Nomad Royalty Company Ltd announces quarterly dividend as it reports record 1Q revenue

Nomad Royalty (TSX: NSR) Company Ltd has said it will pay a quarterly dividend of C $ 0.05 per share after reporting record revenue for the three months to March 31, 2022.

The gold & silver royalty company said revenue for the quarter increased to US $ 13.8 million from US $ 9.7 million a year earlier after it sold 6,604 gold-equivalent ounces (GEOs), up from 5,575 in 1Q 2021. Net income swung to US $ 2.7 million from a US $ 0.3 million loss in the comparable year-earlier period.

Nomad, which this week agreed to be acquired by Sandstorm Gold Ltd (TSX: SAND), also reported adjusted net income of US $ 2.3 million, up from US $ 1.9 million, and ended the quarter with US $ 21.5 million of cash.

READ: Nomad Royalty Company agrees to be acquired by Sandstorm Gold in C $ 755M all-stock transaction

“As recently announced, the friendly acquisition of Nomad by Sandstorm Gold builds on our vision to create a pure-play, highly diversified, cash flow focused royalty and streaming company with peer-leading growth,” Nomad chairman and CEO Vincent Metcalfe said in a statement.

“The first quarter of 2022 was a record quarter in terms of revenues and cash operating margin attributable to Nomad,” he added.

The company previously reported that its shareholders will receive 1.21 common shares of Sandstorm for each Nomad Royalty share held, which represents a premium of about 34% based on the 20-day volume-weighted average prices of both companies.

The C $ 755 million transaction, which is expected to close in the second half of 2022, is subject to Nomad and Sandstorm shareholder approvals as well as approvals from the TSX and the New York Stock Exchange, the Superior Court of Québec and the Canadian Competition Bureau , according to the company.

Nomad noted that its majority shareholders, Orion Mine Finance Fund II LP and Orion Mine Finance Fund III LP, have entered into irrevocable voting support agreements with Sandstorm, under which they agreed to vote their combined 61% of Nomad shares in favor of the transaction. Directors and officers of Nomad holding approximately 5% of the company’s stock have also entered into voting support agreements with Sandstorm, it added.

In a separate statement, Nomad said all of the nominees listed in its management information circular dated March 30, 2022 were overwhelmingly re-elected as directors at the company’s annual and special meeting of shareholders held virtually on May 5, 2022.

At the meeting, shareholders also reappointed PricewaterhouseCoopers LLP as Nomad’s auditor and adopted a resolution accepting, in an advisory, non-binding capacity, the company approach to executive compensation disclosed under section “Executive Compensation” in the company circular.

Nomad is a gold and silver royalty company that purchases rights to a percentage of the gold or silver produced from a mine, for the life of the mine.

The company owns a portfolio of 22 royalty, stream, and gold loan assets, of which eight are on currently producing mines. Nomad plans to grow and diversify its low-cost production profile through the acquisition of additional producing and near-term producing gold and silver streams and royalties.

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