Osisko Gold Royalties Ltd (OR) Q4 2022 Earnings Call Transcript

Osisko Gold Royalties Ltd (NYSE:OR) Q4 2022 Earnings Conference Call February 24, 2023 10:00 AM ET

Company Participants

Sandeep Singh - President & CEO

Frederic Ruel - VP, Finance & CFO

Conference Call Participants

Cosmos Chiu - CIBC

John Tumazos - John Tumazos Independent Research

Ralph Profiti - Eight Capital

Operator

Good morning, ladies and gentlemen, and invited to nan Osisko Gold Royalties Q4 2022 Results Conference Call. After nan presentation, we will behaviour a question-and-answer session. [Operator Instructions] Please statement that this telephone is being recorded today, February 24, 2023 astatine 10:00 AM Eastern Time. Today connected nan call, we person Mr. Sandeep Singh, President and Chief Executive Officer; and Mr. Frederic Ruel, Chief Financial Officer and Vice President, Finance.

I would now for illustration to move nan gathering complete to our big for today's call, Mr. Sandeep Singh.

[Foreign Language]

Sandeep Singh

Thanks very much, Joel, and acknowledgment to everyone connected nan statement pinch america this morning. Look guardant to stepping you done a very breathtaking 4th and a very breathtaking twelvemonth for us. In 2022, arsenic I do, I will beryllium referring to a position connected our website. If you haven't picked it up already connected nan main page, conscionable connected nan near manus side, if you deed Q4 successful 2022 results, it will return you to it. And I'll beryllium referring to page numbers arsenic I spell along, evidently making immoderate forward-looking statements aliases impulse you to reappraisal that disclaimer connected Slide 2.

So looking astatine Slide 3, I’ll (ph) start. As I said, 2022 was a very important -- I'd opportunity frankly pivotal twelvemonth for us. We made important strides connected a number of fronts, that whitethorn person listed connected this page. If we commencement pinch nan simplification, nan ongoing simplification of our business, 2022 successful particular, nan 3rd 4th took a monolithic leap guardant pinch nan deconsolidation of our financials pinch Osisko Development Corp., nan -- conscionable an accounting issue, but it wasn't a meaningful 1 of benignant of combining a institution that generates rate travel each time agelong and 1 that is advancing its projects and investing in nan early of nan growth, conscionable didn't time off a recognizable entity. So happy to person that business down us.

In position of nan portfolio of assets, our plus guidelines continues to strengthen. We had 3 consecutive grounds quarters connected astir of nan things that matter to america from a royalty institution position and we'll talk astir what nan outlook looks for -- looks for illustration for america arsenic we move forward. We besides reset nan equilibrium sheet. And successful outpouring of past year, I deliberation we reset nan equilibrium sheets for our adjacent activity of maturation and delevered astatine nan correct time.

We continued our accordant inclination of returning superior to shareholders successful aggregate, $63 cardinal return to shareholders past year, really almost precisely two-thirds of that via dividends and a 3rd of it via our buyback program. And we'll show you a descent later on. But complete nan past 5 years, we've consistently done that fundamentally returned to a 3rd of revenues aliases 3rd of each dollar of derived from announced delivered to america backmost to shareholders done a operation of dividends and past said, we deliberation that sets america successful a beautiful prime company.

We proceed to person a tremendous magnitude of free upside and optionality playing retired successful our portfolio against nan presentation, we'll touch connected a fewer examples of that. We look guardant to being capable to tally nan magnitude of activity that our partners did successful 2022 and stock that pinch you, but certainly, we're seeing nan effect of that activity each astir us.

With respect to our largest asset, our flagship asset, that's Malartic, nan consolidation that Agnico Eagle is presently underway, very adjacent to completing successful position of buying nan 2nd half of that plus is simply a very important catalyst. One that we'll walk immoderate clip connected talking astir today. But, I deliberation moreover past week successful position of their merchandise and immoderate of nan commentary that they're guiding towards successful position of what nan synergies tin beryllium pinch them now only 100% of Malartic, what they request for america is rather impressive.

And past arsenic we've talked astir a number of times, 2022, we didn't really spot nan use of immoderate beautiful important measurement changes astatine assets for illustration Mantos and Eagle. We do expect that we'll commencement to spot nan use of that successful 2023. Those aren't nan only assets that we person that are undergoing either worldly ramp-ups aliases description s complete nan adjacent fewer years. Island falls into that category. Lamaque falls into that category. There's conscionable an atrocious batch of bully activity being done connected our producing plus base, lengthening it and increasing it, which underpins. I deliberation this institution for a agelong time.

To that, there's an exceptional magnitude of growth. 2022 saw 12% summation complete our GEOs delivered to america complete nan twelvemonth before. We put retired our guidance which shows a meaningful uptick again this twelvemonth and really a sustained level of maturation for rather a agelong clip pinch nan existing plus portfolio. And past successful 2022, we did not conscionable for larger transactions pinch a fewer smaller ones that sliced in, but we were very happy pinch nan mode successful which we were capable to allocate superior successful 2022.

Just finishing connected that maturation box, if you will, I deliberation nan maturation for america is very multi-layered, I would say. It's again those existing producing assets that are getting stronger. It's caller assets that are coming into nan operation for nan remainder of nan decade if that optionality that I talked astir of our portfolio, highlighting immoderate beautiful hidden gems and past arsenic nan outer growth, each of which I deliberation is moving good for us.

I won't walk excessively overmuch clip connected Slide 4, that's conscionable a reset, we emotion showing that slide. We do it each chance we get because I deliberation it's important almost unsocial and benignant of tells nan communicative of Osisko successful position of commodity attraction obviously, geographic focus, partner quality, plus quality. And past connected nan apical right-hand side, we've taken nan measurement of conscionable highlighting again immoderate of those assets -- halfway assets to us. Many of them are dependable authorities and continuing to do a bully occupation and past make further important chunk, immoderate of nan biggest ones are going done measurement alteration improvement.

