METALLA REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2025 AND PROVIDES ASSET UPDATES
(All dollar amounts are in thousands of
COMPANY HIGHLIGHTS
Below are key Company highlights for three months ended
- Received or accrued payments on 628 attributable Gold Equivalent Ounces ("GEOs") at an average realized price of
$2,855 and an average cash cost of$11 per attributable GEO (see Non-IFRS Financial Measures); - Recognized revenue from royalty and stream interests, including fixed royalty payments, of
$1.7 million , net loss of$0.7 million , and Adjusted EBITDA of$0.9 million (see Non-IFRS Financial Measures); - Generated operating cash margin of
$2,844 per attributable GEO from the Wharf, Tocantinzinho, Aranzazu, La Encantada, La Guitarra, theNew Luika Gold Mine ("NLGM") stream held bySilverback Ltd. , and other royalty interests (see Non-IFRS Financial Measures); and - On
January 13, 2025 ,Beedie Capital ("Beedie") elected to convertC$1.5 million of the accrued and unpaid interest under the existing loan facility between Metalla and Beedie at a conversion price ofC$3.64 per share, being the closing price of the shares of Metalla on the TSX-V onJanuary 13, 2025 , for a total of 412,088 common shares of the Company ("Common Shares"), which were issued onFebruary 4, 2025 . Following the conversion, Beedie owned approximately 10.3% of the outstanding Common Shares. Additionally, onJanuary 31, 2025 , the Company made a payment ofC$2.0 million to Beedie to reduce all accrued fees and the accrued interest to $Nil as of the payment date.
ASSET UPDATES
Below are updates for the three months ended
Tocantinzinho
On
On
Metalla accrued 266 GEOs from Tocantinzinho for the three months ended
Metalla holds a 0.75% GVR royalty on Tocantinzinho.
Wharf
On
On
Metalla accrued 126 GEOs from Wharf for the three months ended
Metalla holds a 1.0% GVR royalty on the Wharf mine.
Aranzazu
On
Aura also reported first quarter 2025 production from the
Additionally, Aura announced that exploration during Q1 2025 in the Glory Hole zone confirmed the continuity of the mineralized skarn at depth, with notable intercepts including 0.6% copper, 0.24 g/t gold, and 7 g/t silver over 20 meters, and 0.75% copper, 0.47 g/t gold, and 7 g/t silver over 6.5 meters.
Metalla accrued 164 GEOs from Aranzazu for the three months ended
Metalla holds a 1.0% NSR royalty on the Aranzazu mine.
La Guitarra
On
On
Metalla accrued 29 GEOs from La Guitarra for the three months ended
Metalla holds a 2.0% NSR Royalty on La Guitarra, subject to a 1.0% buyback for
La Encantada
On
On
Metalla accrued 17 GEOs from La Encantada for the three months ended
Metalla holds a 100% GVR royalty on gold produced at the La Encantada mine limited to 1.0 Koz annually.
Endeavor
On
Metalla holds a 4.0% NSR royalty on lead, zinc and silver produced from Endeavor.
Côté-Gosselin
On
IAMGOLD also reported gold production at Côté Gold in the first quarter was 73 Koz, as the mine continues to ramp up following the start of production in 2024. Mining activities continue to expand the pit and increase the volume of blasted ore in the pit to provide flexibility in supporting the planned mill feed with reduced handling. Production at Côté Gold in 2025 is expected to be in the 360 – 400 Koz range.
Metalla holds a 1.35% NSR royalty covering less than 10% of the Côté Reserves and Resources estimate in the northeastern portion of the pit design, as well as 100% of the Gosselin Resource estimate.
On
Metalla holds a 0.42% NSR royalty on
On
Metalla holds a 0.315% NSR royalty on
On
On
Metalla holds a 2.5% GVR royalty on the northern and southern extensions of the
Amalgamated
On
Metalla holds a 0.45% NSR royalty on the Amalgamated Kirkland and North AK properties.
