Raymond James has revised its price target for Osisko Gold (OR, Financial), increasing it to $26.50 from the previous $25.50. The firm maintains an Outperform rating on the company’s shares after analyzing the first-quarter results. Osisko Gold is noted for offering a lucrative business model highlighted by significant growth potential, a versatile financial structure, and a collection of development and exploration enterprises that present minimal jurisdictional risk.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Osisko Gold Royalties Ltd (OR, Financial) is $25.51 with a high estimate of $27.82 and a low estimate of $22.86. The average target implies an upside of 7.57% from the current price of $23.71. More detailed estimate data can be found on the Osisko Gold Royalties Ltd (OR) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Osisko Gold Royalties Ltd's (OR, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Osisko Gold Royalties Ltd (OR, Financial) in one year is $17.11, suggesting a downside of 27.84% from the current price of $23.71. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Osisko Gold Royalties Ltd (OR) Summary page.
OR Key Business Developments
Release Date: May 08, 2025
- Gold Equivalent Ounces (GEOs) Earned: 19,014 GEOs in Q1 2025.
- Operating Cash Flows: $46.1 million with a cash margin of 97.1%.
- Cash and Net Debt: $63.1 million in cash; net debt reduced to just over $10 million.
- Quarterly Revenue: $54.9 million, higher year-over-year.
- Earnings Per Share (EPS): $0.14 per basic common share, improved year-over-year.
- Cash Flow Per Share: $0.25, up from $0.20 in Q1 2024.
- Adjusted Earnings Per Share: $0.16 per basic common share, up from $0.12 in Q1 2024.
- Quarterly Dividend: CAD 0.065 per share; subsequent increase to USD 0.055 per share.
- Precious Metals Contribution: Over 93% of GEOs from precious metals; gold at just under 67% and silver at just over 26%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Osisko Gold Royalties Ltd (OR, Financial) reported a solid start to 2025 with 19,014 gold equivalent ounces (GEOs) earned, aligning with their full-year guidance of 80,000 to 88,000 GEOs.
- The company achieved an impressive operating cash flow of $46.1 million with a cash margin of 97.1% for the first quarter.
- Osisko reduced its net debt to just over $10 million, showcasing strong financial management and a robust balance sheet.
- The company declared a 20% increase in its quarterly dividend to USD 0.055 per share, reflecting confidence in future cash flows.
- Osisko's sustainability efforts were highlighted with the release of their fifth annual Sustainability Report, demonstrating progress in ESG initiatives.
Negative Points
- The first quarter was expected to be the weakest due to sequencing in major assets like Malartic and Mantos Blancos, impacting initial performance.
- No major transactions were announced during the period, despite a busy corporate development team, potentially affecting growth expectations.
- Production at Capstone Copper's Mantos Blancos was slightly lower year-over-year due to lower silver grades.
- The Cariboo project is not included in the five-year outlook due to pending project financing, creating uncertainty in future contributions.
- Osisko's name change to OR Royalties may cause temporary confusion among stakeholders and requires effective communication to ensure a smooth transition.
