GoldMining Inc. press release
METALLA REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2022 AND PROVIDES ASSET UPDATES
TSX - Toronto Stock Exchange · Gold · Copper · Silver · Uranium · Canada
Canada NewsWire
(All dollar amounts are in United States dollars unless otherwise indicated)
TSXV: MTA NYSE American: MTA
VANCOUVER, BC , Aug. 12, 2022 /CNW/ - Metalla Royalty & Streaming Ltd. (" Metalla " or the " Company ") (TSXV: MTA) (NYSE: MTA) announces its operating and financial results for the three and six months ended June 30, 2022 . For complete details of the condensed interim consolidated financial statements and accompanying management's discussion and analysis for the three and six months ended June 30, 2022 , please see the Company's filings on SEDAR ( www.sedar.com ) or EDGAR ( www.sec.gov ). Shareholders are encouraged to visit the Company's website at www.metallaroyalty.com .
_Brett Heath , President, and CEO of Metalla, commented, "In the second quarter of 2022, we saw several significant advancements and milestones achieved within our royalty portfolio. G Mining's Tocantinzinho project secured a $481M financing package, expected to reach production in the second half of 2024. Wasamac's production profile was increased to 250k oz Au per year by Yamana Gold, making it an expected top 10 gold producer in Canada . We also saw discoveries made at Moneta's Garrison project and Canadian Malartic's Camflo property that look to provide even more potential upside. We are pleased to see our assets continue to advance and benefit from our strong counterparties at a time when equity and debt markets remain constrained. _"
FINANCIAL HIGHLIGHTS
During the six months ended June 30, 2022 , and the subsequent period up to the date of this news release, the Company:
Noted the following key milestones announced by operators of certain properties in its portfolio of royalties and streams (please see the 'Asset Updates' section of this press release for the details of these announcements):
Amended an existing 1.0% NSR royalty on Monarch's Beaufor Mine. In consideration for $1.0 million paid in cash to Monarch, Monarch agreed to waive a clause stipulating that payments under the NSR royalty were only payable after 100 Koz of gold have been produced by Monarch following its acquisition of Beaufor Mine. Payments under this NSR royalty will commence shortly as Monarch announced the start of production during July 2022 (see below).
For the three months ended June 30, 2022 , received or accrued payments on 560 attributable Gold Equivalent Ounces (" GEOs ") at an average realized price of $1,844 and an average cash cost of $9 per attributable GEO (see non-IFRS Financial Measures). For the six months ended June 30, 2022 , received or accrued payments on 1,284 attributable GEOs at an average realized price of $1,839 and an average cash cost of $7 per attributable GEO (see non-IFRS Financial Measures);
For the three months ended June 30, 2022 , recognized revenue from royalty and stream interests, including fixed royalty payments, of $0.5 million , net loss of $1.4 million , and adjusted EBITDA of negative $0.2 million (see non-IFRS Financial Measures). For the six months ended June 30, 2022 , recognized revenue from royalty and stream interests, including fixed royalty payments, of $1.1 million , net loss of $3.6 million , and adjusted EBITDA of negative $0.2 million (see non-IFRS Financial Measures);
For the three months ended June 30, 2022 , generated operating cash margin of $1,835 per attributable GEO, and for the six months ended June 30, 2022 , generate operating cash margin of $1,832 per attributable GEO, from the Wharf, Joaquin, and COSE royalties, the New Luika Gold Mine (" NLGM ") stream held by Silverback Ltd. (" Silverback "), the Higginsville derivative royalty asset, and other royalty interests (see non-IFRS Financial Measures);
For the three months ended June 30, 2022 , recognized payments due or received (not included in revenue) from the Higginsville derivative royalty asset of $0.6 million , and for the six months ended June 30, 2022 , recognized payments due or received from the Higginsville derivative royalty asset of $1.2 million (see non-IFRS Financial Measures);
On May 12, 2022 , 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 2020, and to enhance the Company's financial flexibility. In connection with this transition, the Company terminated its At-The-Market (" ATM ") program announced on May 14, 2021 (the " 2021 ATM Program "). From inception on May 14, 2021 , to the termination on May 12, 2022 , the Company distributed 1,990,778 common shares under the 2021 ATM program at an average price of $8.18 per share for gross proceeds of $16.3 million , of which 20,170 common shares were sold during the three months ended June 30, 2022 , at an average price of $7.13 per common share for gross proceeds of $0.1 million ;
On May 27, 2022 , the Company announced that it had entered into a new equity distribution agreement with a syndicate of agents to establish an ATM equity program (the " 2022 ATM Program ") under which the Company may distribute up to $50.0 million (or the equivalent in Canadian Dollars) in common shares of the Company. From inception to the date of this press release, the Company did not distribute any common shares under the 2022 ATM program; and
In August 2022 , the Company and Beedie Capital entered into an agreement to extend the maturity date of its loan facility from April 21, 2023 , to January 22, 2024 (the " Loan Extension "). In consideration for the Loan Extension the Company incurred a fee of 2.0% of the currently drawn amount of C$8.0 million , the C$160,000 fee will be convertible into common shares at a conversion price of C$7.34 per share, calculated based on a 20% premium to the 30-day Volume Weighted Average Price of the Company's common shares on the trading day immediately prior to the effective date of the Loan Extension. The Loan Extension is subject to stock exchange approvals which are pending.
