VANCOUVER, May 15, 2019 /CNW/ - Maverix Metals Inc. (the
"Company" or "Maverix") (TSX-V: MMX) is pleased to announce its
operating and financial results for the first quarter ended
March 31, 2019.
For complete details please refer to the Financial Statements
and associated Management Discussion and Analysis for the quarter
ended March 31, 2019, available on
SEDAR (www.sedar.com) or on the Company's website
(www.maverixmetals.com).
All dollar amounts are in Canadian dollars unless otherwise
indicated.
First Quarter 2019 Highlights
- Revenue of $7.5 million
($6.8 million in Q1 2018);
- Operating cash flow of $5.2
million, excluding changes in non-cash working
capital1 ($5.4 million in
Q1 2018);
- Record net income of $1.5 million
or $0.01 per share ($1.2 million or $0.01 per share in Q1 2018);
- Attributable gold equivalent ounces produced2 of
5,264 ounces (4,250 ounces in Q1 2018) and attributable gold
equivalent ounces1 sold of 4,358 ounces (4,024 ounces in
Q1 2018);
- Average cash cost per attributable gold equivalent ounce sold
of $202, resulting in cash operating
margins of $1,527 per
ounce1 ($121 and
$1,560 in Q1 2018, respectively);
and
- Acquired a 22.5% life of mine silver stream on the El Mochito
mine, owned and operated by Ascendant Resources Inc.
"Maverix was pleased to add a cash flowing silver stream on
Ascendant's producing El Mochito mine to our growing portfolio this
quarter, as well as increase our revenue by 10% compared to the
first quarter of 2018," commented Dan
O'Flaherty, President and CEO of Maverix. "Our results this
quarter were consistent with our expectations and we remain on
track to meet our previously announced guidance for 2019. Maverix
will continue to focus on actively evaluating potential
opportunities to expand our portfolio of high-quality royalties and
streams."
2019 Outlook
Maverix remains well positioned to achieve the previously
announced guidance of attributable gold equivalent production of
22,500 and 24,500 ounces1 for 2019. As a number of our
paying assets are continuing to ramp up operations throughout the
year, we expect our attributable gold equivalent production to be
weighted towards the second half of 2019.
The Beta Hunt mine (where Maverix holds a 6% GRR and a 1.5% NSR
royalty on gold production) is currently only producing on a
limited basis, as RNC Minerals is completing an updated resource
estimate and currently expects full production to restart later
this year.3
Coeur Mining, Inc. recently reported that the ramp up at the
Silvertip mine (where Maverix holds a 2.5% NSR) was somewhat slower
than expected, however operating results were steadily improving,
and full year 2019 production guidance was being maintained.
4
Increase of Credit Facility to US$75
Million Subsequent to March 31,
2019
On April 8th, 2019,
Maverix announced that it had amended and increased its revolving
credit agreement with Canadian Imperial Bank of Commerce ("CIBC")
and National Bank of Canada,
allowing the Company to borrow up to US$75
million (the "Revolving Facility"). The Revolving Facility
has a term of four years, which is extendable through mutual
agreement between Maverix, CIBC, and National Bank. Maverix intends
to use the increased Revolving Facility for future royalty or
stream acquisitions and general corporate purposes.
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1
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Maverix has included
certain performance measures in this press release that do not have
any standardized meaning prescribed by International Financial
Reporting Standards (IFRS) including average cash cost per
attributable gold equivalent ounce and cash operating margin. The
Company believes that, in addition to conventional measures
prepared in accordance with IFRS, certain investors use this
information to evaluate the Company's performance and ability to
generate cash flow. Average cash cost per attributable gold
equivalent ounce is calculated by dividing the total cost of sales,
less depletion, by the ounces sold. In the precious metals mining
industry, this is a common performance measure but does not have
any standardized meaning. Cash operating margin is calculated by
subtracting the average cash cost per ounce from the average
realized selling price per ounce of gold. 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's royalty
revenue is converted to an Attributable Gold Equivalent ounce basis
by dividing the royalty revenue for a period by the average gold
price based on the LBMA Gold Price PM Fix per ounce for the same
respective period. These attributable gold equivalent ounces when
combined with the gold ounces sold from the Company's gold streams
(individually and collectively referred to as "Attributable Gold
Equivalent") equal total Attributable Gold Equivalent ounces sold.
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
this non-IFRS measure 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. Note
these figures have not been audited and are subject to
change.
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2
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Represents the
Company's entitlements under its Royalty and Stream agreements to
the gold equivalent ounces of silver and gold contained in
concentrate or doré prior to smelting or refining deductions.
Silver production is converted to an attributable gold equivalent
ounce produced basis by multiplying the attributable silver
production at the underlying operation by the LBMA Silver Price for
the same respective period and then dividing by the average gold
price based on the LBMA Gold Price PM Fix per ounce for the same
respective period. Production figures are based on information
provided by the operators of the mining operations to which the
silver and gold interests relate or management estimates in those
situations where other information is not available. Certain
production figures may be updated in future periods as additional
information is received. Ounces produced exclude silver ounces to
be delivered under the minimum required ratio of silver to actual
gold production from the Company's Moss silver Stream.
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3
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Please refer to the
RNC Minerals news release dated May 8, 2019.
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4
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Please refer to the
Coeur Mining, Inc. news release dated May 1, 2019.
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About Maverix
Maverix is a gold royalty and streaming company. Maverix's
mission is to provide its shareholders with significant low risk
leverage to precious metal prices and to increase underlying per
share value by expanding its portfolio with acquisitions of
high-quality royalties and streams that offer robust returns.
NEITHER THE TSX VENTURE EXCHANGE ("TSX-V") NOR ITS REGULATION
SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE
TSX-V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE.
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 completion of a
consolidation of the Company's common shares, the Company
successfully listing on a U.S. stock exchange, the Company's
financial guidance, outlook, proposed plans for acquiring
additional stream and royalty interests and the potential of such
streams and royalty interests to provide returns and the completion
of mine expansion under construction phases at the mines or
properties that the Company holds an interest in. 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, loss
of key employees and other related risks and uncertainties. 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. No forward-looking statement can
be guaranteed and actual future results may vary materially.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements or information.
SOURCE Maverix Metals Inc.