Maverix Metals Inc. (NYSE American: MMX) (TSX: MMX) is pleased to announce operating and financial results for the third quarter ended September 30, 2021.
Third Quarter 2021 Highlights
Subsequent to Quarter End Highlights
Dan O’Flaherty, CEO of Maverix, commented, “Maverix had another active quarter, highlighted by the acquisition of a gold stream from Auramet that immediately increased cash flow and attributable GEOs. Maverix now has 122 royalties and streams with a focus on gold and with a good balance between current cash generation and long-term optionality. Several of the assets in our portfolio disclosed positive developments during the quarter and we look forward to significant organic growth from the strong portfolio we have built. We are also pleased to increase our guidance to approximately 31,000 attributable GEOs1 for 2021, which would be another record year for Maverix.”
Summary of Quarterly Results
(in thousands of USD, except for GEOs and per share amounts)
|September 30, 2021||September 30, 2020|
|Statement of Income and Comprehensive Income|
|Cash flow from operating activities||$||9,278||$||13,792|
|Basic earnings per share||$||0.02||$||0.11|
|Diluted earnings per share||$||0.02||$||0.11|
|Dividends declared per share||$||0.0125||$||0.01|
|Non-IFRS and Other Measures1|
|Adjusted net income||$||4,709||$||5,336|
|Adjusted basic earnings per share||$||0.03||$||0.04|
|Average realized gold price per GEO||$||1,780||$||1,905|
|Average cash cost per GEO||$||164||$||195|
|Cash flow from operating activities, excluding changes in non-cash working capital||$||9,682||$||10,841|
For complete details please refer to the Condensed Consolidated Interim Financial Statements and associated Management Discussion and Analysis for the quarter ended September 30, 2021, 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 Q3 results please use this link: Maverix Q3 2021 Results
Increased 2021 Outlook
Maverix is pleased to report that it expects to exceed the upper end of its previously announced outlook of 27,000 to 30,000 attributable GEOs1, with a new forecast of approximately 31,000 attributable GEOs1 for 2021. This will mark the fifth consecutive year of record attributable GEOs for the Company.
Asset Portfolio Updates
Auramet Gold Stream
On September 27, 2021, the Company entered into an agreement with Auramet Capital Partners, L.P., an affiliate of Auramet International LLC, to acquire a gold stream and enter a long-term strategic partnership.
Maverix made a cash payment of $50 million to acquire a gold stream that will deliver 5,000 ounces of gold to Maverix per year. The gold stream shall be delivered quarterly and Maverix will make ongoing cash payments equal to 16% of the spot gold price for each gold ounce delivered. After a total of 50,000 ounces of gold have been delivered to the stream, Auramet shall have the option to terminate the stream for a cash payment of $5 million less certain cash flows related to the stream.
In addition to the gold stream, Maverix will be entitled to receive an amount in gold that is equivalent to all dividends distributed by Auramet on 2% of its shares outstanding, which is done semi-annually.
For more information, please refer to the Company’s website and see the news release dated September 27, 2021.
Omolon (2.5% GRR)
On October 18, 2021, the Company increased and expanded its royalty interest at the Omolon gold mine operated by Polymetal International plc (“Polymetal”). Maverix made a cash payment of $23.5 million to increase its effective interest to a 2.5% gross revenue royalty and expand the royalty coverage to include all 13 licenses that currently comprise the Omolon hub and potentially an additional three that are in the application phase. Prior to this transaction, Maverix’s 2% gross revenue royalty covered two licenses (Tsokol Kubaka and Birkachan). This transaction is expected to increase Omolon’s annual contribution to Maverix’s attributable gold equivalent ounces from approximately 2,000 ounces to approximately 5,000 ounces.
Upon sales of one million gold equivalent ounces at Omolon, post completion of the transaction, the effective interest will decrease from 2.5% to 2.0%, and upon sales of 1.2 million gold equivalent ounces, Maverix will make an additional $1.5 million cash payment.
