Metalla Reports Financial Results FOR the Second Quarter of 2023 and Provides Asset Updates
METALLA REPORTS FINANCIAL RESULTS FOR THE SECOND
QUARTER OF 2023 AND PROVIDES ASSET UPDATES
(All dollar amounts are in thousands of
United States
dollars unless otherwise indicated, except for shares, per ounce, and per share amounts)
TSXV: MTA
NYSE American: MTA
VANCOUVER, BC
,
Aug. 11, 2023
/CNW/ -
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, 2023
. 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, 2023
, 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 2023, we strengthened our balance sheet through the completion of
the amendment to expand and extend our convertible loan facility with Beedie Capital and through the sale of the JR mineral claims for
$5.0 million
.
Production from
El Realito
and
La Encantada
was stronger than expected during the quarter, and we look forward to the balance of 2023."
FINANCIAL HIGHLIGHTS
During the six months ended
June 30, 2023
, and the subsequent period up to the date of this news release, the Company:
Acquired 1 stream and 5 royalties, to bring the total held as at the date of this press release to 82 precious metals assets, through the following
transactions:
1
.
Acquired an existing 2.5%-3.75% sliding scale Gross Proceeds ("
GP
") royalty over gold, together with a 0.25%-3.0% Net Smelter Return
("
NSR
") royalty on all non-gold and silver metals on the majority of Barrick Gold Corporation's ("
Barrick
") world-class Lama project in
Argentina
,
from an arm's length seller for aggregate consideration of
$7.5 million
. The transaction closed on
March 9, 2023
, at which time the Company
paid the
$2.5 million
in cash, and issued 466,827 common shares of the Company ("
Common Shares
") to the seller (valued at
$5.3553
per
share). The remaining
$2.5 million
, to be paid in cash or Common Shares, is payable within 90 days upon the earlier of a 2 Moz gold Mineral
Reserve estimate on the royalty area or 36 months after the closing date;
2
.
Acquired one silver stream and three royalties from Alamos Gold Corp. ("
Alamos
") for
$5.0 million
in Common Shares valued at
$5.3228
per
share, representing the 20-day Volume-Weighted Average Price ("
VWAP
") of shares of Metalla traded on the NYSE prior to the announcement
of the transaction. The transaction closed on
February 23, 2023
, at which time the Company issued 939,355 Common Shares to
Alamos
. The
stream and royalties acquired in this transaction include:
a 20% silver stream over the Esperanza project located in
Morales, Mexico
owned by Zacatecas Silver Corp.;
a 1.4% NSR royalty on the Fenn Gibb South project located in
Timmins, Ontario
owned by Mayfair Gold Corp.;
a 2.0% NSR royalty on the Ronda project located in Shining Tree,
Ontario
owned by Platinex Inc.; and
a 2.0% NSR royalty on the Northshore West property located in
Thunder Bay, Ontario
owned by New Path Resources Inc.
Sold the JR mineral claims that make up the Pine Valley property, which is part of the Cortez complex in
Nevada
, to Nevada Gold Mines LLC
("
NGM
"), an entity formed by Barrick and Newmont Corporation ("
Newmont
"), for
$5.0 million
in cash. The Company will retain a 3.0% NSR royalty
on the property. Sold the Conmee mineral claims that make up the Tower Mountain property to Thunder Gold Corp. ("
Thunder Gold
") for 4,000,000
common shares of Thunder Gold, valued at
$0.1 million
upon closing. The Company will retain a 2.0% NSR royalty on the property;
Announced a special dividend payment on the Common Shares, in the amount of
C$0.03
per share, with a declaration date of
July 10, 2023
, a
record date of
August 1, 2023
, and a payment date of
September 15, 2023
;
For the three months ended
June 30, 2023
, received or accrued payments on 856 attributable Gold Equivalent Ounces ("
GEOs
") at an average
realized price of
$1,945
and an average cash cost of
$8
per attributable GEO. For the six months ended
June 30, 2023
, received or accrued
payments on 1,783 attributable GEOs at an average realized price of
$1,888
and an average cash cost of
$7
per attributable GEO (
see Non-IFRS
Financial Measures
);
For the three months ended
June 30, 2023
, recognized revenue from royalty and stream interests, including fixed royalty payments, of
$1.0 million
,
net loss of
$0.5 million
, and Adjusted EBITDA of negative
$0.2 million
. For the six months ended
June 30, 2023
, recognized revenue from royalty and
stream interests, including fixed royalty payments, of
$1.9 million
, net loss of
$1.8 million
, and Adjusted EBITDA of
$0.4 million
. (
see Non-IFRS
Financial Measures
);
For the three months ended
June 30, 2023
, generated operating cash margin of
$1,937
per attributable GEO, and for the six months ended
June 30,
2023
, generated operating cash margin of
$1,881
per attributable GEO from the Wharf,
El Realito
,
La Encantada
, 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, 2023
, recognized payments due or received (not included in revenue) from the Higginsville derivative royalty
asset of
$0.7 million
, and for the six months ended
June 30, 2023
, recognized payments due or received (not included in revenue) from the
Higginsville derivative royalty asset of
$1.4 million
(
see Non-IFRS Financial Measures
);
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 distributed 1,328,078 Common Shares under the
2022 ATM Program at an average price of
$5.01
per share for gross proceeds of
$6.6 million
, of which 279,430 Common Shares were sold during
the three months ended
June 30, 2023
, at an average price of
$4.34
per share for gross proceeds of
$1.2 million
;
On
May 19, 2023
, the Company closed a second supplemental loan agreement (the "
Supplemental Loan Agreement
") to amend its loan facility by:
1
.
