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Nomad Royalty reports preliminary revenue of US$7.6M in third quarter from gold ounces sold

Nomad has a portfolio of 12 royalty, stream and gold loan assets, of which six are on currently producing mines

Nomad Royalty -
The revenue in the third quarter was as a result of the sale of 3,933 gold equivalent ounces in the quarter, the company said

Nomad Royalty Company Ltd (TSE:NSR) (FRA:IRLB) reported preliminary revenue of US$7.6 million in its third-quarter to September 30. 

Shares in this new royalty and streaming group began trading on the Toronto Stock Exchange in May this year after a reverse takeover, which saw it acquire the royalty portfolio of Yamana Gold and streaming assets from Orion Resource Partners, via two vend-in deals.

READ: Nomad Royalty Company finalizes base shelf prospectus that allows it to raise up to US$300M over 25-month period

Nomad has a portfolio of 12 royalty, stream and gold loan assets, of which six are on currently producing mines.

The revenue in the third quarter was as a result of the sale of 3,933 gold equivalent ounces in the quarter, the company said.

In the year to date, Nomad has seen 13,917 of its attributable gold-equivalent ounces sold.

Gold-equivalent ounces delivered to Nomad in the third quarter came to 3,769, while in the year to date, the figure was 13,021 ounces.

The company noted that due to the Yamana and Orion vend-in transactions, which closed in May this year, it had been entitled to payments made in respect of the acquired assets since January 1 this year.

Separately, The Globe and Mail reported in its October 14 edition that BMO Nesbitt Burns analyst Rene Cartier had started covering Nomad Royalty with a "market perform" rating and a  C$1.70 share target.

Cartier is quoted as saying that "while multiple expansion typically occurs through assets entering production, and through a more de-risked portfolio, in our view, Nomad Royalty is trading in line with peers thereby reflecting these expectations".

Last month, the paper reported that Industrial Alliance Securities analyst Puneet Singh had described Nomad's business model as "high margin, safe and proven at providing returns." He began coverage with a "buy" rating and C$2.30 share target.

In the Globe's Eye On Equities column, it said today that analysts on average target the shares at C$2.25 (current price: C$1.38).

In August this year, Nomad posted impressive inaugural second-quarter results, which showed it gained US$6 million in revenue from its growing portfolio of assets.

For the three months to end June 2020, the firm posted a net income of US$2.3 million and a cash operating margin of US$5.8 million or 96%.

The company aims to grow and diversify its low-cost production profile through acquiring more producing and near-term producing gold and silver streams.

Shares in Toronto ticked up nearly 3.8% on the day to C$1.38 each

----Updates for share price---

Contact the author at giles@proactiveinvestors.com

Quick facts: Nomad Royalty

Price: 1.095 CAD

TSX:NSR
Market: TSX
Market Cap: $618.15 m
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