On Slide 5, again these are names we've talked astir successful position of nan caller acquisition communicative for america successful 2022. I won't spell done nan circumstantial names, but we tin surely travel backmost to that later. But I will punctual everyone that each 4 of these, and astir apt nan smaller ones that we did arsenic well. We’re each bilateral underscore all, not a azygous process connected that list. I deliberation they were each adjacent transactions for america and our partner's, bully jurisdictions, bully operators, partners, large upside and all, and I deliberation frankly deliberation importantly amended than -- amended returns than we've seen successful pockets of nan assemblage for nan past mates of years.

And frankly, that's what it takes for america to transact each of those -- each of nan above. And if we don't spot that, we'll beryllium very patient, highly diligent and we'll proceed to return superior to our shareholders. But if we do spot it, I deliberation we've shown nan condemnation to autumn done connected things that we judge in.

Moving to Slide 6. Again, I deliberation we sewage to walk a spot of time, fixed nan value and fixed nan benignant of caller communicative that continues to strengthen. I've said this before, I mean it virtually each clip we perceive from our partner present astatine Agnico, nan communicative is getting better. Obviously, it's an important asset. Even if it was conscionable what it was benignant of put connected paper, a mates of years ago, benignant of transitioning to 500,000 ounces aliases 600,000 ounces a twelvemonth from nan underground, that's nan plan, that's really astir group presently deliberation astir it.

Our wager that's really astir group presently exemplary it from an expert position and that successful itself is great. That excessively I would punctual you is only based connected half of nan existent 15 cardinal ounces that are disposable underground. 2022 saw an important twelvemonth successful position of infill drilling and that's connected nan adjacent slides, if you want to jump up fundamentally conscionable complete 6 cardinal ounces moved into nan -- successful aggregate successful nan M&I category. So, beautiful worldly assistance of inferred into M&I. The wide assets stayed nan same. And I deliberation are mostly nan aforesaid from nan drilling successful 2022 but happy to spot nan infill drilling, amended nan M&I.

Overall, if you look astatine this past bullet, nan hold drilling that they've done has been very productive, pinch nan boundaries of nan deposit, if you will, increasing successful some directions to nan East by 1.7 kilometers to nan West by 500 meters, truthful rather a large footprint that presently isn't successful immoderate benignant of class successful position of resources.

And I deliberation certainly, my expectation, our anticipation is that aft different akin twelvemonth of drilling benignant of nan 3rd successful a row, 164,000 meters envisions 2023, not only will we spot that continued inclination of class betterment but besides hopefully that'll beryllium nan twelvemonth wherever we spot an uptick pinch capable infill drilling aliases capable -- tight capable spacing successful that footprint to adhd much ounces. And I deliberation that could beryllium (ph) released from Agnico past week, but surely seems to beryllium what they're pointing to complete nan people of 2023.

So that is simply a phenomenal story. If you look astatine nan adjacent slide, Slide 7, past you move your attraction to nan spare 40,000 tonnes of per time of capacity successful nan mill that will beryllium successful spot by 2028 aliases disposable by 2028. So, we're surely looking forward, I'm looking guardant to seeing down pinch our friends astatine Agnico adjacent week to make consciousness of everything they said successful their Thursday day release. Because frankly, it was a spot caput spinning, but overall, each of it was highly affirmative for us.

I'm judge you folks would -- I presume they would for illustration to get immoderate much specifications connected that plan. But I think, it's -- nan upshot of it is nan Canadian Malartic mill pinch 40,000 tonnes astir of spare capacity later successful nan decade is nan halfway of gravity for nan Abitibi, and I deliberation what's nan adjacent limb of that, you're not that benignant of given. I would imagine, astir group person successful their minds.

But erstwhile you return into account, nan obstruction statement that runs done nan mill basically, done nan property, each done each of these assets that you spot connected nan bottommost of 7 -- Slide 7 successful nan Abitibi connected nan Ontario and Quebec side. That significantly, evidently based connected nan commentary increases nan area of power if you will aliases nan catchment area that that mill tin use from -- person a script wherever our partner is talking astir perchance 500,000 ounces of yearly location extremity coming into that mill is simply a immense use to us, not conscionable because of our $0.40 per tonne mill royalty, but besides because galore of nan names that they mentioned, we besides person 2% royalties connected whether it's Upper Beaver wish to deliberation could spell East arsenic opposed to nan West to Macassa that shows you nan -- that halfway of gravity that Canadian Malartic will go erstwhile that has spare capacity aliases whether it's talking astir things for illustration Upper Canada, evidently AK is already successful nan operation astatine Macassa.

But fundamentally astir things connected each nan astir things that we're discussed successful that update person importantly important implications for america and truthful we look guardant to getting, possibly not immediately, but complete nan span of this twelvemonth aliases immoderate play of clip much clarity connected what that looks like. It only could mean positives versus, I deliberation nan measurement astir of you connected nan statement from nan expert organization certainly, look astatine america and worth america and I would ideate nan aforesaid is existent connected nan investor side.

And that was without really moreover talking a full batch astir further mill provender from Canadian Malartic itself, from nan Odyssey task itself. Again 20 years springiness aliases return 2 decades of accumulation based connected half of these underground resources, astir of that is now successful nan M&I category, I would imagine, not deferred anymore. So, not only will drill spacing. I deliberation adhd much excavation life. I deliberation nan hold drilling will adhd excavation life is our assessment, my belief that prefers to agelong you will besides adhd throughput.

So that, obviously, it's preferential for america to spot our partners putting through, up to 5% NSR worldly done that mill arsenic opposed to moreover 2% aliases conscionable benefiting from nan mill royalty. So that is tremendous news travel for us. It's caller days back, nan Thursday, I deliberation it was. And so, I deliberation much visibility connected that, much knowing supra that will only fortify nan story.

On Slide 8, I will velocity up present a small spot to get to nan existent financials. On Slide 8, I deliberation we've talked astir already, Mantos possibly 1 furniture deeper. We do expect a important uplift from Mantos this twelvemonth that deferrals from 2022 and 2023, not a large deal, but we're surely happy and looking guardant to seeing those deals travel through. I deliberation Q1 will still beryllium a small spot volatile for astatine slightest we're assuming it will, and thereafter we expect to spot deliveries steadily prime up. So that's bully news, and past nan commentary astir nan adjacent description and nan study that will travel retired successful H2 of this year, again I deliberation feels very, very positive. So we'll hold for our partners astatine Capstone to make that determination. But everything we're seeing and hearing, I'm judge nan aforesaid is existent for you bodes well.

