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Nomad Royalty Company Ltd
Symbol NSR
Shares Issued 566,220,980
Close 2021-01-21 C$ 1.05
Recent Sedar Documents

Nomad Royalty delivers 16,607 oz AuEq in 2020

2021-01-21 18:07 ET - News Release

Mr. Vincent Metcalfe reports

NOMAD ANNOUNCES Q4 2020 DELIVERIES & PROVIDES ASSET UPDATES

Nomad Royalty Company Ltd. has released the results of its preliminary gold and silver deliveries and sales from its royalty, stream and gold loan interests (in U.S. dollars unless otherwise noted).

                                     PRELIMINARY METAL DELIVERIES
  
                                                             Metal deliveries attributable to Nomad

Ounces                                        Q1 2020       Q2 2020       Q3 2020       Q4 2020          2020

Gold -- Premier Gold prepay loan                2,450         2,450           900           900         6,700
Gold -- royalty and stream interests (1)        1,677         1,686         2,200         1,846         7,409
Silver -- stream interests                     43,963        56,254        52,616        64,568       217,401
Gold equivalent ounces (2)                      4,597         4,654         3,769         3,587        16,607

                                      PRELIMINARY METAL SALES

                                                        Metal sales attributable to Nomad  

Ounces                                       Q1 2020      Q2 2020      Q3 2020      Q4 2020         2020

Gold -- Premier Gold prepay loan               2,450        2,450          900          900        6,700
Gold -- royalty and stream interests (1)       1,677        1,521        2,365        1,846        7,409
Silver -- stream interests                   127,946       56,254       52,616       64,568      301,384
Gold equivalent ounces (2)                     5,493        4,491        3,933        3,587       17,504

The company realized preliminary revenues of $6.8-million during the three-month period ended Dec. 31, 2020, resulting from 3,587 gold equivalent ounces (2) sold. Preliminary revenues for the year ended Dec. 31, 2020, and cash acquired from the Bonikro gold stream as per the vend-in transactions, closed on May 27, 2020, totalled $29.9-million.

As per the vend-in transactions closed on May 27, 2020, Nomad was entitled to payments made in respect of the acquired assets since Jan. 1, 2020. As such, the preliminary gold and silver deliveries and sales for the three-month periods ended March 31, 2020, and June 30, 2020, and the year ended Dec. 31, 2020, include payment received on the closing of the vend-in transactions.

Asset updates and recent developments

Robertson timeline to first production announced: On Nov. 20, 2020, Barrick Gold Corp. announced during its investor day presentation that Robertson was now included within the five-year plan at Cortez, with first production expected in 2025. As per current guidance, Cortez is forecasted to produce 750,000 to 850,000 ounces annually from 2021 to 2025. Additionally, on the exploration front, Barrick will conduct drilling programs at Robertson and initiate earlier-stage generative exploration work on the Pipeline-Robertson corridor.

Nomad owns a sliding scale 1- to 2.25-per-cent net smelter return (NSR) royalty on all claims that form part of the Robertson property.

Blyvoor operations ramping up: Blyvoor Gold Capital Pty. continues to ramp up mining operations at Blyvoor. Blasting activities are now fully operational and taking place daily. The process plant construction is complete, and ore processing has commenced. A technical report in connection with the Blyvoor mineral resource is expected to be completed in the first half of 2021.

Nomad owns a 10-per-cent gold stream on the Blyvoor gold mine on the first 160,000 ounces of gold production within a calendar year, and 5 per cent on any additional gold production within the calendar year. Following the delivery of 300,000 ounces of gold to Nomad under the agreement, the stream percentage shall be 0.5 per cent on the first 100,000 ounces of production within a calendar year until 10.32 million ounces of gold production at the Blyvoor gold mine. Nomad will make continuing payments of $572 per oz for each ounce of gold delivered under the contract.

Mercedes acquired by Equinox Gold Corp.: On Dec. 16, 2020, Equinox Gold announced the friendly acquisition of Premier Gold Mines Ltd. Equinox will become the operator of the Mercedes mine and has indicated there is expansion potential to increase production to 80,000 to 90,000 ounces of gold annually. Equinox operates seven mines globally, is very well capitalized and is led by a reputable management team, which it anticipates will have the ability to drive further productivity increases at the mine site.

