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Osisko Reports 2020 Results and Provides 2021 Guidance

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Osisko Reports 2020 Results and Provides 2021 Guidance

 

 

 

 

 

Osisko Gold Royalties Ltd (TSX:OR) (NYSE:OR) announced its consolidated financial results for the fourth quarter and full year 2020 and provides guidance for 2021. Amounts presented are in Canadian dollars, except otherwise noted.

 

2020 Highlights

 

  • Earned 66,113 GEOs1 in 2020, above revised guidance of 63,500 – 65,500 GEOs;
  • Record revenues from royalties and streams of $156.6 million (2019 – $140.1 million);
  • Record cash flows from operations of $108.0 million, an increase of 18% compared to 2019;
  • Cash operating margin2 of 94% from royalties and streams;
  • Net earnings attributable to Osisko’s shareholders of $16.9 million, or $0.10 per share; and
  • Adjusted earnings3 of $43.7 million, or $0.27 per basic share (2019 – $41.9 million, $0.28 per basic share).

 

Q4-2020 Highlights

 

  • Earned 18,829 GEOs1, excluding 1,754 GEOs from the Renard diamond stream;
  • Record revenues from royalties and streams of $48.8 million (Q4 2019 – $38.9 million);
  • Cash flows from operating activities of $32.6 million (Q4 2019 – $17.2 million);
  • Cash operating margin2 of 94% from royalty and stream interests;
  • Net earnings attributable to Osisko’s shareholders of $4.6 million, $0.03 per basic share; and
  • Adjusted earnings3 of $12.0 million or $0.07 per basic share (Q4 2019 – $10.3 million, $0.07 per basic share);

 

Sandeep Singh, President and CEO of Osisko commented on the activities of the fourth quarter of 2020: “Despite mine shutdowns associated with COVID-19 in the first half of the year, Osisko achieved record revenues and cash flows. Our asset base is performing well, with several recent positive developments, including a major catalyst on the Odyssey underground project extending production from our flagship Canadian Malartic asset for decades. Elsewhere, our partners are replacing reserves, extending mine lives, outlining new discoveries and announcing, or further justifying, mine expansions. The fourth quarter marked the last quarter where we invested directly into the Cariboo project. Through the creation of Osisko Development, we added significant value while simplifying our business going forward. We start the year in excellent shape to unlock value for shareholders.”

 

Other Highlights

 

  • Completed the spin-out of mining assets and certain equity positions through a reverse take-over transaction and the creation of a North American gold development company, Osisko Development Corp.which concurrently completed a $100.1 million bought deal financing;
  • In December 2020, Osisko Development closed a brokered private placement for gross proceeds of $40.2 million and received proceeds of $73.9 million from a private placement that closed in 2021 (for a total additional financing of $79.8 million);
  • In October 2020, Osisko announced a strategic partnership with Regulus Resources Inc. whereby Regulus has agreed to grant Osisko an initial NSR royalty of 0.75% – 1.5% on the Mina Volare claim, part of the larger AntaKori project, as well as certain future royalty rights in exchange for an upfront cash payment of US$12.5 million ($16.4 million);
  • In February 2021, Agnico Eagle Mines Limited and Yamana Gold Inc. announced a positive construction decision for the Odyssey underground mine project. The preliminary economic study shows a total of 7.29 million ounces of additional gold in the mine plan (6.18 million tonnes grading 2.07 g/t gold indicated resources and 75.9 million tonnes grading 2.82 g/t gold inferred resources). Underground mine production is planned to start in 2023 and is expected to ramp up to an average of 545,400 ounces of gold per year from 2029 to 2039;
  • On February 12, 2021, Osisko repaid a $50.0 million convertible debenture and drew its credit facility for the same amount, thereby reducing the interest payable by approximately 1.5% per annum; and
  • Declared a quarterly dividend of $0.05 per common share payable on April 15, 2021 to shareholders of record as of the close of business on March 31, 2021.

 

2021 Guidance

 

Osisko’s 2021 guidance on royalty, stream and offtake interests is largely based on publicly available forecasts from our operating partners. When publicly available forecasts are not available, Osisko obtains internal forecasts from the producers or uses management’s best estimate.

