Ivanhoe Electric Inc. press release
METALLA REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2023 AND PROVIDES ASSET UPDATES
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(All dollar amounts are in thousands of United States dollars unless otherwise indicated, except for shares, per ounce, and per share amounts)
TSXV: MTA NYSE American: MTA
VANCOUVER, BC , Aug. 11, 2023 /CNW/ - Metalla Royalty & Streaming Ltd. (" Metalla " or the " Company ") (TSXV: MTA) (NYSE American: MTA) announces its operating and financial results for the three and six months ended June 30, 2023 . 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, 2023 , 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 2023, we strengthened our balance sheet through the completion of the amendment to expand and extend our convertible loan facility with Beedie Capital and through the sale of the JR mineral claims for $5.0 million . Production from El Realito and La Encantada was stronger than expected during the quarter, and we look forward to the balance of 2023."
FINANCIAL HIGHLIGHTS
During the six months ended June 30, 2023 , and the subsequent period up to the date of this news release, the Company:
Acquired 1 stream and 5 royalties, to bring the total held as at the date of this press release to 82 precious metals assets, through the following transactions:
1.
Sold the JR mineral claims that make up the Pine Valley property, which is part of the Cortez complex in Nevada , to Nevada Gold Mines LLC (" NGM "), an entity formed by Barrick and Newmont Corporation (" Newmont "), for $5.0 million in cash. The Company will retain a 3.0% NSR royalty on the property. Sold the Conmee mineral claims that make up the Tower Mountain property to Thunder Gold Corp. (" Thunder Gold ") for 4,000,000 common shares of Thunder Gold, valued at $0.1 million upon closing. The Company will retain a 2.0% NSR royalty on the property;
Announced a special dividend payment on the Common Shares, in the amount of C$0.03 per share, with a declaration date of July 10, 2023 , a record date of August 1, 2023 , and a payment date of September 15, 2023 ;
For the three months ended June 30, 2023 , received or accrued payments on 856 attributable Gold Equivalent Ounces (" GEOs ") at an average realized price of $1,945 and an average cash cost of $8 per attributable GEO. For the six months ended June 30, 2023 , received or accrued payments on 1,783 attributable GEOs at an average realized price of $1,888 and an average cash cost of $7 per attributable GEO ( see Non-IFRS Financial Measures );
For the three months ended June 30, 2023 , recognized revenue from royalty and stream interests, including fixed royalty payments, of $1.0 million , net loss of $0.5 million , and Adjusted EBITDA of negative $0.2 million . For the six months ended June 30, 2023 , recognized revenue from royalty and stream interests, including fixed royalty payments, of $1.9 million , net loss of $1.8 million , and Adjusted EBITDA of $0.4 million . ( see Non-IFRS Financial Measures );
For the three months ended June 30, 2023 , generated operating cash margin of $1,937 per attributable GEO, and for the six months ended June 30, 2023 , generated operating cash margin of $1,881 per attributable GEO from the Wharf, El Realito , La Encantada , 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, 2023 , recognized payments due or received (not included in revenue) from the Higginsville derivative royalty asset of $0.7 million , and for the six months ended June 30, 2023 , recognized payments due or received (not included in revenue) from the Higginsville derivative royalty asset of $1.4 million ( see Non-IFRS Financial Measures );
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 1,328,078 Common Shares under the 2022 ATM Program at an average price of $5.01 per share for gross proceeds of $6.6 million , of which 279,430 Common Shares were sold during the three months ended June 30, 2023 , at an average price of $4.34 per share for gross proceeds of $1.2 million ;
On May 19, 2023 , the Company closed a second supplemental loan agreement (the " Supplemental Loan Agreement ") to amend its loan facility by:
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 paid all accrued interest on the loan, and effective April 1, 2023 , the interest rate increased to 12.0% per annum, and the principal and accrued interest will be repaid no later than April 1, 2024 . On July 7, 2023 , the Company paid all accrued interest on the loan at the time and made a principal repayment of $4.3 million .
