GOLD ROYALTY REPORTS FIRST QUARTER 2024 RESULTS; RECORD REVENUE DRIVES POSITIVE OPERATING CASH FLOW
Our peer-leading long-term growth outlook and fundamentals continue to improve, driven primarily by Agnico Eagle's long-life large-scale
First Quarter 2024 Results Summary:
The following table sets forth selected financial information for the three months ended
|
|
For the three months ended |
||
|
|
2024 |
|
2023 |
(in thousands of dollars, except per share amounts) |
|
($) |
|
($) |
Revenue |
|
2,894 |
|
767 |
General, administrative and project evaluation costs |
|
(2,875) |
|
(3,424) |
Net loss |
|
(1,405) |
|
(3,083) |
Net loss per share, basic and diluted |
|
(0.01) |
|
(0.02) |
Cash provided by (used in) operating activities |
|
336 |
|
(2,061) |
Non-IFRS and Other Measures |
|
|
|
|
Total Revenue, Land Agreement Proceeds and Interest(1) |
|
4,185 |
|
1,970 |
Cash Operating Expenses(1) |
|
(2,260) |
|
(2,523) |
Adjusted Net Loss(1) |
|
(930) |
|
(1,318) |
Adjusted Net Loss Per Share, basic and diluted(1) |
|
(0.01) |
|
(0.01) |
Total Gold Equivalent Ounces ("GEOs")(1) |
|
2,019 |
|
1,043 |
(1) |
Total Revenue, Land Agreement Proceeds and Interest, Cash Operating Expenses, Adjusted Net Loss, Adjusted Net Loss Per Share, basic and diluted and Total GEOs are each non-IFRS measures and do not have a standardized meaning under IFRS. See "Non-IFRS Measures" for further information. |
For further detailed information, please refer to the Company's unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three months ended
First Quarter 2024 Highlights:
- Record quarterly revenue of
$2.9 million and record Total Revenue, Land Agreement Proceeds and Interest of$4.2 million (2,019 GEOs), which was 112% higher than the same period of 2023. Record quarterly revenue was driven by the first full quarter of revenue from the recently acquired interests in the Borborema project, royalty payments under the recently acquired Cozamin royalty interest and increased revenue from Canadian Malartic and land agreement proceeds. - Achieved its first quarter of positive cash flows from operations of
$0.3 million , which does not include an additional$1.1 million of land agreement proceeds credited against mineral properties. - Cost management initiatives resulted in a continued decrease in Cash Operating Expenses. Cash Operating Expenses decreased by 10% to
$2.3 million from$2.5 million in the same period of 2023. - Continued advancement at key development stage assets, including first gold pour at the Côté
Gold Mine , underground shaft and ramp development ahead of schedule at theOdyssey Mine , and construction at the Borborema project on track for production in early 2025. - Forged a strategic alliance with
Taurus Mining Royalty Fund L.P. which expands the Company's deal origination and identification in addition to improving its ability to compete for larger high-quality investments.
Portfolio Update
On
Agnico Eagle further outlined a summary of its first quarter operating results at the Odyssey mine. At the Barnat pit, good equipment availability and productivity, drove solid operational performance despite challenging weather conditions. At Odyssey South, the mining rate and production were slightly below plan at approximately 3,300 tpd and 17,700 ounces of gold, respectively. The underground operations are expected to gain additional flexibility in the second quarter of 2024, with the start of a second mining front and the addition of four 65 tonnes haulage trucks. Stope reconciliation at Odyssey South remains positive, primarily from the contribution of the internal zones, which resulted in approximately 16% more gold ounces produced than anticipated.
For further information see Agnico Eagle's news release dated
Côté
For further information see IAMGOLD's news release dated
For further information see Aura's news release dated
In its management's discussion and analysis for the three months ended
For further information see Barrick's management's discussion and analysis for the year ended
i-80 also announced on
For further information see i-80's news releases dated
On
For further information see Capstone's news releases dated
Royalty Generator Model Update
Our Royalty Generator Model continues to generate positive results with one new royalty added in the three months ended
We currently have 31 properties subject to land agreements and 6 properties under lease generating land agreement proceeds. The model continues to incur low operating costs with only
2024 Outlook
The Company remains on track to meet its previously disclosed forecast of between approximately 5,000 and 5,600 GEOs in 2024 which equates to approximately
The Company's recurring Cash Operating Expenses are currently expected to be consistent with 2023 and the Company expects to achieve positive operating cash flow in 2024 when a number of its growth projects ramp up in production, including the long-life cornerstone mines at Côté and Odyssey and a full year of cash inflows from the recently acquired Cozamin and Borborema royalties.
The 2024 outlook regarding total GEOs is based on public forecasts, expected development timelines and other disclosure by the owners and operators of the properties underlying our interests and our assessment thereof.
