Vancouver, Canada: Metalla Royalty & Streaming Ltd. ("Metalla" or the "Company") (TSXV: MTA)
(NYSE American: MTA) announces its operating and financial results for the three and six months ended June 30, 2022. For complete details of the condensed interim consolidated financial statements and accompanying management's discussion and analysis for the three and six months ended June 30, 2022, please see the Company's filings on SEDAR (www.sedar.com) or EDGAR (www.sec.gov). Shareholders are encouraged to visit the Company's website at www.metallaroyalty.com.
Brett Heath, President, and CEO of Metalla, commented, "In the second quarter of 2022, we saw several significant advancements and milestones achieved within our royalty portfolio. G Mining's Tocantinzinho project secured a $481M financing package, expected to reach production in the second half of 2024. Wasamac's production profile was increased to 250k oz Au per year by Yamana Gold, making it an expected top 10 gold producer in Canada. We also saw discoveries made at Moneta's Garrison project and Canadian Malartic's Camflo property that look to provide even more potential upside. We are pleased to see our assets continue to advance and benefit from our strong counterparties at a time when equity and debt markets remain constrained."
During the six months ended June 30, 2022, and the subsequent period up to the date of this news release, the Company:
Noted the following key milestones announced by operators of certain properties in its portfolio of royalties and streams (please see the 'Asset Updates' section of this press release for the details of these announcements):
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Monarch Mining Corporation ("Monarch") announced that new production has started at the Beaufor Mine (1.0% Net Smelter Returns ("NSR") royalty) to bring the total number of producing assets in which the Company has an interest to six, with the first royalty payment from Beaufor expected in the second half of 2022;
G Mining Ventures Corp. ("G Mining") announced a $481 million financing package to fully fund the construction of the Tocantinzinho ("TZ") Gold Project (0.75% Gross
Value Return ("GVR") royalty), targeting production for the second half of 2024;
Yamana Gold Inc. ("Yamana") announced its second increase in the projected annual output from its Wasamac Mine (1.5% NSR royalty) since acquiring the project in 2021. Originally slated to produce 169 Koz annually when acquired by Yamana, the projected output has subsequently been raised to 250 Koz annually until at least 2030 and over 200 Koz annually over the initial 15 years. Bulk sample permit approvals are expected in early 2023 and ramp development could begin in spring 2023;
Moneta Gold Inc. ("Moneta") announced a new discovery at the Garrison project (2.0% NSR royalty), where drilling to the west of the Garrcon Starter pit hit 50.09 g/t gold over 5.05 meters, highlighting the continued potential to significantly expand the Garrcon resource base and support an underground operation at the mine. Moneta expects to release an updated Preliminary Economic Assessment in the second half of 2022; and
Yamana recently reported that the Canadian Malartic partnership had identified a porphyry-hosted gold mineralization that could potentially be mined via an open pit from the Camflo property (1.0% NSR royalty).
Amended an existing 1.0% NSR royalty on Monarch's Beaufor Mine. In consideration for $1.0 million paid in cash to Monarch, Monarch agreed to waive a clause stipulating that payments under the NSR royalty were only payable after 100 Koz of gold have been produced by Monarch following its acquisition of Beaufor Mine. Payments under this NSR royalty will commence shortly as Monarch announced the start of production during July 2022 (see below).
For the three months ended June 30, 2022, received or accrued payments on 560 attributable Gold Equivalent Ounces ("GEOs") at an average realized price of $1,844 and an average cash cost of $9 per attributable GEO (see non-IFRS Financial Measures). For the six months ended June 30, 2022, received or accrued payments on 1,284 attributable GEOs at an average realized price of $1,839 and an average cash cost of $7 per attributable GEO (see non-IFRS Financial Measures);
For the three months ended June 30, 2022, recognized revenue from royalty and stream interests, including fixed royalty payments, of $0.5 million, net loss of $1.4 million, and adjusted EBITDA of negative $0.2 million (see non-IFRS Financial Measures). For the six months ended June 30, 2022, recognized revenue from royalty and stream interests,
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including fixed royalty payments, of $1.1 million, net loss of $3.6 million, and adjusted EBITDA of negative $0.2 million (see non-IFRS Financial Measures);
For the three months ended June 30, 2022, generated operating cash margin of $1,835 per attributable GEO, and for the six months ended June 30, 2022, generate operating cash margin of $1,832 per attributable GEO, from the Wharf, Joaquin, and COSE royalties, the New Luika Gold Mine ("NLGM") stream held by Silverback Ltd. ("Silverback"), the
Higginsville derivative royalty asset, and other royalty interests (see non-IFRS Financial Measures);
For the three months ended June 30, 2022, recognized payments due or received (not included in revenue) from the Higginsville derivative royalty asset of $0.6 million, and for the six months ended June 30, 2022, recognized payments due or received from the Higginsville derivative royalty asset of $1.2 million (see non-IFRS Financial Measures);
On May 12, 2022, the Company filed a new final short form base shelf prospectus and a corresponding registration statement on Form F-10 that replaced the base shelf prospectus and Form F-10 registration statement previously filed by the Company in 2020, and to enhance the Company's financial flexibility. In connection with this transition, the
Company terminated its At-The-Market ("ATM") program announced on May 14, 2021 (the "2021 ATM Program"). From inception on May 14, 2021, to the termination on May 12, 2022, the Company distributed 1,990,778 common shares under the 2021 ATM program at an average price of $8.18 per share for gross proceeds of $16.3 million, of which 20,170 common shares were sold during the three months ended June 30, 2022, at an average price of $7.13 per common share for gross proceeds of $0.1 million;
On May 27, 2022, the Company announced that it had entered into a new equity distribution agreement with a syndicate of agents to establish an ATM equity program (the "2022 ATM Program") under which the Company may distribute up to $50.0 million (or the equivalent in Canadian Dollars) in common shares of the Company. From inception to the date of this press release, the Company did not distribute any common shares under the 2022 ATM program; and
In August 2022, the Company and Beedie Capital entered into an agreement to extend the maturity date of its loan facility from April 21, 2023, to January 22, 2024 (the "Loan Extension"). In consideration for the Loan Extension the Company incurred a fee of 2.0% of the currently drawn amount of C$8.0 million, the C$160,000 fee will be convertible into common shares at a conversion price of C$7.34 per share, calculated based on a 20% premium to the 30-day Volume Weighted Average Price of the Company's common shares on the trading day immediately prior to the effective date of the Loan Extension. The Loan Extension is subject to stock exchange approvals which are pending.