With respect to Eagle, we saw collectively pinch america and them a tougher 2022, we were each expecting them to return a measurement guardant which turned into a measurement sideways and backmost a small spot if you will. The guidance for 2023 is affirmative again. And nan study that they put out, and nan inclination to get to fundamentally 200,000 ounces which is, what their caller excavation scheme property release, not study but caller excavation scheme property merchandise coming highlights aliases nan pics. I deliberation it's still a very affirmative spot to extremity up.

They request to do activity to get location but astatine first glance, that study looks positive, small spot higher costs for them, obviously. But we were pleased to spot that nan full ounces successful truth a small spot higher and nan mean accumulation still successful that 200,000 ounce scope that you've talked astir task 250, astir apt chat for different time best, but I deliberation moreover ending up astatine 200 dependable authorities is simply a triumph correct now and is simply a measurement alteration betterment for us. So we look guardant to them making advancement connected that.

And pinch respect to Eleonore astatine Newmont again conscionable past night, I deliberation it was overnight aliases yesterday morning, Newmont came retired pinch their numbers. And we were rather pleased successful position of nan commentary astir accrued productivity, accrued flexibility, 2022 apical 215,000 ounces produced and to beryllium pointing to 265% to 295% for those reasons I deliberation is bully news. So, we'll spot really that flows into nan year.

On Slide, consequent number of nan Slide 9, again, bully things happening crossed nan portfolio, whether it's nan ongoing description activity astatine Island that will afloat footwear successful by 2026 and successful clip will mean existent accumulation being betwixt 120,000 to 130,000 -- 135,000 range, I judge it was to much than doubling, but besides much of that, currently, nary of that accumulation comes from nan 2%, 3% royalty crushed successful clip much will, truthful that not only nan description , but their modulation onto our amended royalty crushed will beryllium a monolithic use to us. In 2022, we saw a small spot of a dip from Lamaque, their guidance for 2023 show nan opposite, a important improvement. So, bully news happening for america connected those assets arsenic well.

We're spending immoderate clip connected 10, Slide 10. It says, this morning, entering an important shape of growth, I deliberation we've entered it. I deliberation we've seen now a measurement alteration that hopefully should support and fortify successful position of really galore deals we're getting connected our quarterly and yearly basis, again 12% maturation past twelvemonth without our halfway assets benignant of hitting their afloat stride guidance this twelvemonth of 95,000 ounces to 105,000 ounces and that includes maturation from our existing plus base. It besides includes nan presumption that nan CSA transaction will adjacent present successful nan very adjacent word astatine slightest to metallic component, but nan only constituent of that woody that's certain, if you will, and has a February 1 effective date. So, 11 months of metallic from CSA.

We haven't factored successful either into nan guidance aliases nan outlook, nan copper watercourse imaginable because we don't cognize really overmuch if immoderate of that will travel in. But certainly, we're optimistic that we'll beryllium getting a adjacent chunk of it. But until we cognize what that looks like, we'll support it retired of nan guidance. And past an outlook for 5 years from now successful nan almanac twelvemonth 2027 of betwixt 130,000 ounces and 140,000 ounces. So again that sustained level of maturation connected assets that we have. There has been, I deliberation it's obvious, and it happens successful our portfolio immoderate slippage for sure.

I'll constituent to permitting astatine San Antonio. We had been talking astir seeing permit, San Antonio successful 2023. Sorry, and possibly arsenic early arsenic nan extremity of 2022, evidently very fewer group if immoderate are getting permits retired of Mexico correct now. So, we still dream that that will beryllium thing that tin move forward. This year, possibly it has to hold till 1 predetermination 2024, but we still person plentifulness and still spot plentifulness of clip for a catch-up, but that is simply a reasonably elemental aliases simpler task from a mining perspective, truthful caught successful that five-year clip sky for judge is our anticipation correct now.

Similarly, our Back Forty, astir apt a slippage of a twelvemonth that one, I deliberation we saw coming successful 2026, possibly it comes successful 2027. But nan slippage has to do pinch delays and feasibility study and past they'll really get re-permitted. So, immoderate slippage, but that's nan beauty of our portfolio arsenic heavy arsenic ours because location are different things that are coming on. Important to constituent retired arsenic good that successful that 2027 year, we do spot Renard based connected nan existent plans, petering out.

The gem watercourse there, though location are resources presently successful spot and a healthier entity that could perchance widen that, that's to beryllium wished for nan clip being. We conscionable presume that it's not nan lawsuit to beryllium cautious connected that asset. Obviously, we ever want to beryllium cautious connected that plus because history of it, but 5 years is simply a agelong time. And connected nan existent trajectory, but there's surely an anticipation that things tin perchance widen based connected resources that presently exist.

And if it doesn't, past that's coming retired of that barroom tin beryllium replaced by a metallic of production, and I would stress a metallic based connected immoderate of nan things that are not optionality category. Any mini -- immoderate operation aliases subset of first accumulation from Hermosa aliases Marimaca, for West Kenya aliases moreover Pine Point, tin you return immoderate mates of those and that tin dress up nan difference. So, really pleased pinch nan measurement things are shaping up. Nothing successful nan mining assemblage is simply a consecutive line, but very happy pinch nan advancement that our partners are making.

And again, erstwhile I punctual you astir what this institution looks for illustration successful position of nan existing producing assets, getting stronger pinch nan 1 objection of a short-life plus successful Renard, different each our halfway assets really person a agelong runway successful beforehand of them and they're getting bigger, not smaller, galore of them and nan caller ounces, nan caller assets that are coming connected strengthening america arsenic each erstwhile comes onto nan portfolio. Very pleased pinch this maturation trajectory that maturation stays successful complaint jurisdictions and we'll look to supplement it arsenic things are progressed.

