Good morning, ladies and gentlemen, and welcome to the Osisko Gold Royalties Q3 2019 results conference call. After the presentation, we will conduct a question and answer session. If you'd like to ask a question, please pick up your receiver and press star followed by 1 on your telephone keypad. Please note that this call is being recorded today, November 7th, 2019, at 10:00 A.M. Eastern time. Today on the call, we have Mr. Sean Roosen, Chair of the Board of Directors and Chief Executive Officer of Osisko Gold Royalties, Mr. Bryan Coates, President of Osisko Gold Royalties, and Elif Lévesque, Vice President Finance and Chief Financial Officer. I would now like to turn the meeting over to your host for today's call, Mr. Sean Roosen. [Foreign language]
Après la présentation, nous procéderons à une séance de questions et réponses. Si vous désirez poser une question, veuillez décrocher le combiné du téléphone et appuyez sur la touche étoile suivie du numéro 1. Veuillez prendre note que cet appel est enregistré aujourd'hui, le 7 novembre 2019, à 10 h de l'Est. Nous avons sur l'appel aujourd'hui Monsieur Sean Roosen, Président du Conseil d'Administration et Chef de la Direction de Redevances Aurifères Osisko, Monsieur Bryan Coates, Président de Redevances Aurifères Osisko et Elif Lévesque, Vice-Présidente aux Finances et Chef de la Direction Financière. J'aimerais maintenant céder la parole à votre hôte, Monsieur Sean Roosen.[/Foreign language]
Merci beaucoup et bienvenue à l'appel de conférence pour le troisième trimestre 2019. On va utiliser un PowerPoint qui se trouve sur notre site web qui est marqué troisième trimestre 2019 pour suivre la conférence. Welcome everybody, and welcome to the third quarter of 2019 conference call for updated financial results, and outlook for Osisko Gold Royalties. We will be using a PowerPoint that's on our website, I would take an opportunity to review our forward-looking statements as we get into this. We will be providing some forward-looking statements as we get further into the presentation. The highlights for the third quarter of 2019, 18,123 GEOs were earned from our partners, revenues of CAD 33.9 million for the quarter. Record cash flows from operating activities at CAD 28.3 million.
A non-cash net loss of CAD 45.9 million or CAD 0.32 per share, basically reflecting the impairment on the stream and offtake interest of CAD 60.8 million that Elif will be getting into in detail as we get further into the presentation. Adjusted earnings of CAD 17.5 million or CAD 0.12 per basic share. A recorded operating margin of over 91% for royalty and streaming interest, which is a new record in terms of margins for us. We also closed the second tranche of the share repurchase with Orion for a total of 12,385,717 shares, which were canceled. This represented about 8% of the outstanding stock of Osisko Gold Royalties at a financial value of just under CAD 175 million. We enhanced the silver stream on Mantos Blancos, renegotiated some of the conditions there that we'll get into in detail.
Eagle Gold Mine in the Yukon, which is now the Yukon's largest gold mine historically and today, it poured gold in September. We own a 5% royalty on that, and we'd like to congratulate the Victoria team for the completion of the construction and the commissioning that's ongoing as we speak. It's been a great mine build and a real tribute to John McConnell and his team there. We also announced the definitive agreement to acquire the outstanding shares of Barkerville Gold, which owns the Cariboo Gold Project in central B.C. in the Cariboo District. We'll get into that in more detail. We are currently in process to have the vote on November 15th and to hopefully close around November 20th on the acquisition of the 67.4% shares that we did not own already.
We also monetized the Brucejack gold offtake to Pretium Exploration for $41.3 million or CAD 54 million. We still have more cash coming from that transaction as the final CAD 10 million won't come in until November, that will increase our current cash balances as we move forward. On page four, the Q3 activities. Again, just a little more detail on what happened with the share buyback and Orion. For CAD 71.4 million, we had purchased 5 million shares. In total at the end of the day, it was 12,385,000 shares, as we said. Mantos Blancos stream amendment, we put a further CAD 25 million on deposit with the asset. Significant changes to the stream involve the reduction from 25% to 8% of the spot silver price for the delivery in terms of the offtake pricing.
