Nomad Royalty Company Ltd. prepares investors for higher royalties in 2022 and stream sales as she hails 2021 as ‘a year of transformation’

“Over the past 18 months, our team has completed four major high-quality royalty and stream acquisitions and demonstrated that we have the skills and partnerships to add significant growth through mergers and acquisitions,” said said CEO and President Vincent Metcalfe.

Nomad Royalty (TSX:NSR) Company Ltd. guided investors on its expected royalty and stream sales for the year ahead by lauding 2021 as “a transformational year” for the company as its team “successfully completed the many milestones set out on our initial listing in May 2020.”

The company also announced a quarterly dividend of CA$0.05 per common share, payable April 14, 2022, to shareholders of record at the close of business March 31, 2022.

In an update, CEO and President Vincent Metcalfe said: “Over the past 18 months, our team has completed four major acquisitions of high-quality royalties and streams and demonstrated that we have the necessary skills and partnerships. to add significant growth through mergers and acquisitions. In 2022, we will continue to enter into accretive deals to further fuel growth and increase asset diversification.”

READ: Nomad Royalty pays first US$13.3 million in Greenstone gold deal and asset portfolio updates

Nomad reported Q4 2021 sales of 3,231 GEO (gold equivalent ounces) and full-year sales of 16,372 GEO. Revenue for the three months to the end of December reached $6.8 million, bringing total revenue for the year to $27.2 million, from $26.8 million in 2020. It ended 2021 with a cash of $12.4 million.

Nomad said fourth quarter revenue attributable to the company was 79% from gold and silver and 21% from copper.

For the year ended December 31, 2021, revenues attributable to Nomad were derived 93% from gold and silver and 7% from copper. Geographically, revenues for the year came 64% from the Americas and 36% from Africa. No revenue was attributed to Australia, where it earned 4% of its revenue in 2020.

Recent highlights include:

  • New accretive transactions totaling over $220 million in royalty and short-term cash flow, including Platreef Gold Stream, Greenstone Gold Stream and Caserones Copper Royalty
  • Implemented an innovative ESG-related long-term financial commitment on the Greenstone Gold Stream, a pioneer in the precious metals royalty industry
  • Listing on the New York Stock Exchange
  • Increase in credit facility from $75 million to $125 million
  • Maintained the industry’s highest dividend yield at 2.1%, one of the highest in the precious metals royalty industry
  • Completion of the offering for gross proceeds of C$42.5 million in early January 2022
  • Maintain low general and administrative expenses relative to peers
  • Establish various tools to enhance financial flexibility, including at-market equity program up to $50 million, normal course issuer bid program, and dividend reinvestment plan

The company noted that major acquisitions announced in 2021 significantly improved three-year gold equivalent ounce (GEO) growth for the period to 2025 to 130% for its asset portfolio from 8% at the time. creation of Nomad in May 2020, i.e. less than two years. since.

For 2022, Nomad said it expects attributable royalty and stream sales to total 23,000 to 27,000 GEO using commodity prices of $1,800 per ounce gold, $24 per ounce of silver and $4 per pound of copper.

Attributable royalties and stream sales are expected to reach 60,000 GEO by 2025 based on the same commodity prices underlying the 2022 forecast, Nomad added. These forecasts assume the start of operations at its Greenstone and Platreef mines in 2024 and the Robertson deposit at the Cortez complex in 2025.

It cautioned that its 2022 and three-year forecast is based on its assessment of public forecasts and other information provided by the third-party owners and operators of its assets.

Nomad Royalty (TSX:NSR) Company Ltd. is a gold and silver royalty company that purchases the rights to a percentage of the gold or silver produced by a mine, for the life of the mine.

Nomad has a portfolio of 22 gold royalty, stream and loan assets, including eight at currently producing mines. Nomad plans to grow and diversify its low-cost production profile through the acquisition of additional streams and royalties in production and near-term gold and silver production.

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