So, I will constituent out, it is connected this, conscionable because I was asked a mates of questions we're going to do it otherwise. But, we're besides doing bully work. We're seeing bully activity progressed connected Amulsar, and successful Armenia, we effort not to talk astir it until location is an eventual extremity crippled there, but I deliberation everyone realizes that we've been trying to reactivate that stream. It's a really important plus that comes in, northbound of 200,000 ounces a twelvemonth and it was astir 70% complete 2 years ago.

So, yesterday, nan folks person picked it up would person highlighted that we've noticed that nan authorities of Armenia had a trilateral -- tri-lateral statement signed pinch nan company, arsenic good arsenic nan Eurasian Development Bank for $150 cardinal indebtedness portion to nan assets which goes a agelong measurement towards afloat backing nan remainder of nan building still request nan correct entity that travel successful location and decorativeness that for us. But a awesome measurement and nan authorities squarely down nan asset, making a batch of affirmative commentary astir it and nan request for it to move forward.

So, I would telephone that progress. I would telephone that important progress, but we're not factoring that into immoderate of our numbers until it's a done woody and really only mentioning it because I was asked from commencement to finish. Once that really moves forward, that's astir apt an 18-month to 24 astatine astir rebuilder completion of build cycle. So, hopefully that's thing that is hitting this five-year outlook sooner than later.

On nan adjacent fewer slides, we've taken a different attack astatine benignant of highlighting immoderate of nan catalysts successful our portfolio, somewhat chronologically ordered, somewhat not, but each different things that are happening successful nan adjacent twelvemonth aliases positive 2023, 2024. I talked astir nan first four, truthful I won't talk astir them again connected this page. But underscore nan truth that these are existent assets, accent connected nan real. These are existent catalysts. We're not stretching to travel up pinch bully news astir our portfolio.

Even if you took a fewer of these truth patterns alone, they would beryllium impactful to our company. If you return them successful aggregate, it's an embarrassment of riches. So, if we're talking astir nan advancement astatine Windfall, evidently pinch nan feasibility, nan powerfulness woody pinch nan Cree, this is an plus that has a ramp down location good beneath 600 meters. It's sewage 15 rigs connected it, 13 positive kilometers of underground improvement that is simply a phenomenal communicative for us, that's continuing to return shape.

We're bullish connected zinc. I personally, bullish connected zinc astatine slightest nan correct assets and I deliberation we person 2 of them successful Hermosa. So, we look guardant to nan FID determination mid-year. That's an important plus for us. At Osisko Metals, we were very pleased to spot Appian, nan backstage equity group retired of London measurement successful and make fundamentally $100 cardinal finance into that project.

And institution complete nan adjacent 4 years to gain up to 60% of it, $75 cardinal of that will spell into nan asset. Under somewhat expedited basis, it's a batch faster advancement to FID than Osisko Metals could person done connected their own. So, that's supercharging was an important plus for us. Based connected nan aged PA to put into position that could beryllium 9,000 GEOs depending connected your commodity value assumptions. 9,000 GEOs a twelvemonth erstwhile successful production. So, to person that starting to summation momentum is excellent.

Corvette is different 1 I'll talk about, and I will astir apt skip nan adjacent 2 conscionable to get to nan Q&A faster, but Corvette and nan 2% lithium royalty that we person connected what looks for illustration astir of nan imaginable Patriot Battery Metals deposit doesn't, yeah, location is nary assets yet. But it looks for illustration covers 70%, 80% of what mightiness it beryllium meaningful, fundamentally conscionable missing a corner. That's turned into complete nan span of a year, a microcap institution to a $1.3 cardinal entity agelong measurement from production, obviously.

But immoderate of nan astir important and awesome drilled I've seen successful lithium space, and champion 1 I retrieve is 25 meters of 5% lithium oxide, that's nan nonstop shipping aliases basically. So that was successful nan backmost of our portfolio. We fundamentally paid thing for it. We didn't salary thing for it and we person a 2% royalty connected that entity that shows you again nan optionality of nan royalty sector, and past I deliberation much specifically nan optionality of our portfolio. So, bully things happening. Again I'll jump to it, but bully things happening connected these -- connected each 3 of these pages.

I'll move backmost now to Fred -- Fred Ruel to locomotion you done nan specifics astir nan twelvemonth and nan Q4, and past I'll beryllium backmost pinch you to conscionable necktie nan things up.

Frederic Ruel

Thank you, Sandeep. [Foreign Language] Good morning. Thank you for joining america today. Let's commencement pinch immoderate highlights connected Page 15 of nan presentation. So, arsenic discussed grounds 89,367 (ph) GEOs successful 2022, an summation of 12% complete 2021. We had grounds revenues from royalties and streams of $218 cardinal compared to $200 cardinal successful 2021, which translated into grounds rate flows from operations of $175 cardinal compared to $153 cardinal successful 2021, which is simply a 14% increase.

Our rate separator was unchangeable astatine 93%. We person accrued our accordion characteristic of nan revolving in installments facility. We person extended nan maturity day arsenic good to September 2026. We person repaid our converts astatine nan extremity of December, utilizing $150 cardinal from our rate equilibrium and we drew nan remaining $115 cardinal from our in installments facility. We've besides repurchased 1.7 cardinal shares successful 2022 astatine an mean value of $13.

On Page 16, we coming our GEOs by plus and by commodity, golden represented 69% of our GEOs successful 2022, metallic 19%, and diamonds and different commodities, 12%.

On Page 17, we coming nan maturation successful our revenues from royalties and streams and nan maturation successful our operating rate flows compared to -- 2022 compared to 2021.

If we move to Page 18. Net net from our royalty and streaming business were $85.3 cardinal aliases $0.47 per stock compared to $76.6 cardinal aliases $0.46 per stock successful 2021. Adjusted net amounted to $111 cardinal aliases $0.62 per stock compared to $94.4 cardinal aliases $0.56 per stock successful 2021, of course, 2022 was an yearly record.

On Page 19, we person a summary of our quarterly and yearly results, including 25,000 GEOs for nan 4th fourth for a full of complete 89,000 arsenic antecedently mentioned, compared to 80,000 GEOs successful 2021. Gross profit amounted to $43 cardinal successful Q4 for a full of $150 cardinal successful 2022 compared to $139 cardinal for nan erstwhile year. Adjusted net successful Q4 reached $34.9 cardinal aliases $0.19 per stock compared to $23.8 cardinal aliases $0.14 per stock successful Q4 of 2021.

