Osisko Gold Group Inc 6-K, filed Mar 27, 2023

Osisko Gold Group Inc. (OGG)

6-K 2023-03-27 For: 2022-12-31

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Added on April 05, 2026

About this 6-K

Osisko Gold Group Inc filed this 6-K on March 27, 2023.

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Exhibit

99.1	Audited Consolidated Financial Statements for the years ended December 31, 2022 and 2021

99.2	Management's Discussion and Analysis for the three and twelve months ended December 31, 2022

	Osisko Development Corp.
	(Registrant)


Date: March 24, 2023	/s/ Alexander Dann
	Alexander Dann
	Chief Financial Officer and VP Finance

	Notes	December 31, 2022		December 31, 2021
		$		$
Assets
Current assets
Cash	7		105,944		33,407
Amounts receivable	8		11,046		7,951
Inventories	9		17,641		18,596
Other current assets			6,621		1,471
			141,252		61,425
Non-current assets
Investments in associates	10		8,833		12,964
Other investments	10		33,819		49,516
Mining interests	6,11		580,479		475,621
Property, plant and equipment	6,12		111,696		83,712
Exploration and evaluation	6,13		55,126		3,635
Other assets	14		36,994		16,251
			968,199		703,124
Liabilities
Current liabilities
Accounts payable and accrued liabilities	15		31,106		25,117
Deferred premium on flow-through shares	19		—		914
Lease liabilities	17		1,208		8,104
Contract liability	18		941		3,822
Current Portion of long-term debt	16,33		4,663		1,610
Environmental rehabilitation provision	20		9,738		2,287
Deferred Consideration and contingent payments	6		3,386		—
			51,042		41,854
Non-current liabilities
Long term debt	16,33		12,256		2,154
Lease liabilities	17		962		1,762
Contract liability	18		54,252		20,998
Environmental rehabilitation provision	20		66,032		50,949
Warrant liability	21		16,395		—
Deferred Consideration and contingent payments	6		13,252		—
Deferred income taxes	6,23		23,574		1,205
			237,765		118,922
Equity
Share capital	21		1,032,786		714,373
Warrants	21		1,573		—
Contributed surplus			12,857		6,436
Accumulated other comprehensive income			7,166		6,764
Deficit			(323,948)		(143,371)
			730,434		584,202
			968,199		703,124

	Notes	2022		2021
		$		$
Revenues			64,046		7,661
Operating expenses
Cost of sales	24		(56,643)		(7,661)
Other operating cost	24		(64,355)		(12,919)
General and administrative	25		(36,837)		(21,655)
Exploration and evaluation, net of tax credits			(515)		(1,197)
Impairment of assets	11		(140,000)		(121,594)
Operating loss			(234,304)		(157,365)
Accretion expense			(5,761)		(749)
Share of loss of associates			(641)		(1,704)
Gain on change in fair value of warrant liability	21		25,008		—
Other income, net	26		24,944		13,545
Loss before income taxes			(190,754)		(146,273)
Income tax recovery (expense)	23		(1,706)		12,971
Net loss			(192,460)		(133,302)
Basic and diluted loss per share	27		(3.02)		(3.03)
Weighted average number of shares outstanding – basic and diluted			63,797,504		44,044,538

	2022		2021
	$		$
Net loss		(192,460)		(133,302)
Other comprehensive income (loss), net of tax
Items that will not be reclassified to the consolidated statements of loss
Changes in fair value of financial assets at fair value through comprehensive income		(1,849)		(15,849)
Income tax effect		(38)		1,656
Share of other comprehensive loss of associates		(294)		—
Items that may be reclassified to the consolidated statements of loss
Currency translation adjustments		14,058		(1,537)
Other comprehensive income (loss), net of tax		11,877		(15,730)
Comprehensive loss		(180,583)		(149,032)