extending the maturity date to
May 9, 2027
;
2
.
increasing the loan facility by C$5.0 million from
C$20.0 million
to
C$25.0 million
, of which
C$21.0 million
will be undrawn after giving effect
to the
C$4.0 million
conversion described below;
3
.
increasing the interest rate from 8.0% to 10.0% per annum;
4
.
amending the conversion price of the fourth drawdown from
C$11.16
per share to
C$8.67
per share, being a 30% premium to the 30-day
VWAP of the Company shares measured at market close on the day prior to announcement of the amendment;
5
.
amending the conversion price of C$4.0 million of the third drawdown from
C$14.30
per share to
C$7.33
per share, being the 5-day VWAP
of the Company shares measured at market close on the day prior to announcement of the amendment, and converting the
C$4.0 million
into shares at the new conversion price. Upon closing the Company issued Beedie 545,702 Common Shares for the conversion of the
C$4.0
million
;
6
.
amending the conversion price of the remaining C$1.0 million of the Third Drawdown from
C$14.30
per share to
C$8.67
per share, being to
the 30-day VWAP of the Company shares measured at market close on the day prior to announcement of the amendment; and
7
.
All other terms of the loan facility remain unchanged.
On
March 30, 2023
, the Company signed an amendment with the arm's length seller of the Castle Mountain royalty to extend the maturity date of the
$5.0 million
loan from
June 1, 2023
, to
April 1, 2024
. As part of the amendment, on
March 31, 2023
, the Company paid all accrued interest on the
loan, and effective
April 1, 2023
, the interest rate increased to 12.0% per annum, and the principal and accrued interest will be repaid no later than
April 1, 2024
. On
July 7, 2023
, the Company paid all accrued interest on the loan at the time and made a principal repayment of
$4.3 million
.
ASSET UPDATES
Below are updates during the three months ended
June 30, 2023
, and subsequent period to certain of the Company's assets, based on information
publicly filed by the applicable project owner:
La Encantada
On
July 20, 2023
, First Majestic Silver Corp. ("
First Majestic
") announced production of 76 ounces of gold and 0.8 Moz of silver from
La Encantada
in
the second quarter of 2023 and provided 2023 guidance in the range of 3.1 - 3.3 Moz silver. First Majestic also completed 1,950 meters of drilling on the
property with the use of two underground rigs during the quarter.
Metalla received 233 GEOs from
La Encantada
for the second quarter of 2023.
Metalla holds a 100% GVR royalty on gold produced at the
La Encantada
mine limited to 1.0 Koz annually.
El Realito
On
July 26, 2023
, Agnico Eagle Mines Ltd. ("
Agnico
") reported that gold production from La India totaled 17,833 oz gold for the second quarter of 2023.
Mine production levels for the second quarter were good with grades higher than target. An investigation is ongoing for additional sulphide mineralization
with a plan to drill 4,000 meters at the Chipriona target which is northwest and adjacent to
El Realito
royalty boundary.
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
.
Wharf Royalty
On
May 10, 2023
, Coeur Mining Inc. ("
Coeur
") reported first quarter production of 15.5 Koz gold and reiterated the full year guidance for Wharf. On
February 16, 2022
. Coeur has guided 2023 production to be in the range of 85 – 95 Koz. Successful exploration and infill drilling during the year allowed
for a 7% increase, net of depletion, at Wharf where Proven & Probable Reserves totaled 908 Koz gold at 0.027 oz/t (0.84 g/t). Additionally, a total of 293
Koz gold at 0.02 oz/t (0.62 g/t) of Measured & Indicated Resources, and Inferred Resources stand at 63 Koz gold at 0.02 oz/t (0.62 g/t), were declared
at Wharf. Exploration efforts in 2023 will focus on geological modelling and planning for 2024.
Metalla holds a 1.0% GVR royalty on the Wharf mine.
New Luika Silver Stream
On
July 20, 2023
, Shanta Gold Limited ("
Shanta
") reported that it produced 19.3 Koz of gold at its NLGM in
Tanzania
in the second quarter of 2023.
Shanta also reiterated their guidance of 66 – 72 Koz of gold from NLGM in 2023.
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.
Wasamac
On
July 26, 2023
, Agnico reported that during the quarter, it advanced internal studies to assess potential production opportunities at Wasamac along
with alternative processing scenarios at either LaRonde and Canadian Malartic mill. Agnico also stated that it was updating studies that were previously
completed at Wasamac and believes it has the potential to be a low-cost mine with annual production of 150 – 200 Koz of gold with moderate capital
outlays and initial production commencing in 2029. The results of the Wasamac internal evaluation will be reported through the first half of 2024.
