VANCOUVER, Nov. 21, 2018 /CNW/ - Maverix Metals Inc. (the
"Company" or "Maverix") (TSX-V: MMX) is pleased to announce its
operating and financial results for the third quarter ended
September 30, 2018.
For complete details please refer to the Financial Statements
and associated Management Discussion and Analysis for the quarter
ended September 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.
Third Quarter 2018 Highlights
- Record revenue of $9.8
million;
- Operating cash flow of $6.7
million, excluding changes in non-cash working
capital(1);
- Adjusted net income of $1.3
million(1);
- Record attributable gold equivalent ounces sold of 6,195
ounces(1);
- Average cash cost per attributable gold equivalent ounce of
$167 resulting in cash operating
margins of $1,415 per
ounce(1); and
- Acquired a pre-existing 1.5% net smelter return ("NSR") royalty
on Premier Gold's McCoy-Cove project in Nevada that was originally intended to be
included in the royalty portfolio Maverix acquired from Newmont
Mining earlier in the year (2).
Outlook
For the nine months ended September 30,
2018, Maverix has total attributable gold equivalent
production of 15,236 ounces(1). Based on its existing
royalties and streams, the Company is likely to exceed previously
announced guidance of 18,000 to 19,000 ounces.
"Maverix continues to have a strong 2018 with yet another record
quarter for both production and revenue," commented Dan O'Flaherty, President and CEO of Maverix. "A
number of our assets had positive news this quarter, highlighted by
RNC Minerals' discovery at the Beta Hunt mine in Australia".
Royalty Asset Updates
- Beta Hunt: On September 9,
2018, RNC Minerals ("RNC") announced the discovery of the
"Father's Day Vein", a new high-grade discovery area at the Beta
Hunt Mine, from which RNC expects 27,000-30,000 ounces of gold. RNC
had record quarterly gold production of 31,360 mined gold ounces
for the third quarter 2018, a 199% increase from the third quarter
2017 and a 135% increase from the second quarter 2018. Final gold
content estimates for a number of large specimens RNC has recovered
from the Beta Hunt Mine, would rank them among the largest ever
found.
With two drills on site, RNC has begun a gold exploration program
to expand upon the Father's Day Vein discovery. Drilling along
strike from the Father's Day Vein discovery area in the A zone is
already underway, with planned resource definition drilling
targeting the Western Flanks structure poised to begin soon. RNC's
technical team is continuing to work on understanding the sediment
structures in the mine, which have the potential for additional
high grade coarse gold.
For more information refer to www.rncminerals.com and see the news
releases dated November 12, 2018,
October 24, 2018, and September 9, 2018.
- Hope Bay: TMAC Resources Inc. ("TMAC") reported record
gold production of 33,100 ounces at Hope Bay for the third quarter,
as the processing plant continues to exceed expectations for the
pace of ramp up, having averaged 1,900 tonnes per day processed in
October with a peak production day of 2,333 tonnes per day.
Permitting for Hope Bay's Madrid
and Boston zones is ahead of
schedule as TMAC received the Project Certificate from the Nunavut
Impact Review Board on November 12,
2018 and is expecting to receive the Type A Water Licenses
in the first quarter of 2019.
On November 12, 2018, TMAC provided
an update on its 2018 exploration activity at both the Doris mine
and the Madrid North deposit. Both drilling programs have continued
to return high-grade gold assays and define high margin ore.
Drilling at Doris has continued to upgrade confidence in and expand
on the high grade BTD Extension zone, which remains open to the
north. The 2018 drilling at Madrid North has focused on the core of
the Naartok West and Naartok East zones, and has confirmed the
continuity of both grade and width of mineralization, near surface,
which has potential to provide significant high-grade ore early in
the Madrid mine plan.
For more information refer to www.tmacresources.com and see the
news releases dated November 12,
2018, November 8, 2018 and
October 3, 2018.
- Silvertip: Coeur Mining, Inc. ("Coeur") announced that
the Silvertip mine achieved commercial production September 1, 2018. Processing rates continue to
improve as the Company works through its ramp up of the mine and
the mill. Coeur remains on track to publish an initial NI 43-101
Technical Report in the fourth quarter and expects around year-end
to receive approval of the permit amendment application to operate
at 1,000 tonnes per day.
For more information refer to www.coeur.com and see the news
release dated October 31, 2018.
- Mt. Carlton: On October 11,
2018, Evolution Mining Limited ("Evolution") announced that
board approval had been received to progress the underground
development, Stage 4 pit cut-back and relevant plant modifications
at Mt. Carlton, which Evolution is confident will expand the
initial underground reserves. Once the underground development is
in place, additional drilling will commence to follow up on a
number of promising drill intersections that were not originally
included in the underground reserves or resources.
Regulatory approval is required for commencement of the underground
development. Evolution intends to lodge submissions to the
Department of Environment and Science by the end of November. First
ore from the underground is planned to be delivered in 2021.
For more information refer to www.evolutionmining.com.au and see
the news release dated October 11,
2018.
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(1)
Maverix has included certain performance measures in this news
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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(2) For
more information please see Maverix Metals news release dated
August 23, 2018.
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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.
Technical Information
Doug Ward, B.Sc., Mining
Engineering, MMSA, Vice President Technical Services for Maverix
and a qualified person as defined under NI 43-101 has reviewed and
approved the written scientific and technical disclosure contained
in this document.
SOURCE Maverix Metals Inc.
