Entering text into the input field will update the search result below

Osisko Gold Royalties: Too Early To Call

Mar. 09, 2020 3:23 AM ETOsisko Gold Royalties Ltd (OR), OR:CA9 Comments
Fun Trading profile picture
Fun Trading


  • Osisko Gold Royalties posted a revenue of US$38.66 million in the fourth quarter of 2019, down 55.7% from the same quarter a year ago and down 53.1% sequentially.
  • Osisko Gold Royalties produced 20,479 GEOs in the fourth quarter of 2019, up 2.4% from 4Q'18 and up 13% sequentially.
  • OR is an excellent trading tool, but it is perhaps time to keep a long-term position on any weakness at or below $8.
  • Looking for a helping hand in the market? Members of The Gold And Oil Corner get exclusive ideas and guidance to navigate any climate. Get started today »

Courtesy: Mining Journal

Investment Thesis

Montreal-based Osisko Gold Royalties (NYSE:OR) has been performing quite well since early 2019, but this positive performance ended abruptly at the end of September.

The company has been very aggressive in its search for expansion and built the right growth profile, which seems appealing to long-term investors. But, expanding in new projects is risky and can turn to a painful loss.

On the bright side of the coin, the company owns an extensive asset portfolio concentrated in North America, offering extra safety and clarity. The company's streaming and royalties business is based mainly on gold, which represented 67.62% of the total output in 2019.

Note: Osisko Gold Royalties owns about 103 assets in North America (e.g., Éléonore, Renard, Lamaque, and Canadian Malartic mines being the top producers, with Island Gold soon), and now over 135 royalty stream and offtake assets.

Another positive element when it comes to the balance sheet is that the debt load has been reduced quite significantly in 2018 and could go lower in 2020, owing to the gold price reaching new records.

Finally, the company is paying a dividend of about ~$US 0.20 per share or a yield of 1.73%.

Sean Roosen, the CEO, said in the conference call:

2019, big year for Osisko and lots of things going on within the portfolio and at the management level. Q4 started as a pretty good end of the year with over 20,000 GEOs earned in the fourth quarter and for a total of 78,006 GEOs earned into the 2019 period, which has actually met our guidance for 2019.

Osisko Gold Royalties: A Highly Diversified Portfolio with Focus on North America

According to the last presentation, Canadian gold assets represent 75% of the total assets owned by the company. It is a crucial element when

Join my "Gold and Oil Corner" today, and discuss ideas and strategies freely in my private chat room. Click here to subscribe now.

You will have access to 57+ stocks at your fingertips with my exclusive Fun Trading's stock tracker. Do not be alone and enjoy an honest exchange with a veteran trader with more than thirty years of experience.

"It's not only moving that creates new starting points. Sometimes all it takes is a subtle shift in perspective," Kristin Armstrong.

Fun Trading has been writing since 2014, and you will have total access to his 1,865 articles and counting.

This article was written by

Fun Trading profile picture
Fun Trading is a retired engineer and independent investor. In addition to writing on investing in all aspects of gold, oil, and gas, he runs his own portfolio..

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I trade short term the stock occasionally

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (9)

Bought at 5,28, cant be wrong that. I think it was the final drop, all the weak hands out yesterday
Fun Trading profile picture

We will see... This market is totally unpredictable.

There are dips and there are routs. There is also opportunist buying and there is throwing valuable money away. Many 'regular' stocks are recovering today but miners remain in a deep dark and seemingly endless hole, with (continued) falls of over 10% on some stocks as I write - GOLD at $15.90 (ooops - now $15.70...), PAAS at $14.80, KGC at $3.65, SAND at $4, even beloved KL at $23 etc etc. The fall in smaller more speculative PM stocks is obscene.

I can understand the initial dip as investors were forced to liquidate for cash etc. However that reason has passed. Of course gold is falling too, but the continued fall in miners seems to go beyond that - now it just seems that everyone hates PM miners, irrespective of how profitable they are. Also it was pointless buying miners over the past year - they are all much cheaper now!!! I think a lot of PM investors are very worried and very frustrated indeed - this was not in the instructions manual.

I would love to say we live and learn, but I am not learning anything.
Fun Trading profile picture
@Norman Bates at Disneyland

Good comment and I totally agree. I do not quite comprehend why gold miners are selling off as we speak, however, while I am not buying much oil stocks now beside RDS.B, BP, I am accumulating the gold miners for obvious reason. They are making free cash flow and a lot of it with potentially record revenues for the first quarter of 2020. Hence, my accumulation...

I am also buying more in bits but the problem, as for most people, is liquidity - eventually it stops. I am tempted to sell the Monet. Like a freshly washed woollen jumper, I am being pulled in many directions ATM - buy dividend earners (but will dividends be cut?); or buy virtually zero-yielding heavily-falling speculative gold stocks; or buy old favourites RDS and BP at throw-away prices: or buy nothing, ignore the markets, turn off the computer and instead go on a very cheap cruise holiday to Italy?

Anyway, again a vindication of your advice to trade some of your PM stocks - many LT holders back to zero ATM...
less than $6 today. I will top up more at $5.5 to AVG down
Fun Trading profile picture

It is time to accumulate...
Thanks for your thoughts. I’ve Been long here for way too long, but a good trading stock if you are paying attention. Curious to know your thoughts on MMX.
Fun Trading profile picture

You are very welcome. Unfortunately, I do not follow Maverick enough to give you an educated opinion.

Best regards,
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About OR

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on OR

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.