“First quarter deliveries were above our expectations as our portfolio continued to perform well. We are particularly pleased with the quarter given that our GEOs grew by 6% over the fourth quarter, despite the planned deferment of ore stacking at the Eagle mine (held by Victoria Gold (TSX: VGCX)) during the winter months,” Sandeep Singh, Osisko Royalties president and CEO, said in a release.
Singh added that production from Eagle is expected to ramp up throughout 2021.
Additional production and financial details will be provided with the company’s complete first-quarter results release, scheduled for May 11.
A research note by BMO Capital Markets’ Jackie Przybylowski notes that the latest results are “broadly in line with Street expectations on shipments, revenue, and costs.” The mining analyst has a C$20 per share target on the stock with a ‘market perform’ rating.
Nevada asset additions include four royalties on the pre-feasibility stage heap leach Spring Valley project held by private equity firm Waterton Global Resource Management and a separate 1% NSR (net smelter return) royalty on the 20-sq.-km Moonlight exploration project, also owned by Waterton, just north of Spring Valley.
At Spring Valley, Osisko is acquiring four royalties: a sliding scale 2.5% NSR (the maximum 2.5% royalty kicks in at gold prices above $700 per oz.) payable once 500,000 gold oz. have been recovered from the project that covers the core of the Spring Valley deposit. Adding to an existing 0.5% NSR, the royalty company now holds a 3% royalty on the core claims.
Also at the heap leach project, Osisko has added two 1% NSR royalties, for a total of 2%, on Spring Valley claims that cover the northeast part of the deposit as well as a 0.5% NSR on the broader property and add to the two 1% royalties.
With these additions, Osisko’s overall NSR holding on Spring Valley has increased to between 2.5% and 3%, up from 0.5% previously. Historic resources at this open pittable project total 49 million tonnes at 0.94 g/t gold in the measured category, 80 million tonnes grading 0.79 g/t gold in the indicated category and 21 million tonnes at 0.73 g/t gold in the inferred category.
In Idaho, Osisko has agreed to acquire a 0.5% NSR royalty and a 30% precious metal offtake on Gold Mining’s (TSX: GOLD, NYSE: GLDG) low-sulphidation Almaden deposit.
This year, Osisko Gold Royalties expects to receive 78,000 to 82,000 GEOs, from a combination of royalty, stream and offtake interests. The company’s North American-focused portfolio includes over 150 royalties, streams and precious metal offtakes with a cornerstone 5% NSR on the Canadian Malartic mine in Quebec, held by Yamana Gold (TSX: YRI; NYSE: AUY) and Agnico Eagle Mines (TSX, NYSE: AEM).
(This article first appeared in the Canadian Mining Journal)