(All dollar amounts are in thousands of
United States dollars unless
otherwise indicated, except for shares, per ounce, and per share
amounts)
TSXV: MTA
NYSE American: MTA
VANCOUVER, BC, Aug. 14,
2024 /CNW/ - Metalla Royalty & Streaming
Ltd. ("Metalla" or the "Company") (TSXV:
MTA) (NYSE American: MTA) announces its operating and financial
results for the three and six months ended June 30, 2024. For complete details of the
condensed interim consolidated financial statements and
accompanying management's discussion and analysis for the three and
six months ended June 30, 2024,
please see the Company's filings on SEDAR+ (www.sedarplus.ca) or
EDGAR (www.sec.gov). Shareholders are encouraged to visit the
Company's website at www.metallaroyalty.com.
Brett Heath, President, and
CEO of Metalla, commented, " We're making significant progress at
Metalla. We recently strengthened our leadership team with the
appointment of Jason Cho as
President. Additionally, Tocantinzinho and La Guitarra achieved
first production, and Côté reached commercial production. We
believe these milestones are catalysts for Metalla's growth
trajectory starting in the second half of this year. Furthermore,
we introduced our inaugural asset handbook, showcasing details on
our over 100 royalty and streaming assets."
COMPANY HIGHLIGHTS
Below are some of the key Company highlights for the six months
ended June 30, 2024, and subsequent
period.
- On July 15, 2024, Metalla
published its inaugural Asset Handbook outlining the Company's
gold, silver, and copper royalties and streams. The Asset Handbook
is available on the Company's website;
- On July 24, 2024, the Company
announced the appointment of Jason
Cho as President of the Company. Concurrent with his
appointment, Mr. Cho made a C$1.0
million equity investment into the Company, for the
acquisition of 250,000 common shares of the Company ("Common
Shares") at C$4.00 per Common
Share by way of private placement (the "Placement"). The
Placement closed on August 9,
2024;
- On July 10, 2024, the Company
reported that G Mining Ventures Corp ("G Mining") announced
the first gold pour at the Tocantinzinho gold project in the State
of Pará, Brazil, where Metalla
holds a 0.75% GVR royalty;
- For the three months ended June 30,
2024, the Company received or accrued payments on 401
attributable Gold Equivalent Ounces ("GEOs") at an average
realized price of $2,332 and an
average cash cost of $17 per
attributable GEO (see Non-IFRS Financial Measures). For the
six months ended June 30, 2024, the
Company received or accrued payments on 1,025 attributable GEOs at
an average realized price of $2,173
and an average cash cost of $12 per
attributable GEO (see Non-IFRS Financial Measures);
- For the three months ended June 30,
2024, the Company recognized revenue from royalty and stream
interests, including fixed royalty payments, of $0.9 million, net loss of $1.5 million, and Adjusted EBITDA of $0.2 million (see Non-IFRS Financial
Measures). For the six months ended June
30, 2024, the Company recognized revenue from royalty and
stream interests, including fixed royalty payments, of $2.1 million, net loss of $3.2 million, and Adjusted EBITDA of $0.2 million (see Non-IFRS Financial
Measures);
- For the three months ended June 30,
2024, the Company generated operating cash margin of
$2,315 per attributable GEO, and for
the six months ended June 30, 2024,
the Company generated operating cash margin of $2,161 per attributable GEO from the Wharf, El
Realito, Aranzazu, La Encantada, the New Luika Gold Mine
("NLGM") stream held by Silverback Ltd.
("Silverback"), and other royalty interests (see Non-IFRS
Financial Measures);
- On February 20, 2024, Beedie
Investments Ltd. ("Beedie") elected to convert C$1.5 million of the accrued and unpaid interest
under the existing convertible loan facility between Metalla and
Beedie (the "Convertible Loan Facility") into Common Shares
at a conversion price of C$3.49 per
Common Share, being the closing price of the shares of Metalla on
the TSX-V on February 20, 2024, for a
total of 429,800 Common Shares which were issued on March 19, 2024;
- On June 28, 2024, the Company
filed a new final short form base shelf prospectus and a
corresponding registration statement on Form F-10 that replaced the
base shelf prospectus and Form F-10 registration statement
previously filed by the Company in 2022; and
- Effective August 8, 2024, the
Company adopted a minimum share ownership policy applicable to
directors and officers of the Company in order to further align the
financial interest of Metalla's leadership with the Company's
shareholders. The policy requires, subject to various provisions,
that: (i) the CEO own Common Shares with a fair market value equal
to five times his annual base salary; (ii) the CFO and other
officers own Common Shares with a fair market value equal to two
times their annual base salary; and (iii) non-executive directors
own Common Shares with a fair market value equal to two times their
annual cash retainer. Directors and officers will have three years
to ensure they are in compliance with the newly adopted
policy.
