40-F

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM 40-F

¨	Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934
	or
x	Annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended December 31, 2020

Commission File Number 001-38934

Maverix Metals Inc.(Exact name of Registrant as specified in its charter)

Canada	1040	N/A
(Province or other jurisdiction of incorporation or organization)	(Primary Standard Industrial Classification	(I.R.S. Employer Identification Number)
	Code Number)

Suite 575, 510 Burrard Street
Vancouver, British Columbia V6C 3A8
Canada
(604) 449-9290
(Address and telephone number of Registrant’s principal executive offices)

Cogency Global Inc.

10 E 40^th Street, 10th Fl

New York, New York 10016

800-221-0102

(Name, address (including zip code) and telephone number (including
area code) of agent for service in the United States)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, no par value	MMX	NYSE American LLC

Securities registered pursuant to Section 12(g) of the Act: None.

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

For annual reports, indicate by check mark the information filed with this Form:

x Annual information form x Audited annual financial statements

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report: As of December 31, 2020, there were 140,488,309 common shares outstanding.

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). x Yes ¨ No

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company x

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ¨

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ¨

EXPLANATORY NOTE

Maverix Metals Inc. (the “Company”, “Maverix”, “Maverix Metals” or the “Registrant”) is a Canadian issuer that is permitted, under the multijurisdictional disclosure system adopted in the United States, to prepare this Annual Report on Form 40-F pursuant to Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), in accordance with Canadian disclosure requirements. The Company is a “foreign private issuer” as defined in Rule 3b-4 under the Exchange Act. Equity securities of the Company are accordingly exempt from Sections 14(a), 14(b), 14(c), 14(f) and 16 of the Exchange Act pursuant to Rule 3a12-3.

FORWARD LOOKING STATEMENTS

This Annual Report, including the exhibits attached hereto and incorporated herein may contain “forward-looking statements” within the meaning of applicable Canadian and United States securities laws.  All statements other than statements of historical fact are forward-looking statements. The forward-looking statements contained in this Annual Report are made only as of the date hereof.  The forward-looking statements contained in the exhibits incorporated by reference into this Annual Report are made only as of the respective dates set forth in such exhibits.  The Company does not have, or undertake, any obligation to update or revise any forward-looking statements whether as a result of new information, subsequent events or otherwise, unless otherwise required by law.

Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information included or incorporated by reference in this Annual Report includes disclosure regarding the gold and other metal purchase agreements (“Streams” and each individually, a“Stream”) of Maverix, royalty payments to be paid to Maverix by property owners or operators of mining projects pursuant to net smelter returns (“NSR”), gross revenue royalty (“GRR”), and other royalty agreements (“Royalties” and individually a “Royalty”), the future outlook of Maverix and the mineral reserves and resource estimates for the La Colorada mine.

Forward-looking statements are based on a number of material assumptions, which management of Maverix believe to be reasonable, including, but not limited to, the continuation of mining operations from which Maverix will receive Royalty payments or in respect of which Maverix will purchase precious metals , that commodity prices will not experience a material adverse change, mining operations that underlie Royalties or Streams will operate in accordance with disclosed parameters and such other assumptions as may be set out or incorporated by reference herein.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Maverix to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which Maverix will receive Royalty payments or from which it will purchase precious metals (Streams), and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine construction and operations, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans are refined; problems related to the ability to market precious metals; industry conditions, including commodity price fluctuations, interest and exchange rate fluctuations; interpretation by government entities of tax laws or the implementation of new tax laws; the volatility of the stock market; competition; risks related to the Company’s dividend policy; epidemics, pandemics or other public health crises, including the global outbreak of the novel coronavirus (referred to as COVID-19); as well as those factors discussed in the section entitled “Risk Factors” contained in Maverix’s most recent Annual Information Form for the year ended December 31, 2020 (the “AIF”) attached hereto as Exhibit 99.1 and incorporated by reference herewith.

Although Maverix has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results to not be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

DIFFERENCES IN UNITED STATES AND CANADIAN REPORTING PRACTICES

The Company is permitted, under the multijurisdictional disclosure system adopted by the United States, to prepare this Annual Report in accordance with Canadian disclosure requirements, which are different from those of the United States. The Company prepares its financial statements, which are filed as Exhibit 99.2 to this Annual Report in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and the audit was subject to Canadian and United States auditing and auditor independence standards. Accordingly, the Company’s financial statements may not be comparable to financial statements of United States companies.

RESOURCE AND RESERVE ESTIMATES

The exhibits incorporated by reference into this Annual Report have been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws.  Unless otherwise indicated, all resource and reserve estimates have been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) - Definition Standards adopted by CIM Council (the “CIM Definition Standards”) which were incorporated by reference in the Canadian Securities Administrators’ National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) which is a rule developed by Canadian Securities Administrators that established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.  The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with NI 43-101 and the CIM standards.  These definitions differ from the definitions in SEC Industry Guide 7 (“SEC Industry Guide 7”) under the Securities Act. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price must be used in any reserve or cash flow analysis, and the primary environmental analysis or report must be filed with the appropriate governmental authority. Further, under SEC Industry Guide 7, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Reserve estimates contained in documents incorporated by reference into this Annual Report may not qualify as “reserves” under SEC Industry Guide 7. In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101 and the CIM standards; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC.  Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.  “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility.  It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category.  Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases.  Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable.  Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures.

SEC Industry Guide 7, the existing disclosure standard for the SEC, will be replaced by new sub-part 1300 of Regulation S-K under the United States Securities Act of 1933, as amended, which will be mandatory for most issuers subject to U.S. reporting standards for the annual report for the first fiscal year beginning on or after January 1, 2021. None of the reserve or resource estimates presented in this Annual Report have been prepared in accordance with the new SEC disclosure standards.

Accordingly, information contained in this Annual Report and the portions of documents incorporated by reference herein containing descriptions of the Company’s interests in mineral deposits held by third party mine operators may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

CURRENCY

Unless otherwise indicated, all dollar amounts in this Annual Report are in United States dollars. The exchange rate of Canadian dollars into United States dollars, on December 31, 2020, based upon the daily exchange rate as quoted by the Bank of Canada was U.S.$1.00 = Cdn$1.2732.

ANNUAL INFORMATION FORM

The Company’s AIF for the fiscal year ended December 31, 2020 is filed as Exhibit 99.1 to this Annual Report and is incorporated by reference herein.

AUDITED ANNUAL FINANCIAL STATEMENTS

The audited consolidated financial statements of the Company for the years ended December 31, 2020 and December 31, 2019, including the report of the independent auditor thereon, are filed as Exhibit 99.2 to this Annual Report, and are incorporated by reference herein.

MANAGEMENT’S DISCUSSION AND ANALYSIS

The Company’s Management Discussion and Analaysis for the year ended December 31, 2020 is filed as Exhibit 99.3 to this Annual Report and is incorporated by reference herein.

CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of the end of the period covered by this Annual Report, the Company carried out an evaluation, under the supervision of the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act). Based on that evaluation, the Company’s CEO and CFO have concluded that, as of the end of the period covered by this Annual Report, the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in reports that it files or submits to the Securities and Exchange Commission (“SEC”) under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in applicable rules and forms, and (ii) accumulated and communicated to the Company’s management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Management Report on Internal Control over Financial Reporting

Management's Annual Report on Internal Control over Financial Reporting for the fiscal year ended December 31, 2020, is included herein as part of Exhibit 99.3.

Attestation Report of the Registered Public Accounting Firm

In accordance with the United States Jumpstart Our Business Startup Act (the “JOBS Act”) enacted on April 5, 2012, the Company qualifies as an “emerging growth company” (an “EGC”), which entitles the Company to take advantage of certain exemptions from various reporting requirements. Specifically, the JOBS Act defers the requirement to have the Company’s independent auditor assess the Company’s internal controls over financial reporting under Section 404(b) of the Sarbanes-Oxley Act. As such, the Company is exempted from the requirement to include an auditor attestation report in this Annual Report for so long as the Company remains an EGC, which may be for as long as five years following its initial registration in the United States.

Changes in Internal Control over Financial Reporting

During the year ended December 31, 2020, no changes were made to the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

CORPORATE GOVERNANCE

The Company’s Board of Directors (the “Board”) is responsible for the Company’s corporate governance and has a separately designated standing Audit Committee, Nominating and Governance Committee and Compensation Committee. The Board has determined that all of the members of the Audit Committee, Nominating and Governance Committee and Compensation Committee are independent based on the criteria for independence prescribed by Section 803 of the NYSE American LLC Company Guide (“Company Guide”) and Section 805(c) of the Company Guide, as applicable.

