VANCOUVER, BC, Nov. 13, 2020 /PRNewswire/ - Maverix Metals Inc.
("Maverix" or the "Company") (NYSE American: MMX) (TSX: MMX) is
pleased to announce its operating and financial results for the
third quarter ended September 30,
2020.
All amounts are in U.S. dollars unless otherwise indicated.
Third Quarter 2020 Highlights
- Record revenue of $14.9
million;
- Record cash flow from operating activities, excluding changes
in non-cash working capital, of $10.8
million1;
- Record total attributable gold equivalent ounces sold of
7,7971;
- Average cash cost per attributable gold equivalent ounce sold
of $195, resulting in a cash
operating margin of 90% or $1,710 per
ounce1;
- Record net income of $14.4
million and adjusted net income of $5.3 million1;
- Announced the acquisition of a portfolio of 11 gold royalties
from Newmont Corporation ("Newmont") for upfront consideration of
$75 million and potential future
contingent payments of up to a maximum of $15 million; and
- Repaid $41 million of the
outstanding balance on Maverix's revolving credit facility.
Dan O'Flaherty, CEO of Maverix,
commented, "Our stellar third quarter results once again
demonstrate the quality and diversification of our royalty and
stream portfolio. We are also excited to have recently completed
the accretive acquisition of a second royalty portfolio from our
largest shareholder, Newmont, which further enhances our
portfolio."
Summary of Quarterly Results
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Quarter
Ended
(in thousands of USD,
except for Attributable Gold Equivalent ounce and per share
amounts)
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September 30,
2020
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September 30,
2019
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Statement of
Income and Comprehensive Income
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Royalty
revenue
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$
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8,689
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$
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6,469
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Sales
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$
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6,162
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$
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4,085
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Total
revenue
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$
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14,851
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$
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10,554
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Cash flow from
operating activities
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$
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13,792
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$
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6,034
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Net income
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$
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14,437
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$
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1,803
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Basic earnings per
share
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$
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0.11
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$
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0.02
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Dividends declared
per share
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$
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0.01
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$
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0.00
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Non-IFRS and Other
Measures1
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Adjusted net
income
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$
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5,336
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$
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1,797
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Total Attributable
Gold Equivalent ounces sold
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7,797
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7,208
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Average realized gold
price per Total Attributable Gold Equivalent ounce sold
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$
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1,905
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$
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1,464
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Average cash cost per
Total Attributable Gold Equivalent ounce sold
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$
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195
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$
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169
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Cash flow from
operating activities, excluding changes in non-cash working
capital
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$
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10,841
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$
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7,655
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For complete details please refer to the Condensed Consolidated
Interim Financial Statements and associated Management Discussion
and Analysis for the quarter ended September
30, 2020, available on SEDAR (www.sedar.com), EDGAR
(www.sec.gov) or on Maverix's website (www.maverixmetals.com).
Maverix reestablishes guidance and now expects attributable gold
equivalent ounces of 26,000 to 27,000 for the year ending
December 31, 2020, with approximately
99% of expected revenue derived from gold and silver at a cash
operating margin of approximately 90%.
To listen to Maverix's President, Ryan
McIntyre, discuss the record-setting third quarter results
please use this link:
MMX Q3 2020 Results
Asset Portfolio Updates
Morondo (2% NSR Royalty)
On October 26th,
Montage Gold Corp. ("Montage") announced that, following the
successful completion of its C$30
million initial public offering in late October, it
commenced an aggressive 50,000 metre resource expansion drill
program at its Morondo project in Côte d'Ivoire. Montage expects to
release an updated inferred mineral resource and complete a PEA in
the first quarter of 2021.
For more information, please refer to www.montagegoldcorp.com
and see the news release dated October 26,
2020.
Mother Lode (1% – 2% NSR Royalty)
On October 7th, Corvus
Gold Inc. ("Corvus") announced the results of a Preliminary
Economic Assessment ("PEA") for its Mother Lode project in
southwest Nevada. The results
indicate robust economics at a gold price of $1,500 per ounce with pre-tax free cash flow of
$564 million and a post-tax net
present value of $303 million (using
a 5% discount rate) and an internal rate of return of 23%. The
Mother Lode project is modeled as a large, open-pit, with a
biological oxidation mill to treat the higher-grade sulphide
mineralization and a heap leach pad for treatment of oxide
mineralization capable of producing 171,000 ounces of gold per year
during its projected 8 year mine life.
For more information, please refer to www.corvusgold.com and see
the news release dated October 7,
2020.
