Maverix Metals Inc. (TSXV:MMX) announced Q3 2017 financial results reporting revenue of C$4.6 million, operating cash flow of C$3.6 million and C$0.7
million of net income, which is significantly higher than the previous quarter by 15%, 57% and 250%, respectively. The company achieved attributable
AuEq ounces sold of 2,882 ounces and an average cash cost per attributable AuEq ounce of C$160, which results in cash operating margins of C$1,438
per ounce. Other updates during the quarter includes the closing of a $20 million loan facility, the first gold pour from the Moose River gold mine on which Maverix has a 3% NSR and expected H1 2018
production from the Silvertip mine on which Maverix has a 2.5% NSR. Although the company has significant growth prospects for 2018, it has lowered
2017 guidance for expected revenue and attributable AuEq production to C$16 – C$18 million and 10,000 – 11,000 ounces, respectively. The company’s
current enterprise value (EV) is sitting at ~C$263.3 million, which implies an EV/EBITDA of ~15.0x-17.6x (based on 2017 guidance), a discount to royalty
peers that trade at 19.7x (2017e EV/EBITDA). In our view, this valuation is not fully reflective of the company’s growth potential, both when considering
its development stage royalties and ability to do accretive acquisitions.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
Alex Pitcher | Associate
Red Cloud Klondike Strike Inc.
105 King Street East, 2nd Floor
Toronto ON, M5C 1G6
Priced as of prior trading day's market close, EST (unless otherwise noted).
All values in CAD unless otherwise noted.
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Company Specific Disclosure Details
Maverix Metals Inc - TSXV:MMX - 2,4
Pan American Silver Corp - TSX:PAA, NasdaqGS:PAAS - None
Gold Fields Ltd - JSE:GFI - None
Silvercorp Metals Inc. - TSX:SVM - None
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