Osisko Gold Royalties (NYSE:OR) (0.7%) (OR CN – $10.95 | $14.36 CAD – Toronto Stock Exchange) is a Montreal based gold royalty company which owns royalties on the two largest gold mines in Quebec, namely the Malartic mine in the Abitibi region, and the Eleonore mine in the James Bay region of northern Quebec. Osisko has a cash balance and generates meaningful amounts of free cash flow through producing royalties. The company is deploying this cash in very early stage development deals whereby it is able to fund exploration and development of projects, primarily in Canada, in exchange for equity stakes in the development companies and the opportunity to finance mine development through acquiring future royalties on future mine development.
From the Gabelli Gold Fund third-quarter 2016 shareholder letter.
