METALLA REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2024 AND PROVIDES ASSET UPDATES
(All dollar amounts are in thousands of
TSXV: MTA
NYSE American: MTA
FINANCIAL HIGHLIGHTS
During the three months ended
- Received or accrued payments on 624 attributable Gold Equivalent Ounces ("GEOs") at an average realized price of
$2,069 and an average cash cost of$8 per attributable GEO (see Non-IFRS Financial Measures); - Recognized revenue from royalty and stream interests, including fixed royalty payments, of
$1.3 million , net loss of$1.7 million , and Adjusted EBITDA of$0.1 million (see Non-IFRS Financial Measures); - Generated operating cash margin of
$2,061 per attributable GEO from the Wharf, El Realito, Aranzazu, La Encantada, theNew Luika Gold Mine ("NLGM") stream held bySilverback Ltd. ("Silverback"), and other royalty interests (see Non-IFRS Financial Measures); and - On
February 20, 2024 ,Beedie Investments Ltd. ("Beedie") elected to convertC$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 ofC$3.49 per share, being the closing price of the shares of Metalla on the TSX-V onFebruary 20, 2024 , for a total of 429,800 Common Shares which were issued onMarch 19, 2024 .
ASSET UPDATES
Below are updates during the three months ended
La Encantada
On
Metalla accrued 48 GEOs from La Encantada for the first 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
Metalla accrued 177 GEOs from El Realito for the first 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
Wharf
On
Metalla accrued 173 GEOs from Wharf for the first quarter of 2024.
Metalla holds a 1.0% GVR royalty on the Wharf mine.
Aranzazu
On
Metalla accrued 200 GEOs from Aranzazu for the first quarter of 2024.
Metalla holds a 1.0% NSR royalty on the Aranzazu mine.
New Luika
On
Metalla accrued 26 GEOs from NLGM for the first quarter of 2024.
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.
Côté-Gosselin
In a news release dated
On its news release dated
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.
On
Metalla holds a 0.42% NSR royalty on
On
In 2024, Agnico also stated it expects to spend
Metalla holds a 2.5% GVR royalty on the northern and southern extensions of the
Endeavor
On
On
Metalla holds a 4.0% NSR royalty on lead, zinc and silver produced from Endeavor.
Amalgamated
On
On
Metalla holds a 0.45% NSR royalty on the Amalgamated Kirkland and North AK properties.
Tocantinzinho
On
Metalla holds a 0.75% GVR royalty on Tocantinzinho.
Wasamac
On
Metalla holds a 1.5% NSR royalty on the Wasamac project subject to a buyback of 0.5% for
On
Metalla holds a 5.0% NSR royalty on the South Domes area of the
Akasaba West
On
Metalla holds a 2.0% NSR royalty on the Akasaba West project subject to a 210 Koz gold exemption.
La Guitarra
On
Metalla holds a 2.0% NSR Royalty on La Guitarra, subject to a 1.0% buyback for
La Parrilla
Through multiple press releases dated
Silver Storm also announced its plan to release a technical study and mine plan to support future restart of mining and processing with a target of mid-2025.
Metalla holds a 2.0% NSR royalty on La Parrilla.
Fifteen
On
Metalla holds a 1.0% NSR royalty on the Fifteen
Montclerg
On
Metalla holds a 1.0% NSR royalty on the Montclerg property.
Camflo
On
Metalla holds a 1.0% NSR royalty on the Camflo mine, located ~4km northeast of the Canadian Malartic operation.
Detour DNA
On
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.
QUALIFIED PERSON
The technical information contained in this news release has been reviewed and approved by
ABOUT METALLA
Metalla is a precious and base metals royalty and streaming company with a focus on gold, silver, and copper royalties and streams. Metalla provides shareholders with leveraged 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, silver, and copper companies for the next commodities cycle.
For further information, please visit our website at www.metallaroyalty.com
ON
(signed) "Brett Heath"
President and CEO
Website: www.metallaroyalty.com
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, calculated by taking the revenue earned by the Company in the period from payable gold, silver, copper and other metal ounces attributable to the Company divided by the average
Attributable GEOs during the period from: |
|
Wharf |
173 |
El Realito |
177 |
La Encantada |
48 |
Aranzazu |
200 |
NLGM |
26 |
Total attributable GEOs |
624 |
(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 the three months ended
Cost of sales for NLGM |
|
Total cash cost of sales |
5 |
Total attributable GEOs |
624 |
Average cash cost per attributable GEO |
|
(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, by the number of attributable GEOs. 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 months ended
Royalty revenue (excluding fixed royalty payments) |
|
Revenue from NLGM |
54 |
Sales from stream and royalty interests |
1,292 |
Total attributable GEOs sold |
624 |
Average realized price per attributable GEO |
|
(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 months ended
Net loss |
|
Adjusted for: |
|
Interest expense |
504 |
Finance charges |
85 |
Income tax provision |
10 |
Depletion |
763 |
Foreign exchange gain |
(101) |
Share-based payments |
549 |
Adjusted EBITDA |
|
(e) Adjusted working capital
Adjusted working capital is a non-IFRS measure which is calculated by taking the Company's current assets less its current liabilities, excluding the Convertible Loan Facility. The Company presents working capital, adjusted for the Convertible Loan Facility, as the classification of the Convertible Loan Facility as a current liability is driven by changes in classification requirements under IFRS and not because the Company expects that liability to be settled in cash within the next twelve months. The Company believes that the exclusion of the Convertible Loan Facility from adjusted working capital gives a more accurate picture of the liquidity of the Company. Adjusted working capital is not a standardized financial measure under IFRS and therefore may not be comparable to similar measures presented by other companies.
The Company's adjusted working capital as at
Total current assets |
|
Less: |
|
Total current liabilities |
(15,183) |
Working capital |
(2,161) |
Adjusted for: |
|
Convertible Loan Facility |
12,510 |
Adjusted working capital |
|
Refer the Company's MD&A for the three months ended
Technical and Third-Party Information
Metalla has limited, if any, access to the properties on which Metalla(or any of its subsidiaries) 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
" 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 future availability of funds, including drawdowns pursuant to the Convertible Loan Facility (as amended or supplemented); the effective interest rate of drawdowns under the Convertible Loan Facility (as amended or supplemented) and the life expectancy thereof; the future conversion of funds drawn down by Metalla under the Convertible Loan Facility (as amended or supplemented); the amount that Metalla has to pay under the Convertible Loan Facility and the applicable exchange rate; 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 improvement of ore throughput rates at La Encantada and the timing thereof; the expected 2024 production guidance at the La India deposit at El Realito; that production at El Realito will come from residual leaching of heap leach pads and will continue through year-end 2024; the expected 2024 production guidance at Wharf; the focus of the exploration efforts at Wharf in 2024; the expansion and infill drilling at the Juno deposit at Wharf; the drilling campaign in Aranzazu and the goal of increasing mineral reserves and resources; the expected 2024 production guidance at NLGM; the ramp up on the operation to commercial production at the Côté
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 two material assets, the Côté property and the Taca Taca 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 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 by 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
View original content to download multimedia:https://www.prnewswire.com/news-releases/metalla-reports-financial-results-for-the-first-quarter-of-2024-and-provides-asset-updates-302146859.html
SOURCE