ASSET UPDATES
Below are updates during the three months ended June 30, 2023 , and subsequent period to certain of the Company's assets, based on information publicly filed by the applicable project owner:
La Encantada
On July 20, 2023 , First Majestic Silver Corp. (" First Majestic ") announced production of 76 ounces of gold and 0.8 Moz of silver from La Encantada in the second quarter of 2023 and provided 2023 guidance in the range of 3.1 - 3.3 Moz silver. First Majestic also completed 1,950 meters of drilling on the property with the use of two underground rigs during the quarter.
Metalla received 233 GEOs from La Encantada for the second quarter of 2023.
Metalla holds a 100% GVR royalty on gold produced at the La Encantada mine limited to 1.0 Koz annually.
El Realito
On July 26, 2023 , Agnico Eagle Mines Ltd. (" Agnico ") reported that gold production from La India totaled 17,833 oz gold for the second quarter of 2023. Mine production levels for the second quarter were good with grades higher than target. An investigation is ongoing for additional sulphide mineralization with a plan to drill 4,000 meters at the Chipriona target which is northwest and adjacent to 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 May 10, 2023 , Coeur Mining Inc. (" Coeur ") reported first quarter production of 15.5 Koz gold and reiterated the full year guidance for Wharf. 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 July 20, 2023 , Shanta Gold Limited (" Shanta ") reported that it produced 19.3 Koz of gold at its NLGM in Tanzania in the second quarter of 2023. Shanta also reiterated their guidance of 66 – 72 Koz of gold from NLGM in 2023.
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.
Wasamac
On July 26, 2023 , Agnico reported that during the quarter, it advanced internal studies to assess potential production opportunities at Wasamac along with alternative processing scenarios at either LaRonde and Canadian Malartic mill. Agnico also stated that it was updating studies that were previously completed at Wasamac and believes it has the potential to be a low-cost mine with annual production of 150 – 200 Koz of gold with moderate capital outlays and initial production commencing in 2029. The results of the Wasamac internal evaluation will be reported through the first half of 2024.
Metalla holds a 1.5% NSR royalty on the Wasamac project subject to a buy back of 0.5% for C$7.5 million .
Garrison
On April 11, 2023 , Moneta Gold Inc. (" Moneta ") announced the results of assays from historical drill core at Garrison. The sampling confirmed the continuity and extension of gold mineralized zones not currently included in the latest Mineral Resource estimate. Significant results include 1.87 g/t over 18 meters and 1.58 g/t gold over 18.5 meters at Garrcon and 13.5 g/t gold over 3.2 meters and 4.79 g/t gold over 3.75 meters at Jonpol.
Metalla holds a 2.0% NSR royalty on the Garrison project.
Amalgamated Kirkland Property
On July 26 , 2023, Agnico reported infill drill results from the Amalgamated Kirkland deposit featuring highlights of 11.1 g/t gold over 5.1 meters and 10.4 g/t gold over 2.5 meters. Agnico is evaluating the opportunity to process near surface and AK ore at the LaRonde complex. Average annual production from the near surface deposit and AK deposit could be between 20 Koz and 40 Koz of gold, commencing in 2024. The results of an internal evaluation on the AK deposit will be reported in the first half of 2024.
Metalla holds a 0.45% NSR royalty on the Amalgamated Kirkland property.
Endeavor
On July 21, 2023 , Polymetals Resources Inc (" Polymetals ") released an amended quarterly report reporting that significant progress has been made in preparing for a decision to restart operations at Endeavor, underpinned by a mine restart study scheduled for release during the December 2023 quarter, with targeted commencement of operations by mid-2024. In May 2023 , Polymetals released an updated resource estimate for the Upper Main lodes at Endeavor where total Measured, Indicated and Inferred resources stand at 8.89 Moz silver at 528 g/t AgEq.
