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Gold Royalty Company Sees Record-Setting 2021

Stockhouse Editorial
2 Comments| March 16, 2022

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On Wednesday, Maverix Metals Inc. (TSX: MMX, Forum) announced record operating and financial results for Q4 and year ended December 31, 2021, to the tune of $57.5 million (CAD) revenue, according for some income adjustments.

2021 highlights:

  • Record gold equivalent ounces (GEO) sold of 32,0261
  • Record cash flow from operating activities of $43.2 million (CAD)
  • Record cash flow from operating activities, excluding changes in non-cash working capital, of $41.0 million (CAD)
  • Average cash cost per GEO of $167, resulting in a cash operating margin of 91% or $1,629 (CAD) per ounce
  • Record net income of $24.1 million (CAD), or $0.17 per share
  • Adjusted net income of $17.1 million (CAD), or $0.12 per share
  • Expanded credit facility to $160 million (CAD)
  • Increased dividend by 25% to $0.0125 per share

Maverix CEO, Dan O'Flaherty commented on these results in a release, stating that the company continued to grow in 2021, achieving a fifth consecutive year of record revenue and attributable gold equivalent ounces, while expanding its portfolio to a current total of 125 precious metals royalties and streams.

“We also increased our quarterly dividend by 25% during 2021 and expanded our credit facility which will allow us to pursue larger and more meaningful growth opportunities. We are excited to see further organic growth from within our existing portfolio in 2022 and beyond, while remaining focused on adding value through additional royalty and stream acquisitions.”

Q4 2021 financial highlights:

  • Revenue of $16.5 million
  • Record quarterly GEOs sold of 9,1731
  • Cash flow from operating activities of $11.6 million (CAD)
  • Record cash flow from operating activities, excluding changes in non-cash working capital, of $13.0 million (CAD)
  • Average cash cost per GEO of $100, resulting in a cash operating margin of 94% or $1,697(CAD) per ounce
  • Net income of $2.8 million (CAD), or $0.02 per share
  • Adjusted net income of $3.7 million (CAD), or $0.03 per share

Looking to the rest of 2022, Maverix continues to expect 32,000 to 35,000 attributable GEOs at approximately a 90% cash margin with approximately 99% of expected revenue derived from gold and silver.

Maverix has a 2.5% gross revenue royalty on the Omolon hub operation owned by Polymetal International and located in Magadan Region, Russia. Polymetal announced the current and devastating conflict in Ukraine and related economic and political developments are likely to require a lot of management efforts to maintain Polymetal's performance. Despite a wide range of uncertainties Polymetal will be working under in 2022, it is Polymetal's current intention to operate as normally as possible but remain agile to evolving circumstances.



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