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Maverix Announces Record Financial Results for 2020

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Maverix Metals Inc. (NYSE American: MMX) (TSX: MMX) is pleased to announce record operating and financial results for the fourth quarter and year ended December 31, 2020.

 

Full Year 2020 Financial Highlights

 

  • Record revenue of $51.7 million;
  • Record cash flow from operating activities, excluding changes in non-cash working capital, of $36.5 million1;
  • Record gold equivalent ounces (“GEOs”) sold of 28,9161;
  • Average cash cost per GEO of $174, resulting in a cash operating margin of 90% or $1,613 per ounce1; and
  • Record net income of $23.7 million, including a one-time gain on an amendment of a royalty interest, and adjusted net income of $15.6 million1.

 

Fourth Quarter 2020 Financial Highlights

 

  • Record revenue of $16.6 million;
  • Record cash flow from operating activities, excluding changes in non-cash working capital, of $11.5 million1;
  • Record GEOs sold of 8,8361;
  • Average cash cost per GEO of $184, resulting in a cash operating margin of 90% or $1,691 per ounce1; and
  • Net income of $5.3 million and adjusted net income of $6.3 million1.

 

Dan O’Flaherty, CEO of Maverix, commented, “Maverix delivered another successful year in 2020 with revenue increasing over 50% from 2019, demonstrating the strength of our diverse, high-quality portfolio of precious metals royalty and stream interests. We look forward in 2021 and beyond, to organic growth from our existing portfolio while continuing to focus on adding value through additional royalty and stream acquisitions. Our capital position has never been stronger, as we are now debt free and have access to the full $120 million available under our credit facility, while holding approximately $55 million in cash and marketable securities. Finally, the recent inclusion in the GDXJ is another milestone for the Company, reflecting the successful execution of our business strategy thus far.”

 

Summary of Quarterly and Annual Results

 

Three months ended Year ended
(in thousands, except for GEOs and per share amounts) December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019
Statement of Income and Comprehensive Income
Royalty revenue $ 10,140 $ 6,741 $ 32,689 $ 21,797
Sales $ 6,429 $ 3,758 $ 18,992 $ 11,915
Total revenue $ 16,569 $ 10,499 $ 51,681 $ 33,712
Cash flow from operating activities $ 7,746 $ 7,456 $ 33,000 $ 20,961
Net income (loss) $ 5,346 $ (11,237) $ 23,719 $ (7,667)
Basic earnings (loss) per share $ 0.04 $ (0.10) $ 0.19 $ (0.07)
Diluted earnings (loss) per share $ 0.04 $ (0.10) $ 0.17 $ (0.07)
Dividends declared per share $ 0.01 $ 0.01 $ 0.04 $ 0.01
Non-IFRS and Other Measures1
Adjusted net income $ 6,282 $ 3,008 $ 15,624 $ 6,958
Total GEOs sold 8,836 7,096 28,916 24,021
Average realized gold price per GEO $ 1,875 $ 1,480 $ 1,787 $ 1,403
Average cash cost per GEO $ 184 $ 171 $ 174 $ 163
Cash flow from operating activities, excluding changes in non-cash working capital $ 11,474 $ 7,869 $ 36,527 $ 23,468

 

For complete details please refer to the Consolidated Financial Statements and associated Management Discussion and Analysis for the quarter and year ended December 31, 2020, 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 record-setting annual results please use this link:
MMX 2020 Results

 

Inclusion in the VanEck Vectors Junior Gold Miners ETF

 

Maverix is pleased to announce that it has been added to the VanEck Vectors Junior Gold Miners ETF as of the GDXJ’s first quarter rebalance completed on March 19, 2021.

 

2021 Outlook

 

The Company continues to expect the previously announced guidance of attributable GEOs to be between 27,000 to 30,0001 for 2021 at approximately a 90% cash margin1 with approximately 99% of expected revenue derived from gold and silver.

