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Osisko Gold Royalties (OR) Closes Metal Stream Transaction

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Osisko Gold Royalties Ltd. (OR - Free Report) announced that its wholly-owned subsidiary, Osisko Bermuda Limited (“OBL”), closed the previously announced Metals Streams purchase agreement with Metals Acquisition Limited (MTAL - Free Report) .

The purchase was completed concurrently with MAC acquiring the producing CSA mine from a subsidiary of Glencore plc (GLNCY - Free Report) .

OBL made a $75-million cash payment to MAC for the silver stream and a $75-million cash deposit for the copper stream.

The deal was closed on Jun 15, 2023.

CSA is an underground copper-silver mine in New South Wales, Australia, with a high grade and a long life. It has a track of reserve and resource replacement, having replaced more than 100% of mined reserves since 2011. The recent $130-million investment is expected to support mine life extensions beyond 15 years.

OBL will buy refined silver equal to 100% of payable silver for the life of the mine starting effectively from Feb 1, 2023. This enhances immediate cash flow for OBL.

Starting from Jun 15, 2024, OBL will purchase refined copper at a rate of 3%-4.875 % of payable copper until 33,000 metric tons of refined copper have been provided. Following that, OBL will buy refined copper at a 2.25% rate for the remainder of the mine's life.

MAC estimates the mine to produce 428,000 ounces of yearly payable silver and 46,000 metric tons of payable copper between 2023 and 2025.

In the March-end quarter, the company reported earnings per share of 13 cents, beating the Zacks Consensus Estimate of 11 cents. The Zacks Consensus Estimate for OR’s 2023 earnings is pegged at 47 cents, indicating a decline of 2.1% from the prior-year reported figure.

Price Performance

In the past year, shares of Osisko Gold Royalties have gained 40.3% compared with the industry’s 8.2% growth.


Zacks Investment Research
Image Source: Zacks Investment Research


Zacks Rank & Another Stock to Consider

Osisko Gold Royalties currently carries a Zacks Rank #2 (Buy).

Another top-ranked stock in the basic materials space is Gold Fields Limited (GFI - Free Report) , which currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Gold Fields’ fiscal 2023 earnings per share is pegged at $1.01. Earnings estimates have moved 6.3% north in the past 60 days. GFI’s shares have gained 50.9% in the past year.

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