GOLD ROYALTY REPORTS THIRD QUARTER 2024 RESULTS; RECORD REVENUE FOR THE FIRST NINE MONTHS OF 2024
Third Quarter 2024 Results Summary:
The following table sets forth selected financial information for the three and nine months ended
|
|
For the three months |
|
For the nine months ended |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
(in thousands of dollars, except per share amounts) |
|
($) |
|
($) |
|
($) |
|
($) |
Revenue |
|
2,060 |
|
797 |
|
6,748 |
|
2,032 |
General, administrative and project evaluation costs |
|
(2,428) |
|
(2,217) |
|
(7,436) |
|
(8,307) |
Net income (loss) |
|
3,423 |
|
(1,817) |
|
(218) |
|
(7,396) |
Net income (loss) per share, basic |
|
0.02 |
|
(0.01) |
|
(0.00) |
|
(0.05) |
Net income (loss) per share, diluted |
|
0.02 |
|
(0.01) |
|
(0.00) |
|
(0.05) |
Cash provided by (used in) operating activities |
|
(42) |
|
(1,751) |
|
1,281 |
|
(5,149) |
Non-IFRS and Other Measures |
|
|
|
|
|
|
|
|
Total Revenue, Land Agreement Proceeds and Interest* |
|
2,601 |
|
1,370 |
|
9,001 |
|
3,897 |
Cash Operating Expenses* |
|
(1,963) |
|
(1,642) |
|
(5,878) |
|
(5,987) |
Adjusted Net Income (Loss)* |
|
4,238 |
|
(1,095) |
|
1,571 |
|
(4,900) |
Adjusted Net Income (Loss) Per Share, basic* |
|
0.03 |
|
(0.01) |
|
0.01 |
|
(0.03) |
Adjusted Net Income (Loss) Per Share, diluted* |
|
0.02 |
|
(0.01) |
|
0.01 |
|
(0.03) |
Total Gold Equivalent Ounces ("GEOs")* |
|
1,051 |
|
711 |
|
4,017 |
|
2,036 |
* Total Revenue, Land Agreement Proceeds and Interest, Cash Operating Expenses, Adjusted Net Loss, Adjusted Net Loss Per Share, basic and diluted and Total GEOs are each non-IFRS measures and do not have a standardized meaning under IFRS. See "Non-IFRS Measures" for further information. |
For further detailed information, please refer to the Company's unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three and nine months ended
Third Quarter 2024 Highlights:
- Approximate 160% increase in revenue and 90% increase in Total Revenue, Land Agreement Proceeds and Interest in the third quarter of 2024 from the same period in 2023.
- In the third quarter of 2024, the Company recorded its second consecutive quarterly royalty payment from the Côté
Gold Mine and continued to benefit from its existing cash flowing royalties on theBorborema Project and the Canadian Malartic, Cozamin, andBorden Mines . The Company's royalty generator model added$0.4 million in land agreement proceeds in the quarter. - Net income per share and Adjusted Net Income Per Share in the third quarter of 2024 was
$0.02 and$0.03 , respectively, compared to a net loss per share and Adjusted Net Loss Per Share in the third quarter of 2023 of$0.01 and$0.01 , respectively. - The Company remains on track to achieve its annual guidance of between 6,500 and 7,000 GEOs for 2024, which equates to approximately
$13 million to$14 million in forecasted Total Revenue, Land Agreement Proceeds and Interest, as it expects to benefit from theVares Mine and CôtéGold Mine achieving full capacity by the end of the year and strong commodity prices. See "Notice to Investors" below for further information.