ASSET UPDATES
Beaufor Mine
On July 5, 2022 , Monarch announced that it had begun processing ore from its Beaufor Mine at its wholly-owned Beacon Mill, it reported it had stockpiled a total of 30,549 tonnes of ore averaging 4.76 g/t gold and would start feeding the mill with that ore and expected to pour its first bar of gold in July 2022 . On July 27, 2022 , Monarch further announced the production of its first gold bar from the Beaufor Mine, and announced it expects to reach commercial production in the coming months.
On June 16, 2022 , Monarch reported results from recent drilling at the Q Zone where significant intercepts include 122 g/t over 1.4 meters, 20.74 g/t over 3.3 meters, 83.2 g/t gold over 0.5 meters and 18.87 g/t gold over 1.2 meters. On July 25, 2022 , Monarch reported high grade results from drilling at the Q Zone that included 37.59 g/t gold over 2.5 meters, 29.79 g/t gold over 2.45 meters and 418 g/t gold over 0.63 meters, highlighting the potential to expand the Q Zone at depth.
Metalla holds a 1.0% NSR royalty on the Beaufor mine.
Wharf Royalty
On August 3, 2022 , Coeur Mining Inc. (" Coeur ") reported second quarter production of 20.4 Koz gold at 0.47 g/t gold, in line with the 70-80 Koz full year guidance for Wharf disclosed by Wharf on February 16, 2022 . During the quarter, one reverse circulation (" RC ") drill rig had completed a resource conversion program at the Portland -Ridge- Boston claim group and at the Flossie area.
On February 16, 2022 , Coeur reported that Wharf's updated Proven and Probable Reserves totaled 852 Koz at 0.73 g/t. Total Measured and Indicated Resources were reported at 412 Koz at 0.63g/t with an Inferred Resource estimate of 90 Koz at 0.75 g/t. In addition, Coeur reported in their Q4 2021 financial statements, an updated mine life of 8 years for Wharf. Additionally, Coeur reported the continued exploration success at Wharf where a total of 6,625 meters of drilling was completed in the Portland Ridge – Boston claim group, Flossie and Juno areas. Coeur spent $4 million on exploration at the mine in 2021, its largest since acquiring the asset in 2015.
Metalla holds a 1.0% GVR royalty on the Wharf mine.
New Luika Silver Stream
On July 21, 2022 , Shanta Gold Limited (" Shanta ") reported that it produced 17.5 Koz of gold at its NLGM in Tanzania in the second quarter of 2022, in line with full year production guidance of 68-76 Koz gold. On July 19, 2021 , Shanta announced a new mine plan for NLGM, where average annual production is expected to be 73.6 Koz gold with the potential to extend mine life beyond 2026 through conversion of significant known resources and the expanded 2,450 tpd mill throughput. Shanta expects total gold production from NLGM for the five-year plan to total 368 Koz from both open pit and underground mine sources from the mining license.
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
On August 3, 2022 , IAMGOLD Corporation (" IAMGOLD ") reported that construction had reached 57% completion at the Côté Gold Project. It also reported completion in the second quarter of 2022 of approximately 10,500 meters of the 16,000 meter drill program is planned in 2022 to further delineate and expand the Gosselin mineral resources and test selected targets along the deposit corridor. In addition, IAMGOLD completed a project update to the Côté life-of-mine plans where the update proposes an 18-year mine life with initial production expected in early 2024. Average annual production during the first six years is expected to be 495 Koz gold and 365 Koz over the life-of-mine.
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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.
Castle Mountain
Castle Mountain is slated to become one of Equinox Gold's (" Equinox ") largest assets. Metalla's 5.0% NSR royalty covers the South Domes portion of the deposit which will be part of the Phase 2 expansion slated to begin in 2026.
