Osisko Reports Q2 Preliminary Revenues and Margins

Osisko Gold Royalties OR reported an 18.6% year-over-year fall in attributable gold equivalent ounces ("GEOs") in the second quarter of 2024. Preliminary revenues from royalties and streams were disclosed at $64.8 million, which suggests a 7.1% increase from the prior-year quarter's actual.

OR earned attributable GEOs of around 20,068 in the quarter.

Preliminary cost of sales (excluding depletion) came in at $2.2 million in the second quarter, suggesting a dip from the $4.3 million reported in the year-ago quarter. The cash margin in the quarter was a record $62.6 million, indicating 11.4% growth from the year-ago quarter's actual. The cash margin was 97% compared with 93% in the second quarter of 2023.

As of Jun 30, 2024, OR's cash position was $65.7 million. The company used $44.2 million in repayments on its revolving credit facility in the second quarter for total repayments of $87.9 million in the first half of 2024.

Osisko reported adjusted earnings per share of 12 cents in first-quarter 2024, beating the Zacks Consensus Estimate of 11 cents. The bottom line declined 8% year over year.

The company generated revenues of $45 million, flat year over year.

The Zacks Consensus Estimate for the company's second-quarter earnings is pegged at 12 cents. Notably, it reported earnings of 13 cents in the second quarter of 2023.

Price Performance

In the past year, shares of Osisko have gained 13.2% compared with the industry's 21.2% growth.

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Zacks Rank

Osisko currently carries a Zacks Rank #3 (Hold).

Q2 Preliminary Performance of Other Mining-Gold Stocks

Royal Gold, Inc. RGLD recently issued a stream segment sales update for second-quarter 2024. In the quarter, RGLD Gold AG — the fully-owned subsidiary of Royal Gold — sold 52,600 GEOs, comprising 39,200 ounces of gold, 593,200 ounces of silver and 1,500 tons of copper related to its streaming agreements.

The average realized price of gold was $2,339 per ounce in the second quarter compared with $2,054 per ounce in first-quarter 2024. The average realized price of silver stood at $28.46 per ounce, up from the fourth quarter's $23.22. Average realized copper prices were $9,475 per ton, up 12.1% sequentially. The company ended the quarter with 12,000 ounces of gold and 450,500 ounces of silver in inventory.

In the quarter, the cost of sales was $459 per GEO compared with the prior quarter's $436 per GEO.

Sandstorm Gold Ltd. SAND recently announced preliminary revenues and the cash operating margin for the second quarter of 2024. Revenues in the quarter fell 16.9% year over year. The company's cash operating margin moved up 17.1%.

SAND sold nearly 17,400 attributable GEOs in the quarter. This marks a 29% decline from the 24,504 ounces of GEOs sold in second-quarter 2023. Sandstorm Gold delivered preliminary revenues of $41.4 million, suggesting a dip from $49.8 million reported in the prior-year quarter.

SAND posted a preliminary cost of sales (excluding depletion) of $4.7 million, indicating a decline from the $5.6 million reported in the first quarter of 2023. The cash operating margin was $2,043 per attributable GEO in the quarter under review, higher than the prior-year quarter's $1,744. 

A Mining-Gold Stock to Consider

A better-ranked Mining-Gold stock is Barrick Gold Corporation GOLD. It has a Zacks Rank #2 (Buy) at present.

The Zacks Consensus Estimate for Barrick Gold's 2024 earnings is pegged at $1.07 per share. The consensus estimate for 2024 earnings has moved 5% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 18.3%. GOLD shares have gained 32% in a year.

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