Nominating and Governance Committee

The Nominating and Governance Committee is responsible for, among other things, providing a focus on governance that will enhance the Company’s operations, establish procedures for assessing the Company’s performance and make recommendations to the Board regarding the Company’s overall effectiveness and to establish and supervise the process for identifying, recruiting, appointing, re-appointing, and providing ongoing development for, directors.

The Company’s Nominating and Governance Committee is comprised of J.C. Stefan Spicer (Chair), Geoff Burns and Dr. Christopher Barnes, all of whom are independent based on the criteria for independence prescribed by Section 803A of the Company Guide.

Compensation Committee

Compensation of the Company’s CEO and all other executive officers is recommended to the Board for determination by the Compensation Committee. The Company’s Compensation Committee is comprised of Geoff Burns (Chair), Dr. Christopher Barnes and David Scott, all of whom are independent based on the criteria for independence prescribed by Section 803A and Section 805 of the Company Guide.

AUDIT COMMITTEE

The Board of Directors has a separately designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Exchange Act and Section 803B of the Company Guide. The Company’s Audit Committee is comprised of Brian Penny (Chair), J.C. Stefan Spicer and Dr. Christopher Barnes, all of whom are independent based on the criteria for independence prescribed by Rule 10A-3 of the Exchange Act and Section 803B(2) of the Company Guide. All three members of the Audit Committee are financially literate, meaning they are able to read and understand the Company’s financial statements and to understand the breadth and level of complexity of the issues that can reasonably be expected to be raised by the Company’s financial statements. The Audit Committee meets the composition requirements set forth Section 803B(2) of the Company Guide.

The members of the Audit Committee are appointed by the Company’s Board annually. Each member of the Audit Committee will remain on the committee until the next annual meeting of shareholders after his or her appointment, unless otherwise removed or replaced by the Board of Directors at any time.

The full text of the Audit Committee Charter is available on the Company’s website at www.maverixmetals.com and is attached as Appendix A to the AIF for the financial year ended December 31, 2020, which is filed as Exhibit 99.1 to this Annual Report.

Audit Committee Financial Expert

The Board has determined that each of Brian Penny, J.C. Stefan Spicer and Dr. Christopher Barnes (i) is financially sophisticated within the meaning of Rule 803B of the Company Guide; (ii) is an “audit committee financial expert” as defined in Item 407(d)(5)(ii) of Regulation S-K under the Exchange Act, and (iii) is independent (as determined under the Exchange Act Rule 10A-3 and Section 803A of the Company Guide).

PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES BY INDEPENDENT AUDITOR

The Audit Committee pre-approves all audit services to be provided to the Company by its independent auditors. Non-audit services that are prohibited to be provided to the Company by its independent auditors may not be pre-approved. In addition, prior to the granting of any pre-approval, the Audit Committee must be satisfied that the performance of the services in question will not compromise the independence of the independent auditors. All non-audit services performed by the Company’s auditor for the fiscal year ended December 31, 2020 were pre-approved by the Audit Committee of the Company. No non-audit services were approved pursuant to the de minimis exemption to the pre-approval requirement set forth in Rule 2-01(c)(7)(i)(C) of Regulation S-X.

PRINCIPAL ACCOUNTANT FEES AND SERVICES – INDEPENDENT AUDITOR

The following table shows the aggregate fees billed to the Company by KPMG LLP and its affiliates, Chartered Professional Accountants, the Company’s independent registered public auditing firm, in each of the last two fiscal years.

	2020		2019
Audit Fees (1)	$	274,562	$	207,380
Audit-Related Fees (2)		Nil		Nil
Tax Fees (3)		Nil		Nil
All Other Fees (4)		Nil		Nil
Total	$	274,562	$	207,380

(1) “Audit Fees” are payable in Canadian dollars and include fees necessary to perform the audit of the Company’s consolidated financial statements. Audit Fees include quarterly reviews, fees for review of tax provisions and for accounting consultations on matters reflected in the financial statements. Audit Fees also include audit or other attest services required by legislation or regulation, such as comfort letters, consents, reviews of securities filings and statutory audits.

(2) “Audit-Related Fees” include services that are traditionally performed by the auditor. These audit-related services include due diligence assistance, accounting consultations on proposed transactions, internal control reviews and audit or attest services not required by legislation or regulation.

(3) “Tax Fees” include fees for all tax services other than those included in “Audit Fees” and “Audit-Related Fees”. This category includes fees for filing tax returns for U.S. subsidiary, tax compliance, tax planning and tax advice. Tax planning and tax advice includes assistance with tax audits and appeals, tax advice related to mergers and acquisitions, and requests for rulings or technical advice from tax authorities.

(4) “All Other Fees” include fees relating to the aggregate fees billed in each of the last two fiscal years for products and services provided by the Company’s external auditor, other than the services reported under clauses 1 to 3 above.

CODE OF ETHICS

The Company has adopted a Code of Ethics that applies to directors, officers and employees of, and consultants and contractors to, the Company (the “Code”). The Code has been posted on the Company’s website at www.maverixmetals.com. The Code meets the requirements for a “code of ethics” within the meaning of that term in General Instruction 9(b) of the Form 40-F.

All waivers of the Code with respect to any of the employees, officers or directors covered by it will be promptly disclosed as required by applicable securities rules and regulations. During the fiscal year ended December 31, 2020, the Company did not waive or implicitly waive any provision of the Code with respect to any of the Company’s principal executive officers, principal financial officer, principal accounting officer or controller, or persons performing a similar function.

OFF-BALANCE SHEET ARRANGEMENTS

The Company has no off-balance sheet arrangements.

TABLE OF CONTRACTUAL OBLIGATIONS

The following table lists, as of December 31, 2020, information with respect to the Company’s known contractual obligations (in thousands):

	Less than 1 Year		1 to 3Years		3 to 5 Years		More Than 5 Years		Total
Long-Term Debt Obligations	$	-	$	32,000	$	-	$	-	$	32,000
Lease Obligations		90		72		-		-		162
Total	$	90	$	32,072	$	-	$	-	$	32,162

(1) Maverix is a resource-based company that acquires Royalties and precious metals stream agreements from companies that have advanced stage development projects or operating mines.  Streams are acquired by entering into streaming agreements which provide, in general, that in return for making a one-time up-front payment, Maverix receives the right to purchase, at a fixed price per unit or at a variable price based on the spot market price, a percentage of a mine’s production of a specified metal for the life of the mine. Accordingly, the Company’s purchase commitments with respect to each Stream are not based on time periods, such as less than 1 year or 1 to 3 years, but rather continue for the life of the mine or the duration of the Stream agreement. 

NOTICES PURSUANT TO REGULATION BTR

There were no notices required by Rule 104 of Regulation BTR that the Company sent during the year ended December 31, 2020 concerning any equity security subject to a blackout period under Rule 101 of Regulation BTR.

CORPORATE GOVERNANCE

The Company is a “foreign private issuer” as defined in Rule 3b-4 under the Exchange Act and its common shares are listed on the NYSE American. Section 110 of the Company Guide permits the NYSE American to consider the laws, customs and practices of the home jurisdiction of foreign issuers in relaxing certain NYSE American listing criteria, and to grant exemptions from NYSE American listing criteria based on these considerations. A foreign private issuer that follows home country practices is required to provide disclosure of any significant ways in which its corporate governance practices differ from those followed by domestic companies under the Company Guide. This disclosure may be viewed on the Company’s website at www.maverixmetals.com under “Company – Corporate Governance – NYSE American Corporate Governance Disclaimer”.

MINE SAFETY DISCLOSURE

We do not operate any mine in the United States and have no mine safety incidents to report for the year ended December 31, 2020.

UNDERTAKING

The Company undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the SEC staff, and to furnish promptly, when requested to do so by the SEC staff, information relating to: the securities registered pursuant to Form 40-F; the securities in relation to which the obligation to file an annual report on Form 40-F arises; or transactions in said securities.

CONSENT TO SERVICE OF PROCESS

The Company has previously filed with the SEC a written consent to service of process on Form F-X. Any change to the name or address of the Company’s agent for service shall be communicated promptly to the SEC by amendment to the Form F-X referencing the file number of the Company.

