Metalla Reports Audited Financial Results FOR the Year Ended
METALLA REPORTS AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED
DECEMBER 31, 2021 AND PROVIDES ASSET UPDATES
(All dollar amounts are in United States dollars unless otherwise indicated)
FOR IMMEDIATE RELEASE TSXV: MTA
NYSE American: MTA
March 25, 2022
Vancouver, Canada: Metalla Royalty & Streaming Ltd. (“Metalla” or the “Company”) (TSXV: MTA)
(NYSE American: MTA) announces its operating and financial results for the year ended
December 31, 2021. Metalla has also filed with the U.S. Securities and Exchange Commission (the
“SEC”) its SEC Annual Report on Form 40-F for the year ended December 31, 2021. The Form 40-F
includes the Company’s Annual Information Form, audited financial statements and
management’s discussion & analysis for the year ended December 31, 2021. For complete details
of the consolidated financial statements and accompanying managemen t's discussion and
analysis for the year ended December 31, 202 1, please see the Company's filings on SEDAR
(www.sedar.com) or on EDGAR ( www.sec.gov). Shareholders are encouraged to vi sit the
Company's website at http://www.metallaroyalty.com/.
Metalla shareholders may receive a hard copy of the Company’s complete audited financial
statements for the year ended December 31, 2021, free of charge, upon request. For further
information please visit the Company website at https://www.metallaroyalty.com/financial-
reports/.
Brett Heath, President, and CEO of Metalla, commented, "2021 represented another major step
in the continued growth of Metalla, adding seven high -quality development royalties all being
advanced by top operators on proven geological trends. The 1.35% royalty on the Côté-Gosselin
project and the 5% royalty on the Castle Mountain project show signs of becoming cornerstone
parts of the Metalla portfolio, and the other five royalties acquired by Metalla in 2021 provide an
enhanced diverse growth profile of production that is just getting started."
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FINANCIAL HIGHLIGHTS
During the year ended December 31, 2021, and the subsequent period up to the date of this
news release, the Company:
• Closed seven new royalty acquisitions to bring the total held to 70 precious metal assets,
and amended an existing royalty through the following notable transactions:
o an existing 1.35% Net Smelter Returns (“NSR”) royalty on a small portion of the Côté
deposit in the Côté Gold Project and all of the Gosselin Zone (located ~1.5km to
the northeast of the Côté Gold Project) (together referred to as “ Cote-Gosselin”)
owned by IAMGOLD Corporation (“IAMGOLD”) and Sumitomo Metal Mining Co.,
Ltd., from arm’s length sellers for total consideration of C$7.5 million in cash;
o an existing 5.0% NSR royalty on the South Domes portion of the Castle Mountain
Gold Mine (“Castle Mountain”) owned by Equinox Gold Corp. (“Equinox”), from an
arm’s length seller for total consideration of $15.0 million, of which $10.0 million was
paid in cash at closing, and the remaining $5.0 million to be paid in cash within 20
months from the closing date bearing interest at 4.0% per annum;
o an existing 0.75% Gross Value Return (“ GVR”) royalty on Eldorado Gold Corp.’s 2
Moz Au Tocantinzinho project (“TZ”) located in the Tapajos district in the State of
Para in northern Brazil, from Sailfish Royalty C orp. for a total consideration of $9.0
million in cash.(2) Subsequent to the acquisition, Eldorado sold its interest in TZ to G
Mining Ventures Corp. (“G Mining”) for $115 million;
o an existing 1 .0%-2.0% NSR royalty on OZ Minerals (“OZ”) 1.7Moz Au CentroGold
project (“CentroGold”) located in the State of Maranhão in northern Brazil, from
Jaguar Mining Inc. for total consideration of $7.0 million in cash and with additional
contingent payments of up to $1 1.0 million comprised of shares and cash subject
to the successful completion of certain milestones in respect of the CentroGold
project;(3)
o an existing 0.45% NSR royalty on Agnico Eagle Mines Ltd.’s (“ Agnico”)
Amalgamated Kirkland property in its Kirkland Lake project, and an existing 0.45%
NSR royalty on Kirkland Lake Gold’s (“Kirkland Lake Gold”) North Amalgamated
Kirkland property (“ North AK Property ”) at its Macassa mine, from private third
parties for total consideration of C$0.7 million in cash;(4)
o an existing 2.5% NSR royalty on Minera Alamos Ltd.’s La Fortuna project , from
Argonaut Gold Ltd. for aggregate consideration of $2.25 million in cash. The 2.5%
NSR royalty, which is capped at $4.5 million, wi ll be in addition to Metalla’s
uncapped 1.0% NSR royalty to increase its total royalty exposure to 3.5% on the La
Fortuna project;
o an existing 0.5% NSR royalty on Barrick Gold Corp.’s (“Barrick”) Del Carmen project,
which is part of the 9 Moz Au Alturas-Del Carmen project in the prolific El Indio belt
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in the San Juan province of Argentina, from Coin Hodl Inc. for a total consideration
of C$1.6 million in cash;(1) and
o amended an existing 1.0% NSR on Monarch Mining Corporation’s (“ Monarch”)
Beaufor Mine (“Beaufor”). 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.
