Nomad Royalty Company Ltd (TSE:NSR) (OTCQX:NSRXF) (FRA:IRLB) said it expects to generate strong free cash flow in 2021 from organic portfolio growth as it reported a big jump in net income and revenue for 2020.
For the 12 months to December 30, 2020, the royalty group posted net income of US$20.1 million, up from US$2 million in 2019. Revenue came in at US$26.8 million for the year, up from US$17.4 million in 2019.
The group's cash operating margin was 90% in the year, down from 96% in 2019, while gold equivalent ounces sold (GEOs) was reported at 14,870, up from 12,233 in 2019.
Nomad CEO Vincent Metcalfe said in the statement that last year, Nomad had been "successful in launching and establishing a strong platform, while executing on the business plan of becoming a significant player in the sector".
"For 2021, Nomad expects organic portfolio growth, which will allow it to continue to generate strong free cash flow while reinvesting in new opportunities that will support further growth and returns to shareholders," he added.
Nomad holds a portfolio of 14 royalty, stream, and gold loan assets, of which six are on currently producing mines.
The group also reported a strong fourth quarter, which saw its net income rise to US$11.3 million, up from US$1.5 million in the fourth quarter, 2019. It ended the year with US$22.5 million in cash.
Among Nomad's operational highlights last year was that it completed the acquisition of Coral Gold Resources Ltd, the owner of a sliding-scale 1% to 2.25% net smelter royalty (NSR) royalty on Nevada Gold Mines' Robertson project in Nevada, US for cash of US$1.9 million and issuing around 39.9 million Nomad shares.
It also completed the acquisition of a 0.21% NSR royalty on the Blackwater Gold project located in British Columbia, Canada for a total of $1.8 million cash and 1,583,710 company shares.
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