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On July 5, 2022, Monarch announced that it had begun processing ore from its Beaufor Mine at its wholly-owned Beacon Mill, it reported it had stockpiled a total of 30,549 tonnes of ore averaging 4.76 g/t gold and would start feeding the mill with that ore and expected to pour its first bar of gold in July 2022. On July 27, 2022, Monarch further announced the production of its first gold bar from the Beaufor Mine, and announced it expects to reach commercial production in the coming months.
On June 16, 2022, Monarch reported results from recent drilling at the Q Zone where significant intercepts include 122 g/t over 1.4 meters, 20.74 g/t over 3.3 meters, 83.2 g/t gold over 0.5 meters and 18.87 g/t gold over 1.2 meters. On July 25, 2022, Monarch reported high grade results from drilling at the Q Zone that included 37.59 g/t gold over 2.5 meters, 29.79 g/t gold over 2.45 meters and 418 g/t gold over 0.63 meters, highlighting the potential to expand the Q Zone at depth.
Metalla holds a 1.0% NSR royalty on the Beaufor mine.
On August 3, 2022, Coeur Mining Inc. ("Coeur") reported second quarter production of 20.4 Koz gold at 0.47 g/t gold, in line with the 70-80 Koz full year guidance for Wharf disclosed by Wharf on February 16, 2022. During the quarter, one reverse circulation ("RC") drill rig had completed a resource conversion program at the Portland-Ridge-Boston claim group and at the Flossie area.
On February 16, 2022, Coeur reported that Wharf's updated Proven and Probable Reserves totaled 852 Koz at 0.73 g/t. Total Measured and Indicated Resources were reported at 412 Koz at 0.63g/t with an Inferred Resource estimate of 90 Koz at 0.75 g/t. In addition, Coeur reported in their Q4 2021 financial statements, an updated mine life of 8 years for Wharf. Additionally, Coeur reported the continued exploration success at Wharf where a total of 6,625 meters of drilling was completed in the Portland Ridge - Boston claim group, Flossie and Juno areas. Coeur spent $4 million on exploration at the mine in 2021, its largest since acquiring the asset in 2015.
Metalla holds a 1.0% GVR royalty on the Wharf mine.
New Luika Silver Stream
On July 21, 2022, Shanta Gold Limited ("Shanta") reported that it produced 17.5 Koz of gold at its NLGM in Tanzania in the second quarter of 2022, in line with full year production guidance of 68- 76 Koz gold. On July 19, 2021, Shanta announced a new mine plan for NLGM, where average annual production is expected to be 73.6 Koz gold with the potential to extend mine life beyond 2026 through conversion of significant known resources and the expanded 2,450 tpd mill throughput. Shanta expects total gold production from NLGM for the five-year plan to total 368 Koz from both open pit and underground mine sources from the mining license.
Metalla holds a 15% interest in Silverback, whose sole business is receipt and distribution of a 100% silver stream on NLGM at an ongoing cost of 10% of the spot silver price.
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On August 3, 2022, IAMGOLD Corporation ("IAMGOLD") reported that construction had reached 57% completion at the Côté Gold Project. It also reported completion in the second quarter of 2022 of approximately 10,500 meters of the 16,000 meter drill program is planned in 2022 to further delineate and expand the Gosselin mineral resources and test selected targets along the deposit corridor. In addition, IAMGOLD completed a project update to the Côté life-of-mine plans where the update proposes an 18-year mine life with initial production expected in early 2024. Average annual production during the first six years is expected to be 495 Koz gold and 365 Koz over the life-of-mine.
Figure 1: Table showing updating Gold Production Profile for the Côté Gold Project. (Source: IAMGOLD Corporation. Announces Results
of Côté Gold Project Update, issued August 3, 2022)
Metalla holds a 1.35% NSR royalty that covers less than 10% of the Côté reserves and resources estimate and covers all of the Gosselin resource estimate.
Castle Mountain is slated to become one of Equinox Gold's ("Equinox") largest assets. Metalla's 5.0% NSR royalty covers the South Domes portion of the deposit which will be part of the Phase 2 expansion slated to begin in 2026.
On August 3, 2022, Equinox reported production in the second quarter of 6.7 Koz gold and exploration expenditure in the second quarter of $0.5 million at the Castle Mountain property. This was in addition to the exploration announced on May 3, 2022, where drilling in the first quarter included 7,948 meters of RC drilling across the South dump area to assess the continuity and distribution of grade. Equinox also completed 1,448 meters of RC drilling in the area between the JSLA and South Domes pits.
Equinox also announced that in March 2022 it had submitted applications to amend existing permits to accommodate the Phase 2 expansion. On February 24, 2022, Equinox announced they expect to spend $7 million for Phase 2 permitting, optimization studies and metallurgical test work and nearly $2 million for exploration. As of August 3, 2022, the Phase 2 permitting timeline was on
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Metalla Royalty and Streaming Ltd. published this content on 12 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 August 2022 20:27:02 UTC.