With Metalla Royalty (MTA:TSX.V; MTA:NYSE American) announced strong financial results for the first quarter of 2024 and provided important updates on its assets. Read on to learn the details of this announcement and much more.
Metalla Royalty & Streaming Ltd. (MTA:TSX.V; MTA:NYSE American) announcement strong financial results for the first quarter of 2024 and provided significant updates on its assets. The company reported revenue of US$1.3 million and adjusted EBITDA of US$0.1 million. Key developments include increased production at La Encantada, El Realito and Wharf. Notably, First Majestic discovered a significant water resource at La Encantada, which is expected to improve flow rates by the third quarter of 2024.
In addition, IAMGOLD Corp. (IMG: TSX; IAG: NYSE) has completed the first gold pour at Côté, with commercial production expected by the third quarter of 2024. (FM:TSX; FQM:LSE) expects to receive approval of the environmental and social impact assessment for Taca Taca this year, facilitating the advancement of the project for Metalla. In 2021, Metalla Royalty & Streaming Ltd. has strengthened its portfolio by acquiring a 1.35% net smelter return (NSR) royalty on the Côté Gold project. and the Gosselin Project, both owned by IAMGOLD Corporation (IAMGOLD) and Sumitomo Metal Mining Co., Ltd.
Brett Heath, CEO of Metalla, highlighted the company's focus on integrating its businesses after the merger with Nova Royalty Corp. and seek acquisitions that enhance shareholder value. These strategic initiatives underscore Metalla's commitment to optimizing its portfolio and driving growth.
The metals sector
Katusa Research released a recent overview of the gold market, calling it “the golden bull market of the century.” The site wrote about gold's “unprecedented closing highs on most trading days in March” and how, in most countries, it is seen as a symbol of wealth and prosperity . He adds: “It's not a question of if, but when this bull market will take off. You're already seeing it in real time.”
“It's selling at just over 50% NAV, so it remains very undervalued, and if you don't own it, Metalla can be bought,” said global analyst Adrian Day.
The gold rush attracted the attention of many people. Among them is an independent gold and silver analyst. Hubert Moolman who pointed out“Not only is gold in a bull run, but it has also entered a phase that can be compared to a bank run (as explained previously) on the global financial system, with the US dollar financial system acting as the global banker .”
What exactly does this mean? A bull run for gold could be longer term than most people think. As Bob Hoye of 321Gold published May 2024“The Golds bull market could last for years with exceptional rallies for companies from Majors to Juniors.”
In terms of money, Dominique Frisby of The flying frisby acknowledged some of people's concerns about investing on May 22 but pointed out that the market fluctuates, emphasizing: “Despite the constant disappointment in the price of silver, from time to time it soars and returns to its rightful place in the sky. It went from less than $5 an ounce in 1978 to $50 an ounce. in 1980, followed by 20 years of disappointment. It went from less than $8 per ounce in 2008 to $50 per ounce in 2011. What followed was another 13 years of disappointment. But these moonshots were very brief. Are we halfway to another moonshot? It's very possible.
Catalysts
Metalla Royalty & Streaming Ltd. presented several growth catalysts in its first quarter 2024 financial results. The company's strategic integration and post-merger streamlining with Nova Royalty has positioned it to pursue accretive acquisitions and refine its current portfolio.
“In the first quarter of 2024, we focused on integrating and streamlining our businesses following the completion of the merger with Nova Royalty in December 2023. We will now continue to seek acquisitions that will be accretive to shareholders and seek ways to refine our strategy. current royalty portfolio to maximize its value,” said Brett Heath, President and CEO.
Major asset updates include the La Encantada development, where First Majestic Silver Corp. expects ore production rates to improve by the third quarter of 2024. Additionally, significant production and exploration activities are underway at El Realito, Wharf and Aranzazu, with companies like Agnico Eagle Mines Ltd. (AEM: TSX; AEM: NYSE) And Aura Minerals Inc. (ORA:TSX; AURA33:B3) reiterating strong production guidance and extensive drilling campaigns.
The commissioning of Côté and expected approval of the environmental and social impact assessment by Taca Taca also adds to the growth potential, while the Fosterville, Endeavor and Tocantinzinho projects highlight strong exploration plans and development, promising further expansion of resources and operational milestones.
Expert opinions
President and CEO of Adrian Day Asset Management, Adrian Day examined Metalla's year-to-date rise in an April 3 report..
Day noted: “It has been a transformative year for Metalla, including the merger with Nova Royalty, and a new strategic plan, including the cancellation of its 'At Market' share issuance plan, a doubling of the convertible loan Beedie. facilitated to 50 million Canadian dollars, plans to reduce its debt and plans to pay dividends.
A month later, Day spoke about Metalla's investments again on May 22. Day explained: “The Côte mine is expected to generate revenue for Metalla by the end of next year as mining progresses towards its royalty lands, gradually building up until the Gosselin area is integrated into the mining plan. Other projects on which Metalla holds royalties, including Equinox's Castle Mountain, Agnico's Wasamac and First Quantum's Taca Taca, are all progressing on their development schedules. CEO Brett Heath tantalizingly noted that the company “will look for ways to refine our current portfolio” without giving additional information. cents on Friday, so we will look to buy more as the level stabilizes from this four-week high.
He added: “We were buying under $3 over the past two weeks as a sell recommendation from the newsletter sent the stock lower. The stock is selling for just over 50% of its NAV, so it remains very undervalued, and if you don't own that, Metalla can be bought.
Ownership and structure of sharing
According to Reuters, 4.13% of the company is owned by management and insiders.
CEO Brett Heath owns 3.66%, with 3.34 million shares.
9.51% is owned by strategic investor Beedie Investments Ltd., with 8.70 million shares.
12.43% are with institutional investors. Van Eck Associates Corp. holds 4.92%, with 4.50 million shares, and Euro Pacific Asset Management LLC holds 4.40%, with 4.03 million shares.
Its market capitalization is CA$221.4 million, with 52.84 million shares outstanding and 40.15 million shares floating.
It trades in a 52-week range of CA$7.91 to CA$3.56.
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Important Disclosures:
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their households) own securities of Metalla Royalty & Streaming and Agnico Eagle Mines Ltd.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and does not constitute a solicitation for any investment. Streetwise Reports does not provide general or specific investment advice and the information contained in Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult their personal financial advisor and conduct their own comprehensive investment research. By opening this page, each reader agrees to Streetwise Reports' terms of use and full disclaimer. Streetwise Reports does not endorse or recommend the activities, products, services or securities of any company.
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