SIGNATURES

Pursuant to the requirements of the Exchange Act, the Company certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MAVERIX METALS INC.
By:	/s/ Dan O’Flaherty
	Name: Dan O’Flaherty
	Title: Chief Executive Officer

Date: March 23, 2021

EXHIBIT INDEX

The following documents are being filed with the Commission as Exhibits to this Annual Report:

Exhibit	Description
99.1	Annual Information Form for the Financial Year ended December 31, 2020
99.2	Audited consolidated financial statements and notes thereto as at and for the years ended December 31, 2020 and 2019, together with a report thereon by the independent auditor
99.3	Management’s Discussion & Analysis for the year ended December 31, 2020
99.4	Certificate of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act
99.5	Certificate of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act
99.6	Certificate of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.7	Certificate of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.8	Consent of Qualified Person (Brendan Pidcock)
99.9	Consent of KPMG LLP
101	Interactive Data File

EX-99.1

Exhibit 99.1

ANNUAL INFORMATION FORM
FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2020

March 23, 2021

Suite 575, 510 Burrard Street
Vancouver, B.C. V6C 3A8

MAVERIX METALS INC.
ANNUAL INFORMATION FORM
FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2020

TABLE OF CONTENTS

INTRODUCTORY NOTES	1
CORPORATE STRUCTURE	4
GENERAL DEVELOPMENT OF THE BUSINESS	4
DESCRIPTION OF THE BUSINESS	9
Risk Factors	11
Material ASSETS	24
DIVIDENDS	31
DESCRIPTION OF CAPITAL STRUCTURE	31
MARKET FOR SECURITIES	32
DIRECTORS AND OFFICERS	34
LEGAL PROCEEDINGS AND REGULATORY ACTIONS	36
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS	36
TRANSFER AGENT AND REGISTRAR	36
MATERIAL CONTRACTS	36
INTERESTS OF EXPERTS	37
AUDIT COMMITTEE	37
ADDITIONAL INFORMATION	39
Appendix a AUDIT COMMITTEE CHARTER	a-1

INTRODUCTORY NOTES

Cautionary Note Regarding Forward-Looking Statements

This annual information form (“AIF”) contains “forward-looking information” or “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking information is provided as of the date of this AIF and Maverix Metals Inc. (“Maverix” or the “Company”) does not intend to and does not assume any obligation to update forward-looking information, except as required by applicable law. For this reason and the reasons set forth below, investors should not place undue reliance on forward-looking statements.

Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is based on reasonable assumptions that have been made by Maverix as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Maverix to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which Maverix will purchase precious metals or from which it will receive royalty or stream payments, and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine construction and operations, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans are refined; problems related to the ability to market precious metals or other metals; industry conditions, including commodity price fluctuations, interest and exchange rate fluctuations; interpretation by government entities of tax laws or the implementation of new tax laws; the volatility of the stock market; competition; risks related to the Company’s dividend policy; epidemics, pandemics or other public health crises, including the global outbreak of the novel coronavirus (“COVID-19”), also, those risk factors discussed under the heading “Risk Factors” in this AIF.

Forward-looking information in this AIF includes disclosure regarding royalty payments to be paid to Maverix by property owners or operators of mining projects pursuant to net smelter returns (“NSR”), gross revenue royalty (“GRR”), and other royalty agreements (“Royalties” and individually a “Royalty”), the gold and other metal purchase agreements (“Streams” and each individually a “Stream”) of Maverix, and the future outlook of Maverix and the mineral reserves and resource estimates for the La Colorada mine. Forward-looking statements are based on a number of material assumptions, which management of Maverix believe to be reasonable, including, but not limited to, the continuation of mining operations in respect of which Maverix will receive Royalty payments or from which Maverix will purchase precious or other metals, that commodity prices will not experience a material adverse change, mining operations that underlie Royalties or Streams will operate in accordance with disclosed parameters and such other assumptions as may be set out herein.

Although Maverix has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results to not be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Readers of this AIF should carefully review the risk factors set out in this AIF under the heading “Risk Factors”.

Cautionary Note Regarding Mineral Reserve and Resource Estimates

This AIF has been prepared in accordance with the requirements of Canadian securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all mineral resource and reserve estimates included in this AIF have been prepared by the owners or operators of the relevant properties (as and to the extent indicated by them) in accordance with National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101 establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.

- 2 -

Canadian standards, including NI 43-101, differ from the requirements of the Securities and Exchange Commission (“SEC”) under SEC Industry Guide 7, and reserve and resource information contained herein may not be comparable to similar information disclosed by U.S. companies.

The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with NI 43-101 and the standards of the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”). These definitions differ from the definitions in SEC Industry Guide 7 (“SEC Industry Guide 7”) under the United States Securities Act of 1933, as amended. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price must be used in any reserve or cash flow analysis, and the primary environmental analysis or report must be filed with the appropriate governmental authority. Further, under SEC Industry Guide 7, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Reserve estimates contained in documents incorporated by reference into this AIF may not qualify as “reserves” under SEC Industry Guide 7. In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101 and the CIM standards; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures.

SEC Industry Guide 7, the existing disclosure standard for the SEC, will be replaced by new sub-part 1300 of Regulation S-K under the United States Securities Act of 1933, as amended, which will be mandatory for most issuers subject to U.S. reporting standards for the annual report for the first fiscal year beginning on or after January 1, 2021. None of the reserve or resource estimates presented in this AIF have been prepared in accordance with the new SEC disclosure standards.

Accordingly, information contained in this AIF and the portions of documents incorporated by reference herein containing descriptions of the Company’s interests in mineral deposits held by third party mine operators may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

Technical and Third-Party Information

Except where otherwise stated, the disclosure in this AIF relating to properties and operations in which Maverix holds Royalty, Stream or other interests, including the disclosure in this AIF under the heading “Material Assets – La Colorada Mine, Mexico” is based on information publicly disclosed by the owners or operators of these properties and information/data available in the public domain as at the date hereof, and none of this information has been independently verified by Maverix. Specifically, as a Royalty or Stream holder, Maverix has limited, if any, access to properties on which it holds Royalties, Streams, or other interests in its asset portfolio. The Company may from time to time receive operating information from the owners and operators of the mining properties, which it is not permitted to disclose to the public. Maverix is dependent on, (i) the operators of the mining properties and their qualified persons to provide information to Maverix, or (ii) on publicly available information to prepare disclosure pertaining to properties and operations on the properties on which the Company holds Royalty, Stream or other interests, and generally has limited or no ability to independently verify such information. Although the Company does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accurate. Some reported public information in respect of a mining property may relate to a larger property area than the area covered by Maverix’s Royalty, Stream or other interest. Maverix’s Royalty, Stream or other interests may cover less than 100% of a specific mining property and may only apply to a portion of the publicly reported mineral reserves, mineral resources and or production from a mining property.

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As at the date of this AIF the Company considers its Stream interest in the La Colorada mine to be its only material mineral properties for the purposes of NI 43-101. Information included in this AIF with respect to the La Colorada mine has been prepared in accordance with the exemption set forth in section 9.2 of NI 43-101.

Unless otherwise noted, the disclosure contained in this AIF of a scientific or technical nature for the La Colorada mine is based on (i) the technical report entitled “Technical Report Preliminary Economic Analysis for the Expansion of the La Colorada Mine in Zacatecas, Mexico” having an effective date of December 31, 2013, which technical report was prepared for Pan American Silver Corp. (“Pan American”), and filed under Pan American’s SEDAR profile on January 30, 2014; (ii) the technical report entitled “Technical Report for the La Colorada Property, Zacatecas, Mexico” having an effective date of December 31, 2019 and filed under Pan American’s SEDAR profile on March 6, 2020; (iii) Pan American’s Annual Information Form for the year ended December 31, 2020 and filed under Pan American’s SEDAR profile on February 17, 2021 (the “Pan American AIF”); (iv) Pan American’s annual Mineral Reserves and Resources Table with an effective date of June 30, 2020; and (v) information that has been provided by Pan American and/or has been sourced from their news releases with respect to the La Colorada mine.

Brendan Pidcock, P.Eng., Vice President Technical Services for Maverix and a “Qualified Person” under NI 43-101 has reviewed and approved the written scientific and technical disclosure contained in this AIF.

Share Consolidation

On May 23, 2019, Maverix consolidated its Common Shares on the basis of two (2) pre-consolidation common shares for each one (1) post-consolidation common share (the “Share Consolidation”). All information related to the Common Shares or other securities of Maverix in this AIF is presented on a post-Share Consolidation basis.

Currency Presentation

All dollar amounts referenced as, “US$”, “USD” or “USD$” are references to United States dollars, “C$”, “CAD” or “CAD$” are references to Canadian dollars, and “A$”, “AUD” or “AUS$” are references to Australian dollars.

