Maverix Metals Inc. (NYSE American: MMX) (TSX: MMX) is pleased to announce its operating and financial results for the second quarter ended June 30, 2020.

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

Second Quarter 2020 Highlights

• Record revenue of $11.0 million;
• Record cash flow from operating activities, excluding changes in non-cash working capital, of $8.5 million¹;
• Attributable gold equivalent ounces sold of 6,412¹;
• Average cash cost per attributable gold equivalent ounce sold of $139, resulting in cash operating margins of $1,572 per ounce¹;
• Record net income of $3.1 million; and
• Received $15.6 million in cash proceeds from the Pan American Silver warrant exercise.

Dan O’Flaherty, CEO of Maverix, commented, “Maverix had a strong quarter with record revenue of $11.0 million, a significant increase of 57% compared to Q2 2019, demonstrating the strength and diversity of our asset portfolio despite some of our assets being affected by the impacts of the COVID-19 pandemic. With the rising gold price environment, we are looking forward to the results for the second half of the year and we continue to pursue opportunities to grow our portfolio and increase shareholder value.”

Summary of Quarterly Results

For complete details please refer to the Condensed Consolidated Interim Financial Statements and associated Management Discussion and Analysis for the quarter ended June 30, 2020, available on SEDAR (www.sedar.com), EDGAR (www.sec.gov) or on the Company’s website (www.maverixmetals.com).

To listen to Maverix’s President, Ryan McIntyre, discuss the Company’s strong second quarter results please use this link: MMX Q2 Results

Dividend

The quarterly cash dividend of US$0.01 per common share will be paid on or about September 15, 2020, to shareholders of record as of the close of business on August 31, 2020.

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 the Company’s Board of Directors.

Asset Portfolio Updates

Moss (100% Silver Stream)

On August 6^th, Northern Vertex Mining Inc. announced record monthly production in July of 4,713 gold equivalent ounces, including 37,171 silver ounces, the fourth consecutive monthly production increase at the Moss mine located in Arizona. Production at the mine continues uninterrupted with crusher and heap leach operation continuing to exceed expectations with numerous daily production records. In addition, throughput continues well above nameplate capacity. A 60,000 foot multi-phase drill program is currently underway to identify high-grade ounces near the current pit and expand the resource on strike from the Moss pit.

On August 12^th, Northern Vertex announced initial results from the multi-phase drilling and resource expansion program. Drilling has successfully intercepted high-grade gold and widespread district scale mineralization within a 2 kilometre radius of mining operations, including high-grade intercepts of 15.2 metres of 9.1 grams per tonne (“g/t”) gold and 86.0 g/t silver and 1.5 metres of 69.3 g/t gold and 716 g/t silver at the Ruth Vein adjacent to the current pit.

For more information, please refer to www.northernvertex.com and see the Northern Vertex news release dated August 6, 2020 titled “Northern Vertex Reports Record Monthly Production of 4,713 Gold Equivalent Ounces” and news release dated August 12, 2020 titled “Northern Vertex Intercepts High Grade Mineralization of 21.8 GPT Gold & 211.48 GPT Silver Over 6.1 Meters, Including 69.3 GPT (2.02 OZ) Gold & 716 GPT Silver Over 1.5 Meters at Moss Mine, Arizona”.

Florida Canyon (3% NSR Royalty)

On July 1^st, Argonaut Gold Inc. completed the acquisition of the Florida Canyon mine located in Nevada through its previously announced business combination with Alio Gold Inc. On July 3^rd, Argonaut announced an updated life of mine plan for Florida Canyon which outlined a 9.5 year mine life producing an average of 77,000 ounces of gold per annum.

For more information, please refer to www.argonautgold.com and see the Argonaut Gold news release dated July 1, 2020 titled “Argonaut Gold and Alio Gold Complete Merger to Create North American Diversified Intermediate Gold Producer” and the news release dated July 3, 2020 titled “Argonaut Gold announces Updated Life of Mine Plan for Florida Canyon, Which Generates Approximately $326 Million of Mine Site After-Tax Free Cash Flow at $1,700 Gold”.

Nueva Esperanza (2% – 3% NSR Royalty)

On July 14^th, Kingsgate Consolidated Limited announced that it had been granted an Environmental Impact Assessment (“RCA-64/20”) approval for the Nueva Esperanza gold and silver project in the Atacama region in Northern Chile. The RCA 64/20, combined with the existing water permit, effectively allows the pre-development, construction and operation of the project. In light of the continuing strong rises in gold and silver prices, Kingsgate reported that there has been renewed interest in the project from a number of parties and Kingsgate is currently considering its options in this regard.

For more information, please refer to www.kingsgate.com.au and see the Kingsgate news release dated July 14, 2020 titled “Environmental Impact Assessment (EIA) Approved Nueva Esperanza Project, Chile”.

Monument Bay (1.5% NSR Royalty)

On July 23^rd, Yamana Gold Inc. announced the Monument Bay project, located in Manitoba, is advancing with internal technical and economic assessments considering the project as an underground mine rather than an open pit mine. While resources would be reduced from current levels, this would be an economically attractive alternative with lower required capital investment, a reduced environmental footprint and significant exploration potential for increases in mineral resources down plunge and in satellite surface areas. A new high-grade geological model is being evaluated while several well-defined high-grade zones along a 4 kilometre strike length of the deposit have been identified. An expansion drill program on these targets is planned to begin this year and extend into next year.

For more information, please refer to www.yamana.com and see the Yamana news release dated July 23, 2020 titled “Yamana Gold Reports Second Quarter 2020 Financial Results; Strong Cash Flow Generation; a Further Reduction of $101 Million in Net Debt; Jacobina Phase 1 Expansion Complete; Increasing Dividend by a Further 12% to $0.07 Per Share”.

COVID-19 Update

The Company continues to monitor and assess the potential impacts of COVID-19 on its employees and business. At this time, employees continue to work remotely and there are no known cases of COVID-19. The Company continues to closely monitor the impact of the COVID-19 pandemic on its portfolio of assets. 

The evolving and unpredictable impacts of the COVID-19 pandemic resulted in the Company prudently withdrawing its 2020 attributable gold equivalent ounce guidance on March 24, 2020. Maverix will continue to monitor the situation closely and update the market as additional information becomes available.

Appointment of New Vice President, Technical Services

Maverix is pleased to announce that Mr. Brendan Pidcock, P.Eng., has been promoted to the role Vice President of Technical Services at Maverix effective September 1^st, 2020. Mr. Pidcock has over 25 years of experience in mining spread over multiple jurisdictions and commodities. 

Mr. Pidcock will be succeeding Mr. Doug Ward, who will be retiring from Maverix at the end of August.

“The entire Maverix team would like to thank Doug for his excellent contributions to the growth of Maverix”, commented Geoff Burns, Chairman of Maverix. “His technical expertise and industry knowledge were invaluable in the formation and development of the Company over its first 4 years of operations. Doug played an integral role in forming Maverix and was instrumental in many of the Company’s transactions over the past 4 years. We wish Doug all the best in his future endeavours and look forward to continue building on the strong asset base he has helped establish at Maverix”.

“I want to thank Geoff and Dan for bringing me in and trusting me with this opportunity from day one. Maverix has since assembled an excellent and diversified cash flowing portfolio, with solid growth prospects”, commented Doug Ward. “Again, I can’t thank Maverix enough for the opportunity to work with such a great team.”

Qualified Person

Doug Ward, B.Sc., Mining Engineering, MMSA, 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 press 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.