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Nomad Royalty Company : Corporate News Releases

NOMAD ROYALTY COMPANY REPORTS STRONG INAUGURAL Q2 RESULTS

Montreal, Québec, August 7, 2020 – “Nomad’s inaugural quarterly results were very impressive, and the diversified portfolio showed its strength in minimizing volatility seeing minimal production curtailment, while maintaining exposure to rising commodity prices and generating strong cash flow,” stated Vincent Metcalfe, CEO.

“We are experiencing increasing levels of activity, we are extremely excited to keep growing the Nomad portfolio and further diversifying through future acquisitions and investment opportunities,” commented Joseph de la Plante, CIO.

Basis of Presentation for Q2 and YTD 2020 Financials:

On May 27, 2020, Nomad completed its reverse take-over comprised of a vend-in transaction of Orion Fund II Portfolio and OMF Fund III (Mg) Ltd. with Orion Mine Finance and a vend in transaction of certain assets with Yamana Gold Inc. The basis for Nomad’s financial statements is the continuation of Orion Fund II Portfolio, as the deemed acquirer of Nomad. The acquisition of OMF Fund III (Mg) Ltd. and the vend-in transaction with Yamana Gold Inc. have been accounted for as acquisition of assets. As per the vend-in agreements, Nomad had a right to all cash flow generated from the assets included in the vend-in agreements effective January 1, 2020.

As such, the Q2 and YTD 2020 financial information includes results for OMF Fund III (Mg) Ltd. (which holds the Bonikro gold stream) starting only from May 27, 2020 onwards. Orion paid $8.6 million to Nomad at the closing of the RTO Transaction. Of this amount, $5.5 million is reflected directly in the statement of income and comprehensive income of Nomad (related to Orion Fund II Portfolio), whereas $3.1 million is reflected in the statement of cash flows, investing activities as Cash acquired and relates to the cash operating margin generated for the revenues from the Bonikro gold stream. (Download PDF to read the full document)

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