Osisko Mining Corporation

Osisko Mining Corporation

February 16, 2010 18:50 ET

Osisko Releases Year-End Financial Results and Review of 2009

MONTREAL, QUEBEC--(Marketwire - Feb. 16, 2010) - Osisko Mining Corporation (TSX:OSK) (FRANKFURT:EWX) is pleased to report its review of activities and financial results for the year ended December 31, 2009.

During 2009, Osisko achieved several major milestones as the Company continued its transformation from an explorer to a mining development and operating company. Major highlights for the year included:

  • Securing over $1 billion in equity and debt financing to fund the development of the Canadian Malartic Project and other corporate growth opportunities;
  • Obtained the Quebec Government authorizations to initiate the development of the Project following an extensive public hearing process;
  • On August 27, 2009 initiated the construction and development of the Canadian Malartic mine site facilities;
  • Increased proven and probable gold reserves by 42.8% to 9 million ounces of gold, confirming Canadian Malartic as a world class gold deposit;
  • Advanced the residential and institutional relocation program to near completion;
  • Negotiated several exploration agreements to allow the Company to participate in advanced and grassroot exploration projects with the strong potential to build on the Company's reserve and resource base;
  • Growth of 321% in asset base to $1.4 billion;
  • Incurred a loss of $20.8 million due to higher administrative costs reflecting the growth in the Company's activities and a foreign exchange loss following the strengthening of the Canadian dollar against the US currency.

Mr. Sean Roosen, President and CEO, commenting on the 2009 activities stated: "We are extremely proud of our achievements and the efforts of our employees, consultants and contractors as we move our Canadian Malartic Project through the development process, towards our goal of transforming Osisko into a leading intermediate gold producer. Our team's strong performance has translated into a solid return for our shareholders: over the past year we have seen our share price increase by 132%, and our market capitalization increase by 368% to $2.8 billion. We will continue to be focused on creating value for our shareholders, and anticipate another great year ahead for Osisko as we move towards the completion of our mine build. We also have confidence that our large exploration program for 2010 will again add ounces to our resource table. We would like to thank all of our stakeholders for the confidence they have shown in our Company over the past year, and we look forward to the promising year ahead".

Financial Results

During the fourth quarter, the Company incurred a loss of $8.4 million compared to a loss of $2.1 million in the corresponding period of 2008. The loss is mainly attributable to growth in corporate and general administrative activities as the Company moves towards becoming a gold producing company. The Company was also affected by the strengthening of the Canadian dollar against the US currency.

For the year, the Company incurred a loss of $20.8 million compared to a profit of $1.5 million in 2008. The variation results from higher corporate and general administrative expenses due to growth in corporate activities, a $10.4 million variation in the foreign exchange loss, lower interest income despite higher cash balances on hand, and lower future income tax recoveries from the renunciation of exploration expenses to flow-through subscribers.

As the Company is in the development stage, there is no operating revenue. Commercial production at Canadian Malartic is expected in second quarter of 2011.

Financial highlights are as follows:

(In thousands of dollars) 2009   2008 2007  
Cash 790,187   95,655 182,078  
Working Capital 760,400   92,689 183,476  
Total Assets 1 338,773   318,192 264,394  
Total Debt 180,069   25,398 -  
Shareholders' Equity 1 112,302   267,269 252,538  
Net Income (Loss) (20,754 ) 1,463 11,792  
Net Income (Loss) per share (0.08 ) 0.01 (0.09 )
Investment in Mining Assets 276,497   122,143 47,560  

The 2009 year-end financial statements and Management Discussion and Analysis (MD&A) will be filed on SEDAR prior to March 31, 2010.

About Osisko

Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Canadian Malartic deposit currently represents one the biggest gold reserves in Canada for a single deposit, and is still growing through ongoing drilling on new mineralized zones. Current reserves for the Canadian Malartic property (including the adjacent South Barnat deposit) are 8.97 million ounces, plus a global measured and indicated resource of 2.23 million ounces and an inferred resource of 0.47 million ounces (see press release of February 10, 2010).

Forward Looking Statements

Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all technical, economical and financial conditions will be met in order to put the Canadian Malartic Project into commercial production, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, access to skilled consultants, mining development and mill production personnel, results of exploration and development activities, the Corporation's limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in greater detail in the Corporation's most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. The Corporation cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Corporation's forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

Contact Information

  • Osisko Mining Corporation
    John Burzynski
    Vice-President Corporate Development
    Osisko Mining Corporation
    Sylvie Prud'homme
    Investor Relations
    Toll Free: 1-888-674-7563