 

GEOs and cash margin by interest, excluding the Renard stream, are estimated as follows for 2021:

 

 

    Low   High   Cash margin  
    (GEOs)   (GEOs)   (%)  
               
Royalty interests   59,750   62,800   100  
Stream interests   17,400   18,250   87  
Offtake interests   850   950   3  
    78,000   82,000   97*  
               
* Excluding offtake interests          

 

For the 2021 guidance estimate, deliveries of silver and cash royalties have been converted to GEOs using commodity prices of US$1,800 per ounce of gold, US$25 per ounce of silver and an exchange rate (USD/CAD) of 1.28. Any GEOs (and the related cash margin) from the Renard diamond stream have been excluded from the outlook above. For 2021, deliveries from the Renard diamond stream are estimated to be 8,126 GEOs; however, for the remainder of 2021, Osisko has committed to reinvest the net proceeds from the stream through the bridge loan facility provided to the operator.

 

Cash Balance

 

The Q4 results mark the first quarter where Osisko is consolidating financial results to include Osisko Development and its subsidiaries. As at December 31, 2020 and 2019, the cash positions in each entity were as follows:

 

 

  Osisko Gold Royalties (i)   Osisko Development   Total
  2020 2019(ii)   2020 2019(iii)   2020 2019
  $ $   $ $   $ $
                 
Cash held in Canadian dollars 29,714 4,752   137,374 8,006   167,088 12,758
                 
Cash held in U.S. dollars 59,208 73,502   47,167   106,375 73,502
Cash held in U.S. dollars (Canadian equivalent) 75,383 95,465   60,053 –    135,436 95,465
Total cash 105,097 100,217   197,427 8,006   302,524 108,223

 

(i) Excluding Osisko Development and its subsidiaries.
(ii) Excluding the cash held by Barkerville and the other subsidiaries that were transferred to Osisko Development in 2020 as part of the RTO.
(iii) Corresponds to the cash that was held by Barkerville and the other subsidiaries that were transferred to Osisko Development in 2020 as part of the RTO.

 

In addition, on February 24, 2021, the Company has access to the undrawn portion of its credit facility of $286.4 million, excluding the additional $100.0 million accordion.

 

Recent Asset Advancements

 

Canadian Malartic Underground Construction Decision

 

Agnico Eagle and Yamana have approved construction of the Odyssey underground project at the Canadian Malartic mine. The preliminary economic assessment estimates 545,000 ounces of gold per annum from 2029 onwards (see Chart 1). The underground production plan of the Odyssey project outlined in the preliminary economic assessment comprises 6.88 million ounces of inferred resources (75.9 million tonnes of 2.82 g/t gold) and 0.41 million ounces of indicated resources (6.18 million tonnes of 2.07 g/t gold). The production plan is hosted in three main underground-mineralized zones; East Gouldie, East Malartic, and Odyssey, the latter of which is sub-divided into the Odyssey North, Odyssey South and Odyssey Internal zones. Osisko holds a 5% NSR royalty on East Gouldie, Odyssey South and the western half of East Malartic and a 3% NSR royalty on Odyssey North and the eastern half of East Malartic.

 

Chart 1: Canadian Malartic Production Profile is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/f885e563-b821-44be-8885-f379bb186e52

Source: Agnico Eagle and Yamana news releases, Feb 11, 2021.

 

Osisko Development Corp. Update

 

Osisko Development announced drill results that help outline the 1.5 kilometres (“km”) long Proserpine zone as another potential mining area in the Cariboo camp. Results include 17.78 g/t gold over 5.6 metres and 8.06 g/t gold over 1.7 metre. There are currently ten surface drills active on the property.

 

Osisko Development is currently mining underground at the Bonanza Ledge Phase 2 project and is stockpiling mineralized material at the QR Mill. Processing is set to begin in the second quarter of this year. Osisko Development purchased a new communition circuit designed to process 7,500 tonnes per day for the larger Cariboo project. This critical equipment reduces engineering risk and will help fast track the construction of the processing facilities once all permits are received for the Cariboo project.

