(Photo: Denis Lalonde)
What to do with Osisko Gold Royalties, BCE and Apple titles? Here are some recommendations from analysts that may move prices soon. Note: the author may have a totally different opinion from that expressed.
Osisko gold royalties: forecast reduction for second half of fiscal 2020
Osisko Gold Royalties (GOLD, $ 16.50) released its second quarter results a little ahead of time, showing adjusted earnings per share of $ 0.03, performance in line with analysts’ expectations, and production of 12,300 ounces of gold for the period.
Scotiabank analyst Trevor Turnbull notes, however, that the company’s update for the second half of the year is 14% lower than expected. “The next two quarters are going to look like the first quarter rather than reflect the growth we expected,” he wrote.
However, Mr. Turbull remains of the opinion that Osisko stock continues to trade at a discount and that the company has the best growth forecast among its peers.
The analyst notes that Osisko is expected to spend $ 5 million on exploration by the end of the year.
Osisko also ended the second quarter with cash of $ 202 million. “The company can have access to $ 600 million. She can still use $ 311 million of the $ 400 million on her credit facility, and she can also have access to a $ 100 million accordion loan, ”he notes.
The analyst is keeping his outperformance recommendation on the stock, as well as his one-year target price of $ 21. Mr. Turnbull specifies that his forecasts are based on an average price of an ounce of gold of US $ 1,750 in 2020, 2021 and 2022. He then anticipates a decline towards US $ 1,400 by 2025. The value of the yellow metal broke the symbolic mark of US $ 2,000 an ounce for the first time this week.