Exchange Rate Information

The following table sets out the high and low rates of exchange for: (i) one U.S. dollar, and (ii) one Australian dollar, each expressed in Canadian dollars, in effect at the end of each of the following periods, the average rate of exchange for those periods, and the rate of exchange in effect at the end of each of those periods, each based on the rate published by the Bank of Canada:

	U.S. Dollar						Australian Dollar
	Year Ended December 31,						Year Ended December 31,
	2020		2019		2018		2020		2019		2018
Rate at end of period		1.3450		1.3269		1.3642		0.9247		0.9228		0.9801
Average rate during period		1.3150		1.3260		1.2957		0.9539		0.9216		0.9951
High rate for period		1.3609		1.3527		1.3642		0.9811		0.9582		1.0322
Low rate for period		1.2701		1.2970		1.2552		0.9248		0.8868		0.9645

Commodity Price Information

The following table sets out the average afternoon price in U.S. dollars per ounce for gold and silver for the periods set out below as published by the London Bullion Markets Association:

	Gold/oz (LBMA Gold Price PM in USD)						Silver/Oz (LBMA Silver Price PM in USD)
	2020		2019		2018		2020		2019		2018
Average		1,770		1,393		1,268		20.55		16.21		15.71

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CORPORATE STRUCTURE

Maverix was incorporated under the Canada Business Corporations Act (“CBCA”) on September 5, 2008 as “MacMillan Minerals Inc.” On July 11, 2016, Maverix completed a statutory plan of arrangement under the CBCA (the “Arrangement”), which involved, among other things, the acquisition of a portfolio of precious metal Royalties, Streams, and purchase agreements from Pan American. In conjunction with the Arrangement, Maverix subsequently changed its name from “MacMillan Minerals Inc.” to “Maverix Metals Inc.”.

The Company’s head office is located at Suite 575, 510 Burrard Street, Vancouver, British Columbia, V6C 3A8, Canada. The Company’s registered and records office is located at Suite 2600, 595 Burrard Street, Vancouver, British Columbia, V7X 1L3, Canada.

The Company is a reporting issuer in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland. As at the date of this AIF the Company’s common shares (the “Common Shares”) are listed on the Toronto Stock Exchange (the “TSX”) and on the NYSE American, LLC (“NYSE American”), both under the symbol “MMX”.

The Company has two principal subsidiaries, being Maverix Metals (Australia) Pty. Ltd., incorporated under the laws of Australia, and Maverix Metals (Nevada) Inc., incorporated under the laws of the State of Nevada in the United States of America.

GENERAL DEVELOPMENT OF THE BUSINESS

Maverix is a precious metals royalty and streaming company that generates its revenue primarily from Royalties and Streams. Maverix does not conduct active mining operations. Maverix currently has a portfolio of over 100 Royalties and Streams.

COVID-19

Since the World Health Organization declared the outbreak of COVID-19 as a global pandemic in March 2020 the Company has continually monitored and assessed the potential impacts of COVID-19 on its employees and business. As at the date of this AIF all employees continue to work remotely, and the Company is adhering to applicable local and national guidance in place in Canada and the United States. The Company is closely monitoring the impact of the COVID-19 pandemic on its portfolio of assets and its business generally.

At this time, given the continuance of the COVID-19 pandemic, the Company cannot reasonably estimate the potential impact of COVID-19 on any underlying operations as they relate to the Company’s Royalties and Streams. The Company will continue to monitor the situation closely and update the market as additional or new information becomes available.

Though the current COVID-19 global health pandemic is significantly impacting the global economy, commodity and financial markets, as at the date of this AIF, Maverix is only aware of two operations in which it holds a royalty or stream interest that were temporarily suspended during the financial year ended December 31, 2020, being the La Colorada mine and the San Jose mine. Both operations have since resumed operations.

Three Year History

The following is a summary of how Maverix’s business has developed over the last three completed financial years as of the date of this AIF.

Financial Year Ended December 31, 2020

2020 Newmont Portfolio Acquisition

On October 29, 2020, Maverix acquired a portfolio of 11 gold royalties (the “2020 Newmont Portfolio”) from Newmont Corporation and its affiliates (collectively, “Newmont”) pursuant to a purchase and sale agreement with Newmont dated September 21, 2020 (the “2020 Newmont Transaction”). As consideration for the acquisition of the 2020 Newmont Portfolio, Maverix issued 12,000,000 Common Shares and paid US$15,000,000 in cash.

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The 2020 Newmont Portfolio included the following key assets:

· Camino Rojo Royalty – NSR Royalty (Zacatecas, Mexico) – a 2.0% NSR royalty on the Camino Rojo project payable by Orla Mining Ltd. The royalty applies to oxide and transitional ore only. The Camino Rojo land package consists of seven mineral concessions covering approximately 206,000 hectares and is located approximately 50 kilometers southeast of Newmont’s Peñasquito mine.

· Cerro Blanco Royalty – NSR Royalty (Jutiapa, Guatemala) – a 1.0% NSR royalty on the Cerro Blanco project owned by Bluestone Resources Inc., a member of the Lundin Group. Cerro Blanco is a high-grade gold and silver project. Optimization, engineering and design work is currently underway.

· Mother Lode Royalty – NSR Royalty (Nevada, USA) – a sliding scale NSR royalty on the Mother Lode project owned by Corvus Gold Inc. The NSR royalty rate is 2.0% when the gold price is equal to or greater than US$1,400 per ounce and 1.0% when the gold price is less than US$1,400 per ounce and only applies to a portion of the overall Mother Lode land package. Mother Lode is a past producing open-pit heap leach project in the Walker Lane gold belt in Nevada.

· Imperial Royalty – NSR Royalty (California, USA) – a 1.0% NSR royalty on the Imperial project owned by KORE Mining Ltd. The Imperial project contains a large, near surface oxide gold deposit consisting of 656 claims covering 5,721 acres.

· Ana Paula Royalty – NSR Royalty (Guerrero, Mexico) – a 2.0% NSR royalty on the Ana Paula project owned by Argonaut Gold Inc. (“Argonaut Gold”). Ana Paula comprises a 56,000-hectare land package within the Guerrero gold belt, a prolific mining area that hosts several large commercial gold operations. Argonaut Gold has agreed to sell the Ana Paula project to a company that will be formed from the business combination of 1242201 BC Ltd. (referred to as AP Mining) and Pinehurst Capital II Inc.

· Trenton Canyon and Buffalo Valley Royalties – NSR Royalties (Nevada, USA) – a 0.5% NSR royalty on the Trenton Canyon and Buffalo Valley properties owned by SSR Mining Inc. The Trenton Canyon property consists of 7,350 hectares located immediately south and along the mineralized trend from the Marigold mine. The property was previously operated as an open-pit run-of-mine heap leach operation from 1996 to 2001.

Maverix also agreed to make contingent cash payments of up to US$15,000,000 if certain production milestones at certain of the underlying assets are achieved within five years of the closing of the acquisition. Specifically, Maverix will make US$5,000,000 cash payments to Newmont for each of the Mother Lode, Imperial, and Ana Paula projects if they achieve commercial production within five years of the closing of the acquisition.

Maverix also acquired four royalties on exploration and development stage projects in Canada and Mexico. The transfer of the Mexican royalties in the 2020 Newmont Portfolio were subject to the authorization of the Federal Economic Competition Commission in Mexico (Comisión Federal de Compentencia Económica), which was subsequently received on March 18, 2021, and such transfers are pending as of the date of this AIF.

Certain of the royalties transferred pursuant to the 2020 Newmont Transaction were subject to a right of first refusal (“ROFR”) that permitted the underlying property owner the right to repurchase the specific royalty for cash on the same valuation as established by Newmont and Maverix. None of the ROFRs in the 2020 Newmont Transaction were exercised.

Beta Hunt Royalty Transaction

On September 3, 2020, Karora Resources Inc. (“Karora”) and Maverix closed a transaction whereby effective July 1, 2020, Maverix’s royalty on gold production at Karora’s Beta Hunt mine was reduced from 7.5% to 4.75%. As consideration for the transaction Karora paid Maverix US$13,000,000 for the reduction of its royalty interest in the Beta Hunt mine and a one-time, US$5,000,000 bonus royalty payment. US$2,500,000 of the bonus royalty payment was received on the closing the transaction, with the remaining US$2,500,000 received in January 2021.

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Pan American Silver Secondary Offering and Warrant Exercise

On June 5, 2020, Maverix and Pan American announced the closing of an overnight marketed secondary offering of Common Shares of Maverix held by Pan American, including the exercise of an over-allotment option (the “Secondary Offering”). The Secondary Offering, conducted by way of a prospectus supplement dated May 29, 2020 to the Company’s existing U.S. registration statement on Form F-10 and Canadian short form base shelf prospectus, the latter each dated September 13, 2019. Pursuant to the Secondary Offering, Pan American sold 10,350,000 Common Shares of Maverix. In addition to the Secondary Offering, Pan American also exercised 8,250,000 common share purchase warrants (the “Warrants”) to acquire an additional 8,250,000 Common Shares. 5,000,000 Warrants had an exercise price of US$1.56 per additional Common Share and 3,250,000 Warrants had an exercise price of US$2.41 per additional Common Share. Maverix received gross proceeds of approximately US$15,600,000 from the exercise of the Warrants.

