Nomad Royalty (TSX:NSR) Company Ltd. has guided investors on its expected royalty and stream sales for the year ahead as it lauded 2021 as "a transformative year" for the company as its team "successfully delivered on the many milestones laid out upon our initial listing in May 2020.”
The company has also announced a quarterly dividend of C$0.05 per common share, payable on April 14, 2022, to shareholders of record as of the close of business on March 31, 2022.
In an update, CEO and chair Vincent Metcalfe said: “Over the past 18 months, our team delivered four major acquisitions of high-quality royalties and streams and demonstrated that we have the required skillset and partnerships to add significant growth through M&A. In 2022, we will continue to execute on accretive deals to further fuel growth and increase asset diversification."
READ: Nomad Royalty pays first US$13.3M under Greenstone gold deal and updates on asset portfolio
Nomad reported sales of 3,231 GEOs (gold equivalent ounces) for the fourth quarter of 2021 and full-year sales of 16,372 GEOs. Revenue for the three months to end-December reached $6.8 million, taking total revenue for the year to $27.2 million, up from $26.8 million in 2020. It ended 2021 with cash of $12.4 million.
Nomad said Q4 revenue attributable to the company was sourced 79% from gold and silver and 21% from copper.
For the year ended December 31, 2021, revenue attributable to Nomad was sourced 93% from gold and silver and 7% from copper. Geographically, revenue for the year was sourced 64% from the Americas and 36% from Africa. No revenue was attributed to Australia, where it earned 4% of its revenue in 2020.
Recent highlights include:
- New value accretive transactions for a total over $220 million on near-term cash flowing royalties and streams, including the Platreef Gold Stream, the Greenstone Gold Stream and the Caserones Copper Royalty
- Implementing innovative ESG-linked long-term financial commitment on the Greenstone Gold Stream, a pioneer in the precious metals royalty sector
- Listing on the New York Stock Exchange
- Increasing credit facility by $75 million to $125 million
- Maintaining sector-leading dividend yield at 2.1%, one of the highest in the precious metals royalty sector
- Completing offering for gross proceeds of C$42.5 million at the beginning of January 2022
- Maintaining low general and administrative expenses compared to peers
- Establishing various tools to enhance financial flexibility including the at-the-market equity program for up to $50 million, normal course issuer bid program and dividend reinvestment plan
The company noted that major acquisitions announced in 2021 have significantly enhanced three-year gold equivalent ounces (GEO) growth for the period to 2025 to 130% for its portfolio of assets compared to 8% at Nomad's creation in May 2020, less than two years ago.
For 2022, Nomad said it expects attributable royalty and stream sales to total 23,000 to 27,000 GEOs using commodity prices of $1,800 per ounce for gold, $24 per ounce for silver and $4 per pound of copper.
Attributable royalty and stream sales are expected to reach 60,000 GEOs by 2025 based on the same commodity prices as those underpinning 2022 guidance, Nomad added. This guidance assumes the start of operations at its Greenstone and Platreef mines in 2024 and Cortez complex's Robertson deposit in 2025.
It cautioned that its 2022 and three-year guidance are based on its assessment of public forecasts and other disclosure by the third-party owners and operators of its assets.
Nomad Royalty (TSX:NSR) Company Ltd. is a gold & silver royalty company that purchases rights to a percentage of the gold or silver produced from a mine, for the life of the mine.
Nomad owns a portfolio of 22 royalty, stream, and gold loan assets, of which eight are on currently producing mines. Nomad plans to grow and diversify its low-cost production profile through the acquisition of additional producing and near-term producing gold & silver streams and royalties.
Contact the author at stephen.gunnion@proactiveinvestors.com