ASSET UPDATES
Below are updates for the three months ended June 30, 2024, and subsequent period to certain
of the Company's assets, based on information publicly filed by the
applicable project owner:
La Encantada
On July 18, 2024, First Majestic
Silver Corp. ("First Majestic") announced production of 46
oz of gold from La Encantada in the second quarter of 2024. Since
successfully identifying a water source in the first quarter, First
Majestic announced ore processing throughput has increased for the
quarter and expects plant ore throughput rates to return to the
historical levels of 3,000 tpd in the third quarter of 2024. First
Majestic also stated that the 2024 exploration program had
commenced during the second quarter after securing the new water
source with one surface rig completing 607 meters of drilling on
the property.
Metalla accrued 16 GEOs from La Encantada for the second quarter
of 2024.
Metalla holds a 100% GVR royalty on gold produced at the La
Encantada mine limited to 1.0 Koz annually.
El Realito
On July 31, 2024, Agnico Eagle
Mines Ltd. ("Agnico") reported that gold production from La
India totaled 6.1 Koz for the second quarter of 2024. Agnico stated
that production is expected to come from residual leaching of the
heap leach pads and is expected to continue through year-end
2024.
Metalla accrued 60 GEOs from El Realito for the second quarter
of 2024.
Metalla holds a 2.0% NSR royalty on the El Realito deposit which
is subject to a 1.0% buyback right for $4.0
million.
Wharf
On August 7, 2024, Coeur Mining
Inc. ("Coeur") reported 2024 second quarter production of
22.0 Koz gold and continues to reiterate the full year guidance for
2024 at Wharf of 86 – 96 Koz gold. Coeur noted that recently
completed studies at two areas within existing and historical
mining zones at Wharf have identified opportunities to meaningfully
extend mine life. Supplemental funding has been approved for a
two-phase drill program in 2024 and 2025 to test the two targets,
Juno and North Foley.
Metalla accrued 101 GEOs from Wharf for the second quarter of
2024.
Metalla holds a 1.0% GVR royalty on the Wharf mine.
Aranzazu
On July 9, 2024, Aura Minerals
Inc. ("Aura") announced the second quarter 2024 production
at Aranzazu totaled 24,692 GEOs (as defined by Aranzazu),
while continuing to reiterate 2024 guidance for Aranzazu, which it
had disclosed on February 20, 2024,
of 94-108 Koz GEOs (as defined by Aranzazu).
Metalla accrued 197 GEOs from Aranzazu for the second quarter of
2024.
Metalla holds a 1.0% NSR royalty on the Aranzazu mine.
Endeavor
On August 5, 2024, Polymetals
Resources Ltd. ("Polymetals") announced by news release an
improved 10-year Endeavor mine plan that increased proved and
probable mineral reserves (as such terms are used and defined by
the JORC code) by 45% from an estimate announced by them in
October 2023, and that first
production is expected in H1-2025. Polymetals also disclosed it has
commenced refurbishment works related to underground infrastructure
and plans to ramp up refurbishment activities upon finalization of
project financing.
Metalla holds a 4.0% NSR royalty on lead, zinc and silver
produced from Endeavor.
Tocantinzinho
On July 9, 2024, G Mining
announced the first gold pour at Tocantinzinho. G Mining stated
that it expects to achieve commercial production and ramp up to
nameplate capacity of 4.7 Mtpa in the second half of 2024. In
addition, G Mining stated that at the end of June, approximately
2.6 Mt of ore, containing 78 Koz gold was stockpiled, ahead of the
processing plant ramp up.
Metalla holds a 0.75% GVR royalty on Tocantinzinho.
La Guitarra
On July 30, 2024, Sierra Madre Gold & Silver Ltd.
("Sierra Madre") announced
the first shipments of silver and gold concentrates from La
Guitarra. Sierra Madre shipped 90.68
dry metric tonnes of concentrate at 3000 g/t silver and 30 g/t gold
with another ~90 dry tonnes of concentrate to be shipped soon
after. Sierra Madre plans to
continue to increase production with a goal of reaching 500 tpd of
throughput for approximately 350 dry tonnes of concentrate per
month by year-end.
Metalla holds a 2.0% NSR Royalty on La Guitarra, subject to a
1.0% buyback for $2.0
million.
Côté-Gosselin
On August 8, 2024, IAMGOLD
Corporation ("IAMGOLD") reported that approximately 11,600
meters and 22,900 meters of drilling were completed in the three
and six months ended June 30, 2024,
respectively, testing different areas of the Gosselin deposit
extensions and to test the gap between the Gosselin West Breccia
body and the Côté Breccia at depth. IAMGOLD also stated that the
2024 Côté gold production is expected to be at the lower end of
guidance of 220 Koz – 290 Koz.
