Executive Summary / Key Takeaways

• Osisko Development Corp. (ODV) is poised to transition from a development-stage company to a significant gold producer, with its flagship Cariboo Gold Project in British Columbia, Canada, forming the core of its investment thesis.
• The optimized Feasibility Study for Cariboo projects robust economics, including an after-tax NPV5% of C$943 million and an unlevered after-tax IRR of 22.1% at a base case gold price of US$2,400/oz, with first gold anticipated in the second half of 2027.
• Recent strategic financings, including a US$450 million project loan facility and a US$203 million private placement, significantly de-risk the Cariboo project and provide crucial capital for its development.
• The company's adoption of advanced X-ray transmission (XRT) ore sorting technology and AI-assisted analysis, alongside an improved flowsheet with a gravity circuit, offers a tangible competitive advantage by enhancing waste rejection, gold recovery, and overall operational efficiency.
• While currently unprofitable and cash flow negative, typical for a development-stage miner, ODV's substantial resource base, technological innovation, and clear path to production present a compelling long-term value proposition for discerning investors.

The Ascent of Osisko Development: Forging a Future in Gold

Osisko Development Corp. (ODV) operates as a focused precious metals explorer and developer, primarily targeting gold, silver, copper, lead, and zinc deposits across Canada, Mexico, and the United States. The company's overarching strategy centers on advancing its flagship, 100%-owned Cariboo Gold Project in central British Columbia, Canada, a vast land package encompassing approximately 192,000 hectares. The gold mining industry is inherently capital-intensive and susceptible to commodity price fluctuations, yet it offers substantial rewards for successful project development and efficient operations. ODV's strategic responses to these dynamics include a strong emphasis on de-risking its core asset through advanced studies and securing robust financing.

The company's journey has been marked by strategic acquisitions and a clear focus on resource development. Its operational presence dates back to at least 2020, with a notable expansion phase beginning in 2021. This growth included the acquisition of the Tintic Project in Utah, U.S.A., in May 2022, a strategic move that continues to be managed with deferred payments. However, the Cariboo Gold Project has emerged as the unequivocal centerpiece of ODV's strategic evolution. The company has diligently progressed Cariboo through an optimized Feasibility Study (2025 FS), filed in June 2025, which underpins its ambitious production targets and operational blueprint.

Technological Edge: Unlocking Value at Cariboo

A critical differentiator for Osisko Development lies in its commitment to technological innovation, particularly evident in the Cariboo Gold Project. The company has implemented and tested advanced X-ray transmission (XRT) ore sorting technology. This core technology allows for the efficient separation of waste material from gold-bearing ore.

The tangible benefits of this technology are significant and quantifiable. Recent bulk tonnage ore sorter testwork on an approximately 80-tonne sample from the Cariboo underground demonstrated 42-55% waste rejection with 84-89% gold recovery for mid-size and oversize material, specifically the 10–30 mm and 30–70 mm size fractions. Furthermore, leveraging recent advancements in artificial intelligence (AI), the company successfully tested the previously unassessed 6–10 mm size fraction, achieving an impressive 59% waste rejection and 92% gold recovery. This indicates a substantial opportunity for future optimization and enhanced efficiency. The achieved upgrade ratio of 2.0-2.1 is consistent with the 2025 Feasibility Study's assumption of 1.95, underscoring the technology's effectiveness. Beyond ore sorting, the optimized Feasibility Study for Cariboo also incorporates an improved flowsheet design with a gravity circuit, aimed at producing a higher-grade concentrate product.

For investors, these technological advancements are more than just technical details; they form a crucial part of ODV's competitive moat. By significantly reducing the amount of waste material processed, these technologies are expected to lower operational costs, improve overall gold recovery, and enhance the project's economic viability. This strategic focus on efficiency and higher-grade output directly contributes to a more robust financial performance, strengthens ODV's market positioning as a forward-thinking developer, and is integral to its long-term growth strategy.

