Osisko Gold Royalties Ltd (NYSE:OR) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 10:00 am ET


Osisko Gold Royalties Ltd (NYSE:OR) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Osisko Gold Royalties' Q2 2020 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 6, 2020 at 10:00 a.m. Eastern time.

Today on the call, we have Mr. Sean Roosen, Chair of Board of Directors and the Chief Executive Officer of Osisko Gold Royalties; Mr. Sandeep Singh, President of Osisko Gold Royalties; and Mr. Frederic Ruel, Chief Financial Officer and Vice President, Finance. I'd now like to turn the meeting over to our host for today's call, Mr. Sean Roosen. [Foreign Speech]

Sean Roosen

[Foreign Speech] And I'll switch to English now. And just to recap what I had said. We really are trying to make sure that we are the best partners out there for COVID-19 for both of our operators, our employees and our investors. We've taken a lot of steps and try to be a leader in terms of how things should be done and can be done during this pandemic. We've taken a very strong position in terms of supporting all of our operators and to do the best we can to take care of all of our associated partners, employees and families that are associated with us and those in the greater good of our society as we go through this pandemic.

I'll start off with a basic recap of the business. I don't want to decide of where we are in this pandemic, but we did produce 12,386 GEOs in the quarter. We had 200 -- $28.7 million of revenues and royalties from our products that we're invested in. Cash flow from operating activities was at $15.4 million.

Net earnings at $13 million was about $0.08 per share, adjusted earnings of $5.7 million after several payments, including a dividend. We withdrew production guidance due to COVID-19 in Q1 and Q2 -- sorry, in Q2. We are back now guiding to about 63,000 to 65,000 ounces a year. And for the first half of the year, somewhere between 30 to -- second half of the year, sorry, from 33,000 to 35,000 ounces as the mines come back online. We also did a financing in second quarter of $85 million with Investissement Quebec. And we really thank the government of Quebec and Investissement Quebec for having partnered up with us during a hard time. It was more sort of a vote of confidence, I think, from our partners at Investissement Quebec to really to come in and bolster our balance sheet in a time when things were unclear.

And obviously, we have a lot of commitments in Quebec and partnerships with Investissement Quebec, so this makes great sense for us. We continue to have our partners invest in us and with us as we move forward. We also improved the silver stream from Gibraltar, having paid $8.5 million to transfer price to go from $2.75 an ounce in transfer price down to zero. So we