METALLA REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2024 AND PROVIDES ASSET UPDATES
Metalla Royalty & Streaming (TSXV: MTA, NYSE American: MTA) announced its Q2 2024 financial results. Key highlights include achieving first production at Tocantinzinho and La Guitarra, and commercial production at Côté. For the quarter, Metalla received or accrued payments on 401 GEOs at $2,332 average price, with a cash cost of $17 per GEO, generating $2.3 million in revenue. However, the company reported a net loss of $1.5 million and Adjusted EBITDA of $0.2 million. Notable asset updates include increased ore processing at La Encantada, gold production at El Realito, and continued development at AK deposit.
Metalla also introduced an asset handbook and announced new President Jason Cho, who invested $1 million in equity. Beedie Investments converted $1.5 million of interest into shares. The company's minimum share ownership policy aligns leadership's financial interests with shareholders. CEO Brett Heath highlighted these milestones as catalysts for growth in the latter half of 2024.
Metalla Royalty & Streaming (TSXV: MTA, NYSE American: MTA) ha annunciato i risultati finanziari del secondo trimestre del 2024. I punti salienti includono il raggiungimento della prima produzione a Tocantinzinho e La Guitarra, e la produzione commerciale a Côté. Nel trimestre, Metalla ha ricevuto o accumulato pagamenti su 401 GEOs a un prezzo medio di $2.332, con un costo di cassa di $17 per GEO, generando $2,3 milioni di entrate. Tuttavia, la società ha registrato una perdita netta di $1,5 milioni e un EBITDA corretto di $0,2 milioni. Aggiornamenti significativi sugli asset includono l'aumento della lavorazione del minerale a La Encantada, la produzione di oro a El Realito e lo sviluppo continuo del deposito AK.
Metalla ha anche presentato un manuale sugli asset e annunciato il nuovo Presidente Jason Cho, che ha investito $1 milione in capitale azionario. Beedie Investments ha convertito $1,5 milioni di interessi in azioni. La politica di minima proprietà azionaria della società allinea gli interessi finanziari della leadership con quelli degli azionisti. Il CEO Brett Heath ha sottolineato questi traguardi come catalizzatori per la crescita nella seconda metà del 2024.
Metalla Royalty & Streaming (TSXV: MTA, NYSE American: MTA) anunció sus resultados financieros del segundo trimestre de 2024. Los puntos clave incluyen el logro de la primera producción en Tocantinzinho y La Guitarra, así como la producción comercial en Côté. Durante el trimestre, Metalla recibió o acumuló pagos por 401 GEOs a un precio promedio de $2,332, con un costo en efectivo de $17 por GEO, generando $2.3 millones en ingresos. Sin embargo, la empresa reportó una pérdida neta de $1.5 millones y un EBITDA ajustado de $0.2 millones. Actualizaciones notables de activos incluyen el aumento del procesamiento de mineral en La Encantada, la producción de oro en El Realito y el desarrollo continuo en el depósito AK.
Metalla también presentó un manual de activos y anunció al nuevo presidente Jason Cho, quien invirtió $1 millón en capital. Beedie Investments convirtió $1.5 millones de intereses en acciones. La política de propiedad mínima de acciones de la empresa alinea los intereses financieros del liderazgo con los de los accionistas. El CEO Brett Heath destacó estos logros como catalizadores para el crecimiento en la segunda mitad de 2024.
메탈라 로열티 & 스트리밍 (TSXV: MTA, NYSE American: MTA)이 2024년 2분기 재무 결과를 발표했습니다. 주요 내용으로는 토칸틴지뇨와 라 기타라에서의 첫 생산 달성과 코테에서의 상업 생산이 포함됩니다. 이번 분기 동안 메탈라는 GEO 401개에 대해 평균 $2,332의 가격으로 지급 또는 발생된 금액을 수령하였으며, GEO당 현금 비용은 $17로 $2.3 백만의 수익을 창출했습니다. 그러나 회사는 $1.5 백만의 순손실과 $0.2 백만의 조정 EBITDA를 보고했습니다. 주목할 만한 자산 업데이트에는 라 엔칸타다에서의 광석 처리 증가, 엘 레알리토에서의 금 생산 및 AK 광산에서의 지속적인 개발이 포함됩니다.