We increased the tail from 30% to 40% of payable silver after the first 19.3 million ounces is revised. Most importantly, the termination of the stream buyback clause, there's no impediment on this stream as we go forward. The sale of the offtake agreement on Pretium was closed, and we received a CAD 41.3 million settlement. As I said, CAD 10 million left to be deposited at the end of the month. That was a good deal for us in terms of pulling that cash flow in near term to us and also to help Pretium provide easier clarity to their shareholders on their revenue stream. More importantly for today, I guess, would be on page five, would be the Barkerville acquisition. We have bid for 67.4% of the shares held outside of our current position at Barkerville.
Barkerville is the owner, 100% owner of the Cariboo project, which is over 2,000 sq km and has a resource in the inferred category of over 4.3 million ounces and continues to deliver successful drill results. A PEA study outlining a plan to build 185,000 ounce a year mine, with a 10 or 11 year mine life was submitted to the market in August 2019. We're quite proud of that accomplishment for the Barkerville assets, and we have a strong belief, obviously, that this is the beginning of a mining camp. We also have a small amount of production that's being developed as we speak, in the 20,000 ounce a year range. More to the point, we believe that this is a camp that's been neglected, much like Malartic was back when we first got involved with that asset.
We see a lot of the same hallmarks that we have a world-class camp that was patchwork owned over the years and has been consolidated back into a large land package, one of the largest in the world, with continuous mineral rights over a 67-kilometer-long trend, and historic production there of over 4 million ounces. As we get into it, we are suitably impressed with the amount of geological information that our team has been able to put together that lead us to believe that there's a significant amount of work to be done in this camp over the next set of five years, and as we develop this opportunity to go forward. In the context of the Barkerville acquisition, we created the North Spirit Discovery Group.
The mandate of North Spirit Discovery Group is to channel financing from standard private equity and third-party private equity partners, to allow for joint ventures and to look at also either trading and/or selling assets for royalties and streams. We believe this is the natural evolution of our accelerator model, and will set the stage for us, to help simplify our equity and, sorry, our royalty portfolio. As we move forward, we will be looking to raise some partnership equity through North Spirit Discovery Group in the new year as we get more settled post the transaction. The main mandate for that financing will be project financing, engineering, and management, which is really the value side of how we built the accelerator model.
If you remember correctly, five years ago, we talked about what the goal of the accelerator model, which was to create our own in-house organic opportunities. We now have those opportunities have been maturing, and we're evolving to take advantage of the hard work that's been done and the investments that have been made in the last five years. The keynote on page six takes you through the timeline of what we see at Barkerville. It's a crucial point in the evolution of this story in that the feasibility study is underway. Permitting is underway. We now the resource has been completed on the first portion of the project, which is about four kilometers of the trend out of 67 kilometers, there's quite a bit of upside. That we have an existing mill site with tailings pond, cyanide permitting.
We'll be taking advantage as the way the PEA study is set up with low capital intensity of less than $240 million U.S. dollars required to build 185,000 ounce a year mine in Canada. Page seven, a little bit of an overview from our friends from Victoria Gold. Ramping up to 200,000 ounces a year. This will be the latest gold mine to come online in Canada and produce gold to the gold forum that we all enjoyed at the Denver Gold Show in September. We see this as the way forward as this is a northern heap leach operation at 30,000+ tons per day. It is a sizable mine, it sets the stage for many more opportunities to be unlocked now that we have such a significant piece of infrastructure in the Yukon. Page eight, subsequent to September 30th, post-quarter.
We also completed the credit bid for the Stornoway Diamond Corporation. We will maintain our 9.6% stream on the Renard Diamond Mine if the credit bid was successful, and is now closed. Congratulations to Bryan Coates and the other streaming partners on getting that deal done. It was a long and complicated process, but the diamond mine is up and running well. We had the privilege of attending a diamond sale with our partners from the [Kisdippo event] this month in Quebec, and some of the other groups that remain in the consortium.
