Gold-focused royalty and streaming firm Maverix has updated its 2022 outlook to exclude production from the Omolon mine, in Russia, from its guidance.
Excluding any contribution from Omolon, Maverix expects 28 000 to 31 000 gold-equivalent ounces (GEOs), compared with its previously guided 32 000 to 35 000 GEOs.
Although Polymetal has achieved its second-quarter production targets and Omolon delivered 43 000 oz of gold and 100 000 oz of silver, international sanctions have impacted on sales, procurement and logistics. Polymetal had to reduce its shipments in the second quarter, creating a gap, which the miner said it planned to close in the third quarter as it ramped up exports to Asian markets.
The company says it is working with Polymetal to effect payment of royalties from Omolon in a way that does not breach any relevant sanctions. At June 30, Maverix's accounts receivable related to its Omolon royalty interest is $4.4-million.
The company has a 2.5% gross revenue royalty on Omolon.
“Given the ongoing uncertainty relating to our Omolon royalty, we believe it is prudent to exclude Omolon GEOs from our outlook for the second half of 2022,” says Maverix CEO Dan O’Flaherty.
He reports that Maverix’s portfolio of 125 royalties and streams had a steady second-quarter and welcomed Orla Mining’s declaration of commercial production at its Camino Rojo mine, in Mexico. Maverix has a 2% net smelter return royalty.
Maverix reported June quarter revenue of $14.2-million, net income of $2.75-million and adjusted income of $4-million.
The board declared a quarterly dividend of $0.0125 a share.