MTA - Metalla Royalty & Streaming: Valuation Starting To Improve

2024-06-10 03:16:22 ET

Summary

• Metalla reported its Q1 results with revenue of $4.6 million from royalty/stream interests and fixed payments.
• The company expects a softer year in 2024 with guidance of 2,500 to 3,500 gold-equivalent ounces because of the absence of its major contributor, the Higginsville royalty.
• In this update, we'll dig into the Q1 results, recent developments, and how MTA stock's valuation stacks up vs. some of its larger royalty/streaming peers.

While the gold miners group is finally starting to claw back lost margins after three years of elevated inflationary pressures with help from the gold price, the royalty/streaming group continues to report record margins. Simultaneously, several of them have been bulking up their portfolios and adding assets at deep discounts to fair value. Unfortunately, while Metalla ( MTA ) has succeeded in growing its royalty portfolio, new additions haven't done much from a cash flow standpoint, and we've seen a mountain of dilution with shares going out the door at a deep discount to NAV as well, which has partially offset NAV/share growth. In this update, we'll dig into the Q1 results, recent developments, and how Metalla's valuation stacks up vs. some of its peers....

For further details see: