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Metalla Royalty & Streaming reports uplift in revenue and operating cash margin in first quarter

Metalla Royalty now holds 50 precious metal royalty and streams

Metalla Royalty & Streaming Ltd -
The group's operating cash margin for the period came in at US$1,720.88 compared to US$1,074.80 per attributable gold equivalent ounce in its fiscal first quarter last year

Metalla Royalty & Streaming Ltd (NYSEAMERICAN:MTA) (CVE:MTA) continues to grow its asset portfolio and has reported an increase in revenue and operating margin in its first quarter to August 31, 2020.

The firm now holds 50 precious metal royalty and streams and recognized revenue from these assets in the three month period of C$0.5 million, compared to C$0.2 million in the same quarter of 2019.

READ: Metalla closes acquisition of royalty interest in Fosterville mine

The group's operating cash margin for the period came in at US$1,720.88 compared to US$1,074.80 per attributable gold equivalent ounce in fiscal first quarter last year.

The first quarter represented "another major step in growth for Metalla's royalty portfolio with the addition of two producing royalties, Wharf and Higginsville, and the highly coveted Fosterville royalty", Brett Heath, the president and chief executive of Metalla, said in the results statement.

"We are excited about the new opportunities in front of us and to see many of our assets having exploration success while being advanced toward production by our first-class counterparties," the company boss added.

The 1% gross value royalty interest on the Wharf mine operated by Coer Mining in South Dakota was purchased from third parties for a total consideration of US$1 million in cash and 899,201 shares.

In its first quarter, Metalla also struck a deal with Morgan Stanley Capital Group Inc to acquire an existing 27.5% price participation royalty interest on Karora Resources Inc's (TSE:KRR) Higginsville Gold Operations (Higginsville) for up to US$6.5 million in shares.

Meanwhile, at Fosterville in Australia, Kirkland Lake Gold (TSE:KL) announced results from drilling in the Harrier system which continued to return encouraging results, demonstrating a sustained growth opportunity down dip and in the southern extensions.

Metalla holds a 2.5% net smelter royalty (NSR) royalty on the northern and southern sections of the Fosterville mining lease.

The period also saw the royalty firm draw down a remaining C$5 million from the original loan facility with Beedie Capital, now amended, with a revised conversion price of C$9.90 and Beedie will make an additional $20 million available to the group to fund future acquisitions.

The group's net loss for the three months to August 31, 2020, was C$1.9 million, up from a loss of C$0.5 million in the same period of 2019, while adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was a loss of C$0.3 million, compared to a loss of C$0.6 million in the same period last year.

Metalla also said that to better align its reporting cycle with its peers and royalty and stream partners, the group be changing its year-end to December 31 starting at the end of this year.

Contact the author at [email protected]

Quick facts: Metalla Royalty & Streaming Ltd

Price: 12.11 CAD

TSX-V:MTA
Market: TSX-V
Market Cap: $474.88 m
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Metalla Royalty & Streaming signs agreement with Morgan Stanley for royalty...

Metalla Royalty & Streaming Ltd (NYSE American: MTA-CVE: TSXV: MTA) President and CEO Brett Heath joined Steve Darling from Proactive with news Metalla has entered into a purchase and sale agreement with Morgan Stanley Capital Group to acquire an existing 27.5% price participation royalty...

on 09/21/2020

3 min read