Metalla Royalty & Streaming Ltd (CVE:MTA) (OTCMKTS:MTAFF) expects 2019 to be 'pivotal' as it continues to grow its portfolio, the company told investors, as it posted third-quarter results.
Metalla holds a total of 43 royalties and streams in global mining projects and the latest three month period saw it acquire a 1% NSR (net smelter royalty) from Atlantic Gold Corp (CVE:AGB) in Nova Scotia, Canada.
For the fiscal year to May 31, 2019, management is forecasting total attributable silver production of between 400,000 and 500,000 ounces, while revenue is expected to be between $7 million and $9 million. Notably, Metalla said that around 95% plus of its of total revenue is expected to come from silver.
In the three months to February 28, Metalla acquired a 1.5% NSR royalty on the Cap-Oeste Sur East (COSE) gold and silver property owned by Pan American Silver Corp (NASDAQ:PAAS).
The company recorded cash flow from operating activities of $282,728 in the period, compared to $619,402 in the same periods of 2018, offset by over $5.46 million, which was spent on acquisitions of NSR royalty interests, resulting in positive working capital of $730,568.
The firm shipped and has provisionally invoiced 76,775 (2018: 158,865) of attributable silver ounces (oz) at an average realized price of US$15.23 per ounce (2018: US$17.12) and average cash cost of US$6.23 (2018: US$7.32) per ounce.
Income from operations
The income from operations came in at $484,179 (2018: $286,446), while the net loss in the third quarter was $446,105 (2018: $440,105), it revealed.
Metalla said it put the higher net loss for the quarter, mainly due to income tax provisions and share-based payments, which was partially offset by increased gross profit.
"In the third quarter Metalla completed an over-subscribed private placement for C$6.8 million and acquired two additional near-term producing royalties with counterparties that include Pan American Silver and Atlantic Gold," said Brett Heath, president and CEO of Metalla in Tuesday's statement. "We continue to expect 2019 to be a pivotal year for Metalla as we continue to scale our business and grow our royalty portfolio into what we believe will be one of the most exciting growth stories for this next commodity cycle."
Shares ticked up 1.86% to $1.18 in Toronto.
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