On August 2, 2024, IAMGOLD
announced commercial production at the Côté Gold Mine after
achieving a minimum of 30 consecutive days of operating during
which the mill operated at an average of 60% of nameplate
throughput of 36,000 tpd.
Metalla holds a 1.35% NSR royalty that covers less than 10% of
the Côté Reserves and Resources estimate and covers all of the
Gosselin Resource estimate.
Taca Taca
On July 23, 2024, First Quantum
Minerals Ltd. ("First Quantum") stated in their Q2 2024
MD&A that the Environmental and Social Impact Assessment
("ESIA") for the Taca Taca project continues to be reviewed
by the Salta Province Secretariat of Mining and First Quantum
remains optimistic it will be approved in 2024. Additionally, First
Quantum continued progressing the technical aspects of the
345-kilovolt power line required for the ESIA. During the quarter,
First Quantum continued progressing local community informative
meetings and Phase IV of the bore field industrial water supply
program aimed at examining potential deeper sources of water for
the mine.
First Quantum also noted the Argentinian President, Javier Milei, has pushed a new bill to congress
offering special incentives for large investments in certain
sectors including mining. The bill was enacted into law by the
executive branch of the Argentinian government on July 8, 2024.
Metalla holds a 0.42% NSR royalty on Taca Taca subject to a
buyback based on the amount of Proven Reserves in a feasibility
study multiplied by the prevailing market prices of all applicable
commodities.
Amalgamated Kirkland and
North AK
On July 31, 2024, Agnico announced
production for the Near Surface deposit continued in the second
quarter of 2024, with volume of ore mined and milled exceeding
planned targets. On April 25, 2024,
Agnico announced the development for the AK deposit is on track for
initial production in the fourth quarter of 2024. Infill drilling
at the AK deposit intersected a highlight intercept of 11.8 g/t
gold over 5.0 meters in the eastern shallow portion of the AK
deposit.
On February 15, 2024, Agnico
announced that production from the Near Surface deposits is planned
to be processed at the Macassa mill in the first half of 2024 and
at the La Ronde Zone 5 mill in the second half of 2024. Production
from the AK deposit, which is expected to begin in the second half
of 2024 is planned to be processed at the La Ronde facility.
Production from the two deposits is forecast by Agnico to be ~19
Koz in 2024 and between 35 – 50 Koz gold from 2025 to 2028 and
Agnico believes that the AK area remains prospective for future
mineral resource growth. Additionally, Agnico reported an updated
Mineral Reserve estimates of 160 Koz of Probable Reserves at 6.69
g/t gold and updated Mineral Resource estimates of 37 Koz of
Indicated Resources at 6.95 g/t gold, and 52 Koz of Inferred
Resources at 5.69 g/t gold.
Metalla holds a 0.45% NSR royalty on the Amalgamated Kirkland
and North AK properties.
Wasamac
On April 25, 2024, Agnico reported
that stakeholder engagement initiatives continue to advance, while
assessing the optimal mining rate and processing options for
Wasamac. On February 15, 2024, Agnico
reported the results of the 2023 infill and conversion drilling
completed at Wasamac with highlight intercepts of 4.9 g/t gold over
13.4 meters, 2.8 g/t gold over 18.8 meters and 4.4 g/t gold over
3.9 meters in the main zone. At the Wildcat zone, significant
highlights include 3.6 g/t gold over 20.6 meters and 5.6 g/t golds
over 4.1 meters. Agnico plans to spend $2.8
million for 16,700 meters of drilling at Wasamac in 2024 and
continues to assess various scenarios to define the optimal mining
rate and milling strategy for Wasamac.
Metalla holds a 1.5% NSR royalty on the Wasamac project subject
to a buyback of 0.5% for C$7.5
million.
Castle Mountain
On August 7, 2024, Equinox Gold
Corp. ("Equinox") reported in their Q2 2024 MD&A that a
surface exploration program of geological mapping and channel
sampling at Castle Mountain is expected to commence in Q3 2024,
with the primary goal to sample previously identified
mineralization exposed on surface such that data can be used in
future mineral resource estimation. Equinox also reported that the
mine permitting amendment plan was submitted to the lead county and
BLM agencies which reviewed the plan for completeness in early
2023. Equinox received the BLM determination that the plan was
complete in Q1 2024 and expects to receive the notice of intent in
H2 2024, upon which the formal permitting process will begin. Work
on the preliminary draft Environmental Impact Statement will occur
throughout 2024 and 2025 upon creation of a memorandum of
understanding with the BLM, San Bernardino County and Castle
Mountain.
Metalla holds a 5.0% NSR royalty on the South Domes area of the
Castle Mountain mine.