	Notes	Number of common shares Outstanding(i)		Share capital		Warrants		Contributed surplus		Accumulated other comprehensive income (loss)		(Deficit)		Total
				($)		($)		($)		($)		($)		($)
Balance – January 1, 2022	21		44,400,854		714,373		—		6,436		6,764		(143,371)		584,202
Net loss			—		—		—		—		—		(192,460)		(192,460)
Other comprehensive loss, net			—		—		—		—		11,877		—		11,877
Comprehensive loss			—		—		—		—		11,877		(192,460)		(180,583)
Transfer of realized loss on financial assets at fair value through other comprehensive income, net of taxes			—		—		—		—		(11,475)		11,475		—
Private placements – Brokered	21		7,752,917		101,873		1,628		—		—		—		103,501
Private placements – Non-Brokered	21		11,363,933		112,150		—		—		—		—		112,150
Share-issue costs			—		(6,243)		(55)		—		—		—		(6,298)
Share options – Share-based compensation			—		—		—		3,426		—		—		3,426
Equity-settled compensation plan			—		—		—		2,995		—		408		3,403
Shares issued – employee share purchase plan			35,045		368		—		—		—		—		368
Shares issued on Acquisition of Tintic	6		12,049,449		109,657		—		—		—		—		109,657
Share issued from RSU/DSU Redemption			27,651		608		—		—		—		—		608
Balance – December 31, 2022			75,629,849		1,032,786		1,573		12,857		7,166		(323,948)		730,434

	Notes	Number of common shares Outstanding		Share capital			Contributed surplus			Accumulated other comprehensive income (loss)			(Deficit)			Total
					$			$			$			$			$
Balance – January 1, 2021			39,649,958			687,072			69			15,018			(2,593)			699,566
Net loss			—			—			—			—			(133,302)			(133,302)
Other comprehensive loss, net			—			—			—			(15,730)			—			(15,730)
Comprehensive loss			—			—			—			(15,730)			(133,302)			(149,032)
Transfer of realized loss on financial assets at fair value through other comprehensive income, net of taxes			—			—			—			7,476			(7,476)			—
Private placements – Non-brokered	21		3,620,732			6,156			—			—			—			6,156
Private placements – Flow-through	21		1,130,081			25,257			—			—			—			25,257
Issue costs on financings			—			(2,580)			—			—			—			(2,580)
De-recognition of tax benefit on issue costs			—			(1,535)			—			—			—			(1,535)
Share options – Share-based compensation			—			—			2,884			—			—			2,884
Exercise of warrants			83			3			—			—			—			3
Restricted share units (including from Parent Company) Share-based compensation			—			—			2,053			—			—			2,053
Deferred share units to be settled in common shares – Share-based compensation			—			—			1,260			—			—			1,260
Income tax impact			—			—			170			—			—			170
Balance – December 31, 2021			44,400,854			714,373			6,436			6,764			(143,371)			584,202

Entity	Jurisdiction	% ownership
Barkerville Gold Mines Ltd. (“Barkerville”)	British Columbia	100%
Sapuchi Minera, S. de R.L. de C.V. (“Sapuchi”)	Mexico	100%
Tintic Consolidated Metals LLC (“Tintic”)	USA	100%

Category			Financial instrument
Financial assets at amortized cost			Bank balances Short-term debt securities Reclamation deposits Trade receivables Interest income receivable Amounts receivable from associates and other receivables
Financial assets at fair value through profit or loss			Investments and warrants or other investments
Financial assets at fair value through other comprehensive income or loss			Investments in shares and equity instruments, other than in warrants
Financial liabilities at amortized cost			Accounts payable and accrued liabilities Borrowings under loan facilities
Financial liabilities at fair value through profit or loss			Warrants liability

	Leasehold improvements			Lease term
	Furniture and office equipment			2 – 7 years
	Exploration equipment and facilities			2 – 20 years
	Mining plant and equipment (development)			3 – 20 years
	Right-of-use assets			Lesser of useful life and term lease

Consideration paid	$
Issuance of 12,049,449 common shares of Osisko Development		109,656
Cash		63,881
Convertible instruments (i)		10,827
Fair value of deferred consideration of US$12.5 million		13,414
Fair value of other contingent payments, rights and obligations		1,695
		199,473

Net assets acquired	$
Cash		871
Other current assets		1,834
Mining assets		169,175
Plant and equipment		13,054
Exploration and evaluation		38,508
Other non-current assets		1,735
Current liabilities		(1,322)
Non-current liabilities		(4,925)
Deferred income tax liability		(19,457)
		199,473

	2022		2021
	$		$
Cash held in Canadian dollars		32,444		9,962
Cash held in U.S. dollars		54,242		15,810
Cash held in U.S. dollars (Canadian equivalent)		73,465		20,043
Cash held in Mexican Pesos		565		54,799
Cash held in Mexican Pesos (Canadian equivalent)		35		3,402
Total cash		105,944		33,407

