40% Growth Over Next Five Years Based on Existing Assets

• Osisko Gold Royalties has transformed into a pure-play royalty and streaming company under new CEO Jason Attew, moving away from the previous generator/incubator model and eliminating related party transactions to improve governance.
• The company has significantly reduced its debt from $250 million to $35 million net debt position, providing $750 million CAD in liquidity through a revolver facility for future transactions.
• Approximately 80% of Osisko's net asset value comes from tier-one jurisdictions (Canada, US, and Australia), with their foundational asset being the 5% royalty on Canadian Malartic, representing 37.5% of 2024 cash flow.
• The company projects 40% growth over the next five years based on existing assets, with half coming from producing properties and half from high-confidence development projects backed by major operators.
• Osisko captured about 10% of royalty deal flow despite representing only 5% of the sector's market capitalization, indicating they're "punching above their weight" in the competitive royalty landscape.

Osisko Gold Royalties has undergone a significant transformation over the past 16 months under the leadership of CEO Jason Attew. In a recent interview, Attew outlined the strategic changes that have repositioned Osisko as a pure-play precious metals royalty and streaming company with a simplified business model, improved governance, and strengthened balance sheet. With the company's 10th anniversary recently celebrated, Osisko now features a portfolio of 185 assets, including 21 producing properties, and has emerged as the fourth or fifth largest royalty and streaming company by market capitalization, currently valued at approximately $4 billion USD.

Business Model Transformation

One of the most substantial changes at Osisko has been the shift away from what Attew described as a "generator model" or "incubator model" that characterized the company's early approach. Under this previous strategy, Osisko would purchase and develop mining assets, attempting to create value by advancing them through the development cycle with the aim of either selling or operating these assets while retaining royalties or streams.

"Admittedly it was a very interesting concept at the time, however we have empirical data and evidence that this led destruction of shareholder value. It's a very different skill set involved in advancing assets through the development curve, it's a very different environment around permits which take a lot longer, construction timelines and capital required through an inflation environment is much more challenged than it was, even when they started 10 years ago."

This strategic pivot has redefined Osisko's core business: 

"Our business model is all we do right now is we're a pure play royalty and streaming company. We're a provider of capital in the form of royalties, streams, economic interests on high quality assets to management teams who we believe have exceptional technical acumen in the best jurisdictions."

Governance Improvements & Debt Reduction

In addition to the business model transformation, Attew highlighted governance improvements as a key focus area. This included eliminating the executive chair position, removing related party transactions, and untethering the company from the rest of the Osisko group of companies. According to Attew, the company is now "100% independent with zero influence from these historic companies.”

Debt reduction has been another achievement, with net debt decreasing from over $250 million USD when Attew joined to approximately $35 million at the end of 2024. This improved balance sheet has positioned the company to execute accretive transactions going forward. The company now has CAD $750 million in liquidity through a revolver facility to source transactions within a 5-year outlook.

Portfolio Quality & Geographic Focus

Osisko's portfolio is anchored by its foundational asset - a 5% royalty (NSR) on Canadian Malartic, operated by Agnico Eagle. This single royalty, described by Attew as "widely acknowledged as the best gold royalty in our sector by all our peers," represents approximately 37.5% of Osisko's 2024 cash flow and 25-30% of its net asset value.

A key differentiating factor for Osisko is its geographic concentration in tier-one jurisdictions, with approximately 80% of the company's net asset value coming from Canada, the US, and Australia. This focus on politically stable mining regions reduces geopolitical risk and provides a competitive advantage in the royalty space.

Interview with President & CEO, Jason Attew

Recent Transactions & Deal Flow

Despite being a mid-tier player in the royalty sector, Osisko has been successful in securing deals. The company completed three transactions in 2024, including topping up a stream with Taseko on their asset in British Columbia, acquiring a 1.8% royalty on the Dalgaranga asset in Western Australia, and participating in a syndicated transaction with Franco-Nevada for the Cascabel asset in Ecuador.

Attew noted that Osisko captured approximately $300 million of the $3 billion in royalty and streaming transactions concluded in 2024, representing about 10% market share despite having only about 5% of the sector's market capitalization.

"For 5% of the market capitalization, we're actually getting 10% of the flow or deals. That certainly would suggest that we're punching well above our weight. We're involved in all the flow as well as trying to get a number of high quality transactions, one or two this year, through bilateral discussions."

Growth Outlook & Asset Pipeline

Osisko has provided guidance for 2025 of between 80,000 and 88,000 gold equivalent ounces, representing approximately 45% improvement over 2024 at the midpoint. Looking further ahead, the company projects growth from 81,000 gold equivalent ounces in 2024 to between 110,000 and 125,000 over the next five years - an increase of approximately 40%.

Half of this projected growth will come from assets already in production, including Mantos Blancos (operated by Capstone Copper) and Island Gold (operated by Alamos Gold). The remaining growth is expected from development assets with strong backers, including Windfall in Quebec (consolidated by Gold Fields) and the Hermosa Taylor asset in Arizona (owned by South32).

