VANCOUVER, Aug. 23, 2018 /CNW/ - Maverix Metals Inc. (the
"Company" or "Maverix") (TSX-V: MMX) is pleased to announce its
operating and financial results for the second quarter ended
June 30, 2018.
For complete details please refer to the Financial Statements
and associated Management Discussion and Analysis for the quarter
ended June 30, 2018, available on
SEDAR (www.sedar.com) or the Company's website
(www.maverixmetals.com).
All dollar amounts are in Canadian dollars unless otherwise
indicated.
Second Quarter 2018 Highlights
- Record revenue of $8.5
million;
- Operating cash flow of $5.4
million, excluding changes in non-cash working
capital(1);
- Adjusted net income of $0.4
million(1);
- Record attributable gold equivalent ounces sold of 5,017
ounces(1);
- Average cash cost per attributable gold equivalent ounce of
$186 resulting in cash operating
margins of $1,504 per
ounce(1);
- Completed the acquisition of a significant portfolio of 51
royalties from Newmont Mining Corporation ("Newmont") and its
affiliates for consideration of 60 million common shares, 10
million common share purchase warrants and a gross cash payment of
US$17 million; and
- Secured a new US$50 million
revolving credit facility with Canadian Imperial Bank of Commerce
and National Bank Financial.
"Maverix had a strong first half of 2018 highlighted by record
revenue and attributable gold equivalent production this quarter"
commented Dan O'Flaherty, President
and CEO of Maverix. "We were also pleased to complete our
acquisition of a significant royalty portfolio from Newmont in the
second quarter and we remain focused on using our increased
financial capacity to continue to expand our growing royalty
portfolio".
Outlook
Based on its existing royalties and streams, the Company
continues to forecast attributable gold equivalent production of
between 18,000 – 19,000 ounces for 2018, a 50% – 60% increase over
2017.
Select Royalty Asset Updates
- Silvertip: Coeur Mining ("Coeur") reported that
operating activities at the Silvertip Mine in British Columbia are ramping up with
processing rates averaging 300 tonnes per day in July and
periodically exceeding 500 tonnes per day. Coeur made capital
expenditures during the quarter of US$19.0
million (including US$4.7
million of capitalized drilling) in development and process
facility commissioning, bringing first half capital expenditures to
US$37.7 million. Commercial
production at Silvertip is expected to commence during the third
quarter.
Coeur also announced the results of the first phase of its 2018
drill program. The 44,500 metre drill program successfully
discovered several new mineralized zones which Coeur believes
demonstrates strong potential for future resource growth. Given the
success of this initial program, Coeur has approved and commenced a
US$4 million second phase focused on
expanding resources and testing prospective targets located on the
mine's 93,000 acre land package.
For more information refer to www.coeur.com and see the press
release dated July 25, 2018.
- Hope Bay: TMAC Resources Inc. ("TMAC") reported record
gold poured of 25,970 ounces at Hope Bay, up 38% from the first
quarter due to improved plant recoveries. TMAC is planning the
installation of six gravity concentrators and a number of other
improvements throughout the remainder of the year that are designed
to drive recoveries up to 90% in the fourth quarter. As well, TMAC
announced that the Nunavut Impact Review Board has recommended to
the Minister of Crown-Indigenous Relations and Northern Affairs
Canada that TMAC's proposed Madrid-Boston Project at Hope Bay be
permitted to proceed.
For more information refer to www.tmacresources.com and see the
press release dated August 13,
2018.
|
(1)
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
adjusted net income, average cash cost per attributable gold
equivalent ounce, cash operating margin and operating cash flow
excluding non-cash working capital. 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. These measures are
not necessarily indicative of operating profit or cash flow from
operations as determined under IFRS. Other companies may calculate
these measures differently. For a reconciliation of these measures
to various IFRS figures, please see the following descriptions or
the Company's current Management Discussion and Analysis disclosure
found on the Company's website or on SEDAR. Adjusted net income is
calculated by excluding the effects of other income/expenses,
impairment charges, gains/(losses) on sale of royalty and streams
and unusual non-recurring items. Average cash cost per attributable
gold equivalent ounce is calculated by dividing the total cost of
sales, less depletion, by the ounces sold. 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'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. Operating cash flows excluding changes in
non-cash working capital 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. Note
these figures have not been audited and are subject to
change.
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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 the gold price 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 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.