	2022		2021
	$		$
Trade receivables		1,777		499
Exploration tax credits		8,360		6,648
Sales taxes		889		803
Other		20		1
		11,046		7,951

	2022		2021
	$		$
Ore in stockpiles		5,943		4,194
Tailings		2,616		—
Gold-in-circuit inventory		4,451		8,638
Refined precious metals		37		1,113
Supplies and other		4,594		4,651
Total inventories		17,641		18,596

	Notes	2022		2021
		$		$
Operating activities
Net loss			(192,460)		(133,302)
Adjustments for:
Share-based compensation			7,437		4,070
Depreciation	24, 25		11,570		2,511
Accretion			5,761		749
Gain on disposal of investments	26		(11,854)		(54)
Share of loss of associates	10		641		1,704
Net gain on acquisition of investments			—		(222)
Change in fair value of financial assets and liabilities at fair value through profit and loss	10		480		701
Gain on change in fair value of warrant liability			(25,008)		—
Unrealized gain on dilution			—		(1,847)
Unrealized Foreign exchange loss			—		489
Deferred income tax expense (recovery)			1,706		(12,971)
Impairment of assets	11		140,000		121,594
Premium on flow-through shares	19		(914)		(6,971)
Cumulative catch-up adjustment on contract liability	18		(4,362)		—
Gain on re-evaluation of Sapuchi provisions			—		(5,658)
Proceeds from Contract liability	18		26,112		5,653
Other			646		1,726
Net cash flows used in operating activities before changes in non-cash working capital items			(40,245)		(21,828)
Changes in non-cash working capital items	29		(10,013)		(19,586)
Net cash flows used in operating activities			(50,258)		(41,414)
Investing activities
Mining interests			(47,955)		(138,631)
Property, plant and equipment	12		(29,409)		(47,535)
Exploration and evaluation expenses			(8,917)		(2,118)
Proceeds on disposals of investments	10		22,585		43,054
Acquisition of investments in associates			—		(2,200)
Acquisition of other investments			(212)		(9,094)
Acquisition of Tintic, net of cash acquired	6		(67,431)		—
Reclamation deposit			(13,371)		—
Other			(1,207)		(458)
Net cash flows used in investing activities			(145,917)		(156,982)

	Notes	2022		2021
		$		$
Financing activities
Private placements	21		255,492		39,760
Issuance of common shares			368		—
Share issue expense	21		(7,299)		(3,044)
Exercise of warrants			—		3
Capital payments on lease liabilities	17		(6,945)		(5,745)
Long-term debt	16		17,772		4,015
Repayment of long-term debt	16		(4,860)		(251)
Net cash flows provided from (used in) financing activities			254,528		34,738
Increase (decrease) in cash before impact of exchange rate			58,353		(163,658)
Effects of exchange rate changes on cash			14,184		(362)
Increase (decrease) in cash			72,537		(164,020)
Cash – Beginning of year			33,407		197,427
Cash – end of year			105,944		33,407

	2022		2021
	$		$
Fair value through profit or loss (warrants & convertible loan)
Balance – Beginning of year		6,952		1,892
Acquisitions		4,438		6,915
Exercises		(117)		(1,122)
Acquisition of Tintic (Note 6)		(10,827)		—
Change in fair value		(480)		(733)
Foreign exchange		52		—
Balance – End of year		18		6,952
Fair value through other comprehensive income (shares)
Balance – Beginning of year		42,564		98,616
Acquisitions		329		2,850
Disposals		(22,585)		(43,055)
Change in fair value		(1,849)		(15,847)
Transfer from associates		15,342		—
Balance – End of year		33,801		42,564
Total		33,819		49,516

	2022		2021
	$		$
Cost – Beginning of year		475,621		385,802
Acquisition of Tintic		169,175		—
Additions		49,297		136,492
Mining tax credit		(6,404)		(1,585)
Asset retirement obligation		9,248		19,522
Depreciation capitalized		1,141		4,136
Share-based compensation capitalized		530		2,127
Transfers		—		(11,221)
Impairment		(140,000)		(58,417)
Other adjustments		5,579		585
Currency translation adjustments		19,482		(1,820)
Cost – End of year		583,669		475,621
Accumulated depreciation – Beginning of year		—		—
Depreciation		2,964		—
Currency translation adjustments		226		—
Accumulated depreciation – End of year		3,190		—
Cost		583,669		475,621
Accumulated depreciation		(3,190)		—
Net book value		580,479		475,621

