Metalla Reports Financial Results FOR the Second Quarter of 2024 and Provides Asset Updates
METALLA REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2024
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)
FOR IMMEDIATE RELEASE TSXV: MTA
NYSE American: MTA
August 14, 2024
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 4. 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, 2024, please see the Company's filings on SEDAR + (www.sedarplus.ca)
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, " We’re making significant progress at
Metalla. We recently strengthened our leadership team with the appointment of Jason Cho as
President. Additionally, Tocantinzinho and La Guitarra achieved first production, and Côté
reached commercial production. We believe these milestones are catalysts for Metalla’s growth
trajectory starting in the second half of this year. Furthermore, we introduced our inaugural asset
handbook, showcasing details on our over 100 royalty and streaming assets.”
COMPANY HIGHLIGHTS
Below are some of the key Company highlights for the six months ended June 30, 2024 , and
subsequent period.
• On July 15, 2024, Metalla published its inaugural Asset Handbook outlining the Company’s
gold, silver, and copper royalties and streams. The Asset Handbook is available on the
Company’s website;
• On July 24, 2024, the Company announced the appointment of Jason Cho as President
of the Company. Concurrent with his appointment, Mr. Cho made a C$1.0 million equity
investment into the Company, for the acquisition of 250,000 common shares of the
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Company (“ Common Shares ”) at C$4.00 per Common S hare by way of private
placement (the “Placement”). The Placement closed on August 9, 2024;
• On July 10, 2024, the Company reported that G Mining Ventures Corp (“ G Mining ”)
announced the first gold pour at the Tocantinzinho gold project in the State of Pará, Brazil,
where Metalla holds a 0.75% GVR royalty;
• For the three months ended June 30, 2024, the Company received or accrued payments
on 401 attributable Gold Equivalent Ounces (“ GEOs”) at an average realized price of
$2,332 and an average cash cost of $17 per attributable GEO (see Non-IFRS Financial
Measures). For the six months ended June 30, 2024, the Company received or accrued
payments on 1,025 attributable GEOs at an average realized price of $2,173 and an
average cash cost of $12 per attributable GEO (see Non-IFRS Financial Measures);
• For the three months ended June 30, 2024, the Company recognized revenue from royalty
and stream interests, including fixed royalty payments, of $0.9 million, net loss of $1.5 million,
and Adjusted EBITDA of $0. 2 million (see Non-IFRS Financial Measures). For the six months
ended June 30, 2024, the Company recognized revenue from royalty and stream interests,
including fixed royalty payments, of $2.1 million, net loss of $3.2 million, and Adjusted EBITDA
of $0.2 million (see Non-IFRS Financial Measures);
• For the three months ended June 30, 2024, the Company generated operating cash
margin of $2,315 per attributable GEO, and for the six months ended June 30, 2024, the
Company generated operating cash margin of $2,161 per attributable GEO from the
Wharf, El Realito, Aranzazu, La Encantada, the New Luika Gold Mine (“NLGM”) stream held
by Silverback Ltd. (“ Silverback”), and other royalty interests (see Non -IFRS Financial
Measures);
• On February 20, 2024, Beedie Investments Ltd. (“Beedie”) elected to convert C$1.5 million
of the accrued and unpaid interest under the existing convertible loan facility between
Metalla and Beedie (the “Convertible Loan Facility”) into Common Shares at a conversion
price of C$3.49 per Common Share, being the closing price of the shares of Metalla on the
TSX-V on February 20, 2024, for a total of 429,800 Common Shares which were issued on
March 19, 2024;
• On June 28, 2024, 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 2022; and
• Effective August 8, 2024, the Company adopted a minimum share ownership policy
applicable to directors and officers of the Company in order to further align the financial
interest of Metalla’s leadership with the Company’s shareholders. The policy require s,
subject to various provisions, that: (i) the CEO own Common Shares with a fair market value
equal to five times his annual base salary; (ii) the CFO and other officers own Common
Shares with a fair market value equal to two times their annual base salar y; and (iii) non-
executive directors own Common Shares with a fair market value equal to two times their
annual cash retainer. Directors and officers will have three years to ensure they are in
compliance with the newly adopted policy.
