After beating its already-increased annual 2021 guidance, Maverix Metals Inc (TSX:MMX) is on pace for another consecutive year of growth, according to analysts at Stifel GMP and Canaccord.
The royalty company recorded about 9,000 gold equivalent ounces (GEOs) in 4Q, 2021 and over 32,000 gold equivalent ounces for FY2021, which topped Maverix’s own estimate of 31,000 ounces.
READ: Maverix Metals beats annual FY2021 guidance with record 9,000 gold equivalent ounces in 4Q 2021
“2021 served as another year of strong performance for the company's royalty and streaming portfolio, showing consistent year-on-year (Y/Y) growth, and also building on the diversification and expansion of the portfolio by adding two immediately cash flow accretive deals (the Auramet gold stream and expanded royalty interest at Omolon),” analysts at Stifel wrote.
“Looking ahead to 2022, we anticipate MMX will continue to grow revenue GEOs Y/Y, and we currently forecast 36,000 ounces," they added.
The research firm is reiterating its 'Buy' rating on the stock and a target price of C$8.75.
Canaccord says Buy
Over at Canaccord, analysts noted that it is the fifth consecutive year of record production for Vancouver-based Maverix.
Canaccord is forecasting 2022 production of 33,400 GEOs and free cash flow of $40 million.
“We expect GEO growth in 2022 to be driven by contributions from the Auramet prepaid gold interest and Camino Rojo, which poured first gold in 4Q 2021 and is currently ramping up to full capacity with commercial production targeted by the end of 1Q 2022,” analysts wrote.
“Longer term we forecast steady GEOs in the 30,000 to 35,000 ounce range through 2028 from producing and near-producing assets, although we note that Maverix has a number of royalties on advanced projects that could start producing in the next five years that we do not currently include in our GEO forecasts, pending permitting and feasibility studies, including Koné, Gemfield, McCoy Cove, Kensington, Mother Lode, and a potential restart at Silvertip.”
Canaccord is also maintaining its 'Buy' rating and C$8 price target.
Shares of Maverix are currently trading around C$5.93 in Toronto and US$4.68 in New York.
Contact Angela at angela@proactiveinvestors.com
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