Akasaba West
On April 25, 2024, Agnico
announced Akasaba West achieved commercial production on
February 1, 2024. Akasaba West is
expected to provide flexibility at the Goldex complex, contributing
1,750 tpd grading 0.84 g/t gold and 0.48% copper. On February 15, 2024, Agnico announced that Akasaba
West is expected to contribute approximately 12 Koz of gold and 2.3
Kt of copper per year.
Metalla holds a 2.0% NSR royalty on the Akasaba West project
subject to a 210 Koz gold exemption.
La Parrilla
On June 24, 2024, Silver Storm
Mining Ltd. ("Silver Storm") released highlighted intercepts
from drilling at La Parrilla of 504 g/t AgEq over 5.14 meters and
367 g/t AgEq over 2.63 meters in San Marcos South. At San Marcos
North, Silver Storm released highlight intercepts of 405 g/t AgEq
over 1 meter and 191 g/t AgEq over 3.25 meters.
In a corporate presentation dated June
2024, Silver Storm also laid out its plan to release a
technical study and mine plan in Q4 2024 to support future restart
of mining and processing with a target of Q3 2025.
Metalla holds a 2.0% NSR royalty on La Parrilla.
San Luis
On July 29, 2024, Highlander
Silver Corp. reported the start of field activities at San Luis,
including geological mapping and sampling.
Metalla holds a 1.0% NSR royalty on San Luis.
Fifteen Mile
Stream
On April 24, 2024, St. Barbara
Limited ("St. Barbara") reported that significant progress
was made in updating the environmental and social impact studies
for Fifteen Mile Stream, with community consultations progressing.
On October 10, 2023, St. Barbara
reported results of an updated Pre-Feasibility Study ("PFS")
for Fifteen Mile Stream. The PFS proposes an eleven-year mine life
producing an average of 55-60 Koz per annum at a cash cost of
$992/oz. St. Barbara has stated that
development could begin as early as 2026.
Metalla holds a 1.0% NSR royalty on the Fifteen Mile Stream
project, and 3.0% NSR royalty on the Plenty and Seloam Brook
deposits.
Montclerg
On May 29, 2024, GFG Resources
Inc. reported that it is currently advancing the geological model
at the Montclerg deposit to identify areas for resource expansion
and additional stand-along targets. The Lower Footwall zone
has shown strong down-dip continuity with the most recent and
deepest drillhole intercepts grading 4.79 g/t Au over 12.8 meters
and 10.05 g/t Au over 4.3 meters.
Metalla holds a 1.0% NSR royalty on the Montclerg property.
Detour DNA
On June 19, 2024, Agnico reported
the results of a technical study reflecting the potential for a
concurrent underground operation yielding 300 Koz gold per year at
Detour Lake.
Metalla holds a 2.0% NSR royalty on the Detour DNA property
which is approximately 7 km west of the Detour West reserve pit
margin.
SECURITIES LAWS MATTERS
The proceeds of the Placement will be used for general working
capital purposes. The Common Shares issued under the Placement are
subject to a statutory hold period of four months and a day from
issuance, in accordance with applicable Canadian securities
laws.
Jason Cho is an insider and
related party of Metalla, and therefore his participation in the
Placement is considered a "related party transaction" subject
to Multilateral Instrument 61-101 – Protection of Minority
Security Holders in Special Transactions ("MI 61-101"). The
Company is relying on exemptions from the formal valuation and
minority shareholder approval requirements provided under
subsections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that
participation in the Placement by an insider did not exceed 25% of
the Company's market capitalization. The Company did not file
a material change report more than 21 days before the expected
closing date of the Placement as the details of the Placement were
not settled until shortly prior to the closing of the Placement,
and the Company wished to close the Placement on an expedited basis
for sound business reasons.
QUALIFIED PERSON
The technical information contained in this news release has
been reviewed and approved by Charles
Beaudry, geologist M.Sc., member of the Association of
Professional Geoscientists of Ontario and of the Ordre des Géologues du
Québec. Mr. Beaudry is a QP as defined in National Instrument
43-101 - Standards of Disclosure for Mineral Projects
("NI 43-101").
ABOUT METALLA
Metalla is a precious and base metals royalty and streaming
company with a focus on gold, silver, and copper royalties and
streams. Metalla provides shareholders with leveraged metal
exposure through a diversified and growing portfolio of royalties
and streams. Our strong foundation of current and future
cash-generating asset base, combined with an experienced team gives
Metalla a path to become one of the leading gold, silver, and
copper companies for the next commodities cycle.
For further information, please visit our website at
www.metallaroyalty.com
ON BEHALF OF METALLA ROYALTY & STREAMING LTD.
(signed) "Brett Heath"
President and CEO
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accept
responsibility for the adequacy or accuracy of this
release.