It is a good ownership structure for this project, and that we have a lot of individuals, institutions, and individuals involved that are capable of managing this asset through the lower commodity price and hopefully set the stage for success as we come through what everybody seems to believe is the next leg of the diamond market with the closing of Argyle and some of the other producers in Canada, like Victor. We see a lot of upside there. As the saying goes, buy low, sell high. We feel pretty good about what's happened with Stornoway Diamond in terms of maintaining our 9.6% diamond stream and being able to keep the mine in production and moving forward. We also declared a payable January 15th, 2020 to shareholders of record as of December 31st, 2019. It's a fact that as a team, we're particularly proud of.
As we set out in 2014, to be a different royalty company, and to pay dividends and have a disciplined approach to capital allocation, and to have a Canadian focus moving through our value proposition to shareholders. Page nine is a summary of the royalties and streams that contribute to our current GEOs. We'd achieved 18,123 ounces for the quarter ending at the end of September. Our allocation of metals within that space is at 69% gold, 18% silver, making it a total of 87% in precious metals. If you include diamonds as precious metals, or precious, then we would be at 98% weighting. At that, we have achieved 91% margins on our portfolio this year. Canadian Malartic still is our cornerstone asset, having delivered just under 8,000 ounces for the quarter.
You can see the breakdown of the rest of the contribution to the portfolio underneath, and we continue to build on that basis. Our friends from Victoria will hopefully be the lead horse for next year as that mine continues to ramp up. Returning on capital on page 10. We're very proud of this slide. We've managed to make money consistently since we IPO'd this company in 2014, and we've had a disciplined approach to returning that capital to shareholders, with over CAD 219 million having been returned to shareholders since we started this company through the share buyback. Also, total received, if we combine share buybacks with our dividend payments, we're at CAD 328 million, has been returned to shareholders through the process of value building at OR.
On page 11, I'm going to hand it over to Elif, our Chief Financial Operating Officer, to take you through the quarter in more detail. Thank you.
Thank you, Sean. Good morning, everyone. Revenues from royalties and streams increased by 8% to CAD 33.9 million compared to last year, mainly due to increase in our stream interest. We also recognized record operating cash flow at CAD 28.3 million compared to CAD 20.6 million, mainly reflecting the increased cash margins and elimination of cash-settled, share-based payments. If we go to the next page 11, earnings including impairments stood at CAD 13.1 million compared to CAD 5.5 million for the same period last year, reflecting a strong quarter on the gain on sale of the Brucejack offtake. Net losses due to impairment charges that I'd like to go in a little bit more detail on the next slide, were CAD 59 million net of income taxes, so our net losses for the quarter stood at CAD 45.9 million.
Our adjusted earnings, CAD 5.7 million for last year's third quarter and CAD 17.5 million for this quarter, mainly reflecting, again, like I said, the increase in the cash margins as well as the gain that we have made from the sale of the Brucejack interest. If we go to page 13, a little bit more detail in terms of our impairments. As we had announced previously, Stornoway Diamond, the operator of the Renard Mine, was running a strategic process, and Osisko, along with other creditors, was supporting the process. In September, the operator announced that it had applied to protection under the CCAA to structure its business and financial affairs. This was considered an impairment for accounting purposes, and we have to run an impairment assessment, which resulted in the impairment that you see here, CAD 47.2 million, and CAD 34.6 million net of the income taxes.
Now the recoverable amounts for Renard's stream for us stands at CAD 17.2 million. On the Amulsar stream and offtake front, in September, Lydian, again, the owner of the Amulsar project, announced a delay and timing of the construction activities, and the expected first gold pour and ramp up for the full production as a result of the now 15 months blockade on construction, as well as some changes to the expected life of mine and annual production that they came up with within the third quarter. Again, this resulted as an impairment indicator for us, and we did test our model, which resulted in a $9.9 million USD impairment, coming up to CAD 13.1 million for the quarter. After these adjustments, the Amulsar stream and the offtake recoverable value is about $73.7 million USD and CAD 97 million.
