GoldMining Inc. press release
METALLA REPORTS FINANCIAL RESULTS FOR THE 2022 FISCAL YEAR AND PROVIDES ASSET UPDATES
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(All dollar amounts are in United States dollars unless otherwise indicated)
TSXV: MTA NYSE American: MTA
VANCOUVER, BC , March 31, 2023 /CNW/ - Metalla Royalty & Streaming Ltd. (" Metalla " or the " Company ") (TSXV: MTA) (NYSE American: MTA) announces its operating and financial results for the year ended December 31, 2022 . Metalla has also filed with the U.S. Securities and Exchange Commission (the " SEC ") its SEC Annual Report on Form 40-F for the year ended December 31, 2022 . The Form 40-F includes the Company's Annual Information Form, audited financial statements and management's discussion & analysis for the year ended December 31, 2022 . For complete details of the consolidated financial statements and accompanying management's discussion and analysis for the year ended December 31, 2022 , please see the Company's filings on SEDAR ( www.sedar.com ) or on EDGAR ( www.sec.gov ). Shareholders are encouraged to visit the Company's website at http://www.metallaroyalty.com/ .
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Metalla shareholders may receive a hard copy of the Company's complete audited financial statements for the year ended December 31, 2022 , free of charge, upon request. For further information please visit the Company website at https://www.metallaroyalty.com/financial-reports/ .
Brett Heath , President, and CEO of Metalla, commented, "2022 was a significant year for Metalla and the precious metals royalty landscape. During the year Metalla announced five transactions to acquire fifteen new royalties and streams, for a combined purchase price of $33.5 million in cash and stock. Looking forward, we see a tremendous opportunity to capitalize on our business strategy and believe Metalla has a significant advantage in 2023, attracting more high-quality third-party assets, given our size, scale, and track record."
FINANCIAL HIGHLIGHTS
During the year ended December 31, 2022 , and the subsequent period up to the date of this news release, the Company:
Acquired, or amended agreements for 1 stream and 14 royalties, through the following transactions: 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 enhanced 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 ; and 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 distributed 1,048,649 common shares under the 2022 ATM Program at an average price of $5.18 per share for gross proceeds of $5.4 million ; On March 30, 2023 , the Company signed a binding term sheet with Beedie Capital to amend its loan facility by: (i) extending the maturity date to 48 months from the close of the amendment; (ii) increasing the loan facility by C$5.0 million from C$20.0 million to C$25.0 million ; increasing the interest rate from 8.0% to 10.0% per annum; amending the conversion price of the C$3.0 million fourth drawdown from C$11.16 per share to a 30% premium to the 30-day VWAP of the Company shares measured at market close on the day prior to announcement of the amendment; amending the conversion price of C$4.0 million of the C$5.0 million third drawdown from C$14.30 per share to the 5-day VWAP of the Company shares measured at market close on the day prior to announcement of the amendment, and converting the C$4.0 million into shares at the new conversion price; and amending the conversion price of the remaining C$1.0 million of the third drawdown to the 30-day VWAP of the Company shares measured at market close on the day prior to announcement of the amendment. All other terms remain of the loan facility unchanged, and the amendment is subject to regulatory approvals; On March 30, 2023 , the Company signed an amendment with the arm's length seller of the Castle Mountain royalty to extend the maturity date of the $5.0 million loan from June 1, 2023 , to April 1, 2024 . As part of the amendment, on March 31, 2023 , the Company will pay any accrued interest on the loan, effective April 1, 2023 , the interest rate will increase to 12.0% per annum, and the principal and accrued interest will be repaid no later than April 1, 2024 ; For the year ended December 31, 2022 , received or accrued payments on 2,681 attributable Gold Equivalent Ounces (" GEOs ") at an average realized price of $1,765 and an average cash cost of $7 per attributable GEO ( see Non-IFRS Financial Measures ); For the year ended December 31, 2022 , recognized revenue from royalty and stream interests, including fixed royalty payments, of $2.4 million , net loss of $10.9 million , and adjusted EBITDA of negative 1.5 million ( see Non-IFRS Financial Measures ); For the year ended December 31, 2022 , generated operating cash margin of $1,758 per attributable GEO, from the Wharf, El Realito , 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 ); and For the year ended December 31, 2022 , recognized payments due or received (not included in revenue) from the Higginsville derivative royalty asset of $2.4 million ( see Non-IFRS Financial Measures ).
