Permitted, Backed, and Building: Osisko Development’s (TSXV:ODV) Fast-Track to 200,000 oz Gold

Interview with Sean Roosen, Founder & CEO of Osisko Development Corp.

Our previous interview: https://www.cruxinvestor.com/posts/osisko-development-tsxvodv-permitted-cariboo-project-towards-becoming-500000-oz-gold-camp-6379

Recording date: 4th June 2025

Osisko Development Corporation presents a compelling investment opportunity as one of only two fully permitted gold mines in Canada, positioning the company to capitalize on gold's strategic renaissance while benefiting from exceptional project economics and proven management execution.

Project Fundamentals
The Cariboo Gold project in British Columbia represents a rare permitted asset in an increasingly constrained development environment. With construction permits secured in under 5 years compared to the industry average of 14 years, Osisko Development has overcome the primary hurdle facing gold developers. The project targets initial production of 200,000 ounces annually from a 5,000 ton per day operation, requiring $650 million capex versus competitors demanding $6.5 billion.

The deposit contains 2 million ounces in reserves at 3.8 grams per ton, significantly exceeding comparable Canadian operations like Alamos' Young Davidson mine at 2.2 g/t and Agnico's Goldex at 1.52 grams. Cariboo's additional resources include 1.6 million ounces measured and indicated plus 1.8 million ounces inferred, spanning a 4.4 kilometer strike within a 50 kilometer mineralized trend under company control.

Superior Economics
Production economics appear robust with costs targeting $1,157 per ounce, generating substantial margins at current gold prices exceeding $2,400. At these levels, the operation projects annual free cash flow of $457 million, providing significant financial flexibility.

Construction activities are underway with 1,200 meters of underground development completed and critical equipment secured. The company has invested $700 million to date with over 700,000 meters of drilling, demonstrating development thoroughness that reduces execution risk.

Proven Management Track Record
CEO Sean Roosen brings exceptional credibility through his track record building Canadian Malartic, which became Canada's largest gold mine. After selling that asset for $4.1 billion in 2014, now the  mine represents $22 billion of Agnico Eagle's valuation. This value creation extends across the Osisko platform, including Osisko Mining's $2.16 billion sale to Gold Fields.

Scaling and M&A Potential
The project offers significant expansion potential through phased development, potentially reaching 500,000 ounces annually. Management envisions scaling from 5,000 to 15,000 tons per day processing rates, supported by the deposit's exceptional size. As Roosen noted, "You could put all three of those mines [Young Davidson, Goldex, and Landronne] in the footprint of this deposit and still have room for one more Young Davidson."

The company operates with a $375 million market capitalization and benefits from strategic shareholder support, with investors holding 24% and 9.9% stakes respectively. Industry consolidation trends favor quality assets like Cariboo Gold, with management noting that "If I look at all the top 10 M&A ideas that come out, ODV is always on the list."

Near-Term Catalysts
Project financing announcements expected within two months should significantly de-risk the investment while potentially providing share price catalysts. The G Mining precedent, which achieved a $4.3 billion valuation after successful project development, demonstrates potential upside for executed development stories.

Osisko Development represents leveraged exposure to gold's strategic importance through a rare permitted asset with superior economics, proven management, and multiple value creation pathways.

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