For Falco Resources, the net investment was impaired. It's an associate for us, so the carrying value is not actually at fair value, and that's why we had to actually recognize the reduction in the fair value of the equity investment in Falco Resources to bring it down to its fair value. We recorded an impairment charge of CAD 12.5 million and CAD 10.8 million net of income taxes for the quarter. If you go to page 14, a little bit of a breakdown in terms of the revenues and the type of interest that we have in royalties, streams, and offtakes. As Sean mentioned. It was a pretty strong quarter in terms of our royalty and stream interest, and we reported a 90.8% cash margin from those interests as well. In terms of offtakes, revenues stood at CAD 75.3 million compared to CAD 80 million last year.
We're going to see a reduction, a considerable one, in terms of the revenues because of the Brucejack offtake sale. Just to give you an idea, the Brucejack offtake agreement was bringing us about CAD 80 million revenues per quarter, but of course, with a very low historical cash margin at 1%. Although the revenues will go down considerably because of the offtake agreement now not being there anymore, we're not going to see a material impact in terms of our cash operating inflow. Page 15 kind of gives us a breakdown in terms of the different products in our GEOs, in terms of gold, silver, diamonds, and other metals. We did have revenues of CAD 109.2 million and a gross profit of CAD 20.9 million. Again, with the strong cash flows from operations, CAD 20.3 million as opposed to CAD 20.6 million.
Our financial position on page 16, we have drawn on our credit facility for $50 million U.S., coming up to about CAD 20 million. This leaves us with an available credit of CAD 480 million, including accordion. Looking at that, our cash and our fair value of our amendments in the marketable securities, we actually have almost CAD 900 million in available capital for us for future investments. Page 17, we did have to revise our guidance this quarter. You will see on the left-hand side the original guidance where we had a low and a high level in terms of what we're expecting.
The revised guidance now stands at 7,000 GEOs, the main result for the reduction is really the weak diamond prices that we've been seeing for the Renard Mine during the year and the sale of the Brucejack gold offtake and the impact that this will have for the fourth quarter. However, we do see that the cash operating margins and the operating cash flow are expected to be in line with what we had expected, and that is, of course, a good part as a result of the strong gold prices that we're seeing. With that, Sean, back to you for investment strategy.
Thank you, Elif. On to page 18 is a slide that we discuss a lot, and it's been around for quite a while, and it sums up our investment strategy. As you know, we set out in 2014 with the accelerator model as a new introduction to the royalty and streaming space. That was essentially on the left-hand side in the 25% incremental investment, where we said that we would invest 25% of our investment available assets under management in the accelerator model, and then we would invest 75% more in the traditional space of development opportunities, refinancing of debt or project expansion that we traditionally see in the gray and the gold-colored zones within this chart.
What has happened over the last five years in the accelerator space, we've incubated Osisko Mining, which has gone from an $8 million market cap to $750 million, $800 million market cap with the successful discovery of Windfall Lake. It continues to be the largest driller in Canada with over 24 drills turning on it as of yesterday and continues to be discovering new and exciting ounces there. We also came along, we incubated the Horne 5 project, which went from zero ounces up in 2015 to currently sitting at 6.1 million ounces of gold equivalent reserves and an overall resource there of over 9 million ounces, gold equivalent ounces, which is a polymetallic VMS deposit. Huge success there. Obviously, that project is currently in the trough in that it's in the permitting cycle, and a full feasibility was published in 2017.
We also incubated Barkerville and Osisko Metals, which is operated by Bob Wares on the Pine Point project, which is our zinc-based metal company. We would consider Victoria to have been one of the accelerator investment companies that we participated in, though it was later on in the cycle. We've been very successful at that, and I would say one of the most successful accelerator investment that we've made so far is Arizona Star, where we invested CAD 5 million in equities and CAD 10 million to buy a 1% royalty. We made a net return of CAD 34 million on the equity portion of that investment, and we still own the 1% royalty on their Hermosa project in Arizona through that accelerator program.