	Land and Buildings		Machinery and Equipment		Construction- in-progress		2022		2021
	$		$		$		$		$
Cost – Beginning of year		18,859		50,133		24,249		93,241		25,713
Acquisition of Tintic		7,594		5,460		—		13,054		—
Additions		2,265		22,675		4,469		29,409		58,153
Disposals		—		(1,351)		—		(1,351)		(166)
Write-off		(210)		(5,211)		(34)		(5,455)		(4,293)
Other adjustments		(896)		—		—		(896)		2,506
Transfers		—		5,945		(5,945)		—		11,221
Currency translation adjustments		368		2,557		982		3,907		107
Cost – End of year		27,980		80,208		23,721		131,909		93,241
Accumulated depreciation – Beginning of year		2,385		7,144		—		9,529		4,515
Depreciation		2,108		10,761		—		12,869		6,754
Disposal		—		(192)		—		(192)		—
Other adjustments		—		—		—		-		2,496
Write-off		—		(2,687)		—		(2,687)		(4,236)
Currency translation adjustments		(25)		719		—		694		—
Accumulated depreciation – End of year		4,468		15,745		—		20,213		9,529
Cost		27,980		80,208		23,721		131,909		93,241
Accumulated depreciation		(4,468)		(15,745)		—		(20,213)		(9,529)
Net book value		23,512		64,463		23,721		111,696		83,712

	2022		2021
	$		$
Net book value – Beginning of year		3,635		41,870
Acquisition of Tintic		38,508		—
Additions		10,786		3,783
Depreciation capitalized		80		—
Impairment		—		(42,018)
Other adjustments		(460)		—
Currency translation adjustments		2,577		—
Net book value – End of year		55,126		3,635
Cost		155,333		103,842
Accumulated impairment		(100,207)		(100,207)
Net book value – End of year		55,126		3,635

	2022		2021
	$		$
Taxes recoverable(1)		17,467		11,371
Reclamation Deposits		16,761		1,103
Other		2,766		3,777
		36,994		16,251

	2022		2021
	$		$
Trade payables		18,057		11,756
Other payables		5,005		5,335
Income taxes payable		716		65
Accrued liabilities		7,328		7,961
		31,106		25,117

	Less than 1 year		1 – 2 years		3 – 4 years
	$		$		$
Total payments		4,662		11,734		523

	May 27, 2022	December 31, 2022
Dividend per share	—	—
Expected volatility	69%	69%
Risk-free interest rate	4%	2.7%
Expected life	4.4 years	5 years
Share price USD	$4.30	$7.15

	December 31, 2022				December 31, 2021
	Number of Warrants(i)		Weighted average exercise price		Number of Warrants(i)		Weighted average exercise price
			$				$
Balance – Beginning of period		4,929,791		30.00		3,119,508		30.00
Issued – Brokered private placement		7,752,917		22.80		—		—
Issued – Non-brokered private placement(ii)		11,363,932		13.53		1,810,283		30.00
Warrants Expired		(4,929,791)		30.00		—		—
Balance – End of period		19,116,849		17.29		4,929,791		30.00

	December 31, 2022				December 31, 2021
	Number of options(i)		Weighted average exercise price		Number of options(i)		Weighted average exercise price
			$				$
Balance – Beginning of period		697,841		21.21		399,697		22.86
Granted		1,245,400		6.43		335,176		19.40
Forfeited		(130,791)		14.74		(37,032)		22.66
Balance – End of period		1,812,450		11.52		697,841		21.21
Options exercisable – End of period		205,229		21.32		—		—

	Options outstanding
Grant date	Number(i)		Exercise price		Weighted average remaining contractual life (years)
			$
December 22, 2020		336,131		22.86		2.98
February 5, 2021		10,533		24.30		3.10
June 23, 2021		167,585		21.30		3.48
August 16, 2021		48,276		16.89		3.62
November 12, 2021		53,125		16.20		3.87
June 30, 2022		871,300		6.49		4.50
November 18, 2022		325,500		6.28		4.88
		1,812,450		11.52		4.14

