Metalla Royalty & Streaming Ltd (CVE:MTA) reiterated its guidance for revenue of between $9 million and $12 million for the year to 31 May 2019 as it posted Friday its second-quarter numbers.
The total attributable silver production for the year is expected to be between 500,000 and 600,000 ounces, said the Vancouver-based firm. The company's aim is to increase its share value through a diversified portfolio of royalties and streams with attractive returns.
"In the second quarter Metalla has continued to execute on its strategy of acquiring royalties on properties with world-class operators," Brett Heath, the president and CEO of Metalla, told investors. "We are pleased to have completed the acquisition of a 2-per-cent net smelter return royalty on Agnico Eagle's Santa Gertrudis mine along with a 1.5-per-cent NSR royalty on Pan American Silver's COSE mine, which complements our portfolio of high-quality assets with strong counterparties."
In the quarter to November 30, the firm shipped and provisionally invoiced 81,808 (2017 - 158,865) attributable silver ounces at an average realized price of US$15.06, compared to US$17.12 in the same period of 2017 and an average cash cost of US$5.90, versus US$7.32 per ounce in 2017.
The net loss for the period was US$496,948 (2017 - US$440,105), and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $609,163 (2017- $1,477,222).
Overall, the company said the net loss for the current quarter was higher than for the period of 2017 mainly due to shipment interruption at the Endeavor Mine in New South Wales, Australia, caused by the smelter, which negatively affected payments received from the Endeavor Silver Stream interest.
Metalla noted that as of today, there were 57,814 attributable ounces of silver to be delivered and sold by CBH - the operator since 2003.
Metalla has the right to buy 100% of the silver production and up to 20 million ounces (7.1 million ounces have been delivered as of November 2018) from the mine at an operating cost contribution of US$1 per ounce of payable silver, indexed annually for inflation, and a further increment of 50% of the amount by which silver price exceeds US$7 per ounce.
It also has a 2% NSR royalty payable by Pan American Silver Corp. on minerals mined from concessions, which form part of Joaquin project located in central Santa Cruz province, Argentina and a 1.5% royalty payable by Pan American on minerals mined from the concessions which form the Cap-Oeste Sur East (COSE) property project located in central Santa Cruz province, Argentina.
The company also has the Garrison project NSR (net smelter royalty); the NLGM silver stream, the Hoyle Pond extension NSR, and the 2% NSR on Agnico Eagle's Santa Gertrudis mine.
Metalla shares eased 3.53% in Toronto to stand at $0.82.