It's been a very potent source, and the royalties that we've earned in that accelerator place would include the 5% royalty or 4% royalty that we have on the Cariboo project. We include the 1% that we have on Hermosa and the 1.5%-2.5% that we have on the Windfall Lake project, as well as the Back Forty Project and some of the other significant royalties that we've earned along the way. As you see in the middle of the zone here, the development opportunities, we typically see that projects, single asset companies in particular, have a value challenge, when they're in the development phase, and that's essentially after the first resource comes out, the PEA through the pre-feasibility study, feasibility study, permitting, EIA, and project finance. As you can see on this curve, we've indicated Eagle.
Eagle has completed construction as of September and is currently in ramp up. We've been through the cycle with Victoria. We bought into the company, after they had achieved permitting and, we were the catalyst investor with our partners from Orion to get a CAD 550 million finance package together, in that window. Now we're seeing that project is bearing fruit for us as the retention of the 5% royalty that we still own on that project. Cariboo sits neatly here. It's just put out the PEA study, and continues to deliver exploration success that is now heading into the feasibility and permitting cycle. We expect to see permitting there to take on the phase 4,000 ton per day phase of the project to be somewhere around the 24 months mark.
After that, project financing, it's a relatively low-cost mine build, again, at about CAD 225 million, of which half of it could be financed by debt traditionally. Leaving the equity and royalty component sitting at around CAD 120 million left to complete to production in that project, after permitting cycle has been completed. If you look at the other opportunities where we participated in the producing opportunities, with our partners at Orion, we did the largest royalty deal on the acquisition of the Orion portfolio in 2017 for CAD 1.25 billion, or CAD 1.125 billion, on that portfolio. We subsequently invested in the silver stream in Gibraltar, and we bought the Renard refinancing, as we went through that diamond mine. The message that I would like everyone to take away today is that we have not changed our strategy. We continue to work on the 25%-75% model.
Cariboo is the most recent entry into the 75% zone. We set out in 2014 to create our own opportunity set with a dominance in Canada. We've looked at all the projects that can go four million to five million ounces on the Canadian landscape, and we feel like we're involved with a good portion of them. We see our growth being more organic within the accelerator model as we go forward. I know there's been some discussion about change in business model, we remain on our accelerator model. With the creation of North Spirit, we are looking forward to evolve our accelerator model and hopefully purify the royalty multiple in the eyes of our shareholders as we get that piece of work complete.
In summary, on page 19, the company is in very good shape with 135 royalties, dominant Canadian opportunity set in front of us, and a dominant Canadian source of royalties here. We produced over 18,000 GEOs in the quarter, 91% cash margins, and a dividend yield of over 1.6% as we go into the end of the year. As of December 31st, if you were to buy the stock today, your yields are going to be north of 2%. An investment portfolio of CAD 293 million with CAD 123 million of cash on hand as of the end of September. We have some cash coming in from our sales, as well as our traditional cash flow from our royalties, leaving us with over CAD 800 million available liquidity to manage the business and take advantage of the opportunity sets in front of us.
On that note, I thank everybody, and we'll move into the Q&A period. Thank you.
As a reminder, if you'd like to ask a question, please pick up your receiver and press star, followed by the number one on your telephone keypad. [Foreign language] Please stand by while we compile the Q&A roster. Again, if you'd like to ask a question, press star, then the number one on your telephone keypad. There are no question at this time.
All right. Well, thank you, everybody. As a final note, we'd like to send our condolences to the employees and workers at SEMAFO in Burkina Faso, who recently suffered a significant loss. Our thoughts are with the families of the people that have been affected by this tragedy. If anybody has any questions for us, we will be attending the Raymond James conference in Austin, Texas, this weekend, and we're available by phone if anybody would require us. Thanks very much, and look forward to seeing you at the next available occasion.
This concludes today's conference call. You can now disconnect.