Metalla holds a 1.5% NSR royalty on the Wasamac project subject to a buy back of 0.5% for
C$7.5 million
.
Garrison
On
April 11, 2023
, Moneta Gold Inc. ("
Moneta
") announced the results of assays from historical drill core at Garrison. The sampling confirmed the
continuity and extension of gold mineralized zones not currently included in the latest Mineral Resource estimate. Significant results include 1.87 g/t over
18 meters and 1.58 g/t gold over 18.5 meters at Garrcon and 13.5 g/t gold over 3.2 meters and 4.79 g/t gold over 3.75 meters at Jonpol.
Metalla holds a 2.0% NSR royalty on the Garrison project.
Amalgamated Kirkland Property
On
July 26
, 2023, Agnico reported infill drill results from the Amalgamated Kirkland deposit featuring highlights of 11.1 g/t gold over 5.1 meters and 10.4
g/t gold over 2.5 meters. Agnico is evaluating the opportunity to process near surface and AK ore at the LaRonde complex. Average annual production
from the near surface deposit and AK deposit could be between 20 Koz and 40 Koz of gold, commencing in 2024. The results of an internal evaluation on
the AK deposit will be reported in the first half of 2024.
Metalla holds a 0.45% NSR royalty on the Amalgamated Kirkland property.
Endeavor
On
July 21, 2023
, Polymetals Resources Inc ("
Polymetals
") released an amended quarterly report reporting that significant progress has been made in
preparing for a decision to restart operations at Endeavor, underpinned by a mine restart study scheduled for release during the
December 2023
quarter,
with targeted commencement of operations by mid-2024. In
May 2023
, Polymetals released an updated resource estimate for the Upper Main lodes at
Endeavor where total Measured, Indicated and Inferred resources stand at 8.89 Moz silver at 528 g/t AgEq.
On
March 28, 2023
, Polymetals announced the execution of a share sale and purchase agreement in relation to the proposed acquisition of all of the
issued share capital of Orana Minerals Pty Ltd., which is the sole shareholder of Cobar Metals Pty Ltd. ("
Cobar Metals
"). Cobar Metals has in turn
entered into an agreement to purchase the Endeavor lead, zinc and silver mine in
Australia
via the acquisition of three project companies, including Cobar
Operations Pty Ltd. ("
Cobar Operations
"). On
May 12, 2023
, Polymetals announced the completion of Polymetals acquisition of Orana Minerals Pty Ltd.
was approved by Polymetals shareholders. As part of Polymetals proposed acquisition of the Endeavor mine, the Company entered into an agreement
with the holder of the Endeavor mining tenements, Cobar Operations, by which the Company converted its 100% silver stream in the Endeavor mine to a
4.0% NSR royalty on all lead, zinc and silver produced from those tenements.
Metalla holds a 4.0% NSR royalty on all lead, zinc and silver produced from Endeavor.
Côté-Gosselin
On
May 11, 2023
, IAMGOLD Corporation ("
IAMGOLD
") reported that it had completed 79.8% of the construction at the Côté Gold Project. Drill results
reported in a new release on
February 2, 2023
, for the 2022 drill program continue to highlight the resource expansion potential of the Gosselin deposit
both to the south of the recently declared 5 Moz Resource estimate, and at depth. Significant intercepts included 1.99 g/t gold over 342.2 meters, 1.29
g/t gold over 313 meters, 1.5 g/t gold over 181 meters and 0.66 g/t gold over 388.5 meters. Additional technical studies are planned to complete
metallurgical test work and mining and infrastructure studies to review alternatives to optimize the inclusion of Gosselin into future Côté life-of-mine plans.
Approximately 15.5 Km of drilling is planned in 2023 to further delineate and expand the Gosselin mineral resources.
Metalla holds a 1.35% NSR royalty that covers less than 10% of the Côté Reserves and Resources estimate and covers all of the 5 Moz gold Gosselin
Resource estimate.
Fifteen
Mile Stream
On
July 27, 2023
, St. Barbara Limited ("
St Barbara
") reported a revised permitting timeline for Fifteen Mile Stream which targets development in fiscal
2026. In addition, St. Barbara has prioritized development of Fifteen Mile Stream with assessment of the relocation of the Touquoy processing plant now
confirmed to be an attractive development option.
Metalla holds a 1.0% NSR royalty on the Fifteen Mile Stream project, and 3.0% NSR royalty on the Plenty and Seloam Brook deposits.
Fosterville
On
July 26, 2023
, Agnico reported that gold production from
Fosterville
for the second quarter of 2023 totalled 81.8 Koz gold. Drilling during the second
quarter of 2023 totaled 20.6 Km and mainly targeted the Lower Phoenix deep extension drilling. During 2023, Agnico plans to spend
$20.8 million
for
105,300 meters of drilling, and development of exploration drifts to replace Mineral Reserve depletion and to add Mineral Resources in the Lower
Phoenix, Cygnet and Robbins Hills areas. Agnico will spend another
$4.4 million
for 11,300 meters of underground and surface exploration with the aim of
discovering additional high-grade mineralization at
Fosterville
.
