Nova Royalty Corp. (TSX-V:NOVR) reported revenue of C$703,044 in the 2021 financial year as its first cash-flowing royalty on the Aranzazu mine has exceeded performance expectations.
CEO Alex Tsukernik told shareholders that performance at Aranzazu, which is operated by Aura Minerals Inc, has exceeded the firm’s initial expectations, having achieved multiple throughput expansions and cost reductions since 2018.
The royalty is currently generating approximately US$1.5 million to US$2.0 million of revenue on an annualized basis, with Aura guiding toward future production increases, Tsukernik said in a statement.
READ: Nova Royalty posts revenue of C$181,900 in third quarter; updates on asset portfolio
"2021 was a transformational year for Nova on the back of a similarly exciting 2020. We now own royalties on a significant proportion of the next generation of major copper assets being advanced into production and are continually adding to our portfolio,” the CEO said.
Throughout the 2021 financial year, Nova nearly doubled its royalty exposure on Taca Taca, owned by First Quantum, and added royalties on West Wall – an Anglo American and Glencore operation – as well as Los Andes Copper’s Vizcachitas and Hudbay’s Copper World and Rosemont, the last of which was announced early in January 2022.
"As we advance through 2022, we continue to build Nova into what we believe will be the world's premier copper investment vehicle with additional exposure to strategic nickel assets,” Tsukernik added.
“We are advancing on both of our main strategic priorities: acquiring additional royalties on advancing multi-generational projects such as Taca Taca and Copper World/Rosemont, and adding current cash flows from strong mid-size operators such as Aranzazu.”
For the 12-month period to end-December 31, 2021, Nova reported a loss of C$9.4 million or $0.12 per share compared to $3.4 million or $0.11 per share in the same year-ago period.
The firm ended the busy financial year with just over $962,000 in cash.
Contact Angela at angela@proactiveinvestors.com
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