THE HE L LEAD ADING G INT NTERMEDIAT ATE ROYAL ALTY C COMPAN ANY
Corporate Presentation
September 201 2016
THE HE L LEAD ADING G INT NTERMEDIAT ATE ROYAL ALTY C - - PowerPoint PPT Presentation
THE HE L LEAD ADING G INT NTERMEDIAT ATE ROYAL ALTY C COMPAN ANY Corporate Presentation September 201 2016 For orward L Look ooking Statement nts Certain statements contained in this presentation may be deemed
September 201 2016
Certain statements contained in this presentation may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address future events, developments or performance that Osisko (the “Corporation”) expect to occur including managements’ expectations regarding the Corporation’s growth, results of operations, estimated future revenues, requirements for additional capital, future demand for and prices of commodities, business prospects and opportunities are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions or variations (Including negative variations), or that events or conditions "will", "would", "may", "could" or "should" occur including, without limitation, that all conditions precedent to the transaction will be met and the realization of the anticipated benefits deriving therefrom for shareholders of the Corporation, the view on (i) the quality and the potential of the Corporation’s assets, production forecasts for properties in which the corporation holds a royalty. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements involve known and unknown risks, uncertainties and other factors and are not guarantees of future performance and actual results may accordingly differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include, without limitation: fluctuations in the prices of the commodities that drive royalties held by the Corporation; fluctuations in the value of the Canadian dollar relative to the U.S. dollar; risks related to the operators of the properties in which the Corporation holds a royalty; development, permitting, infrastructure, operating or technical difficulties on any of the properties in which the Corporation hold a royalty or other interest; rate and timing of production differences from resource estimates or production forecasts by operators of properties in which the Corporation hold a royalty or other interest; risks and hazards associated with the business of exploring, development and mining on any of the properties in which the Corporation hold a royalty or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters or civil unrest; regulatory changes by national and local government, including corporate law, permitting and licensing regimes and taxation policies; regulations and political or economic developments in any of the countries where properties in which the Corporation hold a royalty or other interest are located or through which they are held); continued availability of capital and financing and general economic, market or business conditions; business opportunities that become available to, or are pursued by the Corporation; the impossibility to acquire royalties and to fund precious metal streams; other uninsured risks. The forward looking statements contained in this presentation are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which the Corporation holds a royalty or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or
significant property in which the Corporation holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. For additional information on risks, uncertainties and assumptions, please refer to the Corporation’s most recent Annual Information Form filed on SEDAR at www.sedar.com. The Corporation cautions that the foregoing list of risk and uncertainties is not exhaustive. Investors and others who base themselves on the forward looking statements contained herein should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be unduly relied upon. These statements speak only as of the date of this presentation. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law. Safe Harbour Statement: This PowerPoint presentation has been prepared for informational purposes only in order to assist prospective investors in evaluating an investment in Osisko Gold Royalties Ltd. By accepting delivery of this confidential information or any other material in connection with an investment in the Company, the investor agrees: (1) to keep strictly confidential the contents
evaluation by such offered of an investment in the securities; (2) not to copy all or any portion of this confidential PowerPoint presentation, other confidential information or any such other material. Inquiries regarding this confidential PowerPoint presentation can be made to the senior management of the Company. 2
As a s at Septe tember 6, 6, 2016 2016
MARKET C CAP
2015 2015 REVENUES
CA CASH & CA & CASH EQUIVALENTS
(at June 30, 2016)
AVAILABLE C E CRED EDIT
ATTRIBU BUTABL BLE G GOLD OUNCE CES S FO FOR 2 2016
$342 $234 $231 $192 $164 $143 $138 $118 $0 $50 $100 $150 $200 $250 $300 $350 $400
Penasquito Stillw illwater er Canad adian an Malartic De Detour Lak Lake Co Cortez Éléonore Gold Q Quarry Go Goldstrike
Source: BMO Capital Markets Equity Research. NPV shown using a 5% discount rate and BMO commodity pricing for gold of US$1,292/oz for 2016, US$1,350/oz for 2017, US$1,250/oz for 2018 and US$1,200/oz for 2019 and LT.