 

Asset Portfolio Updates

 

Cerro Blanco (1% NSR)

 

Bluestone Resources Inc. announced the findings of a preliminary economic assessment (“PEA”) that highlights an optimized project which doubles the gold resource ounces and production profile. The recent completion of advanced engineering and optimization work has significantly enhanced the understanding of the project and presented an opportunity to capitalize on its near-surface, high-grade mineralization through an open pit scenario. The PEA highlights an initial 11 year life of mine with production of approximately 2.4 million ounces of gold and 10.2 million ounces of silver. Total measured and indicated resources at Cerro Blanco now stand at 3.0 million ounces of gold and 13.2 million ounces of silver (61.5 million tonnes at 1.5 grams per tonne gold and 6.7 grams per tonne silver).

 

For more information, please refer to www.bluestoneresources.ca and see the news release dated February 28, 2021.

 

Silvertip (2.5% NSR)

 

Coeur Mining, Inc. significantly increased the size of its resource base at Silvertip following the execution of the largest and most successful exploration program in the history of the property. Silver, zinc and lead measured and indicated resources increased by approximately 50%, 45% and 50%, respectively. Similarly, silver, zinc and lead inferred resources grew by approximately 46%, 69% and 37%, respectively.

 

Coeur highlighted key outcomes of the internal pre-feasibility study for Silvertip during its virtual investor day in December 2020. Notably, Coeur developed a new flowsheet that would help support a potential 75% increase in throughput to 1,750 tonnes per day. Coeur is now progressing the project through a more comprehensive engineering and design phase for the revised flowsheet, while also continuing to build on the momentum of its exploration program. Coeur also plans to continue evaluating opportunities to accelerate certain non-mill related capital projects in 2021, including a new water treatment plant, to help mitigate construction risk should a restart of the project be approved during the second half of the year.

 

For more information, please refer to www.coeur.com and see the news release dated February 17, 2021.

 

1 Maverix has included certain performance measures in this news release that do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) including adjusted net income, total GEOs sold, average realized gold price per GEO, average cash cost per GEO, cash operating margin and cash flow from operating activities, excluding changes in non-cash working capital. Adjusted net income is calculated by excluding the effects of other income/expenses, impairment charges, gains/(losses) on sale or amendments of royalty and streams and unusual non-recurring items. The Company believes that adjusted net income is a useful measure of the Company’s performance because it adjusts for items which may not relate to or have a disproportionate effect on the period in which they are recognized, impact the comparability of our core operating results from period to period, are not always reflective of the underlying operating performance of our business and/or are not necessarily indicative of future operating results. The Company’s royalty revenue and silver sales are converted to a GEO basis by dividing the royalty revenue and silver sales for a period by the average gold price based on the LBMA Gold Price PM Fix per ounce for the same respective period. These GEOs when combined with the gold ounces sold from the Company’s gold streams equal total GEOs sold. Average realized gold price per GEO is calculated by dividing the total revenue by the GEOs sold. Average cash cost per GEO is calculated by dividing the total cost of sales, less depletion, by the GEOs sold. In the precious metals mining industry, these are common performance measures but do not have any standardized meaning. Cash operating margin is calculated by subtracting the average cash cost per GEO sold from the average realized gold price per GEO sold. The Company presents cash operating margin as it believes that certain investors use this information to evaluate the Company’s performance in comparison to other companies in the precious metal royalty and streaming sector who present results on a similar basis. The Company has also used the non-IFRS measure of operating cash flows excluding changes in non-cash working capital. This measure is calculated by adding back the decrease or subtracting the increase in changes in non-cash working capital to or from cash provided by (used in) operating activities. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS measures differently. The 2021 forecast herein assumes a gold price of $1,700 per ounce and a silver price of $21 per ounce. The forecast was derived using information that is available in the public domain as at the date hereof, which included guidance and estimates prepared and issued by management of the operators of the mining operations in which Maverix holds an interest. The forecast is sensitive to the performance and operating status of the underlying mines. None of the information has been independently verified by Maverix and may be subject to uncertainty. There can be no assurance that such information is complete or accurate. Maverix’s business, operations, financial condition and financial outlook could be materially adversely affected by the continued impact of the COVID-19 global health pandemic. At this time, Maverix cannot reasonably estimate the duration of any potential business disruptions, impact to underlying operations that Maverix holds an interest in or any related financial impact that is related to or caused by COVID-19.

 

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 100 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 March 23, 2021

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