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ASSET UPDATES
Below are updates for the three months ended June 30, 2024, and subsequent period to certain
of the Company’s assets, based on information publicly filed by the applicable project owner:
La Encantada
On July 18, 2024, First Majestic Silver Corp. (“ First Majestic”) announced production of 46 oz of
gold from La Encantada in the second quarter of 2024. Since successfully identifying a water
source in the first quarter, First Majestic announced ore processing throughput has increased for
the quarter and expects plant ore throughput rates to return to the historical levels of 3,000 tpd in
the third quarter of 2024. First Majestic also stated that the 2024 exploration program had
commenced during the second quarter after securing the new water source with one surface rig
completing 607 meters of drilling on the property.
Metalla accrued 16 GEOs from La Encantada for the second quarter of 2024.
Metalla holds a 100% GVR royalty on gold produced at the La Encantada mine limited to 1.0 Koz
annually.
El Realito
On July 31, 2024, Agnico Eagle Mines Ltd. (“Agnico”) reported that gold production from La India
totaled 6.1 Koz for the second quarter of 2024. Agnico stated that production is expected to
come from residual leaching of the heap leach pads and is expected to continue through year-
end 2024.
Metalla accrued 60 GEOs from El Realito for the second quarter of 2024.
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
On August 7, 2024, Coeur Mining Inc. (“Coeur”) reported 2024 second quarter production of 22.0
Koz gold and continues to reiterate the full year guidance for 2024 at Wharf of 86 – 96 Koz gold.
Coeur noted that recently completed studies at two areas within existing and historical mining
zones at Wharf have identified opportunities to meaningfully extend mine life. Supplement al
funding has been approved for a two-phase drill program in 2024 and 2025 to test the two targets,
Juno and North Foley.
Metalla accrued 101 GEOs from Wharf for the second quarter of 2024.
Metalla holds a 1.0% GVR royalty on the Wharf mine.
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Aranzazu
On July 9, 2024, Aura Minerals Inc. (“ Aura”) announced the second quarter 2024 production at
Aranzazu totaled 24,692 GEOs ( as defined by Aranzazu ), while continuing to reiterate 2024
guidance for Aranzazu, which it had disclosed on February 20, 2024, of 94 -108 Koz GEOs ( as
defined by Aranzazu).
Metalla accrued 197 GEOs from Aranzazu for the second quarter of 2024.
Metalla holds a 1.0% NSR royalty on the Aranzazu mine.
Endeavor
On August 5, 2024, Polymetals Resources Ltd. (“ Polymetals”) announced by news release an
improved 10-year Endeavor mine plan that increased proved and probable mineral reserves (as
such terms are used and defined by the JORC code) by 45% from an estimate announced by
them in October 2023, and that first production is expected in H1-2025. Polymetals also disclosed
it has commenced refurbishment works related to underground infrastructure and plans to ramp
up refurbishment activities upon finalization of project financing.
Figure 1: Endeavor Forecasted Revenue, OPEX and Capex (Source: Polymetals press release dated August 5, 2024)
Metalla holds a 4.0% NSR royalty on lead, zinc and silver produced from Endeavor.
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Tocantinzinho
On July 9, 2024, G Mining announced the first gold pour at Tocantinzinho. G Mining stated that it
expects to achieve commercial production and ramp up to nameplate capacity of 4.7 Mtpa in
the second half of 2024. In addition, G Mining stated that at the end of June, approximately 2.6
Mt of ore, containing 78 Koz gold was stockpiled, ahead of the processing plant ramp up.
Metalla holds a 0.75% GVR royalty on Tocantinzinho.
La Guitarra
On July 30, 2024, Sierra Madre Gold & Silver Ltd. (“ Sierra Madre”) announced the first shipments
of silver and gold concentrates from La Guitarra. Sierra Madre shipped 90.68 dry metric tonnes of
concentrate at 3000 g/t silver and 30 g/t gold with another ~90 dry tonnes of concentrate to be
shipped soon after. Sierra Madre plans to continue to increase production with a goal of reaching
500 tpd of throughput for approximately 350 dry tonnes of concentrate per month by year-end.
Metalla holds a 2.0% NSR Royalty on La Guitarra, subject to a 1.0% buyback for $2.0 million.
