I am truly honored to have Metalla Royalty & Streaming as a blog sponsor.
Metalla Royalty & Streaming (NYSE:MTA | TSX-V:MTA) is a high growth precious metals royalty and streaming company providing investors with exposure to a broad portfolio of high quality precious metals assets on projects that are owned and operated by major mining companies. In the last 24 months, they’ve seen 9 of their precious metals royalty peers either be acquired or change form, leaving few sub-$1B market cap precious metals royalty companies, and virtually eliminating their competition to acquire royalties to grow their portfolio.
Portfolio Growth Since 2016 Inception
• 31 transactions
• $170M deployed
• 85 royalties and streams acquired
Acquisition Strategy
• Target royalties on projects that are owned and operated by tier one counterparties (Agnico Eagle, Newmont, Barrick, Teck, Pan American Silver, Kirkland Lake, St Barbara, First Majestic etc.) reducing development, financing, expertise etc. risk
• Acquire projects in the development stage with a clear path to production for most accretive value
• Target third party royalty holders looking for both liquidity and price discovery (buying these royalties directly from the major mining company operator would never be possible)
• Bilateral transactions outside of a process
Ticker Symbol: NYSE:MTA | TSX-V:MTA
Shares Outstanding: 50.1M
Share Price: US $4.14
Analyst Coverage: BMO, Cantor Fitzgerald, Haywood Securities, PI Financial
Consensus PNAV: 0.84x (Sector Average: 1.33x; MTA average 1.44x)
Notable recent transactions over the last 24 months include:
• Alamos Gold Portfolio–one silver stream and three royalties for $5 million of common shares of Metalla
• First Majestic Silver Portfolio–all share transaction, 8 royalties, highly leveraged to silver, immediate cash-flow, large new shareholder
• Barrick Gold’s Lama Project–2.5% to 3.75% GVR royalty on gold and silver, and a 0.25% to 3.0% NSR royalty on copper and other non-precious minerals, extracted from the majority of the Lama project in Argentina
• Eldorado Gold’s Tocantinzinho–0.75% royalty on high-grade open pit project in Northern Brazil that has an expected mine life of ten years with estimated annual gold production of 170Koz at a $580/Oz cash cost.
• Barrick Gold’s Alturas-Del Carmen–0.5% NSR–paid CAD $1.6M for a royalty covering 500-1M oz Au; however Barrick has an resource target of 2.7M Au with drilling planned for 2021
• Oz Minerals’ CentroGold project-1-2% NSR on one of the largest undeveloped gold projects in Brazil expected to produce ~1.1Moz Au beginning in 2024
• Amalgamated Kirkland–0.045% NSR (Agnico Eagle/Kirkland Lake joint project)
• Portfolio of 11 exploration royalties mainly in Nevada–(covers the southern extension of the Nevada Goldmines’ Goldrush project (Nevada Goldmines is a JV between Barrick and Newmont giving us exposure to up to 3.5% in royalties on the southern extension of Goldrush in aggregate)
• 1% NSR on Minera Alamos’ la Fortuna ( for $1M consideration ($400k in MTA shares, $600k cash) we acquired the development royalty that should have construction commencing in 2022. Consensus NAV has the royalty pegged at US $4.3M)
• Participation royalty on Karora Resource’s Higginsville project (adds immediate cashflow to portfolio)
• A 2.5% NSR on Kirkland Lake’s Fosterville Mine (covers ground in the direct path of planned exploration on arguably one of the most coveted mines on the planet)
• 1% royalty on Coeur Mining’s Wharf Mine (added immediate cashflow to portfolio)
• Strategic Cortez Royalty Acquisition (first foray into coveted Nevada geological trend)
• 2% NSR on Teck/Newmont’s NeuvaUnion (days after the acquisition Teck/Newmont announced US $152M spend on NuevaUnion)
I encourage you to do serious due diligence ASAP.
