| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 14.70 | -63 |
| Intrinsic value (DCF) | 7.35 | -81 |
| Graham-Dodd Method | 4.90 | -88 |
| Graham Formula | 1.70 | -96 |
Osisko Gold Royalties Ltd (NYSE: OR) is a leading precious metals royalty and streaming company headquartered in Montreal, Canada. Specializing in gold, silver, and other precious metals, Osisko acquires and manages royalties, streams, and offtake agreements across mining projects in Canada and internationally. The company's flagship asset is a 5% net smelter return (NSR) royalty on the Canadian Malartic mine, one of Canada's largest gold mines. Osisko also holds exploration and development rights on multiple mining projects, diversifying its exposure to high-potential precious metal assets. Operating in the Basic Materials sector, Osisko provides investors with leveraged exposure to gold prices without the operational risks of mining. Its asset-light business model generates stable cash flows, supported by long-life royalties and strategic partnerships with top-tier mining operators. With a strong balance sheet and disciplined growth strategy, Osisko is well-positioned to capitalize on rising gold demand and exploration success in key mining jurisdictions.
Osisko Gold Royalties offers investors a compelling way to gain exposure to gold prices through its diversified royalty and streaming portfolio. The company benefits from stable cash flows, low operational risk, and leverage to rising gold prices, making it an attractive play in the precious metals sector. Its 5% NSR on the Canadian Malartic mine provides a solid foundation, while its pipeline of exploration royalties offers growth potential. However, risks include reliance on a few key assets, exposure to counterparty operational performance, and sensitivity to gold price volatility. The company's moderate beta (0.847) suggests less volatility than pure-play miners, while its dividend yield (~2.5%) adds income appeal. With strong operating cash flow ($159.9M in latest reporting) and manageable debt levels, Osisko maintains financial flexibility for accretive acquisitions.
Osisko Gold Royalties competes in the precious metals royalty and streaming sector with a differentiated focus on high-quality, long-life assets in stable jurisdictions. The company's competitive advantage stems from its first-mover position in Canadian royalties, particularly its cornerstone Canadian Malartic interest, and its technical expertise in evaluating mining projects. Unlike some competitors who focus on near-term cash flows, Osisko maintains a balanced portfolio mixing producing assets with development-stage royalties that offer growth optionality. The company's relatively smaller size compared to industry leaders allows it to be more nimble in securing mid-tier royalty opportunities. However, Osisko lacks the scale and diversification of larger royalty companies, making it more dependent on individual asset performance. Its strategic partnerships with operators like Yamana Gold and Agnico Eagle provide operational stability but create some concentration risk. The company's exploration-focused approach to royalty creation differentiates it from passive royalty collectors, though this requires ongoing capital allocation discipline. In an increasingly competitive royalty sector, Osisko's Canadian focus and technical team provide niche advantages, but it must continue demonstrating its ability to source high-return opportunities to compete with better-capitalized peers.