(Kitco News) - Osisko Mining Corp.’s (TSX:OSK) Sean Roosen, president and chief executive officer, maintained his standpoint that Goldcorp Inc.’s (TSX:G)(NYSE:GG) C$2.6 billion hostile bid would be more dilutive to shareholders than sticking with the single asset producer.

During Osisko’s fourth-quarter and full-year earnings conference call Wednesday, Roosen said shareholders should reflect on the value of keeping their shares with Osisko.

“I think shareholders need to reflect on what they own now before they make any decisions, and we would encourage you not to tender your shares at these low prices,” Roosen said. “The Canadian Malartic (mine) management team has created a significant amount of value for investors in a very short time.

“Compared to our friends at Goldcorp, we’ve delivered significantly better returns on the five-year basis, and I think if you let Canadian Malartic to continue to produce, you will enjoy a significant amount of cash flow, which will returned to investors,” he said.

Osisko reported company record fourth-quarter gold production of 137,321 ounces at cash costs of US$679 per ounce at its flagship Canadian Malartic mine.

Roosen also highlighted the benefits of remaining a single producing asset company in Quebec, rather than be subjected to Goldcorp’s asset portfolio in mining jurisdictions he said were risky.

“It’s been said it’s better to have a multi-asset base; we think that being on grid power in Quebec with a well trained and well settled workforce, the risk is significantly lower than in other jurisdictions that we as shareholders would have to expose ourselves to,” Roosen said. “Without the Goldcorp bid, we don’t have to go to Argentina, we don’t have to deal with Guatemala and we don’t have to deal with the Dominican Republic, or any other jurisdictions that have become somewhat unstable.

“We’re here in Quebec, with a new mining law,” he continued. “The future is clear, the runway is clear, this is a long-life asset with lots of upside to come.”

The company reported net earnings of C$10.5 million, or 2 cents per share, for the fourth quarter of 2013 compared to C$12.9 million, or 3 cents per share, during last year’s comparative quarter.

Rounding out the earnings data, cash flow from operating activities was up at C$72.5 million during the fourth quarter of 2013 compared to C$64.6 million in the fourth quarter of 2012. Osisko also increased its cash resources by C$38.9 million during the quarter to C$210.5 million.

By Alex Létourneau of Kitco News aletourneau@kitco.com
Follow Alex Letourneau at @alex_letourneau

http://www.kitco.com/news/2014-02-19/Osisko-CEO-Reaffirms-Accepting-Goldcorp-Bid-Would-Be-Dilutive-To-Shareholders.html