Maverix Metals Inc (NYSEAMERICAN:MMX) (TSE:MMX) (FRA:7781) posted first-quarter results, which showed an uplift in net income and revenue, while the royalty company announced a 25% increase to the dividend.
Net income for the three months to end-March was US$14.7 million, up from US$860,000 in Q1 2020, on total revenue of US$13 million, up 41% from US$9.2 million a year earlier.
READ: Maverix Metals posts 4Q and FY2021 results showing record revenue and strong profits from its royalty assets
Gold equivalent ounces sold in the three months was 7,302, up from 5,871 in Q1 2020 and the cash flow from operating activities was US$13.4 million (Q1 2020: US$4.8 million).
The board has approved a quarterly dividend of $0.0125 per share to be paid on June 15, 2021, This is a 25% increase from the previous dividend of $0.01 per share, noted Maverix.
Dan O'Flaherty, Maverix CEO told investors that the first quarter had marked another milestone for Maverix as it was included in March in the VanEck Vectors Junior Gold Miners ETF (GDXJ).
"We are well on track to achieve our previously announced guidance of 27,000 to 30,0001 GEOs for 2021 at approximately a 90% cash margin, with approximately 99% of expected revenue derived from gold and silver," he said.
"Maverix is also pleased to have Agnico as an operating partner, as it completed the acquisition of the Hope Bay mine, in Nunavut. We look forward to Agnico applying its operating expertise to maximize the long-term value of the mine and the highly prospective surrounding land package."
The company is a gold-focused royalty and streaming company with a global portfolio of over 100 assets.
At Hope Bay in Nunavut, where it holds a 1% net smelter return (NSR) royalty, Agnico has launched a major delineation, conversion and exploration drilling program, using three underground rigs and three surface rigs. Agnico expects to spend $16.2 million for 69,600 metres of diamond drilling this year.
During the quarter, Maverix also increased its silver stream on the El Mochito mine in Honduras to 27.5% from 22.5% as a result of the conversion of a convertible debenture that was issued to Maverix last year for consenting to the acquisition of the El Mochito mine by Kirungu Corporation and a $1 million investment.
Contact the author at giles@proactiveinvestors.com