Stifel GMP analysts published a research update on Maverix Metals Inc (TSX:MMX), calling the gold-focused royalty and streaming company's third-quarter financial results “good” as its portfolio continues to perform well, with gold-equivalent ounces (GEOs) growing year over year since inception.
“We look forward to a stronger Q4 with the increased contribution from the Omolon royalty hitting the revenue line,” the analysts said.
The Stifel GMP analysts noted that the Beta Hunt mine in Western Australia, in which Maverix has a 3.25% gross revenue royalty (GRR) plus 1.5% net smelter return (NSR) royalty on the gold production and a 1.5% NSR royalty on nickel output, “performed better than our estimates.”
READ: Maverix Metals lifts gold equivalent ounce sold guidance for full year as it reports on 'active' third quarter
They added that the company announced two cash-flow accretive deals in the last months and its liquidity remains strong for additional acquisitions.
“We currently estimate 31.3k GEOs for 2021, slightly above new guidance and representing a 3-year CAGR (compound annual growth rate) of 14% to 2021,” the analysts wrote.
The Stifel GMP analysts maintained their “Buy” rating and C$8.75 target price on shares of Maverix Metals.
Contact Sean at sean@proactiveinvestors.com