Hasbrouck-Three Hills (1.25% NSR Royalty)
On November 5th, West
Vault Mining Inc. ("West Vault") announced receipt from the Bureau
of Land Management of a Decision Record and Finding of No
Significant Impact for the Hasbrouck mine, signifying the
completion of federal permitting, and the final major permitting
step to allow construction. The Hasbrouck mine is planned as phase
two of the Hasbrouck gold project, with phase 1 being the fully
permitted Three Hills mine. The
Hasbrouck gold project is one of only a few shovel-ready gold
projects in the southwest United
States.
For more information, please refer to www.westvaultmining.com
and see the news release dated November 5,
2020.
Moss (100% Silver Stream)
On October 7th,
Northern Vertex Mining Corp. ("Northern Vertex") announced record
production of 14,673 gold equivalent ounces at the Moss mine for
the quarter ended September 30, 2020.
Northern Vertex also announced, on October
15, 2020, that additional high-grade gold and silver drill
results have been received from its multi-phase resource expansion
program at the mine, specifically from the Ruth Vein and the
surrounding area. These positive drill results achieved from the
Ruth Vein and its proximity to the Moss Vein open pit makes it an
important target for further testing for the possibility of
additional resources, pit expansion and mine life extension.
For more information, please refer to www.northernvertex.com and
see the Northern Vertex news releases dated October 7, 2020 and October 15, 2020.
Beta Hunt (4.75% Royalty on Gold and 1.5% Royalty on
Nickel)
On September 8th and
10th, Karora Resources Inc. ("Karora") announced
discoveries of new high-grade gold and nickel mineralization at
Western Flanks. As a result of the recent exploration success,
Karora announced an increase of its 2020 exploration expenditures
to A$15 million at its consolidated
Western Australia assets.
Furthermore, on November
2nd, Karora announced the discovery of
approximately 2,000 ounces of coarse gold in the A Zone shear.
Karora expects to release an updated mineral reserve and resource
estimate during the fourth quarter of 2020.
For more information, please refer to www.karoraresources.com
and see the Karora news releases dated September 8, 2020, September 10, 2020, and November 2, 2020.
Dividend
The quarterly cash dividend of $0.01 per common share will be paid on or about
December 15, 2020, to shareholders of
record as of the close of business on November 30, 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 Maverix's Board of
Directors.
1 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
Attributable Gold Equivalent ounces sold, average realized gold
price per Attributable Gold Equivalent ounce sold, average cash
cost per Attributable Gold Equivalent ounce sold, 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 other income/expenses, impairment charges,
gains/(losses) on sale 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 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. Average realized gold price per
Attributable Gold Equivalent ounce sold is calculated by dividing
the total revenue by the Attributable Gold Equivalent ounces sold.
Average cash cost per Attributable Gold Equivalent ounce sold is
calculated by dividing the total cost of sales, less depletion, by
the Attributable Gold Equivalent ounces 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 Attributable
Gold Equivalent ounce sold from the average realized gold price per
Attributable Gold Equivalent ounce 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 are
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.
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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 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. Its shares trade on both the NYSE American
and the TSX under the ticker "MMX".
Cautionary statements to U.S. investors
The financial information included or incorporated by reference
in this press release or the documents referenced herein has been
prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards
Board, which differs from US generally accepted accounting
principles ("US GAAP") in certain material respects, and thus are
not directly comparable to financial statements prepared in
accordance with US GAAP.
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 US
securities laws. The terms "mineral resource", "measured mineral
resource", "indicated 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 on 11 December
2005. While the terms "mineral resource", "measured mineral
resource", "indicated mineral resource" and "inferred mineral
resource" are recognized and required by Canadian securities laws,
they are not recognized by SEC standards and normally are not
permitted to be used in reports filed with the SEC. Investors are
cautioned not to assume that all or any part of the disclosed
mineral resource estimates will ever be confirmed or converted into
reserves that meet the definitions used by the SEC.
Disclosure of contained ounces are or may be permitted disclosure
under regulations applicable to Maverix; however, the SEC normally
only permits issuers to report mineralization that does not
constitute "reserves" by SEC standards as in-place tonnage and
grade without reference to unit of production measures.
Accordingly, certain information contained in this press release or
in the documents incorporated by reference herein 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.
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 Maverix's financial
guidance, attributable gold equivalent ounce guidance, financial
outlook, the payment of Maverix's dividend, proposed plans for
acquiring additional stream and royalty interests and the potential
of such streams and royalty interests to provide returns, corporate
and operational updates at mines, properties, projects or mining
operations that Maverix holds an interest in and the completion of
expansion and or construction phases at the mines or properties
that Maverix holds an interest in. 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 23,
2020 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.