TSX: NSR
NYSE: NSR
(in U.S. dollars unless otherwise noted)
This news release constitutes a "designated news release" for
the purposes of Nomad's prospectus supplement dated June 22, 2021, to its short form base shelf
prospectus dated September 30,
2020.
MONTREAL,
April 11, 2022 /CNW/
- Nomad Royalty Company Ltd. ("Nomad" or the "Company") (TSX:
NSR) (NYSE: NSR) is pleased to announce its preliminary deliveries
and sales from its royalty, stream and other interests for the
first quarter of 2022.
|
Q1
2022
|
|
Precious metal
deliveries breakdown (ounces)
|
|
Gold(1)
|
2,651
|
|
Silver
|
215,566
|
|
|
|
Gold equivalent
ounces – all metals (ounces)
|
|
Gold equivalent ounces
– precious metals(1)(2)
|
5,408
|
|
Gold equivalent ounces
– copper(3)
|
1,196
|
|
Gold equivalent
ounces – attributable to Nomad
|
6,604
|
The Company realized preliminary revenues(4) of
$13.8 million for the three-month
period ended March 31, 2022 of which
$12.7 million are attributable to
Nomad, resulting in preliminary cash operating margin attributable
to Nomad(4)(5) of $11.0
million.
Notes:
ASSET UPDATES AND RECENT DEVELOPMENTS:
|
(1)
|
Preliminary gold
deliveries include gold equivalent ounces of cash settled amounts
for the RDM and Moss net smelter return ("NSR")
royalties.
|
|
|
|
(2)
|
The Company's royalty
and stream revenues are converted to gold equivalent ounces by
dividing revenues for a specific period by the average realized
gold price per ounce for the gold stream revenues and by dividing
revenues by the average gold price per ounce for the gold royalty
revenues, for the respective period. Silver earned from royalty and
stream agreements for a specific period are converted to gold
equivalent ounces by multiplying the silver ounces by the average
silver price and dividing by the average gold price for the
respective period.
|
|
|
|
(3)
|
The Company's gross
amount received or receivable from the Caserones copper NSR royalty
is converted to gold equivalent ounces by dividing the dividend
received or receivable before taxes for a specific period by the
average gold price, for the respective period.
|
|
|
|
(4)
|
The financial
information disclosed in this press release is preliminary, subject
to final quarter-end closing adjustments, and may change
materially.
|
|
|
|
(5)
|
Nomad has included
certain performance measures in this press release that do not have
any standardized meaning prescribed by International Financial
Reporting Standards ("IFRS") including revenues attributable to
Nomad, cash operating margin attributable to Nomad and cash costs
of sales.
|
|
|
|
These non-IFRS measures
do not have any standardized meaning prescribed by IFRS, and other
companies may calculate these measures differently. The
presentation of these non-IFRS 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.
|
|
|
|
Cash operating margin
attributable to Nomad is calculated by subtracting the cash costs
of sales from the revenue attributable to Nomad defined as
the total revenue adjusted to remove revenue attributable to
non-controlling shareholders. Cash costs of sales are calculated by
subtracting depletion expense from the total costs of sales. The
Company presents cash operating margin attributable to Nomad as
management and certain investors use this information to evaluate
the Company's performance in comparison to other streaming and
royalty companies who present results on a similar basis as well as
to evaluate the Company's ability to generate cash flow.
|
BLYVOOR RAMPING UP
Significant improvements were noted
at the Blyvoor Gold Mine during the first quarter of 2022,
with the mining rate and practices improving considerably over the
last few months. During the month of March
2022, the Blyvoor Gold Mine averaged a daily ore mining rate
in excess of 500 tonnes per day for the first time for a record
production of approximately 2,000 ounces. Mill availability
improved greatly, reaching 94.7% availability for the month of
March 2022. Continuous rates of more
than 500 tonnes per day were achieved with mill recoveries also
steadily improving. Since the quarter end, the Blyvoor Gold Mine
has produced approximately 1,000 ounces of gold during the first 10
days of April.
PLATREEF ACCELERATES DEVELOPMENT
On February 28, 2022, Ivanhoe Mines Ltd. ("Ivanhoe")
announced by way of a press release a new feasibility study (the
"Feasibility Study") confirming Platreef's potential to be one of
the industry's largest and lowest-cost primary platinum-group
metals ("PGM") producers. The Feasibility Study is based on a
steady state production rate of 5.2 million tonnes per annum
("Mtpa"), as well as an accelerated ramp up to steady state through
the earlier development of Shaft #2. The Feasibility Study is based
on the detailed design and engineering scenario first presented in
the preliminary economic assessment announced in November 2020 (the "2020 PEA"), confirming the
viability of a new phased development pathway to fast-track
Platreef into production by Q3 2024. The Feasibility Study
envisions Shaft #2 being equipped for hoisting during 2027, an
acceleration of approximately 18 months compared to the 2020 PEA,
thus coming online just over three years from first production of
Phase 1. The Feasibility Study reflects the initial two phases of
development for the Platreef Mine. Previous studies have
demonstrated the resource base for future expansions up to 12 Mtpa
(Source: Ivanhoe's press release dated July 31, 2017), which would position Platreef
among the largest PGM producing mines in the world.