On Page 20, we coming a breakdown of our rate margin. So nan rate separator from royalties reached $40.8 cardinal successful Q4 and $143 cardinal for nan full year. The rate separator from our streams amounted to $17.4 cardinal successful Q4 and somewhat beneath $59 cardinal for nan twelvemonth for a grounds $201.7 successful 2022 compared to $187 cardinal successful 2021.

On Page 21, we coming nan worth of shares buyback and dividends paid and usability of nan mean golden value connected an yearly basis. During nan past 5 years, we person returned successful dividends and stock buybacks astir one-third of our GEOs.

And finally, connected Page 22, you'll find a summary of our financial position astatine nan extremity of past year. Our rate equilibrium was that $90.5 million, we held investments adding a worth of conscionable somewhat beneath $400 million. Our indebtedness stood astatine $150 cardinal pursuing nan repayment of nan converts. We presently person $600 cardinal disposable nether our in installments facility, including nan accordion of $200 million.

So successful summary, different awesome 4th led by beardown deliveries and a beardown golden price. The twelvemonth 2022 saw grounds quarterly and yearly rate margins and operating rate flows. We've completed nan realignment of Osisko arsenic a axenic royalty and streaming company, and we look guardant to proceed to turn successful 2023 and successful nan coming years.

I will now move nan telephone backmost to Sandeep earlier we unfastened nan lines for questions.

Sandeep Singh

Yeah. Thanks. Thanks, Fred. And possibly conscionable nan past thing, I would constituent retired connected those past 2 slides that Fred alluded to. On '22, worthy noting that we still person to money nan CSA transaction hasn't closed yet. So that will travel disconnected our in installments facility, depending connected really overmuch of that woody we take, certainly, nan silver, but depending connected nan copper.

But nonetheless, our equilibrium expanse remains exceptionally strong, person a batch of firepower astatine nan correct clip connected nan in installments installation still, to our rate flow, which was meaningful past twelvemonth depending connected golden value should turn this twelvemonth rather substantially, and past nan equity book arsenic well, which is little liquid, but we surely want to make immoderate inroads connected this twelvemonth and we deliberation that's very overmuch achievable.

So erstwhile you look astatine Slide 23, we deliberation we person nan correct mix. We've sewage meaningfully aliases credibly elder standard assets. We focused and we will proceed to attraction connected high-asset quality. We're going to support nan level of consistency. You've seen from america level of simplicity and we're going to let our assets activity and that integrated maturation that we talked astir and fto it unfold.

That said, we spot things we'd like, that we originated ourselves, we will person nan condemnation to autumn done pinch them. And arsenic I said, we person nan equilibrium expanse to do it. And if we don't, we'll stay wholly disciplined. It's a beautiful elemental look for us. But 1 that I deliberation unlocks a important magnitude of value. If you look astatine nan bottommost of nan descent and I deliberation if we enactment focused connected what I conscionable described to you astatine nan bottommost of nan slide, frankly takes attraction of itself because this is simply a portfolio is excessively important.

We're doing nan correct things pinch it. And if you look astatine really nan assemblage arsenic a whole, I deliberation is adjacent to opportunity is, challenged for maturation and struggling for growth. I deliberation we've sewage nan correct look to win wrong it. And that's what we hopefully person shown you successful 2022 successful anterior and that's what we deliberation will unlock a batch of worth successful 2023 and beyond.

Thanks for listening to Fred and I connected that piece, and surely unfastened to immoderate questions, usability erstwhile you're ready.

Question-and-Answer Session

Operator

Thank you. Ladies and gentlemen, we will now statesman nan question-and-answer session. [Operator Instructions] Your first mobility comes from Cosmos Chiu pinch CIBC. Please spell ahead.

Cosmos Chiu

Great. Thanks, Sandeep and team, and congrats connected a very beardown Q4. And Sandeep, bully talking to you again it's been a while. Maybe my first mobility is connected your Battery Metals here, nan Patriot Battery Metals. As you mentioned, Sandeep, it's a beautiful agelong term. And it benignant of speaks to nan optionality of your exemplary here. But really do you worth it, astatine this constituent successful time, fixed that there's only a fewer drill holes, but besides fixed nan truth that it is now complete a $1 cardinal marketplace headdress company? So, really do you internally worth it? How should we look astatine it? And past from that perspective, what are you going to do pinch it? Are you conscionable going to support successful nan portfolio for optionality, aliases is location alternatives successful position of perchance monetizing it shorter-term?

Sandeep Singh

Yeah. Sure. Those are bully questions and it's funny wherever you started your question, your comment, Cosmos because I did spot you astatine nan airdrome astatine yesterday. As you walk, walk maine nan committee of plane. No, look, I deliberation connected nan Battery Metals side, it's thing we've said, our attraction is going to stay golden and metallic possibly to commencement pinch nan backmost extremity to your question, our attraction is going to stay increasing our precious metals, rate travel and NAV per stock successful nan different category, which we conscionable had much flexibility.

And I deliberation anybody, I deliberation what we've shown you and said and past shown you successful 2022 is simply a penchant for copper successful that space, especially, if we get amended deals and judge nan longer life assets and nan process. But that's, successful moderation without changing what I've said to you astir nan focus. The truth that we tin propulsion thing for illustration 2% NSR connected astir of Corvette retired of our backmost pocket, I deliberation it's conscionable -- is an exceptional example. And past possibly a large illustration but it's an illustration of nan optionality of this portfolio.

The truth that we do person specified a ample improvement waiting. We person a ample exploration waiting that group don't moreover get to. Because you don't request to get to it, if you're trying to worth america and get to 1 times NAV. You don't request to attraction wrong that different category, but it matters. And those are nan types of things that person driven nan incumbents, larger peers successful our group for a agelong time. We conscionable haven't had nan use of it arsenic a comparatively -- nan comparative newcomers. So, to person those types of wins and imaginable wins successful nan portfolio, I deliberation is special.

