Nomad Announces Preliminary Q2 2021 Deliveries and Provides Asset Updates
(in U.S. dollars unless otherwise noted)
MONTREAL, July 16, 2021 /CNW Telbec/ - Nomad Royalty Company Ltd. ("Nomad" or the "Company") (TSX: NSR) (OTCQX: NSRXF) is pleased to announce its preliminary gold and silver deliveries and sales from its royalty and stream interests for the second quarter of 2021:
The Company realized preliminary revenues(3) of $4.6 million and $14.2 million for the three and six-month periods ended June 30, 2021, respectively, resulting in preliminary cash operating margin(3)(4) of $4.0 million and $11.9 million, respectively. Additionally, following the acquisition of the interest in Compania Minera Caserones ("CMC") in May 2021, the Company estimates the gross dividend to be received in connection with CMC's Q2 2021 activities to approximate $0.4 million, reflecting two months since the economic effective date. For further clarity, numbers related to CMC are not included in the deliveries/sales table above.
Nomad has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS") including gold equivalent ounces, cash operating margin and cash costs of gold and silver sold. These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Preliminary Q2 2021 deliveries were lower than Q1 2021, mainly as of result of lower production from the Bonikro gold mine and the Mercedes mine. Additionally, Q1 2021 deliveries included the annual supplemental delivery related to the minimum annual silver delivery from the Mercedes mine, accounting for 1,998 gold ounces.
During the second quarter of 2021, there have been many positive updates from Nomad's streams and royalties. In particular, Nomad highlights the announcements by Barrick Gold Corporation ("Barrick") regarding the progression and potential initial production timeline at Robertson. In addition, Artemis Gold Inc. and Troilus Gold Corp. raised in excess of C$580 million to further advance the Blackwater project in British Columbia, and the Troilus gold project in Québec. Additionally, during the quarter, Nomad released an inaugural NI 43-101 technical report on the Blyvoor gold mine, detailing a 22-year mine life. Nomad is very encouraged from the operational progress at the Blyvoor gold mine and expects to see significant growth from the asset over the next quarters. The strategic process at the Woodlawn mine is still underway. On July 15, 2021, the operator has entered voluntary administration as it continues to seek a path to effect a restructuring and recapitalisation and ultimately restarting the Woodlawn mine.
ASSET UPDATES AND RECENT DEVELOPMENTS:
ROBERTSON RISING WITHIN CORTEZ MINE COMPLEX
As per Barrick, Robertson is currently being qualified as an Emerging Tier Two Gold Asset, defined as an asset with a reserve potential to deliver a minimum 10-year life, annual production of at least 250,000 ounces of gold and total cash costs per ounce of gold over the mine life that are in the lower half of the industry cost curve. Several positive milestones are upcoming, with the Notice of Intent planned for the second quarter of 2022, a Record of Decision for the second quarter of 2023, and most significant to Nomad, initial production during the fourth quarter of 2024, subject to permitting. A pre-feasibility study is currently being prepared with respect to the development of Robertson. It is expected that equipment and manpower from the Cortez operation will be transferred to Robertson once the Crossroads Open Pit mine is completed. The leach grade ore is to be processed through a High-Pressure Grinding Roll (HPGR) Crusher and the higher grades processed at the existing Pipeline oxide mill.
On the exploration front, Barrick stated that upside has been identified within the current surface oxide deposit at Robertson, and that additional material in the range of 50 to 60 million tonnes at grades between 0.3 g/t and 0.5 g/t gold could be projected at or near surface. Additionally, a new mineralized structure at Robertson parallel to the main ore controlling structure had been defined.
Additionally, the corridor between Robertson and the existing Pipeline operation has been identified as an area of strong interest for deep exploration. This represents a seven kilometer trend with the potential for larger multimillion ounce deposits. There are currently five areas of interest within this corridor.
MINING OPERATIONS CONTINUE TO RAMP UP AT BLYVOOR
BONIKRO COMMENCES STRIPPING ACTIVITIES AT PB5
BARRICK DRILLING AT SOUTH ARTURO MINE
TROILUS CONTINUES SUCCESSFUL EXPLORATION PROGRAM
BLACKWATER CONTINUES TO ADVANCE TOWARDS CONSTRUCTION DECISION
On July 15, 2021, Artemis Gold announced the approval of Mines Act Permit M-246 allowing for early construction works at the Blackwater gold project. The approval of the early works permit is the first step required for mine construction, allowing for the necessary site preparation and land clearing work to begin.
MOSS REVEALS CONSIDERABLE EXPLORATION GROWTH POTENTIAL
NOTICE OF Q2 2021 RESULTS RELEASE
Vincent Cardin-Tremblay, P. Geo., Vice President, Geology of Nomad Royalty is the "Qualified Person" as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects who has reviewed and approved the technical content of this news release.
Nomad Royalty Company Ltd.
Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Nomad expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this press release include statements with respect to the amount of dividend to be received by the Company from CMC; the timing for the completion of certain milestones on Robertson, including the initial annual production; the anticipated addition of deliveries from the Blyvoor Gold Mine; the expected life of the Blyvoor Mine, its annual production; the amount of ounces of gold in : (i) proven and probable mineral reserves, (ii) measured & indicated mineral resources, including mineral reserves, and (iii) inferred mineral resources mineral reserves, on the Blyvoor Gold Mine; the progress on the ramping-up of the Blyvoor Mine, including the timing to reach full production capacity; the advancement and development of the Blackwater gold project, the Troilus gold project and the potential resource expansion at Moss, and the impact and benefit Nomad will receive from its streams and royalties on the foregoing assets; and the timing of the strategic process or voluntary administration at Woodlawn, including the outcome of such strategic process and voluntary administration for Nomad. Although Nomad believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include the impossibility to acquire royalties, streams and to fund precious metal streams, gold prices, Nomad's royalty and stream interests, access to skilled consultants, results of mining operations, exploration and development activities for properties with respect to which Nomad holds a royalty or stream, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government or court approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations, market prices, continued availability of capital and financing and general economic, market or business conditions. Nomad cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the forward looking statements contained herein should carefully consider the above factors as well as the uncertainties they represent and the risks they entail. Nomad believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. Nomad undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.
SOURCE Nomad Royalty Company Ltd.
Company Codes: OTC-QX:NSRXF, Toronto:NSR, OTC-PINK:NSRXF
© 2021 PR Newswire. All Rights Reserved.