• Gold Equivalent Ounces (GEOs) Q4 2024: 20,005 GEOs.
• Total GEOs 2024: 80,740 GEOs, slightly above the midpoint of revised guidance (77,000 to 83,000 GEOs).
• Annual Revenue 2024: $191.2 million.
• Cash Margin 2024: 96.5%.
• Cash at Year-End 2024: $59 million.
• Net Debt at Year-End 2024: Just under $35 million.
• Quarterly Dividend Q4 2024: $6.05 per share.
• Net Earnings 2024: $0.09 per share.
• Adjusted Earnings 2024: $0.52 per common share.
• Producing Assets at Year-End 2024: 21 assets.
• Precious Metals GEOs 2024: 93% from precious metals (67% gold, 27% silver).
• 2025 GEOs Guidance: 80,000 to 88,000 GEOs.
• 2025 Cash Margin Guidance: Approximately 97%.
• Total Debt at Year-End 2024: Just under $94 million.

• Warning! GuruFocus has detected 5 Warning Sign with OR.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Osisko Gold Royalties Ltd (NYSE:OR) achieved record annual revenues of $191.2 million with a peer-leading cash margin of 96.5%.
• The company ended 2024 with $59 million in cash and net debt of just under $35 million, after paying down almost $85 million against its revolving credit facility.
• Osisko Gold Royalties Ltd (NYSE:OR) declared and paid its 41st consecutive quarterly dividend, returning over 360 million Canadian dollars to shareholders.
• The company completed nearly $300 million in transactions in 2024, marking the second consecutive year of significant capital deployment.
• Osisko Gold Royalties Ltd (NYSE:OR) has a robust pipeline and expects to complete at least one or two meaningful transactions in 2025.

Negative Points

• The growth trajectory for 2025 is expected to be less steep than previously anticipated.
• Performance from Capstone's Mantos Blancos operation experienced a year-over-year decrease due to milling rates below expected levels.
• The company's 2025 guidance reflects a back-half weighted delivery of GEOs, with a weaker Q1 anticipated.
• The updated 2029 outlook is lower than the previous year's 2028 outlook due to the absence of the Eagle mine.
• Progress on the Eagle mine is slower than expected, affecting the company's growth projections.

Q & A Highlights

Q: Can you clarify the production profile for 2025, particularly regarding the distribution of GEOs throughout the year? A: We don't provide quarter-to-quarter guidance, but Q1 is expected to be the weakest due to Canadian Malartic's performance. Q2 should see improvement, with 45% of GEOs delivered in the first half and 55% in the second half, with stronger quarters in Q3 and Q4.

Q: What are the current opportunities for transactions, and how do you view syndication? A: We are open to syndicated deals, as demonstrated by our 2024 deal with Franco. This allows us to consider larger transactions, potentially around $1 billion. The opportunity set is robust, particularly in the copper space, although some projects are paused due to market conditions.

Q: How do you prioritize capital allocation between dividends and share buybacks? A: Our primary focus is acquiring high-quality assets. We aim to maintain a dividend payout of 20-25% of operating cash flow. Share buybacks are considered when there's a perceived value dislocation, but dividends remain a priority.

Q: Are you seeing more opportunities in development or production, and what is the timeline for these opportunities? A: Our focus is on cash-flowing assets or those impacting our five-year outlook. Most opportunities are in the $50 to $500 million range, with a preference for assets that will contribute within this timeframe.

Q: Would you consider exchanging copper assets for gold assets if the opportunity arose? A: We are open to transactions that are accretive to shareholder value. While we are primarily a precious metals vehicle, we have a positive view on copper. If a beneficial swap for gold assets arises, we would consider it.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.