• on May 14, 2021, announced the termination of its original at -the-market program (the
“2020 ATM Program ”). From January 1, 2021 to May 14, 2021 , the Company distributed
1,526,600 common shares under the 2020 ATM Program at an average price of $9.45 per
share for gross proceeds of $14.4 million. From inception in September 2020 to termination
in May 2021, the Company distributed a total of 1,809,300 common shares under the 2020
ATM Program at an average price of $9.63 per share for gross proceeds of $17.4 million ,
with aggregate commissions paid and other share issue costs of $0.9 million, resulting in
aggregate net proceeds of $16.5 million;
• on May 14, 2021, announced the establishment of a new at -the-market program (the
“2021 ATM Program ”) with a syndicate of agents. Under the 2021 ATM Program the
Company may distribute up to $35.0 million (or the equivalent in Canadian dollars) in
common shares of the Company. From inception to December 31, 2021, the Company
distributed 1,622,165 common shares under the 2021 ATM Program at an average price of
$8.47 per share for gross proceeds of $ 13.7 million, with aggregate commissions paid or
payable and other share issue costs of $0.7 million, resulting in aggregate net proceeds of
$13.0 million. For the three months ended December 31, 2021 , the Company distributed
269,037 common shares under the 2021 ATM Program at an average price of $7 .31 per
share for gross proceeds of $2.0 million, with aggregate commissions paid or payable and
other share issue costs of $0.2 million, resulting in aggregate net proceeds of $1.8 million .
As of the date of this news release , the Company ha s distributed a total of 1,970,608
common shares under the 2021 ATM program for gross proceeds of $16.1 million;
• for the year ended December 31, 2021, received or accrued payments on 2,915
attributable Gold Equivalent Ounces (“GEOs”) at an average realized price of $1,718 and
an average cash cost of $7 per attributable GEO (see non-IFRS Financial Measures);
• for the year ended December 31, 2021, generated operating cash margin of $1,711 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 year ended December 31, 2021, recognized revenue from royalty and stream
interests, including fixed royalty payments, of $3.0 million, net loss of $10.4 million, and
adjusted EBITDA of negative $1.4 million (see non-IFRS Financial Measures);
• for the year ended December 31, 2021, recognized payments due or received (not
included in revenue) from the Higginsville derivative royalty asset of $2.2 million (see non -
IFRS Financial Measures); and
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• converted C$5.0 million outstanding on the Beedie Capital amended loan facility (the
“Beedie Loan Facility ”) at C$9.90 per share for a total of 505,050 common shares and
completed a draw down for an additional C$5.0 million from the Beedie Loan Facility with
a conversion price of C$14.30 per share, and drew down an additional C$3.0 million from
the Beedie Loan Facility with a conversion price of C$11.16 , with such conversion prices
representing a 2 0% premium above the 30 -day volume-weighted average price of the
Company’s common shares on the trading day prior of the applicable draw down date
in accordance with the terms of the Beedie Loan Facility . As at the date of this News
Release, the Company ha s a total of C$ 8.0 million outstanding under the Beedie Loan
Facility bearing interest at a rate of 8% per annum with a remaining C$12.0 million available
on standby under the Beedie Loan Facility.
ASSET UPDATES
Wharf Royalty
On February 16, 2022, Coeur Mining Inc. (“ Coeur”) reported in a news release 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.
In fiscal 2021, Wharf produced 91,136 ounces of gold at 0.84 g/t, in line with the production
guidance of 85-95 Koz for 2021. Fiscal 2022 guidance is expected to be 70-80 Koz, primarily driven
by lower expected gold grades due to mine sequencing.
Additionally, on February 16, 2022, Coeur reported in a news release on 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 in exploration at the mine in
2021, its largest since acquiring the asset in 2015. The Company plans to keep one reverse
circulation drill rig during the first quarter of 2022 focused on infill drilling the Portland Ridge and
Flossie areas.