GREENSTONE CONSTRUCTION ADVANCING
The construction of
the Greenstone Mine continues to advance on schedule with the
recent completion of the reagent storage facility which will be
used for material storage until the plant commissioning and the
plant fuel station which will provide additional support for major
construction activities within the process plant area. Activities
in the first half of 2022 are expected to focus on preparing the
area where the mine mobile equipment will be assembled and
commissioned, completing construction of the process plant and the
main access road as a primary access for the construction team and
the contractors to the plant site and installing the administration
building module. The work on the truck shop is well underway with
completion expected at the end of 2022. Building foundation
concrete is advancing for the west end mill building, power plant,
primary and secondary crushers, east and mill building and the high
pressure grinding rolls, with the goal to have the buildings closed
in for mechanical, piping and electrical installations next winter.
The tailings management facility work is focused on construction of
the dam foundation, which includes stripping organics to competent
ground, the construction of the sand blanket, various water
retention ponds and ditches to manage water. (Source: Equinox
Greenstone Gold Mines' Greenstone Mine Newsletter, Issue 29,
March 2022)
ROBERTSON SUPPORTING CORTEZ GROWTH
On
February 16, 2022, Barrick
Gold ("Barrick") reported that at
Cortez, total mineral resource growth was principally driven
by the Robertson open pit. A portion of inferred resources were
upgraded to the indicated category at Robertson which, together
with year-over-year total mineral resource growth, supports
the Barrick plan for the deposit to contribute
meaningfully to Cortez's production profile starting
in 2025. (Source: Barrick's Management's Discussion and
Analysis for the year ended December 31,
2021)
As per the technical report dated March
18, 2022 and published by Nevada
Gold Mines ("NGM"), NGM has budgeted $16.8 million to the Robertson gold project for a
pre-feasibility study, geotechnical drilling and environmental
permitting. On completion of this work, there is potential to
include Robertson in Barrick's current life-of-mine plan. Robertson
is proposed to be in alignment with Cortez open pit operations
using conventional truck and shovels with conventional drill and
blast techniques followed by load and haul. Material will be
drilled and blasted on 12 metres and mined on 12 metres benches.
All mineralization is anticipated to be oxide, and is currently
planned to be processed at the Pipeline Mill or on a future leach
pad that will be constructed at the Robertson gold project. Mineral
Resources are currently estimated for the Robertson gold project
and conversion of some or all of these Mineral Resources to Mineral
Reserves and incorporation into mine planning represent project
upside.
TROILUS ADVANCES TOWARDS CARBON NEUTRAL FUTURE
Troilus Gold
Corp. ("Troilus") reported excellent metallurgical recovery results
and received strong final results from the J Zone composite, where
Knelson gravity separation and column flotation tests achieved
gold, copper and silver recoveries of 92.9%, 90.4% and 88.8%,
respectively. The results of the test program will be used to
support the upcoming pre-feasibility study, as well as future
economic studies. Troilus also engaged Tugliq Energy Corp. to
conduct an inventory of Troilus' historical and current greenhouse
gas emissions and develop a roadmap towards a future carbon neutral
mining operation. (Source: Troilus' Management's Discussion and
Analysis for the three and six months ended January 31, 2022)
BLACKWATER EXPECTS CONSTRUCTION ACTIVITIES TO COMMENCE IN THE
FALL
On March 30, 2022,
Artemis Gold Inc. ("Artemis") provided a project update on the
Blackwater project. Early works construction at the Blackwater
project remains targeted to commence in Q2 2022 to prepare the site
in order to accommodate the commencement of major works
construction activities. Artemis expects to award the Engineering
Procurement and Construction contract for the construction of the
processing facility and associated infrastructure by the end of
April 2022. Artemis is now targeting
receipt of the BC Mines Act Permit in Fall 2022 with major
construction activities to commence shortly thereafter. Artemis'
project schedule maintains an estimated first gold pour date in the
first half of 2024. (Source: Artemis' Management Discussion and
Analysis for the year ended December 31,
2021)
RDM TO SEE STRONG GROWTH
Equinox Gold Corp.
("Equinox") reported strong growth at RDM with production expected
to increase almost 30% compared to 2021 as the result of
modifications to the pit design based on a new geotechnical model.
Production for 2022 is estimated at 70,000 to 80,000 ounces of
gold. Non-sustaining growth capital of $18
million relates primarily to capitalized stripping for a
pushback of the open pit to provide better access to the ore body.
