All amounts are in U.S. dollars unless otherwise indicated.
May 13, 2022, Vancouver, British Columbia – Maverix Metals Inc. (“Maverix” or the “Company”) (NYSE American & TSX: MMX) is pleased to announce operating and financial results for the first quarter ended March 31, 2022.
First Quarter 2022 Highlights
• Revenue of $14.7 million;
• Gold equivalent ounces (“GEOs”) sold of 7,7381 ;
• Cash flow from operating activities of $8.0 million;
• Cash flow from operating activities, excluding changes in non-cash working capital, of $10.5 million1 ;
• Average cash cost per GEO of $190, resulting in a cash operating margin of 90% or $1,704 per ounce1 ;
• Net income of $3.5 million, or $0.02 per share;
• Adjusted net income of $5.7 million1
, or $0.04 per share; and
• Acquired a package of three gold royalties on Nevada properties owned by Gold Standard Ventures Corp. (“Gold Standard”).
Dan O’Flaherty, CEO of Maverix, commented, “Maverix had a productive start to 2022 with the acquisition of a strategic package of three gold royalties in Nevada. We are also excited about the continued organic growth within our portfolio as
several of our royalty counterparties announced positive operational updates, including the Camino Rojo mine achieving commercial production shortly after the quarter ended. Consistent with our strategy for growth and value creation, we remain
focused on evaluating new opportunities to add to and complement our robust organic growth.”
Summary of Quarterly Results
(in thousands of USD, except for GEOs and per share amounts)
March 31, 2022 March 31, 2021
Statement of Income and Comprehensive Income
Royalty revenue $ 6,866 $ 6,883
Sales $ 7,788 $ 6,197
Total revenue $ 14,654 $ 13,080
Cash flow from operating activities $ 8,019 $ 13,479
Net income $ 3,523 $ 14,769
Basic earnings per share $ 0.02 $ 0.10
Diluted earnings per share $ 0.02 $ 0.10
Dividends declared per share $ 0.0125 $ 0.01
Non-IFRS and Other Measures1
Adjusted net income $ 5,661 $ 4,959
Adjusted basic earnings per share $ 0.04 $ 0.04
GEOs sold 7,738 7,302
Average realized gold price per GEO $ 1,894 $ 1,791
Average cash cost per GEO $ 190 $ 223
Cash flow from operating activities, excluding changes in non-cash working capital $ 10,549 $ 8,998
For complete details please refer to the unaudited condensed interim consolidated financial statements and associated
Management Discussion and Analysis for the three months ended March 31, 2022, 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 first quarter results please use this link: MMX Q1 2022 Results
Maverix is on track to achieve its previously announced guidance of 32,000 to 35,000 attributable GEOs1
for 2022 at
approximately a 90% cash margin with approximately 99% of expected revenue derived from gold and silver. Similar to
2021, the Company expects attributable GEOs to increase in the second half of the fiscal year.
Asset Portfolio Updates
Camino Rojo (2% NSR)
Orla Mining Ltd. (“Orla”) declared commercial production at its Camino Rojo oxide mine effective April 1, 2022, after a
successful commissioning period which included the ramp up of mining and processing to sustained throughput levels. All
major construction activities have now been completed and Camino Rojo has demonstrated its ability to sustain ongoing
production levels. Record monthly processing throughput was achieved at Camino Rojo in March 2022. The average daily
stacking throughput for the month was 17,444 tonnes per day (“tpd”) or 97% of nameplate capacity of 18,000 tpd. Achieving
nameplate capacity is expected during the second quarter of 2022. Orla will continue to seek opportunities to improve and
optimize the throughput and availabilities to achieve and ultimately exceed design nameplate capacities.
For more information, please refer to orlamining.com and see the news releases dated April 6, 2022 and March 31, 2022.
Beta Hunt (4.75% Gold Royalty and 1.5% Nickel Royalty)
On April 7, 2022, Karora Resources Inc. (“Karora”) announced an updated consolidated gold mineral resource highlighted
by the maiden gold resource for the Larkin Zone at the Beta Hunt mine. Beta Hunt gold measured and indicated mineral
resources increased by 7% to 1.12 million ounces and the gold inferred mineral resource increased by 46% to 786,000 ounces.
Significant Beta Hunt additions include the maiden Larkin Zone mineral resource comprising gold measured and indicated
resources of 1.44 million tonnes at 2.6 grams per tonne (“g/t”) for 119,000 ounces and a gold inferred resource of 2.17 million
tonnes at 2.3 g/t for 162,000 ounces. The Larkin Zone has been delineated to a strike length of over 1,000 metres and a depth
of 150 metres and remains open along strike and at depth providing significant potential for further expansion as the drill
program at Beta Hunt continues. Targeted drilling at Beta Hunt continues to grow the gold mineral resource inventory in
support of Karora’s growth plan which is underpinned by an expansion to 2.0 million tonnes per annum production from Beta
Hunt by 2024.
For more information, please refer to karoraresources.com and see the news release dated April 7, 2022.
Mt Carlton (2.5% NSR)
On April 22, 2022, Navarre Minerals Limited (“Navarre”) announced high-grade gold, silver and copper drilling intercepts at its Mt Carlton United deposit (“MCU”), part of the recently acquired Mt Carlton Operation (“Mt Carlton”). With drill intercepts of up to 22.9 g/t gold, 1,327 g/t silver and 4.2% copper, the results confirm the outstanding grade and continuity of the mineral inventory at MCU, approximately four kilometres southwest of the Mt Carlton processing facility. While drilling continues in 2022 as part of an ongoing exploration program, Navarre anticipates the drilling results released to date will be incorporated into an updated resource estimate for MCU which is expected to be published in September 2022, along with updated mineral resources for other Mt Carlton deposits such as V2, Telstra Hill and Crush Creek.
For more information, please refer to navarre.com.au and see the news release dated April 22, 2022.
Omolon (2.5% GRR)
On April 25, 2022 Polymetal International plc (“Polymetal”) announced it continues to operate safely and profitably and is fully focused on ensuring business continuity and long-term viability. Polymetal also reconfirmed its fiscal 2022 production guidance. Sanctions announced in the period between March 9, 2022 and April 25, 2022 did not have a material impact on the business of Polymetal and it complies rigorously with all relevant legislation and is implementing comprehensive measures to observe all applicable international sanctions. The scope and impact of any new potential sanctions (and any countersanctions) are yet unknown, however they might further affect key Russian financial institutions as well as mining companies, including Polymetal. Maverix understands that contingency planning has been initiated by Polymetal proactively to maintain business continuity in the event of adverse developments, but no assurances can be made in this regard. The conflict between Russia and Ukraine and any restrictive actions that have or may be taken in response thereto, such as ..
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