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.
Tocantinzinho
On
June 13, 2023
, G Mining Ventures ("
G Mining
") reported that the Tocantinzinho project is 30% complete and remains on track and on budget for
commercial production in H2-2024.
Metalla holds a 0.75% GVR Royalty on Tocantinzinho.
Lama
On
August 8, 2023
, Barrick reported that a geological review of results received from drilling in the first quarter of 2023 was ongoing to generate new drill
targets. Total exploration, evaluation and project expenses for the whole Pascua-Lama project totaled
$7 million
for the second quarter of 2023.
Metalla holds a 2.5%-3.75% GP royalty on gold and a 0.25%-3.0% NSR royalty on all other metals (other than gold and silver) at Lama.
Castle Mountain
On
August 2, 2023
, Equinox Gold Corp. ("
Equinox
") reported a surface exploration program of geological mapping and channel sampling was ongoing
with the primary goal to sample previously identified mineralization exposed on surface such that data can be used in future Mineral Resource estimation.
The mine permitting amendment plan was submitted to the lead county and BLM agencies which reviewed the plan for completeness in early 2023. Work
on the preliminary draft Environmental Impact Statement will begin in 2024. A total of
$1.7 million
was spent on Phase 2 permitting and optimization for
the quarter.
Metalla holds a 5.0% NSR royalty on the South Domes area of the Castle Mountain mine.
Akasaba West
On
July 26, 2023
, Agnico announced that the Akasaba West project remained on schedule through the second quarter with achievement of commercial
production expected to occur in the first quarter of 2024.
Metalla holds a 2.0% NSR royalty on the Akasaba West project subject to a 210 Koz gold exemption.
Del Carmen
The Company owned a 0.5% NSR royalty on the Del Carmen project that was owned and operated by Barrick. In
July 2023
, the Company was notified
that Barrick has terminated its agreement to explore and exploit the Del Carmen property and as a result of the termination the 0.5% NSR royalty owned
by Metalla had also been terminated. The Company considered the termination of the royalty as an indicator of impairment on its Del Carmen royalty and
conducted an impairment analysis to estimate the recoverable amount. As a result of the analysis, the Company fully impaired the royalty to $Nil as at
June 30, 2023
, and recorded an impairment charge of
$1.3 million
.
Camflo
On
June 20, 2023
, Agnico reported that it completed more than 14,000 meters of drilling on Camflo, which marks the first exploration drill program since
the 1.6 Moz past-producing deposit was closed in 1992. Significant results reported over multiple zones include 1.5 g/t gold over 81 meters, 3.3 g/t gold
over 38.7 meters, 3.2 g/t gold over 16.2 meters, 3.7 g/t gold over 7.1 meters, and 1.6 g/t gold over 20.3 meters.
The second phase of exploration drilling at Camflo will test for potential lateral extensions of mineralization and infill known zones. Agnico believes the
mineralization could be mined via an open-pit and processed at the Canadian
Malartic Mill
, 4 Km away.
Figure 1: Camflo Composite Longitudinal Section (Source: Agnico Eagle Mines Ltd. Press release issued June 20, 2023) (CNW Group/Metalla Royalty
and Streaming Ltd.)
Metalla holds a 1.0% NSR royalty on the Camflo mine, located ~1km northeast of the Canadian Malartic operation.
Plomosas
On
March 20, 2023
, GR Silver Mining announced an updated Mineral Resource estimate for the Plomosas project. At the Plomosas Mine area, total
Indicated Resources are 31 Moz at 200 g/t silver equivalent ("
AgEq
") and Inferred Resources are 17 Moz at 175 g/t AgEq. The San Juan-La Colorada
Area has an Indicated Resource of 1 Moz at 204 g/t AgEq and an Inferred Resource of 16 Moz at 180 g/t AgEq.
Metalla holds a 2.0% NSR royalty on the Plomosas property subject to a buy back of 1.0% for
$1.0 million
.
Tower Mountain
On
June 12, 2023
, Thunder Gold reported they expanded the footprint at Tower Mountain adding 2,575 hectares. On
May 15, 2023
, Thunder Gold
reported final results from the 4,000 meter phase one drilling program at Tower Mountain with significant results of 0.59 g/t gold over 36.3 meters, 0.53
g/t gold over 24.5 meters and 0.56 g/t gold over 10.5 meters.
O n
April 25, 2023
, Thunder Gold announced they intersected 941 g/t over 1.5 meters with visible gold in the core at the Thunder Gold property.
Additional highlights include 0.77 g/t gold over 23 meters and 1.26 g/t gold over 17.5 meters.
Metalla holds a 2.0% NSR royalty on the Tower Mountain property.
Montclerg
On
June 27, 2023
, GFG Resources Inc. reported high grade intervals at the Montclerg Gold Project located 48 km east of the Timmins Gold District.