 

At the San Antonio gold project, Osisko Development has completed the engineering and permitting to process the 1.3 million tonnes gold mineralized stockpile via heap leaching. Osisko Development has also entered into an agreement to purchase a semi-portable crushing plant for the San Antonio gold project with capacity of 15,000 tonnes per day.

 

Osisko retains 77.0% of the common equity in Osisko Development and also holds a 5% NSR on the Cariboo and Bonanza Ledge Phase 2 properties as well as a 15% gold and silver stream on the San Antonio gold project with a transfer payment equal to 15% of the spot gold and silver price.

 

Eagle Ramp-Up

 

Victoria Gold Corp.’s Eagle mine, in the Yukon, produced 116,644 ounces of gold in 2020 and is expected to continue to ramp up production in 2021 towards a run rate of 210,000 oz per annum. Fourth quarter production reached 42,436 ounces of gold which is a 20% increase over the previous quarter. Ore stacking rates improved significantly in the fourth quarter prior to the planned 90-day curtailment of ore staking for the coldest months of the year. Mining operations, primary crushing and stockpiling of ore will continue. Osisko has a 5% NSR royalty on the Eagle mine.

 

Windfall Resource Update

 

Osisko Mining Inc. released an updated resource estimate on February 17, 2021 for its Windfall project including indicated resources of 1.9 million ounces (6 million tonnes of 9.6 g/t gold) and inferred resources of 4.2 million ounces (16.4 million tonnes of 8 g/t gold). This represents a 54% increase in measured and indicated ounces. More than 30 drill rigs are focused on infill drilling on Lynx where over 60% of the total mineral resources are contained, with average grades of over 11 g/t gold in the measured and indicated categories and 9.9 g/t gold in the inferred category. The Company has a 2-3% NSR royalty on the Windfall deposit, and also owns 14.5% of the outstanding shares of Osisko Mining.

 

Island Gold Resources Increase

 

Alamos Gold Inc. released an updated resource and reserve estimate on their Island Gold mine highlighted by an 8% increase in reserves and a 40% increase in inferred resources. Proven and probable reserves include 1.3 million ounces (4.2 million tonnes of 9.71 g/t gold) and Inferred resources grew to 3.2 million ounces (6.9 million tonnes of 14.43 g/t gold). The new mineral inventory shows significant upside potential to the Phase III Expansion Study published in July 2020. Osisko has a 1.38% to 3% NSR royalty over the Island Gold mine.

 

Ermitaño Fully Permitted

 

First Majestic plans to release a Preliminary Economic Assessment and updated resource estimate for Ermitaño by the end of the first quarter of 2021. The Prefeasibility study is expected to be released in the second half of 2021 and will define initial reserves, production rates, costs and estimated life of mine for the Ermitaño project. First Majestic is preparing for initial limited production in the second half of 2021 followed by production ramp up in early 2022. The land use permit was received in January 2021 completing full permitting of the project. Osisko has a 2% NSR royalty on the Ermitaño project.

 

Agnico Eagle Increases Exploration Budget on Kirkland Lake Property

 

Agnico Eagle announced plans to drill 36,500 metres at the Upper Beaver project in 2021, including additional shallow drilling to test an open pit concept and further deep drilling to convert mineral resources to mineral reserves. As of December 31, 2020,

Upper Beaver has approximately 1.4 million ounces of gold and 20,000 tonnes of copper in underground probable mineral reserves (8.0 million tonnes grading 5.43 g/t gold and 0.25% copper). Agnico Eagle’s Kirkland Lake property also hosts the Upper Canada, AK and Anoki-McBean deposits which together with Upper Beaver host an additional indicated resource of 1.71 million ounces (17.2 million tonnes of 3.09 g/t gold) and inferred resources of 4.07 million ounces (32.2 million tonnes of 3.93 g/t gold). An internal technical study at Upper Beaver, incorporating drill results from 2020 and 2021, is expected to be completed by the end of 2021. Osisko has a 2% NSR royalty on the Kirkland Lake property.

