Nova Royalty Corp.

For Q4 2022, Nova reported revenue of C$0.5 million versus C$0.5 million in Q4 2021. Net loss was C$1.9 million, or C$0.02 per share, compared with a loss of C$5.2 million, or C$0.06 per share, in Q4 2021. For the full year 2022, revenue was C$2 million versus C$0.7 million in 2021, and net cash used in operating activities was C$2.1 million versus C$4.5 million in 2021. Aranzazu sold 13.8 million pounds of copper equivalent in Q4 2022, up 14% year over year, and 52.3 million pounds for full-year 2022, up 16% year over year. On the balance sheet, cash was C$1.1 million at quarter-end, rising to about C$3.3 million at the time of the call after a C$1.5 million ATM issuance, a C$1.5 million Beedie draw, and another C$1.5 million ATM issuance post-quarter-end. Management reiterated that the Beedie facility’s gross size is C$25 million, with C$15.5 million still available. Looking ahead, Aura said Aranzazu expects 2023 production of approximately 101,000 to 116,000 gold equivalent ounces, roughly in line with 2022.

Alex Tsukernik framed 2022 as a strong year for portfolio growth, saying Nova now owns royalties on five of the top 10 open-pit copper development projects in the Americas, versus two at the start of 2022. He stressed that Nova is building for the long term, with a focus on Tier 1 copper assets, relationship-driven dealmaking, and adding both development-stage and near-term cash-flowing royalties. His tone was optimistic and patient, but he repeatedly emphasized that large copper projects will take years and that the company is positioning itself for a multi-decade value creation runway.

Hashim Ahmed said Nova’s Q4 2022 revenue was C$0.5 million and full-year revenue was C$2 million, mainly from a full year of production from the Aranzazu NSR royalty. He noted Q4 net loss of C$1.9 million, with C$1.5 million of that from non-cash items, and full-year operating cash use of C$2.1 million. On liquidity, he cited a C$1.1 million quarter-end cash balance, about C$3.3 million cash at the call date, C$9.5 million drawn on the Beedie facility, and C$15.5 million remaining available, saying that together with Aranzazu revenue it covers near-term liquidity needs.

Analysts focused on the Beedie facility size, the currency of future royalty payments at Taca Taca and Josemaria, mine life at Aranzazu, and how Nova plans to fund acquisitions if the share price stays weak. Management clarified the Beedie facility is C$25 million gross, with C$9.5 million drawn and C$15.5 million available. Tsukernik said Taca Taca royalties are in USD, while Josemaria could be in dollars or pesos and still needs clarification with the operator; he also said material acquisitions would likely be funded with equity, but the company wants to stay disciplined on dilution and prefers to bring in long-term supportive investors.