Investor Webcast
An investor webcast will be held on
To register for the Q1 2024 investor webcast, please click the link below: https://www.bigmarker.com/vid-conferences/GROY-2024-Q1-Results
A replay of the event will be available on the
About
Qualified Person
Alastair Still,
Notice to Investors
For further information regarding the project updates regarding properties underlying the Company's interests, please refer to the disclosures of the operators thereof, including the news releases referenced herein. Disclosure relating to properties in which
Unless otherwise indicated, the technical and scientific disclosure contained or referenced in this news release, including any references to mineral resources or mineral reserves, was prepared by the project operators in accordance with Canadian National Instrument 43-101, which differs significantly from the requirements of the
Forward-Looking Statements:
Certain of the information contained in this news release constitutes "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and
Non-IFRS Measures
The Company has included in this document, certain performance measures, including: (i) Adjusted Net Loss and Adjusted Net Loss Per Share; (ii) total GEOs; (iii) Total Revenue, Land Agreement Proceeds and Interest; and (iv) Cash Operating Expenses which are each non-IFRS measures. The presentation of such non-IFRS 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. These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently.
Adjusted Net Loss and Adjusted Net Loss Per Share
Adjusted Net Loss is calculated by adding back land agreement proceeds credited against mineral properties, loan interest earned on the gold-linked loan, convertible debentures-accretion, transaction related and non-recurring general administrative expenses* and share of loss and deducting the following from net loss: dilution income in associate, changes in fair value of derivative liabilities, embedded derivatives, short-term investments and gold-linked loan, gain on loan modification, foreign exchange gain (loss) and other income (expense). Adjusted Net Loss Per Share, basic and diluted have been determined by dividing the Adjusted Net Loss by the weighted average number of common shares for the applicable period. Management believes that they are useful measures of performance as they adjust for items which are not always reflective of the underlying operating performance of our business and/or are not necessarily indicative of future operating results. The following is a reconciliation of net loss to Adjusted Net Loss, Per Share, basic and diluted for the periods indicated:
|
|
For the three months ended |
||
|
|
2024 |
|
2023 |
(in thousands of dollars, except per share amounts) |
|
($) |
|
($) |
Net loss |
|
(1,405) |
|
(3,083) |
Land agreement proceeds credited against mineral properties |
|
1,050 |
|
1,203 |
Loan interest |
|
241 |
|
— |
Convertible debentures - accretion |
|
395 |
|
— |
Transaction related and non-recurring expenses |
|
95 |
|
459 |
Share of loss in associate |
|
52 |
|
128 |
Dilution gain in associate |
|
(9) |
|
— |
Change in fair value of derivative liabilities |
|
— |
|
(230) |
Change in fair value of gold-linked loan |
|
(639) |
|
— |
Change in fair value of short-term investments |
|
(101) |
|
(58) |
Change in fair value of embedded derivatives |
|
(191) |
|
— |
Foreign exchange (gain) loss |
|
(87) |
|
48 |
Loan modification (gain) loss |
|
(310) |
|
249 |
Other income |
|
(21) |
|
(34) |
Adjusted Net Loss |
|
(930) |
|
(1,318) |
Weighted average number of common shares |
|
145,778,698 |
|
144,289,573 |
Adjusted Net Loss per Share, basic and diluted |
|
(0.01) |
|
(0.01) |
* Transaction related, and non-recurring general administrative expenses comprised of operating expenses that are not expected to be incurred on an ongoing basis. During the quarter ended |
Total GEOs
Total GEOs are determined by dividing Total Revenue, Land Agreement Proceeds and Interest by the average gold prices for the applicable period:
(in thousands of dollars, except Average Gold Price/oz and GEOs) |
|
Average |
|
Total Revenue, Land Agreement |
|
GEOs |
For three months ended |
|
1,889 |
|
1,970 |
|
1,043 |
For three months ended |
|
2,072 |
|
4,185 |
|
2,019 |
Total Revenue, Land Agreement Proceeds and Interest
Total Revenue, Land Agreement Proceeds and Interest are determined by adding land agreement proceeds credited against mineral properties and interest received under the gold-linked loan. The Company has included this information as management believes certain investors use this information to evaluate our performance in comparison to other gold royalty companies in the precious metal mining industry. The following is a reconciliation of Total Revenue, Land Agreement Proceeds and Interest to total revenue for the three months ended
|
|
For the three months ended |
||
|
|
2024 |
|
2023 |
(in thousands of dollars) |
|
($) |
|
($) |
Royalty |
|
1,062 |
|
234 |
Advance minimum royalty and pre-production royalty |
|
830 |
|
331 |
Land agreement proceeds |
|
2,052 |
|
1,405 |
Loan interest |
|
241 |
|
— |
Total Revenue, Land Agreement Proceeds and Interest |
|
4,185 |
|
1,970 |
Land agreement proceeds credited against mineral properties |
|
(1,050) |
|
(1,203) |
Loan interest |
|
(241) |
|
— |
Revenue |
|
2,894 |
|
767 |
Cash Operating Expenses
Cash Operating Expenses are determined by deducting depreciation and share-based compensation from general, administrative and project evaluation costs. The Company has included this information as management believes certain investors use this information to evaluate our performance in comparison to other gold royalty companies in the precious metal mining industry. The following is a reconciliation of Cash Operating Expenses to general, administrative and project evaluation costs.
|
|
For the three months ended |
||
|
|
2024 |
|
2023 |
(in thousands of dollars) |
|
($) |
|
($) |
General and administrative costs |
|
(2,856) |
|
(3,251) |
Project evaluation costs |
|
(19) |
|
(173) |
General, administrative and project evaluation costs |
|
(2,875) |
|
(3,424) |
Depreciation |
|
20 |
|
21 |
Share-based compensation |
|
595 |
|
880 |
Cash Operating Expenses |
|
(2,260) |
|
(2,523) |
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