 

Agnico Eagle Declares Reserves on Hammond Reef

 

Agnico Eagle completed an internal technical study, which resulted in the declaration of open pit mineral reserves estimated at 3.32 million ounces of gold (123.5 million tonnes grading 0.84 g/t gold). In addition, the project contains 2.3 million ounces of measured and indicated mineral resources (133.4 million tonnes grading 0.54 g/t gold). Agnico Eagle will continue optimizing the project and potential mining scenarios to further improve project economics. Osisko has 2% NSR royalty on the Hammond Reef property.

 

Eldorado Gold Declares Maiden Resource on Ormaque and Acquisition of QMX Gold Corporation

 

In February 2021, Eldorado Gold Corporation declared the maiden resource for the Ormaque deposit. The deposit contains inferred resources of 0.8 million ounces (2.62 million tonnes of 9.5g/t gold) with more than 60% occurring above 400m depth. The top of the deposit occurs at the level of the ore haulage decline that should reach the Ormaque deposit in Q3 of this year. Eldorado aims to provide additional ore sources to optimize the Sigma Mill, which has a permitted capacity of 5,000 tonnes per day, far exceeding current usage of 2,200 tonnes per day. Osisko has a 1% NSR royalty on the Lamaque property hosting the Ormaque deposit.

 

In January 2021, Eldorado announced the friendly acquisition of QMX Gold Corporation. Osisko holds a 2.5% royalty over most of the QMX property, including the three main exploration targets. The most advanced of these targets is Bonnefond, which hosts indicated resources of 0.4 million ounces (7.4 million tonnes of 1.67 g/t gold) and inferred resources of 0.29 million ounces (3.3 million tonnes of 2.71 g/t gold). Recent drilling results (including 5.46 g/t gold over 33.5 metres) illustrate significant underground exploration potential.

 

Casino Gold Zone

 

Western Copper and Gold released exploration results on the Casino project highlighting significantly higher grades in the deposit core from surface to greater than 200 metres depth. Drill results include 0.76 g/t gold over 175.49 metres; these results will be integrated in an updated preliminary economic assessment to be released in the second quarter of 2021. Osisko holds a 2.75% NSR royalty on the Casino project.

 

Wharekirauponga

 

Oceana Gold Corp. released some spectacular drill intersections on their WKP project including 22.8 g/t gold and 39 g/t silver over 48.9 metres and 41.4 g/t gold and 81.6 g/t silver over 9 metres. Approximately 10,500 metres of drilling are planned in 2021. Oceana continues to advance the consenting process to access this zone for underground mining. Osisko has a 2% NSR on the WKP property.

 

Bralorne Drilling

 

Talisker Resources Ltd. continues to intersect high grade vein intersections on their Bralorne property, but also some thicker bulk mining intervals. The Charlotte zone includes 10.47 g/t gold over 10.30 metres at a depth of 102.7 metres and 1.55 g/t gold over 36.95 metres at a depth of 208.45 metres. Talisker initiated a 50,000 metre drill program at Bralorne in 2021. Osisko has a 1.2% NSR on the Bralorne property.

 

 

Qualified Person

 

The scientific and technical content of this news release has been reviewed and approved by Guy Desharnais, Ph.D., P.Geo., Vice President, Project Evaluation at Osisko Gold Royalties Ltd, who is a “qualified person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).

 

About Osisko Gold Royalties Ltd

 

Osisko Gold Royalties Ltd is an intermediate precious metal royalty company focused on the Americas that commenced activities in June 2014. Osisko holds a North American focused portfolio of over 140 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its cornerstone asset, a 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada.

 

 

Notes:

(1) Gold equivalent ounces (“GEOs”) are calculated on a quarterly basis and include royalties, streams and offtakes. Silver earned from royalty and stream agreements has been converted to gold equivalent ounces by multiplying the silver ounces by the average silver price for the period and dividing by the average gold price for the period. Diamonds, other metals and cash royalties were converted into gold equivalent ounces by dividing the associated revenue by the average gold price for the period. Offtake agreements were converted using the financial settlement equivalent divided by the average gold price for the period.

