january 2018 i i canada: mta i us ... · this presentation contains certain "forward looking...
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January2018I www.metallaroyalty.comI Canada:MTAI US:MTAFFI Germany:X9CP
FORWARD LOOKING STATEMENTS
This presentation contains certain "forward looking statements" and certain "forward-looking information" asdefined under applicable Canadian and U.S. securities laws. Forward-looking statements and information cangenerally be identified by the use of forward-looking terminology such as "may", "will", "should", "expect","intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. The forward-lookinginformation contained herein is provided for the purpose of assisting readers in understanding management'scurrent expectations and plans relating to the future. Readers are cautioned that such information may not beappropriate for other purposes.Forward-looking information is subject to known and unknown risks, uncertainties and other factors that maycause the actual actions, events or results to be materially different from those expressed or implied by suchforward-looking information, including but not limited to: the impact of general business and economicconditions; the absence of control over mining operations from which Metalla will purchase gold and other metalsor from which it will receive royalty payments and risks related to those mining operations, including risks relatedto international operations, government and environmental regulation, delays in mine construction andoperations, actual results of mining and current exploration activities, conclusions of economic evaluations andchanges in project parameters as plans continue to be refined; accidents, equipment breakdowns, title matters,labor disputes or other unanticipated difficulties or interruptions in operations; problems inherent to themarketability of gold and other metals; the inherent uncertainty of production and cost estimates and thepotential for unexpected costs and expenses; industry conditions, including fluctuations in the price of the primarycommodities mined at such operations, fluctuations in foreign exchange rates and fluctuations in interest rates;government entities interpreting existing tax legislation or enacting new tax legislation in a way which adverselyaffects Metalla; stock market volatility; regulatory restrictions; liability, competition, loss of key employees andother related risks and uncertainties.Metalla undertakes no obligation to update forward-looking information except as required by applicable law.Such forward-looking information represents management's best judgment based on information currentlyavailable. No forward-looking statement can be guaranteed and actual future results may vary materially.Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
FOUNDATION OF A SUCCESSFUL ROYALTY AND STREAMING COMPANY
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ü EXPERIENCED MANAGEMENTTEAMWITHTRACKRECORDOFSUCCESS
ü FOCUSEDONANUNDERSERVEDPARTOFTHEMARKETWITHPROVENSTRATEGY
ü ROBUSTPIPELINEOFTRANSACTIONSWITHFAVORABLERATESOFRETURN
ü STRONGCOUNTERPARTIESANDGEOGRAPHICALLYDIVERSIFIED
ü 100%EXPOSURETOPRECIOUSMETALS
TIMELINE
4
HighStreamCorp(SpecialtyRoyalty&StreamingCompany)
2090720OntarioIncRoyaltyPortfolio(5Royalties)
SilverbackSilverStream(1Stream)
SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN
2016 2017
IEPRoyaltyPortfolio(6Royalties)
MatamecRoyaltyPortfolio(5Royalties)
CoeurMiningRoyaltyPortfolio
(3Royalties,1Stream)
STRONGTRACKRECORDOFACQUIRINGACCRETIVEROYALTYANDSTREAMINGASSETS