Significant intercepts include 9.97 g/t gold over 8.1 meters and 4.09 g/t gold over 4.1 meters. Additionally, 1 Km east of the main MC Central Zone,
multiple zones of mineralization were intersected with a highlight of 1.93 g/t gold over 10.6 meters.
Metalla holds a 1.0% NSR royalty on the Montclerg property.
Detour DNA
On
July 26, 2023
, Agnico reported a drill hole two kilometers west of the open pit mineral reserves with a highlight of 2.8 g/t gold over 14.4 meters,
further demonstrating continuity of mineralization along the Detour horizon past the area identified for underground mining potential.
Metalla holds a 2.0% NSR royalty on the Detour DNA property which is approximately 7 km west of the Detour West reserve pit margin.
Green Springs
On
July 27, 2023
, Contact Gold Corp. announced the first drill results from the 2023 drill program where significant step-out results include 5.06 g/t gold
over 10.7 meters within 1.97 g/t gold over 35.05 meters and 1.14 g/t gold over 27.43 meters at the X-Ray Zone.
Metalla holds a 2.0% NSR royalty on the Green Springs project.
QUALIFIED PERSON
The technical information contained in this news release has been reviewed and approved by
Charles Beaudry
, geologist M.Sc., member of the
Association of Professional Geoscientists of
Ontario
and of the Ordre des Géologues du Québec and a director of Metalla. Mr. Beaudry is a QP as
defined in National Instrument 43-101 -
Standards of Disclosure for Mineral Projects
("
NI 43-101
").
ABOUT METALLA
Metalla is a precious metals royalty and streaming company. Metalla provides shareholders with leveraged precious metal exposure through a diversified
and growing portfolio of royalties and streams. Our strong foundation of current and future cash-generating asset base, combined with an experienced
team gives Metalla a path to become one of the leading gold and silver companies for the next commodities cycle.
For further information, please visit our website at
www.metallaroyalty.com
ON BEHALF OF METALLA ROYALTY & STREAMING LTD.
(signed) "Brett Heath"
President and CEO
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accept responsibility for the adequacy or
accuracy of this release.
Non-IFRS Financial Measures
Metalla has included certain performance measures in this press release that do not have any standardized meaning prescribed by International
Financial Reporting Standards (IFRS) including (a) attributable gold equivalent ounces (GEOs), (b) average cash cost per attributable GEO, (c)
average realized price per attributable GEO, (d) operating cash margin per attributable GEO, and (e) adjusted EBITDA. The Company believes that, in
addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance
and ability to generate cash flow.
(a) Attributable GEOs
Attributable GEOs are a non-IFRS financial measure that is composed of gold ounces attributable to the Company, plus an amount calculated by taking
the revenue earned by the Company in the period from payable silver ounces attributable to the Company divided by the average
London
fix price of
gold for the relevant period, plus an amount calculated by taking the cash received or accrued by the Company in the period from the derivative royalty
asset divided by the average
London
fix gold price for the relevant period. Included in the calculation of attributable GEOs is any cash received from
the Higginsville price participation royalty, which is accounted for as a derivative royalty asset, as such any payments received under this royalty are
treated as a reduction in the carrying value of the asset on the Company's statement of financial position and not shown as revenue on the Company's
statement of profit and loss. However, operationally as the Company receives payment similar to the Company's other royalty interests, the results
have been included for more accurate comparability and to allow the reader to accurately analyze the operations of the Company. The Company
presents attributable GEOs as it believes that certain investors use this information to evaluate the Company's performance in comparison to other
streaming and royalty companies in the precious metals mining industry who present results on a similar basis. The Company's attributable GEOs for
the three and six months ended
June 30, 2023
, were as follows:
Three months
Six months
ended
ended
Attributable GEOs during the period from:
June 30, 2023
June 30, 2023
Higginsville
377
730
Wharf
159
511
El Realito
233
401
La Encantada
55
81
NLGM
32
60
Total attributable GEOs
856
1,783
(b) Average cash cost per attributable GEO
Average cash cost per attributable GEO is a non-IFRS financial measure that is calculated by dividing the Company's total cash cost of sales,
excluding depletion by the number of attributable GEOs.