Metalla holds a 1.0% GVR royalty on the Wharf mine.
Higginsville Royalty
On March 14, 2022, Karora Resources Inc. (“ Karora”) reported production of 112,814 ounces of
gold from its Higginsville Gold Operations (“ Higginsville”) and Beta Hunt mines, in line with 2021
production guidance of 105-115 Koz. On February 7, 2022, Karora announced guidance for fiscal
2022 of 110-134 K oz.
Metalla holds a 27.5% Price Participation Royalty (“ PPR”) royalty interest on the difference
between the London PM fix gold price and A$1,3 40/oz on the first 2.5 Koz per quarter until a
cumulative total of 34.0 Koz of gold at the Higginsville operation have been delivered. As at
December 31, 2021, 14.1 Koz of gold had been delivered.
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New Luika Silver Stream
On January 24, 2022, Shanta Gold Limited (“Shanta”) reported that it produced 55,280 ounces of
gold at its NLGM in Tanzania in 2021. 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. Shanta outlined that the resources presently sitting outside of the mine plan amounts to
552 Koz at 2.37 g/t at NLGM. Shanta has forecast production to be between 68 -76 Koz in fiscal
2022.
On February 1, 2022, Shanta reported that as at December 31, 2021, t he Probable Reserves at
NLGM stood at 404 Koz at 3.05 g/t gold, the Measured Resources were 105 Koz at 4.94 g/t gold,
the Indicated Resources were 707 Koz at 2.63 g/t gold, and the Inferred Resources were 296 Koz
at 1.73 g/t gold.
Metalla holds a 15% interest in Silverback Ltd., 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.
Endeavor Silver Stream
On January 20, 2022, Sandfire Resources Limited reported that a ground magnetic survey was
completed at the Endeavor mine and will assist in the targeting of Elura type deposits at depth.
Metalla has the right to buy 100% of the silver production up to 20 Moz (~12.6 Moz remaining
under the contract for delivery) from the Endeavor Mine for an operating cost contribution of
$1.00/oz of payable silver, indexed annually for inflation, plus a further increment of 50% of the
silver price in excess of $7.00/oz.
Côté-Gosselin
On February 23, 2022, IAMGOLD reported that construction had reached 43.4% completion at
the Côté Gold Project and remains on track for commercial production in H2 2023. On December
2, 2021, IAMGOLD announced the release of a NI 43 -101 technical report on the Côté Gold
Project which estimated an initial Indicated Resource estimate of 3.35 Moz at 0.84 g/t gold and
an Inferred Resource estimate of 1.71 Moz at 0.73 g/t gold at the Gosselin zone . The Gosselin
deposit has only been drilled to approximately half the depth of th e Côté deposit and remains
open at depth and along strike where a number of drill holes ended in mineralization (see Figure
1). Gosselin has an industry leading discovery cost per gold ounce of less than $2.
IAMGOLD has planned additional technical studi es which will include a metallurgical testing
program and mining and infrastructure studies to optimize the inclusion of the Gosselin deposit
into the future Côté life -of-mine plans. Per IAMGOLD, a dditional drilling will target areas where
drill spacing is too wide to classify mineral resources and the overlap area between the Gosselin
and the Côté deposits which may provide an opportunity for optimization of a combined pit shell.
In addition, IAMGO LD will commence work on defining environmental baseline data and
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permitting requirements for different development scenarios and initiate discussions with First
Nations and Métis partners.
On January 27, 2022, IAMGOLD released assay results that extended the Gosselin Zone outside of
the recent mineral resource estimate. Significant highlights include 0.78 g/t gold over 355.5
meters, 2.05 g/t gold over 256 meters, 0.55 g/t gold over 357.5 met ers and 0.7 g/t gold over 173
meters.
Metalla holds a 1.35% NSR royalty covers less than 10% of the Côté reserves and resources
estimate and covers all of the Gosselin resource estimate.
Castle Mountain
Castle Mountain is slated to become one of Equinox Gold’s 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 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. Equinox
expects to submit the Phase 2 permit applications in Q1 2022.
On March 22, 2021, Equinox announced the release of an updated NI 43-101 technical report
on the Castle Mountain Project. As per the report the South Domes portion of Castle Mountain
has total Mineral Reserves of 1.24 Moz at a diluted grade of 0.53 g/t gold. Equinox also stated
that potential exists to ultimately connect the JSLA and South Dome pits.
