Maverix Metals

Primary ticker: NYSE:MMX, TSX:MMX
Stage of development: Exploration, Development, Production
Commodity: Precious Metals
Project to promote: Hope Bay, La Colorada, Beta Hunt, Gemfield
Project location: North America, South America, Australia, Mexico
Company presentation: click here

Live financials

Cash: USD$25M
Debt: USD$76M

Major shareholders:
Newmont – 25%
Pan American Silver – 23%
Resolute Funds – 10.5%
Kinross – 9.4%
Tocqueville – 2.5%
Management Ownership – 10.3%

Maverix Metals is an emerging precious metals royalty and streaming company. Maverix’s business model provides investors with lower risk exposure to gold with upside exploration optionality through out portfolio of over 100 royalties and streams. Since forming in 2016, Maverix has completed 10 transactions including acquiring royalty portfolios from Pan American Silver, Gold Fields, Newmont, and most recently, Kinross Gold in December 2019. Maverix is led by an experienced management team who are committed to growing its asset portfolio and adding value for shareholders on a per share basis.

PI Financial Report January 2020

Management Profile

Dan O’Flaherty, CEO

Mr. O’Flaherty co-founded Maverix in 2016. He has over 10 years of investment banking and Executive Officer experience in the mining industry. Mr. O’Flaherty was previously the Executive Vice President and a Director of Anthem United, and prior to that was the Executive Vice President of Corporate Development at Esperanza Resources. He was a director in the investment banking team of Scotia Capital in Vancouver where he specialized in providing advice to clients on acquisitions, divestitures, mergers and hostile takeover defenses as well as on equity and debt financings in the metals and mining sector. Mr. O’Flaherty holds a Bachelor of Commerce degree, with honours, from the University of British Columbia.

What is your rationale for attending 121 Mining Investment?

Connecting with potential new shareholders and updating existing ones.

What recent news would you like to highlight to investors attending?

Record financial results for 2019 and inaugural quarterly dividend declared.

What are your key goals for the next 3, 6 and 12 months?

12 Months:
Deploy US$100M for royalty or stream acquisitions, further increase trading liquidity, diversify shareholder base and achieve trading liquidity targets to qualify for indices.

What do you think makes your company such a compelling investment?

Maverix Metals is a precious metals royalty and streaming company with the goal to provide our shareholders with a low risk gold investment. As a royalty and streaming company Maverix is able to generate cash throughout the entire commodity cycle, as our revenue is well diversified with 13 paying assets and is not overly exposed to one particular asset or jurisdiction. Additionally, our non-paying assets provide investors with significant optionality.

Analyst Insight – provided by Independent Investment Research

Maverix Metals is an NYSE and TSX-listed emerging precious metals royalty and streaming company. The company’s model provides investors with lower-risk exposure to gold, with upside exploration optionality through a portfolio of more than 100 royalties and streams, of which 13 are currently paying.

Maverix Metals provides upfront payments to mine operators in need of capital in return for a percentage of the future revenue generated from the mine (a royalty), or the right to either purchase all, or a fixed percentage of, future precious metal production for a pre-determined price (a stream). These royalty and streaming agreements provide exposure to precious metals price appreciation, fixed operating costs and exploration and expansion upside without the associated capital, operating and environmental costs.

Since forming in 2016, Maverix has completed 10 transactions including acquiring royalty portfolios from Pan American Silver, Gold Fields, Newmont, and most recently, Kinross Gold in December 2019.

Maverix holds a globally diversified portfolio of over 100 royalties and streams across 18 countries. The assets are located predominantly throughout Australia and the Americas, including a number in Mexico. Maverix is focused on assets that are in mining-friendly jurisdictions, primarily precious metals focused, have increasing cash flow and are owned by strong operating partners. The portfolio of royalties and streams that has been assembled provides a solid, cash-generating foundation for Maverix to continue to grow upon.

The company recently announced its operating and financial results for the first quarter ended March 31, 2020. The company generated revenue of $9.3 million, cash flow from operating activities (excluding changes in non-cash working capital) of $5.7 million, attributable gold-equivalent ounces sold of 5,871 at an average cash cost per attributable gold equivalent ounce sold of $167 – resulting in cash operating margins of $1,415 per ounce. Adjusted net income was $1.0 million.

Overall. Maverix had a strong start to the year, increasing its revenue and operating cash flow significantly by 64% and 128%, respectively, compared to Q1 2019.