BMO maintains OSESCO Gold Royalties ‘Market Performance’

Source : investing, Tue, 2024/10/1

BMO Capital Markets on Tuesday maintained the “Market Performance” rating of Osesco Gold Royalties Limited (OR:CN) (NYSE:OR) with a flat target price of CAD 27.00. The company’s outlook remains unchanged as Osisco continues to engage in institutional development and invest in new opportunities..

It was recently noted that Osesco Gold Royalties has been active in institutional development.

with a focus on deploying capital into new investment projects. The Dalgaranga Gold Project will benefit from existing infrastructure. Production will begin from an underground operation within the next two years, with a projected mine life exceeding 12 years.

The company’s involvement in the Dalgaranga Gold Project .

and its strategy to invest in new opportunities were taken into account when valuing BMO Capital Markets. The Company considers that the transaction.

including the partial royalty buyback, has a neutral effect on the estimate of the net asset value (NAV) of Osesco.

Maintaining a “Market Performance” rating indicates that BMO Capital Markets does not expect significant changes in the stock’s performance compared to the broader market in the near term. The company sets the target price at CAD 27.00, reflecting its belief that the stock holds appropriate value based on its valuation.

Osesco Gold Royalty’s strategy to invest in projects such as Dalgaranga is part of its broader approach to growth and value creation. The company’s focus on such developments is expected to play a role in its operational and financial results in the coming years..

In other recent news, Osisco Gold Royalties Ltd has announced a major deal to acquire a royalty of 1.8% of the total revenue of the Dalgaranga Gold Project.

operated by Spartan Resources Limited in Western Australia. The agreement, worth US$50 million, also includes a 1.35% royalty on additional exploration licenses in the area.

pending approval from the Foreign Investment Review Board of Australia. The Dalgaranga project, which has undergone high-grade discoveries, is preparing recently, to restart production within the next two years.

Osiscu Gold Royalties also reported strong earnings for the first half of 2024, posting 20,068 gold ounces (GEOs) in the second quarter. The company’s revenue for the period was $64.8 million, and ended the quarter with $65.7 million in cash. Despite operational challenges at Victoria Gold’s Eagle mine , Osisescu remains on track to achieve its annual guidance.

On the analyst front, the suspension of operations at Victoria Gold’s Eagle mine revised GEO guidance to between 77,000 and 83,000 for 2024. However, Osisco management expressed confidence in the company’s financial flexibility and prospects for repatriating capital to shareholders through dividends and buybacks. These developments form part of the recent news surrounding Osisco Gold Royaltes.

To complement BMO Capital Markets’ analysis of OSESCO Gold Royalties Limited (OR).

recent data from InvestingPro provides additional context for investors. The company has a market capitalization of US$3.45 billion, reflecting its significant presence in the gold royalties sector..

Osesco’s financial metrics reveal interesting dynamics. The company has shown strong revenue growth.

an increase of 7.29% over the past twelve months from the second quarter of 2024.

in line with its strategy to actively invest in new opportunities such as the Dalgaranga Gold Project. Moreover, Osesco has an impressive gross profit margin of 95.09% for the same period.

confirming the efficiency of its royalty-based and flow business model..

InvestingPro’s advice highlights that Osisco has raised its dividend for 3 consecutive years, which could appeal to income-focused investors. Moreover, the company’s stock showed a strong return over the past year.

with a total price return of 59.37% according to the latest data. The positive market reception of OESCO’s institutional development activities and strategic investments drives this performance.