Metalla Reports Financial Results FOR the Third Quarter of 2024 and Provides Asset Updates
METALLA REPORTS FINANCIAL RESULTS FOR THE THIRD 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
November 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 nine months
ended September 30, 2024. For complete details of the condensed interim consolidated financial
statements and accompanying management's discussion and analysis for the three and nine
months ended September 30, 202 4, 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, CEO of Metalla, commented, "This is a pivotal moment for the Company. In the third
quarter, we achieved a major milestone by receiving our first royalty payments from
Tocantinzinho and La Guitarra, both of which we expect to continue scaling production to full
capacity in the fourth quarter and into 2025. Looking forward, we anticipate Amalgamated
Kirkland and Endeavor will begin production in Q4 2024 and H1 2025, respectively, accelerating
our GEO growth trajectory through the next year, with several additional assets expected to
reach production between 2025 and 2028.”
COMPANY HIGHLIGHTS
Below are key Company highlights for the three and nine months ended September 30, 2024:
• For the three months ended September 30, 2024 , the Company received or accrued
payments on 648 attributable Gold Equivalent Ounces (“ GEOs”) at an average realized
price of $2, 481 and an average cash cost of $9 per attributable GEO (see Non -IFRS
Financial Measures) . For the nine months ended September 30, 2024 , the Company
received or accrued payments on 1, 673 attributable GEOs at an average realized price
of $2,292 and an average cash cost of $1 1 per attributable GEO (see Non-IFRS Financial
Measures);
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• For the three months ended September 30, 2024, the Company recognized revenue from
royalty and stream interests, including fixed royalty payments, of $ 1.6 million, net loss of
$1.2 million, and Adjusted EBITDA of $0.9 million (see Non-IFRS Financial Measures). For the
nine months ended September 30, 2024 , the Company recognized revenue from royalty
and stream interests, including fixed royalty payments, of $3.8 million, net loss of $4.4 million,
and Adjusted EBITDA of $1.2 million (see Non-IFRS Financial Measures);
• For the three months ended September 30, 2024, the Company generated operating cash
margin of $ 2,472 per attributable GEO, and for the nine months ended September 30,
2024, the Company generated operating cash margin of $2,281 per attributable GEO from
the Wharf, Tocantinzinho, El Realito, Aranzazu, La Encantada, La Guitarra, the New Luika
Gold Mine (“NLGM”) stream held by Silverback Ltd., and other royalty interests (see Non-
IFRS Financial Measures);
• On September 3, 2024, G Mining Ventures Corp. (“G Mining”) announced it had achieved
commercial production at Tocantinzinho with the mill operating at 76% of nameplate
throughput (9,817 tonnes per day (“tpd”)), processing a total of 304 kilotonnes (“Kt”) of ore
at a recovery rate of 88%. G Mining expects to continue to ramp up production through
H2-2024, targeting nameplate throughput of 12,890 tpd by Q1 -2025. G Mining disclosed
that commercial production was reached at Tocantinzinho on time and on budget;
• On July 30, 2024, Sierra Madre Gold & Silver Ltd. (“ Sierra Madre ”) announced the first
shipments of silver and gold concentrates from La Guitarra;
• On July 24, 2024, the Company announced the appointment of Jason Cho as President
of the Company. Concurrently 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
Company (“ Common Shares ”) at C$4.00 per Common S hare by way of private
placement which closed on August 9, 2024;
• 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 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 requires,
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 salary; 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 September 30, 2024 , and subsequent period to
certain of the Company’s assets , based on information publicly filed by the applicable project
owner:
Tocantinzinho
On September 3, 2024, G Mining announced it had achieved commercial production at the
Tocantinzinho gold project with the mill operating at 76% of nameplate throughput (9,817 tpd),
processing a total of 304 Kt of ore at a recovery rate of 88%. G Mining expects to continue to
ramp up production through H2-2024, targeting nameplate throughput of 12,890 tpd by Q1-2025.