 

 

Average Metal Prices and Exchange Rate

 

  Three months ended
December 31,
    Years ended
December 31,
 
    2020     2019       2020     2019  
           
Gold(i) $ 1,874   $ 1,481     $ 1,770   $ 1,393  
Silver(ii) $ 24.39   $ 17.32     $ 20.54   $ 16.21  
           
Exchange rate (US$/Can$)(iii)   1.3030     1.3200       1.3413     1.3269  

 

(i) The London Bullion Market Association’s pm price in U.S. dollars.
(ii) The London Bullion Market Association’s price in U.S. dollars.
(iii) Bank of Canada daily rate.

 

(2)  

Cash operating margin, which represents revenues less cost of sales, is a non-IFRS measure. The Company believes that this non-IFRS generally-accepted industry measure provides a realistic indication of operating performance and provides a useful comparison with its peers. The following table reconciles the cash margin to the revenues and cost of sales presented in the consolidated statements of income (loss) and related notes (In thousands of Canadian dollars):

 

 

  Three months ended
December 31,
    Years ended
December 31,
 
  2020   2019     2020   2019  
  $   $     $   $  
           
Revenues 64,560   51,032     213,630   392,599  
Less: Revenues from offtake interests (15,796 ) (12,112 )   (57,056 ) (252,477 )
Revenues from royalty and stream interests 48,764   38,920     156,574   140,122  
           
Cost of sales (18,236 ) (15,265 )   (63,700 ) (262,881 )
Less: Cost of sales of offtake interests 15,086   11,720     54,200   249,172  
Cost of sales of royalty and stream interests (3,150 ) (3,545 )   (9,500 ) (13,709 )
           
           
           
           
Revenues from royalty and stream interests 48,764   38,920     156,574   140,122  
Less: Cost of sales of royalty and stream interests (3,150 ) (3,545 )   (9,500 ) (13,709 )
Cash margin from royalty and stream interests 45,614   35,375     147,074   126,413  
           
  94 % 91 %   94 % 90 %
           
Revenues from offtake interests 15,796   12,112     57,056   252,477  
Less: Cost of sales of offtake interests (15,086 ) (11,720 )   (54,200 ) (249,172 )
Cash margin from offtake interests 710   392     2,856   3,305  
           
  5 % 3 %   5 % 1 %

 

(3) The Company has included certain non-IFRS measures including “Adjusted Earnings” and “Adjusted Earnings per basic share” to supplement its consolidated financial statements, which are presented in accordance with IFRS.
   
  The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
   
  “Adjusted earnings” is defined as “Net earnings (loss)” adjusted for certain items: “Foreign exchange gain (loss)”, “Impairment of assets”, including impairment on financial assets and investments in associates, “Gains (losses) on disposal of exploration and evaluation assets”, “Unrealized gain (loss) on investments”, “Share of loss of associates”, “Deferred income tax expense (recovery)” and other unusual items such as transaction costs.
   
  Adjusted earnings per basic share is obtained from the “adjusted earnings” divided by the “Weighted average number of common shares outstanding” for the period.

 

 

  Three months ended 
December 31,
    Years ended 
December 31,
 
  2020   2019     2020   2019  
         
(in thousands of dollars, except per share amounts) $   $     $   $  
         
Net earnings (loss) attributable to
Osisko Gold Royalties’ shareholders
4,632   (155,175 )   16,876   (234,195 )
         
Adjustments:        
Impairment of royalty, stream and other
interests
  148,600     26,300   248,300  
Impairment of investments 2,694       7,998   12,500  
Foreign exchange loss (gain) 514   756     (652 ) 1,901  
Unrealized (gain) loss on investments (5,186 ) 27,357     (21,952 ) 31,161  
Share of loss of associates 3,723   7,521     7,657   22,209  
Deferred income tax expense (recovery) 2,170   (19,930 )   3,760   (41,197 )
Costs related to the acquisition of Barkerville   1,216       1,216  
Costs related to the RTO transaction 3,453       3,729    
         
Adjusted earnings 12,000   10,345     43,716   41,895  
         
Weighted average number of
common shares outstanding (000’s)
166,093   149,912     162,303   151,266  
         