Portfolio Update:
On
Additionally, regional exploration work has accelerated in the eastern portion of the Canadian
For further information see Agnico Eagle's news release dated
For further information see Adriatic's ASX Announcement dated
Côté
For further information see IAMGOLD's news release dated
On
For further information see i-80's management discussion and analysis for the three and six months ended
For further information see Capstone's news release dated
For more information, refer to U.S. GoldMining's news release dated
For further information see Blackrock Silver's news release dated
Significant permitting progress at the
For further information see Orla's news release dated
Royalty Generator Model Update
Our royalty generator model continues to generate positive results with seven new royalties added in the nine months ended
We currently have 32 properties subject to land agreements and 6 properties under lease generating land agreement proceeds. The model continues to incur low operating costs with only
Third Quarter 2024 Results Conference Call Details
A conference call will be held on
Webinar: Click Here
US (toll-free): 1-866-652-5200
International: 1-412-317-6060
The third quarter 2024 presentation materials will be available on
About
Qualified Person
Alastair Still,
Notice to Investors
For further information regarding the project updates regarding properties underlying the Company's royalties, stream and other interests, please refer to the disclosures of the operators thereof, including the news releases referenced herein and the other disclosures of such operators. Disclosure relating to properties in which
Unless otherwise indicated, the technical and scientific disclosure contained or referenced in this news release, including any references to mineral resources or mineral reserves, was prepared by the project operators in accordance with Canadian National Instrument 43-101, which differs significantly from the requirements of the
The 2024 outlook, including forecasted total GEOs, is based on public forecasts, expected development timelines and other disclosure by the owners and operators of the properties underlying our interests and our assessment thereof.
Forward-Looking Statements:
Certain of the information contained in this news release constitutes "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and
Non-IFRS Measures
The Company has included in this document, certain performance measures, including: (i) Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share; (ii) Total GEOs; (iii) Total Revenue, Land Agreement Proceeds and Interest; and (iv) Cash Operating Expenses, which are each non-IFRS measures. The presentation of such non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently.
Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share
Adjusted Net Income (Loss) is calculated by adding land agreement proceeds credited against other mineral interests, loan interest earned on the gold-linked loan, convertible debentures-accretion, transaction related and non-recurring general administrative expenses* and share of (gain) loss in associate and deducting the following from net income (loss): dilution gain in associate, changes in fair value of derivative liabilities, embedded derivatives, short-term investments and gold-linked loan, gain (loss) on loan modification, foreign exchange gain (loss) and other income. Adjusted Net Income (Loss) Per Share, basic and diluted, have been determined by dividing the Adjusted Net Income (Loss) by the weighted average number of common shares for the applicable period. Management believes that they are useful measures of performance as they adjust for items which are not always reflective of the underlying operating performance of our business and/or are not necessarily indicative of future operating results. The following is a reconciliation of net income (loss) to Adjusted Net Income (Loss), Per Share, basic and diluted for the periods indicated:
|
|
For the three months |
|
For the nine months |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
(in thousands of dollars, except per share amounts) |
|
($) |
|
($) |
|
($) |
|
($) |
Net income (loss) after income taxes for the period |
|
3,423 |
|
(1,817) |
|
(218) |
|
(7,396) |
Land agreement proceeds credited against other mineral interests |
|
254 |
|
347 |
|
1,467 |
|
1,639 |
Pre-acquisition royalty revenue credited against Cozamin purchase price |
|
— |
|
226 |
|
— |
|
226 |
Gold-linked convertible loan interest from Borborema |
|
287 |
|
— |
|
786 |
|
— |
Convertible debentures - accretion |
|
454 |
|
— |
|
1,275 |
|
— |
Transaction related and non-recurring expenses |
