All amounts are in U.S. dollars unless otherwise
indicated.
VANCOUVER, BC, Feb. 16, 2021 Maverix Metals Inc. (the
"Company" or "Maverix") (NYSE American: MMX) (TSX: MMX) is pleased
to announce record attributable gold equivalent ounces for the
fourth quarter and full year ended December
31, 2020 and provide guidance for 2021.
Dan O'Flaherty, CEO of Maverix,
commented "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. 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."
Fourth Quarter and Full Year 2020 Highlights
- Record fourth quarter attributable gold equivalent ounces sold
of 8,8361, an increase of 25% from Q4 2019;
- Record annual total attributable gold equivalent ounces sold of
28,9161, exceeding guidance and an increase of 20% from
2019; and
- Acquired a portfolio of 10 gold royalties from Newmont
Corporation, including a 2.0% net smelter return ("NSR") royalty on
the Camino Rojo project currently in construction, with the first
gold pour expected in Q4 20212.
2021 Outlook
In 2021, Maverix expects 27,000 to 30,000 attributable gold
equivalent ounces1 at approximately a 90% cash margin
with approximately 99% of expected revenue derived from gold and
silver. Similar to 2020, the Company expects gold equivalent ounces
to be weighted towards the second half of the year.
Asset Portfolio Updates
Hope Bay (1% NSR)
On February 2, 2021, Agnico Eagle
Mines Limited ("Agnico") completed the acquisition of TMAC
Resources Inc. and is now the owner of the Hope Bay mine in
Nunavut, Canada. On February 11, 2021, Agnico announced that it plans
to continue mining at the Doris deposit in 2021 with quarterly
production expected to be approximately 18,000 to 20,000 ounces of
gold. Agnico plans to ramp up a property wide exploration program
in 2021 with 39,800 metres of drilling planned for exploration
targets around the Doris, Madrid
and Boston deposits and other
targets along the 80 kilometre long greenstone belt. Agnico
believes that Hope Bay has the potential to be a 250,000 to 300,000
ounce per year operation and will continue to evaluate optimal
mining and milling strategies for future production.
Maverix and Agnico have completed the previously announced buy
back of 1.5% of the net smelter return royalty that Maverix owns on
the Hope Bay mine. Maverix received a cash payment of $50 million from Agnico on February 12, 2021. Maverix retains a 1% net
smelter return royalty on the Hope Bay mine which is not subject to
any further reductions.
For more information, please refer to agnicoeagle.com and see
the news release dated February 11,
2021.
Moss (100% Silver Stream)
On February 12, 2021, Northern
Vertex Mining Corp. ("Northern Vertex") completed the previously
announced business combination with Eclipse Gold Mining Corp.
Pursuant to the terms of the business combination, Maverix sold
19,511,041 common shares of Northern Vertex and received net
proceeds of approximately C$9.8
million, realizing a gain on the sale of approximately
C$2.0 million.
Credit Facility Repayment
Maverix will use part of the proceeds received from the royalty
buy back transaction with Agnico to repay the outstanding amount on
the Company's revolving credit facility. Post repayment of the
credit facility, Maverix will be debt free and have access to the
full $120 million available under its
credit facility, while holding cash and short-term investments of
approximately $50 million.
1 Maverix has included
certain performance measures in this news release that do not have
any standardized meaning prescribed by International Financial
Reporting Standards ("IFRS"). The Company's royalty revenue and
silver sales are converted to an Attributable Gold Equivalent ounce
basis by dividing the royalty revenue and silver sales for a period
by the average gold price based on the LBMA Gold Price PM Fix per
ounce for the same respective period. These Attributable Gold
Equivalent ounces when combined with the gold ounces sold from the
Company's gold streams (individually and collectively referred to
as "Attributable Gold Equivalent") equal total Attributable Gold
Equivalent ounces sold and may be subject to change. The
presentation of these non-IFRS measures are intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. Other companies may calculate these non-IFRS measures
differently. The 2021 forecast herein assumes a gold price of
$1,700 per ounce and a silver price of $21 per ounce. The forecast
was derived using information that is available in the public
domain as at the date hereof, which included guidance and estimates
prepared and issued by management of the operators of the mining
operations in which Maverix holds an interest. The forecast is
sensitive to the performance and operating status of the underlying
mines. None of the information has been independently verified by
Maverix and may be subject to uncertainty. There can be no
assurance that such information is complete or accurate. Maverix's
business, operations, financial condition and financial outlook
could be materially adversely affected by the continued impact of
the COVID-19 global health pandemic. At this time, Maverix cannot
reasonably estimate the duration of any potential business
disruptions, impact to underlying operations that Maverix holds an
interest in or any related financial impact that is related to or
caused by COVID-19.
|
2 Transfer is subject to the
authorization of the Federal Economic Competition Commission in
Mexico (Comisión Federal de Competencia
Económica).
|
Qualified Person
Brendan Pidcock, P.Eng., is Vice
President Technical Services for Maverix, and a qualified person
under National Instrument 43-101 – Standards of Disclosure for
Mineral Projects, has reviewed and approved the scientific and
technical disclosure contained in this news release.
About Maverix
Maverix is a gold-focused royalty and streaming company with a
globally diversified portfolio of over 100 assets. Maverix's
mission is to increase per share value by acquiring precious metals
royalties and streams. Its shares trade on both the NYSE American
and the TSX under the symbol "MMX".