ASSET UPDATES
Below are updates during the three months ended December 31, 2022 , and subsequent period to certain of the Company's assets and is based on information publicly filed by the applicable project owner:
La Encantada
On February 23, 2023 , First Majestic announced 107 ounces of gold production from La Encantada in the fourth quarter of 2022 for a grand total of 413 ounces of gold for 2022. Silver production for the mine totaled 3.09 Moz and 2023 guidance is in the range of 2.9 – 3.2 Moz silver. First Majestic plans to complete 8,000 meters of exploration drilling to continue searching for a new mineralized breccia body as well as extend and de-risk some of the known veins. First Majestic will continue to advance mining at La Encantada towards the Ojuelas and Beca-Zone orebodies to extract higher-grade ores.
Metalla holds a 100% GVR royalty on gold produced at the La Encantada mine limited to 1.0 Koz annually.
El Realito
On February 16, 2023 , Agnico Eagle Mines Ltd. (" Agnico ") reported that gold production from La India totaled 16,669 oz gold for the fourth quarter. Agnico also reported that the 2023 midpoint guidance for the La India mine is expected to be 65 Koz gold. The stripping ratio for early El Realito mining phases was higher than anticipated and resulted in fewer tonnes places on the leach pad. During 2023, Agnico plans to complete 4,000 meters of exploration drilling at the Chipriona deposit, which is currently open along strike with the El Realito royalty boundary.
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 .
Wharf Royalty
On February 22, 2023 , Coeur Mining Inc. (" Coeur ") reported fourth quarter production of 19.9 Koz gold at 0.65 g/t, in line with full year guidance for Wharf disclosed by Coeur on February 16, 2022 . Coeur has guided 2023 production to be in the range of 85 – 95 Koz. Successful exploration and infill drilling during the year allowed for a 7% increase, net of depletion, at Wharf where Proven & Probable Reserves totaled 908 Koz gold at 0.027 oz/t (0.84 g/t). Additionally, a total of 293 Koz gold at 0.02 oz/t (0.62 g/t) of Measured & Indicated Resources, and Inferred Resources stand at 63 Koz gold at 0.02 oz/t (0.62 g/t), were declared at Wharf. Exploration efforts in 2023 will focus on geological modelling and planning for 2024.
Metalla holds a 1.0% GVR royalty on the Wharf mine.
New Luika Silver Stream
On January 18, 2023 , Shanta Gold Limited (" Shanta ") reported that it produced 16.7 Koz of gold at its NLGM in Tanzania in the fourth quarter of 2022, in line with full year production guidance of 68-76 Koz gold. On February 27, 2023 , Shanta announced the extension of the mine life at NLGM through to Q1 2028 through the increase in Mineral Reserves at the mine. Total Proven & Probable Mineral Reserves at NLGM now stand at 394 Koz at 2.85 g/t gold, with Measured & Indicated Resources at 764 Koz at 2.78 g/t gold. In addition, a tailings retreatment project at NLGM contributed an additional 48 Koz of recoverable gold and extends the NLGM operating life to at least February 2031 .
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 February 2, 2023 , and February 16, 2023 , IAMGOLD Corporation (" IAMGOLD ") reported that it had completed 73% of the construction at the Côté Gold Project and drill results received for the 2022 drill program continue to highlight the resource expansion potential of the Gosselin deposit both to the south of the recently declared 5Moz Resource estimate and at depth. Significant intercepts include 1.99 g/t gold over 342.2 meters, 1.29 g/t gold over 313 meters, 1.5 g/t gold over 181 meters and 0.66 g/t gold over 388.5 meters.
Additional technical studies are planned to complete metallurgical test work and mining and infrastructure studies to review alternatives to optimize the inclusion of Gosselin into future Côté life-of-mine plans.
Metalla holds a 1.35% NSR royalty that covers less than 10% of the Côté Reserves and Resources estimate and covers all of the 5 Moz gold Gosselin Resource estimate.
Lama
On February 15, 2023 , Barrick reported that drilling of Lama targets continued during the quarter with two drill rigs testing mineralization concepts at Penelope South and Porfiada targets. Total exploration, evaluation and project expenses for the whole Pascua-Lama project totaled $52 million for the year end 2022. For 2023, Barrick has budgeted $75 million for exploration at Lama.