On March 28, 2023 , 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 "). On May 12, 2023 , Polymetals announced the completion of Polymetals acquisition of Orana Minerals Pty Ltd. was approved by Polymetals shareholders. As part of Polymetals proposed acquisition of the Endeavor mine, the Company entered into an agreement with the holder of the Endeavor mining tenements, Cobar Operations, by which the Company converted its 100% silver stream in the Endeavor mine to a 4.0% NSR royalty on all lead, zinc and silver produced from those tenements.
Metalla holds a 4.0% NSR royalty on all lead, zinc and silver produced from Endeavor.
Côté-Gosselin
On May 11, 2023 , IAMGOLD Corporation (" IAMGOLD ") reported that it had completed 79.8% of the construction at the Côté Gold Project. Drill results reported in a new release on February 2, 2023 , for the 2022 drill program continue to highlight the resource expansion potential of the Gosselin deposit both to the south of the recently declared 5 Moz Resource estimate, and at depth. Significant intercepts included 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. Approximately 15.5 Km of drilling is planned in 2023 to further delineate and expand the Gosselin mineral resources.
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.
Fifteen Mile Stream
On July 27, 2023 , St. Barbara Limited (" St Barbara ") reported a revised permitting timeline for Fifteen Mile Stream which targets development in fiscal 2026. In addition, St. Barbara has prioritized development of Fifteen Mile Stream with assessment of the relocation of the Touquoy processing plant now confirmed to be an attractive development option.
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.
Fosterville
On July 26, 2023 , Agnico reported that gold production from Fosterville for the second quarter of 2023 totalled 81.8 Koz gold. Drilling during the second quarter of 2023 totaled 20.6 Km and mainly targeted the Lower Phoenix deep extension drilling. During 2023, Agnico plans to spend $20.8 million for 105,300 meters of 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 exploration with the aim of discovering additional high-grade mineralization at Fosterville .
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.
Tocantinzinho
On June 13, 2023 , G Mining Ventures (" G Mining ") reported that the Tocantinzinho project is 30% complete and remains on track and on budget for commercial production in H2-2024.
Metalla holds a 0.75% GVR Royalty on Tocantinzinho.
Lama
On August 8, 2023 , Barrick reported that a geological review of results received from drilling in the first quarter of 2023 was ongoing to generate new drill targets. Total exploration, evaluation and project expenses for the whole Pascua-Lama project totaled $7 million for the second quarter of 2023.
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 August 2, 2023 , Equinox Gold Corp. (" Equinox ") reported a surface exploration program of geological mapping and channel sampling was ongoing with the primary goal to sample previously identified mineralization exposed on surface such that data can be used in future Mineral Resource estimation. The mine permitting amendment plan was submitted to the lead county and BLM agencies which reviewed the plan for completeness in early 2023. Work on the preliminary draft Environmental Impact Statement will begin in 2024. A total of $1.7 million was spent on Phase 2 permitting and optimization for the quarter.
Metalla holds a 5.0% NSR royalty on the South Domes area of the Castle Mountain mine.
Akasaba West
On July 26, 2023 , Agnico announced that the Akasaba West project remained on schedule through the second quarter with achievement of commercial production expected to occur in the first quarter of 2024.
Metalla holds a 2.0% NSR royalty on the Akasaba West project subject to a 210 Koz gold exemption.
Del Carmen
The Company owned a 0.5% NSR royalty on the Del Carmen project that was owned and operated by Barrick. In July 2023 , the Company was notified that Barrick has terminated its agreement to explore and exploit the Del Carmen property and as a result of the termination the 0.5% NSR royalty owned by Metalla had also been terminated. The Company considered the termination of the royalty as an indicator of impairment on its Del Carmen royalty and conducted an impairment analysis to estimate the recoverable amount. As a result of the analysis, the Company fully impaired the royalty to $Nil as at June 30, 2023 , and recorded an impairment charge of $1.3 million .