The Cariboo Gold Project: A Foundation for Future Production

The Cariboo Gold Project is the cornerstone of Osisko Development's future, with its optimized 2025 Feasibility Study outlining a compelling economic case. At a base case gold price assumption of US$2,400/oz, the project boasts an after-tax NPV5% of C$943 million and an unlevered after-tax IRR of 22.1%, with a rapid payback period of 2.8 years. Should gold prices align with the spot price of US$3,300/oz, the economics significantly improve, with the NPV5% rising to C$2,066 million, the IRR to 38.0%, and the payback period shrinking to 1.6 years.

Operationally, Cariboo is projected to deliver average annual gold production of approximately 190,000 ounces over a 10-year mine life, with a higher output of 202,000 ounces in the first five years. The company anticipates achieving first gold production in the second half of 2027, contingent on construction commencing in Q3 2025 and successful progress on ongoing project financing discussions. The project's cost profile is also highly competitive, with an average Total Cash Cost (TCC) of US$947/oz and an All-In Sustaining Cost (AISC) of US$1,157/oz over the Life of Mine (LOM), positioning Cariboo within the lower half of the global cost curve for gold mines. The average base case LOM annual Free Cash Flow (FCF) is estimated at C$158 million, with a robust C$296 million per year in the first five years. The development plan involves an improved single-phase build over 24 months, leading to a direct ramp-up to 4,900 tonnes per day (tpd), with a total initial capital cost of C$881 million and sustaining capital of C$525 million over the LOM. Beyond these projections, significant opportunities exist to further enhance project economics and extend mine life through the conversion of Mineral Resources adjacent to Mineral Reserves via infill drilling.

Financial Performance and Capital Fortification

As a company primarily focused on development, Osisko Development's financial performance reflects its stage of growth. For the trailing twelve months (TTM), the company reported revenue of $7.02 million and a gross profit of $2.85 million. However, typical for a pre-production mining entity, ODV recorded a TTM net income of -$134.41 million, with operating and net profit margins deeply negative at -1432.59% and -1914.66%, respectively. Similarly, TTM operating cash flow stood at -$52.30 million and free cash flow at -$88.93 million, underscoring the significant capital deployment required for project advancement.

Historically, annual revenues have fluctuated, reaching $64.05 million in 2022 before declining to $4.56 million in 2024, reflecting the intermittent nature of early-stage mining activities and asset sales. Net income has consistently been negative, ranging from -$86.34 million in 2024 to -$192.46 million in 2022. Capital expenditures have been substantial, totaling -$36.63 million in 2024 and -$186.17 million in 2021, demonstrating the company's investment in its projects.

Recognizing the capital demands, Osisko Development has been highly active in fortifying its financial position. In August 2025, the company successfully closed a US$203 million private placement financing, which included both brokered and non-brokered components. This followed the securing of a US$450 million senior secured project loan credit facility from Appian Capital Advisory Limited in July 2025, specifically earmarked for the Cariboo Gold Project's development and construction. An initial US$100 million draw from this facility is available to accelerate pre-construction activities and de-risk the project, with an additional US$350 million available upon achieving customary project milestones. This strategic financing also includes plans to repay an outstanding US$25 million term loan with National Bank, enhancing the company's financial flexibility.

As of June 30, 2025, the company held approximately $46.3 million in cash and cash equivalents, a figure significantly bolstered by the subsequent financings. While the TTM current ratio of 0.39 and quick ratio of 0.34 indicate tight current liquidity, the recent capital injections are expected to materially improve this position.

Competitive Landscape: A Developer's Niche

Osisko Development operates within a competitive gold mining landscape dominated by larger, established producers such as Agnico Eagle Mines (AEM), Barrick Gold (GOLD), Newmont Corporation (NEM), and Kinross Gold (KGC). These industry giants benefit from extensive operational scale, diversified asset portfolios, and robust cash flow generation. ODV, in contrast, is positioned as a smaller, development-focused player, primarily concentrated on bringing its high-potential Cariboo Gold Project into production.