Adjusted earnings per basic share 0.07   0.07     0.27   0.28  

 

 

 

 

Osisko Gold Royalties Ltd
Consolidated Balance Sheets
(tabular amounts expressed in thousands of Canadian dollars)
 
    December 31,     December 31,  
    2020     2019  
    $     $  
         
Assets        
         
Current assets        
         
Cash   302,524     108,223  
Short-term investments   3,501     20,704  
Amounts receivable   12,894     6,330  
Inventories   10,025     1,656  
Other assets   6,244     3,516  
    335,188     140,429  
         
Non-current assets        
         
Investments in associates   119,219     103,640  
Other investments   157,514     67,886  
Royalty, stream and other interests   1,116,128     1,130,512  
Mining interests and plant and equipment   489,512     343,693  
Exploration and evaluation   42,519     42,949  
Goodwill   111,204     111,204  
Other assets   25,820     6,940  
    2,397,104     1,947,253  
         
Liabilities        
         
Current liabilities        
         
Accounts payable and accrued liabilities   46,889     18,772  
Dividends payable   8,358     7,874  
Current portion of long-term debt   49,867      
Provisions and other liabilities   4,431     1,289  
    109,545     27,935  
         
Non-current liabilities        
         
Provisions and other liabilities   41,536     29,365  
Long-term debt   350,562     349,042  
Deferred income taxes   54,429     47,465  
    556,072     453,807  
         
Equity        
         
Share capital   1,776,629     1,656,350  
Warrants   18,072     18,072  
Contributed surplus   41,570     37,642  
Equity component of convertible debentures   17,601     17,601  
Accumulated other comprehensive income   48,951     13,469  
Deficit   (174,458 )   (249,688 )
Equity attributable to Osisko Gold Royalties Ltd’s shareholders   1,728,365     1,493,446  
Non-controlling interests   112,667      
Total equity   1,841,032     1,493,446  
    2,397,104     1,947,253  

 

 

 

Osisko Gold Royalties Ltd
Consolidated Statements of Income (Loss)
For the three months and the years ended December 31, 2020 and 2019
(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)
 
  Three months ended
December 31,
    Years ended
December 31,
 
  2020     2019     2020     2019  
  $     $     $     $  
               
               
Revenues 64,560     51,032     213,630     392,599  
               
Cost of sales (18,236 )   (15,265 )   (63,700 )   (262,881 )
Depletion of royalty, stream and other
interests
(13,548 )   (11,843 )   (45,605 )   (47,009 )
Gross profit 32,776     23,924     104,325     82,709  
               
Other operating expenses              
General and administrative (7,842 )   (8,648 )   (25,901 )   (23,682 )
Business development (5,608 )   (1,223 )   (10,290 )   (6,122 )
Gain on disposal of an offtake interest             7,636  
Exploration and evaluation (23 )   (52 )   (131 )   (191 )
Impairment of assets     (143,876 )   (26,300 )   (243,576 )
Operating income (loss) 19,303     (129,875 )   41,703     (183,226 )
Interest and dividend income 1,059     1,449     4,582     4,632  
Finance costs (6,193 )   (6,166 )   (26,131 )   (23,548 )
Foreign exchange (loss) gain (276 )   (755 )   1,023     (1,859 )
Share of loss of associates (3,723 )   (7,521 )   (7,657 )   (22,209 )
Other gains (losses), net 2,160     (32,081 )   13,622     (48,385 )
Earnings (loss) before income taxes 12,330     (174,949 )   27,142     (274,595 )
Income tax (expense) recovery (8,345 )   19,774     (10,913 )   40,400  
Net earnings (loss) 3,985     (155,175 )   16,229     (234,195 )
               
Net earnings (loss) attributable to:              
Osisko Gold Royalties Ltd’s shareholders 4,632     (155,175 )   16,876     (234,195 )
Non-controlling interests (647 )       (647 )    
               
Net earnings (loss) per share attributable to Osisko Gold Royalties Ltd’s shareholders              
Basic and diluted 0.03     (1.04 )   0.10     (1.55 )
               
               

 