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Ma Max L London P PM F M Fixing in CAD: $1, $1,877/ 877/oz
6 2011 2011
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ISLA LAND G GOLD LD 1. 1.7% 7%-2. 2.55% N 55% NSR VEZZA ZZA 5% N 5% NSR – 40% N 40% NPI
IR IRON OR ORE COM OMPANY OF OF C CANADA ( (LIF) 0. 0.7% 7% P PASS-TH THROUGH S SAL ALES R S ROYALTY TY
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OPERATORS: Agnico Eagle / Yamana Gold LOCA CATIO ION: Malartic, Québec RE RESER ERVES: Current reserves of 7.72 M oz Au1 ROYALT LTY:
life of mill starting in June 2021 2015 2015 PROD ODUCT CTIO ION: 572.0 k oz H2 H2 2016 2016 PROD ODUCT CTIO ION: 292.2 K oz GU GUIDANCE:
2016: 560 to 580 k oz
2017: 590 to 600 k oz
2018: 610 k oz OSISKO KO ATTRIBU IBUTABL BLE GOLD O OUNCE CES:
2016: 28.0 to 29.0 k oz
2017: 29.5 to 30.0 k oz
2018: 30.5 k oz
1. See Appendix A for full disclosure on Reserves & Resources.
Canadian Malartic Production Outlook (k oz Au)
560-580 k oz 2016E
Osisko Gold Royalties Attributable Royalty Ounces (k oz Au)
28.0-29.0 k oz 2016E
THE L LARGES EST GOLD M MINE NE I IN N CANADA DA
YTD: 292.2 K oz YTD: 14.4 K oz
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Source: Agnico Eagle
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Source: Agnico Eagle
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1. See Appendix A for full disclosure on Reserves & Resources.
Éléonore Production Outlook (k oz Au)
250-280 2016E
Osisko Gold Royalties Attributable Royalty Ounces (k oz Au)
5.5-6.2 2016E
OPER ERATOR: R: Goldcorp (100%) LOCA CATIO ION: James Bay, Québec RE RESER ERVES: Current reserves of 5.35 M oz Au1 ROYALT LTY:
1M oz of production thereafter, to a maximum of 3.50%
than US$500/oz 2015 2015 PROD ODUCT CTIO ION: 268.1 k oz Q2 2 2016 2016 PROD ODUCT CTIO ION: 140.7 k oz 2016 GU 2016 GUIDANCE: 250-280 k oz 2016 O 2016 OSISKO ATTRIBU IBUTABL BLE GOLD O OUNCE CES: 5.5 to 6.2 k oz
FIRST O OUNCE CES REC ECEI EIVED ED I IN DEC ECEM EMBER ER 2 2015
YTD:140.7 K OZ YTD: 3.7 K OZ
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Source: Goldcorp public disclosure.
the 494 zone for reserve replacement and test the deep projection of the centre and southern ore bodies and the 494 zone.
adding confidence to the size and importance of this structure. ÉLÉO ÉONORE EXPLOR ORATI TION ON UPDATE
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Mine
underway
to Iron Ore Canada (“IOC”) – 7.0% top-line royalty – 15% equity interest in IOC – $0.10/t commission on all iron
sales royalty
IRON OR ORE CO COMPANY OF OF CANAD ADA ( (LIF) 0. 0.7% 7% P PASS-THR HROUGH H SALES ROYALTY ISLA SLAND G GOLD LD 1. 1.7% 7%-2. 2.55% 5% NS NSR
Matagami, Québec
Westwood (Doyon) facility
VEZZA ZA 5% NS % NSR 40% 40% N NPI
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ODYS YSSEY EY 3% N 3% NSR UPPER ER B BEA EAVER ER KIRKLA LAND L LAKE C E CAMP 2% N 2% NSR CARIB IBOO OO 1. 1.5% 5% N NSR MARBA BAN 0.425% N 25% NSR LAMAQUE QUE 1. 1.7% 7% N NSR PA PANDORA 2% N 2% NSR WINDFA FALL 0. 0.5% 5% N NSR HERMOSA S SULF LFIDES ES 1% N NSR SR HORNE 5 E 5 1% N NSR SR
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1. See the technical report titled “Technical Report and Updated Preliminary Economic Assessment for the Lamaque Project” dated February 27th 2015 on Integra Gold’s profile at www.sedar.com 2. Integra Gold may repurchase 50% of Osisko’s 1.7% NSR royalty for total consideration of $1,000,000
ROYALTY: 2 2% % NSR
Agnico-Eagle Lapa Mine
underway
$4.1M
ROYALTY: 1 1.7% NSR NSR
109.9 K oz
1,2
ROYALTY: 2 2% % NSR
$5.2M
ROYALTY: 0. 0.42 425% 5% N NSR
million payment upon commercial production on the Marban property.
