Nomad Royalty Company (TSX: NSR) CEO Vincent Metcalfe on Q3, Dividends, and Plans For 2021
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of Nomad Royalty, Mr. Vincent Metcalfe. Vince, how are you?
Vincent Metcalfe: Very good. Good morning.
Gerardo Del Real: Good morning. I know it's been a busy, busy quarter. You just reported your Q3 results and you also declared your fourth quarter 2020 dividends. I would love for you to provide an overview, as shareholders are starting to get accustomed to the portfolio and, frankly, you had another stellar quarter, right?
Vincent Metcalfe: Absolutely. Q3 was really, really good for us. We had record revenues and also most importantly record deliveries from our stream and royalty assets. I think that really is an important point to make. Our portfolio, which now consists of 12 different assets, which six of them are in production, is delivering. I think that's the important point to make and for investors to understand. We're a new company. The investors, the analyst community, everyone is getting, I would say, accustomed to our portfolio. What's important is for us to show growth and maturity in the producing assets and that's what we've seen over the last two quarters. We're very, very happy to see those deliveries. The strongest asset was probably Bonikro, which we were able to earn just under 1800 gold ounces, which right now is even better than we expected when we first completed the transaction back in May. It's currently running at a 120,000 run rate production per year, so very, very happy to see that. And then we had very good deliveries from RDM, which is operated by Equinox Gold and same thing we saw Mercedes and South Arturo, which are operative by Premier Gold and Nevada Gold Mine do quite well. And most importantly, we've seen also a lot of good news on the exploration front, within the entire portfolio. So very happy with that quarter. And yep.
Gerardo Del Real: You also secured a credit facility. I believe it's 50 million with the option to increase to 75 million, and you added to your board of directors, is that correct?
Vincent Metcalfe: Yeah, no, so we formally signed our credit facility. So we have, yeah, like $15 million initial capacity, which is expandable up to $75 million. So very important for us, a great tool for us. And when you add that to the $15 million that we have in the bank, it gives us around $90 million at a minimum to look at various assets and look at new transactions. So very, very happy to have that, and yes, added Susan Kudzman to the board. She comes from a risk background and she's going to be very helpful in helping us evaluate the certain risk and inherent risks that come within these financial instruments and also the mining side of things.
Gerardo Del Real: You also announced a dividend for Q4. Can you go over that briefly?
Vincent Metcalfe: Yeah, well that was something that was very important for us. You know, we want to make sure that we return cash to our shareholders. We want to return value. So there are two things, you could have a higher share price, which is a main focus of ours, but you also could have that steady dividend payment on a quarterly basis and that's what we've decided to do. So we are now paying a 2 cent per year dividend, which right now yields around a 1.6% yield, which is about double the average of the royalty and streaming sector, so very, very attractive for investors looking at getting exposure to gold and silver through a royalty model, but also getting that quarterly income. So that was something that from our point of view, when we were building this company, we wanted to really differentiate from our peers. And that dividend is always going to be a leading factor for us to make sure that, it's a great way for us to stay very disciplined in the type of assets that we add, because we have to think about that dividend.
Gerardo Del Real: You have 12 assets, I believe. I believe six are producing. You have the credit facility. You have the Coral Gold acquisition, which I believe closes here in the next few days. Are you still aggressively looking to add quality assets?
Vincent Metcalfe: Absolutely. We've already executed on two. So we've closed two acquisitions, the Troilus and the Moss Royalty. Coral Gold, we're hopefully closing next week on the 19th, and that one we really look forward to seeing how that develops. It doesn't happen often that you're able to buy a royalty, which is operated by the top mining operator in the world, Nevada Gold Mines and a top mining camp on the Cortez camp. So that asset for us, I think, is going to become a game changer down the road, gives us an incredible amount of optionality. We've seen some good drilling results from Nevada Gold Mines on the gold rush and on the southern part of the Cortez camp. So we are incredibly happy with that acquisition and hopefully within a week or so we'll be able to say that we are the proud owners of the Robinson Royalty.
Gerardo Del Real: Vincent, a lot going on. I know it's been an interesting couple of weeks to say the least, an interesting year, frankly. What can we expect as shareholders here in 2021? I know there's a lot of year left, but obviously 2021 is a year that people are starting to look forward to. What are you expecting?
Vincent Metcalfe: Well, for us, I mean, we were discussing, we've only been trading for five months. So something that's very important for us is to make sure that investors know about Nomad. A lot of people understand the royalty sector. They know about Franco or Wheaton Royal, Maverix, Metalla, Sandstorm, and Osisko. Nomad is the new kid on the block, so we got to make sure that everybody knows about it. What's interesting with that is that, based on the current valuation, we are very much undervalued. So it's a great entry point for investors. I think that's something that's very important for us to keep focusing on is making sure that investors know what Nomad is all about, what the portfolio is all about.
So that's one thing and then the second thing we're going to keep really focusing on is bringing new assets under management. So we're looking at writing some stream deals, buying more royalties, and we've been directly involved in this sector for the past six years, and we've never been this busy. So we are very excited about the prospects for the end of the year.
Gerardo Del Real: Vince, looking forward to having you back on. Thank you so much.
Vincent Metcalfe: Thank you very much. Looking forward to talking again.