Nomad owns a 100-per-cent silver stream on the silver production from the Mercedes mine and 100 per cent on the silver production from the South Arturo mine attributable to Premier (40-per-cent attribution), until a total of 3.75 million ounces of refined silver have been delivered, after which the stream percentage reduces to 30 per cent. The silver stream is subject to minimum annual delivery of 300,000 ounces of refined silver until the cumulative delivery of 2.1 million ounces. Nomad will make continuing payments equal to 20 per cent of the prevailing silver market price for each ounce of silver delivered under the contract.

South Arturo silver resource growth

Nevada Gold Mines had another exceptional year with production exceeding budget by over 30 per cent. The strong performance was driven by higher production rates that averaged 694 tonnes per day processed. On Jan. 19, 2021, Premier published a preliminary feasibility study on South Arturo, which outlined an 18-year mine life and was based on a mineral resource estimate at Dec. 1, 2020, which included Nomad attributable reserves of 1.9 million ounces of silver (3.8 million tonnes at 15.23 grams per tonne), measured and indicated resources of 4.0 million ounces of silver (20.0 Mt at 6.19 g/t), and an inferred mineral resource of 1.8 million ounces of silver (10.1 Mt at 5.47 g/t). In 2020, drill programs were completed at El Nino, with initial results suggesting the potential to expand underground resources and extend the mine life. A new mineral resource estimate will be completed in 2021 following receipt of all 2020 drilling results.

Moss expands drill program: Northern Vertex Mining Corp. is conducting an aggressive exploration program with three drill rigs on site to expand the resource with the aim at extending the mine life and testing district-scale targets. Recent results intersected high grade at the Ruth Vein target, widespread mineralization within the Gold Bridge and West Extension targets located 1.5 kilometres west of the pit, and similar Moss pit mineralization at the West target. Phase 2 drilling program was initiated in November, 2020, and will extend to February, 2021, and phase 2 will focus on the high-grade Ruth Vein target, resource infill at Gold Bridge, and target new discoveries within extensive stockwork gold and silver mineralization both on strike and at depth at the Moss mine. The combined phase 1 and 2 drilling programs will total 32,000 metres. In addition to the multiphased exploration program, Northern Vertex continued to implement a number of new initiatives to further optimize operations and reduce costs at the Moss mine.

Nomad owns a 1- to 3-per-cent NSR royalty on the Moss property.

Troilus Gold Corp. expands Southwest zone: In early 2021, Troilus reported great results on the Southwest zone, including a 200-metre stepout hole, which intersected high-grade gold-bearing mineralization between 50 metres and 450 metres from surface, and was located outside of the National Instrument 43-101 mineral resource envelope and the open pit proposed in the August, 2020, preliminary economic assessment. For winter 2021, Troilus is implementing a 7,000-metre-per-month drilling program with the objective of expanding the mineral resource estimate at the Southwest zone, definition drilling in the Z87 and J zone, and geotechnical drilling in support of the prefeasibility study. A prefeasibility study is expected to be published later in 2021, and an environmental impact study is targeted for early 2022.

Nomad owns a 1-per-cent NSR royalty on the Troilus property.

Notes

(1) Preliminary gold deliveries and sales from royalty and stream interests include the gold equivalent ounces of cash settled amounts for the RDM and Moss net smelter return royalties.

(2) The company's royalty and stream revenues are converted to gold equivalent ounces by dividing the gold royalty and stream revenues for a specific period by the average realized gold price per ounce for the same respective period. Silver earned from royalty and stream agreements is converted to gold equivalent ounces by multiplying the silver ounces by the average silver price for the period and dividing by the average gold price for the period. The gold equivalent ounces attributable to Nomad include the revenues, net of cost of sales from the Bonikro gold stream from Jan. 1 to May 27, 2020, reflected in the consolidated statement of cash flows and investing activities as cash acquired for the three-month period ended June 30, 2020.

Qualified person

Vincent Cardin-Tremblay, PGeo, vice-president, geology, of Nomad Royalty, is the qualified person as defined by National Instrument 43-101, who has reviewed and approved the technical content of this news release.

About Nomad Royalty Company Ltd.

Nomad Royalty is a gold and silver royalty company that purchases rights to a percentage of the gold or silver produced from a mine for the life of the mine. Nomad owns a portfolio of 14 royalty, stream and gold loan assets, of which six are on currently producing mines. Nomad plans to expand and diversify its low-cost production profile through the acquisition of additional producing and near-term-producing gold and silver streams and royalties.

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