Osisko Development: Cariboo Still a Financing Problem

Osisko Development's Cariboo gold project in British Columbia is being priced by the market as a financing problem rather than a development story. The company is moving from a pure developer toward a multi-asset producer. The immediate focus has stayed on the capital needed to get Cariboo into production. That perception has weighed on the stock even as the project advances.

Osisko Development holds a portfolio of gold assets, including Cariboo and the San Antonio project in Mexico. The market's attention has remained fixed on the roughly $400 million in remaining capital required to build Cariboo, according to the company's most recent feasibility study. Management has been working to secure project financing. The company's cash position at the end of Q1 was about $35 million, enough to fund near-term exploration but not the full build.

The stock trades at a discount to net asset value relative to peers that are already producing. That discount reflects the uncertainty around the financing timeline. Osisko Development has not yet set a date for a construction decision. The company's next milestone is the completion of a feasibility study update, expected in the second half of 2025. That update will provide a more detailed cost and schedule picture.

If the company secures project financing, the discount could narrow. A positive feasibility update could also shift market perception. Delays or cost overruns would reinforce the financing narrative.