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After combining Metalla Royalty & Streaming (TSX-V:MTA) with Nova Royalty in a C$500 million deal, the new business boasts a portfolio of 105 royalties and streams, as well as long asset life.
At the Gold Forum Americas 2023 held in Colorado Springs, CO, Metalla’s president and CEO, Brett Heath, spoke to Kitco about the new company and the royalty space. The conversation took place mid-September.
Heath said Metalla and Nova are both focused on “very high-quality, long sustainable development assets”. The combined portfolio of 105 royalties and streams has “upwards of two decades of sustainable growth being advanced by top-tier operators in the mining sector, including First Quantum Minerals, Newmont, Hudbay Minerals, Agnico Eagle, Barrick, BHP, Glencore, Lundin Mining, Teck Resources, IAMGOLD, and Equinox Gold,” reads a Sept. 8 news release.
“Putting these two companies together makes the pro-forma business just absolutely spectacular,” said Heath, noting the top 10 assets will have a peer-leading 20-year mine life, with their operators averaging around $13 billion of market capitalization.
“The portfolio has underpinned low-risk, sustained growth ahead of it and that was really the genesis of the deal.”
Heath is forecasting a 10-fold production increase, from around 3,000 gold-equivalent ounces to 30,000 by the end of the decade.
Heath is bullish on copper due to the structural deficit expected to plague the market starting in 2025 and last at least 10 years. The tight fundamentals are driving consolidation.
“It’s the biggest M&A frenzy for high-quality copper development assets that we’ve ever seen,” he said.
Kitco Mining’s coverage of the Gold Forum Americas 2023 was sponsored by Metalla Royalty & Streaming Ltd.
0:00 Metalla-Nova deal
2:25 Key assets
3:36 Combined cash flow
5:50 Exposure to copper
6:44 Competitive environment
10:09 Growth model
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