In addition, Equinox allocated $3
million for exploration to undertake the first exploration
campaign at RDM in several years, with a focus on potential
extensions along strike and down dip. (Source: Equinox's
Management Discussion and Analysis for the three months and year
ended December 31, 2021)
BONIKRO LIFE EXTENSION POTENTIAL
At the Bonikro Gold
Mine, the Bonikro-PB5 development is underway with full mining
rates expected to be reached during the second quarter of 2022.
From the latest drill results and initial resource estimate,
Dougbafla is also showing strong potential resource growth hinting
to a mine life extension beyond the mining at the Bonikro and Hire
pits. Additionally, work to expand the pit shells at the Bonikro
and Hire pits is ongoing.
NOTICE OF Q1 2022 RESULTS RELEASE
The Company expects to release its results for the first quarter
of 2022 on May 5, 2022, after market
close.
QUALIFIED PERSON
The technical and scientific information contained in this news
release relating to properties and operations on the properties on
which the Company holds royalty, stream or other interests has been
reviewed and approved in accordance with National Instrument 43-101
– Standards of Disclosure for Mineral Projects ("NI 43-101")
by Vincent Cardin-Tremblay, P. Geo.,
Vice President, Geology of Nomad, a "qualified person" as defined
in NI 43-101.
ABOUT NOMAD
Nomad Royalty Company Ltd. is a gold & silver royalty company
that purchases rights to a percentage of the gold or silver
produced from a mine, for the life of the mine. Nomad owns a
portfolio of 22 royalty, stream and other interests, of which 8 are
on currently producing mines. Nomad plans to grow and diversify its
low-cost production profile through the acquisition of additional
producing and near-term producing gold & silver streams and
royalties. For more information please visit:
www.nomadroyalty.com.
Nomad Royalty Company Ltd.
500-1275 ave. des Canadiens-de-Montréal
Montreal, Québec H3B
0G4
nomadroyalty.com
FORWARD-LOOKING STATEMENTS
This press release contains
"forward-looking information" and "forward-looking statements"
within the meaning of applicable Canadian securities laws and the
United States Private Securities Litigation Reform Act of 1995,
respectively, which may include, but are not limited to,
management's expectations regarding Nomad's growth, statements with
respect to future events or future performance, including: (i) the
timing for the completion of certain milestones on the Platreef
project, including the timing to reach initial production, and the
anticipated accelerated schedule for hoisting, as well as the
future expansions up to 12 Mtpa; (ii) the progress on the
construction of the Greenstone Mine, including the timing to
complete the construction of certain infrastructures; (iii) the
completion of a pre-feasibility study and results of any
geotechnical drilling on the Robertson gold project, the
contribution of the Robertson gold project to the Cortez's
production profile and timing to achieve it, its potential
inclusion in Barrick's life-of-mine plan and the potential upside
and timing from the conversion of mineral resources to mineral
reserves at the Robertson gold project; (iv) the advancement at the
Troilus gold project; the development of the Blackwater gold
project, including the timing for milestones related to work
construction and initial production; (v) the expected increase in
annual production as well as the results of the exploration
campaign at the RDM Mine; and (vi) the timing to reach full mining
rates at the Bonikro Gold Mine as well as the possible mine life
extension beyond the mining at the Bonikro and Hire pits. All
statements in this release, other than statements of historical
fact, that address events or developments that Nomad expects to
occur, are forward looking statements. Forward looking statements
are statements that are not historical facts and are generally, but
not always, identified by the words "expects", "plans",
"anticipates", "believes", "intends", "estimates", "projects",
"potential", "scheduled" and similar expressions, or that events or
conditions "will", "would", "may", "could" or "should" occur.
Although Nomad believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results may differ materially from those in forward looking
statements. 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 Nomad will purchase gold, silver 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, labour disputes or
other unanticipated difficulties or interruptions in operations;
problems inherent to the marketability of gold, silver, copper 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
Nomad; changes in accounting policies, impact of inflation, global
liquidity and credit availability, stock market volatility;
regulatory restrictions; liability, competition, loss of key
employees, and other related risks and uncertainties, as well as
those risk factors discussed or referred to in the Company's Annual
Information Form for the year ended December
31, 2021 filed with the securities regulatory authorities in
all provinces of Canada and
available on the Company's profile on SEDAR at www.sedar.com and
the Annual Report on Form 40-F for the year ended December 31, 2021 filed with the United States
Securities and Exchange Commission available under the Company's
profile on EDGAR at www.sec.gov. Nomad cautions that the foregoing
list of important factors is not exhaustive. Investors and others
who base themselves on the forward looking statements contained
herein should carefully consider the above factors as well as the
uncertainties they represent and the risks they entail. Nomad
believes that the expectations reflected in those forward-looking
statements are reasonable, but no assurance can be given that these
expectations will prove to be correct and such forward-looking
statements included in this press release should not be unduly
relied upon. These statements speak only as of the date of this
press release. Nomad undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, other than as required by
applicable law.
SOURCE Nomad Royalty Company Ltd.