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(Kitco News) – Osisko Gold Royalties (TSX: OR) (NYSE: OR) reported yesterday it earned approximately 23,292 attributable gold equivalent ounces (GEOs) in Q3 2023 (Q3 2022: 23,850 GEOs), including 1,386 GEOs earned from the recently acquired CSA silver stream.
Osisko said the company recorded preliminary Q3 2023 revenues from royalties and streams of C$62.1 million (Q3 2022: C$53.7 million) and preliminary cost of sales (excluding depletion) of C$4.4 million (Q3 2022: C$4.4 million), resulting in a record quarterly cash margin of approximately C$57.7 million or 93% (Q3 2022:C$49.3 million or 92%).
The company added that its cash balance was relatively stable at the end of the third quarter at approximately C$70.8 million, resulting in a net debt position of approximately C$244.6 million as at September 30, 2023, representing an improvement of C$5.0 million despite additional investments in royalties completed during the quarter.
Interim CEO Paul Martin commented, “Osisko delivered a solid quarter of GEOs earned, along with record revenues and cash margin in Q3 despite challenges faced by some of our key operating partners over the past several months. These include the forest fires in northern Canada, other ongoing ramp-up issues, and a notable sharp decline in rough diamond prices.
“While we anticipate improved quarter-over-quarter performance at several of our core producing assets, Renard will continue to be impacted by weak rough diamond prices and, as a result, Osisko is assuming no reportable GEOs from Renard in Q4. As such, we now are guiding towards the low end of our GEO delivery guidance for 2023.”
Osisko is an intermediate precious metal royalty company focused on the Americas that commenced activities in June 2014. Osisko holds a North American focused portfolio of over 180 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its cornerstone asset, a 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada.
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