All amounts are in U.S. dollars unless otherwise
indicated
VANCOUVER, BC, May 13, 2022
/CNW/ - Maverix Metals Inc. ("Maverix" or the "Company") (NYSE
American: MMX) & (TSX: MMX) is pleased to announce operating
and financial results for the first quarter ended March 31, 2022.
First Quarter 2022
Highlights
- Revenue of $14.7 million;
- Gold equivalent ounces ("GEOs") sold of 7,7381;
- Cash flow from operating activities of $8.0 million;
- Cash flow from operating activities, excluding changes in
non-cash working capital, of $10.5
million1;
- Average cash cost per GEO of $190, resulting in a cash operating margin of 90%
or $1,704 per ounce1;
- Net income of $3.5 million, or
$0.02 per share;
- Adjusted net income of $5.7
million1, or $0.04
per share; and
- Acquired a package of three gold royalties on Nevada properties owned by Gold Standard
Ventures Corp. ("Gold Standard").
Dan O'Flaherty, CEO of Maverix,
commented, "Maverix had a productive start to 2022 with the
acquisition of a strategic package of three gold royalties in
Nevada. We are also excited about
the continued organic growth within our portfolio as several of our
royalty counterparties announced positive operational updates,
including the Camino Rojo mine achieving commercial production
shortly after the quarter ended. Consistent with our strategy for
growth and value creation, we remain focused on evaluating new
opportunities to add to and complement our robust organic
growth."
Summary of Quarterly Results
Quarter
Ended
(in thousands of USD,
except for GEOs and per share amounts)
|
|
March 31,
2022
|
|
|
March 31,
2021
|
|
|
|
|
|
|
Statement of Income
and Comprehensive Income
|
|
|
|
|
|
Royalty
revenue
|
$
|
6,866
|
|
$
|
6,883
|
Sales
|
$
|
7,788
|
|
$
|
6,197
|
Total
revenue
|
$
|
14,654
|
|
$
|
13,080
|
Cash flow from
operating activities
|
$
|
8,019
|
|
$
|
13,479
|
Net income
|
$
|
3,523
|
|
$
|
14,769
|
Basic earnings per
share
|
$
|
0.02
|
|
$
|
0.10
|
Diluted earnings per
share
|
$
|
0.02
|
|
$
|
0.10
|
Dividends declared per
share
|
$
|
0.0125
|
|
$
|
0.01
|
|
|
|
|
|
|
Non-IFRS and Other
Measures1
|
|
|
|
|
|
Adjusted net
income
|
$
|
5,661
|
|
$
|
4,959
|
Adjusted basic earnings
per share
|
$
|
0.04
|
|
$
|
0.04
|
GEOs sold
|
|
7,738
|
|
|
7,302
|
Average realized gold
price per GEO
|
$
|
1,894
|
|
$
|
1,791
|
Average cash cost per
GEO
|
$
|
190
|
|
$
|
223
|
Cash flow from
operating activities, excluding changes in non-cash working
capital
|
$
|
10,549
|
|
$
|
8,998
|
For complete details please refer to the unaudited condensed
interim consolidated financial statements and associated Management
Discussion and Analysis for the three months ended March 31, 2022, 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 first quarter results please use this
link: MMX Q1 2022 Results
2022 Outlook
Maverix is on track to achieve its previously announced guidance
of 32,000 to 35,000 attributable GEOs1 for 2022 at
approximately a 90% cash margin with approximately 99% of expected
revenue derived from gold and silver. Similar to 2021, the Company
expects attributable GEOs to increase in the second half of the
fiscal year.
Asset Portfolio Updates
Camino Rojo (2% NSR)
Orla Mining Ltd. ("Orla") declared commercial production at its
Camino Rojo oxide mine effective April 1,
2022, after a successful commissioning period which included
the ramp up of mining and processing to sustained throughput
levels. All major construction activities have now been completed
and Camino Rojo has demonstrated its ability to sustain ongoing
production levels. Record monthly processing throughput was
achieved at Camino Rojo in March
2022. The average daily stacking throughput for the month
was 17,444 tonnes per day ("tpd") or 97% of nameplate capacity of
18,000 tpd. Achieving nameplate capacity is expected during the
second quarter of 2022. Orla will continue to seek opportunities to
improve and optimize the throughput and availabilities to achieve
and ultimately exceed design nameplate capacities.
For more information, please refer to orlamining.com and see the
news releases dated April 6, 2022 and
March 31, 2022.
Beta Hunt (4.75% Gold Royalty and
1.5% Nickel Royalty)
On April 7, 2022, Karora Resources
Inc. ("Karora") announced an updated consolidated gold mineral
resource highlighted by the maiden gold resource for the Larkin
Zone at the Beta Hunt mine. Beta Hunt gold measured and indicated
mineral resources increased by 7% to 1.12 million ounces and the
gold inferred mineral resource increased by 46% to 786,000 ounces.
