10:54 AM EDT, 07/08/2024 (MT Newswires) -- Osisko Gold Royalties ( OR ) said Monday that it earned 20,068 attributable gold equivalent ounces in the second quarter.

The company recorded preliminary revenue from royalties and streams of $64.8 million during the second quarter and preliminary cost of sales of $2.2 million, reflecting a quarterly cash margin of about $62.6 million, or 97%.

As of June 30, Osisko's cash position was about $65.7 million, following $44.2 million in repayments on the company's revolving credit facility during the second quarter.

The company's revolving credit facility was drawn by about $109 million at the end of June, with an additional $441 million available to be drawn plus the uncommitted accordion of up to $200 million.

The company will release its second-quarter results on Aug. 6 after market close.

Meanwhile, National Bank said Monday that it has reiterated its "Outperform" rating and a price target of $26 on Osisko while noting that the preliminary Q2 sales were below NBF estimates.

National reiterated its Outperform rating as OR was trading at 1.17x NAV (excluding Eagle), compared with Intermediate royalty peers TFPM at 1.58x and SSL at 1.17x. The bank noted OR continues to trade at a discount to Senior peers (FNV, WPM & RGLD) at 2.15x

"Given that royalty sector is expected to generate strong FCF at current gold prices, we believe a competitive deal environment is likely to contribute to consolidation within the industry," the analysts noted.

Also, the analysts said they see several companies in the sector motivated to buy the company's portfolio given its strong near-term growth pipeline, largely derived from politically stable jurisdictions including: Canadian Malartic, Island Gold, Mantos Blancos and the CSA mine.

National said: "There's scope for a further re-rating given the company's depressed valuation relative to larger-cap royalty peers and premium valuations ascribed to recent acquisitions within the sector."

On last look on Monday, the company's shares fell over 1% in Canada and slipped 1.4% in U.S. trading.

Price: 21.86, Change: -0.33, Percent Change: -1.49