The Company presents average cash cost per attributable GEO as it believes that certain
investors use this information to evaluate the Company's performance in comparison to other streaming and royalty companies in the precious metals
mining industry who present results on a similar basis. The Company's average cash cost per attributable GEO for three and six months ended
June
30, 2023
, was:
Three months
Six months
ended
ended
June 30, 2023
June 30, 2023
Cost of sales for NLGM
$7
$12
Total cash cost of sales
7
12
Total attributable GEOs
856
1,783
Average cash cost per attributable GEO
$8
$7
(c) Average realized price per attributable GEO
Average realized price per attributable GEO is a non-IFRS financial measure that is calculated by dividing the Company's revenue, excluding any
revenue earned from fixed royalty payments, and including cash received or accrued in the period from derivative royalty assets, by the number of
attributable GEOs sold. The Company presents average realized price per attributable GEO as it believes that certain investors use this information to
evaluate the Company's performance in comparison to other streaming and royalty companies in the precious metals mining industry that present
results on a similar basis. The Company's average realized price per attributable GEO for three and six months ended
June 30, 2023
, was:
Three months
Six months
ended
ended
June 30, 2023
June 30, 2023
Royalty revenue (excluding fixed royalty payments)
$859
$1,840
Payments from derivative assets
742
1,411
Revenue from NLGM
64
116
Sales from stream and royalty interests
1,665
3,367
Total attributable GEOs sold
856
1,783
Average realized price per attributable GEO
$1,945
$1,888
(d) Operating cash margin per attributable GEO
Operating cash margin per attributable GEO is a non-IFRS financial measure that is calculated by subtracting the average cast cost price per
attributable GEO from the average realized price per attributable GEO. The Company presents operating cash margin per attributable GEO as it
believes that certain investors use this information to evaluate the Company's performance in comparison to other streaming and royalty companies in
the precious metals mining industry that present results on a similar basis.
(e) Adjusted EBITDA
Adjusted EBITDA is a non-IFRS financial measure which excludes from net income taxes, finance costs, depletion, impairment charges, foreign
currency gains/losses, share based payments, and non-recurring items.
Management uses Adjusted EBITDA to evaluate the Company's operating
performance, to plan and forecast its operations, and assess leverage levels and liquidity measures. The Company presents Adjusted EBITDA as it
believes that certain investors use this information to evaluate the Company's performance in comparison to other streaming and royalty companies in
the precious metals mining industry who present results on a similar basis. However, Adjusted EBITDA does not represent, and should not be
considered an alternative to net income (loss) or cash flow provided by operating activities as determined under IFRS. The Company's adjusted
EBITDA for three and six months ended
June 30, 2023
, was:
Three months
Six months
ended
ended
June 30, 2023
June 30, 2023
Net loss
$(487)
$(1,843)
Adjusted for:
Royalty interest impairment
1,302
1,302
Gain on sales of mineral claims
(5,093)
(5,093)
Interest expense
342
657
Finance charges
45
78
Loss on extinguishment of loan payable
1,417
1,417
Income tax provision
1,044
1,243
Depletion
514
913
Foreign exchange loss
154
222
Share-based payments
570
1,467
Adjusted EBITDA
$(192)
$363
Refer the Company's MD&A for the three and six months ended
June 30, 2023
, which is available on SEDAR at
www.sedar.com
, for a numerical
reconciliation of the non-IFRS financial measures described above. The presentation of these non-IFRS financial 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 financial measures differently.
Technical and Third-Party Information
Metalla has limited, if any, access to the properties on which Metalla holds a royalty, stream or other interest. Metalla is dependent on (i) the operators
of the mines or properties and their qualified persons to provide technical or other information to Metalla, or (ii) publicly available information to
prepare disclosure pertaining to properties and operations on the mines or properties on which Metalla holds a royalty, stream or other interest, and
generally has limited or no ability to independently verify such information. Although Metalla 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 Metalla's royalty, stream or other interests. Metalla's royalty, stream or other interests can
cover less than 100% and sometimes only a portion of the publicly reported mineral reserves, resources and production of a property.
Unless otherwise indicated, the technical and scientific disclosure contained or referenced in this press release,
including any
references to mineral
resources or mineral reserves, was prepared in accordance with Canadian
NI 43-101
, which differs significantly from the requirements of the U.S.
Securities and
Exchange Commission (the
"
SEC
"
)
applicable to U.S. domestic issuers. Accordingly, the scientific and technical
information contained
or referenced in this press
release may not be comparable to similar information made
public by U.S. companies subject to the reporting and
disclosure requirements of the SEC.
"
Inferred mineral resources
"
have a great amount of uncertainty as to their existence and great uncertainty as to
their
economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral resource will
ever be
upgraded to a higher category. Historical results or feasibility
models presented herein are not guarantees
or expectations of
future performance.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" (collectively, "
forward-looking statements
") within the
meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this press release only and the
Company does not intend to and does not assume any obligation to update or revise them except as required by applicable law.
