Osisko Metals (OM) Q2 2024 earnings summary

Executive summary

• Net loss of $4.2M in Q2-2024 and $5.2M for the six months ended June 30, 2024, compared to net income of $12.7M and $11.2M in the same periods last year, mainly due to non-cash gains in 2023 from Pine Point deconsolidation and higher non-operating costs in 2024.

• Significant progress on Gaspé Copper and Pine Point Projects, including updated mineral resource estimates and ongoing feasibility and PEA work.

• Cash position improved to $5.1M at June 30, 2024, primarily from proceeds of a partial sale of Pine Point Mining Limited (PPML) interest to Appian.

• Working capital remains negative at $32.9M, with insufficient resources to meet obligations through June 2025 without additional financing.

Financial highlights

• Operating loss for Q2-2024 was $0.6M, down $1.7M year-over-year due to lower consulting/professional fees and employee costs.

• Non-operating costs in Q2-2024 totaled $3.9M, driven by $1.5M interest on the Convertible Note, $2.2M unrealized loss on the embedded derivative, and $0.2M FX loss.

• Cash increased by $3.4M during H1-2024, mainly from $6.7M proceeds from Appian, offset by $2.0M in exploration investments and $1.2M in operating cash outflows.

• No revenue from operations; all income is from financing and asset transactions.

Outlook and guidance

• Pine Point Project feasibility study to be initiated in Q3-2024, based on the new 2024 Mineral Resource Estimate.

• Gaspé Copper Project PEA expected in early 2025, following the updated resource estimate and ongoing drilling.

• Additional financing required to fund operations and project advancement beyond June 2025.