Monday, May 15, 2017 Derek Macpherson

Marlin Hits Best Hole to Date at Commonwealth

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Marlin Gold Mining Ltd. (TSXV:MLN) reported drill results from its Commonwealth project, intersecting 1.56 g/t AuEq (0.83 g/t Au and 116 g/t Ag) over 102.5 m from Hole 17CDDH26, the best hole drilled on the property from a grade x thickness perspective. The hole was designed as a twin to a previous reverse circulation hole, hole E-9. We believe these results should benefit the existing resource, as historic RC holes were used to calculate the current April 2014 resource estimate. More twin holes are being reviewed. In addition, the company intercepted 0.98 g/t AuEq over 11.4 m and 1.04 g/t AuEq over 16.5 m, in the down-dip extension of the Footwall zone (Figure 1). We expect continued exploration success from Commonwealth and La Trinidad, anticipated permitting news from its San Albino royalty and strong Q1 financial results (late May) to be positive catalysts for Marlin over the near-term.  read more

Sunday, May 07, 2017 Derek Macpherson

Marlin Identifies New Zone at Commonwealth

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Marlin Gold Mining Ltd. (TSXV:MLN) released drill results from its Commonwealth project that have defined the new “Footwall Zone” at the Arizona project which could likely grow the resource and lower costs. Following up on hole 16CDDH06 (2.91 g/t AuEq over 25.8m), Marlin drilled an additional 12 core holes and results were highlighted by hole 17CDDH24 which returned 2.20 g/t AuEq over 25.7 m (Figure 1). Besides adding ounces, this new zone appears to be significantly higher grade than the current resource. In our view, this zone has the potential to meaningfully improve project economics. Besides continued drill results from the Footwall Zone, we expect strong Q1 financial results (late May), along with ongoing exploration results from La Trinidad and anticipated permitting news from its San Albino royalty to be positive catalysts for Marlin in the near-term. read more

Sunday, May 07, 2017 Derek Macpherson

AMI Ups 2017 Guidance; Kemess Remains Undervalued

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AuRico Metals Inc. (TSX:AMI) reported Q1 2017 financial results and increased its royalty revenue guidance for 2017 from US$8.0-US$8.4 million to US$9.5-US$10.4 million. The increase in guidance was driven by Kirkland Lake Gold Ltd. (TSX:KL) increasing its production guidance at Fosterville (was 140-145k oz Au, now 200-225k oz Au). AuRico is continuing to advance Kemess with ongoing permitting, a planned 12km drill program at Kemess East and Offset zones as well as a planned PEA to demonstrate the economic potential of Kemess East. We believe the company is well positioned to unlock the value of Kemess. Using AuRico’s updated guidance the company trades at ~14.3-16.2x royalty EBITDA, versus peers at 16.2x (2017e EBITDA). This implies the market is ascribing Kemess negligible value, which in our view should be worth ~C$100-125 million as compared to stand alone development stage peers. read more

Thursday, May 04, 2017 Derek Macpherson

MTA Increases Interest in Hoyle Pond Royalty

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Metalla Royalty & Streaming Ltd. (CSE:MTA) has signed an agreement to increase its interest in the Hoyle Pond Extension royalty to 2% (was 1%), we view the increase positively. Metalla signed a definitive agreement for C$1.5 million with Matamec Exploration Inc. to acquire the company’s royalties on the Hoyle-Matheson and Montclerg properties in Timmins, Ontario. The acquisition price includes a C$500,000 cash payment including C$1 million worth of shares (2 million shares for C$0.50/share). In addition, the company completed the acquisition of High Stream Corp, under the agreement announced in July 2016, High Stream received 10 million shares of Metalla. Based on the pending acquisition of the cash flowing Silverback stream, Metalla trades at ~56-59x on EV/CF basis vs. peers at 31.0x; however, this does not reflect the value of the Hoyle Pond royalty or the company’s ability to rapidly grow its portfolio with similar small streams. read more

