gold mine in Quebec. The competitors are the same as above: other royalty companies buying precious metals rights.
• Other Royalties and Streams: A portfolio of various other royalties and streams on a range of mining projects.

Industry Overview

The gold royalty and streaming industry involves companies that provide upfront capital to mining companies in exchange for a percentage of future production or revenue. The industry is influenced by gold prices, mining project development, and geopolitical factors.

Positioning

Osisko Gold Royalties is a mid-tier royalty and streaming company. Its competitive advantage lies in its strong portfolio of royalties, particularly on Canadian Malartic, and its expertise in evaluating and acquiring new royalties and streams.

Total Addressable Market (TAM)

The TAM for gold royalty and streaming is difficult to quantify precisely but is estimated to be in the billions of dollars, considering the overall mining finance and gold market. Osisko Gold Royalties is positioned to capture a portion of this market through strategic acquisitions and partnerships.

Key Competitors

• FNV
• WPM
• SAND

Competitive Landscape

Osisko Gold Royalties is smaller than Franco-Nevada and Wheaton Precious Metals but larger than Sandstorm Gold. It differentiates itself through its Canadian focus and its expertise in evaluating and acquiring royalties and streams. It needs to continue to source new assets and diversify its production.

Various Royalties

• Year: 2023
• Acquisition Price (USD millions): 250
• Strategic Rationale: Expanded royalty portfolio in key mining regions.

Historical Growth: Historical growth can be assessed based on past royalty revenue, production from underlying mines, and acquisition activity.

Future Projections: Future projections would be based on analyst estimates, expected production from existing and new royalties, and gold price forecasts.

Recent Initiatives: Recent initiatives may include acquisitions of new royalties and streams, strategic investments in mining companies, and exploration activities.

Osisko Gold Royalties is a mid-tier royalty and streaming company with a solid portfolio of assets, particularly in Canada. Its reliance on commodity prices and the performance of operating mines poses inherent risks. Strategic acquisitions and partnerships remain crucial for future growth. Osisko is slightly weaker than FNV and WPM due to its small Market Share, but needs to look out for the price of Gold and if its investments are going to pay dividends.

Data Sources:

• Company Filings
• Analyst Reports
• Industry Publications

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Market data is subject to change. Investors should conduct their own due diligence before making investment decisions.