A notable aspect of Osisko's growth profile is that none of these assets require subsequent financing, and all are underpinned by what Attew described as "high integrity assets with very good operators."

Investment Approach & Risk Management

When evaluating potential investments, Osisko employs a disciplined approach focused on near-term or currently cash-flowing opportunities. The company generally targets deals in the $50-500 million range, large enough to "move the needle" while remaining within their capability as a mid-tier player.

For financial returns, Osisko uses internal rates of return (IRRs) as a primary metric, with hurdle rates based on their weighted average cost of capital plus a risk-adjusted spread. This spread varies depending on jurisdictional and technical risks - potentially 100-150 basis points for a project in Quebec with proven operators, but potentially double that for a development opportunity in Peru.

Asset security is considered "sacrosanct" in Osisko's approach to transactions. 

"We need asset security in some circumstances, we need parent guarantees and depending where the asset is and the ability to actually get as ironclad security as you possibly can. We'll never do an unsecured deal, I can guarantee you that."

Financial Performance & Shareholder Returns

In 2024, Osisko generated approximately $192 million USD in revenue and close to $160 million in operating cash flow. For 2025, the company expects a 20-30% increase in operating cash flow if commodity prices remain at current levels.

As a royalty-centric company (versus streams), Osisko maintains a cash margin of approximately 97%, providing significant leverage to gold price increases. 

"Every dollar that we see an appreciation of the gold or silver price, gold in particular, that goes right down to our bottom line."

This financial performance has attracted new institutional investors, including T. Rowe Price, which is now a top-five shareholder. Other major shareholders include Canadian institutions like CIBC Asset Management and BMO Asset Management, while Edgepoint remains the largest shareholder with approximately 13% ownership.

The Investment Thesis for Osisko Gold Royalties

• Successful Business Model Transformation: Osisko has evolved from a developer/incubator model to a pure-play precious metals royalty company, eliminating related party transactions and improving corporate governance to create a more attractive investment vehicle.
• Strong Balance Sheet: The company has reduced net debt from $250 million to approximately $35 million, providing CAD $750 million in liquidity for future acquisitions with minimal financing risk.
• Premium Jurisdictional Exposure: 80% of Osisko's net asset value comes from tier-one jurisdictions (Canada, US, Australia), reducing geopolitical risk compared to peers with more emerging market exposure.
• High-Quality Anchor Asset: The 5% NSR royalty on Canadian Malartic, widely considered the industry's best gold royalty, provides a strong foundation, representing 37.5% of 2024 cash flow and 25-30% of NAV.
• Visible Organic Growth: The company projects 40% growth in gold equivalent ounces over the next five years (from 81,000 to 110,000-125,000 ounces) without requiring additional capital investment.
• Superior Margins: With a 97% cash margin due to its royalty-heavy portfolio (versus streams), Osisko offers exceptional leverage to rising gold prices compared to peers with more streaming exposure.
• Demonstrated Deal-Making Ability: Despite representing only 5% of the sector's market cap, Osisko captured 10% of royalty/streaming deal flow, indicating superior origination capabilities.
• Disciplined Investment Approach: The company targets deals between $50-500 million with strict return hurdles based on risk-adjusted spreads above its cost of capital and "sacrosanct" security requirements.
• Institutional Validation: The strategic shift has attracted top-tier investors including T. Rowe Price (now a top 5 shareholder) and increased positions from Canadian institutions like CIBC and BMO Asset Management.
• Sector-Leading Performance: Osisko was the best-performing royalty and streaming company among the top six in the sector in 2024, demonstrating the market's positive reception to its strategic transformation.

Macro Thematic Analysis

The gold price has surged beyond $3,000 per ounce in 2025, creating a favorable environment for gold royalty companies like Osisko Gold Royalties. This rise comes amid global economic uncertainty, inflation concerns, and geopolitical tensions that have reinforced gold's status as a safe-haven asset. In this environment, royalty companies offer investors several advantages over traditional miners.

Unlike producers who face rising costs for labor, equipment, and energy, royalty companies like Osisko maintain nearly fixed costs regardless of input inflation. With Osisko's 97% cash margin, nearly every dollar of gold price appreciation flows directly to the bottom line, providing exceptional operating leverage without the corresponding operational risks.

The financing landscape for mining development has also shifted dramatically. Traditional project finance from global banks has retreated, creating more opportunities for royalty and streaming companies to fill the capital gap. As Attew noted, 

"There's been a significant retrenchment around the traditional project finance environment. Most of the banks, the global banks, have exited that arena, and therefore when you see projects that are looking for funding or financing, there's always a royalty or streaming aspect to it."

Additionally, with equity markets still undervaluing many miners relative to the gold price, companies are increasingly reluctant to dilute shareholders, making royalty/streaming capital more attractive. This structural advantage, combined with Osisko's repositioned balance sheet and focused strategy, positions the company to potentially outperform both bullion and miners in the current gold bull market.