Camflo
On June 20, 2023 , Agnico reported that it completed more than 14,000 meters of drilling on Camflo, which marks the first exploration drill program since the 1.6 Moz past-producing deposit was closed in 1992. Significant results reported over multiple zones include 1.5 g/t gold over 81 meters, 3.3 g/t gold over 38.7 meters, 3.2 g/t gold over 16.2 meters, 3.7 g/t gold over 7.1 meters, and 1.6 g/t gold over 20.3 meters.
The second phase of exploration drilling at Camflo will test for potential lateral extensions of mineralization and infill known zones. Agnico believes the mineralization could be mined via an open-pit and processed at the Canadian Malartic Mill , 4 Km away.
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Metalla holds a 1.0% NSR royalty on the Camflo mine, located ~1km northeast of the Canadian Malartic operation.
Plomosas
On March 20, 2023 , GR Silver Mining announced an updated Mineral Resource estimate for the Plomosas project. At the Plomosas Mine area, total Indicated Resources are 31 Moz at 200 g/t silver equivalent (" AgEq ") and Inferred Resources are 17 Moz at 175 g/t AgEq. The San Juan-La Colorada Area has an Indicated Resource of 1 Moz at 204 g/t AgEq and an Inferred Resource of 16 Moz at 180 g/t AgEq.
Metalla holds a 2.0% NSR royalty on the Plomosas property subject to a buy back of 1.0% for $1.0 million .
Tower Mountain
On June 12, 2023 , Thunder Gold reported they expanded the footprint at Tower Mountain adding 2,575 hectares. On May 15, 2023 , Thunder Gold reported final results from the 4,000 meter phase one drilling program at Tower Mountain with significant results of 0.59 g/t gold over 36.3 meters, 0.53 g/t gold over 24.5 meters and 0.56 g/t gold over 10.5 meters.
On April 25, 2023 , Thunder Gold announced they intersected 941 g/t over 1.5 meters with visible gold in the core at the Thunder Gold property. Additional highlights include 0.77 g/t gold over 23 meters and 1.26 g/t gold over 17.5 meters.
Metalla holds a 2.0% NSR royalty on the Tower Mountain property.
Montclerg
On June 27, 2023 , GFG Resources Inc. reported high grade intervals at the Montclerg Gold Project located 48 km east of the Timmins Gold District. Significant intercepts include 9.97 g/t gold over 8.1 meters and 4.09 g/t gold over 4.1 meters. Additionally, 1 Km east of the main MC Central Zone, multiple zones of mineralization were intersected with a highlight of 1.93 g/t gold over 10.6 meters.
Metalla holds a 1.0% NSR royalty on the Montclerg property.
Detour DNA
On July 26, 2023 , Agnico reported a drill hole two kilometers west of the open pit mineral reserves with a highlight of 2.8 g/t gold over 14.4 meters, further demonstrating continuity of mineralization along the Detour horizon past the area identified for underground mining potential.
Metalla holds a 2.0% NSR royalty on the Detour DNA property which is approximately 7 km west of the Detour West reserve pit margin.
Green Springs
On July 27, 2023 , Contact Gold Corp. announced the first drill results from the 2023 drill program where significant step-out results include 5.06 g/t gold over 10.7 meters within 1.97 g/t gold over 35.05 meters and 1.14 g/t gold over 27.43 meters at the X-Ray Zone.
Metalla holds a 2.0% NSR royalty on the Green Springs project.
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 Ontario and of the Ordre des Géologues du Québec and a director of Metalla. Mr. Beaudry is a QP as defined in National Instrument 43-101 - _Standards of Disclosure for Mineral Projects _(" NI 43-101 ").
ABOUT METALLA
Metalla is a precious metals royalty and streaming company. Metalla provides shareholders with leveraged precious 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 and silver companies for the next commodities cycle.