All amounts are in U.S. dollars unless otherwise
indicated.
VANCOUVER, BC, March 23, 2021 /PRNewswire/ - Maverix Metals Inc.
("Maverix" or the "Company") (NYSE American: MMX) (TSX: MMX) is
pleased to announce record operating and financial results for the
fourth quarter and year ended December 31,
2020.
Full Year 2020 Financial Highlights
- Record revenue of $51.7
million;
- Record cash flow from operating activities, excluding changes
in non-cash working capital, of $36.5
million1;
- Record gold equivalent ounces ("GEOs") sold of
28,9161;
- Average cash cost per GEO of $174, resulting in a cash operating margin of 90%
or $1,613 per ounce1;
and
- Record net income of $23.7
million, including a one-time gain on an amendment of a
royalty interest, and adjusted net income of $15.6 million1.
Fourth Quarter 2020 Financial Highlights
- Record revenue of $16.6
million;
- Record cash flow from operating activities, excluding changes
in non-cash working capital, of $11.5
million1;
- Record GEOs sold of 8,8361;
- Average cash cost per GEO of $184, resulting in a cash operating margin of 90%
or $1,691 per ounce1;
and
- Net income of $5.3 million and
adjusted net income of $6.3
million1.
Dan O'Flaherty, CEO of Maverix,
commented, "Maverix delivered another successful year in 2020 with
revenue increasing over 50% from 2019, demonstrating the strength
of our diverse, high-quality portfolio of precious metals royalty
and stream interests. We look forward in 2021 and beyond, to
organic growth from our existing portfolio while continuing to
focus on adding value through additional royalty and stream
acquisitions. Our capital position has never been stronger, as we
are now debt free and have access to the full $120 million available under our credit facility,
while holding approximately $55
million in cash and marketable securities. Finally, the
recent inclusion in the GDXJ is another milestone for the Company,
reflecting the successful execution of our business strategy thus
far."
Summary of Quarterly and Annual Results
|
Three months
ended
|
Year
ended
|
(in thousands, except
for GEOs and per share amounts)
|
|
December 31,
2020
|
|
December 31,
2019
|
|
December 31,
2020
|
|
December 31,
2019
|
|
|
|
|
|
|
|
|
|
Statement of
Income and Comprehensive Income
|
|
|
|
|
|
|
|
|
Royalty
revenue
|
$
|
10,140
|
$
|
6,741
|
$
|
32,689
|
$
|
21,797
|
Sales
|
$
|
6,429
|
$
|
3,758
|
$
|
18,992
|
$
|
11,915
|
Total
revenue
|
$
|
16,569
|
$
|
10,499
|
$
|
51,681
|
$
|
33,712
|
Cash flow from
operating activities
|
$
|
7,746
|
$
|
7,456
|
$
|
33,000
|
$
|
20,961
|
Net income
(loss)
|
$
|
5,346
|
$
|
(11,237)
|
$
|
23,719
|
$
|
(7,667)
|
Basic earnings (loss)
per share
|
$
|
0.04
|
$
|
(0.10)
|
$
|
0.19
|
$
|
(0.07)
|
Diluted earnings
(loss) per share
|
$
|
0.04
|
$
|
(0.10)
|
$
|
0.17
|
$
|
(0.07)
|
Dividends declared
per share
|
$
|
0.01
|
$
|
0.01
|
$
|
0.04
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
Non-IFRS and Other
Measures1
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
$
|
6,282
|
$
|
3,008
|
$
|
15,624
|
$
|
6,958
|
Total GEOs
sold
|
|
8,836
|
|
7,096
|
|
28,916
|
|
24,021
|
Average realized gold
price per GEO
|
$
|
1,875
|
$
|
1,480
|
$
|
1,787
|
$
|
1,403
|
Average cash cost per
GEO
|
$
|
184
|
$
|
171
|
$
|
174
|
$
|
163
|
Cash flow from
operating activities, excluding changes in non-cash working
capital
|
$
|
11,474
|
$
|
7,869
|
$
|
36,527
|
$
|
23,468
|
For complete details please refer to the Consolidated Financial
Statements and associated Management Discussion and Analysis for
the quarter and year ended December 31,
2020, available on SEDAR (www.sedar.com), EDGAR
(www.sec.gov) or on Maverix's website (www.maverixmetals.com).
To listen to Maverix's President, Ryan
McIntyre, discuss the record-setting annual results please
use this link:
MMX 2020 Results
Inclusion in the VanEck Vectors Junior Gold Miners
ETF
Maverix is pleased to announce that it has been added to the
VanEck Vectors Junior Gold Miners ETF ("GDXJ") as of the GDXJ's
first quarter rebalance completed on March
19, 2021.
2021 Outlook
The Company continues to expect the previously announced
guidance of attributable GEOs to be between 27,000 to
30,0001 for 2021 at approximately a 90% cash
margin1 with approximately 99% of expected revenue
derived from gold and silver.