G Mining disclosed that commercial production has been reached at Tocantinzinho on time and
on budget.
Metalla accrued 67 GEOs from Tocantinzinho for the third quarter of 2024.
Metalla holds a 0.75% GVR royalty on Tocantinzinho.
Wharf
On November 6, 2024, Coeur Mining , Inc. (“Coeur”) reported 2024 third quarter production of
33.7 Koz gold and continues to reiterate the full year guidance for 2024 at Wharf of 86 – 96 Koz
gold. Exploration investment during the quarter totaled $2 million focused on an expanded drill
program to meaningfully extend the mine life at Wharf. Two rigs were active during the quarter
at Juno and North Foley deposits undertaking infill and expansion drilling.
Metalla accrued 268 GEOs from Wharf for the third quarter of 2024.
Metalla holds a 1.0% GVR royalty on the Wharf mine.
Aranzazu
On November 4, 2024, Aura Minerals Inc. (“ Aura”) announced third quarter 2024 production at
Aranzazu totaled 24,486 GEOs (as defined by Aura), while continuing to reiterate 2024 guidance
for Aranzazu, which it had disclosed on February 20, 2024, of 94 -108 Koz GEOs (as defined by
Aura).
During the third quarter, Aura reported a total of 8,405 mete rs of drilling was completed in the
Glory Hole, Esperanza, and La Apuesta zones. At Glory Hole, exploration focused on resource
conversion drilling to upgrade Mineral Resources from Inferred to Indicated, with highlight results
of 0.86% copper and 0.26 g/t gold over 6 meters. At Esperanza, drilling continued to extend
mineralization down dip of the skarn body with highlight intercept of 0.75% copper and 0.32 g/t
gold over 30 meters.
Metalla accrued 196 GEOs from Aranzazu for the third quarter of 2024.
Metalla holds a 1.0% NSR royalty on the Aranzazu mine.
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El Realito
On October 30, 2024, Agnico Eagle Mines Ltd. (“Agnico”) reported that gold production from La
India totaled 4.5 Koz for the third 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 36 GEOs from El Realito for the third 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.
La Guitarra
On September 24, 2024, Sierra Madre announced that daily throughput rates of silver and gold
mineralization have averaged 350 tpd over the past 30 days, generating in excess of $2.4 million
in revenue since the commencement of mining at the La Guitarra complex.
On July 30, 2024, 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 s hipped 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 accrued 20 GEOs from La Guitarra for the third quarter of 2024.
Metalla holds a 2.0% NSR Royalty on La Guitarra, subject to a 1.0% buyback for $2.0 million.
La Encantada
On October 17, 2024, First Majestic Silver Corp. (“First Majestic”) announced production of 59 oz
of gold from La Encantada in the third quarter of 2024. Since successfully identifying a water
source in the first quarter, First Majestic announced ore processing throughput has reached
capacity by the end of the quarter and expects Q4 production to revert to historical levels. During
the quarter, two surface drill rigs completed 1,862 meters of drilling on the property.
Metalla accrued 34 GEOs from La Encantada for the third quarter of 2024.
Metalla holds a 100% GVR royalty on gold produced at the La Encantada mine limited to 1.0 Koz
annually.
Côté-Gosselin
On October 15, 2024, IAMGOLD Corporation (“ IAMGOLD”) announced diamond drill results
outlining the successful extension of mineralization outside of the Gosselin December 31, 2023
Mineral Resource pit shell. Key extensions have been intersected south and west of the Gosselin
West Breccia, and at depth bet ween the Côté and Gosselin West Breccia in an attempt to
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connect the two zones. Highlights of the Gosselin drill program include: 0.96 g/t gold over 368.8
meters; 2.7 g/t gold over 235 meters; 1.1 g/t gold over 357 meters; 1.19 g/t gold over 201 meters.