Non-IFRS Financial Measures
Metalla has included certain performance measures in this
press release that do not have any standardized meaning prescribed
by International Financial Reporting Standards (IFRS) including (a)
attributable gold equivalent ounces (GEOs), (b) average cash cost
per attributable GEO, (c) average realized price per attributable
GEO, (d) operating cash margin per attributable GEO, and (e)
Adjusted EBITDA. 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.
(a) Attributable GEOs
Attributable GEOs are
a non-IFRS financial measure that is composed of gold ounces
attributable to the Company, calculated by taking the revenue
earned by the Company in the period from payable gold, silver,
copper and other metal ounces attributable to the Company divided
by the average London fix price of
gold for the relevant period. In prior periods the GEOs included an
amount calculated by taking the cash received or accrued by the
Company in the period from the derivative royalty asset divided by
the average London fix gold price
for the relevant period. The Company presents attributable GEOs as
it believes that certain investors use this information to evaluate
the Company's performance in comparison to other streaming and
royalty companies in the precious metals mining industry who
present results on a similar basis. The Company's attributable GEOs
for the three and six months ended June 30,
2024, were:
|
Three
months
|
|
Six
months
|
|
ended
|
|
ended
|
Attributable GEOs
during the period from:
|
June 30,
2024
|
|
June 30,
2024
|
Wharf
|
101
|
|
274
|
El
Realito
|
60
|
|
237
|
La
Encantada
|
16
|
|
64
|
Aranzazu
|
197
|
|
397
|
NLGM
|
27
|
|
53
|
Total attributable
GEOs
|
401
|
|
1,025
|
(b) Average cash cost per attributable
GEO
Average cash cost per attributable GEO is a
non-IFRS financial measure that is calculated by dividing the
Company's total cash cost of sales, excluding depletion by the
number of attributable GEOs. The Company presents average
cash cost per attributable GEO as it believes that certain
investors use this information to evaluate the Company's
performance in comparison to other streaming and royalty companies
in the precious metals mining industry who present results on a
similar basis. The Company's average cash cost per attributable GEO
for the three and six months ended June 30,
2024, was:
|
Three
months
|
|
Six
months
|
|
ended
|
|
ended
|
|
June 30,
2024
|
|
June 30,
2024
|
Cost of sales for
NLGM
|
$7
|
|
$12
|
Total cash cost of
sales
|
7
|
|
12
|
Total attributable
GEOs
|
401
|
|
1,025
|
Average cash cost
per attributable GEO
|
$17
|
|
$12
|
(c) Average realized price per attributable
GEO
Average realized price per attributable GEO is a
non-IFRS financial measure that is calculated by dividing the
Company's revenue, excluding any revenue earned from fixed royalty
payments, by the number of attributable GEOs. The Company presents
average realized price per attributable GEO as it believes that
certain investors use this information to evaluate the Company's
performance in comparison to other streaming and royalty companies
in the precious metals mining industry that present results on a
similar basis. The Company's average realized price per
attributable GEO for three and six months ended June 30, 2024,
was:
|
Three
months
|
|
Six
months
|
|
ended
|
|
ended
|
|
June 30,
2024
|
|
June 30,
2024
|
Royalty revenue
(excluding fixed royalty payments)
|
$873
|
|
$2,111
|
Revenue from
NLGM
|
62
|
|
116
|
Sales from stream
and royalty interests
|
935
|
|
2,227
|
Total attributable
GEOs sold
|
401
|
|
1,025
|
Average realized
price per attributable GEO
|
$2,332
|
|
$2,173
|
(d) Operating cash margin per attributable
GEOOperating cash margin per attributable GEO is a
non-IFRS financial measure that is calculated by subtracting the
average cast cost price per attributable GEO from the average
realized price per attributable GEO. The Company presents operating
cash margin per attributable GEO as it believes that certain
investors use this information to evaluate the Company's
performance in comparison to other streaming and royalty companies
in the precious metals mining industry that present results on a
similar basis.
(e) Adjusted EBITDA
Adjusted EBITDA is a
non-IFRS financial measure which excludes from net income taxes,
finance costs, depletion, impairment charges, foreign currency
gains/losses, share based payments, and non-recurring items.
