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MAVERIX ANNOUNCES FIRST QUARTER 2022 RESULTS AND DECLARES QUARTERLY DIVIDEND

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MAVERIX ANNOUNCES FIRST QUARTER 2022 RESULTS AND DECLARES QUARTERLY DIVIDEND

 

 

 

 

 

All amounts are in U.S. dollars unless otherwise indicated

 

Maverix Metals Inc. (NYSE American: MMX)  (TSX: MMX) is pleased to announce operating and financial results for the first quarter ended March 31, 2022.

 

First Quarter 2022 Highlights

  • Revenue of $14.7 million;
  • Gold equivalent ounces sold of 7,7381;
  • Cash flow from operating activities of $8.0 million;
  • Cash flow from operating activities, excluding changes in non-cash working capital, of $10.5 million1;
  • Average cash cost per GEO of $190, resulting in a cash operating margin of 90% or $1,704 per ounce1;
  • Net income of $3.5 million, or $0.02 per share;
  • Adjusted net income of $5.7 million1, or $0.04 per share; and
  • Acquired a package of three gold royalties on Nevada properties owned by Gold Standard Ventures Corp.

 

Dan O’Flaherty, CEO of Maverix, commented, “Maverix had a productive start to 2022 with the acquisition of a strategic package of three gold royalties in Nevada. We are also excited about the continued organic growth within our portfolio as several of our royalty counterparties announced positive operational updates, including the Camino Rojo mine achieving commercial production shortly after the quarter ended. Consistent with our strategy for growth and value creation, we remain focused on evaluating new opportunities to add to and complement our robust organic growth.”

 

Summary of Quarterly Results

 

Quarter Ended

(in thousands of USD, except for GEOs and per share amounts)

March 31, 2022 March 31, 2021
Statement of Income and Comprehensive Income
Royalty revenue $ 6,866 $ 6,883
Sales $ 7,788 $ 6,197
Total revenue $ 14,654 $ 13,080
Cash flow from operating activities $ 8,019 $ 13,479
Net income $ 3,523 $ 14,769
Basic earnings per share $ 0.02 $ 0.10
Diluted earnings per share $ 0.02 $ 0.10
Dividends declared per share $ 0.0125 $ 0.01
Non-IFRS and Other Measures1
Adjusted net income $ 5,661 $ 4,959
Adjusted basic earnings per share $ 0.04 $ 0.04
GEOs sold 7,738 7,302
Average realized gold price per GEO $ 1,894 $ 1,791
Average cash cost per GEO $ 190 $ 223
Cash flow from operating activities, excluding changes in non-cash working capital $ 10,549 $ 8,998

 

For complete details please refer to the unaudited condensed interim consolidated financial statements and associated Management Discussion and Analysis for the three months ended March 31, 2022, available on SEDAR (www.sedar.com), EDGAR (www.sec.gov) or on Maverix’s website (www.maverixmetals.com).

 

To listen to Maverix’s President, Ryan McIntyre, discuss the first quarter results please use this link: MMX Q1 2022 Results

 

2022 Outlook

 

Maverix is on track to achieve its previously announced guidance of 32,000 to 35,000 attributable GEOs1 for 2022 at approximately a 90% cash margin with approximately 99% of expected revenue derived from gold and silver. Similar to 2021, the Company expects attributable GEOs to increase in the second half of the fiscal year.

 

Asset Portfolio Updates

 

Camino Rojo (2% NSR)

 

Orla Mining Ltd. declared commercial production at its Camino Rojo oxide mine effective April 1, 2022, after a successful commissioning period which included the ramp up of mining and processing to sustained throughput levels. All major construction activities have now been completed and Camino Rojo has demonstrated its ability to sustain ongoing production levels. Record monthly processing throughput was achieved at Camino Rojo in March 2022. The average daily stacking throughput for the month was 17,444 tonnes per day (“tpd”) or 97% of nameplate capacity of 18,000 tpd. Achieving nameplate capacity is expected during the second quarter of 2022. Orla will continue to seek opportunities to improve and optimize the throughput and availabilities to achieve and ultimately exceed design nameplate capacities.

 

For more information, please refer to orlamining.com and see the news releases dated April 6, 2022 and March 31, 2022.