Côté-Gosselin
On August 8, 2024, IAMGOLD Corporation (“ IAMGOLD”) reported that approximately 11,600
meters and 22,900 meters of drilling were completed in the three and six months ended June 30,
2024, respectively, testing different areas of the Gosselin deposit extensions and to test the gap
between the Gosselin West Breccia body and the Côté Breccia at depth. IAMGOLD also stated
that the 2024 Côté gold production is expected to be at the lower end of guidance of 220 Koz –
290 Koz.
On August 2, 2024, IAMGOLD announced commercial production at the Côté Gold Mine after
achieving a minimum of 30 consecutive days of operating during which the mill operated at an
average of 60% of nameplate throughput of 36,000 tpd.
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.
Taca Taca
On July 23, 2024, First Quantum Minerals Ltd. (“First Quantum”) stated in their Q2 2024 MD&A that
the Environmental and Social Impact Assessment (“ESIA”) for the Taca Taca project continues to
be reviewed by the Salta Province Secretariat of Mining and First Quantum remains optimistic it
will be approved in 2024. Additionally, First Quantum continued progressing the technical aspects
of the 345-kilovolt power line required for the ESIA. During the quarter, First Quantum continued
progressing local community informative meetings and Phase IV of the bore field industrial water
supply program aimed at examining potential deeper sources of water for the mine.
First Quantum also noted the Argentinian President, Javier Milei, has pushed a new bill to congress
offering special incentives for large investments in certain sectors including mining. The bill was
enacted into law by the executive branch of the Argentinian government on July 8, 2024.
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Metalla holds a 0.42% NSR royalty on Taca Taca subject to a buyback based on the amount of
Proven Reserves in a feasibility study multiplied by the prevailing market prices of all applicable
commodities.
Amalgamated Kirkland and North AK
On July 31, 2024, Agnico announced production for the Near Surface deposit continued in the
second quarter of 2024, with volume of ore mined and milled exceeding planned targets. On
April 25, 2024, Agnico announced the development for the AK deposit is on track for initial
production in the fourth quarter of 2024. Infill drilling at the AK deposit intersected a highlight
intercept of 11.8 g/t gold over 5.0 meters in the eastern shallow portion of the AK deposit.
On February 15, 2024, Agnico announced that production from the Near Surface deposits is
planned to be processed at the Macassa mill in the first half of 2024 and at the La Ronde Zone 5
mill in the second half of 2024. Production from the AK deposit, which is expected to begin in the
second half of 2024 is planned to be processed at the La Ronde facility. Production from the two
deposits is forecast by Agnico to be ~19 Koz in 2024 and between 35 – 50 Koz gold from 2025 to
2028 and Agnico believes that the A K area remains prospective for future mineral resource
growth. Additionally, Agnico reported an updated Mineral Reserve estimates of 160 Koz of
Probable Reserves at 6.69 g/t gold and updated Mineral Resource estimates of 37 Koz of
Indicated Resources at 6.95 g/t gold, and 52 Koz of Inferred Resources at 5.69 g/t gold.
Metalla holds a 0.45% NSR royalty on the Amalgamated Kirkland and North AK properties.
Wasamac
On April 25, 2024, Agnico reported that stakeholder engagement initiatives continue to advance,
while assessing the optimal mining rate and processing options for Wasamac. On February 15,
2024, Agnico reported the results of the 2023 infill and conversion drilling completed at Wasamac
with highlight intercepts of 4.9 g/t gold over 13.4 meters, 2.8 g/t gold over 18.8 meters and 4.4 g/t
gold over 3.9 meters in the main zone. At the Wildcat zone, significant highlights include 3.6 g/t
gold over 20.6 meters and 5.6 g/t golds over 4.1 meters. Agnico plans to spend $2.8 million for
16,700 meters of drilling at Wasamac in 2024 and continues to assess various scenarios to define
the optimal mining rate and milling strategy for Wasamac.
Metalla holds a 1.5% NSR royalty on the Wasamac project subject to a buyback of 0.5% for C$7.5
million.
