Osisko increases Q3 dividend by 25%

JOHANNESBURG (miningweekly.com) – TSX- and NYSE-listed gold miner Osisko Gold has declared a third-quarter dividend of C$0.05 a common share, representing a 25% increase from the previous quarterly dividend of C$0.04 a common share.

CEO Sean Roosen noted that the continued strong performance of the company’s portfolio of assets and further growth has enabled Osisko to maintain a strong capital position and enable it to return capital to shareholders.

"Our efforts during the quarter were focused on entering and completing the transformational acquisition of the portfolio of royalties, streams and offtake assets from Orion,” he said.

On July 31, Osisko acquired a precious metals portfolio of assets from Orion Mine Finance Group comprising 61 royalties, seven precious metal offtakes and six streams for $506.8-million in cash, representing the agreed upon purchase price of $500.6-million plus an initial estimate of $6.2-million for the amounts received by Orion since June 1.

The combination of Osisko and Orion's portfolios results in Osisko holding a total of 131 royalties, streams and precious metal offtakes, including 16 revenue-generating assets.

Through the transaction, the company gained a 9.6% diamond stream on the Renard diamond mine and a 4% gold and silver stream on the Brucejack gold and silver mine, all of which are new mines in Canada, in addition to a 100% silver stream on the Mantos Blancos copper mine in Chile.

In the quarter under review, Osisko earned a record 12% year-on-year increase in gold equivalent ounces of 10 863, and recorded a 16% year-on-year increase in revenue to $18.4-million, up 16% from $15.8-million achieved in the second quarter of 2016.

Gross profit saw a 13% increase year-on-year, from $12.8-million in 2016 to $14.4-million in 2017.

However, net cash flows provided by operating activities amounted to $14.1-million, compared with $15.9-million in the second quarter of 2016, while net earnings attributable to Osisko shareholders of $11-million, or $0.10 a share, did not stack up against the $15.7-million, or $0.15 a share, achieved in the prior year’s comparable quarter.

Osisko’s adjusted earnings amounted to $7.1-million, or $0.07 a share, compared with $6.6-million, or $0.06 a share, in the comparable quarter.