ODV's competitive strengths lie in its proprietary project portfolio, particularly the Cariboo Gold Project, which benefits from exclusive mineral rights and regulatory licenses in British Columbia. The company's focused expertise in high-potential regions and its agility in project development allow it to pursue opportunities that might be overlooked by larger, more bureaucratic entities. Crucially, ODV's adoption of advanced XRT ore sorting and AI-assisted analysis provides a technological edge, promising superior operational efficiency and potentially lower costs compared to traditional mining methods. This technological differentiation helps ODV carve out a niche by maximizing value from its resource base.

However, ODV faces inherent competitive disadvantages due to its smaller scale. This often translates to higher operational costs and less bargaining power with suppliers compared to its larger peers. Financially, ODV's development-stage status means it currently lags competitors in profitability and cash flow generation. For instance, while AEM, GOLD, NEM, and KGC exhibit positive P/E ratios (15.82, 27.93, 14.84, and 21.25 respectively), reflecting their profitability, ODV's P/E ratio is negative (-4.48) due to its current unprofitability. Its price-to-book (P/B) ratio of 0.90 is also lower than its peers (AEM 3.85, GOLD 2.47, NEM 2.90, KGC 4.23), which could suggest market skepticism about the near-term realization of its asset value, or alternatively, an attractive valuation for long-term investors. The high capital requirements and stringent regulatory approvals in the gold mining sector act as significant barriers to entry, which, while challenging for ODV, also protect its position by limiting new competitors. However, these barriers are often more easily navigated by larger, well-capitalized companies.

Outlook and Key Catalysts

The outlook for Osisko Development is intrinsically linked to the successful execution of the Cariboo Gold Project. The company's guidance, based on the 2025 Feasibility Study, projects significant gold production and strong financial returns once operational. The anticipated first gold in H2 2027 serves as a major catalyst. Continued infill drilling campaigns, such as those recently reported in the Lowhee Zone, are expected to convert additional Mineral Resources into Mineral Reserves, potentially extending the mine life and further enhancing project economics. The successful integration and optimization of its advanced ore sorting and processing technologies will be crucial in achieving the projected low-cost profile.

Investment Risks

Investing in Osisko Development carries several inherent risks typical of a development-stage mining company. The primary risk is the successful execution of the Cariboo Gold Project, which involves significant construction, operational, and technical challenges. Commodity price volatility, particularly in gold, poses a substantial risk, as the project's economics are highly sensitive to gold price assumptions. The substantial initial capital cost of C$881 million and ongoing sustaining capital of C$525 million over the LOM highlight the company's capital intensity and its reliance on external financing. While recent financings have bolstered liquidity, the availability of subsequent draws from the Appian facility is contingent on meeting specific project milestones. Operational risks, including achieving projected Total Cash Costs and All-In Sustaining Costs, as well as production targets, could impact profitability. Furthermore, regulatory and environmental risks in British Columbia, Canada, could lead to delays or increased costs. Finally, the company's reliance on equity raises for funding, as evidenced by the recent private placement, can lead to shareholder dilution.

Conclusion

Osisko Development Corp. stands at a pivotal juncture, transitioning from an exploration and development entity to a prospective gold producer. The Cariboo Gold Project, underpinned by robust economics from its optimized Feasibility Study and enhanced by innovative XRT ore sorting and AI-assisted processing technologies, forms the bedrock of its investment thesis. While the company currently exhibits financial metrics typical of a development-stage miner, including negative profitability and cash flow, its substantial recent financings have significantly de-risked the path to production. ODV's focused strategy and technological advantages offer a compelling narrative in a competitive industry dominated by larger players. For investors with a long-term horizon, the successful realization of the Cariboo Gold Project's potential, driven by its strategic capital deployment and technological leadership, represents a significant opportunity for value creation as the company moves towards its anticipated first gold pour in 2027.