Osisko Development Reports Net Income Amid Going Concern Warning
The mineral exploration company reported net income of $60.2 million for the first quarter of 2026
Osisko Development Corp. (ODV), a mineral exploration and development company, reported net income of $60.2 million for the three months ended March 31, 2026. This follows a net loss of $37.3 million in the same period of the previous year.
The company said the increase in income was primarily due to a decrease in operating loss and a decrease in the fair value of the warrant liability. Net income was also positively impacted by the gain on the disposal of the Sapuchi project, which was presented in discontinued activities.
Revenue for the first quarter of 2026 was $2.2 million, compared to nil in the first quarter of 2025. The company attributed this revenue to gold sales from the Tintic Project in the USA, including direct shipping of mineralized material and heap leach operations. Operating loss for the period was $9.7 million, an improvement from the $40.8 million operating loss in the prior-year quarter. The company said the lower loss was mainly due to a $25.8 million impairment recorded in the first quarter of 2025 related to the QR Mill.
General and administrative expenses rose to $10.0 million from $6.2 million in the prior-year period. The company attributed the increase to higher compensation expenses, including $1.1 million in share-based compensation.
As of March 31, 2026, the company held $594.3 million in cash and cash equivalents and had working capital of $355.1 million. The cash balance increased from $422.3 million on December 31, 2025, driven by $196.3 million in gross proceeds from a February 2026 offering and $36.5 million from the exercise of warrants. These inflows were partially offset by general and administrative expenses and construction spending at the Cariboo Gold Project in British Columbia.
Despite the cash position, the company stated that its working capital and available credit facilities will not be sufficient to meet obligations, commitments, and forecasted expenditures up to March 2027. The company noted material uncertainties that may cast substantial doubt upon its ability to continue as a going concern. This assessment excludes $350 million in remaining tranches of a 2025 Financing Facility with Appian, as conditions precedent had not been satisfied as of March 31, 2026.
Osisko Development said its ability to fund planned activities depends on management's ability to secure additional financing in the future.