Financial Year Ended December 31, 2019

Acquisition of the Kinross Portfolio

On December 19, 2019, Maverix acquired a portfolio of 24 Royalties (the “Kinross Portfolio”) pursuant to a Purchase and Sale Agreement with Kinross Gold Corp. (“Kinross”) dated December 1, 2019 (the “Kinross Transaction”). As consideration for the acquisition of the Kinross Portfolio, Maverix issued 11,228,674 Common Shares to Kinross and made a cash payment to Kinross of US$25,000,000.

Certain of the Royalties that were due to be transferred pursuant to the Kinross Transaction were subject to a ROFR that permitted the underlying property owner the right to repurchase the specific royalty for cash on the same valuation as established by Kinross and Maverix. Brett Resources Inc., a subsidiary of Agnico, exercised its ROFR on the sale of the 2% net smelter return royalty on the Hammond Reef project located in Ontario, Canada. As a result of the exercise of the ROFR in respect of the Hammond Reef royalty, Maverix received a cash payment of US$12,000,000.

The Kinross Portfolio included the following key assets:

· DeLamar Royalty – NSR Royalty (Idaho, USA) – a 2.5% NSR Royalty payable by Integra Resources Corp. on the DeLamar deposit which forms part of the DeLamar project, located in southwestern Idaho.

· Omolon Royalty – Sliding Scale GRR (Magadan Region, Russia) – a sliding scale gross revenue Royalty payable by Polymetal International plc on certain deposits that compose the Omolon operations. The gross revenue Royalty is equal to 2.0% when the gold price is above US$650 per ounce.

· Norte Abierto Royalty – GRR (Chile) – a 1.25%⁽¹⁾ royalty on 25% of the gross revenues from the Norte Abierto project located in Chile.

· Railroad Royalty – NSR Royalty (Nevada, USA) – a 2.0% NSR Royalty payable by Gold Standard Ventures Corp. on a significant portion of the South Railroad development project.

· McCoy-Cove Royalty – NSR Royalty (Nevada, USA) – a 2.0% NSR Royalty payable on a significant portion of the McCoy-Cove development project. This Royalty is in addition to the 1.5% NSR Royalty over the entire McCoy-Cove project acquired as part of the 2018 Newmont Transaction. It was announced on December 16, 2020 that Equinox Gold Corp. will acquire all of the issued and outstanding common shares of Premier Gold Mines and spin-out a new company called i-80 Gold Corp., which will hold the McCoy-Cove project.

The Kinross Portfolio also included other development and early-stage exploration royalties.

In connection with the acquisition of the Kinross Portfolio, Maverix entered into an investor agreement with Kinross dated December 19, 2019 (the “Kinross Investor Agreement”) pursuant to which Kinross received anti-dilution rights in respect of future equity financings of Maverix. Pursuant to the Kinross Investor Agreement, Maverix also received the opportunity to make an offer to acquire certain metal streams or metal royalties which Kinross may contemplate selling in the future.

(1) Royalty only applies to the Cerro Casale and Quebrada Seca deposits which form part of the Norte Abierto project.

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Florida Canyon Settlement Agreement

On November 22, 2019, Maverix and Alio Gold Inc. (then owner and operator of the Florida Canyon mine), entered into a settlement agreement in respect of disputed royalty payments due from production at the Florida Canyon mine. The settlement agreement clarified permitted allowable deductions in respect of the royalty, reduced the royalty amount from 3.25% to 3.0%, and provided for a one-time royalty payment by Alio Gold Inc. to Maverix of US$300,000, in either cash or shares, which was ultimately paid in cash. On July 1, 2020 Alio Gold Inc. was acquired by Argonaut Gold Inc.

Inaugural Quarterly Dividend Declared

On November 13, 2019, Maverix announced that its board of directors (the “Board”) declared an inaugural dividend of US$0.01 per Common Share for shareholders of record as at the close of business on December 31, 2019.

Acquisition of Additional Royalty on the Hope Bay Mine

On August 13, 2019, Maverix entered into an agreement to purchase an additional 1.5% NSR Royalty on the Hope Bay mine in Nunavut, Canada, for a cash payment of US$40,000,000 (the “Additional Royalty”). Upon closing of the transaction, Maverix owned a total combined 2.5% NSR Royalty on the Hope Bay mine, with Maverix having previously acquired a 1.0% NSR Royalty in connection with the 2018 Newmont Transaction (as defined below). Maverix also received an additional 0.25% NSR Royalty until certain conditions with respect to the Additional Royalty are satisfied. The Hope Bay mine is currently owned and operated by Agnico who acquired all of the issued and outstanding shares of TMAC Resources Inc. (“TMAC”), the previous owner and operator of the mine, on February 2, 2021. In conjunction with the acquisition of TMAC, Agnico exercised its right to buy back 100% of the Additional Royalty for the cash payment of US$50,000,000. After the closing of the transaction between Agnico and TMAC, Maverix’s royalty interest on the Hope Bay mine remains as a 1% NSR Royalty.

Graduation to the TSX; Application to List on the NYSE American

On May 22, 2019, Maverix announced that it had applied to list its Common Shares on the NYSE American and that it had been conditionally approved to graduate to a listing on the TSX. Maverix’s Common Shares began trading on the TSX and the NYSE American on June 25, 2019 under the symbol “MMX” on both exchanges.

Amendment of the Credit Facility

On April 5, 2019, Maverix amended and increased the Credit Facility (as defined below) to allow Maverix to borrow up to US$75,000,000 and on September 20, 2019, Maverix amended and increased the Credit Facility to allow Maverix to borrow up to US$120,000,000.

The amended Credit Facility has a term of four years ending in June 2023, which is extendable through mutual agreement between Maverix, the Canadian Imperial Bank of Commerce (“CIBC”), National Bank of Canada (“National Bank”) and The Bank of Nova Scotia.

Acquisition of the El Mochito Silver Stream

On March 28, 2019, Maverix entered into a definitive agreement to purchase 22.5% of the silver produced from the El Mochito mine (the “El Mochito Stream”). The El Mochito mine is an operating underground zinc/lead/silver mine located in western Honduras with a long history of production. As consideration for the El Mochito Stream, Maverix made an initial upfront cash payment of US$7,500,000. If 3.0 million ounces of silver are delivered to Maverix prior to April 1, 2022, the silver purchase entitlement will be 20% of the life of mine silver production. Maverix makes ongoing cash payments equal to 25% of the spot price of silver.

The El Mochito mine is 100% owned by American Pacific Honduras S.A. de C.V. (“AMPAC”), a company that was formerly a subsidiary of Ascendant Resources Inc. (“Ascendant”). On April 27, 2020, Ascendant sold all the issued and outstanding shares of AMPAC to Kirungu Corporation (“Kirungu”). The El Mochito Stream continued in place and Kirungu assumed all obligations of Ascendant in respect of the El Mochito Stream.

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Financial Year Ended December 31, 2018

Acquisition of the Moss Silver Stream

On December 6, 2018, Maverix entered into a definitive agreement with Golden Vertex Corp., a wholly owned subsidiary of Northern Vertex Corp. (collectively, “Northern Vertex”) to acquire 100% of the silver produced from Northern Vertex’s operating Moss mine (the “Moss Silver Stream”). Under the terms of the Moss Silver Stream, Maverix will be entitled to purchase 100% of the silver produced from the Moss mine until a minimum of 3.5 million ounces of silver have been purchased, after which Maverix will be entitled to purchase 50% of the life of mine production. Maverix will make ongoing cash payments to Northern Vertex equal to 20% of the spot price of silver. As consideration for the Moss Silver Stream, Maverix made an upfront cash payment of US$20,000,000. The Moss Silver Stream applies to all current and future phases of operations at the Moss Mine.

The Moss Mine is an open pit, heap leach gold and silver operation located in northwestern Arizona, USA. The Moss mine commenced operations in the first quarter of 2018 and declared commercial production in September 2018. On December 7, 2020, Northern Vertex announced that it would be combining with Eclipse Gold Mining Corp. and that Northern Vertex would be the continuing company. Northern Vertex closed the transaction on February 12, 2021.

