Maverix Metals Provides 2017 Guidance
VANCOUVER, BC--(Marketwired - March 01, 2017) - Maverix Metals Inc. (the "Company" or "Maverix") (TSX VENTURE: MMX) is pleased to provide guidance for 2017, the Company's first full year of operations. Since inception in mid-2016, Maverix has grown substantially by completing acquisitions and through mine expansions at properties on which Maverix has an interest. Maverix has completed two notable acquisitions with Gold Fields Ltd. and Resource Income Fund, L.P. to bolster its precious metals royalty portfolio.
The following guidance is based on information obtained by Maverix through publicly available information for properties on which the Company holds royalties or streaming interests. All amounts are in Canadian dollars unless otherwise indicated.
2017 Outlook
As of the date hereof, the Company is providing the following forecasts for 2017[1]:
- Total attributable gold equivalent production is expected to be 13,375 to 15,000 attributable gold equivalent ounces;
- Total revenue is expected to be $20.5 to $23.0 million, or $17.5 to $20.0 million after deducting gold stream payments at La Colorada, and assuming a gold price of US$1,225 per ounce;
- Approximately 93% of total revenue is expected to be derived from gold sales, with silver (5%) and nickel (2%) accounting for the balance; and
- Total estimated cash general and administrative expenses are anticipated to be $2.5 million, excluding stock based compensation and transaction costs related to acquisition activities.
Dan O'Flaherty, CEO, stated, "I am very pleased with the achievements of the Maverix team during our first 8 months together. Following the Company's launch through the acquisition of Pan American Silver's royalty portfolio, we have completed two significant acquisitions to build and diversify our portfolio and increase our leverage to precious metals. Having demonstrated our ability to grow, the Maverix team is focused on further opportunities for 2017 and beyond."
Asset Highlights
The Company is expecting to achieve considerable growth over the coming year as a number of the Company's royalties are on assets that are undergoing expansions, or are in construction phases.
Beta Hunt Mine (6% Gold Gross Revenue Royalty, 1.5% Gold NSR Royalty, 1.5% Nickel NSR Royalty)
RNC Minerals has reported that throughput continues to increase at its Beta Hunt mine and the operation is expected to deliver full year 2017 gold production of 65,000 to 70,000 ounces. [2]
La Colorada Mine (100% Gold Stream)
The expansion of Pan American Silver's La Colorada mine from 1,250 tpd to 1,800 tpd remains on schedule. Pan American Silver expects the expansion to be completed during 2017 and has provided production guidance of 3,300 to 3,500 ounces of gold at La Colorada in 2017. [3]
Mt. Carlton Mine (2.5% NSR Royalty)
The Mt. Carlton mine continues to deliver strong results. Evolution Mining has provided production guidance of 90,000 to 100,000 ounces of gold for fiscal 2017. [4]
Vivien Mine (3.5% NSR Royalty)
Ramelius Resources reported production of 16,524 ounces of gold at its Vivien Mine for the December 2016 quarter, an increase of 108% over the previous quarter. Ramelius Resources also announced an updated mineral resource estimate at Vivien in January 2017. The new mineral resource is 854,000 tonnes at 7.2 g/t for 198,000 ounces of gold, an increase of 45,000 ounces (24%) over previous, after including production-to-date. [5]
Florida Canyon Mine (3.25% NSR Royalty)
Rye Patch Gold has announced that the projected ramp-up to 600,000 tons per month production (545,000 tonnes per month) at its Florida Canyon mine is on track for April 2017. The March 2016 Preliminary Economic Assessment for Florida Canyon contemplates average production of approximately 75,000 ounces of gold per year for 8 years.[6]
San Jose Mine (1.5% NSR Royalty on the Taviche Oeste Deposit)
Fortuna Silver Mines announced the completion of the expansion of its San Jose mine from 2,000 to 3,000 tpd in July 2016, and 2017 will be the first full year at the expanded throughput.[7]
Moose River Consolidated Project (3.0% NSR Royalty on the Touquoy Deposit)
Atlantic Gold announced that construction at the Moose River Consolidated project is progressing as planned and that the overall project completion reached 40% at the end of January. Atlantic Gold is working to achieve full production by year-end 2017. [8]
About Maverix
Maverix's primary purpose is to acquire and hold predominantly precious metals streams and royalties, and in so doing provide significant leverage to gold and silver prices for its shareholders. Maverix's mission is to increase underlying per share value by adding high-quality streams and royalties that offer robust returns to Maverix's portfolio.
