NYSE AMERICAN: MTA
VANCOUVER, March 24, 2020 /CNW/ - Metalla Royalty &
Streaming Ltd. ("Metalla", "we" or the
"Company") (TSXV: MTA) (NYSE American: MTA) is providing an
update with respect to the unpredictable impacts and evolving news
related to the COVID-19 pandemic, and on the Company's cash
As disclosed by Pan American Silver Corp. ("Pan
American") by news release on March 23,
2020, operations at Pan American's COSE and Joaquin mines in
Argentina have been temporarily
suspended in order to comply with a mandatory national quarantine.
The government of Argentina imposed the quarantine in
response to the COVID-19 pandemic and stated that it will be in
effect until March 31, 2020.
The impact of these suspensions on mining production levels and
resulting cash flow to Metalla is difficult to predict. COSE and
Joaquin were both expected to be ramping up production in the first
half of 2020. While we expect near-term cash flow on
Metalla's royalties on these assets to be lighter than previously
anticipated, we believe the Company's balance sheet is more than
adequate to sustain any extended suspension at the COSE and Joaquin
While Metalla has not received any notification of closures at
any of the other mine sites on which we hold royalties, we believe
it is reasonable to expect that actions taken to reduce the spread
of the COVID-19 pandemic will affect global mining production
levels during 2020.
Metalla will continue to monitor the situation and update the
market if additional information is available.
Declared dividends will continue for April and May 2020 (as set out in the schedule in the
Company's news release dated February 20,
2020). Going forward, the board will continue to monitor the
impact of the COVID-19 pandemic and assess whether or not any
future dividend declarations will be made during this period of
disruption to global mining production. Declarations of dividends
will continue to be based on our dividend policy of paying out a
target rate of 50% of the operating cash flow.
Brett Heath, President and CEO
of Metalla commented, "The dividend policy is a central part of our
philosophy. As cash flow increases, so will the dividend, if cash
flow decreases temporarily, it will also have the same effect. We
believe Metalla has one of the most attractive development
pipelines with some of the strongest counterparties that will
continue to advance their operations even through volatile markets.
Although we can't predict the long-term impact of the COVID-19
situation, we believe Metalla is best positioned to add more
accretive transactions in the future to further diversify and grow
Metalla is a precious metals royalty and streaming company.
Metalla provides shareholders with leveraged precious metal
exposure through a diversified and growing portfolio of royalties
and streams. Our strong foundation of current and future
cash-generating asset base, combined with an experienced team gives
Metalla a path to become one of the leading gold and silver
companies for the next commodities cycle.
For further information, please visit our website at
ON BEHALF OF METALLA ROYALTY & STREAMING LTD.
(signed) "Brett Heath"
President and CEO
Neither the TSXV nor it's Regulation Services Provider (as
that term is defined in the policies of the Exchange) accept
responsibility for the adequacy or accuracy of this
Cautionary Note Regarding Forward-Looking
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
Canadian and U.S. securities legislation. The forward-looking
statements herein are made as of the date of this press release
only, and the Company does not assume any obligation to update or
revise them to reflect new information, estimates or opinions,
future events or results or otherwise, except as required by
Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "expects", "is
expected", "budgets", "scheduled", "estimates", "forecasts",
"predicts", "projects", "intends", "targets", "aims", "anticipates"
or "believes" or variations (including negative variations) of such
words and phrases or may be identified by statements to the effect
that certain actions "may", "could", "should", "would",
"might" or "will" be taken, occur or be achieved. Forward-looking
statements and information include, but are not limited to, the
expected timeframe for a mandatory quarantine in Argentina, the potential impact on cash flow,
the disruption of mining or development activities at other
properties on which the Company holds royalties or streams,
the potential for Metalla to become one of the leading precious
metal royalty and streaming companies. Forward-looking statements
and information are based on forecasts of future results, estimates
of amounts not yet determinable and assumptions that, while
believed by management to be reasonable, are inherently subject to
significant business, economic and competitive uncertainties, and
contingencies. Forward-looking statements and information are
subject to various known and unknown risks and uncertainties, many
of which are beyond the ability of Metalla to control or predict,
that may cause Metalla's actual results, performance or
achievements to be materially different from those expressed or
implied thereby, and are developed based on assumptions about such
risks, uncertainties and other factors set out herein, including
but not limited to: the potential impact of epidemics, pandemics or
other public health crises, including the current outbreak of the
novel coronavirus known as COVID-19 on Metalla's business,
operations and financial condition, the impact of general business
and economic conditions and other related risks and uncertainties
including other risks and uncertainties disclosed under the heading
"Risk Factors" in the Company's most recent annual information
form, annual report on Form 40-F and other documents filed with or
submitted to the Canadian securities regulatory authorities on the
SEDAR website at www.sedar.com and the U.S. Securities and Exchange
Commission on the EDGAR website at www.sec.gov. Metalla undertakes
no obligation to update forward-looking information except as
required by applicable law. Such forward-looking information
represents management's best judgment based on information
currently available. No forward-looking statement can be
guaranteed, and actual future results may vary materially.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements or information.
Readers are cautioned that forward-looking statements are not
guarantees of future performance. All of the forward-looking
statements made in this press release are qualified by these
SOURCE Metalla Royalty and Streaming Ltd.