2018 Newmont Portfolio Acquisition

On June 29, 2018, Maverix acquired a portfolio of 51 Royalties (the “2018 Newmont Portfolio”) from Newmont pursuant to a Purchase and Sale Agreement entered into with Newmont dated May 29, 2018 (the “2018 Newmont Transaction”). As consideration for the acquisition of the 2018 Newmont Portfolio, Maverix issued 30,000,000 Common Shares and 5,000,000 Warrants to Newmont and made a cash payment to Newmont of US$17,000,000. The Warrants issued to Newmont have an exercise price of US$3.28 per Common Share and an expiry date of June 29, 2023.

Certain of the Royalties that were due to be transferred pursuant to the 2018 Newmont Transaction were subject to a ROFR that permitted the underlying property owner the right to repurchase the specific royalty for cash on the same valuation as established by Newmont and Maverix. A select few of the individual ROFRs were exercised, which included the royalty payable by Barrick Gold Corporation on the western extension of the Hemlo mine and royalties payable on two additional non-producing exploration stage projects.

The Newmont Portfolio included the following key assets:

· Hope Bay Royalty – NSR Royalty (Nunavut, Canada) – a 1.0% NSR Royalty payable on the Hope Bay mine located in Nunavut, Canada.

· Goldfield Royalty – NSR Royalty (Nevada, USA) – a 5.0% NSR Royalty payable by Romarco Nevada Goldfield Inc., a subsidiary of Waterton Global Resource Management (and including related entities, “Waterton”) on production from the Gemfield deposit as part of the development stage Goldfield project located in Nevada, USA. The Goldfield project consists of several open pit mines which are expected to supply a central heap leach processing facility.

· Hasbrouck Royalty – NSR Royalty (Nevada, USA) – a 1.25% NSR Royalty payable by West Vault Mining Inc., on the development stage Hasbrouck and Three Hills properties, collectively the “Hasbrouck Project”, located in Nevada, USA. The Hasbrouck project is expected to be developed as successive open pit mines utilizing heap leach processing.

· Converse Royalty – NSR Royalty (Nevada, USA) – a 5.0% NSR Royalty payable by Romarco Nevada Inc., a subsidiary of Waterton, on a significant portion of the development stage Converse project, located in Nevada, USA. The Converse project is expected to be a large open pit operation employing heap leach processing.

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The 2018 Newmont Portfolio also included other development and early-stage Royalties and several industrial mineral and power royalties and land lease payments, located primarily in Nevada, which will generate revenue to Maverix each year.

Credit Facility

On June 21, 2018, Maverix entered into a revolving credit agreement with CIBC and National Bank which permitted Maverix to borrow up to US$50,000,000 (the “Credit Facility”).

DESCRIPTION OF THE BUSINESS

The Company is a precious metals royalty and streaming company whose business strategy is to acquire Royalty and Stream interests. In the ordinary course of business, Maverix engages in a continual review of opportunities to acquire existing Royalty or Stream interests, to establish new Royalties or Streams on operating mines, to create new Royalty or Stream interests through the financing of mine development or exploration, or to acquire companies that hold Royalty and Stream interests.

A royalty is a payment to a royalty holder by a property owner or an operator of a mine and is typically based on a percentage of the minerals or other products produced or the revenues generated from the property or mining operation. Depending on the nature of the royalty interest, the laws applicable to it and the project or mine, the royalty holder is generally not responsible for, and has no obligation to contribute to operating or capital costs or environmental liabilities. An NSR royalty is generally based on the value of production or net proceeds received by an operator from a smelter or refinery for the minerals sold. These proceeds are usually subject to deductions or charges for transportation, insurance, smelting and refining costs as set out in the agreement governing the terms of the royalty. A GRR royalty is generally a defined percentage of gross revenues received by the operator from the sale of all metals or products from a mining operation, without any deductions.

A stream is contractual arrangement whereby Maverix will provide an upfront payment in return for the right to purchase all or a fixed percentage of future metal production generated from a mine at a predetermined price.

Principal Product

The principal products of Maverix are: (i) payments received pursuant to Royalty agreements with mining companies; and (ii) precious metals purchased pursuant to Stream agreements with mining companies. The Company’s material asset is its Stream interest in the La Colorada mine. Further details regarding the agreements entered into by Maverix in respect of its Royalties and Streams can be found under the heading “General Development of the Business” above.

Stream Interests

The following table summarizes the Streams that Maverix owns:

Mine/Project	Location	Operator	Asset Status	Interest	MMX Purchase Price
La Colorada	Mexico	Pan American Silver Corp.	Operating	100% of gold	Lesser of (i) US$650 per ounce and (ii) spot price
Moss	USA	Northern Vertex Mining Corp.	Operating	100% of silver (1)	20% of silver spot price
El Mochito	Honduras	Kirungu Corporation	Operating	22.5% silver (2)	25% of silver spot price
La Bolsa	Mexico	Pan American Silver Corp.	Development	5% of gold	Lesser of (i) US$450 per ounce and (ii) spot price

Notes:

(1) After 3.5 million ounces of silver are delivered, the silver purchase entitlement will be 50% of the remaining life of mine silver production.

(2) If 3.0 million ounces of silver are delivered prior to April 1, 2022, the silver purchase entitlement will be 20% of life of mine silver production.

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Royalty Interests

The following tables summarize the main Royalty interests that Maverix owns either directly, or indirectly through one of its subsidiaries, on operating mines and development stage projects:

Royalties on Operating Mines

Mine	Location	Operator	Interest
Hope Bay	Canada	Agnico Eagle Mines Limited	1.0% NSR Royalty
Beta Hunt	Australia	Karora Resources Inc.	3.25% GRR, and 1.5% NSR Royalties on all Gold production; 1.5% total NSR Royalties on all nickel production
Florida Canyon	USA	Argonaut Gold Inc.	3.0% NSR Royalty
Omolon	Russia	Polymetal International plc	2.0% GRR Royalty
Mt. Carlton	Australia	Evolution Mining Ltd.	2.5% NSR Royalty
Karma	Burkina Faso	Endeavor Mining Corporation	2.0% NSR Royalty (1)
Vivien	Australia	Ramelius Resources Ltd.	3.5% GRR
San Jose	Mexico	Fortuna Silver Mines Inc.	1.5% NSR Royalty (2)
Moose River	Canada	St. Barbara Ltd.	1.0% NSR Royalty (3)
Kensington	USA	Coeur Mining, Inc.	2.5% NSR Royalty (4)
Relief Canyon	USA	Americas Gold and Silver Corp.	2.0% NSR Royalty (5)

Notes:

(1) Royalty applies to 85.5% of total production.

(2) Royalty applies to the Taviche Oeste concessions.

(3) Royalty applies to the Touquoy deposit.

(4) Royalty commences payment after a recoupment period.

(5) Royalty applies to a portion of the existing mineral resource.

Royalties on Development Stage Projects

Asset	Location	Operator	Interest
Camino Rojo	Mexico	Orla Mining Ltd.	2.0% NSR Royalty (1)
Cerro Blanco	Guatemala	Bluestone Resources Inc.	1.0% NSR Royalty
Morondo	Cote d’Ivoire	Montage Gold Corp.	2.0% NSR Royalty
Norte Abierto	Chile	Barrick Gold Corporation Newmont Corporation	1.25% GRR (2)
Silvertip	Canada	Coeur Mining, Inc.	2.5% NSR Royalty
McCoy-Cove	USA	i-80 Gold Corp. (3)	3.5% NSR Royalty (4)
Goldfield	USA	Waterton Global Resource Management	5.0% NSR Royalty (5)
Hasbrouck	USA	West Vault Mining Inc.	1.25% NSR Royalty
Railroad	USA	Gold Standard Ventures Corp.	2.0% NSR Royalty (6)
DeLamar	USA	Integra Resources Corp.	2.5% NSR Royalty (7)
Converse	USA	Waterton Global Resource Management	5.0% NSR Royalty (8)

Notes:

(1) Royalty applies to production from oxide and transitional ore only.

(2) Royalty applies to 25% of gross revenues from all metals sold from Cerro Casale and Quebrada Seca. Payment commences after US$10,000,000 payable under the agreement.

(3) It was announced on December 16, 2020 that Equinox Gold Corp. will acquire all of the issued and outstanding common shares of Premier Gold Mines and spin-out a new company called i-80 Gold Corp., which will hold the McCoy-Cove project.

(4) 2.0% of the Royalty only covers a portion of the deposit.

(5) Royalty applies to the Gemfield deposit.

(6) Royalty applies to a significant portion of the Dark Star deposit.

(7) Royalty applies to a portion of the existing mineral resource and decreases to a 1.0% NSR Royalty after CAD$10,000,000 has been paid under the royalty.