|
141 |
|
64 |
|
416 |
|
699 |
Share of (gain) loss in associate |
|
67 |
|
(22) |
|
(33) |
|
(244) |
Dilution gain in associate |
|
— |
|
— |
|
(9) |
|
(12) |
Change in fair value of derivative liabilities |
|
— |
|
(3) |
|
— |
|
(242) |
Change in fair value of gold-linked loan to Borborema |
|
(400) |
|
— |
|
(1,350) |
|
— |
Change in fair value of short-term investments |
|
30 |
|
142 |
|
(19) |
|
219 |
Change in fair value of embedded derivatives |
|
(99) |
|
— |
|
(469) |
|
— |
Foreign exchange (gain) loss |
|
103 |
|
(30) |
|
116 |
|
77 |
Loan modification (gain) loss |
|
— |
|
— |
|
(310) |
|
249 |
Other income |
|
(22) |
|
(2) |
|
(81) |
|
(115) |
Adjusted Net Income (Loss) |
|
4,238 |
|
(1,095) |
|
1,571 |
|
(4,900) |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares |
|
|
|
|
|
|
|
|
Basic |
|
169,152,636 |
|
144,970,285 |
|
156,162,298 |
|
144,609,320 |
Diluted |
|
170,233,750 |
|
144,970,285 |
|
156,162,298 |
|
144,609,320 |
Adjusted Net Income (Loss) Per Share |
|
|
|
|
|
|
|
|
Basic |
|
0.03 |
|
(0.01) |
|
0.01 |
|
(0.03) |
Diluted |
|
0.02 |
|
(0.01) |
|
0.01 |
|
(0.03) |
* Transaction related, and non-recurring general administrative expenses comprised of operating expenses that are not expected to be incurred on an ongoing basis. During the nine months ended |
Total GEOs
Total GEOs are determined by dividing Total Revenue, Land Agreement Proceeds and Interest by the average gold prices for the applicable period:
(in thousands of dollars, except Average Gold Price/oz and GEOs) |
|
Average |
|
Total Revenue, |
|
GEOs |
For the three months ended |
|
2,475 |
|
2,601 |
|
1,051 |
For the three months ended |
|
1,927 |
|
1,370 |
|
711 |
For the nine months ended |
|
2,241 |
|
9,001 |
|
4,017 |
For the nine months ended |
|
1,914 |
|
3,897 |
|
2,036 |
Total Revenue, Land Agreement Proceeds and Interest
Total Revenue, Land Agreement Proceeds and Interest are determined by adding land agreement proceeds credited against other mineral interests and interest received under the gold-linked loan. The Company has included this information as management believes certain investors use this information to evaluate our performance in comparison to other gold royalty companies in the precious metal mining industry. The following is a reconciliation of Total Revenue, Land Agreement Proceeds and Interest to total revenue for the three and nine months ended
|
|
For the three months |
|
For the nine months |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
(in thousands of dollars) |
|
($) |
|
($) |
|
($) |
|
($) |
Royalty |
|
1,172 |
|
573 |
|
3,177 |
|
1,206 |
Pre-acquisition royalty revenue credited against Cozamin purchase price |
|
— |
|
226 |
|
— |
|
226 |
Advance minimum royalty and pre-production royalty |
|
807 |
|
153 |
|
2,250 |
|
509 |
Land agreement proceeds |
|
335 |
|
418 |
|
2,788 |
|
1,956 |
Gold-linked convertible loan interest from Borborema |
|
287 |
|
— |
|
786 |
|
— |
Total Revenue, Land Agreement Proceeds and Interest |
|
2,601 |
|
1,370 |
|
9,001 |
|
3,897 |
Land agreement proceeds credited against other mineral interests |
|
(254) |
|
(347) |
|
(1,467) |
|
(1,639) |
Pre-acquisition royalty revenue credited against Cozamin purchase price |
|
— |
|
(226) |
|
— |
|
(226) |
Gold-linked convertible loan interest from Borborema |
|
(287) |
|
— |
|
(786) |
|
— |
Revenue |
|
2,060 |
|
797 |
|
6,748 |
|
2,032 |
Cash Operating Expenses
Cash Operating Expenses are determined by deducting depreciation and share-based compensation from general, administrative and project evaluation costs. The Company has included this information as management believes certain investors use this information to evaluate our performance in comparison to other gold royalty companies in the precious metal mining industry. The following is a reconciliation of Cash Operating Expenses to general, administrative and project evaluation costs.
|
|
For the three months |
|
For the nine months |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
(in thousands of dollars) |
|
($) |
|
($) |
|
($) |
|
($) |
General and administrative costs |
|
(2,413) |
|
(2,188) |
|
(7,389) |
|
(8,029) |
Project evaluation costs |
|
(15) |
|
(29) |
|
(47) |
|
(278) |
General, administrative and project evaluation costs |
|
(2,428) |
|
(2,217) |
|
(7,436) |
|
(8,307) |
Depreciation |
|
20 |
|
13 |
|
59 |
|
50 |
Share-based compensation |
|
445 |
|
562 |
|
1,499 |
|
2,270 |
Cash Operating Expenses |
|
(1,963) |
|
(1,642) |
|
(5,878) |
|
(5,987) |
View original content:https://www.prnewswire.com/news-releases/gold-royalty-reports-third-quarter-2024-results-record-revenue-for-the-first-nine-months-of-2024-302296126.html
SOURCE