Precious metals focused Metalla Royalty and Streaming Ltd (CVE:MTA) has lifted its production guidance for the year to end May and declared a monthly dividend as it reported record quarterly production.
For the three months to end November (second quarter) the firm said 158,865 ounces of silver were shipped and provisionally invoiced
In addition, the firm held 25,906 ounces silver of attributable inventory at the end of the quarter, to be realized in the subsequent quarter.
Metalla also said the board had approved and declared a monthly cash dividend payment of 0.1% share on its shares for the coming quarter (subject to any applicable tax withholding obligations) with a payment date on January 15 next year.
Meanwhile, Metalla is raising its production guidance for its fiscal year to end May to 450,000 to 500,000 ounces of silver from its previously stated 400,000 to 470,000 ounces.
This is mainly due to higher silver production and recoveries at the Endeavor mine, it said.
The operator is also carrying out exploration and expansion drilling program with the goal of increasing the life of mine.
"For the second quarter of fiscal 2018, our revenue and cash flow from sales are expected to grow significantly compared to the previous quarter. That growth reflects the Endeavor mine achieving a full quarter of normalized production," said Brett Heath, Metalla's president and chief executive.
"It is with great satisfaction that we have achieved a goal of paying a dividend that we set out to accomplish when we started just over a year ago.
"This demonstrates to the market Metalla's strict discipline and proven strategy of acquiring royalty and streaming assets, building real accretive value, and now being able to share that with every owner of the company. We continue to seek accretive acquisitions to build the company's value on a per-share basis."
Metalla added that it plans to expand this dividend over the calendar year of 2018, with the goal of paying out 50% of its after-tax and G&A (general and administrative) operating cash flow.
The divi amount will be linked to the gold and silver price and operating cash flow that the company's royalties and streams generate.