(8) Royalty applies to a significant portion of the existing mineral resource.

Competitive Conditions

Maverix will compete with other companies that operate in the royalty and stream market segment to acquire Royalties and Streams. Maverix will also compete with companies that provide financing to mining companies. Maverix also competes with other precious metals focused companies for capital and human resources. See “Description of the Business – Risk Factors – Competition”.

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Components

Maverix expects to purchase or acquire Royalties or Streams as previously described above under “Description of the Business”.

Employees

As at the date of this AIF, Maverix has a total of nine employees. No management functions of Maverix are performed to any substantial degree by persons other than the directors and executive officers of the Company.

Foreign Operations

Maverix currently purchases or expects to purchase precious or other metals or receives or expects to receive payments under Royalties and Streams from mines or operations in the United States, Canada, Mexico, Australia, Burkina Faso, and Russia amongst other countries. Maverix may in the future purchase precious metals or receive payments under Royalties from mines or operations in other countries. Changes in legislation, regulations or governments in such countries are beyond Maverix’s control and could adversely affect the Company’s business. The effect of these factors cannot be predicted with any accuracy by Maverix or its management. See “Description of the Business – Risk Factors – International Interests” in this AIF.

Risk Factors

Investors should carefully consider all of the information disclosed in this AIF prior to investing in the securities of Maverix. In addition to the other information presented in this AIF, the following risk factors should be given special consideration when evaluating an investment in such securities. These risk factors could materially affect Maverix’s future operating results and could cause actual events to differ materially from those described in forward-looking statements relating to Maverix. The risk factors described in this AIF are not the only risks that Maverix faces. Additional risks or uncertainties that Maverix does not have any knowledge of or are currently deemed as immaterial could also materially adversely affect Maverix.

Risks Relating to Maverix

Global Financial Conditions

Market events and conditions, including the disruptions in the international credit markets and other financial systems, along with falling currency prices expressed in United States dollars can result in commodity prices remaining volatile. These conditions can cause a loss of confidence in global credit markets resulting in the collapse of, and government intervention in, major banks, financial institutions and insurers and creating a climate of greater volatility, tighter regulations, less liquidity, widening credit spreads, less price transparency, increased credit losses and tighter credit conditions. Notwithstanding various actions by governments, concerns about the general condition of the capital markets, financial instruments, banks and investment banks, insurers and other financial institutions caused the broader credit markets to be volatile and interest rates to remain at historical lows. These events can be illustrative of the effect that events beyond the Company’s control may have on commodity prices, demand for metals, including gold, silver, copper, lead and zinc, availability of credit, investor confidence, and general financial market liquidity, all of which may adversely affect the Company’s business.

Global financial conditions can be volatile. Access to additional sources of capital, including conducting public financings, can be negatively impacted by disruptions in the international credit markets and the financial systems of other countries, as well as concerns over global growth rates. These factors could impact the ability of Maverix to obtain both debt and equity financing in the future and, if obtained, on terms favourable to Maverix. Increased levels of volatility and market turmoil can adversely impact the operations of Maverix and the value and the price of the Common Shares of the Company could be adversely affected.

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Public Health Crises, including the COVID-19 Pandemic may Significantly Impact Maverix

Maverix’s business, operations and financial condition could be materially adversely affected by an outbreak of public health crises, including epidemics, pandemics, or other health crises, such as the outbreak of COVID-19. The current COVID-19 global health pandemic is significantly impacting the global economy and commodity and financial markets. The full extent and impact of the COVID-19 pandemic is unknown and to date has included extreme volatility in financial markets, a slowdown in economic activity, extreme volatility in commodity prices (including precious metals) and has raised the prospect of a global recession. The international response to COVID-19 has led to significant restrictions on travel, temporary business closures, quarantines, global stock market volatility and a general reduction in consumer activity globally. Public health crises, such as the COVID-19 outbreak, can result in operating, supply chain and project development delays that can materially adversely affect the operations of third parties in which Maverix has an interest. Mining operations in which Maverix holds an interest could be suspended for precautionary purposes or as governments declare states of emergency or other actions are taken in an effort to combat the spread of COVID-19. If the operation or development of one or more of the properties in which Maverix holds a royalty, stream or other interest and from which it receives or expects to receive significant revenue is suspended, it may have a material adverse impact on Maverix’s profitability, results of operations, financial condition and the trading price of Maverix’s securities.

The risks to Maverix’s business include, without limitation, the risk of breach of material contracts and customer agreements, employee health, workforce productivity, increased insurance premiums, limitations on travel, the availability of industry experts and personnel, prolonged restrictive measures put in place in order to control an outbreak of contagious disease or other adverse public health developments globally and other factors that will depend on future developments beyond Maverix’s control, which may have a material and adverse effect on Maverix’s business, financial condition and results of operations. In addition, Maverix may experience business interruptions because of suspended or reduced operations at the mines in which Maverix has an interest, relating to the COVID-19 outbreak or such other events that are beyond the control of Maverix, which could in turn have a material adverse impact on Maverix’s business, operating results, financial condition and the market for its securities. As at the date of this AIF, the duration of any business disruptions and related financial impact of the COVID-19 outbreak cannot be reasonably estimated. It is unknown whether and how Maverix may be affected if such pandemic, such as the COVID-19 outbreak, persists for an extended period of time.

Though the current COVID-19 global health pandemic is significantly impacting the global economy, commodity and financial markets, as at the date of this AIF, Maverix is only aware of two operations in which it holds a royalty or stream interest that were temporarily suspended during the financial year ended December 31, 2020, being the La Colorada mine and the San Jose mine. Both operations have since resumed operations.

Changes in Commodity Prices that underlie Royalty, Stream or Other Interests

The price of Maverix’s Common Shares may be significantly affected by declines in commodity prices. The revenue derived by Maverix from its asset portfolio will be significantly affected by changes in the market price of commodities that underlie the Royalty, Stream or other investments or interests of Maverix. Maverix’s revenue is particularly sensitive to the changes in the price of gold and silver. The cash flows and revenues derived from the La Colorada Stream are dependent on the price of gold and gold production from that asset. The price of gold and other commodities fluctuates daily and are affected by factors beyond the control of Maverix, including levels of supply and demand, industrial development, inflation and interest rates, the U.S. dollar’s strength and geo-political events. External economic factors that affect commodity prices can be influenced by changes in international investment patterns, monetary systems and political developments.

All commodities, by their nature, are subject to wide price fluctuations and future material price declines will result in a decrease in revenue or, in the case of severe prolonged declines that cause a suspension or termination of production by relevant operators, a complete cessation of revenue from Royalties, Streams or working interests applicable to one or more relevant commodities. While Maverix has focused on assembling a portfolio of assets that provide primary exposure to gold and silver production and prices, the commodity market trends are cyclical in nature and a general downturn in commodity prices could result in a significant decrease in overall revenue.

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Maverix Has No Control Over Mining Operations

Maverix is not directly involved in the operation of mines. The revenue Maverix may derive from its portfolio of Royalty and Stream interests is based on production from third party mine owners and operators, of which Maverix will not have a direct interest in the operation or ownership of those mines and projects. The owners and operators generally will have the power to determine the manner in which the properties are exploited, including decisions to expand, continue or reduce, suspend or discontinue production from a property, decisions about the marketing of products extracted from the property and decisions to advance exploration efforts and conduct development of non-producing properties. The interests of third-party owners and operators and those of Maverix in respect of a relevant project or property may not always be aligned. The inability of Maverix to control the operations for the properties in which it has a Royalty, Stream or other interest may result in a material adverse effect on the profitability of Maverix, the results of operations of Maverix and its financial condition. Except in a limited set of circumstances as specified in a specific Stream or Royalty, Maverix will not receive compensation if a specific mine or operation fails to achieve or maintain production or if the specific mine or operation is closed or discontinued. In addition, mining operations in respect of which Maverix holds an indirect interest may not commence commercial production and there can be no assurance that such mines or projects will achieve profitable and continued production levels. In addition, the owners or operators may take action contrary to policies or objectives of Maverix; be unable or unwilling to fulfill their obligations under their agreements with Maverix; have difficulty obtaining or be unable to obtain the financing necessary to move projects forward; or experience financial, operational or other difficulties, including insolvency, which could limit the owner or operator’s ability to perform its obligations under arrangements with Maverix. Maverix is also subject to the risk that a specific mine or project may be put on care and maintenance or have its operations suspended on a temporary or permanent basis.

