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Maverix Metals Announces Record Revenue and Gold Equivalent Ounces for the Third Quarter 2019
Maverix Metals Inc. (NYSE American: MMX) (TSX: MMX) is pleased to announce its operating and financial results for the third quarter ended September 30, 2019.
All dollar amounts are in Canadian dollars unless otherwise indicated.
Third Quarter 2019 Highlights
- Record quarterly revenue of $14.0 million;
- Record cash flow from operating activities, excluding changes in non-cash working capital of $10.2 million1,
- Record net income of $2.4 million;
- Record attributable gold equivalent ounces produced2 of 7,162 ounces and record attributable gold equivalent ounces1 sold of 7,208 ounces;
- Average cash cost per attributable gold equivalent ounce sold of $223, resulting in cash operating margins of $1,715 per ounce1;
- Acquired an additional 1.5% net smelter return royalty on TMAC Resources’ Hope Bay mine in Nunavut, Canada; and
- Amended and increased revolving credit facility to US$120 million.
“Maverix had an excellent third quarter, posting new quarterly records for attributable gold equivalent ounces, total revenue, and net income” commented Dan O’Flaherty, President and CEO of Maverix. “We are well positioned to meet our annual guidance and look forward to continuing to build around and grow the cash generating portfolio we have established.”
2019 Outlook
Maverix expects to meet or potentially exceed its previously announced guidance of attributable gold equivalent ounces of between 22,500 and 24,500 ounces1 for 2019.
Summary of Quarterly Results
| Quarter Ended
(in thousands, except for Attributable Gold Equivalent ounce and per share amounts) |
September 30, 2019 | September 30, 2018 | ||
| Statement of Income and Comprehensive Income | ||||
| Sales | $ | 5,412 | $ | 1,921 |
| Royalty revenue | $ | 8,560 | $ | 7,882 |
| Total revenue | $ | 13,972 | $ | 9,803 |
| Cash flow from operating activities | $ | 8,000 | $ | 4,808 |
| Net income (loss) | $ | 2,389 | $ | 819 |
| Basic earnings (loss) per share | $ | 0.02 | $ | 0.00 |
| Non-IFRS and Other Measures1 | ||||
| Total Attributable Gold Equivalent ounces produced2 | 7,162 | 6,643 | ||
| Total Attributable Gold Equivalent ounces sold | 7,208 | 6,195 | ||
| Average realized gold price per Total Attributable Gold Equivalent ounce sold | $ | 1,938 | $ | 1,582 |
| Average cash cost per Total Attributable Gold Equivalent ounce sold | $ | 223 | $ | 167 |
| Cash flow from operating activities, excluding changes in non-cash working capital | $ | 10,158 | $ | 6,698 |
For complete details please refer to the Financial Statements and associated Management Discussion and Analysis for the quarter ended September 30, 2019, available on SEDAR (www.sedar.com), EDGAR (www.sec.gov) or on the Company’s website (www.maverixmetals.com).
| 1 Maverix has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS) including average cash cost per attributable gold equivalent ounce and cash operating margin. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. Average cash cost per attributable gold equivalent ounce is calculated by dividing the total cost of sales, less depletion, by the ounces sold. In the precious metals mining industry, this is a common performance measure but does not have any standardized meaning. Cash operating margin is calculated by subtracting the average cash cost per ounce from the average realized selling price per ounce of gold. 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’s royalty revenue and silver sales are converted to an Attributable Gold Equivalent ounce 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 attributable gold equivalent ounces when combined with the gold ounces sold from the Company’s gold streams (individually and collectively referred to as “Attributable Gold Equivalent”) equal total Attributable Gold Equivalent ounces sold. 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 this non-IFRS measure 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. Note these figures have not been audited and are subject to change. |
| 2 Represents the Company’s entitlements under its royalty and stream agreements to the gold equivalent ounces of silver and gold contained in concentrate or doré prior to smelting or refining deductions. Silver production is converted to an attributable gold equivalent ounce produced basis by multiplying the attributable silver production at the underlying operation by the LBMA Silver Price for the same respective period and then dividing by the average gold price based on the LBMA Gold Price PM Fix per ounce for the same respective period. Production figures are based on information provided by the operators of the mining operations to which the silver and gold interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. Ounces produced exclude silver ounces to be delivered under the minimum required ratio of silver to actual gold production from the Company’s Moss silver Stream. |
About Maverix
Maverix is a gold royalty and streaming company. Maverix’s mission is to provide its shareholders with significant low risk leverage to precious metal prices and to increase underlying per share value by continuing to grow its portfolio with acquisitions of high-quality royalties and streams that offer robust returns.
Posted November 12, 2019
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