TORONTO (miningweekly.com) – Precious metals royalty company Osisko Gold Royalties has reported a profit of C$28.5-million, or net earnings a share of C$0.33 for the full-year 2015, compared with a net loss of C$2.1-million, or C$0.05 a share, in 2014.
Revenues in 2015 totalled C$45.4-million, compared with C$17.2-million in 2014.
For the fourth quarter ended December 31, Osisko's net earnings amounted to C$4.5-million, or $0.05 a share, compared with a net loss of C$2.2-million, or C$0.04 a share, in the fourth quarter of 2014.
Revenues in the fourth quarter totalled C$12.8-million, derived from the sale of gold and silver from the net smelter return (NSR) royalties received from the Canadian Malartic and Éléonore mines, compared with C$7.6-million in the fourth quarter of 2014.
Osisko, through its wholly owned subsidiary Osisko Exploration James Bay (formerly Virginia Mines), owned a 2% to 3.5% NSR royalty in the Éléonore gold property, located in Quebec and operated by Goldcorp. The company advised that it had received its first gold delivery from its Éléonore NSR royalty in December, and sold these ounces during the month. Virginia had received advance royalty payments of $5-million from 2009 to 2013 for the Éléonore NSR royalty. The advance payment received was reduced to nil through royalty payment calculations in November for a total of 4 328 oz of gold.
The Osisko team was credited with the development of the Canadian Malartic mine, in Quebec, which ranked as one of the country’s largest gold mines. Osisko Gold Royalties was spun out of parent Osisko Mining as part of a C$3.9-billion takeover deal by Agnico Eagle Mines and Yamana Gold.
The new company received some of Osisko Mining’s noncore assets, a 5% NSR royalty on the Canadian Malartic mine; a 2% NSR royalty on all existing exploration properties, including Kirkland Lake, Hammond Reef, and Pandora assets; C$155-million cash; all assets and liabilities of Osisko in the Guerrero camp; as well as certain other investments. The company had been steadily adding additional royalties to its portfolio.
It had recently closed a C$50-million financing with Ressources Québec, which had subscribed to a convertible debenture that would mature in five years and bear interest at a yearly rate of 4%, payable quarterly.
The company had also recently closed a bought-deal offering of 11.43-million units at C$15.10 each, for gross proceeds of C$172.6-million. Osisko planned to use the net proceeds from the offering for working capital and general corporate purposes, including funding resource royalty and stream acquisitions.