	December 31, 2022				December 31, 2021
	DSU(i)		RSU		DSU(i)		RSU
Balance – Beginning of period		79,781		345,377		56,873		—
Granted		137,528		794,500		22,908		199,649
Replacement RSU granted(ii)		—		—		—		152,816
Settled		(10,883)		(49,118)		—		—
Forfeited		—		(36,565)		—		(7,088)
Balance – End of period(iii)		206,426		1,054,194		79,781		345,377
Balance – Vested		68,898		—		—		—

	2022		2021
	$		$
Current income tax Expense for the year		—		—
Current income tax expense		—		—
Deferred income tax
Origination and reversal of temporary differences		(63,178)		(33,018)
Change in unrecognized deductible temporary differences		63,051		20,417
Other		1,833		(370)
Deferred income tax (expense) recovery		(1,706)		(12,971)
Income tax (expense) recovery		(1,706)		(12,971)

	2022		2021
	$		$
Deferred tax assets:
Non-capital losses		929		—
Deferred and restricted share units		29		—
Other		8,209
Deferred tax assets		9,167		—
Deferred tax liabilities:
Property, Plant & Equipment		(3,873)		—
Stream Interest		(28,823)
Investments		—		(1,205)
Other		(45)
Deferred tax liability		(32,741)		(1,205)
Deferred tax liability, net		(23,574)		(1,205)

	Dec. 31, 2021		Statement of income (loss)		Other comprehensive income		Translation adjustment		Business combination		Dec. 31, 2022
	$		$		$		$		$		$
Deferred tax assets:
Non-capital losses		—		937		—		(8)		—		929
Deferred and restricted share units		—		56		—		(2)		(25)		29
Other assets				5,053		—		116		3,040		8,209
								—		—		—
Deferred tax liabilities:								—		—		—
Investments		(1,205)		1,205		—		—		—		—
Stream interests		—		(6,429)		—		(1,040)		(21,354)		(28,823)
Property, Plant, & Equipment		—		(2,528)		—		(44)		(1,301)		(3,873)
Other Liabilities		—		—		—		(2)		(43)		(45)
		(1,205)		(1,706)		—		(980)		(19,684)		(23,574)

	Dec. 31, 2020		Statement Of income (loss)		Equity		Other comprehensive income		Dec. 31, 2021
	$		$		$		$		$
Deferred tax assets:
Non-capital losses		510		(510)		—		—		—
Share and debt issue expenses		1,505		28		(1,533)		—		—
Deferred tax liabilities:
Exploration and evaluation assets		(8,188)		8,188		—		—		—
Investments		(8,126)		5,265		—		1,656		(1,205)
		(14,299)		12,971		(1,533)		1,656		(1,205)

	2022		2021
	$		$
Non-capital losses carried forward		116,656		64,650
Mineral stream interests – Mexico		8,789		7,446
Unrealized losses on investments in associates		3,124		1,367
Other		156		1,694
		128,725		75,157

	2022		2021
	$		$
Salaries and benefits		17,624		3,392
Share-based compensation		294		—
Royalties		1,475		386
Contract Services		40,890		6,761
Raw materials and consumables		17,394		4,233
Operational overhead and write-downs		31,919		3,399
Depreciation		11,403		2,409
		120,999		20,580

	2022		2021
	($)		($)
Interest income, net		1,776		773
Foreign exchange gain (loss)		9,148		(425)
Premium on flow-through shares		914		6,971
Gain on disposal of assets		—		153
Gain on disposal of investments (Note 10)		11,854		—
Revision of estimated provisions		—		4,403
Other		1,252		1,670
		24,944		13,545

	2022		2021
	$		$
Net loss attributable to shareholders of the Company		(192,460)		(133,302)
Basic and diluted weighted average number of common shares outstanding		63,797,504		44,044,538
Net loss per share, basic and diluted		(3.02)		(3.03)

	2022		2021
	$		$
Salaries and short-term employee benefits		5,440		4,726
Share-based compensation		5,757		4,073
Cost recoveries from associates		(330)		(579)
		10,867		8,220

	2022		December 31 2021
	$		$
Cash		54,242		15,810
Accounts receivable		921		1
Accounts payable		(7,425)		(2,920)
net exposure, in US dollars		47,738		12,891
Equivalent in Canadian dollars		64,656		16,342