Osisko Gold Royalties Ltd OR announced an amendment to its silver stream by increasing its attributable silver percentage by 12.5% to 100% with respect to the Gibraltar copper mine. Osisko also announced that it has closed the previously announced acquisition of 1.8% gross revenue royalty on the Dalgaranga Gold project for $44 million.

The mine is operated by a wholly-owned subsidiary of Taseko Mines Limited. Osisko and Taseko have also extended the step-down silver delivery threshold to 6,811,603 ounces delivered. In exchange for these amendments, Osisko has paid an additional deposit amount of $12.7 million to Taseko.

In addition to the 1.8% gross revenue royalty, OR has also closed the acquisition of a 1.35% gross revenue royalty on additional regional exploration licenses in proximity to Dalgaranga for $6 million.

Osisko’s shareholders will benefit from the increased silver stream transaction that is consistent with its strategy of adding cash flow from long-life assets in Tier 1 mining jurisdictions. 

In the case of Dalgaranga, since the agreement to acquire the Dalgaranga Royalty was announced on Sept. 30, 2024, its operator, Spartan, has continued to deliver on key milestones. These include the receipt of all key approvals and permits required for underground mining and development, the discovery of a new high-grade gold zone called “Freak,” and the release of an updated Mineral Resource Estimate, which demonstrated an impressive 68% increase in contained Indicated ounces, and which will serve as the basis for the upcoming Dalgaranga Feasibility Study.

OR Stock’s Price Performance

The OR stock has gained 28.8% in the past year compared with the 12.8% growth of the industry.

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OR’s Zacks Rank and Key Picks

OR currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, CF Industries Holdings, Inc. CF and DuPont de Nemours, Inc. DD. While CRS sports a Zacks Rank #1 (Strong Buy) at present, CF and DD each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s current-year earnings is pegged at $6.74 per share. CRS’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the last, with the average surprise being 14.1%. The company’s shares have gained 143% in the past year.

The Zacks Consensus Estimate for CF Industries’ current year earnings is pegged at $6.36 per share. CF surpassed the Zacks Consensus Estimate twice in the trailing four quarters and missed the rest, with an average earnings surprise of 10.3%. The stock has gained 5.9% in the past year.

The Zacks Consensus Estimate for DD’s current-year earnings is pegged at $3.91, indicating a year-over-year rise of 12.4%. DD’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 12.9%. The company’s shares have gained 0.3% in the past year.

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