Management uses Adjusted EBITDA to evaluate the Company's
operating performance, to plan and forecast its operations, and
assess leverage levels and liquidity measures. The Company presents
Adjusted EBITDA as it believes that certain investors use this
information to evaluate the Company's performance in comparison to
other streaming and royalty companies in the precious metals mining
industry who present results on a similar basis. However, Adjusted
EBITDA does not represent, and should not be considered an
alternative to net income (loss) or cash flow provided by operating
activities as determined under IFRS. The Company's adjusted EBITDA
for three and six months ended June 30,
2024, was:
|
Three
months
|
|
Six
months
|
|
ended
|
|
ended
|
|
June 30,
2024
|
|
June 30,
2024
|
Net
loss
|
$(1,491)
|
|
$(3,223)
|
Adjusted
for:
|
|
|
|
Interest
expense
|
475
|
|
979
|
Finance
charges
|
85
|
|
170
|
Income tax
provision
|
14
|
|
24
|
Depletion
|
521
|
|
1,284
|
Foreign exchange
gain
|
(79)
|
|
(180)
|
Share-based
payments
|
640
|
|
1,189
|
Adjusted
EBITDA
|
$165
|
|
$243
|
(e) Adjusted working capital
Adjusted
working capital is a non-IFRS measure which is calculated by taking
the Company's current assets less its current liabilities,
excluding the Convertible Loan Facility. The Company presents
working capital, adjusted for the Convertible Loan Facility, as the
classification of the Convertible Loan Facility as a current
liability is driven by changes in classification requirements under
IFRS and not because the Company expects that liability to be
settled in cash within the next twelve months. The Company believes
that the exclusion of the Convertible Loan Facility from adjusted
working capital gives a more accurate picture of the liquidity of
the Company. Adjusted working capital is not a standardized
financial measure under IFRS and therefore may not be comparable to
similar measures presented by other companies. The Company's
adjusted working capital as at June 30,
2024, was:
|
As at
|
|
|
June 30,
2024
|
|
Total current
assets
|
$10,776
|
|
Less:
|
|
|
Total current
liabilities
|
(13,225)
|
|
Working
capital
|
(2,449)
|
|
Adjusted
for:
|
|
|
Convertible loan
facility
|
12,534
|
|
Adjusted working
capital
|
$10,085
|
|
Refer the Company's MD&A for the three and six months
ended June 30, 2024, which is
available on SEDAR+ at www.sedarplus.ca, for a numerical
reconciliation of the non-IFRS financial measures described above.
The presentation of these non-IFRS financial measures 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 financial measures differently.
Future-Oriented Financial Information
This news release contains future-oriented financial
information and financial outlook information (collectively,
"FOFI") about Metalla's anticipated revenues from the
Endeavor NSR which was prepared by Polymetals and is subject to the
assumptions, risk factors, limitations and qualifications as set
forth in this news release. FOFI contained in this news release was
made as of the date of this news release and was provided for the
purpose of providing further information about Metalla's
anticipated future business operations. Metalla disclaims any
intention or obligation to update or revise any FOFI contained in
this press release, whether as a result of new information, future
events or otherwise, unless required pursuant to applicable law.
FOFI contained in this news release should not be used for purposes
other than for which it is disclosed herein.
Technical and Third-Party Information
Metalla has limited, if any, access to the properties on
which Metalla(or any of its subsidiaries) holds a royalty, stream
or other interest. Metalla is dependent on (i) the operators of the
mines or properties and their qualified persons to provide
technical or other information to Metalla, or (ii) publicly
available information to prepare disclosure pertaining to
properties and operations on the mines or properties on which
Metalla holds a royalty, stream or other interest, and generally
has limited or no ability to independently verify such information.
Although Metalla does not have any knowledge that such information
may not be accurate, there can be no assurance that such
third-party information is complete or accurate. Some information
publicly reported by operators may relate to a larger property than
the area covered by Metalla's royalty, stream or other interests.
Metalla's royalty, stream or other interests can cover less than
100% and sometimes only a portion of the publicly reported mineral
reserves, resources and production of a property.
Unless otherwise indicated, the technical and scientific
disclosure contained or referenced in this press release,
including any references to mineral
resources or mineral reserves, was prepared in accordance with
Canadian NI 43-101, which differs
significantly from the requirements of the U.S. Securities and
Exchange Commission (the
"SEC") applicable to U.S.
domestic issuers. Accordingly, the scientific and technical
information contained or referenced in this press
release may not be comparable to similar information
made public by U.S. companies subject to the
reporting and disclosure requirements of the
SEC.
"Inferred mineral resources" have a
great amount of uncertainty as to their existence and great
uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be
upgraded to a higher category. Historical results or
feasibility models presented herein are not guarantees
or expectations of future
performance.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements") within the meaning of applicable securities
legislation. The forward-looking statements herein are made as of
the date of this press release only and the Company does not intend
to and does not assume any obligation to update or revise them
except as required by applicable law.