All statements included herein that address events or developments that we expect to occur in the
future
are
forward-looking statements. Generally,
forward-looking statements can be identified by the use of
forward-looking terminology such as
"
plans
"
,
"
expects
"
,
"
is expected
"
,
"
budgets
"
,
"
scheduled
"
,
"
estimates
"
,
"
forecasts
"
,
"
predicts
"
,
"
projects
"
,
"
intends
"
,
"
targets
"
,
"
aims
"
,
"
anticipates
"
or
"
believes" or
variations (including negative
variations) of such words and phrases or may be
identified by statements
to the effect that certain actions
"
may
"
,
"
could
"
,
"
should
"
,
"
would
"
,
"
might
"
or
"
will
"
be taken,
occur or be
achieved. Forward-looking statements in this press release include, but are not limited to, statements
regarding: future
events or future performance of Metalla;
the completion of the Company
'
s royalty
purchase transactions;
the Company
'
s plans and objectives;
the
Company
'
s future financial and
operational performance;
expectations regarding stream and royalty interests owned by the Company;
the satisfaction
of future payment obligations, contractual commitments and contingent commitments by
Metalla;
the future achievement of any milestones in respect
of the payment or satisfaction of contingent
consideration by
Metalla
;
the payment of the special dividend and the anticipated timing thereof; the future
sales of common
shares
under the 2022 ATM Program and the value of the gross proceeds to be raised
;
the future availability of
funds, including
drawdowns pursuant to the Company
'
s loan facility (as amended or supplemented);
the
effective interest rate of drawdowns under the Company's loan
facility (as amended or supplemented)
and the life
expectancy thereof;
the future conversion of funds drawn down by
Metalla under its loan
facility (as
amended or supplemented);
the payment of the principal and accrued interest on the Castle Mountain loan
;
the completion by property owners of
announced drilling programs, capital expenditures, and
other planned activities
in relation to properties on
which the Company and its subsidiaries hold
a royalty
or streaming interest and the
expected timing thereof;
production and life of mine estimates or forecasts
at the properties on which the
Company and its subsidiaries hold a
royalty
or streaming interest
;
future
disclosure by property owners and the expected timing
thereof;
the completion
by property owners of
announced capital expenditure programs;
the expected 2023 production guidance at
La Encantada
;
the intended improvements
for the heap leach pads at
El Realito
;
the
completion of
4,000 meters of
exploration drilling by Agnico at the Chipriona deposit at
El Realito
;
the
expected 2023 production at Wharf;
the focus of the exploration efforts at Wharf in 2023;
the expected 2023 production guidance at NLGM;
the
assessment of the Wasamac project by Agnico,
and the reporting of the results of their internal evaluation and the anticipated timing thereof; the
expected production potential at Wasamac and the expected timing of commencement of production;
expected activities at the Tower Gold Project, and
the timing thereof;
the production potential at the AK deposit and the anticipated timing thereof;
the reporting of the results of an internal evaluation on
the AK deposit and the timing thereof;
the release of a mine restart study for Endeavor and the anticipated timing thereof;
the recommencing of
operations at the Endeavor mine and the anticipated timing thereof;
the completion of Polymetals acquisition of
Orana Minerals Pty Ltd.;
additional
technical studies planned to complete test work and studies to optimize inclusion of Gosselin
into future
C
ô
t
é
life-of-mine plans;
the planned drilling for
2023 at Gosselin; St. Barbara's plans regarding development of Fifteen Mile Stream including the timing thereof,
the expected expenses by Agnico at
Fosterville
, and the completion of capitalized drilling, development
of explora
t
ion drifts, and underground and surface exploration;
the start of
commercial production at Tocantinzinho and the anticipated timing thereof; phase two optimization, engineering and permitting, including the timing
and costs thereof at Castle Mountain;
the beginning of the preparation of a preliminary draft Environmental Impact Statement for Castle Mountain and
the timing thereof; the expected timing of start of production at Akasaba
West;
the second phase of exploration drilling at Camflo, and test for potential
lateral extensions of mineralization and infill known zones;
Agnico's belief regarding open-pit mining and location of processing at Camflo;
the
anticipated drill program at Camflo property and the
anticipated timing thereof;
results of the 2023 drill program at Green Springs;
the amount and
timing of the attributable GEOs expected by the Company in 2023;
the
availability of cash flows from the Wharf, Higginsville,
El Realito
, NLGM and
La
Encantada
royalties and
streams;
royalty payments to be paid to Metalla by property owners or operators of mining projects
pursuant to
each royalty
interest;
the future outlook of Metalla and the mineral reserves and resource
estimates for the properties with respect to which
the
Metalla has or
proposes to acquire an interest;
future gold and silver prices;
other potential developments relating to, or achievements by, the
counterparties for the
Company's stream and
royalty agreements, and with respect to the mines and
other properties in which the Company has, or may
acquire, a stream or
royalty interest;
costs and other
financial or economic measures;
prospective transactions;
growth and achievements
; financing and
adequacy of
capital;
future payment of dividends;
future public and/or private placements of equity,
debt or hybrids thereof; and
the Company
'
s ability to fund its
current operational requirements and
capital projects.