ROYALTY: 1 1.5% NSR NSR
$15M
ROYALTY: 3 3% % NSR
ROYALTY: 1 1% % NSR
Taylor Deposit
ROYALTY: 0 0.5% NSR NSR
initiated with positive initial results
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Construct ction
Refinancing
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Purchased a a 1. 1.5% 5% N NSR i in February 2016 2016 Purchased a a 1% 1% NSR i in April 2016 2016
1. Non-IFRS measure representing the difference between the fair value of marketable securities less acquisition cost
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1. Fair value of marketable securities in associates and other as at June 30, 2016, excluding Labrador Iron Ore Royalty Corporation 2. Non-IFRS measure representing the difference between the fair value of marketable securities less acquisition cost
104.2 171.8 Cost Base Market Value at June 30, 2016 104.9
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COU OULON ON P PROJECT POLYMET ETALL LLIC MINERALIZ IZATION ION CON ONFIR IRMS M MININ ING POTE TENTI TIAL GUERRE RRERO 9,600 K 00 KM2 AREA EA I IN GUER ERRER ERO, M MEX EXICO
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Source: Factset
1. 1.4x 1. 1.8x 2. 2.0x 2. 2.1x 2. 2.4x
Osi sisk sko Sandstor
Royal al G Gold Silv ilver W Whea eaton Franco co N Nev evada
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ATTR TTRIBUTA TABLE GOL OLD OU OUNCES F FOR OR 2016 2016
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Appendix A – Reserves & Resources
1. Agnico Eagle and Yamana public disclosure – as at December 31, 2015 2. See Goldcorp press release dated February 25, 2016, titled Goldcorp Reports Fourth Quarter 2015 Results; Provides Updated Reserves and Resources Estimates and 2016 Guidance 3. See Richmont press release dated February 9, 2016, titled Richmont Increases Mineral Reserves by 187% and Island Gold Mine Increases Mineral Reserves by 206%, With a 29% Increase in Reserve Grade
RESERVES* CATEGORY AU GRADE (G/T) AU (M OZ) TONNES (MT) Proven 0.97 1.72 54.9 Probable 1.12 6.00 166.6 Total Proven & Probable 1.08 7.72 221.5
*Cut-off grade: 0.345-0.351 g/t | Gold Price: $1,150/oz Au
GLOBAL RESOURCES (EXCLUDING RESERVES)* CATEGORY AU GRADE (G/T) AU (M OZ) TONNES (MT) Measured 1.32 0.15 3.5 Indicated 1.55 1.10 22.2 Total Meas. & Ind. 1.51 1.25 25.7 Inferred 1.47 0.43 9.0
*Cut-off grade: 0.34-0.40 g/t and 1.0 g/t below open pit | Gold Price: $1,150/oz Au | exchange rate
RESERVES* CATEGORY AU GRADE (G/T) AU (M OZ) TONNES (MT) Total Proven & Probable 5.87 5.35 28.32 GLOBAL RESOURCES (EXCLUDING RESERVES) CATEGORY AU GRADE (G/T) AU (M OZ) TONNES (MT) Total Meas. & Ind. 5.49 0.81 4.58 Inferred 7.11 2.28 9.97
RESERVES - ABOVE 400M* CATEGORY AU GRADE (G/T) AU (K OZ) TONNES (KT) Proven 7.00 21.80 97.0 Probable 6.88 54.90 248.0 Total Proven & Probable 6.91 76.70 345.0 GLOBAL RESOURCES (EXCLUDING RESERVES) – ABOVE 400M* CATEGORY AU GRADE (G/T) AU (K OZ) TONNES (KT) Measured 5.80 1.35 7.5 Indicated 6.96 52.7 235.5 Total Meas. & Ind. 6.92 54.1 243.0 Inferred 7.44 98.7 412.5
*Based on a gold price of US$1,300/oz and an exchange rate of CAN$1.2037 = US$1.00.
RESERVES – BELOW 400M* CATEGORY AU GRADE (G/T) AU (K OZ) TONNES (KT) Proven 7.72 66.1 266.5 Probable 8.66 418.9 1,504.0 Total Proven & Probable 8.52 485.0 1,770,5 GLOBAL RESOURCES (EXCLUDING RESERVES) – BELOW 400M* CATEGORY AU GRADE (G/T) AU (K OZ) TONNES (KT) Indicated 5.20 17.65 105.5 Inferred 8.67 669.35 2,402.5
*Based on a gold price of US$1,300/oz and an exchange rate of CAN$1.2037 = US$1.00. 25