In that script -- that circumstantial scenario, again, we paid thing from it -- for it arsenic crushed that we had from nan Virginia acquisition that yet ended up successful Patriot Battery Metals. And yeah, I mean evidently we worth it, it's early days. I mean really correct tin meet our evaluations erstwhile location is simply a assets is nan mobility mark, but obviously, we effort to support tabs connected everything we have. At nan extremity of nan day, it doesn't matter. It's worthy a heck of a batch much coming than it was six months ago. And I deliberation nan marketplace is telling that pinch nan measurement they are valuing nan institution obviously, lithium will ebb-and-flow and we'll spot wherever it shakes out. But each it is, is simply a bully caller story.

We also, I should constituent retired done fiscal development, they took nan remainder of inheritance that wrong James Bay, they've already associated ventured retired pieces of it because it's not going to -- they're not going to get astir to it themselves, but they've retained upside but associated task pieces of that to different companies. And so, hopefully there's different folks doing drilling there. We person a 3% royalty connected each of it. Hard to opportunity that we'll get different illustration for illustration this one, but if there's thing that benignant of continues to get worth retired of nothing. I deliberation that's bully news.

In position of nan halfway -- corners (ph) if you will of that plus to us. I've often said erstwhile I asked would we waste royalties, I've often answered no. These things are very difficult to combine and you don't want to get them up. If you don't person to. But I deliberation nan truth is everything ever has a worth aliases astatine least, it should. And this is 1 wherever for illustration you said its long-dated if it matters much to personification other than it does. We will listen, and that's existent of a batch of it should beryllium existent of everything. But I deliberation successful this case, fixed nan commodity and nan [indiscernible] and nan clip sky to it. I deliberation that's existent of this 1 than thing else.

So, awesome to person it. If you'd asked maine astir Corvette aliases specifically nan SGI claims, a twelvemonth ago, I would person had a dumb look connected my look and making thing other because we didn't cognize we had it, fundamentally aliases erstwhile you adhd it. We didn't cognize it mattered. A fewer drill holes successful nan mining assemblage tin alteration a lot.

Cosmos Chiu

Of course. Maybe switching gears a small bit. Going to Victoria Gold, you benignant of touched connected it, Sandeep earlier successful nan presentation. But Eagle, nan Eagle excavation had an updated excavation scheme earlier today. As we saw little yearly accumulation but longer excavation life and it seems for illustration higher CapEx. I'm sure, arsenic you said, you support soul models connected each your assets, for illustration really does that comparison successful position of your soul expectations, were you expecting benignant of a longer excavation life, little yearly production? I deliberation you mentioned that it was bully news communicative earlier during nan presentation, but could you possibly locomotion america through, did it meet your expectations?

Frederic Ruel

Yeah, look. I'd say, yes. In position of nan excavation plan, we evidently person conversations pinch our partners astatine each times. They tin stock a small spot much pinch america and then, now we're dealing pinch nan aforesaid accusation that everybody has. But I will caveat my comments pinch nan truth that I still need, we arsenic nan squad still request to move done that property release. So I conscionable skimmed it this greeting and we had a little chat astir it. But overall, I think, erstwhile I saw and again pinch that caveat, possibly I missed something.

I deliberation successful nan afloat -- life of mine, there's a trickle higher production. To beryllium honest, that’s evidently dispersed retired complete a longer. So, nan backmost extremity is simply a small spot different. Over nan adjacent fewer years, I deliberation we're seeing benignant of what we expect to see. And I deliberation connected mean complete nan adjacent 8 years aliases complete an 8 twelvemonth play of astir that 200,000 ounce mark. So that's benignant of wherever we've been expecting them to go. Obviously, for nan clip being aliases possibly for nan foreseeable -- possibly for wherever nan task 250 is not successful nan cards but moreover so, I deliberation conscionable getting up to that 200,000 steady-state level, I deliberation bully news, it's coming astatine a cost.

I deliberation nan truth of nan mining sector. And I deliberation if you've been pursuing arsenic I'm judge each of you have, nan guidance number is coming retired for 2023 truthful far. I deliberation we've seen mostly speaking, a small tougher to get nan ounces retired of nan crushed and costs more, right? So I deliberation that's a thematic crossed nan full sector. That's not circumstantial to Victoria. But conscionable arsenic a usability of wherever we are from an ostentation position for nan next, for a while, if it's sticky successful nan world, it's moreover stickier successful nan mining sector.

So, we're comfortable pinch what that is and again that's a small spot of a dichotomy of operating institution versus royalty company. But I deliberation we're beautiful pleased pinch what they've put out. We look guardant to, arsenic I said, spending much clip going done it. And past obviously, getting nan method study wrong nan adjacent 45 days. So further look into it.

But wide I deliberation for us, we're happy pinch what we're seeing. I deliberation nan modulation for them from azygous plus developer to producer, that's 1 that's crippled a batch of companies. I deliberation they've really dealt pinch it well, particularly during a COVID period, inflationary period. We're surely pleased pinch our partner, but we brought to marketplace participants are looking guardant to a amended 2023.

Cosmos Chiu

Perfect. Thanks, Sandeep, again for your very bully answers, and I'm judge I'll support bumping into you astatine airports.

Sandeep Singh

Yeah. Try not to hide talking to maine today.

Operator

Your adjacent mobility comes from John Tumazos. Please spell ahead.

John Tumazos

Thank you. Just looking astatine nan banal prices of your operators arsenic lead indicators, Sandeep. Island Gold, Alamos appears to beryllium doing well, Capstone appears to beryllium doing well. Some of these acold distant companies I'm not acquainted pinch that. But what are immoderate of your different operators wherever nan stock value is simply a bully lead indicator? And past aft you springiness maine nan bully news, I'll inquire you immoderate questions astir nan different ones.

Sandeep Singh

Yeah, look, I mean, that's -- fto maine explicate correct slides. I think, look, I deliberation that's a bully point. I mean, mostly speaking, stock prices will do what they do. I deliberation our partners wide had a very beardown 2022 and I deliberation they're poised to person a beardown 2023 whether you look at. Obviously, it was a reliable time past week for Agnico for instance. But I deliberation that communicative is still exceptionally strong. You mentioned, Capstone, you mentioned, Alamos. I deliberation if you look astatine our partners arsenic a whole, you propulsion successful Newmont successful location pinch Eleonore, truthful successful SSR and Eldorado, I deliberation our partners are connected nan upswing. I do think, location is simply a -- arsenic I touched connected it pinch Cosmos questions, I do deliberation location is simply a quality a small spot successful that.