On August 3, 2022 , Equinox reported production in the second quarter of 6.7 Koz gold and exploration expenditure in the second quarter of $0.5 million at the Castle Mountain property. This was in addition to the exploration announced on May 3, 2022 , where drilling in the first quarter included 7,948 meters of RC drilling across the South dump area to assess the continuity and distribution of grade. Equinox also completed 1,448 meters of RC drilling in the area between the JSLA and South Domes pits.
Equinox also announced that in March 2022 it had submitted applications to amend existing permits to accommodate the Phase 2 expansion. On February 24, 2022 , Equinox announced they expect to spend $7 million for Phase 2 permitting, optimization studies and metallurgical test work and nearly $2 million for exploration. As of August 3, 2022 , the Phase 2 permitting timeline was on schedule with the San Bernardino County having determined the application was complete. Equinox expects the U.S. Bureau of Land management to complete its completeness review by the end of July with the application reviews to run through to the end of 2022. Both agencies will determine the appropriate level of state and federal environmental review required with the resulting review process anticipated to begin by early 2023.
Metalla holds a 5.0% NSR royalty on the South Domes area of the Castle Mountain mine.
Garrison
On July 7, 2022 , Moneta released the results of exploration drilling at the Garrison deposit in their Tower Gold project. Drilling results tested new areas all within the Tower Gold project, including east and west of the Garrcon resource, south of the Westaway resource at South Basin, east of the Windjammer South resource at Halfway, and west of the 55 deposit. Drilling has confirmed significant gold mineralization beyond the current resource. Highlights include a drill hole that intercepted significant mineralization with 50.09 g/t gold over 5.05 meters and 0.66 g/t gold over 16 meters. The holes highlight the potential to expand the Garrcon resource pit shells and open new targets for future exploration drilling.
On May 11, 2022 , Moneta released an updated resource estimate for the Tower Gold project, including 4.27 Moz gold in the Indicated category and 7.5 Moz gold in the Inferred category. Moneta plans to complete a Preliminary Economic Assessment on the project scheduled for completion later in the second quarter of 2022. The Garrison deposit forms part of the Tower project and is comprised of three zones, Garrcon, Jonpol, and 903. At Garrcon, the open pit Indicated Resource is 841 Koz at 1.02 g/t gold with an Inferred Resource of 15Koz at 0.67 g/t gold, the underground portion has an Indicated Resource of 87 Koz at 5.08 g/t gold with an Inferred Resource of 120 Koz at 4.98 g/t gold. The Jonpol zone has an Indicated Resource of 297 Koz at 1.4 g/t gold and an Inferred Resource of 114 Koz at 0.99 g/t gold. The 903 zone has an Indicated Resource of 610 Koz at 1.01 g/t gold and an Inferred Resource of 600 Koz at 0.74 g/t gold. The Garrison starter pit now has an Indicated Resource of 1.75 Moz at 1.07 g/t gold. Moneta is slated to release a PEA in the second half of 2022.
[](https://mma.prnewswire.com/media/1877017/Metalla_Royalty_and_Streaming_LtdMETALLA_REPORTS_FINANCIAL_RES.html)
Metalla holds a 2.0% NSR royalty on the Garrison project.
Wasamac
On July 7, 2022 , Yamana announced the approval of the Wasamac bulk sample program, providing for earlier access to the deposit and to increase the level of confidence in the future mining of the project. Permit approvals are expected in early 2023 with ramp development potentially beginning in Spring 2023. A reassessment of the Wasamac project highlighted an improved gold production profile compared to the feasibility study with new projections of ramp-up to 200 Koz in 2027 and up to 250 Koz in 2028. Ongoing mine design and sequence optimizations could position Wasamac with the option for future incremental expansion of the mill to 9,000 tpd from 7,000 tpd in year 3 of operations which will extend the gold production profile of 250 Koz per year until at least 2030. Yamana also highlighted additional opportunities not included in the strategic plan which include processing flow sheet optimization to increase metallurgical recoveries by approximately 3%, optimized configuration of the tailings filter plant and paste backfill plant. Yamana also announced that bulk sample permits are scheduled for submission in the third quarter of 2022, with the approval expected in early 2023 and ramp development could begin in spring 2023.
On July 27, 2022 , Yamana announced positive results from infill drilling at the Wasamac project where grades continue to exceed expectations with significant results include 5.05 g/t gold over 54.06 meters and 5.45 g/t gold over 16.8 meters. Exploration drilling at the Wildcat South target continued to expand on the discovery with a significant intercept of 7.31 g/t gold over 3.37 meters and 1.46 g/t gold over 12.3 meters.
[](https://mma.prnewswire.com/media/1877018/Metalla_Royalty_and_Streaming_LtdMETALLA_REPORTS_FINANCIAL_RES.html)
Metalla holds a 1.5% NSR royalty on the Wasamac project subject to a buy back of 0.5% for C$7.5 million .
