Metalla Reports Financial Results FOR the Second Quarter of 2022 and Provides Asset Updates
METALLA REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2022
AND PROVIDES ASSET UPDATES
(All dollar amounts are in United States dollars unless otherwise indicated)
FOR IMMEDIATE RELEASE TSXV: MTA
NYSE American: MTA
August 12, 2022
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, 202 2. 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. Wasama c'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."
FINANCIAL HIGHLIGHTS
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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o 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;
o 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;
o 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 2 00 Koz annually over the initial 15 years. Bulk sample permit
approvals are expected in early 2023 and ramp development could begin in spring
2023;
o 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
o Yamana recently reported that the Canadian Malartic partnership ha d 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 ope rating
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 payme nts 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 th e 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 a n 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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ASSET UPDATES
Beaufor Mine
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 prod uction 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.
Wharf Royalty
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 Inferre d 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, Sha nta 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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Côté-Gosselin
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
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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schedule with the San Bernardino County having determined the application was complete.
Equinox expects the U.S. Bureau of Land management to complete its completeness review by
the end of July with the application reviews to run through to the end of 2022. Both agencies will
determine the appropriate level of state and federal environmental review required with the
resulting review process anticipated to begin by early 2023.
Metalla holds a 5.0% NSR royalty on the South Domes area of the Castle Mountain mine.
Garrison
On July 7, 2022, Moneta released the results of exploration drilling at the Garrison deposit in their
Tower Gold project. Drilling results tested new areas all within the Tower Gold project, including
east and west of the Garrcon resource, south of the Westaway resource at South Basin, east of
the Windjammer South resource at Halfway, and west of the 55 deposit. Drilling has confirmed
significant gold mineralization beyond the current resource. Highlights include a drill hole that
intercepted significant mineralization with 50.09 g/t gold over 5.05 meters and 0.66 g/t gold over
16 meters. The holes highlight the potential to expand the Garrcon resource pit shells and open
new targets for future exploration drilling.
On May 11, 2022, Moneta release d an updated resource estimate for the Tower Gold project,
including 4.27 Moz gold in the Indicated category and 7.5 Moz gold in the Inferred category.
Moneta plans to complete a Preliminary Economic Assessment on the project scheduled for
completion later in the second quarter of 2022. The Garrison deposit forms part of the Tower
project and is comprised of three zones, Garrcon, Jonpol, and 903. At Garrcon, the open pit
Indicated Resource is 841 Koz at 1.02 g/t gold with an Inferred Resource of 15Koz at 0.67 g/t gold,
the underground portion has an Indicated Resource of 87 Koz at 5.08 g/t gold with an Inferred
Resource of 120 Koz at 4.98 g/t gold. The Jonpol zone has an Indicated Resource of 297 Koz at
1.4 g/t gold and an Inferred Resource of 114 Koz at 0.99 g/t gold. The 903 zone has an Indicated
Resource of 610 Koz at 1.01 g/t gold and an Inferred Resource of 600 Koz at 0.74 g/t gold. The
Garrison starter pit now has an Indicated Resource of 1.75 Moz at 1.07 g/t gold. Moneta is slated
to release a PEA in the second half of 2022.
Figure 2: Cross Section showing high grade intervals below the Garrcon resource pits (Source: Moneta Gold Inc. press release on Step-
out drilling at Garrcon, Tower Gold Project, issued July 7, 2022)
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Metalla holds a 2.0% NSR royalty on the Garrison project.
Wasamac
On July 7, 2022, Yamana announced the approval of the Wasamac bulk sample program,
providing for earlier access to the deposit and to increase the level of confidence in the future
mining of the project. Permit approvals are expected in early 2023 with ramp development
potentially beginning in Spring 2023. A reassessment of the Wasamac project highlighted an
improved gold production profile compared to the feasibility study with new projections of ramp-
up to 200 Koz in 2027 and up to 250 Koz in 2028. Ongoing mine design and sequence optimizations
could position Wasamac with the option for future incremental expansion of the mill to 9,000 tpd
from 7,000 tpd in year 3 of operations which will extend the gold production profile of 250 Koz per
year until at least 2030. Yamana also highlighted additional opportunities not included in the
strategic plan which include processing flow sheet optimization to increase metallurgical
recoveries by approxi mately 3%, optimized configuration of the tailings filter plant and paste
backfill plant. Yamana also announced that bulk sample permits are scheduled for submission in
the third quarter of 2022, with the approval expected in early 2023 and ramp development could
begin in spring 2023.
On July 27, 2022, Yamana announced positive results from infill drilling at the Wasamac project
where grades continue to exceed expectations with significant results include 5.05 g/t gold over
54.06 meters and 5.45 g/t gold over 16.8 meters. Exploration dr illing at the Wildcat South target
continued to expand on the discovery with a significant intercept of 7.31 g/t gold over 3.37 meters
and 1.46 g/t gold over 12.3 meters.
Figure 3: Chart showing projected production profile of the Wasamac project (Source: Yamana Gold Inc. Second Quarter Operating
Results, issued July 7, 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.
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Amalgamated Kirkland Property
On July 27, 2022, Agnico Eagle Mines Limited (“ Agnico”) reported that an assessment was
ongoing at the Amalgamated Kirkland deposit to provide incremental ore feed to the Macassa
mill with annual production of 40 Koz as soon as 2024. The Macassa underground ramp had been
extended by 615 meters and twenty -four drill holes had been completed in the higher -grade
portion of the deposit. Significant intercepts from the underground drill program include 14.1 g/t
gold over 6.5 meters, 23.9 g/t gold over 2.0 meters and 14.9 g/t gold over 3.0 meters. Drilling from
the surface drill program designed to infill near surface mineralization proves to be successful in
confirming grade thicknesses with significant intercepts of 6.9 g/t gold over 6.7 meters, 5.9 g/t
gold over 6 meters and 9 g/t gold over 9.2 meters.
In 2022, Agnico plans to spend $8.6 million on a 1.3 kilometre exploration ramp from the Macassa
near surface zones, designed to carry out infill drilling and a bulk sample of the higher -grade
regions of the Amalgamated Kirkland deposit. On April 28, 2022, Agnico rep orted that the
Amalgamated Kirkland deposit hosts an Indicated Resource estimate of 265 Koz gold at 6.51 g/t
gold and an Inferred Resource of 406 Koz at 5.32 g/t gold. The deposit remains open at depth
and extends laterally.
Metalla holds a 0.45% NSR royalty on the Amalgamated Kirkland property.
El Realito
On July 27, 2022, Agnico reported that pre -stripping of the El Realito pit was approximately 81%
compete. Pre-stripping activities at El Realito pit are in line with forecast are expected to be
completed in the third quarter of 2022. The production guidance in Agnico’s February 23, 2022,
press release for 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. Th e 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.
Del Carmen
On May 4, 2022, Barrick Gold Corporation reported that drilling at Del Carmen resumed in the
second quarter of 2022, drilling will continue until the winter season. Results received at Carmen
Norte, located to the north of the Rojo Grande target, c onfirmed gold mineralization with an
intercept of 0.5 g/t gold over 39 meters, which opens up a new area with upside potential to add
resources to Del Carmen. In addition, all geological models grade estimates and
geometallurgical models with be updated and rebuilding in the second quarter to inform future
steps for the project.
Metalla holds a 0.5% NSR royalty on the Del Carmen project which is the Argentine portion of the
Alturas-Del Carmen project in the prolific El Indio belt.