Asset Portfolio Updates
Cerro Blanco (1% NSR)
Bluestone Resources Inc. announced the findings of a preliminary
economic assessment ("PEA") that highlights an optimized project
which doubles the gold resource ounces and production profile. The
recent completion of advanced engineering and optimization work has
significantly enhanced the understanding of the project and
presented an opportunity to capitalize on its near-surface,
high-grade mineralization through an open pit scenario. The PEA
highlights an initial 11 year life of mine with production of
approximately 2.4 million ounces of gold and 10.2 million ounces of
silver. Total measured and indicated resources at Cerro Blanco now
stand at 3.0 million ounces of gold and 13.2 million ounces of
silver (61.5 million tonnes at 1.5 grams per tonne gold and 6.7
grams per tonne silver).
For more information, please refer to www.bluestoneresources.ca
and see the news release dated February 28,
2021.
Silvertip (2.5% NSR)
Coeur Mining, Inc. ("Coeur") significantly increased the size of
its resource base at Silvertip following the execution of the
largest and most successful exploration program in the history of
the property. Silver, zinc and lead measured and indicated
resources increased by approximately 50%, 45% and 50%,
respectively. Similarly, silver, zinc and lead inferred resources
grew by approximately 46%, 69% and 37%, respectively.
Coeur highlighted key outcomes of the internal pre-feasibility
study for Silvertip during its virtual investor day in December 2020. Notably, Coeur developed a new
flowsheet that would help support a potential 75% increase in
throughput to 1,750 tonnes per day. Coeur is now progressing the
project through a more comprehensive engineering and design phase
for the revised flowsheet, while also continuing to build on the
momentum of its exploration program. Coeur also plans to continue
evaluating opportunities to accelerate certain non-mill related
capital projects in 2021, including a new water treatment plant, to
help mitigate construction risk should a restart of the project be
approved during the second half of the year.
For more information, please refer to www.coeur.com and see the
news release dated February 17,
2021.
1 Maverix has included certain
performance measures in this news release that do not have any
standardized meaning prescribed by International Financial
Reporting Standards ("IFRS") including adjusted net income, total
GEOs sold, average realized gold price per GEO, average cash cost
per GEO, cash operating margin and cash flow from operating
activities, excluding changes in non-cash working capital. Adjusted
net income is calculated by excluding the effects of other
income/expenses, impairment charges, gains/(losses) on sale or
amendments of royalty and streams and unusual non-recurring items.
The Company believes that adjusted net income is a useful measure
of the Company's performance because it adjusts for items which may
not relate to or have a disproportionate effect on the period in
which they are recognized, impact the comparability of our core
operating results from period to period, are not always reflective
of the underlying operating performance of our business and/or are
not necessarily indicative of future operating results. The
Company's royalty revenue and silver sales are converted to a GEO
basis by dividing the royalty revenue and silver sales for a period
by the average gold price based on the LBMA Gold Price PM Fix per
ounce for the same respective period. These GEOs when combined with
the gold ounces sold from the Company's gold streams equal total
GEOs sold. Average realized gold price per GEO is calculated by
dividing the total revenue by the GEOs sold. Average cash cost per
GEO is calculated by dividing the total cost of sales, less
depletion, by the GEOs sold. In the precious metals mining
industry, these are common performance measures but do not have any
standardized meaning. Cash operating margin is calculated by
subtracting the average cash cost per GEO sold from the average
realized gold price per GEO sold. The Company presents cash
operating margin as it believes that certain investors use this
information to evaluate the Company's performance in comparison to
other companies in the precious metal royalty and streaming sector
who present results on a similar basis. The Company has also used
the non-IFRS measure of operating cash flows excluding changes in
non-cash working capital. This measure is calculated by adding back
the decrease or subtracting the increase in changes in non-cash
working capital to or from cash provided by (used in) operating
activities. The presentation of these non-IFRS 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 measures differently. The 2021 forecast herein assumes a
gold price of $1,700 per ounce and a silver price of $21 per ounce.
The forecast was derived using information that is available in the
public domain as at the date hereof, which included guidance and
estimates prepared and issued by management of the operators of the
mining operations in which Maverix holds an interest. The forecast
is sensitive to the performance and operating status of the
underlying mines. None of the information has been independently
verified by Maverix and may be subject to uncertainty. There can be
no assurance that such information is complete or accurate.
Maverix's business, operations, financial condition and financial
outlook could be materially adversely affected by the continued
impact of the COVID-19 global health pandemic. At this time,
Maverix cannot reasonably estimate the duration of any potential
business disruptions, impact to underlying operations that Maverix
holds an interest in or any related financial impact that is
related to or caused by COVID-19.
|
Qualified Person
Brendan Pidcock, P.Eng., is Vice
President, Technical Services for Maverix, and a qualified person
under National Instrument 43-101 – Standards of Disclosure for
Mineral Projects, has reviewed and approved the scientific and
technical disclosure contained in this news release.
