VANCOUVER, March 28, 2019 /CNW/ - Maverix Metals Inc. (the
"Company" or "Maverix") (TSX-V: MMX) is pleased to announce record
operating and financial results for the fourth quarter and year
ended December 31, 2018.
For complete details please refer to the Financial Statements
and associated Management Discussion and Analysis for the quarter
and year ended December 31, 2018,
available on SEDAR (www.sedar.com) or the Company's website
(www.maverixmetals.com).
All dollar amounts are in Canadian dollars unless otherwise
indicated.
Full Year 2018 Financial Highlights
- Record revenue of $34.1
million;
- Record operating cash flow of $24.5
million, excluding changes in non-cash working
capital(1);
- Adjusted net income of $3.5
million(1);
- Record attributable gold equivalent ounces sold of 20,886
ounces(1);
- Average cash cost per attributable gold equivalent ounce of
$162 resulting in cash operating
margins of $1,468 per
ounce(1); and
- At December 31, 2018, the Company
had cash of $6.8 million, working
capital of $11.3 million and an
undrawn capacity of US$37.7 million
on its revolving credit facility to fund future acquisition and
growth opportunities.
Fourth Quarter 2018 Financial Highlights
- Revenue of $9.0 million;
- Operating cash flow of $7.0 million, excluding changes
in non-cash working capital(1);
- Adjusted net income of $0.7
million(1);
- Attributable gold equivalent ounces sold of 5,650
ounces(1); and
- Average cash cost per attributable gold equivalent ounce of
$164 resulting in cash operating
margins of $1,429 per
ounce(1).
Dan O'Flaherty, President and CEO
of Maverix, commented, "Maverix had an exceptional 2018, achieving
record revenue of over $34 million,
an increase of 75% on 2017 and exceeding the high end of our 2018
guidance. Throughout the year, we continued to grow and strengthen
our royalty and streaming portfolio, more than tripling its size
and adding new cash-flowing assets. We look forward to continuing
to build on this success with further growth and value creation in
2019."
2019 Outlook(1)
The Company continues to expect the previously announced
guidance of attributable gold equivalent production to be between
22,500 and 24,500 ounces for 2019. With a number of our paying
assets continuing to ramp up operations throughout the year, we
expect our attributable gold equivalent production to be weighted
towards the second half of 2019.
Annual General Meeting of Shareholders
Maverix's Annual General Meeting of Shareholders will begin at
2:00 pm PT (5:00 pm ET) on Tuesday,
May 14, 2019, at the Metropolitan Vancouver Hotel,
Cristal Room, 645 Howe Street,
Vancouver, British Columbia. The
Information Circular, Notice of Annual General Meeting of
Shareholders, and Form of Proxy for the meeting will be mailed to
shareholders of record as of April 4,
2019 and will also be available on SEDAR
(www.sedar.com).
Market Maker Services
The Company has retained Mackie Research Capital Corporation
("Mackie") to provide market making services to the Company in
compliance with the policies and guidelines of the TSX Venture
Exchange ("TSX Venture") and other applicable legislation.
Mackie will trade shares of Maverix on the TSX Venture for the
purposes of maintaining a reasonable market and improving the
liquidity of Maverix's common shares. The agreement between Mackie
and Maverix is on a month-by-month basis and can be terminated by
either party on written notice. Maverix has agreed to pay Mackie
$5,000 per month, paid quarterly in
advance. Maverix and Mackie act at arm's length to each other. The
agreement between Mackie and Maverix is principally for the
purposes of maintaining market stability and liquidity for
Maverix's common shares and is not a formal market making
agreement. There are no performance factors contained in the
agreement and Mackie will not receive any shares or options from
Maverix as compensation its services.
