Osisko (OR) Reports Q2 Preliminary Revenues and Margins

Core Insights - Osisko Gold Royalties (OR) reported an 18.6% year-over-year decline in attributable gold equivalent ounces (GEOs) for Q2 2024, with preliminary revenues from royalties and streams at $64.8 million, reflecting a 7.1% increase from the same quarter last year [1][2] Financial Performance - OR earned approximately 20,068 attributable GEOs in Q2 2024, with a preliminary cost of sales (excluding depletion) of $2.2 million, down from $4.3 million in the prior year [2] - The cash margin for the quarter reached a record $62.6 million, indicating an 11.4% growth year-over-year, with a cash margin percentage of 97% compared to 93% in Q2 2023 [2] - As of June 30, 2024, OR's cash position was $65.7 million, having utilized $44.2 million for repayments on its revolving credit facility in Q2, totaling $87.9 million in repayments for the first half of 2024 [3] - Adjusted earnings per share (EPS) for Q1 2024 were reported at 12 cents, surpassing the Zacks Consensus Estimate of 11 cents, although the bottom line declined by 8% year-over-year [3][4] Market Comparison - In the past year, Osisko's shares increased by 13.2%, while the industry experienced a growth of 21.2% [5] - The average realized price of gold in Q2 2024 was $2,339 per ounce, up from $2,054 per ounce in Q1 2024, indicating a positive trend in gold prices [7] Industry Context - Sandstorm Gold Ltd. (SAND) reported a 16.9% year-over-year decline in revenues for Q2 2024, while its cash operating margin increased by 17.1% [8] - SAND's preliminary cost of sales (excluding depletion) was $4.7 million, down from $5.6 million in Q1 2023, with a cash operating margin of $2,043 per attributable GEO [9] - Royal Gold, Inc. (RGLD) sold 52,600 GEOs in Q2 2024, with a cost of sales of $459 per GEO, compared to $436 per GEO in the previous quarter [12][13]