Osisko Gold Royalties Ltd (NYSE:OR) Q2 2023 Results Conference Call August 10, 2023 10:00 AM ET

Company Participants

Paul Martin - Interim CEO

Frédéric Ruel - CFO and VP, Finance

Iain Farmer - VP, Corporate Development

Conference Call Participants

Ralph Profiti - Eight Capital

John Tumazos - John Tumazos Very Independent Research

Operator

Good morning, ladies and gentlemen, and welcome to the Osisko Gold Royalties Q2 2023 Results Conference Call. After the presentation, we will conduct a question-and-answer session. [Operator Instructions] Please note that this call is being recorded today, August 10, 2023 at 10:00 am Eastern Time.

Today, on the call, we have Mr. Paul Martin, Interim Chief Executive Officer; Mr. Frédéric Ruel, Chief Financial Officer and Vice President, Finance and Mr. Iain Farmer, Vice President of Corporate Development.

I would now like to turn the conference over to our host today, Mr. Paul Martin.

[Foreign Language]

Paul Martin

Good morning, everybody. And thanks for being with us. I’m Paul Martin, the interim CEO of Osisko Gold Royalties. I’ll run through the presentation and then we’ll open up the line for questions. And I have Fred and Ian in the room for, anything that I can’t answer. For the participants on the line, you can submit your questions in advance through the webpage. The presentation is available on the website as well as through the webcast.

And as stated, I am the interim CEO having committed to assist the Board in leading the Company during the transition period. I have also made the commitment to remain in the CEO chair until the Board has completed its process and announced a permanent successor.

Please note, there are forward-looking statements in this presentation and that all amounts are in Canadian dollars unless otherwise noted.

We’re pleased with the performance in the second quarter, both from a GEOs earned perspective and from a transactional basis. 24,645 GEOs earned in the second quarter, a nearly 11% increase over the comparative quarter, with 47,756 GEOs for the first half, which is nearly a 15% increase over the comparative period, puts Osisko in a good position from an annual guidance perspective.

Gross cash margins of 93% were maintained in the quarter and for the year-to-date. The Company had $70 million in cash at the end of the quarter and declared and paid its quarterly dividend of $0.06 per share during the quarter after increasing it by 9% from $0.055. Increases in revenues and operating cash flows followed the increased performance in GEOs earned and represents a 35% increase quarter-over-quarter, and on an annualized basis represents operating cash flows of approximately $200 million. Net earnings of $0.10 per basic common share were essentially flat compared to the prior quarter due to non-cash items. Adjusted earnings of $0.18 per basic common share showed an improvement over the prior quarter of $0.14 per share.