메탈라는 또한 자산 핸드북을 소개하고 새 사장 제이슨 조를 발표했습니다. 그는 100만 달러의 자본을 투자했습니다. 비디 인베스트먼트는 150만 달러의 이자를 주식으로 전환했습니다. 회사의 최소 주식 소유 정책은 경영진의 재무 이익을 주주와 일치시킵니다. CEO인 브렛 히스는 이러한 이정표가 2024년 하반기 성장의 촉매제로 작용할 것이라고 강조했습니다.
Metalla Royalty & Streaming (TSXV: MTA, NYSE American: MTA) a annoncé ses résultats financiers pour le deuxième trimestre de 2024. Les points clés incluent l'atteinte de la première production à Tocantinzinho et La Guitarra, ainsi que la production commerciale à Côté. Pour le trimestre, Metalla a reçu ou accédé à des paiements sur 401 GEOs à un prix moyen de 2 332 $, avec un coût en espèces de 17 $ par GEO, générant 2,3 millions de dollars de revenus. Cependant, la société a déclaré une perte nette de 1,5 million de dollars et un EBITDA ajusté de 0,2 million de dollars. Parmi les mises à jour notables des actifs, on trouve une augmentation du traitement des minerais à La Encantada, la production d'or à El Realito et le développement continu du gisement AK.
Metalla a également présenté un manuel d'actifs et annoncé le nouveau président Jason Cho, qui a investi 1 million de dollars en capital. Beedie Investments a converti 1,5 million de dollars d'intérêts en actions. La politique de propriété minimale de la société aligne les intérêts financiers de la direction avec ceux des actionnaires. Le PDG Brett Heath a mis en avant ces jalons comme des catalyseurs de croissance pour la seconde moitié de 2024.
Metalla Royalty & Streaming (TSXV: MTA, NYSE American: MTA) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 bekannt gegeben. Zu den wichtigsten Punkten gehört die Erreichung der ersten Produktion in Tocantinzinho und La Guitarra sowie die kommerzielle Produktion in Côté. Im Quartal erhielt oder accedierte Metalla Zahlungen für 401 GEOs zu einem Durchschnittspreis von $2.332, mit einem Barkosten von $17 pro GEO, was $2,3 Millionen an Einnahmen generierte. Allerdings berichtete das Unternehmen von einem Nettoverlust von $1,5 Millionen und einem bereinigten EBITDA von $0,2 Millionen. Bedeutende Aktualisierungen zu den Vermögenswerten umfassen die erhöhte Erzverarbeitung in La Encantada, die Goldproduktion in El Realito und die fortgesetzte Entwicklung im AK-Vorkommen.
Metalla stellte auch ein Vermögenshandbuch vor und kündigte den neuen Präsidenten Jason Cho an, der $1 Million in Eigenkapital investierte. Beedie Investments wandelte $1,5 Millionen an Zinsen in Aktien um. Die Mindestbeteiligungspolitik des Unternehmens bringt die finanziellen Interessen der Führung mit den Interessen der Aktionäre in Einklang. CEO Brett Heath hob diese Meilensteine als Wachstumsmotoren für die zweite Jahreshälfte 2024 hervor.
- Achieved first production at Tocantinzinho and La Guitarra.
- Côté reached commercial production.
- Introduced inaugural asset handbook showcasing over 100 assets.
- Received or accrued payments on 401 GEOs at $2,332 average price.
- Jason Cho appointed as President and invested $1 million.
- Beedie Investments converted $1.5 million interest into shares.
- Reported a net loss of $1.5 million for Q2 2024.
