About Osisko Mining Corporation
Osisko Mining Corporation operates the Canadian Malartic Gold Mine in Malartic, Quebec and is carrying out aggressive exploration and project development elsewhere in Canada and Latin America.
Mr. Luc Lessard, Eng., Senior Vice-President and Chief Operating Officer of Osisko, is the Qualified Person who has reviewed this news release and is responsible for the technical information reported herein, including verification of the data disclosed.
Cautionary Notes Concerning Estimates of Mineral Resources
This news release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that that further work will lead to mineral reserves that can be mined economically.
For further information in relation to the Hammond Reef project, please refer to the "Technical Report on the Hammond Reef Gold Property Atikokan area, Ontario" dated December 20, 2011. For further information in relation to the Canadian Malartic project, please refer to the "Feasibility Study - Canadian Malartic Project (Malartic, Quebec)", dated December 2008. Both of these reports are available under the Osisko profile at www.sedar.com.
For further information in relation to the Upper Beaver project, please refer to the "Technical Report on the Upper-Beaver Gold-Copper Project, Ontario, Canada" dated November 9, 2012, which is available under the Queenston profile at www.sedar.com.
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 Osisko 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 including, without limitation, timely completion of the ramp-up phase towards throughput design capacity of 55,000 tonnes per day, improvement of mine productivity, access to higher grade material, reduction of cost, positive outcome of any exploration work conducted around the Canadian Malartic infrastructure, at the Hammond Reef and Upper Beaver projects or at other Osisko's properties, and further development of its Hammond Reef project including timely completion of the project feasibility study.
Although Osisko 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 achieve such events qualified by the foregoing cautionary note regarding forward looking statements, 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 construction personnel, results of exploration and development activities, Osisko's limited experience with production and mining operations, uninsured risks, regulatory framework and 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 Osisko's most recent Annual Information Form and in the most recent Management Discussion and Analysis filed on SEDAR, which also provide additional general assumptions in connection with these statements. Osisko cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Osisko 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.
Osisko Mining CorporationConsolidated Statements of IncomeFor the three months and the years ended December 31, 2012 and 2011----------------------------------------------------------------------------(tabular amounts expressed in thousands of Canadian dollars, except pershare amounts) Three months ended Years ended December December 31, 31, ------------------------------------------------ 2012 2011 2012 2011 ------------------------------------------------ ($) ($) ($) ($)Revenues 191,080 128,100 665,375 263,408Mine operating costs Production costs (101,239) (74,841) (353,827) (158,886) Royalties (2,546) (1,933) (8,924) (3,284) Depreciation (19,198) (11,800) (62,969) (21,786) ------------------------------------------------Earnings from mine operations 68,097 39,526 239,655 79,452 General and administrative expenses (8,411) (6,144) (29,361) (30,707) Exploration and corporate development expenses (3,345) (2,651) (11,450) (23,585) Other expenses - - - (485) ------------------------------------------------Earnings from operations 56,341 30,731 198,844 24,675 Interest income 402 354 1,547 2,318 Finance costs (8,006) (6,910) (30,831) (17,676) Foreign exchange gain (loss) (1,237) 1,669 1,923 (1,148) Share of earnings (loss) of associates (85) 20 (713) (460) Other gains (losses) (17,064) 1,962 (20,046) 3,288 ------------------------------------------------Earnings before income and mining taxes 30,351 27,826 150,724 10,997 Income and mining tax recovery (expense) (20,713) 9,976 (72,300) 7,000 ------------------------------------------------Net earnings 9,638 37,802 78,424 17,997 ------------------------------------------------ ------------------------------------------------Net earnings per share Basic 0.02 0.10 0.20 0.05 Diluted 0.02 0.10 0.20 0.05Weighted average number of common shares outstanding (in thousands) Basic 391,538 385,427 388,577 383,372 Diluted 392,719 389,994 390,874 389,933Osisko Mining CorporationConsolidated Statements of Cash FlowsFor the three months and the years ended December 31, 2012 and 2011----------------------------------------------------------------------------(tabular amounts expressed in thousands of Canadian dollars) Three months ended Years ended December December 31, 31, ------------------------------------------------ 2012 2011 2012 2011 ------------------------------------------------ ($) ($) ($) ($)Operating activitiesNet earnings 9,638 37,802 78,424 17,997Adjustments for: Interest income (402) (354) (1,547) (2,318) Share-based compensation 2,017 2,999 9,629 10,779 Depreciation 19,355 11,973 63,603 22,277 Finance costs 8,006 6,910 30,831 17,675 Write-off of property, plant and equipment - 175 617 16,451 Gain on disposal of property, plant and equipment 520 - 303 - Unrealized foreign exchange loss (gain) 1,106 (1,738) (2,363) 1,657 Share of loss (earnings) of associates 85 (20) 713 460 Net loss (gain) on sale of available-for-sale financial assets 5,034 - 4,432 (5,041) Net loss on financial assets at fair value through profit and loss 279 1,604 1,824 10,119 Impairment on available- for-sale financial assets 10,912 - 12,434 - Deferred gain - premium on flow-through shares - (3,567) - (7,849) Provisions and other liabilities 462 825 2,341 1,220 Income and mining tax expense (recovery) 20,713 (9,976) 72,300 (7,000) Other non-cash loss (gain) - - 152 (639) ------------------------------------------------ 77,725 46,633 273,693 75,788 Change in non-cash working capital items (20,710) (6,973) (26,911) 9,912 ------------------------------------------------Net cash flows from operating activities 57,015 39,660 246,782 85,700 ------------------------------------------------Investing activities Net decrease in short-term investments - - - 17,068 Net decrease (increase) in restricted cash (4,301) (20,629) 448 (18,985) Acquisition of investments (42,329) (1,500) (53,279) (13,783) Proceeds on disposal of investments - - 1,838 12,038 Property, plant and equipment, net of government credits (39,336) (59,533) (228,840) (356,787) Proceeds on disposal of property, plant and equipment 324 - 324 - Cash received from the acquisition of assets 40,513 - 40,513 - Interest received 366 356 1,393 2,525 ------------------------------------------------Net cash flows from investing activities (44,763) (81,306) (237,603) (357,924) ------------------------------------------------Financing activities Long-term debt 14,651 - 14,651 - Long-term debt transaction costs (146) (5) (262) (640) Long-term debt repayments (1,250) (1,250) (5,000) (3,333) Finance lease payments (6,088) (4,596) (22,790) (8,419) Issuance of common shares, net of expenses 1,199 701 19,095 39,477 Interest paid (5,649) (5,293) (22,314) (12,684) ------------------------------------------------Net cash flows from financing activities 2,717 (10,443) (16,620) 14,401 ------------------------------------------------Increase (decrease) in cash and cash equivalents 14,969 (52,089) (7,441) (257,823)Cash and cash equivalents - beginning of period 78,260 152,759 100,670 358,493 ------------------------------------------------Cash and cash equivalents - end of period 93,229 100,670 93,229 100,670 ------------------------------------------------ ------------------------------------------------ Interest paid, including interest expensed and capitalized 5,649 5,293 22,314 17,456Osisko Mining CorporationConsolidated Balance SheetsAs at December 31, 2012 and 2011----------------------------------------------------------------------------(tabular amounts expressed in thousands of Canadian dollars)
