🧾 What This Document Is

This is a quarterly earnings report (a "6-K" filing) for Osisko Development Corp., covering the fourth quarter and full year of 2025. Think of it as a comprehensive update for investors, mixing financial results with major project updates and corporate news. It tells the story of a company that's spending heavily to build its big gold mine while generating some small-scale cash from another project.

👉 In simple terms: They're reporting on their bank account, how construction is going on their main mine, and what they've been doing to keep the business funded and moving forward.

🏢 What The Company Does

Osisko Development is a gold development company. This means they don't have a large, operating commercial mine yet. Their main job right now is to build one.

👉 Their flagship project is the Cariboo Gold Project in British Columbia, Canada. This is the future engine of the company. They also own a smaller, historical gold project in Utah called the Tintic Project.

👉 Their goal is clear: Transition from a developer spending money to a miner producing and selling gold. Until Cariboo is built, they need to fund this expensive construction phase without generating significant revenue.

💰 Financial Highlights: A Cash-Heavy Quarter

The company ended 2025 in a very strong cash position, which is crucial for a developer in construction mode.

• Cash & Equivalents: They had about $422.3 million in the bank as of December 31, 2025. This is their war chest for building Cariboo.
• Debt: They owe $145.8 million (US$106.4 million) from a major project loan. This was the first draw from a much larger US$450 million credit facility arranged by Appian Capital.
• Revenue from Small-Sales: They made $24.2 million in Q4 from selling 3,970 ounces of gold. This came from small-scale mining at their Tintic Project, not from Cariboo.
• Profit from Small-Sales: After costs of $6.8 million, this generated $8.7 million in operating income. This is a small but welcome cash inflow to help cover corporate expenses.

🚀 Key Moves: Financing and Refocusing

Q4 and early 2026 were all about securing funding and streamlining the company.

• Private Placement (Oct 2025): They raised $82.5 million by selling shares, including special "flow-through" shares for Canadian tax benefits.
• Major Public Offering (Feb 2026): After the quarter, they raised a huge US$143.8 million (C$196.2 million) by selling shares to the public. This massively bolsters their construction budget.
• Warrant Exercise (Mar 2026): They received $24.9 million more when investors exercised their warrants (essentially, options to buy shares).
• Asset Sale Completed: They finalized the sale of their San Antonio Gold Project in Mexico. They received shares in the buying company (Axo Copper) and may get more cash later based on project milestones. This sale simplifies their focus to two core projects.

📦 The Flagship: Cariboo Gold Project Update

This is the main event. Construction and exploration are active, but with some challenges.

• Pre-Construction is Rolling: They are building critical infrastructure like a water treatment plant (almost operational), a waste rock storage facility, and upgraded camp facilities.
• Underground Development - A Challenge: They've built 2.1 km of tunnels, but progress has been slower than planned due to tough ground conditions. This is a common risk in mining.
• Big Exploration Campaign: They started a massive 70,000-metre drilling program to find new gold deposits and better understand what they already have. Up to 20 drill rigs could be active at once in 2026.
• Infill Drilling: A key 13,000-metre program to get detailed data for mine planning is ~80% complete. This data is critical for the next phase of the project.

💸 Cash Flow Story: Where the Money is Going

The company's cash flow paints a clear picture of a developer:

• Money In: Primarily from financing activities (raising debt and equity). Small-scale gold sales at Tintic provided $35.5 million for the full year.
• Money Out: The vast majority is flowing into capital expenditures and exploration at the Cariboo Project. The cash balance is high because they just raised a lot, but it will decrease steadily as construction accelerates.
• The Strategy: Use the large cash pile to build Cariboo, hoping to become cash-flow positive once the mine is producing gold.

🔮 What's Next: The 2026 Roadmap

The company has laid out specific, costly objectives for 2026, all centered on Cariboo:

• Finish Key Construction: Complete the water plant, advance underground development, and build more surface infrastructure.
• Complete Critical Drilling: Finish the 13,000-metre infill program to convert resources into reserves and advance the massive exploration campaign.
• Spend the Money: They've budgeted ~$61.8 million just for these 2026 activities, with more spending likely needed.
• Manage Risk: Operate under a phased re-opening after a fatal incident in January 2026. This tragic event temporarily halted work and underscores the serious safety risks in mining.

⚖️ Big Picture: Strengths & Risks

👍 Strengths:

• Very Well-Funded: Their massive cash balance ($422.3M plus recent raises) means they have the capital to advance construction for a long time without needing more money soon.
• Permitted and Advanced: Cariboo is fully permitted, which is a huge hurdle already cleared. Construction is visibly underway.
• Clear Focus: After selling San Antonio, management is focused solely on building Cariboo and exploring its potential.

⚠️ Risks:

• Construction & Execution Risk: Delays (like with underground development) and cost overruns are common in major mining projects and could strain finances.
• No Commercial Production Yet: The company is spending heavily with zero revenue from its core asset. This burn rate will continue for years.
• Safety & Social Risk: The fatal incident highlights operational risks. They also need to maintain good relationships with local communities and regulators.
• Financing Risk (Long-Term): While funded now, if construction takes longer or costs more, they may need to raise more money, which could dilute existing shareholders.

🧠 The Analogy

Osisko Development is like a homebuilder who has bought a prime plot of land (Cariboo) and secured a large construction loan. They've sold a small vacant lot they owned elsewhere (San Antonio) to focus. Right now, they are in the messy, expensive phase of laying the foundation and framing the house—no one is living there, and it's costing them a fortune. They have a big pile of cash from the loan to pay the contractors, but the project is already taking longer and costing more than first planned. Their success depends on finishing the house on budget so they can eventually sell it or live in it profitably.

📇 Key Contacts & People

• Sean Roosen - Chairman and CEO - Email: [email protected] - Tel: +1 (514) 940-0685
• Philip Rabenok - Vice President, Investor Relations - Email: [email protected] - Tel: +1 (437) 423-3644
• Scott Smith - Vice President, Exploration (Qualified Person)
• Sarah Harrison - Vice President, Permitting & Compliance (Appointed Feb 2, 2026)

🧩 Final Takeaway

Osisko Development is a development-stage company with a strong cash position to build its flagship Cariboo Gold Mine. The story in 2025-2026 is all about executing an expensive and complex construction plan, with progress being made but already facing real-world challenges. Investors are betting on the management's ability to navigate these hurdles and eventually turn this large-scale spending into a profitable gold-producing mine.