On February 15, 2024, IAMGOLD announced the updated Gosselin mineral resource estimate of
4.4 million Indicated gold ounces at 0.85 g/t and 3.0 million Inferred gold ounces at 0.75 g/t.
Exploration drilling for the remainder of 2024 will continue to target mineralization beneath both
Gosselin and Côté.
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 August 29, 2024, Salta Gobierno (Government of the Province of Salta), announced through
a press release that a Representative for International Relations of Salta, Julio Argentino San
Millán, along with the Secretary of Industry and Commerce of the Pro vince of Salta, Nicolás
Avellaneda, held a meeting with the General Manager of the Taca Taca Project from First
Quantum Minerals Ltd. (“ First Quantum ”), John Dean, the Manager of Administration and
Finance, Germán Pérez and the Head of Purchasing and Logistics, Martín Guzmán. This meeting,
where they discussed the progress of the Taca Taca copper project, took place within the
framework of Argentina Mining 2024, an international mining sector event held at the Convention
Center in the Province of Salta. John Dean, the General Manager of the Taca Taca Project,
emphasized that Argentina’s new macroeconomic reality provides a favorable environment to
develop this important project, noting that its execution in the Province will begin in 2025.1
The press release stated that First Quantum expressed that the Incentive Regime for Large
Investments (RIGI) is timely and beneficial, as it establishes a regulatory framework that
encourages and increases investment flows into Argentina. First Quantum als o stated that it
would take advantage of this new regime and disclosed that it is looking for a minority
shareholder partner to help construct the Taca Taca Project.1
On October 22, 2024, First Quantum stated in its Q3 2024 MD&A that the primary Environmental
and Social Impact Assessment for the Taca Taca Project continues to be under evaluation by the
Secretariat of Mining of Salta Province and First Quantum stated they remain optimistic about
securing its approval in 2024.
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.
Endeavor
On September 16, 2024, Polymetals Resources Ltd. (“ Polymetals”) announced it had secured a
$20 million pre -payment/loan facility to fully fund the Endeavor restart along with favorable
offtake terms for delivery of zinc and silver/lead concentrates.
Polymetals reiterated that the Endeavor mine is on track to be restarted with first cashflows
expected in H1-2025. Polymetals announced an updated Endeavor mine plan on August 5, 2024,
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with a Pre-tax NPV8% of A$414 million, Internal Rate of Return of 345% and free cash flow A$609
million over the 10-year mine plan, with average annual EBITDA of $89 million over the first 5 years.
On October 9, 2024, Polymetals announced the results from recent drilling completed at
Endeavor. Key intercepts include 517 g/t silver -equivalent (“AgEq”) (as defined by Polymetals)
over 67.1 meters and 551 g/t AgEq over 53.8 meters, outlining the potential for increased ore
extraction rates from the Upper North Lode at Endeavor.
Metalla holds a 4.0% NSR royalty on lead, zinc and silver produced from Endeavor.
Copper World
On August 29, 2024, Hudbay Minerals Inc. (“ Hudbay”) announced receipt of the Aquifer
Protection Permit for Copper World. Hudbay stated the issuance of this permit is a key milestone
in the advancement of Copper World, which is a standalone operation requiring only state and
local permits and is expected to produce 85 Kt of copper per year over a 20-year mine life. The
Aquifer Protection Permit represents the second of three key state -level permits required to
advance the project towards a construction decision. Hudbay has also completed the last permit
application required, an Air Quality Permit, which was submitted in late 2022, and includes a
public comment period scheduled to conclude in September 2024.
With receipt of the Aquifer Permit, Hudbay plans to commence activities related to the
preparation of definitive feasibility studies for Copper World, allocating $25 million in capital
spending in 2024. Hudbay intends to commence a process to identify a mi nority joint venture
partner after receiving its last outstanding permit and sees potential to advance Copper World
to a final investment decision in early 2026.
Metalla holds a 0.315% NSR royalty on Copper World with the right of first refusal to acquire an
additional 0.360% of the NSR royalty.