Significant Beta Hunt additions include the maiden Larkin Zone
mineral resource comprising gold measured and indicated resources
of 1.44 million tonnes at 2.6 grams per tonne ("g/t") for 119,000
ounces and a gold inferred resource of 2.17 million tonnes at 2.3
g/t for 162,000 ounces. The Larkin Zone has been delineated to a
strike length of over 1,000 metres and a depth of 150 metres and
remains open along strike and at depth providing significant
potential for further expansion as the drill program at Beta Hunt
continues. Targeted drilling at Beta Hunt continues to grow the
gold mineral resource inventory in support of Karora's growth plan
which is underpinned by an expansion to 2.0 million tonnes per
annum production from Beta Hunt by 2024.
For more information, please refer to karoraresources.com and
see the news release dated April 7,
2022.
Mt Carlton (2.5% NSR)
On April 22, 2022, Navarre
Minerals Limited ("Navarre") announced high-grade gold, silver and
copper drilling intercepts at its Mt Carlton United deposit
("MCU"), part of the recently acquired Mt Carlton Operation ("Mt
Carlton"). With drill intercepts of up to 22.9 g/t gold, 1,327 g/t
silver and 4.2% copper, the results confirm the outstanding grade
and continuity of the mineral inventory at MCU, approximately four
kilometres southwest of the Mt Carlton processing facility. While
drilling continues in 2022 as part of an ongoing exploration
program, Navarre anticipates the drilling results released to date
will be incorporated into an updated resource estimate for MCU
which is expected to be published in September 2022, along with updated mineral
resources for other Mt Carlton deposits such as V2, Telstra Hill
and Crush Creek.
For more information, please refer to navarre.com.au and see the
news release dated April 22,
2022.
Omolon (2.5% GRR)
On April 25, 2022 Polymetal
International plc ("Polymetal") announced it continues to operate
safely and profitably and is fully focused on ensuring business
continuity and long-term viability. Polymetal also reconfirmed its
fiscal 2022 production guidance. Sanctions announced in the period
between March 9, 2022 and
April 25, 2022 did not have a
material impact on the business of Polymetal and it complies
rigorously with all relevant legislation and is implementing
comprehensive measures to observe all applicable international
sanctions. The scope and impact of any new potential sanctions (and
any countersanctions) are yet unknown, however they might further
affect key Russian financial institutions as well as mining
companies, including Polymetal. Maverix understands that
contingency planning has been initiated by Polymetal proactively to
maintain business continuity in the event of adverse developments,
but no assurances can be made in this regard. The conflict between
Russia and Ukraine and any restrictive actions that have
or may be taken in response thereto, such as sanctions, export and
or currency controls, could have negative impacts on Polymetal's
ability to continue operation of the Omolon hub and Polymetal's
ability to make payments to the Company.
For more information, please refer to polymetalinternational.com
and see the news releases dated April 25,
2022 and March 30, 2022.
Karma (2% NSR)
On March 11, 2022, Endeavour
Mining plc ("Endeavour") announced that it had closed the sale of
its 90% interest in its Karma mine to Néré Mining. A key
consideration of the sales process was the selection of a party
that will maintain Endeavour's
trusted partnerships in Burkina
Faso, by committing to operate the mine in the best
interests of employees and stakeholders. Néré Mining is a
Burkina Faso based consortium led
by a board member of both Karma and a subsidiary of Endeavour that holds the mining license for
the Endeavour Group's Mana mine.
For more information, please refer to endeavourmining.com and
see the news release dated March 11,
2022.
Gemfield (5% NSR)
On February 28, 2022, Centerra
Gold Inc. ("Centerra") announced it completed the acquisition of
the Goldfield District project
("Goldfield") for $206.5 million.
Goldfield is a conventional
open-pit, heap leach project located in Esmeralda County, Nevada. Goldfield is comprised of three known deposits
including the Gemfield, Goldfield Main, and McMahon deposits. The Gemfield deposit is
fully permitted and shovel ready and was identified by Centerra as
the first pit for potential development. In 2019, Waterton Global
Resource Management, Inc. announced it was completing a feasibility
study for the project with project average annual production in
excess of 125,000 ounces of gold. Centerra expects to release an
updated resource estimate in the first half of 2023 and an updated
feasibility study thereafter.
For more information, please refer to centerragold.com and see
the news releases dated February 28,
2022 and February 22,
2022.