For more information, please refer to the Company’s website and see the news release dated October 18, 2021.
Camino Rojo (2% NSR)
On November 15, 2021, Orla Mining Ltd. announced that construction of its Camino Rojo project was 96% complete as of October 31, 2021. Mining operations commenced during the third quarter, including drilling, blasting, and hauling of ore and waste. Leaching activities are expected to begin in mid-November 2021 with first gold production expected by late 2021.
For more information, please refer to orlamining.com and see the news release dated November 15, 2021.
Beta Hunt (4.75% Gold Royalty and 1.5% Nickel NSR)
On September 8, 2021, Karora Resources Inc. announced a major extension of the Larkin Zone at Beta Hunt to over 1,000 metres of strike. The initial phase of drilling at Larkin was completed in July 2021 and the maiden resource for the Larkin Zone will be included in Karora’s 2021 consolidated mineral resource update expected in early 2022.
For more information, please refer to karoraresources.com and see the news release dated September 8, 2021.
Mother Lode (1% – 2% NSR)
On September 13, 2021, Corvus Gold Inc. announced that it entered into a definitive agreement to be acquired by AngloGold Ashanti Limited at an implied equity value of approximately $450 million. The transaction consolidates a large land package in the Beatty district of Nevada, which includes AngloGold’s Silicon project and Corvus’ Mother Lode project. Further details on AngloGold’s integrated development plan for the Beatty district will be communicated during 2022.
For more information, please refer to corvusgold.com and see the news release dated September 13, 2021.
Hope Bay (1% NSR)
On November 2, 2021, Agnico Eagle Mines Limited (“Agnico Eagle”) provided an exploration update at Hope Bay. In 2021, Agnico Eagle is carrying out delineation, conversion and exploration drilling programs at the Hope Bay property using three rigs from underground and four rigs at surface. During the third quarter of 2021, 135 drill holes totaling 28,302 metres were completed at the Doris and Madrid deposits, and year to date a total of 71,453 metres have been completed compared to a budget of 69,600 metres. Based on drilling to date at Doris, Agnico Eagle believes there is good potential to extend the deposit along strike to the north and to add to the mineral resources at Doris beneath the diabase dike with continued drilling on the BTD Extension, BTD Connector/West Valley and BTD Central zones.
For more information, please refer to agnicoeagle.com and see the news release dated November 2, 2021.
Koné (2% NSR)
On August 19, 2021, Montage Gold Corp. announced an updated mineral resource at Koné including a maiden indicated mineral resource of 225 million tonnes at 0.59 grams per tonne gold containing 4.27 million ounces of gold and an inferred resource of 22 million tonnes at 0.45 g/t gold containing 0.32 million ounces of gold. The feasibility study is expected to be completed in Q1 2022.
For more information, please refer to montagegoldcorp.com and see the news release dated August 19, 2021 and the October 2021 corporate presentation.
Moss (100% Silver Stream)
On October 21, 2021, Elevation Gold Mining Corporation announced an updated mineral reserve and resource estimate including a 36% increase in measured and indicated resources. The updated proven and probable mineral reserves consist of 12.7 million tonnes with grades of 0.45 g/t gold and 5.4 g/t silver containing 184,500 ounces of gold and 2.2 million ounces of silver. Measured and indicated mineral resources of 38.8 million tonnes with grades of 0.39 g/t gold and 4.6 g/t silver, containing 490,200 ounces of gold and 5.75 million ounces of silver and inferred mineral resources of 6.6 million tonnes with grades of 0.35 g/t gold and 4.5 g/t silver containing 73,800 ounces of gold and 940,000 ounces of silver.
For more information, please refer to elevationgold.com and see the news release dated October 21, 2021.
The quarterly cash dividend of $0.0125 per common share will be paid on or about December 15, 2021 to shareholders of record as of the close of business on November 30, 2021.
This 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.
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.
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.
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We acknowledge the [financial] support of the Government of Canada.