All statements included herein that address events or
developments that we expect to occur in the
future are forward-looking
statements. Generally, forward-looking statements can be identified
by the use of forward-looking terminology such
as "plans", "expects", "is expected", "budgets",
"scheduled", "estimates", "forecasts", "predicts",
"projects", "intends", "targets", "aims",
"anticipates" or "believes" or variations (including
negative variations) of such words and phrases or may be
identified by statements to the effect
that certain actions "may", "could", "should", "would", "might" or
"will" be taken, occur or be
achieved. Forward-looking statements in this press
release include, but are not limited to, statements
regarding: future events or future performance of
Metalla; the completion of the Company's royalty
purchase transactions; the Company's
plans and objectives; the Company's future financial
and operational performance;
expectations regarding stream and royalty
interests owned by the Company; the satisfaction of
future payment obligations, contractual commitments and contingent
commitments by Metalla; the future
achievement of any milestones in respect of the payment or
satisfaction of contingent consideration by
Metalla; the completion by
property owners of announced drilling programs, capital
expenditures, and other planned activities
in relation to properties on which the
Company and its subsidiaries hold a royalty or
streaming interest and the expected timing
thereof; production and life of mine estimates or
forecasts at the properties on which the Company and
its subsidiaries hold a royalty or
streaming interest; future
disclosure by property owners and the expected
timing thereof; the completion by
property owners of announced capital expenditure
programs; management's statements regarding Metalla's growth
trajectory; the use of proceeds from the Placement; the Company
undertaking any offering of securities under the its base shelf
prospectus and corresponding registration statement; the increase
of ore throughput rates at La Encantada to historical levels and
the timing thereof; that production at El Realito
will come from residual leaching of heap leach pads and will
continue through year-end 2024; the
expected 2024 production guidance at Wharf; the
potential opportunity to extend mine life at Wharf; the two phase
drill-program at Wharf in 2024 and 2025 to test the two new
targets; the expected 2024 production guidance at Aranzazu; the
updated mine plan at Endeavor; the expected timing of first
production at Endeavor; the increase of Mineral Reserves at
Endeavor; the ramp up of refurbishment activities upon finalization
of project financing at Endeavor; the achievement of commercial
production and ramp up to nameplate capacity at and the timing
thereof at Tocantinzinho; the expected shipments at La Guitarra;
Sierra Madre's plans to increase
production at La Guitarra; the expected 2024 production guidance at
the Côté Gold Project; the receipt of
approval for the Environmental and Social Impact Assessment at Taca
Taca and the anticipated timing thereof;
the expected start of production at the AK deposit and the
anticipated timing thereof; the production
processing at the Near Surface and the AK deposits and the
anticipated timing thereof; the expected
production at the Near Surface and the AK deposits; the planned
drilling program for 2024 for Wasamac and related
expenditures; the assessment by Agnico of optimal
mining rate and milling strategy for Wasamac; the
start and the focus of the surface exploration program of
geological mapping and channel sampling at
Castle Mountain and the timing
thereof; the receipt of a notice of intent in
connection with the mine permitting amendment plan for Castle
Mountain and the anticipated timing thereof; the beginning of the
formal permitting process at Castle Mountain; the work on the
preliminary draft Environmental Impact Statement for Castle
Mountain throughout 2024 and 2025; the creation of a memorandum of
understanding with the BLM, San Bernardino County and Castle
Mountain; the expectation that Akasaba West
will provide flexibility at the Goldex complex; the
expected production at Akasaba West;
the release of a technical study and mine plan for La Parrilla
and the anticipated timing thereof; the restart of mining and
processing at La Parrilla and the anticipated timing thereof; the
expected mine life, production and cash costs for Fifteen Mile
Stream; the start of development of Fifteen
Mile Stream and anticipated timing thereof; the
identification of areas for resource expansion and additional
stand-along targets at Montclerg; the potential for a concurrent
underground operation at Detour
DNA; royalty payments to be paid to
Metalla by property owners or operators of mining projects
pursuant to each royalty
interest; the future outlook of Metalla
and the mineral reserves and resource estimates for
the properties with respect to which the
Metalla has or proposes to acquire an
interest; future gold, silver and
copper prices; other potential developments
relating to, or achievements by, the counterparties
for the Company's stream and royalty agreements,
and with respect to the mines and other properties
in which the Company has, or may acquire, a stream
or royalty interest; costs and other
financial or economic
measures; prospective transactions;
growth and achievements; financing
and adequacy of capital; future
payment of dividends; future public and/or private
placements of equity, debt or hybrids thereof;
and the Company's ability to fund its current
operational requirements and capital
projects.
