Metalla Royalty & Streaming: The Way to Play Gold and Silver?

Au Report

Source: Peter Epstein for Streetwise Reports 11/06/2017

Peter Epstein of Epstein Research interviews the newly appointed chairman of Metalla Royalty and Streaming, Lawrence Roulston, for an update on the company.

This interview of Lawrence Roulston, newly appointed non-executive chairman of Metalla Royalty & Streaming Ltd. (MTA:CSE; EXCFF:OTCQB) was conducted by phone and email in the week ended November 5th. Lawrence has 35 years of diverse hands-on experience. He recently founded WestBay Capital Advisors, providing business advisory and capital markets expertise to the junior and mid-tier sectors of the mining industry.

From 2014 to 2016, Roulston was president of Quintana Resources Capital, which provided resource advisory services for U.S. private investors, focused primarily on streaming transactions. Before Quintana, he was a mining analyst and consultant, as well as the editor of “Resource Opportunities,” an independent investment publication focused on the mining industry. He has graduate-level training in business and holds a B.Sc. in geology.

Regarding the appointment, detailed in a press release dated October 6, 2017, CEO Brett Heath commented as follows,

“Lawrence’s extensive knowledge of the resources industry, finance, and listed company governance makes him exceptionally well qualified to lead the Metalla Board in helping to deliver long-term, sustainable returns for the Company’s shareholders.”

Metalla has a lot going on, without further ado, here’s a timely update on the company.

Peter Epstein: Can you please give readers a high-level overview of what Metalla Royalty & Streaming does, and what assets it owns?

Lawrence Roulston: Metalla acquires royalties and streams on gold and silver deposits. A royalty is a fixed percent of the revenue produced from a mine; a stream is the right to purchase a portion of the metal output from a mine at a fixed price. Royalties and streams both offer upside exposure to increases in the metal prices, and to exploration success (they are typically for the life of the mine). Importantly, because royalties and streams are based on revenues, they do no expose investors to operating costs and to capital costs.

Metalla currently owns three cash-flowing assets, including a royalty on a gold mine in Ecuador; we have part of a stream that involves all the silver produced at a gold mine in Tanzania, for a fixed price of 10% of the silver spot price. We also have the right to buy all the silver byproduct from a big zinc mine in Australia, for a price of about $6 an ounce. We also hold gold-silver royalties on three development-stage projects, two of which are in Canada.

We expect those development projects to generate cash in the next one to five years: Two involve extensions of existing mines and one development asset that will have ore trucked to a nearby processing plant. All of them are operated by large producers. We own another dozen royalties on earlier stage projects, mostly in Canada.

PE: How did you find Metalla Royalty & Streaming, …read more

Source:: The Gold Report