Nova Royalty Corp posted revenue of C$181,900 from its interests in the third quarter to end-September 2021, mainly attributable to the Aranzazu copper-gold-silver mine in Mexico - the firm's first cash flowing royalty.
The company increased its portfolio of royalties in the three-month period to 20 via the acquisition of a 1% net smelter royalty (NSR) on the Aranzazu mine.
Nova also ended the quarter with C$2.2 million in cash, up from C$2.3 million as of September 30, 2020.
"In the third quarter, Nova completed the acquisition of its first cash flowing royalty on the Aranzazu copper-gold-silver mine, owned by Aura Minerals Inc," said Alex Tsukernik, CEO of Nova in a statement.
"The Aranzazu mine is performing above expectations, having achieved record production in the third quarter of 2021. Based on operating results achieved during Q3 2021, annualized royalty revenue to Nova would equate to approximately $1.7 million," he noted.
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The company noted that at the Taca Taca project in Argentina owned by First Quantum Minerals (TSX:FQM) Ltd, - where Nova owns a 0.42% NSR - as of September 30, 2021, First Quantum reported proven and probable mineral reserves at Taca Taca of 1,758.5 million tonnes at 0.44% copper, 0.09 grams per ton (g/t) gold, and 0.012% molybdenum.
At the NuevaUnión project in Chile, where Nova owns a 2% NSR, Teck Resources last reported proven and probable reserves at the La Fortuna deposit of 682.2 million tonnes at 0.51% copper and 0.47 g/t gold, it added.
In June this year, Nova acquired a 1% net proceeds royalty (NPR) on the West Wall copper-gold-molybdenum project, owned by a 50-50 joint venture between Anglo American PLC (LSE:AAL) and Glencore PLC (LSE:GLEN).
As of September 30, 2021, the joint venture pair last reported indicated resources at West Wall of 861 million tonnes at 0.51% copper, 0.009% molybdenum and 0.05 g/t gold and inferred resources at West Wall of 1,072 million tonnes at 0.42% copper, 0.006% molybdenum and 0.05 g/t gold, noted Nova.
At the Vizcachitas project in Chile, where Nova owns a 0.98% NSR on the San Jose 1/3000 claim which represents about 50% of the project, in June 2019, Los Andes Copper completed a preliminary economic assessment outlining a 45-year open-pit mine life at a throughput of 110,000 tonnes per day. An expanded drilling program is currently underway at the project, the results of which will be used to complete a pre-feasibility study, targeted by Los Andes for the first quarter of 2022.
Nova, based in Vancouver, British Columbia, is a royalty company focused on providing investors with exposure to the key building blocks of clean energy - copper and nickel.
Contact the author at giles@proactiveinvestors.com