- Adjusted EBITDA remained low at $0.2 million.
Insights
Metalla Royalty & Streaming's Q2 2024 results show modest progress but continued losses. Key points:
- Revenue of
$0.9 million for Q2,$2.1 million for H1 2024 - Net loss of
$1.5 million for Q2,$3.2 million for H1 - Received 401 GEOs in Q2 at
$2,332 average price - Operating cash margin of
$2,315 per GEO in Q2
While production is ramping up at key assets like Tocantinzinho and La Guitarra, Metalla remains unprofitable. The appointment of a new President and
Metalla's Q2 update highlights important operational milestones across its royalty portfolio:
- First gold pour at Tocantinzinho (0.75% GVR)
- Commercial production at Côté Gold (1.35% NSR on part of the project)
- Production ramp-up at La Guitarra (2% NSR)
- Continued exploration success at several assets
These developments bode well for future royalty revenue growth. However, the company faces challenges with some mature assets like La India winding down. The diverse portfolio of over 100 royalties provides exposure to both producing mines and exploration upside. Key catalysts to watch include permitting progress at Taca Taca and potential mine life extensions at Wharf. Overall, Metalla is positioning itself for growth, but execution and metal prices will be critical.
(All dollar amounts are in thousands of
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 equity investment into the Company, for the acquisition of 250,000 common shares of the Company ("Common Shares") at$1.0 million C per Common Share by way of private placement (the "Placement"). The Placement closed on August 9, 2024;$4.00 - 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 a0.75% 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 $17 $2,173 $12 - 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 $1.5 million $0.2 million $2.1 million $3.2 million $0.2 million - For the three months ended June 30, 2024, the Company generated operating cash margin of
$2,315 $2,161 - On February 20, 2024, Beedie Investments Ltd. ("Beedie") elected to convert
C 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$1.5 million C 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;$3.49 - 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.
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
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
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. Supplemental 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
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
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
Metalla holds a
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
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
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
Metalla holds a
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.
Metalla holds a
Amalgamated
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 AK 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
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
Metalla holds a
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 such 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 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
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
Metalla holds a
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
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
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
Metalla holds a
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
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
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
QUALIFIED PERSON
The technical information contained in this news release has been reviewed and approved by Charles Beaudry, geologist M.Sc., member of the Association of Professional Geoscientists of
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 BEHALF OF METALLA ROYALTY & STREAMING LTD.
(signed) "Brett Heath"
President and 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 | Six months | ||
ended | ended | ||
Attributable GEOs during the period from: | June 30, 2024 | June 30, 2024 | |
Wharf | 101 | 274 | |
El Realito | 60 | 237 | |
La Encantada | 16 | 64 | |
Aranzazu | 197 | 397 | |
NLGM | 27 | 53 | |
Total attributable GEOs | 401 | 1,025 |
(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 and six months ended June 30, 2024, was:
Three months | Six months | ||
ended | ended | ||
June 30, 2024 | June 30, 2024 | ||
Cost of sales for NLGM | |||
Total cash cost of sales | 7 | 12 | |
Total attributable GEOs | 401 | 1,025 | |
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 and six months ended June 30, 2024, was:
Three months | Six months | ||
ended | ended | ||
June 30, 2024 | June 30, 2024 | ||
Royalty revenue (excluding fixed royalty payments) | |||
Revenue from NLGM | 62 | 116 | |
Sales from stream and royalty interests | 935 | 2,227 | |
Total attributable GEOs sold | 401 | 1,025 | |
Average realized price per attributable GEO |
(d) Operating cash margin per attributable GEOOperating 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 and six months ended June 30, 2024, was:
Three months | Six months | ||
ended | ended | ||
June 30, 2024 | June 30, 2024 | ||
Net loss | |||
Adjusted for: | |||
Interest expense | 475 | 979 | |
Finance charges | 85 | 170 | |
Income tax provision | 14 | 24 | |
Depletion | 521 | 1,284 | |
Foreign exchange gain | (79) | (180) | |
Share-based payments | 640 | 1,189 | |
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 June 30, 2024, was:
As at | ||
June 30, 2024 | ||
Total current assets | ||
Less: | ||
Total current liabilities | (13,225) | |
Working capital | (2,449) | |
Adjusted for: | ||
Convertible loan facility | 12,534 | |
Adjusted working capital |
Refer the Company's MD&A for the three and six months ended June 30, 2024, which is available on SEDAR+ at www.sedarplus.ca, for a numerical reconciliation of the non-IFRS financial measures described above. The presentation of these non-IFRS financial 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. Other companies may calculate these non-IFRS financial measures differently.