Joaquin
On October 11, 2024, Unico Silver Limited (“Unico”) announced the completion of the acquisition
of Joaquin from Pan American Silver Corporation. From 2019 -2022, Joaquin produced 4.3 Moz
AgEq (as defined by Unico) at 410 g/t with ore trucked 145 kilometers to the Manantial Espejo
mine.
Joaquin contains a historic foreign estimate in the Measured and Indicated categories of 70.1
Moz AgEq at 138 g/t and in the Inferred category of 3.3 Moz AgEq at 110 g/t in the La Negra and
La Marocha deposits. Unico is planning a comprehensive exploration program on four advanced
prospects, aiming to publish an initial JORC (2012) Mineral Resource Estimate in H1-2025.2
Unico outlined there are several historical drill holes that fall outside the historic resource with
highlighted intercepts of 1,699 g/t silver & 22 g/t gold over 4.5 meters and 99 g/t silver & 0.4 g/t
gold over 8.6 meters.
Metalla holds a 2.0% NSR royalty on Joaquin.
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Amalgamated Kirkland and North AK
On October 30, 2024, Agnico announced step out drilling into the shallow eastern extension of
AK deposit intersected a highlight intercept of 7.7 g/t gold over 5.7 meters and 11.8 g/t gold over
1.9 meters.
Metalla holds a 0.45% NSR royalty on the Amalgamated Kirkland and North AK properties.
CentroGold
On September 9, 2024, G Mining announced that it has entered into a purchase and sale
agreement to acquire CentroGold from BHP for a 1.0% NSR royalty on the first million ounces of
gold produced and a 1.5% NSR royalty interest thereafter.
G Mining disclosed that it intends to build on CentroGold’s existing geological model and
redesign CentroGold from first principles to better align with permitting requirements and
economic landscape. G Mining also intends to update CentroGold’s JORC historic estimate, of
1.7 million ounces of indicated and 0.6 million ounces of inferred, to NI 43-101 disclosure standards
shortly after closing, which is expected to take place in Q1-2025 following regulatory approvals.3
Metalla holds a 1.0% NSR royalty on the first 500 koz of production, 2.0% NSR royalty on the next 1
Moz, and 1.0% NSR royalty thereafter on the CentroGold project.
Fosterville
On October 30, 2024, Agnico reported that Fosterville produced 65.5 Koz of gold in the third
quarter of 2024. Agnico continues to focus on productivity gains and cost control at the mine
and the mill to maximize throughput as gold grades continue to decline with the depletion of the
Swan zone. Exploration in the third quarter focused on extensions of Mineral Reserves and Mineral
Resources at the Lower Phoenix area. Highlight intervals in the Cardinal structure approximately
100 meters down-plunge and to the south of current Mineral Reserves include 72.8 g/t gold over
5.7 meters with visible gold and 6.8 g/t gold over 3.2 meters.
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.
Fifteen Mile Stream
On October 10, 2024, St. Barbara Limited (“St. Barbara”) reported an updated Pre-Feasibility Study
(“PFS”) for the 15 -Mile and Beaver Dam projects. Key highlights from the PFS include average
annual gold production of 74 Koz per year over the 11 -year mine life at all -in sustaining cost of
$1,025 per ounce. The project will utilize existing infrastructure and equipment from the Touquoy
mine, allowing for a 2-month construction period.
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.
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Castle Mountain
On November 6, 2024, Equinox Gold Corp. (“Equinox”) reported in their Q3 2024 MD&A 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 receive the notice of intent in Q1 2025, which
commences the formal permitting process. Work on the preliminary draft Environmental Impact
Statement will occur throughout 2025 and 2026 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.
Notes
1: For more information, please view the Salta Gobierno’s August 29, 2024 Press Release.
2: For more information, please view Unico’s August 20, 2024 Press Release and October 11, 2024 Press Release.
3: For more information, please view G Mining’s September 9, 2024 Press Release.