About Maverix
Maverix is a gold-focused royalty and streaming company with a
globally diversified portfolio of over 100 assets. Maverix's
mission is to increase per share value by acquiring precious metals
royalties and streams. Its shares trade on both the NYSE American
and the TSX under the symbol "MMX".
Cautionary statements to U.S. investors
Information contained or referenced in this press release or in
the documents referenced herein concerning the properties,
technical information and operations of Maverix has been prepared
in accordance with requirements and standards under Canadian
securities laws, which differ from the requirements of US
securities laws. The terms "mineral resource" and "inferred mineral
resource" used in this press release or in the documents
incorporated by reference herein are mining terms as defined in
accordance with NI 43-101 under guidelines set out in the
Definition Standards for Mineral Resources and Mineral Reserves
adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum Council. While the terms "mineral resource", and
"inferred mineral resource" are recognized and required by Canadian
securities laws, they are not recognized by SEC Industry Guide 7
and normally are not permitted to be used in reports filed with the
SEC. The SEC has adopted amendments to its disclosure rules to
modernize the mineral property disclosure requirements for issuers
whose securities are registered with the SEC under the U.S.
Securities Exchange Act of 1934 (the "SEC Modernization Rules").
Under the SEC Modernization Rules, the SEC will permit issuers to
disclose estimates of mineral resources if certain conditions are
met. Because the Company is eligible for the Multijurisdictional
Disclosure System adopted by the SEC and Canadian Securities
Administrators, the Company is not required to present disclosure
regarding its mineral properties in compliance with the SEC
Modernization Rules. Accordingly, certain information contained in
this press release concerning descriptions of mineralization and
mineral resources under these standards may not be comparable to
similar information made public by US companies subject to
reporting and disclosure requirements of the SEC.
Cautionary note regarding forward-looking statements
This release contains certain "forward looking statements" and
certain "forward-looking information" as defined under applicable
Canadian and U.S. securities laws. Forward-looking statements and
information can generally be identified by the use of
forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology. The forward-looking
information contained herein is provided for the purpose of
assisting readers in understanding management's current
expectations and plans relating to the future. Readers are
cautioned that such information may not be appropriate for other
purposes. Forward-looking statements and information include, but
are not limited to, statements with respect to the Company's annual
guidance, and developments at certain of the mines, projects or
properties that underlie the Company's interests. Forward-looking
statements and information 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 information is
subject to known and unknown risks, uncertainties and other factors
that may cause the actual actions, events or results to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: the
impact of general business and economic conditions; the absence of
control over mining operations from which Maverix will purchase
gold and other metals or from which it will receive royalty
payments 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 continue to be refined; accidents,
equipment breakdowns, title matters, labor disputes or other
unanticipated difficulties or interruptions in operations; problems
inherent to the marketability of gold and other metals; the
inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses; industry conditions,
including fluctuations in the price of the primary commodities
mined at such operations, fluctuations in foreign exchange rates
and fluctuations in interest rates; government entities
interpreting existing tax legislation or enacting new tax
legislation in a way which adversely affects Maverix; stock market
volatility; regulatory restrictions; liability, competition, the
potential impact of epidemics, pandemics or other public health
crises, including the current outbreak of the novel coronavirus
known as COVID-19 on Maverix's business, operations and financial
condition, loss of key employees, as well as those risk factors
discussed in the section entitled "Risk Factors" in Maverix's
annual information form dated March 23,
2021 available at www.sedar.com. Maverix has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers are advised not to place
undue reliance on forward-looking statements or information.
Maverix undertakes no obligation to update forward-looking
information except as required by applicable law. Such
forward-looking information represents management's best judgment
based on information currently available.
Technical and third-party information
The disclosure herein and relating to properties and operations
on the properties in which Maverix holds royalty, stream or other
interests is based on information publicly disclosed by the owners
or operators of these properties and information/data available in
the public domain as at the date hereof, and none of this
information has been independently verified by Maverix.
Specifically, as a royalty or stream holder, Maverix has limited,
if any, access to properties included in its asset portfolio.
Additionally, Maverix may from time to time receive operating
information from the owners and operators of the properties, which
it is not permitted to disclose to the public. Maverix is dependent
on, (i) the operators of the properties and their qualified persons
to provide information to Maverix, or (ii) on publicly available
information to prepare disclosure pertaining to properties and
operations on the properties on which Maverix holds royalty, stream
or other interests, and generally has limited or no ability to
independently verify such information. Although Maverix 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 Maverix's
royalty, stream or other interest. Maverix's royalty, stream or
other interests often cover less than 100% and sometimes only a
portion of the publicly reported mineral reserves, mineral
resources and production of a property.
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SOURCE Maverix Metals Inc.