 

Beta Hunt (4.75% Gold Royalty and 1.5% Nickel Royalty)

 

On April 7, 2022, Karora Resources Inc. announced an updated consolidated gold mineral resource highlighted by the maiden gold resource for the Larkin Zone at the Beta Hunt mine. Beta Hunt gold measured and indicated mineral resources increased by 7% to 1.12 million ounces and the gold inferred mineral resource increased by 46% to 786,000 ounces. Significant Beta Hunt additions include the maiden Larkin Zone mineral resource comprising gold measured and indicated resources of 1.44 million tonnes at 2.6 grams per tonne for 119,000 ounces and a gold inferred resource of 2.17 million tonnes at 2.3 g/t for 162,000 ounces. The Larkin Zone has been delineated to a strike length of over 1,000 metres and a depth of 150 metres and remains open along strike and at depth providing significant potential for further expansion as the drill program at Beta Hunt continues. Targeted drilling at Beta Hunt continues to grow the gold mineral resource inventory in support of Karora’s growth plan which is underpinned by an expansion to 2.0 million tonnes per annum production from Beta Hunt by 2024.

 

For more information, please refer to karoraresources.com and see the news release dated April 7, 2022.

 

Mt Carlton (2.5% NSR)

 

On April 22, 2022, Navarre Minerals Limited announced high-grade gold, silver and copper drilling intercepts at its Mt Carlton United deposit part of the recently acquired Mt Carlton Operation (“Mt Carlton”). With drill intercepts of up to 22.9 g/t gold, 1,327 g/t silver and 4.2% copper, the results confirm the outstanding grade and continuity of the mineral inventory at MCU, approximately four kilometres southwest of the Mt Carlton processing facility. While drilling continues in 2022 as part of an ongoing exploration program, Navarre anticipates the drilling results released to date will be incorporated into an updated resource estimate for MCU which is expected to be published in September 2022, along with updated mineral resources for other Mt Carlton deposits such as V2, Telstra Hill and Crush Creek.

For more information, please refer to navarre.com.au and see the news release dated April 22, 2022.

 

Omolon (2.5% GRR)

 

On April 25, 2022 Polymetal International plc announced it continues to operate safely and profitably and is fully focused on ensuring business continuity and long-term viability. Polymetal also reconfirmed its fiscal 2022 production guidance. Sanctions announced in the period between March 9, 2022 and April 25, 2022 did not have a material impact on the business of Polymetal and it complies rigorously with all relevant legislation and is implementing comprehensive measures to observe all applicable international sanctions. The scope and impact of any new potential sanctions (and any countersanctions) are yet unknown, however they might further affect key Russian financial institutions as well as mining companies, including Polymetal. Maverix understands that contingency planning has been initiated by Polymetal proactively to maintain business continuity in the event of adverse developments, but no assurances can be made in this regard. The conflict between Russia and Ukraine and any restrictive actions that have or may be taken in response thereto, such as sanctions, export and or currency controls, could have negative impacts on Polymetal’s ability to continue operation of the Omolon hub and Polymetal’s ability to make payments to the Company.

 

For more information, please refer to polymetalinternational.com and see the news releases dated April 25, 2022 and March 30, 2022.

 

Karma (2% NSR)

 

On March 11, 2022, Endeavour Mining plc announced that it had closed the sale of its 90% interest in its Karma mine to Néré Mining. A key consideration of the sales process was the selection of a party that will maintain Endeavour’s trusted partnerships in Burkina Faso, by committing to operate the mine in the best interests of employees and stakeholders. Néré Mining is a Burkina Faso based consortium led by a board member of both Karma and a subsidiary of Endeavour that holds the mining license for the Endeavour Group’s Mana mine.

 

For more information, please refer to endeavourmining.com and see the news release dated March 11, 2022.

 

Gemfield (5% NSR)

 

On February 28, 2022, Centerra Gold Inc. announced it completed the acquisition of the Goldfield District project for $206.5 million. Goldfield is a conventional open-pit, heap leach project located in Esmeralda County, Nevada. Goldfield is comprised of three known deposits including the Gemfield, Goldfield Main, and McMahon deposits. The Gemfield deposit is fully permitted and shovel ready and was identified by Centerra as the first pit for potential development. In 2019, Waterton Global Resource Management, Inc. announced it was completing a feasibility study for the project with project average annual production in excess of 125,000 ounces of gold. Centerra expects to release an updated resource estimate in the first half of 2023 and an updated feasibility study thereafter.

 

For more information, please refer to centerragold.com and see the news releases dated February 28, 2022 and February 22, 2022.

 

Koné (2% NSR)

 

On February 14, 2022, Montage Gold Corp. announced the results of a definitive feasibility study for the Koné gold project in Côte d’Ivoire including an after-tax net present value of $746 million and an internal rate of return of 35% at a $1,600 per ounce gold price. The DFS outlined a 14.8 year mine life with average annual gold production of 257,000 ounces in the first nine years and an average of 207,000 ounces over its mine life. The permitting process at Koné is well underway with all requisite approvals expected in the third quarter of 2022 and an advisor has been appointed to assist Montage in the raising of project finance for the development of the project.

 

For more information, please refer to montagegoldcorp.com and see the news releases dated March 9, 2022 and February 14, 2022.