On nan operating side, we are seeing costs pressures. We're still seeing CapEx pressure. So I deliberation if you've seen immoderate weakness successful stock price, it has to do pinch that broadside of nan equation, and past nan beauty for america arsenic we've re-positioned ourselves is nan rate -- nan costs broadside of nan equation doesn't facet aliases arsenic overmuch arsenic agelong arsenic our partners are pushing guardant pinch nan initiatives that we request to push guardant pinch arsenic agelong arsenic our assets proceed to matter to our operators and our partners. And from that perspective, I would show you that they perfectly do. Because we're mostly talking astir assets that are apical 1 aliases 2 to our partners. They're spending a batch of power connected them and they are important to their business, they're low-cost mines for nan astir part. So, I deliberation we'll proceed to spot a batch of positivity from our partners connected our assets.

John Tumazos

So, talking astir nan ones wherever nan stocks didn't spell up. Where do you deliberation is simply a bully clip framework to expect Agnico to person East Gouldie arsenic a proven and probable reserve aliases do you deliberation it's going to beryllium like, Odyssey wherever they conscionable nutrient nan golden and don't fuss to archive reserves.

Sandeep Singh

Yeah. Look, I mean, I deliberation we had nan first trickle of reserves this twelvemonth successful nan full Odyssey deposit. I deliberation nan M&I is -- M&I for Nickel astir apt reserves for astir people. I deliberation that's nan measurement -- they'll astir apt position it. So to person northbound of 6 cardinal ounces successful nan Alumni category, a large lift, almost 3 times versus what was successful location past year, bully news. They're drilling from aboveground mostly immoderate underground drilling now successful 2022, I think. And I dream that, that meaning drilling will conscionable intensify has to person much entree connected nan ground, still hitting it really difficult from a drill position successful 2023. I deliberation it's still nan aforesaid 13 rigs doing fundamentally nan aforesaid magnitude of drilling arsenic nan past 2 years.

John Tumazos

If we move to Odyssey, that's down almost 80% from erstwhile you first announced nan statement of nan company. What are nan things that attracted you to nan Barkerville acquisition? And would you ne'er for illustration make a spot acquisition again aliases not successful a constrictive vein structure, what are nan outlooks for those?

Sandeep Singh

Yeah. Look, I mean, I deliberation we tin spell backmost and play our business history. Certainly, location was a logic astatine nan clip to protect an plus that mattered and put it backmost into nan correct conveyance that are funded amended backmost successful that -- not massive, but that's precisely what ended up happening, unfortunately, pinch a batch of symptom successful betwixt from a marketplace perspective. So no, that's not thing we're looking to ever revisit. I still deliberation that -- and you're perfectly right, nan stock value of Osisko improvement was reliable successful nan past 2 years. It wasn't a batch amended for astir improvement companies, but it surely was reliable connected nan Osisko improvement side.

My dream and anticipation is that, that tin bottommost retired and commencement to person an upward inclination again successful 2023. I deliberation it will beryllium driven mostly disconnected nan enthusiasm that nan marketplace has for Tintic and that high-grade communicative successful Utah. That first resource, I think, connected a postage stamp was really good. The truth that, that postage stamp (ph) of 7% to 10% of nan imaginable mineralized envelope, really good, nan truth that I person a full electrical and Robert [indiscernible] drilling connected their contiguous bound for heavy copper porphyry imaginable that if they find nan full world will perceive about, and we'll modulation complete nan boundary.

So I deliberation each that will beryllium nan bully news story. Otherwise, you get paid to hold from a Caribou position pinch nan feasibility successful and nan permitting is still expected for this year. I don't return that successful nan stock. So hopefully, betwixt those 2 benignant of flagship assets and immoderate permitting bully usage from a San Antonio perspective. Hopefully, it tin beryllium a turnaround year. We're happy to spot them return successful immoderate much money and person nan costs to spell aft their assets proceed to spell aft their assets aggressively. So yes, reliable one, absolutely. We each return it connected nan [Multiple Speakers]

John Tumazos

[Multiple Speakers] method reports and they're successful permitting, but their banal lags, do you conscionable constitute that disconnected to nan batch banal marketplace for golden stocks?

Sandeep Singh

Yes. I don't deliberation you could do thing else. I mean nan asset's tremendous. The catalyst they've had are real. I touched connected them earlier. So I deliberation it's unfortunate that nan marketplace still doesn't springiness improvement companies capable credit. I deliberation nan finance dollars have, particularly successful 2022 gone towards producing names. And hopefully, we'll spot a marketplace that's a small spot amended for nan improvement names. That matters to america connected nan stock price. It matters to a mini perspective. We want to spot that institution win successful each way. We've sewage nan royalty connected nan royalty side. We deliberation nan worth of our assets has grown connected nan stock side, it hasn't. But I don't suffer immoderate slumber complete Osisko mining. It's conscionable excessively typical of an asset, and it fits connected 1 hand, very easy successful position of nan things you could comparison it to successful nan market. So I deliberation that will person its momentum, truthful I’m not judge (ph).

John Tumazos

Is Falco 1 that has a timetable to proceed. That's 1 wherever nan stock is benignant of beautiful dormant.

Sandeep Singh

Yes. Look, if it does, I mean, I deliberation it's reliable to constituent to it correct now. That's not 1 wherever we person to benignant of perpetrate it dollars until their occurrence going forward. So we dream that location is, but we're not benignant of advocating coming and tallying (ph) each nan array that location will beryllium successful immoderate benignant of clip statement that we tin constituent to. Again, I dream that location is because I deliberation it's an important 10 cardinal ounces that's valuable. I mean if Wasamac or, for instance, tin beryllium railed to Malartic past those ounces should matter excessively successful that area.

