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Osisko Development (TSXV:ODV) has seen mixed share performance recently, with a 1 day decline of 1.96%, a 1.42% gain over the past week, and a small loss over the past month.
Over the past 3 months, the stock shows a 7.97% gain, alongside a 3.94% return year to date and a very large 1 year total return, set against weaker 3 and 5 year figures.
See our latest analysis for Osisko Development.
With the share price at around CA$5.01, Osisko Development’s recent 7.97% 3 month share price return contrasts with a very large 1 year total shareholder return and weak 3 and 5 year total shareholder returns. This suggests sentiment has improved over the short term, while longer term investors are still sitting on losses.
If this kind of move in a gold focused explorer has your attention, it might be a good moment to scan a wider field of producers and developers using our list of 21 elite gold producer stocks.
With Osisko Development still loss making, reporting modest revenue, and the share price at about CA$5.01, the key question now is whether today’s valuation offers a genuine entry point or if the market already prices in future growth.
On CA$5.01 per share, Osisko Development is trading at a P/B of 2.7x, which sits well below both its peer group and the wider Canadian metals and mining sector.
The P/B ratio compares the company’s market value to its book value, so it is often used for asset heavy businesses like miners and developers. In Osisko Development’s case, the 2.7x multiple is being applied to a business that is still reporting losses and carries higher risk funding, with 100% of liabilities coming from external borrowing rather than customer deposits.
Against that backdrop, the discount to peers is clear. Management and board experience, plus analysts being in reasonable agreement on a higher price target, sit alongside factors such as ongoing losses, forecast unprofitability over the next 3 years and shareholder dilution in the past year. The result is a P/B that is well below the 14.9x peer average and also under the 3.5x Canadian metals and mining industry average, which signals the market is pricing Osisko Development more conservatively than many of its peers on a balance sheet basis.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price to book of 2.7x (UNDERVALUED)
However, there are clear risks here. These include ongoing losses of CA$250.827m on modest CA$11.268m revenue and reliance on external borrowing to fund development.