Monday, May 01, 2017 Derek Macpherson

High-Grade HS Zone Benefits Marlin's Q4 Results

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Marlin Gold Mining Ltd. (TSXV:MLN) released Q4 2016 and full year financial results for 2016 along with full-year 2017 guidance. As expected, mining of the high-grade HS zone in Q4 2016 resulted in the company’s first profitable quarter (EPS of C$0.02 and EBITDA of C$11.6 million). As previously reported the cash generated in Q4 has allowed the company to increase exploration at La Trinidad and Commonwealth, consolidate its land holdings at Commonwealth, aid to reduce the Wexford Capital debt and advance the spin-off of the company’s wholly owned royalty subsidiary Sailfish Royalty Corp. The company also provided 2017 guidance to produce 50-55k oz Au, which appears achievable considering it shipped 18.9k oz Au in Q1. Based on this, we expect strong financial results in Q1, followed by a weaker quarter in Q2; however, the company expects to reach the southern portion of the high-grade zone in June, which should see production and financial results improve in Q3. As well, Marlin has guided that it expects to spin-off Sailfish later this year, once San Albino has received permits or another cash flowing royalty is acquired. We hope to get additional details on both 2017 guidance, the ongoing exploration programs plus the planned spin-out of Sailfish on tomorrow’s 10 am ET conference call (Dial-in: 1-844-348-1683, access code: 16115066). read more

Sunday, April 30, 2017 Derek Macpherson

MTA Signs Agreement on First Cash Flowing Stream

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Metalla Royalty & Streaming Ltd. (CSE:MTA) announced it has signed a definitive agreement to acquire a 15% interest in Silverback LTD for US$1.86 million. The company announced it had signed a letter of intent (LOI) to acquire this royalty in January 2017. Silverback LTD owns 100% of the New Luika Gold Mine (NLGM) silver stream. The NLGM produced ~126,572 oz Ag in 2016 and 28,750 oz Ag in Q1 2017. We estimate that Metalla has the potential to generate annual cash flow of US$260-280k from this stream based on previous production and current spot silver price. The agreement also includes an option for the company to invest in an additional streaming transaction. We view the investment positively, as the company continues to add value to its portfolio. The transaction is expected to close on or around May 11th, 2017. read more

Wednesday, April 19, 2017 Derek Macpherson

AMI Adds C$11.2M to Its Balance Sheet

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AuRico Metals Inc. (TSX:AMI) announced it has replaced the C$18.7 million restricted cash deposit used as security for reclamation and closure activities at the Kemess site, with a surety bond. The conversion released ~C$11.2 million in cash, as the company paid C$7.5 million in cash as collateral. In addition, the company appointed Sean Masse former Superintendent and Mine Manager at New Afton as Mining Project Manager and Mike Padula former Project Manager for Victoria Gold and Manager of Mining Wastes and Water for MMG Limited as Surface Construction Project Manager. The new additions to the AuRico team and stronger cash balance positions the company to continue to advance its Kemess Underground Project. read more

Monday, April 10, 2017 Derek Macpherson

Marlin Intersects High Grades at South HS Zone

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Marlin Gold Mining Ltd. (TSXV:MLN) announced high grade results from drilling in the southern part of the HS zone at its La Trinidad mine in Sinaloa, Mexico. The company reported two intercepts from drill hole 17TRD44, 15.55 g/t Au over 15.45m (upper intercept) and 5.81 g/t Au over 12.55m (lower intercept) which remains open to the west with the nearest drill hole to the north located 59m away. To note, the lower intercept confirmed mineralization beyond the current pit limits, and hit higher grades than previous results from hole 09TR023 announced on September 9, 2009 which intercepted 1.5 g/t Au over 17.8m, including 3.8 g/t Au over 5.8m. The company is planning to follow-up on these results, including targeting areas along strike to the south. Today’s results continue to support our view that La Trinidad’s mine-life could be extended via near-pit resources and that we expect the company to benefit from higher grades in the second-half of 2017 when they start mining the southern part of the HS zone. We expect continued exploration success to be an important near-term catalyst for the company. In addition, ongoing exploration activities at Commonwealth and a permitting update from San Albino on which the company has a gold stream, should provide positive momentum for the share price.  read more


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