But until Glencore benignant of figures retired what it's doing pinch nan authorities successful position of their emissions until they benignant of fig retired really to beryllium -- really to fresh successful nan municipality of [indiscernible] from a agelong word perspective, I deliberation it's reliable to opportunity that nan underground ounces beneath nan Horne 5 are going to get a batch of attention. So that's benignant of action value, I deliberation I would constituent astatine this point. I dream it does travel good, but I don't person a clip statement for you, John.

John Tumazos

So if I could travel up connected nan earlier mobility from Cosmos. There's a number of emerging artillery metals royalty companies. That's a bully promotional theme, I conjecture they request assets. The lithium prices travel off, nan EVs aren't trading good this month, but nan banal marketplace has an appetite. Two of nan worst proposals I ever sewage that I garbage to person to speak successful my convention pinch lithium companies, either connected nan ground of metallurgy aliases 1 of them had 3.4 cardinal tons of assets per assay, for illustration nary data. So why not waste Corvette into nan lithium bubble to personification that mightiness beryllium capable to beforehand it amended arsenic a axenic play connected lithium?

Sandeep Singh

No logic different than we're not successful nan business of giving distant worth for little than what we deliberation it's worth. So I deliberation that, that logic holds. I don't cognize what happens to lithium assemblage successful nan mean term, agelong term. I do cognize that nan world needs much lithium assets, does it request each of them, clip will tell. But this -- moreover though it's an early shape one, I deliberation it's 1 of nan amended ones retired location that we tin see. So we for illustration what we spot here. It's early days.

We're very happy pinch nan advancement they're making. We look guardant to seeing much some connected nan exploration, yet nan assets connected nan metallurgy side, but it each bodes well. The level of value that nan Quebec authorities is placing connected artillery metals, lithium, successful particular. I deliberation you've seen it and nan different things that are progressive successful is high. The authorities wants Quebec to beryllium a awesome subordinate connected nan world standard from that perspective.

So a batch of bully things, moreover though it's very early, there's a batch of bully things pointing successful nan guidance of that and we'll either fto that unfold if personification wants to -- that's successful nan different class wherever I deliberation analysts prescribe $100 cardinal successful that too, if you judge successful nan norm of thumb that says each constituent of royalty is worthy 4 aliases 5 of nan assets and nan marketplace headdress will connote that this plus unsocial is worthy 9 figures.

It sits successful different NAV handbasket that has 9 figures to it successful totality, a batch of bully things successful there. So it's a bully spot to be. We'll return america for nan clip being and watch it. But if ever it matters much to personification other than it does to america than to beryllium it.

John Tumazos

Thank you, Sandeep.

Sandeep Singh

My pleasure, John.

Operator

[Operator Instructions] Your adjacent mobility comes from Ralph Profiti pinch Eight Capital. Please spell ahead.

Ralph Profiti

Hey. Thanks, Sandeep. Just 1 speedy mobility for me, if I may. The first half of 2023, that's what you person successful your position pinch respect to nan CSA transaction. Just wondering, is that -- should we beryllium reasoning astir that arsenic a spot holder? It's been a while since we've heard from nan Metals Acquisition Corp guys connected nan advancement of this analyzable transaction. So conscionable wondering what you're reasoning astir nan timing of that -- and is nan metallic and imaginable [indiscernible] copper watercourse would we perchance spot those participate into nan guidance erstwhile nan woody closes, meaning that metallic and that copper would travel successful instantly upon woody closing?

Sandeep Singh

Yes. Look, bully question, Ralph and bully morning, and you're right. As that transaction has been very agelong successful nan [indiscernible]. I don't [indiscernible] for destacking transactions, if you want to support your life simple. But I deliberation nan squad location has done a phenomenal occupation retired -- put retired lasting, a beautiful nasty driblet successful nan copper value past year, recutting a woody pinch Glencore that makes much sense, recutting a woody pinch america that makes much consciousness for america and now coming to nan very tail extremity of that transaction. So conscionable earlier Christmas, nan overseas timing, but conscionable earlier Christmas -- aliases sorry, betwixt Christmas and New Year is, I can't precisely callback -- they launched their F-4 connection pinch nan SEC, their prospectus fundamentally going backmost and distant now. And that was 1 gating item.

So our dream is that, that gets done successful nan very adjacent term. They're putting a pin successful their tube financing and getting to a actual (ph) aliases vote, if not precocious March, let's astir apt telephone it, April. So that 1 is coming to a head. We person factored successful nan metallic into that guidance number for 2023 pinch an effective day of February 1. So we factored successful 11 months of metallic if that doesn't travel in, past nan guidance, nan scope that I would constituent you to is much mediate of that scope than connected apical of that range. But that's what we've done because we're beautiful assured astir it aft and that hasn't ever been true. I was describing it arsenic a coin flip successful nan mediate of 2022. And now I spot very bully visibility to nan extremity result.

In position of nan copper, it doesn't really matter because there's -- moreover though nan copper, it's each producing today, obviously, I'd punctual you that successful nan deal, we gave them fundamentally a one-year hiatus connected nan copper. So it starts -- it would commencement successful 2024 anyways. So that would beryllium successful nan guidance number for adjacent year. So it's not successful nan 2023 number nor is it successful nan 2027 number, we'd person an opportunity to revisit that adjacent twelvemonth depending connected really overmuch of that copper has taken. But yes, aft -- yes, aft a agelong lull, spot me, we felt it, it's bully to beryllium seeing daylight there.

Ralph Profiti

Understood. Thanks very much.

Sandeep Singh

No problem, Ralph. Thank you.

Operator

There are nary further questions astatine this time. Please proceed.

Sandeep Singh

Okay. Great. Thank you, operator. Thanks, everyone, for base pinch america for almost precisely an hr and really happy pinch nan measurement we ended nan year, really happy pinch really we're group up to unlock worth successful 2023. We do deliberation we've done a batch of nan dense lifting and nan communicative is resonating correct now. So we intend to benignant of support aft it, and hopefully, we'll person bully things to travel backmost to you with. Our partners are surely doing that. And hopefully, we'll proceed to spot a bully pipeline of opportunities for us. So acknowledgment for your time, and we'll talk soon. Thank you.

Operator

Ladies and gentlemen, this concludes your convention telephone for today. We convey you for participating and inquire that you please disconnect your lines.