Cautionary statements to U.S. investors
Information contained or referenced in this press release or in
the documents referenced herein concerning the properties,
technical information and operations of Maverix has been prepared
in accordance with requirements and standards under Canadian
securities laws, which differ from the requirements of US
securities laws. The terms "mineral resource" and "inferred mineral
resource" used in this press release or in the documents
incorporated by reference herein are mining terms as defined in
accordance with NI 43-101 under guidelines set out in the
Definition Standards for Mineral Resources and Mineral Reserves
adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum Council. While the terms "mineral resource", and
"inferred mineral resource" are recognized and required by Canadian
securities laws, they are not recognized by SEC Industry Guide 7
and normally are not permitted to be used in reports filed with the
SEC. The SEC has adopted amendments to its disclosure rules
to modernize the mineral property disclosure requirements for
issuers whose securities are registered with the SEC under the U.S.
Securities Exchange Act of 1934 (the "SEC Modernization
Rules"). Under the SEC Modernization Rules, the SEC will
permit issuers to disclose estimates of mineral resources if
certain conditions are met. Because the Company is eligible
for the Multijurisdictional Disclosure System adopted by the SEC
and Canadian Securities Administrators, the Company is not required
to present disclosure regarding its mineral properties in
compliance with the SEC Modernization Rules. Accordingly,
certain information contained in this press release concerning
descriptions of mineralization and mineral resources under these
standards may not be comparable to similar information made public
by US companies subject to reporting and disclosure requirements of
the SEC.
Cautionary note regarding forward-looking statements
This release contains certain "forward looking statements" and
certain "forward-looking information" as defined under applicable
Canadian and U.S. securities laws. Forward-looking statements and
information can generally be identified by the use of
forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology. The forward-looking
information contained herein is provided for the purpose of
assisting readers in understanding management's current
expectations and plans relating to the future. Readers are
cautioned that such information may not be appropriate for other
purposes. Forward-looking statements and information include, but
are not limited to Maverix's anticipated outlook for the fiscal
2021 year, repayment of the outstanding amount on Maverix's
revolving credit facility, completion of certain anticipated
milestones, transactions and developments by the operators of
certain underlying projects and mines in respect of Maverix's
royalty and stream portfolio, anticipated future cash flows, future
financial reporting by Maverix, the receipt of payments from
Maverix's mining royalty and streaming portfolio, the requirements
for regulatory approvals and third party consents, and the
completion of mine expansion under construction phases at the mines
or properties that Maverix holds an interests in. Forward-looking
statements and information are based on forecasts of future
results, estimates of amounts not yet determinable and assumptions
that, while believed by management to be reasonable, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. Forward-looking information is
subject to known and unknown risks, uncertainties and other factors
that may cause the actual actions, events or results to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: impact
of general business and economic conditions; the absence of control
over mining operations from which Maverix will purchase gold and
other metals or from which it will receive royalty payments and
risks related to those mining operations, including risks related
to international operations, government and environmental
regulation, delays in mine construction and operations, actual
results of mining and current exploration activities, conclusions
of economic evaluations and changes in project parameters as plans
continue to be refined; accidents, equipment breakdowns, title
matters, labor disputes or other unanticipated difficulties or
interruptions in operations; problems inherent to the marketability
of gold and other metals; the inherent uncertainty of production
and cost estimates and the potential for unexpected costs and
expenses; industry conditions, including fluctuations in the price
of the primary commodities mined at such operations, fluctuations
in foreign exchange rates and fluctuations in interest rates;
government entities interpreting existing tax legislation or
enacting new tax legislation in a way which adversely affects
Maverix; stock market volatility; regulatory restrictions;
liability, competition, the potential impact of epidemics,
pandemics and other public health crises, including the current
outbreak of the novel coronavirus known as COVID-19 on Maverix's
business, operations and financial condition, loss of key
employees, as well as those risk factors discussed in the section
entitled "Risk Factors" in Maverix's annual information form dated
March 23, 2020 available at
www.sedar.com. Maverix has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers are advised not to place undue reliance on forward-looking
statements or information. Maverix undertakes no obligation to
update forward-looking information except as required by applicable
law. Such forward-looking information represents management's best
judgment based on information currently available.
Technical and third-party information
The disclosure herein and relating to properties and operations
on the properties in which Maverix holds royalty, stream or other
interests is based on information publicly disclosed by the owners
or operators of these properties and information/data available in
the public domain as at the date hereof, and none of this
information has been independently verified by Maverix.
Specifically, as a royalty or stream holder, Maverix has limited,
if any, access to properties included in its asset portfolio.
Additionally, Maverix may from time to time receive operating
information from the owners and operators of the properties, which
it is not permitted to disclose to the public. Maverix is dependent
on, (i) the operators of the properties and their qualified persons
to provide information to Maverix, or (ii) on publicly available
information to prepare disclosure pertaining to properties and
operations on the properties on which Maverix holds royalty, stream
or other interests, and generally has limited or no ability to
independently verify such information. Although Maverix does not
have any knowledge that such information may not be accurate, there
can be no assurance that such third-party information is complete
or accurate. Some information publicly reported by operators may
relate to a larger property than the area covered by Maverix's
royalty, stream or other interest. Maverix's royalty, stream or
other interests often cover less than 100% and sometimes only a
portion of the publicly reported mineral reserves, mineral
resources and production of a property.
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SOURCE Maverix Metals Inc.