The royalty business isn’t an easy one. First, you risk millions of dollars acquiring a royalty for an asset who’s production profile is usually a few years away at the best of times.
Then, once in production, your earnings are beholden to the ability of other management teams to execute on production plans in a way that keeps your own business afloat for years to come.
All while attempting to pay off the debt on your books that exists from obtaining the royalties.. While trying to obtain more royalties. Not to mention the other royalty providers you’re competing with while trying to squeeze out a profit.
It’s a story Osisko Gold Royalties (TSX: OR) knows all too well, as their latest financial results demonstrate.
Lets dive in.
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