Wasamac
On
Agnico reported that it plans to spend
Metalla holds a 1.5% NSR royalty on the Wasamac project subject to a buyback of 0.5% for
Gurupi (formerly CentroGold)
On
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 Gurupi.
On
Metalla holds a 5.0% NSR royalty on the South Domes area of the
West Wall
On
Metalla holds a 1.0% net proceeds of production royalty on West Wall.
Joaquin
On
Metalla holds a 2.0% NSR royalty on Joaquin.
La Parrilla
On
On
Metalla holds a 2.0% NSR royalty on La Parrilla.
On
Metalla holds a 1.25% NSR royalty on the
Dundonald
On
Metalla holds a 1.25% NSR royalty at Dundonald.
On
Metalla holds a 2.0% NSR royalty on
Saturday Night
On
Metalla holds a 1.0% NSR royalty on Saturday Night.
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"
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, 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
|
Three months |
|
ended |
Attributable GEOs during the period from: |
|
Tocantinzinho |
266 |
Wharf |
126 |
Aranzazu |
164 |
La Guitarra |
29 |
La Encantada |
17 |
NLGM |
26 |
Total attributable GEOs |
628 |
(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
|
Three months |
|
ended |
|
|
Cost of sales for NLGM |
|
Total cash cost of sales |
7 |
Total attributable GEOs |
628 |
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
|
Three months |
|
ended |
|
|
Royalty revenue (excluding fixed royalty payments) |
|
Revenue from NLGM |
74 |
Sales from stream and royalty interests |
1,793 |
Total attributable GEOs sold |
628 |
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 the three months ended
|
Three months |
|
ended |
|
|
Net loss |
|
Adjusted for: |
|
Interest expense |
448 |
Finance charges |
80 |
Income tax provision |
25 |
Depletion |
497 |
Foreign exchange loss |
1 |
Share-based payments |
546 |
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
|
As at |
|
|
Total current assets |
|
Less: |
|
Total current liabilities |
(13,881) |
Working capital |
(925) |
Adjusted for: |
|
Convertible loan facility |
12,693 |
Adjusted working capital |
|
Refer the Company's MD&A for the three months ended
Future-Oriented Financial Information
This news release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the Company's revenues from royalties, streams, and other projects, which are subject to the same assumptions, risk factors, limitations and qualifications set forth in the paragraphs below. FOFI contained in this news release was made as of the date of this news release and was provided for the purpose of providing further information about Metalla's anticipated future business operations. Metalla disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.
Technical and Third-Party Information
Metalla has limited, if any, information on or access to the properties on which Metalla(or any of its subsidiaries) holds a royalty, stream or other interest and has no input into exploration, development or mining plans, decisions or activities on any such properties. 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;
management's statements regarding the start and increase of production at properties on which Metalla
holds royalties and streams, and the timing thereof;
the expected increase in plant availability and throughput at Tocantinzinho to nameplate levels; the
expected 2025 gold production guidance at Tocantinzinho and the expected timing thereof; the accessibility to higher grades at Tocantinzinho as the pit gets deeper; the near-mine exploration program planned for 2025 at Tocantinzinho, its costs and purpose; the
regional exploration budget for 2025 at Tocantinzinho, its purpose and goals; the expected 2025 production guidance at Wharf; the expected mine life and average annual production at Aranzazu; the expected 2025 production guidance at Aranzazu; the expected drilling at La Encantada in 2025; the planned initiatives at La Encantada to increase
production levels;
the redevelopment activities at Endeavor, including wet commissioning of the mill and first ore
processing and concentrate production, and the anticipated timing thereof; the Carpark prospect's potential to host a southern extension to the Endeavor mineral system; the 2025 planned drilling programs at Gosselin and Côté; the technical studies
regarding the potential inclusion of the Gosselin deposit into a future Côté Gold
life-of-mine plan; the expected ramp up and expected 2025 production at Côté Gold; the review of the ESIA for
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, risks related to geopolitical events and other uncertainties, such as the conflict in the
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