Ahead of Thursday's opening bell, Maverix Metals (TSX-V:MMX) announced its operating and financial results for the second quarter ended June 30. The Vancouver-based firm is a gold royalty and streaming company, meaning it puts its cash upfront for mining businesses to develop projects in exchange for a cut of future metal sales.
Q2 was fruitful for Maverix, with record revenue of $8.48 million reported. That compared to $4.0 million in the year prior quarter. For the first six months of 2018, Maverix has revenue of $15.25 million, nearly doubling the $7.82 million from the same period in 2017. The six-month revenue was broken down into $2.89 million in gold sales and $12.35 million in royalties.
The record revenue came on the back of a record quarter for gold equivalent ounces sold of 5,017 ounces.
Depletion, an operating expense factor, rose significantly, increasing cost of sales and cutting into gross profit. Still, Maverix posted gross profit of $3.06 million for the quarter and $6.07 million for the first half, up from $1.93 million and $3.82 million, respectively, last year.
As such, the company swung to a net loss of $559,000 for the quarter, compared to $463,000 in net profit a year earlier. Maverix remained profitable for the first six months of 2018 at $994,000, which was down from earnings of $1.38 million in the first six months of 2017.
Adjusted net income, which doesn't include certain one-time items, was reported at $0.4 million.
The quarter also included Maverix completing the acquisition of a portfolio of 51 royalties from Newmont Mining (NYSE:NEM) and its affiliates for consideration of 60 million common shares of MMX, 10 million common share purchase warrants and a gross cash payment of $17 million U.S.
Looking ahead, Maverix provided guidance of attributable gold equivalent production of between 18,000 – 19,000 ounces for 2018, a 50% – 60% increase over 2017.
Shares of MMX edged ahead by 0.57% on Thursday to close at $1.75. At that price, the stock is down 5.4% so far in 2018 after having climbed to a 52-week high of $2.35 last month.
