Osisko Development Reports Third Quarter 2025 Results

Osisko Development announced its third quarter 2025 financial and operating results. The key highlight is the company's financial position, with C$401.4 million in cash and cash equivalents as of September 30, 2025. This strong cash position is the result of several significant financing events that closed during and subsequent to the quarter: - A US$100 million initial draw from a credit facility with Appian Capital Advisory Limited. - A US$203.1 million private placement of units at US$2.05, which closed in August 2025. - An C$82.5 million private placement, including flow-through shares, which closed in October 2025.

Operationally, for Q3 2025, the company reported C$4.4 million in revenue from the sale of 877 ounces of gold, primarily from its Tintic project. The company reported a net loss of C$150.3 million, or C$0.80 per share. This loss was heavily impacted by a C$111.3 million non-cash change in the fair value of its warrant liability.

At the flagship Cariboo Gold Project, pre-construction activities are advancing. As of the end of the quarter, 6,900 meters of a 13,000-meter infill drill program had been completed, alongside 1.9 kilometers of underground development. The company also strengthened its management team with the appointment of Scott Smith as Vice President, Exploration.

The Q3 2025 results are materially positive. While presented as a routine quarterly report, the release serves as the official confirmation that Osisko Development has successfully completed its transformative financing plan, securing the capital required to build its flagship Cariboo Gold Project.

The most critical takeaway is the C$401.4 million cash position. This removes the financing overhang, which is the single largest risk for a development-stage mining company. The company has methodically de-risked the Cariboo project over the past year, starting with receiving key permits in late 2024, publishing a robust Feasibility Study in April 2025, and culminating in this series of successful financings. The market now has tangible proof of the funds on the balance sheet.

A critical look at the financials is necessary. The headline net loss of C$150.3 million is alarming at first glance but is primarily driven by a C$111.3 million non-cash accounting charge related to the warrant liability. As the company's stock price increases, the value of outstanding warrants, which are treated as a liability on the balance sheet, also increases, resulting in a non-cash loss. This is an accounting consequence of a rising share price, not an indicator of poor operational performance.

The operational burn rate remains high, with an operating loss of C$42.4 million, but this is expected for a company aggressively advancing a major project through pre-construction.

The financings, particularly the US$203.1 million placement at US$2.05, have resulted in significant shareholder dilution. The number of issued shares has risen to over 239 million. While dilutive, securing these funds at that time was a necessary step to advance the project to construction, and the subsequent C$82.5 million financing was completed at much higher share prices (C$4.78 to C$6.93), indicating strengthening market confidence.

In summary, this news confirms the company has successfully transitioned from a high-risk explorer/developer to a fully funded builder. The risk profile has fundamentally shifted from financing risk to execution risk.

Osisko Development Corp. is a Canadian-based gold development company focused on becoming an intermediate gold producer.

Its flagship asset is the 100%-owned Cariboo Gold Project in central British Columbia. Cariboo is a large-scale, fully permitted underground gold project. The April 2025 Feasibility Study outlined a 10-year mine life with average annual production of approximately 190,000 ounces of gold, an initial capital cost of C$881 million, and an after-tax NPV (5%) of C$943 million using a US$2,400/oz gold price. The project is subject to a 5% Net Smelter Return (NSR) royalty held by Osisko Gold Royalties.

The company also holds the Tintic Project in Utah, which has some minor production from heap leaching, and the San Antonio Gold Project in Mexico, which is on care and maintenance and undergoing a strategic review.