Maverix Metals continues to boost profits from its diverse royalty portfolio

• Diverse royalty portfolio across multiple jurisdictions
• Significant exposure to gold and silver revenue streams
• Cash flow continues to rise

What Maverix Metals does

Maverix Metals Inc (CVE:MMX) owns more than 60 royalties on producing mines and exploration and development projects, primarily in gold and silver, but also in platinum group elements, base metals, and other commodities.

With one or two exceptions, like Lydian’s Amulsar gold mine, these royalties are all situated in jurisdictions with a strong track record of mining.

The majority are in the US, Canada or Australia, with a couple in Mexico, while a few of the earlier stage projects spread out in South America, in Peru, Chile and Argentina. There is also a royalty on a near-term production project in the Dominican Republic, and on Endeavour’s Karma mine in Burkina Faso, which is currently in production.

Inflection points

• Movement in the gold price and other commodities is likely to be significant for the share price.
• The progress of various of the more advanced royalties towards production offers the prospect of additional revenue in the near term
• The addition of revenues from the La Colorada gold stream is imminent

Blue Sky

Revenue has already been consistently growing, as Maverix set records both for the three and nine months ended 30 September 2018. During the third quarter the company generated US$9.8mln in revenue and US6.7mln in operating cash flow.

The average cash cost per attributable gold equivalent ounce sold rang in at US167, resulting in operating cash margins of US$1,415 per ounce. With the gold price having strengthened recently, that margin is likely to grow.

Maverix has now said it’s likely to beat previous guidance of gold production from royalties of between 18,000 and 19,000 ounces. 

Story by ProactiveInvestors