Amalgamated Kirkland Property
On July 27, 2022 , Agnico Eagle Mines Limited (" Agnico ") reported that an assessment was ongoing at the Amalgamated Kirkland deposit to provide incremental ore feed to the Macassa mill with annual production of 40 Koz as soon as 2024. The Macassa underground ramp had been extended by 615 meters and twenty-four drill holes had been completed in the higher-grade portion of the deposit. Significant intercepts from the underground drill program include 14.1 g/t gold over 6.5 meters, 23.9 g/t gold over 2.0 meters and 14.9 g/t gold over 3.0 meters. Drilling from the surface drill program designed to infill near surface mineralization proves to be successful in confirming grade thicknesses with significant intercepts of 6.9 g/t gold over 6.7 meters, 5.9 g/t gold over 6 meters and 9 g/t gold over 9.2 meters.
In 2022, Agnico plans to spend $8.6 million on a 1.3 kilometre exploration ramp from the Macassa near surface zones, designed to carry out infill drilling and a bulk sample of the higher-grade regions of the Amalgamated Kirkland deposit. On April 28, 2022 , Agnico reported that the Amalgamated Kirkland deposit hosts an Indicated Resource estimate of 265 Koz gold at 6.51 g/t gold and an Inferred Resource of 406 Koz at 5.32 g/t gold. The deposit remains open at depth and extends laterally.
Metalla holds a 0.45% NSR royalty on the Amalgamated Kirkland property.
El Realito
On July 27, 2022 , Agnico reported that pre-stripping of the El Realito pit was approximately 81% compete. Pre-stripping activities at El Realito pit are in line with forecast are expected to be completed in the third quarter of 2022. The production guidance in Agnico's February 23, 2022 , press release for the La India mine which hosts the El Realito pit were positively revised to 82.5 Koz gold in 2022, 70 Koz gold in 2023 and 22.5 Koz gold in 2024. The increase in the production guidance was due to pit optimization and increase in mineral reserves at the El Realito deposit.
Metalla holds a 2.0% NSR royalty on the El Realito deposit which is subject to a 1.0% buyback right for $4.0 million .
Del Carmen
On May 4, 2022 , Barrick Gold Corporation reported that drilling at Del Carmen resumed in the second quarter of 2022, drilling will continue until the winter season. Results received at Carmen Norte, located to the north of the Rojo Grande target, confirmed gold mineralization with an intercept of 0.5 g/t gold over 39 meters, which opens up a new area with upside potential to add resources to Del Carmen. In addition, all geological models grade estimates and geometallurgical models with be updated and rebuilding in the second quarter to inform future steps for the project.
Metalla holds a 0.5% NSR royalty on the Del Carmen project which is the Argentine portion of the Alturas-Del Carmen project in the prolific El Indio belt.
Fifteen Mile Stream
On July 27, 2022 , St. Barbara Limited reported that the Fifteen Mile Stream project has been extended to include all four identified resource open pits and enable development of the full potential of the project. Permitting application for Fifteen Mile Stream under the Canadian Federal protocol have been made and will be determined in August 2022 .
Metalla holds a 1.0% NSR royalty on the Fifteen Mile Stream project, and 3.0% NSR royalty on the Plenty and Seloam Brook deposits.
Tocantinzinho
On July 18, 2022 , G Mining announced a $481 million financing package, which included a gold stream, term-loan, and equity placement from Franco-Nevada Corporation for $353 million , for the development of the TZ Gold Project located in Para State, Brazil , providing for full financing required for the project. In addition, Eldorado Gold and La Mancha participated for $89 million in equity placements. Project financing is now in place for full construction to begin in Q3 2023 and targeting production for the second half of 2024.
G Mining had previously announced a feasibility study for the TZ Gold Project was completed in the previous quarter, which confirmed a 10.5-year mine life producing 1.8 Moz of gold in total resulting in an average annual gold production profile of 174,700 ounces at an all-in sustaining cost of $681 /oz.
Economics were favourable, at a $1,600 /oz gold price the study demonstrated an after-tax NPV 5% of $622 million and generated an after-tax IRR of 24%. Also of note, G Mining increased the reserves at TZ by 12% to 2.0 Moz and saw an increase in the capital cost at the project of only 7% since the last study was conducted. Project optimization and detailed engineering is expected to occur from Q4 2021 through to Q4 2022. G Mining also expects to complete two drilling campaigns totaling 10,000 meters beginning in Q4 2021 through to Q1 2022, these include a grade control drilling program to de-risk early years of production and an exploration drilling program to test for potential extensions of the known mineralization at depth and below the current pit.