This gold royalty company is adding to its coffers with small acquisitions and a strong pipeline.
Osisko Gold Royalties (OR)
From Adrian Day’s Global Analyst
Osisko Gold Royalties (OR) has declined along with most gold stocks this year, particularly in the last several weeks. But as a royalty company, Osisko has a lower risk-profile than a traditional miner, while it is well poised to benefit from a move up in gold.
The company has been active this year, making several relatively small acquisitions, including a gold royalty on Victoria Gold’s “shovel-ready” Eagle Gold project in the Yukon, and a silver stream on Falco’s Horne deposit. Osisko owns 13% of Falco, and the negotiation of a stream is another validation of the company’s “incubator” program whereby it funds exploration companies at an early stage.
Osisko also saw two of the exploration companies on which it holds royalties—Dalradian and Arizona Mining—get taken over in recent weeks. While this does not change the company’s interests, it does suggest that the projects are more likely to get advanced into production sooner.
Its “gold equivalent” production hit a new record this past quarter, and the pipeline is strong. It’s been a busy period for Osisko, and the stock price does not reflect the developments. The balance sheet remains strong, and the stock a good buy.
Adrian Day, Adrian Day’s Global Analyst, www.adriandayglobalanalyst.com, 410-224-8885, June 28, 2018