Castle Mountain
On August 7, 2024, Equinox Gold Corp. (“Equinox”) reported in their Q2 2024 MD&A that a surface
exploration program of geological mapping and channel sampling at Castle Mountain is
expected to commence in Q3 2024, with the primary goal to sample previously identified
mineralization exposed on surface s uch that data can be used in future mineral resource
estimation. Equinox also reported that the mine permitting amendment plan was submitted to
the lead county and BLM agencies which reviewed the plan for completeness in early 2023.
Equinox received the BLM determination that the plan was complete in Q1 2024 and expects to
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receive the notice of intent in H2 2024, upon which the formal permitting process will begin. Work
on the preliminary draft Environmental Impact Statement will occur throughout 2024 and 2025
upon creation of a memorandum of understanding with the BLM, San Bernardino County and
Castle Mountain.
Metalla holds a 5.0% NSR royalty on the South Domes area of the Castle Mountain mine.
Akasaba West
On April 25, 2024, Agnico announced Akasaba West achieved commercial production on
February 1, 2024. Akasaba West is expected to provide flexibility at the Goldex complex,
contributing 1,750 tpd grading 0.84 g/t gold and 0.48% copper. On February 15, 2024, Agnico
announced that Akasaba West is expected to contribute approximately 12 Koz of gold and 2.3
Kt of copper per year.
Metalla holds a 2.0% NSR royalty on the Akasaba West project subject to a 210 Koz gold
exemption.
La Parrilla
On June 24, 2024, Silver Storm Mining Ltd. (“ Silver Storm”) released highlighted intercepts from
drilling at La Parrilla of 504 g/t AgEq over 5.14 meters and 367 g/t AgEq over 2.63 meters in San
Marcos South. At San Marcos North, Silver Storm released highlight intercepts of 405 g/t AgEq over
1 meter and 191 g/t AgEq over 3.25 meters.
In a corporate presentation dated June 2024, Silver Storm also laid out its plan to release a
technical study and mine plan in Q4 2024 to support future restart of mining and processing with
a target of Q3 2025.
Metalla holds a 2.0% NSR royalty on La Parrilla.
San Luis
On July 29, 2024, Highlander Silver Corp. reported the start of field activities at San Luis, including
geological mapping and sampling.
Metalla holds a 1.0% NSR royalty on San Luis.
Fifteen Mile Stream
On April 24, 2024, St. Barbara Limited (“St. Barbara”) reported that significant progress was made
in updating the environmental and social impact studies for Fifteen Mile Stream, with community
consultations progressing. On October 10, 2023, St. Barbara reported results of an updated Pre -
Feasibility Study (“ PFS”) for Fifteen Mile Stream. The PFS proposes an eleven -year mine life
producing an average of 55-60 Koz per annum at a cash cost of $992/oz. St. Barbara has stated
that development could begin as early as 2026.
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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.
Montclerg
On May 29, 2024, GFG Resources Inc. reported that it is currently advancing the geological model
at the Montclerg deposit to identify areas for resource expansion and additional stand -along
targets. The Lower Footwall zone has shown strong down-dip continuity with the most recent and
deepest drillhole intercepts grading 4.79 g/t Au over 12.8 meters and 10.05 g/t Au over 4.3 meters.
Metalla holds a 1.0% NSR royalty on the Montclerg property.
Detour DNA
On June 19, 2024, Agnico reported the results of a technical study reflecting the potential for a
concurrent underground operation yielding 300 Koz gold per year at Detour Lake.
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.
SECURITIES LAWS MATTERS
The proceeds of the Placement will be used for general working capital purposes. The Common
Shares issued under the Placement are subject to a statutory hold period of four months and a
day from issuance, in accordance with applicable Canadian securities laws.
Jason Cho is an insider and related party of Metalla, and therefore his participation in the
Placement is considered a “related party transaction” subject to Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special Transactions ( “MI 61 -101”). The Company is
relying on exemptions from the formal valuation and minority shareholder approval requirements
provided under subsections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that participation in the
Placement by an insider did not exceed 25% of the Company’s market capitalization. The
Company did not file a material change report more than 21 days before the expected closing
date of the Placement as the details of the Placement were not settled until shortly prior to the
closing of the Placement, and the Company wished to close the Placement on an expedited
basis for sound business reasons.