Such forward-looking statements reflect management's current
beliefs and are based on information currently
available to management. Forward-looking statements
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 statements are subject to
various known and unknown risks and
uncertainties, many of which are beyond the ability of
Metalla to control or predict, that may cause
Metalla's actual results, performance or achievements
to be materially different from those expressed or
implied thereby, and are developed based
on assumptions about such risks, uncertainties and other
factors set out herein, including but not
limited to: risks related to commodity price
fluctuations; the absence of control over mining
operations from which Metalla will
purchase precious metals pursuant to gold
streams, silver streams and other agreements or from which it will
receive royalty payments pursuant to
net smelter returns, gross overriding royalties, gross
value royalties and other royalty
agreements or interests 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 are refined; risks related to
exchange rate fluctuations; that
payments in respect of streams and royalties may be delayed or may
never be made; risks
related to Metalla's reliance on public disclosure and
other information regarding the mines or
projects underlying its streams
and royalties; that some
royalties or streams may be subject to
confidentiality arrangements that limit or prohibit
disclosure regarding
those royalties and
streams; business opportunities that
become available to, or are pursued by, Metalla;
that Metalla's cash flow is
dependent on the activities of others;
that Metalla has had negative cash flow from
operating activities in
the past; that some royalty and stream
interests are subject to rights of other
interest-holders; that
Metalla's royalties and streams may have
unknown defects; risks related to
Metalla's two material assets,
the Côté property and the Taca Taca
property; risks related to general
business and economic
conditions; risks related to global
financial conditions, geopolitical events and other
uncertainties; risks
related to epidemics, pandemics or
other public health crises, including COVID-19 global
health pandemic, and the spread of
other viruses or pathogens, and
the potential impact thereof on Metalla's
business, operations and financial
condition; that Metalla is dependent on
its key personnel; risks
related to Metalla's financial
controls; dividend
policy and future payment of
dividends; competition;
that project operators may not respect
contractual obligations; that
Metalla's royalties and streams may be
unenforceable; risks related to
conflicts of interest of Metalla's directors and
officers; that Metalla may
not be able to obtain adequate financing
in the future; risks related
to Metalla's current credit facility and financing
agreements; litigation; title,
permit or license disputes related to
interests on any of the properties in which Metalla
holds, or may acquire, a royalty,
stream or other interest;
interpretation by government entities of tax laws
or the implementation of new tax
laws; changes in tax laws impacting
Metalla; risks related to
anti-bribery and anti-corruption laws;
credit and liquidity risk; risks related to
Metalla's information systems and cyber
security; risks posed by
activist shareholders;
that Metalla may suffer reputational damage in the ordinary
course of
business; risks
related to acquiring, investing in or developing
resource projects; risks applicable
to owners and operators of properties
in which Metalla holds an
interest; exploration, development
and operating
risks; risks related to climate
change; environmental
risks; that the exploration and
development activities related to mine
operations are subject to extensive laws and
regulations; that the
operation of a mine or project is subject
to the receipt and maintenance of permits from
governmental
authorities; risks
associated with the acquisition and maintenance of
mining infrastructure; that
Metalla's success is dependent on
the efforts of operators'
employees; risks related to mineral
resource and mineral reserve
estimates; that mining
depletion may not be replaced by the discovery of new mineral
reserves; that operators'
mining operations are subject to
risks that may not be able to be insured
against; risks
related to land title; risks related
to international operations; risks
related to operating in countries with
developing economies; risks
related to the construction, development and
expansion of mines or
projects; risks associated with operating
in areas that are presently, or were formerly, inhabited
or used by indigenous
peoples; that Metalla is required, in certain
jurisdictions, to allow individuals from that
jurisdiction to hold nominal interests
in Metalla's subsidiaries in that
jurisdiction; the volatility of the
stock
market; that existing
securityholders may be
diluted; risks related to Metalla's
public disclosure
obligations; risks
associated with future sales or issuances of debt or
equity securities; risks associated with
the Company's loan facility; that there can be
no assurance that an active trading market for
Metalla's securities will be
sustained; risks related to the enforcement of
civil judgments against Metalla; risks
relating to Metalla potentially being a passive "foreign
investment company" within the meaning of
U.S. federal tax laws; and the other
risks and uncertainties disclosed under the heading "Risk Factors"
in the Company's most recent Annual
Information Form, annual report on Form 40-F and other
documents filed with or submitted to the Canadian
securities regulatory authorities on the SEDAR+
website at www.sedarplus.ca and the U.S. Securities
and Exchange Commission on the EDGAR website at
www.sec.gov. Although we have attempted to identify
important factors that could cause actual actions,
events or results to differ materially from those
described in forward-looking statements, there may be
other factors that cause actions, events
or results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking
statements will prove to be accurate, as actual results
and future events could differ materially from those
anticipated in such statements. Accordingly,
readers should not place undue reliance on
forward-looking statements. We are under no obligation
to update or alter any forward-looking
statements except as required under applicable securities laws. For
the reasons set forth above, undue
reliance should not be placed on forward-looking
statements.
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SOURCE Metalla Royalty & Streaming Ltd.