Metalla holds a 2.5%-3.75% GP royalty on gold and a 0.25%-3.0% NSR royalty on all other metals (other than gold and silver) at Lama.
Castle Mountain
On February 21, 2023 , Equinox Gold Corp. (" Equinox ") reported production in the third quarter of 6,124 ounces of gold and exploration expenditure for the total year of $2.2 million at the Castle Mountain property. The environmental review process and public scoping of the Phase 2 permit amendment is anticipated to begin in the first half of 2023.
Equinox also reported that in 2023, Equinox plans to spend $8 million on Castle Mountain phase two optimization, engineering and permitting.
Metalla holds a 5.0% NSR royalty on the South Domes area of the Castle Mountain mine.
Santa Gertrudis
On February 16, 2023 , Agnico provided a resource update on the Santa Gertrudis project near Hermosillo, Mexico where Agnico expects to spend $7.3 million for 10,000 meters of drilling in 2023. Measured & Indicated resources at Santa Gertrudis totaled 516 Koz at 0.91 g/t gold and 2,106 Koz at 3.71 g/t silver. Inferred resources totaled 1,464 Koz at 2.25 g/t gold and 7,548 Koz at 11.58 g/t silver.
Metalla holds a 2.0% NSR royalty on the Santa Gertrudis project.
Garrison
On January 6, 2023 , Moneta Gold Inc. (" Moneta ") announced their plans to complete a 190,000 meter drill program to upgrade the resource and infill drilling to support a pre-feasibility study at the Tower Gold Project. In addition, Moneta plans to assess the expansion of underground resources through additional exploration drilling at the Garrcon deposit and evaluate opportunities to increase underground production rates from the PEA results.
On September 7, 2022 , Moneta announced positive results for a PEA for the Tower Gold Project envisioning a 19,200 tpd combined open pit and underground mining operation with strong economics. Average annual gold production over the first eleven years is expected to be 368 Koz gold with the majority of the ounces in the first five to six years sourced from the Garrison open pit.
Metalla holds a 2.0% NSR royalty on the Garrison project.
Wasamac
On February 16, 2023 , Agnico reported they are reviewing the technical aspects of the project with a focus on processing ore at the Canadian Malartic mill, which is expected to reduce the project footprint and capital cost. An internal evaluation of the project is expected in the fourth quarter of 2023 and Agnico expects the project has the potential to produce 200 Koz gold per year. Agnico is in the process of acquiring the Wasamac project through its acquisition of Yamana's portfolio of Canadian assets.
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 February 16, 2023 , Agnico reported it is evaluating the potential to source additional production from Amalgamated Kirkland to be processed at either Macassa or at the LaRonde complex. Agnico is evaluating the potential to produce between 20 Koz to 40 Koz of gold per year from the AK deposit commencing in 2024. A total of 16,438 meters of drilling was completed at the AK deposit in 2022. In addition, Agnico declared 100 Koz at 5.2 g/t gold 2P mineral reserves at AK for end 2022.
Metalla holds a 0.45% NSR royalty on the Amalgamated Kirkland property.
Fifteen Mile Stream
On February 22, 2023 , St. Barbara Limited (" St Barbara ") reported a revised permitting timeline for Fifteen Mile Stream of development in FY26 was declared. In addition, St. Barbara will investigate repurposing the Touquoy processing facility for use at Fifteen Mile Stream to lower capital cost and construction cost. On October 18, 2022 , St Barbara Limited reported that permitting for the Fifteen Mile Stream was approved under the Federal Canadian Environmental Assessment Act 2012 (CEAA2012) permitting process and they will target construction of the mine in 2026.
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 October 18, 2022 , G Mining Ventures Corp. (" G Mining ") provided an update on its recently concluded drill program at the Tocantinzinho project (" TZ ") in Pará, Brazil . Infill drilling within the Feasibility Study pit shell returned significant results of 1.48 g/t gold over 193.6 meters and 1.7 g/t gold over 144.7 meters. Drilling outside of the feasibility study pit shell confirmed mineralization with significant intercepts of 1.05 g/t gold over 72.1 meters and 0.98 g/t gold over 10.4 meters. In addition, G Mining identified new targets for greenfield exploration around TZ. The high priority target called Castor is located directly southeast of TZ. Early exploration on the target has returned significant intercepts of 2.2 g/t gold over 8.4 meters and 1.66 g/t gold over 8 meters. A follow up drill program is planned for Q4 2022 and 2023. On September 12, 2022 , G Mining announced a positive construction decision for TZ.
