One of the great Equity.Guru success stories over the last few years has been that of Metalla Royalty and Streaming (MTA.V), an outfit that came out of the gates making big promises to follow in the footsteps of the $16 billion Franco-Nevada (FNV.T), and has nailed every milestone in the time since.
Today, while putting out financials for the most recent quarter, the company also announced it was increasing it’s monthly dividend, and moving up to a Tier-1 listing on the TSX Venture Exchange.
For some of our unruly vagabond readers who are hellbent on achieving max returns by chasing penny stock riche, this news may also announce Metalla is no longer interesting to them, because it’s now moving into the elite circles of real deals.
A tier-1 listing means the company has satisfied the exchange that it’s so legit, it can be trusted with a lighter regulatory hand.
Only companies with the most significant financial resources are eligible to join this tier. […] An advanced company issuer on the TSX Venture Exchange must be approved for Tier-One status by the exchange’s listing committee. The approval process includes an investigation of the reputation and past conduct of the company’s directors, officers, and stockholders. TSX also reviews the distribution and capital structure of the company’s stock.
Tier-One companies must hold at least $5 million in net tangible assets to be listed. Investment companies must maintain at least $10 million in assets. Also, companies must have enough cash in their treasury to carry out their stated business plan for 18 months following the listing. When a company has been approved to list with Tier-One status, it must issue a free trading public float of at least 1 million shares, each with an IPO value of at least $0.10. At least 250 different people must hold these shares, which make up a minimum of 20% of the total shares of the company.
So Metalla qualifies, based on its record of having developed a strong roster of mining royalties and streaming assets.
During the nine months ended February 28, 2018, the Company:
- shipped and provisionally invoiced 96,543 attributable silver ounces (“oz.”) at an average price of US$16.15 per oz. for US$1,559,312 or CAD$1,933,547 (see non-IFRS Financial Measures);
- generated cash margin of US$912,331 (equivalent to CAD$1,131,291) or US$9.45 per attributable silver oz. towards the Company’s operating cash flows from the Endeavor silver stream and New Luika Gold Mine stream held by Silverback Ltd.
- declared and paid a monthly dividend for January to April 2018 of $0.001 per share to the shareholders of the Company
- increased the monthly dividend rate effective June 2018 to $0.0015 per share to the shareholders of the Company
That’s right, monkeys, they’re paying a dividend, one of the few and the proud TSX-V listed companies to do so.
All this because they just keep pounding out more and more deals with large, medium, and small players, now numbering some 17 streams and royalties (but likely to increase before you read this is prior work is any guide).
These aren’t two-bit deals with rinky dink operators either. Partners include:
- Goldcorp (GG.NYSE)
- Glencore (GLEN.LON)
- Shanta Gold (SHG.LON)
- Panamerican Silver (PASS.T)
- Tahoe Resources (TAHO.NYSE)
- Osisko Mining (OSK.T)
- …and a host of Venture-listed operators in Orefinders (ORX.V), Sage Gold (SGX.V), Pelangio Exploration (PX.V), Detour Gold (DGC.V), Explor Resources (EXS.V), and Golden Peak Minerals (GP.V).
We knew them way back when all this was just an idea, and though our contract with them expires shortly, we’ll be keeping an eye on their progress and enjoying their continued success – as shareholders.
— Chris Parry
FULL DISCLOSURE: At the time of writing, Metalla Royalty and Streaming is an Equity.Guru marketing client. The author owns stock in the company and has for some time.