A Raymond James report relayed how this royalty
and streaming firm intends to use the proceeds.
In a Dec. 19 research note, analyst Brian MacArthur reported that Osisko Gold
Royalties Ltd. (OR:TSX; OR:NYSE) received about CA$159.4 million, or
US$118.5 million, from Pretium Resources Inc. (PVG:TSX; PVG:NYSE) from its
repurchase of Osisko's interest in the Brucejack mine's gold-silver stream.
Following the sale, Osisko still has exposure to Brucejack via its offtake agreement
for 50% gold.
MacArthur noted that Osisko intends to use the monies from Pretium to
reduce its debt and buy shares. It will pay the CA$58 million that are
outstanding under its revolving credit facility, after which about CA$30
million will remain due.
Also, the company will apply up to CA$100 million toward buying back
shares in line with a previous announcement and "under its normal course
issuer bid," the analyst explained.
MacArthur pointed out that such a share repurchase will not impact Osisko's
2018 production guidance, which remains at 77.5–82.5 thousand ounces of gold
equivalent.
Raymond James has an Outperform rating on Osisko, whose share price is
~CA$11.77.
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