Orefinders(RoyaltyOption)
CanadaRoyalties• HoylePondExtension• TimminsWestExtension•TVZ•DeSantisMine•BintProperty•MontclergProperty•ColbertAnglo•PelangioPoirier•Beaudoin•DNA•SirolaGrenfell•MiradoMine•Solomon’sPillar
EcuadorRoyalty•Zaruma
ChileRoyalty•Puchildiza
ArgentinaRoyalty•Joaquin
TanzaniaStream•NLGM
AustraliaStream•Endeavor
Legend• Producing• Development• Exploration
GEOGRAPHICALLY DIVERSIFIEDPORTFOLIO
5
PORTFOLIO - PRODUCING
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ASSET ENDEAVORMINE
METALLAINTEREST 100%OFBY-PRODUCTSILVERSTREAM(AG)
OPERATOR
METALPRODUCED PB,ZN, AG
LOCATION NSW AUSTRALIA
SILVERRESERVES 987,500AGOUNCESINCURRENTMINE
PLAN
ONGOINGPAYMENT
$1USDPEROUNCE +50%OFSILVERPRICE
ABOVE$7USDPEROZ
PRODUCTIONGUIDANCEFY2018
400,000– 450,000 OZAG
ASSET NEW LUIKAGOLDMINE(“NLGM”)
METALLAINTEREST 15%OFBY-PRODUCTSILVERSTREAM(AG)
OPERATOR
METALPRODUCED AU, AG
LOCATION TANZANIA,LUPAGOLDFIELDS
ONGOINGPAYMENT
10%OFSPOTOFSILVER(AG)
PRODUCTIONGUIDANCEFY2018
120,000– 150,000 OZAG
ASSET ZARUMAMINE
METALLAINTEREST 1.5%NSRROYALTYONPRODUCTION
OPERATOR
METALPRODUCED AU, AG
LOCATION ZARUMA-PORTOVELODISTRICT- ECUADOR
RESOURCES M&I1,094,000OZAU,ANDINFERRED
1,448,000OZ AU
PRODUCTIONGUIDANCEFY2018
15,000– 20,000 OZAU
ASSET HOYLEPONDEXTENSION
METAL: GOLD
COUNTRY: CANADA
INTEREST: 2%NSRROYALTY(500,000OZAU EXEMPTION)
OPERATOR:
GUIDANCE: FY2018 160,000OZAU(EXTENSIONUNDER
DEVELOPMENT)
PORTFOLIO - DEVELOPMENT
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ASSET JOAQUINPROJECT
METAL: SILVER
COUNTRY: ARGENTINA
INTEREST: 2%NSRROYALTYONPRODUCTION
OPERATOR:
RESOURCES: 65MOZAG43-101UNDER
M&I (UNDERDEVELOPMENT)
ASSET TIMMINSWESTEXTENSION
METAL: GOLD
COUNTRY: CANADA
INTEREST: 1.5%NSRROYALTY(SUBJECTTO0.75%BUYBACK)
OPERATOR:
GUIDANCE: GUIDANCEFY201855,000– 65,000OZAU
(EXTENSIONUNDERDEVELOPMENT)
PORTFOLIO - EXPLORATION
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Property Operator Location Stage Metal Terms NotesTVZZone Goldcorp Canada Development Au 2%NSR Zone atdepth
DeSantisMine OsiskoMining Canada EarlyExploration Au 1.5%NSR Located inTimminsgoldtrend
BintProperty Glencore Canada EarlyExploration Au 2%NSR Nocurrentworkplanned
Colbert/Anglo Goldcorp Canada EarlyExploration Au 2%NSR Subject to0.75%buyback
Montclerg IEP Canada AdvancedExploration Au 1%NSR Drillprogramplanned
PelangioPoirier PelangioExp. Canada EarlyExploration Au 1%NSR Downplunge fromGapZone.
DNA DetourGold Canada EarlyExploration Au 2%NSR OnwestextensionofDetourCamp
Beaudoin ExplorResources
Canada EarlyExploration Au,Ag 0.4%NSR LocatedadjacenttooldDeSantismine
SirolaGrenfell GoldenPeakRes.
Canada EarlyExploration Au 0.25%NSR
2-compartmentshaft.Potential forlowgradebulkminableresource
MiradoMine Orefinders Canada AdvancedExploration Au 1%NSR +Option
442,000ozAuinferred 43-101report(1)
Solomon’sPillar Sage Gold Canada EarlyExploration Au 1%NSR Narrow butveryhighgradegold.3-compartmentshaft
Puchildiza RegulusResources
Chile AdvancedExploration Au 1.5% NSR 686,000ozAuInferred43-101report(2)
(1) Seetechnicalreportathttp://www.orefinders.ca/overview/(2) Seetechnicalreportatwww.regulusresources.com/projects/puchuldiza-chile/
LEADERSHIP
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LawrenceRoulstonNon– ExecutiveChairmanMiningprofessionalandgeologist
withover35yearsofdiversehands-onexperience
CharlesBeaudryIndependentDirector30yearsexperienceasa
geologist,businessdevelopment,explorationchemistry
EBTuckerIndependentDirectorCaseyReportEditor,15years
experienceinfundmanagementandsecurityanalysis
BrettHeathPresidentandCEO,Director