 

Cerro Blanco (1% NSR)

 

On February 22, 2022, Bluestone Resources Inc. announced the results of a feasibility study on its flagship Cerro Blanco project in Guatemala. The feasibility study outlined a robust, high-grade operation with average annual production of 241,000 ounces of gold over the first 10 years of operation and an initial mine life of 14 years with additional opportunities to extend the mine life given the extensive exploration potential of the land package. Bluestone recently submitted the environmental permit amendment application for the change in mining method and based on current estimates Bluestone believes it will be possible to receive approval of the permit amendment in Q3 2022, followed by a construction license and a forestry license.

 

For more information, please refer to bluestoneresources.ca and see the news release dated February 22, 2022.

 

South Railroad (2% NSR)

 

On February 23, 2022, Gold Standard announced the results of a robust feasibility study on its South Railroad project in Elko, Nevada. The feasibility study outlines a 10.5 year mine life with total gold production of over one million ounces and average gold production of 152,000 ounces over the first four years. Gold Standard intends to launch the construction financing process this quarter and anticipates concluding it before the end of the year. Construction of the South Railroad project could commence as early as the second quarter of 2023, with first gold production in the third quarter of 2024.

 

For more information, please refer to goldstandardv.com and see the news release dated February 23, 2022.

 

DeLamar (2.5% NSR)

 

On April 21, 2022, Integra Resources Corp. announced a simplified strategy to advance the heap leach stage of the project into permitting and development on a standalone basis. Permitting work at DeLamar has been initiated and baseline study work is well underway to support the submittal of a Plan of Operations in H1 2023. Advancing the DeLamar gold-silver project towards permitting and development of the heap leach stage as a standalone mining operation is a lower cost, lower risk option, creating strong economic returns and rapid payback. Non-oxide milling expansion will continue to be optimized through further study work and could be pursued under the right market conditions.

 

For more information, please refer to integraresources.com and see the news release dated April 21, 2022.

 

Silvertip (2.5% NSR)

 

On April 28, 2022, Coeur Mining, Inc. announced a new discovery at the Silvertip mine that indicates significant potential to grow the mineral resources of the mine immediately west of existing infrastructure. Surface and underground drilling led to the discovery of a new high-grade chimney west of the Camp Creek resource located at a shallower depth, called Camp Creek West. The first full drill holes into the zone returned the highest grade-thickness assays at Silvertip to date. For the remainder of 2022, Coeur expects to continue infill drilling in the Southern Silver and Central zones from underground. An additional surface core rig is expected to be added following the snow melt to perform expansion drilling at Camp Creek West.

 

For more information, please refer to coeur.com and see the news release dated April 28, 2022.

 

McCoy-Cove (1.5% + 2.0% NSR)

 

On March 7, 2022, i-80 Gold Corp. announced that the underground, advanced-exploration, program at the McCoy-Cove project had commenced. Construction of the decline is now underway and the Phase 1 program will include construction of an initial level with multiple drill bays to provide access for upgrading resources. Approximately 40,000 metres of underground definition and expansion drilling is anticipated to commence in H2 2022 followed by a feasibility study anticipated to be completed in 2023. The Cove deposit represents one of North America’s highest grade gold deposits with grades in excess of 10 g/t gold. The deposit remains open for expansion down-dip.

 

For more information, please refer to i80gold.com and see the news release dated March 7, 2022.

 

Dividend

 

The Company is pleased to announce that its Board of Directors has approved the payment of the quarterly cash dividend of $0.0125 per common share. The dividend will be paid on or about June 15, 2022, to shareholders of record as of the close of business on May 31, 2022.

 

The dividend is designated as an “eligible dividend” for the purposes of the Income Tax Act (Canada). Dividends paid by Maverix to shareholders outside Canada (non-resident investors) will be subject to Canadian non-resident withholding taxes. The declaration, timing, amount and payment of future dividends remains at the discretion of Maverix’s Board of Directors.

 

Social Responsibility

 

Further to the Company’s development of environmental, social and governance initiatives, as overseen by the Company’s Nominating, Governance and Sustainability Committee, and to foster sound corporate social responsibility in its operations, the Company recently made a donation to the Canadian Red Cross.

1 Please refer to the Non-IFRS Measures section at the end of this press release.

 

Qualified Person

 

Brendan Pidcock, P.Eng., is Vice President, Technical Services for Maverix, and a qualified person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical disclosure contained in this news release.

 

About Maverix

 

Maverix is a gold-focused royalty and streaming company with a globally diversified portfolio of over 120 assets. Maverix’s mission is to increase per share value by acquiring precious metals royalties and streams. Its shares trade on both the NYSE American and the TSX.

 

Posted May 13, 2022

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