https://seekingalpha.com/artic…companies-february-report
Summary
The Precious Metals R&S Index declined by 7.76% in February.
The Precious Metals R&S Equally Weighted Index declined by 12.66% in February.
The best performance was experienced by Sailfish Royalty Corp. that recorded an almost 6% share price growth.
The biggest decline was experienced by Metalla Royalty & Streaming that lost more than 31% of its share price.
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Franco Nevada declared a quarterly dividend of $0.25 that will be paid on March 26. The record date is March 12. At the current share price, the annualized dividend yield equals 0.93%. The Q4 2019 financial results will be released on March 9.
Wheaton Precious Metals announced that it set a new record, as its attributable 2019 gold equivalent production climbed up to the 706,900 toz level. The original guidance was beaten by 16,900 toz of gold equivalent. The 2020 guidance envisages attributable production of 390,000-410,000 toz gold, 22-23.5 million toz silver and 23,000-24,500 toz palladium. The gold equivalent production is projected to be in the 685,000-725,000 toz range. The Q4 2019 financial results should be released on March 11.
Royal Gold released its Q4 2019 financial results on February 5. The company reported revenues of $123.6 million, operating cash flow of $78.3 million and net income of $41.3 million. More about Royal Gold's Q4 2019 financial results can be found here.
On February 13, Royal Gold announced that New Gold (NGD) released a new mine plan for its Rainy River mine. The new reserves contain 2.636 million toz gold and 6.266 million toz silver. The average annual gold production is expected at 289,000 toz gold, between 2020 and 2028. The information is important for Royal Gold, as it owns a 6.5% gold stream (to be reduced to 3.25% after 230,000 toz are delivered) and 60% silver stream (to be reduced to 30%, after 3.1 million toz are delivered), at ongoing payments of 25% of the prevailing spot price.
Osisko Gold Royalties was quite busy in February. On February 11, it announced the appointments of Frédéric Ruel as Chief Financial Officer and Vice President, Finance, Iain Farmer as Vice President, Corporate Development and Benoit Brunet as Vice President, Business Strategy.
On February 19, Osisko released its Q4 2019 financial results. The attributable gold equivalent production equaled 20,479 toz. Osisko generated revenues of $39.3 million and operating cash flow of $13.2 million. However, the net income was negative $119.5 million, due to huge impairment charges. More about Osisko's Q4 2019 financial results can be found here. Osisko also declared a Q1 2020 dividend of C$0.05. According to the recently released production guidance, Osisko's 2020 attributable gold equivalent production should be 82,000-88,000 toz.
On February 20, Osisko Gold Royalties announced that Osisko Mining (OTCPK:OBNNF) released a new resource estimate for its Windfall gold project. The volume of indicated resources increased by 60%, to 1.2 million toz gold at a gold grade of 9.1 g/t. The volume of inferred resources increased by 66%, to 3.9 million toz gold, at a gold grade of 8.4 g/t. Osisko Gold Royalties holds a 2-3% NSR royalty on the project.
Sandstorm Gold (SAND) released its Q4 2019 financial results too. The company sold 16,113 toz of gold equivalent, generating revenues of $24 million and operating cash flow of $15.7 million. The Q4 net income equaled $5.3 million. More about Sandstorm Gold's Q4 2019 financial results can be found here. The 2020 production guidance envisages production of 60,000-70,000 toz of gold equivalent.
Maverix Metals announced that in Q4, its attributable gold equivalent production equaled nearly 7,000 toz. The overall 2019 attributable production volume reached a new record high of 24,000 toz of gold equivalent. However, in 2020, a new record high is expected, as the guidance envisions 27,000-30,000 attributable gold equivalent toz.
Abitibi Royalties (OTC:ATBYF) provided an update regarding its royalties portfolio. The most important news was related to Agnico Eagle's (AEM) and Yamana Gold's (AUY) Canadian Malartic Mine. A new resource estimate was prepared for East Malartic and for Odyssey projects. Moreover, Agnico is considering to start mining East Malartic as soon as in 2023.
Metalla Royalty and Streaming announced that its board of directors has approved a monthly dividend of C$0.004 per share for March, April, and May. But what is more important, it also acquired a 2% NSR gold royalty on a portion of a large Nueva Union copper-gold project owned by Newmont (NEM) and Teck (TECK).
EMX Royalty Corporation invested $3.79 million in Ensero Holdings, a privately-held environmental consulting company focused on mine reclamation and implementation of remediation technologies. EMX acquired 7.5% of the company and preferred shares that should generate $7.24 million over the next 6-7 years.
On February 18, EMX announced the sale of three nickel-copper-cobalt projects to Pursuit Minerals. On February 25, EMX announced the acquisition of a 2% NSR royalty on the Kaukau palladium project located in Finland. On February 28, EMX announced the sale of its Swedish Tomtebo and Trollberget projects to District Minerals.
Sailfish Royalty announced the sale of its Almaden project to GoldMining (OTCQX:GLDLF) for C$1.15 million (one half in cash, one half in shares of GoldMining).
The March Outlook
The earnings season is almost over, only Franco-Nevada and Wheaton Precious Metals are about to release their financial results (March 9 and March 11 respectively). As the first days of March show, the period of extreme volatility continues. The precious metals royalty and streaming sector erased a big part of the late February losses, however, given the current market conditions, the investors should be cautious.