Metalla Royalty & Streaming .(MTA) - 2025 Q2 - Quarterly Report

Financial Performance - Total revenue from royalty interests for the three months ended June 30, 2025, was $2,695,000, a significant increase from $875,000 in the same period of 2024, representing a growth of 208%[4] - Gross profit for the six months ended June 30, 2025, was $3,361,000, compared to $846,000 for the same period in 2024, indicating a substantial increase of 297%[4] - The net loss for the six months ended June 30, 2025, was $2,467,000, an improvement from a net loss of $3,223,000 in the same period of 2024, reflecting a reduction of 23%[4] - Royalty revenue for the six months ended June 30, 2025, reached $4.413 million, compared to $2.111 million in 2024, marking a 109% increase[37] Cash and Liquidity - Cash and cash equivalents as of June 30, 2025, increased to $9,917,000 from $9,717,000 as of December 31, 2024, showing a growth of 2%[6] - The company expects that its cash balance and available credit facilities will be sufficient to fund operations for at least twelve months from the date of the report[11] - The Company believes its capital resources are sufficient for its present needs for at least the next twelve months[54] Assets and Liabilities - The company's total assets as of June 30, 2025, were $267,807,000, slightly down from $268,677,000 as of December 31, 2024, a decrease of 0.3%[2] - Total current liabilities decreased to $3,256,000 as of June 30, 2025, from $13,881,000 as of December 31, 2024, a reduction of 77%[2] - The total financial liabilities decreased to $15.277 million as of June 30, 2025, down from $16.114 million at the end of 2024, indicating improved financial health[49] Shareholder Information - Share capital increased to $309,064,000 as of June 30, 2025, from $307,848,000 as of December 31, 2024, reflecting an increase of 0.4%[8] - The weighted average number of shares outstanding for the six months ended June 30, 2025, was 92,432,352, compared to 91,258,802 for the same period in 2024[4] - The company had 92,524,776 Common Shares issued and outstanding as of June 30, 2025, an increase from 92,076,438 at the end of 2024[40] Expenses and Financial Charges - General and administrative expenses for the three months ended June 30, 2025, totaled $1.067 million, up from $987,000 in 2024, reflecting an increase of 8%[38] - Share-based payments expense for the six months ended June 30, 2025, was $0.9 million, compared to $0.7 million in the same period of 2024, reflecting a 29% increase[45] - The Company recognized finance charges of $0.1 million and $0.2 million for the three and six months ended June 30, 2025, respectively, related to costs associated with the loan facility[34] Credit Facilities and Debt - The Company completed a revolving credit facility agreement of $40.0 million with an accordion feature for an additional $35.0 million, allowing for a total potential availability of $75.0 million[21] - As of June 30, 2025, the amount drawn on the revolving credit facility was $13.1 million, with an availability of $26.9 million remaining[24] - The Company fully repaid the amended and restated convertible loan facility on June 24, 2025, which included a principal repayment of C$16.4 million and C$0.7 million in accrued interest and standby fees[32] - Loans payable principal and interest payments total $16.297 million, with $1.053 million due within one year[59] Risk Management - The Company has not hedged its exposure to currency fluctuations, with a potential pre-tax income impact of less than $0.1 million from a 1% change in the USD against other currencies[57] - The Company has no significant concentration of credit risk, primarily holding cash deposits with a Canadian chartered bank[55] - The Company manages liquidity risk by monitoring forecasted and actual cash flows to meet its financial obligations[56] - The Company operates in multiple countries, exposing it to foreign exchange risk without hedging strategies in place[57] Accounting and Reporting - The Company is currently assessing the impact of new accounting standards effective from January 1, 2026, and January 1, 2027, which may affect financial reporting[16] - There were no transfers between the levels of the fair value hierarchy during the six months ended June 30, 2025[51] - The fair values of the Company's loans payable approximate their carrying values due to comparable market interest rates[53] Other Financial Information - The Company recorded a $0.7 million loss on extinguishment of the loan facility upon its retirement, reflecting the difference between the carrying amount and the amount paid[33] - The Company’s historical cost of producing, development, and exploration assets as of June 30, 2025, totaled $254,247,000, with accumulated depletion and impairments amounting to $15,874,000[18] - The Company’s allowance for doubtful accounts remained at $Nil as of June 30, 2025, indicating no past due receivables[17] - As of June 30, 2025, total accounts receivable increased to $2,765,000 from $2,516,000 as of December 31, 2024, representing a growth of 9.9%[17] - The Company reported royalty and stream receivables of $2,573,000 as of June 30, 2025, up from $2,253,000 at the end of 2024, indicating an increase of 14.2%[17] - The company recorded total related party expenses of $1.024 million for the three months ended June 30, 2025, compared to $701,000 in 2024, representing a 46% increase[47] - As of June 30, 2025, total commitments amount to $19.714 million, including $4.470 million due within one year[59] - The Company has $2.5 million in payments related to the acquisition of royalties and streams, payable within 90 days upon certain conditions[60]