Koné (2% NSR)
On February 14, 2022, Montage Gold
Corp. ("Montage") announced the results of a definitive feasibility
study ("DFS") for the Koné gold project in Côte d'Ivoire including
an after-tax net present value of $746
million and an internal rate of return of 35% at a
$1,600 per ounce gold price. The DFS
outlined a 14.8 year mine life with average annual gold production
of 257,000 ounces in the first nine years and an average of 207,000
ounces over its mine life. The permitting process at Koné is well
underway with all requisite approvals expected in the third quarter
of 2022 and an advisor has been appointed to assist Montage in the
raising of project finance for the development of the project.
For more information, please refer to montagegoldcorp.com and
see the news releases dated March 9,
2022 and February 14,
2022.
Cerro
Blanco (1% NSR)
On February 22, 2022, Bluestone
Resources Inc. ("Bluestone") announced the results of a feasibility
study on its flagship Cerro Blanco
project in Guatemala. The
feasibility study outlined a robust, high-grade operation with
average annual production of 241,000 ounces of gold over the first
10 years of operation and an initial mine life of 14 years with
additional opportunities to extend the mine life given the
extensive exploration potential of the land package. Bluestone
recently submitted the environmental permit amendment application
for the change in mining method and based on current estimates
Bluestone believes it will be possible to receive approval of the
permit amendment in Q3 2022, followed by a construction license and
a forestry license.
For more information, please refer to bluestoneresources.ca and
see the news release dated February 22,
2022.
South Railroad (2% NSR)
On February 23, 2022, Gold
Standard announced the results of a robust feasibility study on its
South Railroad project in Elko,
Nevada. The feasibility study outlines a 10.5 year mine life
with total gold production of over one million ounces and average
gold production of 152,000 ounces over the first four years. Gold
Standard intends to launch the construction financing process this
quarter and anticipates concluding it before the end of the year.
Construction of the South Railroad project could commence as early
as the second quarter of 2023, with first gold production in the
third quarter of 2024.
For more information, please refer to goldstandardv.com and see
the news release dated February 23,
2022.
DeLamar (2.5% NSR)
On April 21, 2022, Integra
Resources Corp. announced a simplified strategy to advance the heap
leach stage of the project into permitting and development on a
standalone basis. Permitting work at DeLamar has been initiated and
baseline study work is well underway to support the submittal of a
Plan of Operations in H1 2023. Advancing the DeLamar gold-silver
project towards permitting and development of the heap leach stage
as a standalone mining operation is a lower cost, lower risk
option, creating strong economic returns and rapid payback.
Non-oxide milling expansion will continue to be optimized through
further study work and could be pursued under the right market
conditions.
For more information, please refer to integraresources.com and
see the news release dated April 21,
2022.
Silvertip (2.5% NSR)
On April 28, 2022, Coeur Mining,
Inc. ("Coeur") announced a new discovery at the Silvertip mine that
indicates significant potential to grow the mineral resources of
the mine immediately west of existing infrastructure. Surface and
underground drilling led to the discovery of a new high-grade
chimney west of the Camp Creek resource located at a shallower
depth, called Camp Creek West. The first full drill holes into the
zone returned the highest grade-thickness assays at Silvertip to
date. For the remainder of 2022, Coeur expects to continue infill
drilling in the Southern Silver and Central zones from underground.
An additional surface core rig is expected to be added following
the snow melt to perform expansion drilling at Camp Creek West.
For more information, please refer to coeur.com and see the news
release dated April 28, 2022.
McCoy-Cove (1.5% + 2.0%
NSR)
On March 7, 2022, i-80 Gold Corp.
announced that the underground, advanced-exploration, program at
the McCoy-Cove project had commenced. Construction of the decline
is now underway and the Phase 1 program will include construction
of an initial level with multiple drill bays to provide access for
upgrading resources. Approximately 40,000 metres of underground
definition and expansion drilling is anticipated to commence in H2
2022 followed by a feasibility study anticipated to be completed in
2023. The Cove deposit represents one of North America's highest grade gold deposits
with grades in excess of 10 g/t gold. The deposit remains open for
expansion down-dip.
For more information, please refer to i80gold.com and see the
news release dated March 7, 2022.
Dividend
The Company is pleased to announce that its Board of Directors
has approved the payment of the quarterly cash dividend of
$0.0125 per common share. The
dividend will be paid on or about June 15,
2022, to shareholders of record as of the close of business
on May 31, 2022.
The 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.
Social Responsibility
Further to the Company's development of environmental, social
and governance initiatives, as overseen by the Company's
Nominating, Governance and Sustainability Committee, and to foster
sound corporate social responsibility in its operations, the
Company recently made a donation to the Canadian Red
Cross.
1
|
Please refer to the
Non-IFRS Measures section at the end of this press
release.
|
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 120 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 under the symbol "MMX".
For further information, please visit our website at
www.maverixmetals.com.
Cautionary statements to U.S.
investors
Information contained or referenced in this press release or in
the documents referenced herein concerning the properties,
technical information and operations of Maverix has been prepared
in accordance with requirements and standards under Canadian
securities laws, which differ from the requirements of the U.S.
