Nomad earns $260,000 (U.S.) in Q2
2021-07-28 17:59 ET - News Release
Mr. Vincent Metcalfe reports
NOMAD ROYALTY COMPANY REPORTS Q2 RESULTS AND DECLARES THIRD QUARTER 2021 DIVIDEND
"Nomad's portfolio continues to show its strength with some significant developments at our key assets during the quarter," stated Vincent Metcalfe, chief executive officer of Nomad Royalty Company Ltd. "In particular, we expect strong growth over the coming years as the ramp-up at the Blyvoor gold mine continues to gain momentum and as Nevada Gold Mines moves towards the development of the Robertson property. We are also pleased to have announced the acquisition of a new royalty on the Caserones mine, located in Chile. Our cash flow focused portfolio continues to differentiate our company from the rest of its junior and intermediate royalty peers."
Second Quarter Highlights (in U.S. dollars unless otherwise noted):
Quarterly deliveries of 2,577 gold equivalent ounces1 ("GEOs") and GEOs1 sold of 2,577
Gold ounces earned of 2,154 and silver ounces earned of 28,848
Revenues of $4.6 million
Net income of $0.3 million and adjusted net loss1 of $1.0 million
Gross profit of $1.3 million
Cash operating margin1 of $4.0 million representing 88% of revenue
$25.4 million of cash as at June 30, 2021
Amended the Mercedes and South Arturo Silver Stream and replaced the Gold Prepay Agreement by a gold stream on the Mercedes mine
Completed a 10 for 1 consolidation of issued and outstanding common shares
Completed the acquisition of an effective 0.28% net smelter return royalty on the producing Caserones copper mine in Chile
Established an at-the-market equity program to issue and sell up to $50 million in common shares (no common shares issued and sold as of yet) and commenced a normal course issuer bid program (no common shares purchased for cancellation as of yet) to provide Nomad with additional tools and flexibility, as needed, to continue execute on its strategy
Declared a quarterly dividend of CAD $0.05 per common share for a total amount of $2.3 million paid on July 15, 2021
1 Refer to the Non-IFRS measures section of this press release.
Declaration of dividends:
Nomad is also pleased to announce a quarterly dividend of C$0.05 per common share, payable on October 15, 2021 to Nomad's shareholders of record as of the close of business on September 30, 2021.
For shareholders residing in the United States, the dividend will be paid in U.S. dollars based on the daily exchange rate published by the Bank of Canada on September 30, 2021. The dividend has been designated by Nomad as an "eligible dividend" under the Income Tax Act (Canada).
Additionally, following the acquisition of the interest in Compania Minera Caserones ("CMC") in May 2021, the Company estimates the gross dividend to be received in connection with CMC's Q2 2021 activities to approximate $0.4 million, reflecting two months since the economic effective date. For further clarity, numbers related to CMC are not included in the tables above.
For the second quarter of 2021, revenue was sourced 100% from gold and silver. Management's objective for the portfolio is to continue to maintain a focus on precious metals (primarily gold and silver) while seeking diversification by increasing the number of revenue sources within the portfolio. Geographically, revenue was sourced 62% from the Americas, 38% from Africa and 0% from Australia.
Share Capital:
On June 30, 2021 there were 56,655,818 common shares of Nomad outstanding. As at July 28, 2021, the Company had 56,655,818 common shares, 1,407,972 share options and 24,881,734 common share purchase warrants outstanding entitling the holders to purchase 2,488,174 common shares. The Company also had 209,879 restricted share units, 78,500 performance share units and 131,580 deferred share units outstanding. Pursuant to the deferred payment payable to Yamana Gold Inc. and based on the CAD $/US$ daily exchange rate published by the Bank of Canada on July 27, 2021, 13,976,240 common shares would be issuable should the conversion option be exercised on such date.
QUALIFIED PERSON
Vincent Cardin-Tremblay, P. Geo., Vice President, Geology of Nomad Royalty is the "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects who has reviewed and approved the technical content of this news release.
About Nomad Royalty Company Ltd.
Nomad Royalty 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 15 royalty and stream assets, of which 8 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. For more information please visit: www.nomadroyalty.com.
Consolidated statements of income (loss) and comprehensive income (loss) (unaudited)
(tabular amounts expressed in thousands of United States dollars, except per share amounts) Three months ended Six months ended June 30, 2021June 30, 2020June 30, 2021June 30, 2020 $ $ $ $ Revenue Gold and silver sales 4,192 5,611 13,530 11,987 Other revenue 400 427 714 427 Total revenue 4,592 6,038 14,244 12,414 Cost of sales Purchased cost of gold and silver 546 4,599 3,852 8,979 Depletion of royalty, stream and other interests 2,796 1,224 6,266 2,478 Total costs of sales 3,342 5,823 10,118 11,457 Gross profit 1,250 215 4,126 957 Other operating expenses (income) General and administrative expenses 1,178 631 2,317 1,207 Project evaluation expenses 135 22 371 55 Share-based compensation 509 1,344 1,171 1,344 Change in fair value of gold prepay loan (428) (2,652) 690 (3,575) Share of income of associate (53) - (53) - Listing expenses - 23,492 - 23,492 Total other operating expenses 1,341 22,837 4,496 22,523 Operating loss (91) (22,622) (370) (21,566) Other income (expenses) Change in fair value of conversion option 720 (4,984) 1,114 (4,984) Finance costs (513) (84) (916) (84) Foreign exchange income (loss) 75 (156) 67 (156) Total other income (expenses) 282 (5,224) 265 (5,224) Income (loss) before income taxes 191 (27,846) (105) (26,790) Income tax recovery 69 35,111 108 35,111 Net income and comprehensive income 260 7,265 3 8,321 Net income per share Basic 0.00 0.18 0.00 0.23 Diluted 0.00 0.18 0.00 0.23
We seek Safe Harbor.