Maverix Metals (MMX, MMX.TO) has released its outlook for 2022. The company expects to take delivery of the proceeds of 32,000 to 35,000 gold-equivalent ounces with a gross cash margin of approximately 90%. At a gold price of $1850 and a cash margin of $1650/oz, this means Maverix can look forward to a cash flow of $53-58M on the asset level basis.
The growth will mainly come from the Camino Rojo gold mine where commercial production appears to be around the corner. Maverix has a 2% NSR on this mine which is anticipated to produce 120,000 ounces of gold (which means the attributable gold production will be roughly 2,400 ounces per year). And Maverix may benefit from other projects that are being advanced as it for instance also owns a 5% NSR on the Gemfield deposit which is part of the Goldfield District which was just acquired by Centerra Gold (CG.TO). Centerra will now work towards an updated resource and a feasibility study which should both be completed next year.
Disclosure: The author has a long position in Maverix Metals. Please read our disclaimer.