Securities and Exchange Commission ("SEC") under subpart 1300 of
Regulation S-K ("S-K 1300"). The terms "mineral resource" and
"inferred mineral resource" used in this press release or in the
documents incorporated by reference herein are mining terms as
defined in accordance with NI 43-101 under guidelines set out in
the Definition Standards for Mineral Resources and Mineral Reserves
adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum Council. While the terms are substantially similar to the
same terms defined under S-K 1300 there are differences in the
definitions. Accordingly, there is no assurance any mineral
resources that the Company may report under NI 43-101 will be the
same as resource estimates prepared under the standards adopted
under S-K 1300. Because the Company is eligible for the
Multijurisdictional Disclosure System adopted by the SEC and
Canadian Securities Administrators, the Company is not required to
present disclosure regarding its mineral properties in compliance
with S-K 1300. Accordingly, certain information contained in this
press release concerning descriptions of mineralization and mineral
resources under these standards may not be comparable to similar
information made public by US companies subject to reporting and
disclosure requirements of the SEC.
Non-IRFS Measures
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 the non-cash cost of sales related to the prepaid gold
interests, non-cash change in fair value of the prepaid gold
interests, 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 and prepaid gold interests
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 less non-cash cost of sales of the prepaid
gold interests, 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 2022 forecast herein assumes a
gold price of $1,750 per ounce and a
silver price of $21.00 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.
Cautionary note regarding
forward-looking statements
This release contains certain "forward looking statements" and
certain "forward-looking information" as defined under applicable
Canadian and U.S. securities laws. Forward-looking statements and
information can generally be identified by the use of
forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology. The forward-looking
information contained herein is provided for the purpose of
assisting readers in understanding management's current
expectations and plans relating to the future. Readers are
cautioned that such information may not be appropriate for other
purposes. Forward-looking statements and information include, but
are not limited to, statements with respect to the Company's annual
guidance and or organic growth in respect of its portfolio of
assets, developments in respect of Maverix's portfolio of royalties
and streams and those developments at certain of the mines,
projects or properties that underlie the Company's interests.
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
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual actions, events or
results to be materially different from those expressed or implied
by such forward-looking information, including but not limited to:
the impact of general business and economic conditions; the absence
of control over mining operations from which Maverix will purchase
gold and other metals or from which it will receive royalty
payments and risks related to those mining operations, including
risks related to international operations, government and
environmental regulation, delays in mine construction and
operations, actual results of mining and current exploration
activities, conclusions of economic evaluations and changes in
project parameters as plans continue to be refined; accidents,
equipment breakdowns, title matters, labor disputes or other
unanticipated difficulties or interruptions in operations; problems
inherent to the marketability of gold and other metals; the
inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses; industry conditions,
including fluctuations in the price of the primary commodities
mined at such operations, fluctuations in foreign exchange rates
and fluctuations in interest rates; government entities
interpreting existing tax legislation or enacting new tax
legislation in a way which adversely affects Maverix; stock market
volatility; regulatory restrictions; liability, competition, the
potential impact of epidemics, pandemics or other public health
crises, including the current outbreak of the novel coronavirus
known as COVID-19 on Maverix's business, operations and financial
condition, loss of key employees, as well as those risk factors
discussed in the section entitled "Risk Factors" in Maverix's
annual information form dated March 16,
2022, available at www.sedar.com. Maverix has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers are advised not to place
undue reliance on forward-looking statements or information.
Maverix 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.
Technical and third-party
information
The disclosure herein and relating to properties and operations
on the properties in which Maverix holds royalty, stream or other
interests is based on information publicly disclosed by the owners
or operators of these properties and information/data available in
the public domain as at the date hereof, and none of this
information has been independently verified by Maverix.
Specifically, as a royalty or stream holder, Maverix has limited,
if any, access to properties included in its asset portfolio.
Additionally, Maverix may from time to time receive operating
information from the owners and operators of the properties, which
it is not permitted to disclose to the public. Maverix is dependent
on, (i) the operators of the properties and their qualified persons
to provide information to Maverix, or (ii) on publicly available
information to prepare disclosure pertaining to properties and
operations on the properties on which Maverix holds royalty, stream
or other interests, and generally has limited or no ability to
independently verify such information. Although Maverix does not
have any knowledge that such information may not be accurate, there
can be no assurance that such third-party information is complete
or accurate. Some information publicly reported by operators may
relate to a larger property than the area covered by Maverix's
royalty, stream or other interest. Maverix's royalty, stream or
other interests often cover less than 100% and sometimes only a
portion of the publicly reported mineral reserves, mineral
resources, and production of a property.
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SOURCE Maverix Metals Inc.