In a news release, Nomad Royalty Company Ltd. (NSR:TSX; NSRXF:OTCQX) announced operating and financial results for the third quarter of 2020 ended September 30, 2020.
Nomad Royalty's CEO and Chair of the Board of Directors Vincent Metcalfe commented, "We had a strong third quarter with record revenue of $7.6 million. Importantly, revenue from our streams and royalties were $5.9 million, representing an increase of 100% quarter over quarter and demonstrating the strength of Nomad's diversified portfolio. Given our strong free cash flow outlook, during the third quarter we were pleased to announce our inaugural dividend policy. The strong gold environment will allow us to continue to generate strong free cash flow while reinvesting in new opportunities that will support further growth and returns to shareholders."
The firm stated that Q3/20 revenues increased to $7.6 million, up from $4.3 million in Q3/19. The company reported that in Q3/20 it earned 3,100 oz gold and 52,616 oz silver, compared to 2,450 oz and 35,587 oz respectively in Q3/19.
Nomad Royalty posted net income of $0.5 million and adjusted net income of $2.0 million in Q3/20, compared to net income of $0.4 million and adjusted net income of $3.1 million in Q3/19.
The company also announced and declared its first dividend payment of $2.0 million in the quarter, which was paid on October 15, 2020. The company advised that it will pay its second quarterly dividend of CA$0.005 per common share on January 15, 2021, to shareholders of record as of the close of business on December 31, 2020.
Nomad Royalty stated that 100% of Q3/20 revenue was sourced from gold and silver. The company's portfolio strategy is to maintain a level of at least 90% of revenue to be derived from precious metals, primarily gold and silver, with no more than 10% coming from other commodities. The firm indicated that in Q3/20, 48% of revenues were sourced from the Americas, 50% from Africa and 2% came from Australia.
The company reported on some of the operating highlights in the latest quarter and noted that its shares commenced trading on the OTCQX® Best Market under the ticker NSRXF on July 13, 2020.
The firm added that at the end of July it finalized the purchase of a 1% NSR royalty on the Troilus Gold Project in Québec for $1.9 million and the issuance of 5,769,231 units.
The company additionally secured a $50 million credit facility in August with the option to raise that amount to $75 million.
The firm also commented at length as to the status of operations at several properties where it has an ownership interest. The company owns a portfolio of 12 royalty, stream and gold loan assets, of which 6 are on currently producing mines.
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