Metalla holds a 0.75% GVR royalty on the Tocantinzinho project.
Fosterville
On October 26, 2022 , Agnico reported that gold production from Fosterville for the full year of 2022 totalled 338 Koz gold. During 2023, Agnico plans to spend $20.8 million for 105,300 meters of capitalized drilling and development of exploration drifts to replace Mineral Reserve depletion and to add Mineral Resources in the Lower Phoenix, Cygnet and Robbins Hills areas. Agnico will spend another $4.4 million for 11,300 meters of underground and surface expensed exploration with the aim of discovering addition high-grade mineralization at Fosterville .
During the third quarter, significant progress was made on exploration down plunge of the Lower Phoenix system and the newly discovered Cardinal splay zone with significant highlights of 365.5 g/t gold over 1.1 meters, approximately 100 meters down plunge of the Lower Phoenix Mineral Resource, 226.2 g/t gold over 1.4 meters with visible gold and 168.2 g/t gold over 2.9 meters. In addition, significant intercepts further down plunge the Lower Phoenix Mineral Resources returned 14.6 g/t gold over 10.6 meters and 5.5 g/t gold over 21.9 meters. Further to an exploration update by Agnico on August 11, 2022 , expansion drilling in the Lower Phoenix returned significant results of 31.5 g/t gold over 8 meters and 226.2 g/t gold over 1.4 meters.
Management has estimated the Metalla royalty boundary is approximately 650-800 meters down dip from the reported drill intercepts in the Lower Phoenix zone.
Metalla holds a 2.5% GVR royalty on the northern and southern extensions of the Fosterville mining license and other areas in the land package.
CentroGold
On February 22, 2023 , Oz Minerals stated that the relocation plan required for progressing the court injunction removal for CentroGold was approved with the Federal body of the National Institute of Colonization and Agrarian Reform (INCRA). The request to remove the injunction has been submitted to the court. Oz Minerals plans to complete a feasibility study on the project once the injunction is removed. In addition, exploration expenses of $2.3 million were spent on the project for the quarter.
Metalla holds a 1.0-2.0% NSR royalty on the CentroGold project.
Big Springs
On November 15, 2022 , Warriedar Resources Limited (" Warriedar ") (formerly Anova Metals Limited) announced a 21% increase to Measured & Indicated Resources at the Big Springs project in Nevada , coming in at 555 Koz at 2.5 g/t gold. Total Resources including Inferred now stand at 1,014 Koz gold at 2.0 g/t gold. For 2023, Warriedar has stated substantial further resource growth potential is set to be pursued with aggressive drilling program expected in 2023.
Metalla holds a 1.0-2.0% NSR on the Big Springs and Golden Domes project.
Akasaba West
On February 16, 2023 , Agnico, who is currently in the process of closing its acquisition of Yamana, announced that removal of overburden and installation of surface infrastructure was ongoing to bring the Akasaba West project online for early 2024 where it is expected to contribute 12,000 ounces of gold per year to the Goldex operation.
Metalla holds a 2.0% NSR royalty on the Akasaba West project subject to a 210 Koz gold exemption.
Endeavor
On March 28, 2023 , Polymetals Resources Ltd. (" Polymetals ") announced the execution of a share sale and purchase agreement in relation to the proposed acquisition of all of the issued share capital of Orana Minerals Pty Ltd., which is the sole shareholder of Cobar Metals Pty Ltd. (" Cobar Metals "). Cobar Metals has in turn entered into an agreement to purchase the Endeavor lead, zinc and silver mine in Australia via the acquisition of three project companies, including Cobar Operations Pty Ltd. (" Cobar Operations "). Polymetals announced it is focused on various aspects of the Endeavor mine with a view to recommencing operations. Completion of Polymetals acquisition of Orana Minerals Pty Ltd. is subject to approval of Polymetals shareholders, with documents to be sent to shareholders in the near future. As part of Polymetals proposed acquisition of the Endeavor mine, the Company has entered into an agreement with the holder of the Endeavor mining tenements, Cobar Operations, by which the Company will convert its 100% silver stream in the Endeavor mine to a 4.0% NSR royalty on all lead, zinc and silver produced from those tenements, and the closing of that agreement is pending.