Figure 1: Longitudinal Section of block model for Côté Deposit and Gosselin Zone (Source: IAMGOLD news
release dated October 18, 2021)
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Figure 2: Plan map showing Resources and Reserves by pits (Source: Technical Report on the Castle Mountain Project Feasibility Study,
issued March 17, 2021)
Metalla holds a 5.0% NSR Royalty on the South Domes area of the Castle Mountain mine.
Wasamac
On December 1, 2021, Yamana Gold Inc. (“ Yamana”) announced that initial drill results at
Wasamac defined an entirely new shear zone which demonstrates a reinforced vision for a 200
Koz plus per year operation with a mine life of at least 15 years. Exploration drilling at the newly
discovered South Wildcat zone returned 7.31 g/t gold over 3.37 meters. Yamana has decided to
advance a bulk sample permitting process to allow construction of a ramp which could expedite
the start of production ahead of the stated 2026 start date. In addition, work is ongoing to
understand the metallurgy of the project where preliminary testing indicated that average gold
recovery could increase by 3% compared to the feasibility study. Yamana expects to complete
the Environmental impact assessment by the second quarter of 2022.
Metalla holds a 1.5% NSR royalty on the Wasamac project subject to a buy back of 0.5% for C$7.5
million.
Fosterville
On February 23, 2022, Agnico reported that they expect to spend $34.6 million for 121,400 metres
of drilling and development to replace mineral reserve depletion and to add mineral resources
at Fosterville. Another $19.7 million will be spent on underground and surface exploration with the
aim to discover additional high -grade mineralization, with $2.9 million to be spent on regional
exploration drilling on the land package surrounding the Fosterville mine.
Metalla holds a 2.5% GVR royalty on the Northern and Southern extensions of the Fosterville mining
license and other areas in the land package.
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Tocantinzinho
On February 9, 2022, G Mining announced that it had completed an updated feasibility study for
the TZ gold project located in Para State, Brazil. The study confirmed a robust 10.5 -year mine life
producing 1.8 Moz of gold in total resulting in an average annual gold production profile of
174,700 ounces at an all-in sustaining cost of $681/oz.
Economics were favourable, at a $1,600/oz gold price the study demonstrated an after -tax
NPV5% of $622 million and generated an after -tax IRR of 24%. Also of note, G Mining increased
the reserves at TZ by 12% to 2.0 Moz and saw an increase in the capital cost at the project of only
7% since the last study was conducted. Project optimization and detailed engineering is
expected to occur from Q4 2021 through to Q4 2022. G Mining also expects to complete two
drilling campaigns totaling 10,000 meters beginning in Q4 2021 through to Q1 2022, these include
a grade control drilling program to de -risk early years of production and an exploration drilling
program to test for potential extensions of the known mineralization at depth and below the
current pit.
G Mining is a precious metals development company with a leadership team which has built four
mines in South America, including the Merian mine for Newmont Corporation and Fruta Del Norte
for Lundin Gold.
Metalla holds a 0.75% GVR royalty on the Tocantinzinho project.
El Realito
On February 23, 2022, Agnico reported that road construction was completed in the fourth
quarter of 2021. Pre-stripping activities at El Realito pit were underway and were expected to be
completed in the third quarter of 2022. The production guidance from the La India mine which
hosts the El Realito pit were positively revised to 82.5 Koz gold in 2022, 70 Koz gold in 2023 and 22.5
Koz gold in 2024. The increase in the production guidance was due to pit optimization and
increase in mineral reserves at the El Realito deposit.
Metalla holds a 2.0% NSR royalty on the El Realito deposit which is subject to a 1.0% buyback right
for $4.0 million.
Santa Gertrudis
On February 23, 2022, Agnico announced an updated Resource estimate at Santa Gertrudis
where the Indicated Resources totaled 99 Koz gold at 0.64 g/t and 739 Koz at 4.79 g/t silver, and
Inferred Resources totaled 1,679 Koz at 1.69 g/t gold and 5,924 Koz at 5.96 g/t silver.
Exploration drilling in the fourth quarter at the high-grade Amelia deposit resulted in the improved
understanding of structural controls leading to the 120 -meter extension of the high -grade ore
shoots at the deposit beyond the 2021 mineral resources. At the Centauro deposit, a 100 -meter
step out from a hole that returned 5.8 g/t gold over 15 meters encountered high grade sulphide
mineralization outlining the potential to make additional high -grade discoveries at the property
similar to Amelia.