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Osisko (OR) Raises Silver Stream in Gibraltar Copper Mine
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Osisko Gold Royalties (OR - Free Report) has increased its silver stream percentage in the long-life Gibraltar copper mine to 87.5%. The mine, located in British Columbia, Canada, is operated by Taseko Mines Limited’s wholly-owned subsidiary. Taseko currently owns an 87.5% stake in the Gibraltar mine.
Osisko and Taseko have amended the silver stream in the mine per which, Osisko’s effective stream percentage in the mine is now at 87.5%, up from the prior 70%. Osisko and Taseko have also extended the step-down silver delivery threshold. This is in sync with Taseko’s recently updated mineral reserve estimate for Gibraltar. Osisko will provide total consideration of $10.25 million to Taseko and C$50,000 annually (approximately $37695) for the next three years to help support ongoing environmental, social and corporate governance (ESG) initiatives at Gibraltar.
Osisko Gold also recently announced that it has entered into a binding agreement to acquire a 1.0% copper net smelter return (“NSR”) royalty and a 3.0% gold NSR royalty from Hot Chili Limited for a total cash consideration of $15 million. This pertains to Hot Chili’s Costa Fuego Copper-Gold Project in Chile.
Costa Fuego, located in Chile, is one of the world’s largest undeveloped copper projects and has the scope to be a long-life, lower-cost copper mine. Significant by-product credits, low elevation and close proximity to key infrastructure are its added benefits.
Osisko Gold also recently announced that its wholly-owned subsidiary, Osisko Bermuda Limited (“OBL”), closed the Metals Streams purchase agreement with Metals Acquisition Limited (MTAL - Free Report) .
OBL made a $75 million cash payment to Metals Acquisition for the silver stream and a $75 million cash deposit for the copper stream. 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.
In the first quarter of 2023, Osisko Gold reported earnings per share of 13 cents, beating the Zacks Consensus Estimate of 11 cents. The consensus estimate for OR’s 2023 earnings is pegged at 47 cents per share, indicating a decline of 2.1% from the prior-year reported figure. The consensus estimate for second-quarter earnings is at 13 cents per share, suggesting a solid improvement from the loss of 2 cents per share in the year-ago quarter.
Price Performance
In the past year, shares of Osisko Gold Royalties have gained 44.9%, compared with the industry’s 10% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Osisko Gold Royalties currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for FSTR's current-year earnings has been stable over the past 60 days. L.B. Foster’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 140.5%, on average. FSTR’s shares have gained around 11% in a year.
The consensus estimate for KOP’s current-year earnings has been stable over the past 60 days. The consensus estimate for current-year earnings for KOP is currently pegged at $4.40 per share, reflecting an expected year-over-year growth of 6.3%. Koppers’ shares have rallied roughly 48% in the past year.
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Osisko (OR) Raises Silver Stream in Gibraltar Copper Mine
Osisko Gold Royalties (OR - Free Report) has increased its silver stream percentage in the long-life Gibraltar copper mine to 87.5%. The mine, located in British Columbia, Canada, is operated by Taseko Mines Limited’s wholly-owned subsidiary. Taseko currently owns an 87.5% stake in the Gibraltar mine.
Osisko and Taseko have amended the silver stream in the mine per which, Osisko’s effective stream percentage in the mine is now at 87.5%, up from the prior 70%. Osisko and Taseko have also extended the step-down silver delivery threshold. This is in sync with Taseko’s recently updated mineral reserve estimate for Gibraltar. Osisko will provide total consideration of $10.25 million to Taseko and C$50,000 annually (approximately $37695) for the next three years to help support ongoing environmental, social and corporate governance (ESG) initiatives at Gibraltar.
Osisko Gold also recently announced that it has entered into a binding agreement to acquire a 1.0% copper net smelter return (“NSR”) royalty and a 3.0% gold NSR royalty from Hot Chili Limited for a total cash consideration of $15 million. This pertains to Hot Chili’s Costa Fuego Copper-Gold Project in Chile.
Costa Fuego, located in Chile, is one of the world’s largest undeveloped copper projects and has the scope to be a long-life, lower-cost copper mine. Significant by-product credits, low elevation and close proximity to key infrastructure are its added benefits.
Osisko Gold also recently announced that its wholly-owned subsidiary, Osisko Bermuda Limited (“OBL”), closed the Metals Streams purchase agreement with Metals Acquisition Limited (MTAL - Free Report) .
OBL made a $75 million cash payment to Metals Acquisition for the silver stream and a $75 million cash deposit for the copper stream. 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.
In the first quarter of 2023, Osisko Gold reported earnings per share of 13 cents, beating the Zacks Consensus Estimate of 11 cents. The consensus estimate for OR’s 2023 earnings is pegged at 47 cents per share, indicating a decline of 2.1% from the prior-year reported figure. The consensus estimate for second-quarter earnings is at 13 cents per share, suggesting a solid improvement from the loss of 2 cents per share in the year-ago quarter.
Price Performance
In the past year, shares of Osisko Gold Royalties have gained 44.9%, compared with the industry’s 10% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Osisko Gold Royalties currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space are L.B. Foster Company (FSTR - Free Report) and Koppers Holdings Inc. (KOP - Free Report) . L.B. Foster currently sports a Zacks Rank #1 (Strong Buy) and Koppers currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FSTR's current-year earnings has been stable over the past 60 days. L.B. Foster’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 140.5%, on average. FSTR’s shares have gained around 11% in a year.
The consensus estimate for KOP’s current-year earnings has been stable over the past 60 days. The consensus estimate for current-year earnings for KOP is currently pegged at $4.40 per share, reflecting an expected year-over-year growth of 6.3%. Koppers’ shares have rallied roughly 48% in the past year.