Such forward-looking statements reflect management's current beliefs and are based on information
currently available to
management. Forward-
looking statements 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 statements are subject to various known and
unknown risks and
uncertainties, many of which are beyond the ability of Metalla to control or
predict, that may cause
Metalla's actual results, performance or achievements to be materially different from those expressed or
implied thereby, and
are developed based on assumptions about such risks, uncertainties and other
factors set out herein, including but not
limited to: risks related to
commodity price fluctuations; the
absence of control over mining operations from which
Metalla will
purchase precious metals pursuant to
gold
streams, silver streams and other agreements or from which it will receive royalty
payments
pursuant to net smelter returns, gross overriding royalties,
gross
value royalties and other royalty
agreements or
interests 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 are refined; risks related to
exchange rate
fluctuations; that
payments in respect of streams and royalties may be delayed or may never be made;
risks
related to Metalla
'
s reliance on public disclosure and other
information regarding the mines or
projects
underlying its streams
and royalties;
that some royalties or
streams may be subject to
confidentiality
arrangements that limit or prohibit
disclosure
regarding
those
royalties and streams;
business opportunities that become available to, or are pursued
by, Metalla;
that
Metalla
'
s cash flow is
dependent on the activities of others;
that Metalla has had negative cash flow from
operating activities
in
the
past;
that some royalty and stream interests are subject to rights of other
interest-holders;
that
Metalla
'
s royalties and
streams may have unknown
defects;
risks related to
Metalla
'
s sole
material asset,
the C
ô
t
é
property;
risks related to general
business and economic
conditions;
risks related to
global
financial conditions, geopolitical events and other uncertainties;
risks
related to epidemics,
pandemics or
other public health crises, including
COVID-19 global health
pandemic, and the
spread of other
viruses or
pathogens, and the
potential impact thereof on Metalla
'
s
business, operations
and financial
condition;
that Metalla is dependent on its key personnel;
risks
related to Metalla
'
s financial controls;
dividend
policy and
future payment
of dividends;
competition;
that
project operators may not respect
contractual obligations;
that Metalla
'
s
royalties and streams may be
unenforceable;
risks related to
conflicts of interest of Metalla
'
s directors and officers;
that
Metalla may
not be able to obtain adequate
financing in the future;
risks
associated with Metalla
'
s 2022 ATM Program;
risks
related to Metalla
'
s
current credit facility and financing agreements;
litigation;
title, permit or
license
disputes related to
interests on any of the properties in which Metalla holds, or
may acquire, a
royalty, stream or other
interest;
interpretation by
government entities of tax laws or the implementation
of new tax laws;
changes in tax laws impacting Metalla;
risks related to
anti-bribery and anti-
corruption
laws;
credit and
liquidity risk;
risks related to Metalla
'
s information systems and cyber
security;
risks
posed by activist
shareholders;
that
Metalla may suffer reputational damage in the ordinary course of
business;
risks
related to acquiring, investing in or developing resource
projects;
risks applicable to
owners and
operators of properties in
which Metalla holds an interest;
exploration, development and
operating risks;
risks
related to climate change;
environmental risks;
that the exploration and
development activities
related to mine operations are subject to extensive laws
and
regulations;
that the
operation of a mine or
project is subject to the receipt and maintenance of permits from
governmental
authorities;
risks
associated with the acquisition and maintenance of mining infrastructure;
that Metalla
'
s
success is
dependent on the efforts of operators
'
employees;
risks related to mineral resource and
mineral reserve
estimates;
that mining depletion may not be replaced by the discovery of new mineral
reserves;
that
operators
'
mining operations
are
subject to risks that may not be able to be insured
against;
risks
related to land title;
risks related to international
operations;
risks related to operating in
countries with
developing economies;
risks related to the construction, development and
expansion of
mines or
projects;
risks associated with operating in areas that are presently, or were formerly, inhabited
or used
b y
indigenous peoples;
that Metalla is
required, in certain jurisdictions, to allow individuals from
that
jurisdiction to hold
nominal interests in
Metalla's subsidiaries in that jurisdiction;
the
volatility of the
stock
market;
that existing securityholders
may be diluted;
risks related to Metalla
'
s public disclosure
obligations;
risks associated with
future sales or issuances of debt or
equity securities; risks associated
with the Company
'
s loan facility;
that there can be no assurance that an active
trading
market for
Metalla
'
s securities will be sustained;
risks related to the enforcement of civil judgments against Metalla;
risks
relating to Metalla
potentially being a passive
"
foreign investment company
"
within the meaning
of
U.S. federal tax
laws; and the other risks and uncertainties disclosed
under the heading
"
Risk Factors
"
in
the Company
'
s most recent Annual
Information Form, annual report on Form 40-F and other documents
filed with
or submitted to the Canadian securities
regulatory authorities on the SEDAR website at
www.sedar.com
and the U.S. Securities and Exchange
Commission on the
EDGAR website at
www.sec.gov
. Although we have attempted to identify important factors that could cause actual actions,
events
or results to differ materially from those described in forward-looking statements, there may be
other factors that cause
actions, events or results not to
be as anticipated, estimated or intended. There
can be no assurance that forward-looking
statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such
statements. Accordingly, readers
should not place undue reliance on forward-
looking statements. We are under no obligation
to update or
alter any forward-looking statements except as required under applicable securities laws.
For the reasons
set forth
above, undue reliance should not be placed on forward-looking statements.
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SOURCE
Metalla Royalty and Streaming Ltd.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/August2023/11/c1301.html
%SEDAR: 00005157E
For further information:
Metalla Royalty & Streaming Ltd., Brett Heath, President & CEO, Phone: 604-696-0741, Email: [email protected];
Kristina Pillon, Investor Relations, Phone: 604-908-1695, Email: [email protected], Website: www.metallaroyalty.com
CO: Metalla Royalty and Streaming Ltd.
CNW 16:45e 11-AUG-23