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(1)
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Maverix has included
certain performance measures in this news release that do not have
any standardized meaning prescribed by International Financial
Reporting Standards (IFRS) including adjusted net income, average
cash cost per attributable gold equivalent ounce, cash operating
margin per attributable gold equivalent ounce and operating cash
flow excluding non-cash working capital. The Company believes that,
in addition to conventional measures prepared in accordance with
IFRS, certain investors use this information to evaluate the
Company's performance and ability to generate cash flow. These
measures are not necessarily indicative of operating profit or cash
flow from operations as determined under IFRS. Other companies may
calculate these measures differently. For a reconciliation of these
measures to various IFRS figures, please see the following
descriptions or the Company's current Management Discussion and
Analysis disclosure found on the Company's website or on SEDAR.
Adjusted net income is calculated by excluding the effects of other
income/expenses, impairment charges, gains/(losses) on sale of
royalty and streams and unusual non-recurring items. Average cash
cost per attributable gold equivalent ounce is calculated by
dividing the total cost of sales, less depletion, by the
attributable gold equivalent ounces sold. Cash operating margin is
calculated by subtracting the average cash cost per attributable
gold equivalent ounce from the average realized selling price per
attributable gold equivalent ounce sold. The Company's royalty
revenue and silver sales are converted to an attributable gold
equivalent ounce basis by dividing the royalty revenue plus the
silver sales for a period by the average gold price based on the
LBMA Gold Price PM Fix per ounce for the same respective period.
These attributable gold equivalent ounces when combined with the
gold ounces sold from the Company's gold streams equal total
attributable gold equivalent ounces sold. Operating cash flows
excluding changes in non-cash working capital is calculated by
adding back the decrease or subtracting the increase in changes in
non-cash working capital to or from cash provided by (used in)
operating activities. Note these figures have not been audited and
are subject to change.
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About Maverix
Maverix is a gold royalty and streaming company. Maverix's
mission is to provide its shareholders with significant low risk
leverage to precious metal prices and to increase underlying per
share value by expanding its portfolio with acquisitions of
high-quality royalties and streams that offer robust returns.
NEITHER THE TSX VENTURE EXCHANGE ("TSX-V") NOR ITS REGULATION
SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE
TSX-V) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE.
Cautionary note regarding forward-looking statements
This release contains certain "forward looking statements" and
certain "forward-looking information" as defined under applicable
Canadian and U.S. securities laws. Forward-looking statements and
information can generally be identified by the use of
forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology. The forward-looking
information contained herein is provided for the purpose of
assisting readers in understanding management's current
expectations and plans relating to the future. Readers are
cautioned that such information may not be appropriate for other
purposes. Forward-looking statements and information include, but
are not limited to, statements with respect to the Company's
financial guidance, outlook, proposed plans for acquiring
additional stream and royalty interests and the potential of such
streams and royalty interests to provide returns and the completion
of mine expansion under construction phases at the mines or
properties that the Company holds an interest in. Forward-looking
statements and information are based on forecasts of future
results, estimates of amounts not yet determinable and assumptions
that, while believed by management to be reasonable, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. Forward-looking information is
subject to known and unknown risks, uncertainties and other factors
that may cause the actual actions, events or results to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: the
impact of general business and economic conditions; the absence of
control over mining operations from which Maverix will purchase
gold and other metals or from which it will receive royalty
payments and risks related to those mining operations, including
risks related to international operations, government and
environmental regulation, delays in mine construction and
operations, actual results of mining and current exploration
activities, conclusions of economic evaluations and changes in
project parameters as plans continue to be refined; accidents,
equipment breakdowns, title matters, labor disputes or other
unanticipated difficulties or interruptions in operations; problems
inherent to the marketability of gold and other metals; the
inherent uncertainty of production and cost estimates and the
potential for unexpected costs and expenses; industry conditions,
including fluctuations in the price of the primary commodities
mined at such operations, fluctuations in foreign exchange rates
and fluctuations in interest rates; government entities
interpreting existing tax legislation or enacting new tax
legislation in a way which adversely affects Maverix; stock market
volatility; regulatory restrictions; liability, competition, loss
of key employees and other related risks and uncertainties. Maverix
undertakes no obligation to update forward-looking information
except as required by applicable law. Such forward-looking
information represents management's best judgment based on
information currently available. No forward-looking statement can
be guaranteed and actual future results may vary materially.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements or information.
SOURCE Maverix Metals Inc.