- Are you interested in investing in gold but are concerned by the high risk typically associated with buying shares of gold producers?
- What if I were to tell you that an investment in shares of Osisko Gold Royalties is a better, lower-risk way to invest in gold.
- That’s because Osisko is a royalty company, not a gold producer.
- What’s the difference? what is a royalty exactly? And why are royalties a lower-risk form of investment?
There are many types of royalties, but a net smelter return royalty, or NSR royalty, is the most common and equates to directly owning a percentage of the refined gold production generated from a mine.
Therefore, Osisko has an ownership in the revenues of the mine, not the profits.
That means that Osisko receives its share of gold ounces regardless of whether the costs at the mine go up or down, which provides for stable, lower-risk cash flow.
Another benefit of Osisko’s royalties is that they are perpetual: as long as the mine continues to produce gold, Osisko will continues to collect royalties.
An investment in Osisko is also better than buying physical gold because you have no storage fees or insurance costs associated with holding gold directly.
- With an investment in Osisko, you’ll be exposed to two of the largest gold mines in Canada and two of the premier royalties in the world.
- Osisko also pays a stable dividend!
- Osisko Gold Royalties: The better gold investment
Osisko is an intermediate precious metal royalty and stream company focused on the Americas that commenced activities in June 2014. It holds over 50 royalties and streams, including a 5% NSR royalty on the Canadian Malartic Mine (Canada), a 2.0% to 3.5% NSR royalty on the Éléonore Mine (Canada) and a silver stream on the Gibraltar Mine (Canada). It maintains a strong financial position with cash resources of $423.6 million at March 31, 2017 and has distributed $35.1 million in dividends to its shareholders during the past ten consecutive quarters. Osisko also owns a portfolio of publicly held resource companies, including a 15.3% interest in Osisko Mining Inc., 13.3% in Falco Resources Ltd., and 35.2% interest in Barkerville Gold Mines Ltd.
For more information on Osisko Gold Royalties (OR.TO) please fill out the form below.