Future-Oriented Financial Information
This news release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Metalla's anticipated revenues from the Endeavor NSR which was prepared by Polymetals and is subject to the assumptions, risk factors, limitations and qualifications as set forth in this news release. 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, 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
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 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; management's statements regarding Metalla's growth trajectory; the use of proceeds from the Placement; the Company undertaking any offering of securities under the its base shelf prospectus and corresponding registration statement; the increase of ore throughput rates at La Encantada to historical levels and the timing thereof; 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 potential opportunity to extend mine life at Wharf; the two phase drill-program at Wharf in 2024 and 2025 to test the two new targets; the expected 2024 production guidance at Aranzazu; the updated mine plan at Endeavor; the expected timing of first production at Endeavor; the increase of Mineral Reserves at Endeavor; the ramp up of refurbishment activities upon finalization of project financing at Endeavor; the achievement of commercial production and ramp up to nameplate capacity at and the timing thereof at Tocantinzinho; the expected shipments at La Guitarra; Sierra Madre's plans to increase production at La Guitarra; the expected 2024 production guidance at the Côté Gold Project; the receipt of approval for the Environmental and Social Impact Assessment at Taca Taca and the anticipated timing thereof; the expected start of production at the AK deposit and the anticipated timing thereof; the production processing at the Near Surface and the AK deposits and the anticipated timing thereof; the expected production at the Near Surface and the AK deposits; the planned drilling program for 2024 for Wasamac and related expenditures; the assessment by Agnico of optimal mining rate and milling strategy for Wasamac; the start and the focus of the surface exploration program of geological mapping and channel sampling at Castle Mountain and the timing thereof; the receipt of a notice of intent in connection with the mine permitting amendment plan for Castle Mountain and the anticipated timing thereof; the beginning of the formal permitting process at Castle Mountain; the work on the preliminary draft Environmental Impact Statement for Castle Mountain throughout 2024 and 2025; the creation of a memorandum of understanding with the BLM, San Bernardino County and Castle Mountain; the expectation that Akasaba West will provide flexibility at the Goldex complex; the expected production at Akasaba West; the release of a technical study and mine plan for La Parrilla and the anticipated timing thereof; the restart of mining and processing at La Parrilla and the anticipated timing thereof; the expected mine life, production and cash costs for Fifteen Mile Stream; the start of development of Fifteen Mile Stream and anticipated timing thereof; the identification of areas for resource expansion and additional stand-along targets at Montclerg; the potential for a concurrent underground operation at Detour DNA; royalty payments to be paid to Metalla by property owners or operators of mining projects pursuant to each royalty interest; the future outlook of Metalla and the mineral reserves and resource estimates for the properties with respect to which the Metalla has or proposes to acquire an interest; future gold, silver and copper prices; other potential developments relating to, or achievements by, the counterparties for the Company's stream and royalty agreements, and with respect to the mines and other properties in which the Company has, or may acquire, a stream or royalty interest; costs and other financial or economic measures; prospective transactions; growth and achievements; financing and adequacy of capital; future payment of dividends; future public and/or private placements of equity, debt or hybrids thereof; and the Company's ability to fund its current operational requirements and capital projects.
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
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SOURCE Metalla Royalty & Streaming Ltd.
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