Metalla Royalty and Streaming Ltd (CVE:MTA) (NYSEAMERICAN:MTA) CEO Brett Heath assured shareholders that the company was well-positioned to navigate the uncertainty caused by the coronavirus pandemic.
The CEO’s comments came as the Vancouver-based streaming firm posted its third-quarter financial results highlighting a working capital balance of nearly C$6.7 million.
"During these unparalleled times, we are monitoring our partners' operations closely,” Heath told shareholders in a statement.
“With the majority of our royalties on projects in development being advanced by counterparties with strong balance sheets, we believe Metalla is well-positioned with a NAV heavy portfolio and strategy that allows for growth in volatile capital markets.”
During the three-month period ended February 29, the company acquired a 2% NSR royalty on future gold production on the NuevaUnión project in Chile, one of the largest undeveloped copper-gold-molybdenum projects in the world.
The project, comprised of the La Fortuna deposit and surrounding properties, is a joint venture between Newmont Corporation and Teck Resources.
Metalla also listed its shares on the NYSE American exchange to widen its US investor base.
Third-quarter revenue came in at nearly C$1.3 million compared to C$1.4 million during the year-ago quarter. Net loss came in at C$2.1 million.
In a statement, the firm updated its shareholders on the impact of the widespread coronavirus outbreak on the company’s operations.
“Since March 2020, several measures have been implemented in Canada, Australia, Argentina, Mexico, and in other jurisdictions where we hold royalties and streams in response to the increased impact from the coronavirus,” it told shareholders.
“These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused material disruption to business globally resulting in an economic slowdown.”
Metalla said there were “significant uncertainties” with respect to the pandemic’s impact on its business.
“While the impact of COVID-19 is expected to be temporary, the current circumstances are dynamic and the impacts of COVID-19 on our business operations cannot be reasonably estimated at this time, such as the duration and impact on future production for our partner operators at their respective mining operations.”
However, in March, Metalla assured shareholders that it will continue dividend payments for April and May.
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