Osisko Gold Royalties Ltd
Consolidated Statements of Cash Flows
For the three months and the years ended December 31, 2020 and 2019
(tabular amounts expressed in thousands of Canadian dollars)
 
  Three months ended     Years ended  
  December 31,     December 31,  
  2020     2019     2020     2019  
  $     $     $     $  
               
Operating activities              
Net earnings (loss) 3,985     (155,175 )   16,229     (234,195 )
Adjustments for:              
Share-based compensation 2,429     2,047     9,361     8,320  
Depletion and amortization 13,838     12,157     46,904     48,270  
Net gain on disposal of an offtake             (7,636 )
Impairment of assets     148,600     26,300     248,300  
Finance costs 1,771     1,870     8,409     7,161  
Share of loss of associates 3,723     7,521     7,657     22,209  
Net gain on acquisition of investments     (378 )   (3,827 )   (1,006 )
Change in fair value of financial assets at fair value through profit and loss (1,055 )   (310 )   (2,387 )   1,089  
Net loss (gain) on dilution of investments in associates     3,790     (10,381 )   3,687  
Net (gain) loss on disposal of investments (4,131 )   24,255     (5,357 )   27,391  
Impairment of investments 2,694         7,998     12,500  
Foreign exchange loss (gain) 514     756     (652 )   1,901  
Deferred income tax expense (recovery) 2,170     (19,930 )   3,760     (41,197 )
Deemed listing fees of Osisko Development 1,751         1,751      
Other 368     40     479     (416 )
Net cash flows provided by operating activities
before changes in non-cash working capital items
28,057     25,243     106,244     96,378  
Changes in non-cash working capital items 4,576     (8,039 )   1,734     (4,780 )
Net cash flows provided by operating activities 32,633     17,204     107,978     91,598  
               
Investing activities              
Short-term investments 2,000     (13,753 )   412     (39,597 )
Cash acquired through the acquisition of Barkerville     8,312         8,312  
Transaction fees paid on acquisition of Barkerville     (1,513 )       (1,513 )
Acquisition of the San Antonio gold project (3,500 )       (52,208 )    
Acquisition of investments (6,850 )   (14,919 )   (49,194 )   (62,815 )
Proceeds on disposal of investments 264     220     10,864     130,128  
Acquisition of royalty and stream interests (29,183 )   (6,344 )   (66,062 )   (77,814 )
Proceeds on disposal of royalty and offtake interests     13,834         57,016  
Mining assets and plant and equipment (29,341 )   (5,718 )   (71,828 )   (6,321 )
Exploration and evaluation (expenses) tax credits, net (1 )   85     (202 )   166  
Reclamation deposits         4,762      
Other         357      
Net cash flows (used in) provided by investing activities (66,611 )   (19,796 )   (223,099 )   7,562  
               
Financing activities              
Private placement of common shares         85,000      
Investments from minority shareholders 214,323         214,323      
Share issue expenses from investments from minority shareholders (5,965 )       (5,965 )    
Exercise of share options and shares issued under the share purchase plan 453     69     7,835     21,783  
Increase in long-term debt         71,660     19,772  
Repayment of long-term debt (19,205 )       (19,205 )   (30,000 )
Common shares acquired and cancelled through a share repurchase             (129,486 )
Normal course issuer bid purchase of common shares     (1,632 )   (3,933 )   (13,533 )
Dividends paid (7,851 )   (6,917 )   (28,914 )   (27,455 )
Other (1,100 )   (2,587 )   (3,940 )   (2,991 )
Net cash flows provided by (used in) financing activities 180,655     (11,067 )   316,861     (161,910 )
               
Increase (decrease) in cash before effects of exchange rate changes on cash 146,677     (13,659 )   201,740     (62,750 )
Effects of exchange rate changes on cash (4,858 )   (1,820 )   (7,439 )   (3,292 )
Increase (decrease) in cash 141,819     (15,479 )   194,301     (66,042 )
Cash – beginning of period 160,705     123,702     108,223     174,265  
Cash – end of period 302,524     108,223     302,524     108,223  

 

Posted February 25, 2021

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