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Metalla Royalty & Streaming Reports Audited Financial Results for the Year Ended December 31, 2021 and Provides Asset Updates

Press Release

Vancouver, Canada: 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, 2021. 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, 2021. 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, 2021. For complete details of the consolidated financial statements and accompanying management’s discussion and analysis for the year ended December 31, 2021, 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/.

Metalla shareholders may receive a hard copy of the Company’s complete audited financial statements for the year ended December 31, 2021, 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, “2021 represented another major step in the continued growth of Metalla, adding seven high-quality development royalties all being advanced by top operators on proven geological trends. The 1.35% royalty on the Côté-Gosselin project and the 5% royalty on the Castle Mountain project show signs of becoming cornerstone parts of the Metalla portfolio, and the other five royalties acquired by Metalla in 2021 provide an enhanced diverse growth profile of production that is just getting started.”

FINANCIAL HIGHLIGHTS

During the year ended December 31, 2021, and the subsequent period up to the date of this news release, the Company:

  • Closed seven new royalty acquisitions to bring the total held to 70 precious metal assets, and amended an existing royalty through the following notable transactions:
  • an existing 1.35% Net Smelter Returns (“NSR”) royalty on a small portion of the Côté deposit in the Côté Gold Project and all of the Gosselin Zone (located ~1.5km to the northeast of the Côté Gold Project) (together referred to as “Cote-Gosselin”) owned by IAMGOLD Corporation (“IAMGOLD”) and Sumitomo Metal Mining Co., Ltd., from arm’s length sellers for total consideration of C$7.5 million in cash;
  • an existing 5.0% NSR royalty on the South Domes portion of the Castle Mountain Gold Mine (“Castle Mountain”) owned by Equinox Gold Corp. (“Equinox”), from an arm’s length seller for total consideration of $15.0 million, of which $10.0 million was paid in cash at closing, and the remaining $5.0 million to be paid in cash within 20 months from the closing date bearing interest at 4.0% per annum;
  • an existing 0.75% Gross Value Return (“GVR”) royalty on Eldorado Gold Corp.’s 2 Moz Au Tocantinzinho project (“TZ”) located in the Tapajos district in the State of Para in northern Brazil, from Sailfish Royalty Corp. for a total consideration of $9.0 million in cash.(2) Subsequent to the acquisition, Eldorado sold its interest in TZ to G Mining Ventures Corp. (“G Mining”) for $115 million;
  • an existing 1.0%-2.0% NSR royalty on OZ Minerals (“OZ”) 1.7Moz Au CentroGold project (“CentroGold”) located in the State of Maranhão in northern Brazil, from Jaguar Mining Inc. for total consideration of $7.0 million in cash and with additional contingent payments of up to $11.0 million comprised of shares and cash subject to the successful completion of certain milestones in respect of the CentroGold project;(3)
  • an existing  45%  NSR  royalty  on  Agnico  Eagle  Mines  Ltd.’s  (“Agnico”) Amalgamated Kirkland property in its Kirkland Lake project, and an existing 0.45% NSR royalty on Kirkland Lake Gold’s (“Kirkland Lake Gold”) North Amalgamated Kirkland property (“North AK Property”) at its Macassa mine, from private third parties for total consideration of C$0.7 million in cash;(4)
  • an existing 2.5% NSR royalty on Minera Alamos Ltd.’s La Fortuna project, from Argonaut Gold Ltd. for aggregate consideration of $2.25 million in cash. The 2.5% NSR royalty, which is capped at $4.5 million, will be in addition to Metalla’s uncapped 1.0% NSR royalty to increase its total royalty exposure to 3.5% on the La Fortuna project;
  • an existing 0.5% NSR royalty on Barrick Gold Corp.’s (“Barrick”) Del Carmen project, which is part of the 9 Moz Au Alturas-Del Carmen project in the prolific El Indio belt in the San Juan province of Argentina, from Coin Hodl Inc. for a total consideration of C$1.6 million in cash;(1) and
  • amended an existing 1.0% NSR on Monarch Mining Corporation’s (“Monarch”) Beaufor Mine (“Beaufor”). 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.
  • on May 14, 2021, announced the termination of its original at-the-market program (the “2020 ATM Program”). From January 1, 2021 to May 14, 2021, the Company distributed 1,526,600 common shares under the 2020 ATM Program at an average price of $9.45 per share for gross proceeds of $14.4 million. From inception in September 2020 to termination in May 2021, the Company distributed a total of 1,809,300 common shares under the 2020 ATM Program at an average price of $9.63 per share for gross proceeds of $17.4 million, with aggregate commissions paid and other share issue costs of $0.9 million, resulting in aggregate net proceeds of $16.5 million;
  • on May 14, 2021, announced the establishment of a new at-the-market program (the

“2021 ATM Program”) with a syndicate of agents. Under the 2021 ATM Program the Company may distribute up to $35.0 million (or the equivalent in Canadian dollars) in common shares of the Company. From inception to December 31, 2021, the Company distributed 1,622,165 common shares under the 2021 ATM Program at an average price of $8.47 per share for gross proceeds of $13.7 million, with aggregate commissions paid or payable and other share issue costs of $0.7 million, resulting in aggregate net proceeds of $13.0 million. For the three months ended December 31, 2021, the Company distributed 269,037 common shares under the 2021 ATM Program at an average price of $7.31 per share for gross proceeds of $2.0 million, with aggregate commissions paid or payable and other share issue costs of $0.2 million, resulting in aggregate net proceeds of $1.8 million. As of the date of this news release, the Company has distributed a total of 1,970,608 common shares under the 2021 ATM program for gross proceeds of $16.1 million;

  • for the year ended December 31, 2021, received or accrued payments on 2,915 attributable Gold Equivalent Ounces (“GEOs”) at an average realized price of $1,718 and an average cash cost of $7 per attributable GEO (see non-IFRS Financial Measures);
  • for the year ended December 31, 2021, generated operating cash margin of $1,711 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 year ended December 31, 2021, recognized revenue from royalty and stream interests, including fixed royalty payments, of $3.0 million, net loss of $10.4 million, and adjusted EBITDA of negative $1.4 million (see non-IFRS Financial Measures);
  • for the year ended December 31, 2021, recognized payments due or received (not included in revenue) from the Higginsville derivative royalty asset of $2.2 million (see non-IFRS Financial Measures); and
  • converted C$5.0 million outstanding on the Beedie Capital amended loan facility (the “Beedie Loan Facility”) at C$9.90 per share for a total of 505,050 common shares and completed a draw down for an additional C$5.0 million from the Beedie Loan Facility with a conversion price of C$14.30 per share, and drew down an additional C$3.0 million from the Beedie Loan Facility with a conversion price of C$11.16, with such conversion prices representing a 20% premium above the 30-day volume-weighted average price of the Company’s common shares on the trading day prior of the applicable draw down date in accordance with the terms of the Beedie Loan Facility. As at the date of this News Release, the Company has a total of C$8.0 million outstanding under the Beedie Loan Facility bearing interest at a rate of 8% per annum with a remaining C$12.0 million available on standby under the Beedie Loan Facility.

Read More: https://www.metallaroyalty.com/_resources/news/2022/MTA_News_Release_Q4_2021_Results_FINAL.pdf

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