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.
Technical and third party information
The disclosure herein and relating to properties and operations on the properties in which the Company holds royalty, stream or other interests is based on information publicly disclosed by the owners or operators of these properties and information/data available in the public domain as at the date hereof, and none of this information has been independently verified by the Company. Specifically, as a royalty or stream holder, the Company has limited, if any, access to properties included in its asset portfolio. Additionally, the Company may from time to time receive operating information from the owners and operators of the properties, which it is not permitted to disclose to the public. The Company is dependent on, (i) the operators of the properties and their qualified persons to provide information to the Company, or (ii) on publicly available information to prepare disclosure pertaining to properties and operations on the properties on which the Company holds royalty, stream or other interests, and generally has limited or no ability to independently verify such information. Although the Company does not have any knowledge that such information may not be accurate, there can be no assurance that such third party information is complete or accurate. Some information publicly reported by operators may relate to a larger property than the area covered by the Company's royalty, stream or other interest. The Company's royalty, stream or other interests often cover less than 100% and sometimes only a portion of the publicly reported mineral reserves, mineral resources and production of a property.
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. These assumptions include using a gold price of US$1,225 per ounce, US$17.50 per ounce of silver, US$4.75 per pound of nickel and a 1.30 CAD to USD exchange rate for 2017.
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.
[1] The forecast provided herein assumes a CAD to USD exchange rate of 1.30.
[2] For more information on the Beta Hunt mine, please visit the RNC Minerals website at www.rncminerals.com and refer to the press release dated January 18, 2017. Please also refer to the technical report entitled "NI 43-101 Technical Report Preliminary Economic Assessment The Beta Hunt Mine Kambalda, Western Australia" having an effective date of February 1, 2016, filed under RNC Mineral's SEDAR profile on May 18, 2016 and available at www.sedar.com.
[3] For more information on the La Colorada mine, please visit the Pan American Silver website at www.panamericansilver.com and refer to the press release dated January 12, 2017. Please also refer to the technical report entitled "Technical Report Preliminary Economic Analysis for the Expansion of the La Colorada Mine, Zacatecas, México" having an effective date of December 31, 2013, filed under Pan American's SEDAR profile on January 30, 2014 and available at www.sedar.com.
[4] For more information on the Mt Carlton mine, please visit the Evolution Mining website at www.evolutionmining.com.au and refer to the 2016 Annual Report.
[5] For more information on the Vivien mine, please visit the Ramelius Resources website at www.rameliusresources.com.au and refer to the press release dated January 31, 2017 and to the 2016 Annual Report.
[6] For more information on the Florida Canyon mine, please visit the Rye Patch Gold website at www.ryepatchgold.com and refer to the press releases dated January 5, 2017 and May 25, 2016. Please also refer to the technical report entitled "Amended Technical Report - Preliminary Economic Assessment for the Florida Canyon Mine, Pershing County, Nevada USA" having an effective date of March 16, 2016, filed under Rye Patch Gold's SEDAR profile on February 7, 2017 and available at www.sedar.com.
[7] For more information on the San Jose mine, please visit the Fortuna Silver website at www.fortunasilver.com and refer to the press release dated July 6, 2016. Please also refer to the technical report entitled "Amended Technical Report - Fortuna Silver Mines Inc.: San Jose Property, Oaxaca, Mexico" having an effective date of August 20, 2016, filed under Fortuna Silver's SEDAR profile on February 1, 2017 and available at www.sedar.com.
[8] For more information on the Moose River Consolidated project, please visit the Atlantic Gold website at www.atlanticgoldcorporation.com and refer to the press release dated February 28, 2017. Please also refer to the technical report entitled "NI 43-101 Technical Report Feasibility Study for Moose River Consolidated Project, Nova Scotia" having an effective date of July 2, 2015, filed under Atlantic Gold's SEDAR profile on August 13, 2015 and available at www.sedar.com.
Contact
For further information, please contact:
Maverix Metals Inc.
Daniel O'Flaherty
(604)-343-6225
President and CEO
Email: info@maverixmetals.com
Website: www.maverixmetals.com