10yearsexperienceinstructuredfinance,corporatefinance,andinvestmentmanagement,
5yearsofroyaltyandstreamingexperience
BillTsangChiefFinancialOfficer
CharteredProfessionalAccountantwithmorethan10yearsoffinancialaccountingandauditingexperience
inthemineralexplorationandminingindustry
KimCasswellCorporateSecretary
25yearsexperienceCorporateSecretaryofseveralpubliccompanieslistedonTSX-Vand
theTorontoStockExchange
COMPANY OVERVIEW
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SHAREPRICE(December29,2017) 66CENTS
SHARESOUTSTANDING(undiluted)
74M
MARKETCAP(CanadianDollars) $48M
OPTIONS 5.4M
WARRANTS 3.1M@45 cents5.2M@75cents
OWNERSHIPCAPITALSTRUCTURE
2017PERFORMANCE
Canada:MTAI US:MTAFFI Germany:X9CP
GUIDANCE
450,000– 500,000(1)
SILVEREQUIVALENTOUNCESFISCALYEAR2018(2)
(1)70-1silver-goldratio(2)June1,2017– May31,2018
CoeurMining 14,546,600 19.6%Europac 5,000,000 6.7%BrettHeath 2,860,000 3.9%Roger Dent 2,438,332 3.3%Kjell Akesson 2,076,667 2.9%RossQuigleyandFamily 1,966,666 2.7%IEP 1,900,000 2.6%AdrianDayAssetManagement 1,461,000 2.0%AndrewRobertson 1,310,666 1.8%TimGallagherandFamily 1,293,749 1.7%InflectionCapital 1,238,166 1.7%USGlobal 1,000,000 1.3%DougCasey 966,666 1.3%PaulStephens 833,333 1.1%
Company Symbol 2017PerformanceAurico Metals(Acquired byCenterra) AMI 77% MetallaRoyalty&Streaming MTA 69% RoyalGold RGLD 29% FrancoNevada FNV 25% SandstormGold SSL 19% Maverix Metals MMX 15% Osisko GoldRoyalties OR 11% WheatonPreciousMetals WPM 7% AbitibiRoyalties RZZ 5% EMXRoyalty EMX -22%
DIVIDEND
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RecordDate PaymentDate PaymentAmount($CAD)
January January3,2018 January15,2018 $0.001
February February1,2018 February15,2018 $0.001
March March1,2018 March15,2018 $0.001
ü MonthlydividendpaymentofCAD$0.001startinginJanuary2018
ü Willincreasethroughout2018untilgoalof50%ofaftertaxandG&A
operatingcashflowismet
ü CompanyplanstoofferaDividendReinvestmentPlan(“DRIP”)onceit
reachescertainrequirementstoefficientlyprovidetheDRIPtoallofits
shareholdersglobally
WHY INVEST NOW
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Company(Jan 11,2018) Ticker StockPrice MarketCapFrancoNevada FNV $96.45 17.8BWheatonPreciousMetals WPM $26.41 11.7BRoyalGold RGLD $84.50 5.5BOsiskoGoldRoyalties OR $14.32 2.3BSandstormGold SSL $6.34 1.1BMaverixMetals MMX $1.71 260MAurico Metals(Acquired) AMI $1.80 310MAbitibiRoyalties RZZ $9.55 108MEMXRoyalty EMX $1.09 86MMetallaRoyalty MTA $0.73 53M 6
18
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CashFlowAnnually(CADMillions)
MetallaVSPeers
Metalla Maverix
Aurico
$102Minpotentialvalue7
24
CashFlowMultiple
MetallaVSMajors
Metalla MajorStreamingCompanies*
*AveragemultipleforFrancoNevada,WheatonPreciousMetals,andRoyalGoldasofNov2017
MultipleExpansion
UNIQUELYPOSITIONEDFORARE-RATINGINVALUATION
• As junior royalty or streaming companies diversify theirportfolios and grow free cash from operations to $10 millionannually or greater, historically, this is when you see multipleexpansion.
• The Cash Flow Multiple (Price/Operating Cash Flow) is themetric most often used when understanding valuations forroyalty and streaming companies. This means for every $1million generated from royalties or streams times themultiple equals the market capitalization. Meaning themajors currently receive $24 million in market cap value onaverage for every $1 million generated.
Acquired at 15-20xoperating cash flow
MTAIMTAFFIX9CP
APPENDIX
[email protected]:+1(604)696-0741
Suite501- 543GranvilleStreet,Vancouver,BCV6C1X8Canada
WHY ROYALTY AND STREAMING?
