Metalla Royalty & Streaming Ltd (TSX-V:MTA) has reported results for the second quarter to end-June 2021, noting that it was one of the most active period for acquisitions in the junior firm's history.
In the first six months of 2021 and subsequently, Metalla said it closed six new acquisitions, bringing its total portfolio to 69 precious metal assets..
This included its June purchase of an existing 1.35% net smelter return (NSR) royalty on part of the Côté gold project in Ontario, which is expected to be one of Canada's largest producing mines.
READ: Metalla Royalty & Streaming buys royalty on part of Côté project, set to become one of Canada's largest gold mines
"We look forward to more accretive transactions in the second half of the year, building upon what has been one of the most active years for Metalla on the acquisition front," said Brett Heath, the CEO of Metalla in a statement.
In the three months to June 30, 2021, Metalla generated an operating cash margin of US$1,770 per attributable gold-equivalent ounce (GEO) from its Wharf, Joaquin, and COSE royalties, along with the New Luika Gold Mine stream held by Silverback Ltd, and the Higginsville derivative royalty asset in Australia, and other interests.
Revenue from the company's assets for the quarter was US$0.7 million, while the net loss was US$2.7 million, and adjusted loss before interest, tax, depreciation and amortization (EBITDA) was US$0.5 million.
The second quarter also saw the group convert C$5 million outstanding on its Beedie Capital amended loan facility at C$9.90 per share for a total of 505,050 common shares and completed a draw down for a further C$5 million from the facility with a conversion price of C$14.30 per share.
Metalla currently has a total of C$5 million outstanding under the loan, bearing interest at a rate of 8% per annum with a remaining C$15 million available on standby.
The Q2 statement also provided an update on Metalla's assets, including for its Wharf royalty, where last month, Coeur Mining (NYSE:CDE) reported that Wharf produced 24,126 ounces of gold at 0.99 grams per ton (g/t) during the second quarter of 2021, in line with guidance of between 85,000 and 95,000 ounces for the full year.
At the Santa Gertrudis asset, where Metalla holds a 2% net smelter return (NSR) subject to Agnico's right to buy back 1% for US$7.5 million, last month, major Agnico Eagle announced drilling in the first half of this year has totaled 63 holes (27,693 meters) focused on advancing Amelia, Espiritu Santo, Santa Teresa, El Toro and other zones.
For the rest of 2021, Agnico plans additional drilling and metallurgical testing to continue expanding the resources and to generate and test new targets.
In addition, Shanta Gold, on July 19, 2021, announced a new mine plan for the New Luika Gold Mine (NLGM) where average annual production is expected to be 73,600 ounces of gold with the potential to extend mine life beyond 2026 through conversion of significant known resources and the expanded 2,450 tonnes per day (tpd) mill throughput. Metalla holds aNew Luika silver stream royalty,
Shanta expects total gold production from NLGM for the 5-year plan to total 368,000 ounces from both open pit and underground mine sources from the mining license.
Metalla's strategy is to acquire third-party royalties on assets of the major miners with strong operational experience and balance sheets and in just a few years, it has acquired 69 royalties/streams.
Contact the author at giles@proactiveinvestors.com