The Vancouver-based royalty company said that the quarterly figure was a 25% increase from the same amount in 4Q 2019. More significantly, the company said it beat its 2020 guidance with a total of 28,916 attributable gold equivalent ounces sold throughout the year – a 20% increase from 2019 levels.
The firm has set a 2021 guidance of between 27,000 and 30,000 attributable gold equivalent ounces at around a 90% cash margin. It expects that around 99% of its revenue will be derived from gold and silver, with the majority of its gold equivalent ounces to come in the second half of the year.
During the three-month period to end December 31, 2020, Maverix acquired a portfolio of 10 gold royalties from Newmont Corporation, including a 2% net smelter return royalty on the Camino Rojo project, where the first gold pour is expected in 4Q 2021.
CEO Dan O’Flaherty hailed the company’s year of “tremendous growth”.
"Maverix had another year of tremendous growth in 2020, achieving a new company record for attributable gold equivalent ounces, exceeding our 2020 guidance, and expanding our royalty portfolio with the acquisition of 10 gold royalties,” the CEO told investors in a statement.
“We look forward to building off this performance with further growth in 2021, driven in large part by the push towards development and production at a number of the underlying precious metals assets where we hold royalties."
Maverix also gave shareholders an update on its Hope Bay and Moss royalties, where it holds a 1% NSR royalty and a 100% silver stream, respectively.
Earlier this month, Agnico Eagle Mines Limited became the owner of Hope Bay following its acquisition of TMAC Resources Inc and announced plans to continue mining the Doris deposit. The miner expects quarterly production of between 18,000 to 20,000 ounces of gold, with a significant exploration program planned for this year.
Maverix and Agnico completed the previously announced buyback of 1.5% of the NSR royalty that Maverix owns on the Hope Bay mine. It received a cash payment of $50 million from Agnico on February 12. Maverix retains a 1% net smelter return (NSR) royalty on the Hope Bay mine, which is not subject to any further reductions.
At Moss, Maverix said that Northern Vertex Mining Corp completed the previously announced business combination with Eclipse Gold Mining Corp. Under the terms of the deal, Maverix sold 19,511,041 shares of Northern Vertex and received net proceeds of approximately C$9.8 million, realizing a gain on the sale of nearly C$2 million.
Maverix said it will use part of the proceeds received from the royalty buyback transaction with Agnico to repay the outstanding amount on its revolving credit facility. Once repayment is finalized, Maverix will be debt-free and have access to the full US$120 million available under its credit facility, while holding cash and short-term investments of approximately US$50 million.
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