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MiningCompany
Royalty/StreamingCompany
PP//NNAAVVMMuullttiipplleeEExxppaannssiioonn
Valueoffuturepreciousmetalproductioninaminingcompanyvs.royalty/streamingcompany
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InitialpaymentMining
Company
Perouncepayment
Deliveryofmetal
1
2
3
InitialpaymentMining
Company
Percentageofrevenuegenerated
1
2
STREAMINGPROCESS ROYALTYPROCESS
ENDEAVOR SILVER STREAM
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MetallaInterest 100%ofBy-productsilverstream(Ag)
Operator CBHResources
MetalProduced Pb,Zn, Ag
Location NSW Australia
Project Status Producing
SilverReserves 987,500Agouncesincurrentmineplan
Ongoingpayment $1USDperounce(1) +50%ofsilverpriceabove
$7USDperOz
ProductionGuidanceFY2018
400,000– 450,000 OzAg
(1)PlusadjustmentsforinflationindexedtoCPI
• Longhistoryofoperations• Exploration/extensiondrillingprogram
underway• Fiscalq2– 158,865ouncesofsilver
productionwithanaveragecashmarginofoverUS$10.
NLGM SILVER STREAM
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MetallaInterest 15%ofBy-productsilverstream(Ag)
Operator ShantaGold (LON:SHG)
MetalProduced Au, Ag
Location SouthwestTanzania,Lupa GoldFields
Project Status Producing
Ongoingpayment 10%ofSpotofsilver(Ag)
ProductionGuidanceFY2018
120,000– 150,000 OzAg
• 10yearstream(expires2026)• Lowestquartileofcostsamongstproducers• Experiencedmanagementteam• Achievedundergroundexpansionontimeand
underbudget
ZARUMA ROYALTY
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MetallaInterest 1.5%NSRRoyaltyonproduction
Operator CoreGoldInc.(TSXV:CGLD)
MetalProduced Au, Ag
Location Zaruma-PortoveloMiningDistrictofsouthernEcuador
Project Status Producing
Resources MeasuredandIndicated1,094,000ozAu,and
Inferred1,448,000Oz Au(1)
ProductionGuidanceFY2018
15,000– 20,000 OzAu
• SignedagreementforUS$15MdebtforZaruma restartin2018
• Companycompletedsuccessfulcorporaterestructure
• Newexperiencedmanagementteam
(1) Seetechnicalreport:https://www.dynastymining.com/operations/technical-reports
JOAQUIN ROYALTY
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MetallaInterest 2%NSRRoyaltyonproduction
Operator PanAmericanSilver(TSE:PAAS)
MetalProduced Ag, Au
Location Santa Cruz Province,Argentina
Project Status Development
Resources MeasuredandIndicatedresourceof65.2millionozAg and61,100ozofAu(1)
• PanAmericanallocatedUS$37.8MtodevelopJoaquin
• Productiontostartin2019• Annualizedproductiononaverage81,000
ouncesofsilvertoMetallaoverfirst3years
(1)Pleaserefertoatechnicalreporttitled"JoaquinProjectNI43-101TechnicalReport"anddatedFebruary15,2013(the"JoaquinReport").
HOYLE POND EXTENSION ROYALTY
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MetallaInterest 2%NSRRoyalty onproduction(onleasedminingrightssubject to500,000oz
Auexemption)
Operator GoldcorpInc.(NYSE:GG)
MetalProduced Au
Location Timmins,OntarioCanada
Project Status Producing(extensionunderdevelopment)
Resources Nocurrent reserve/resourceontheextension
ProductionGuidanceFY2018
155,000– 160,000 OzAu
• Goldcorp October 25, 2017 NR reserves andresources estimate stated “In 2018, reservereplacement will be focused on theevaluation of the down plunge extension ofthe mineralized veins at Hoyle Pond”
(1)ResourcesinPorcupineCampseeGoldcorp2016reservesandresourcesreport
TIMMINS WEST EXTENSION ROYALTY
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MetallaInterest 1.5%NSRRoyaltyonproduction(extensionclaim)subjectto0.75%buybackfor
USD$750,000
Operator TahoeResources(NYSE:TAHO)
MetalProduced Au
Location Timmins, OntarioCanada
Project Status Producing(extensionunderdevelopment)
Resource Nocurrentreserve/resourceontheextension
ProductionGuidanceFY2018
55,000– 65,000 OzAu
• PlannedUSD$60Minvestmentondeepershafttoaccesslowerlevelsonextension
• 60,000metersofdrillingin2016• Planstoexpandproductioninminingcamp