viewMetalla Royalty & Streaming Ltd

Metalla Royalty & Streaming eyeing cash flow from COSE and Joaquin royalties this quarter

Metalla is focused on acquiring third-party royalties on assets operated by major mining groups

Metalla Royalty and Streaming Ltd -
In its fiscal 2Q, Metalla shipped 103,258 attributable silver ounces at an average realized price of US$17.43

Metalla Royalty & Streaming Ltd (CVE:MTA) (OTCMKTS:MTAFF), the precious metals streaming firm, is eyeing cash flow from two of its Argentinian assets beginning in the first calendar quarter of 2020. 

Reporting results for its fiscal second quarter on Friday to end-November last year, the firm said Pan American Silver (NASDAQ:PAAS) had made 'significant' progress in the period at the COSE and Joaquin mines, where it holds a 1.5% and 2% net smelter royalty respectively. 

"This included the first shipment of development ore to the Manantial Espejo mill," said Brett Heath, CEO of Metalla in a statement on Friday. 

READ: Metalla Royalty & Streaming names Terry Krepiakevich independent board director

Metalla is focused on buying third-party royalties on assets operated by major mining groups and in just a few years, it has assembled 45 royalties/streams over 15 transactions from around the globe and deployed C$70 million of capital on assets.

In the three months to November 30, it recorded revenues from its streams of C$2.14 million, up from C$1.6 million in the same quarter a year ago.

"We are excited about the progress Agnico Eagle has made on Santa Gertrudis and El Realito and expect increases in reserves and resources on the majority of the key royalty assets in our portfolio in the first calendar quarter of 2020," added Heath.

He also cited the successful listing in January on the NYSE American exchange, significantly increasing the group's "market profile, liquidity, access to larger institutional investors, and a more diverse group of retail investors".

In its fiscal 2Q, Metalla shipped 103,258 attributable silver ounces at an average realized price of US$17.43, up from 57,814 ounces in 2018 at US$15.06.

It also had 61,296 attributable silver ounces remaining yet to be sold, compared to 59,515 ounces in May last year.

It recoded fiscal year-to-date cash flow from operating activities, before net change in non-cash working capital items, of C$129,167 (2018: C$1.9 million).

The net loss in the three months came in at around C$1.054 million, versus C$496,948 in 2018.

Progress at El Realito

Metalla noted that Agnico Eagle Mines last October, revealed that recent drilling at the El Realito project (Metalla holds a 2% NSR), which lies adjacent to the operating La India mine in Sonora, Mexico suggested there could be an improved strip ratio and increased mineral resources inside the current life of mine reserve pit design.

Meanwhile, at the Endeavor mine silver stream in Australia, operator CBH Resources (CBH), has completed internal studies and reports that it has outlined a substantial mineralized zone known as the Deep Zinc Lode (DZL), roughly 200 meters below the limits of the current mine infrastructure. The silver stream held by Metalla covers 100% of the silver within the DZL.

Metalla has the right to buy 100% of the silver production up to 20 million ounces from the Endeavor mine for an operating cost contribution of US$1.00 each ounce of payable silver, indexed annually for inflation, plus a further increment of 50% of the silver price in excess of US$7.00 per ounce.

Metalla shares eased 3.71% to C$7.26 each in Toronto.

Contact the author at giles@proactiveinvestors.com

Quick facts: Metalla Royalty & Streaming Ltd

Price: 15.5 CAD

Market: TSX-V
Market Cap: $614.05 m

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