The owners or operators of the projects or properties in which Maverix holds an interest may from time to time announce transactions, including the sale or transfer of the projects or of the operator itself, over which Maverix has little or no control. If such transactions are completed it may result in a new operator controlling the project, who may or may not operate the project in a similar manner to the current operator which may positively or negatively impact Maverix. If any such transaction is announced, there is no certainty that such transaction will be completed, or completed as announced, and any consequences of such non-completion on Maverix may be difficult or impossible to predict.

Variations in Foreign Exchange Rates

The operations of Maverix are subject to foreign currency fluctuations and inflationary pressures, which may have a material adverse effect on the profitability of Maverix, its result of operations and financial condition. There can be no assurance that the steps taken by management to address such fluctuations will eliminate the adverse effects and Maverix may suffer losses due to adverse foreign currency fluctuations.

Market Price of the Common Shares of Maverix

The Common Shares of Maverix are listed and posted for trading on the TSX and the NYSE American. An investment in the securities of Maverix is highly speculative. The market price of securities of companies involved in the mining and natural resources industry have experienced substantial volatility in the past and are currently experience extreme volatility currently as a result of the COVID-19 global pandemic. The price of the Common Shares is likely to be influenced by changes in commodity prices, the financial condition of Maverix or results of operations as reflected in the financial statements of Maverix and other risk factors identified in this AIF. The extent to which COVID-19 impacts the market for securities of Maverix, will depend on future developments, which are highly uncertain and cannot be predicted at this time, and include the duration, severity and scope of the COVID-19 outbreak and the actions taken to contain or treat the COVID-19 outbreak.

Delay Receiving or Failure to Receive Payments

Maverix is dependent upon the financial viability and operational effectiveness of owners and operators of the relevant mines and mineral properties underlying Maverix’s Royalties and Streams. Payments from production generally flow through the operator and there is a risk of delay and additional expense in receiving such revenues. Payments may be delayed by restrictions imposed by lenders, delays in the sale or delivery of products, the ability or willingness of smelters and refiners to process mine products, recovery by the operators of expenses incurred in the operation of the mines, the establishment by the operators of reserves for such expenses or the insolvency of the operator. Maverix’s rights to payment under the Royalties/Streams must, in most cases, be enforced by contract without the protection of the ability to liquidate a property. This inhibits Maverix’s ability to collect amounts owing under its Royalties/Streams upon a default. Additionally, some agreements may provide limited recourse in particular circumstances which may further inhibit Maverix’s ability to recover or obtain equitable relief in the event of a default under such agreements. In the event of a bankruptcy of an operator or owner, it is possible that an operator may claim that Maverix should be treated as an unsecured creditor and, therefore, have a limited prospect for full recovery of amounts owed and a possibility that a creditor or the operator may claim that the Royalty or Stream agreement should be terminated in the insolvency proceeding. Failure to receive payments from the owners and operators of the relevant properties or termination of Maverix’s rights may result in a material and adverse effect on Maverix’s profitability, results of operations and financial condition.

Third Party Reporting

Maverix relies on public disclosure and other information regarding specific mines or projects that is received from the owners or operators of the mines or other independent experts. The information received may be susceptible to being imprecise as the result of it being compiled by certain third parties. The disclosure created by Maverix may be inaccurate if the information received contains inaccuracies or omissions, which could create a material adverse effect on Maverix.

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In addition, a Royalty or Stream agreement may require an owner or operator to provide Maverix with production and operating information that may, depending on the completeness and accuracy of such information, enable Maverix to detect errors in the calculation of Royalty or Stream amounts owed. As a result, the ability of Maverix to detect payment errors through its associated internal controls and procedures is limited, and the possibility exists that Maverix will need to make retroactive adjustments. Of the Royalty or Stream agreements that Maverix enters into, some may provide Maverix the right to audit the operational calculations and production data for associated payments; however, such audits may occur many months following the recognition by Maverix of the applicable revenue and may require Maverix to adjust its revenue in later periods.

As a holder of an interest in a Royalty or Stream, Maverix will have limited access to data on the operations or to the actual properties underlying the Royalty or Stream. This limited access to data or disclosure regarding operations could affect the ability of Maverix to assess the performance of the Royalty or Stream. This could result in delays in cash flow from that which is anticipated by Maverix based on the stage of development of the properties covered by the assets within the portfolio of Maverix.

Disclosure Regarding Operations

Some Royalties or Streams may be subject to confidentiality arrangements which govern the disclosure of information with regard to the Royalty or Stream and, as such, Maverix may not be in a position to publicly disclose non-public information with respect to certain Royalties or Streams. The limited access to data and disclosure regarding the operations of the properties in which Maverix has an interest, may restrict the ability of Maverix to enhance its performance which may result in a material and adverse effect on the profitability of Maverix, results of operations for Maverix and financial condition. There can be no assurance that Maverix will be successful in obtaining these rights when negotiating the acquisition of Royalties or Streams.

Strategy for Acquisitions

As Maverix executes on its business plan it will seek to purchase Royalties and Streams from third parties. Maverix cannot offer any assurance that it can complete any acquisition or proposed business transactions on favourable terms or at all, or that any completed acquisitions or proposed transactions will benefit Maverix.

At any given time Maverix may have various types of transactions and acquisition opportunities in various stages of review, including submission of indications of interest and participation in discussions or negotiations in respect of such transactions. This process also involves the engagement of consultants and advisors to assist in analyzing particular opportunities. Any such acquisition or transaction could be material to Maverix and may involve the issuance of securities by Maverix to fund any such acquisition. In addition, any such acquisition or other Royalty or Stream transaction may have other transaction specific risks associated with it, including risks related to the completion of the transaction, the project operators or the jurisdictions in which assets may be acquired.

Additionally, Maverix may consider opportunities to restructure its Royalties or Streams where it believes such a restructuring may provide a long-term benefit to Maverix, even if such restructuring may reduce near-term revenues or result in Maverix incurring transaction related costs. Maverix may enter into one or more acquisitions, restructurings or other Royalty and Streaming transactions at any time.

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Maverix Cash Flow Risk

Maverix is not directly involved in the ownership or operation of mines. Maverix’s Royalty, Stream and other interests in properties or projects are subject to most of the significant risks of the operating mining company. Maverix’s cash flow is dependent on the activities of third parties which could create risk that those third parties may, have targets inconsistent to Maverix’s targets, take action contrary to Maverix’s goals, policies or objectives, be unwilling or unable to fulfill their contractual obligations owed to Maverix, or experience financial, operational or other difficulties or set backs, including bankruptcy or insolvency proceedings, which could limit a third party’s ability to perform under a specific third party arrangement. Specifically, Maverix could be negatively impacted by an operator’s ability to continue its mining operations as a going concern and have access to capital. A lack of access to capital could result in a third party entering a bankruptcy proceeding, which would result in Maverix being unable to realize any value for its Stream, Royalty or other interest.

Change in Material Assets

As at the date of this AIF, the La Colorada Stream is currently a material asset to Maverix, although as new assets are acquired or move into production, the materiality of each of the assets of Maverix will be reconsidered. Any adverse development affecting the operation of, production from or recoverability of mineral reserves from the La Colorada mine, or any other significant property in the asset portfolio from time to time, such as, but not limited to, unusual and unexpected geologic formations, seismic activity, rock bursts, cave-ins, flooding and other conditions involved in the drilling and removal of material, any of which could result in damage to, or destruction of, mines and other producing facilities, damage to life or property, environmental damage, or the inability to hire suitable personnel and engineering contractors or secure supply agreements on commercially suitable terms, may have a material adverse effect on the profitability of Maverix, the financial condition of Maverix and results of its operations.

Dependence on Key Personnel

Maverix is dependent on the services of a small number of key management personnel. The ability of Maverix to manage its activities and its business will depend in large part on the efforts of these individuals. There can be no assurance that Maverix will be successful in engaging or retaining key personnel. The loss of the services of a member of the management of Maverix could have a material adverse effect on the Company. From time to time, Maverix may also need to identify and retain additional skilled management and specialized technical personnel to efficiently operate its business. The number of persons skilled in the acquisition of Royalties and or Streams is limited and competition for such persons is intense. Recruiting and retaining qualified personnel is critical to the success of Maverix and there can be no assurance that Maverix will be successful in recruiting and retaining the personnel it needs to successfully operate its business. If Maverix is not successful in attracting and retaining qualified personnel, the ability of Maverix to execute on its business model and strategy could be affected, which could have a material and adverse impact on its profitability, results of operations and financial condition.

Competition

Maverix will compete with other companies for Streams and Royalties. Other companies may have greater resources than Maverix. Any such competition may prevent Maverix from being able to secure new Streams or acquire new Royalties. Future competition in the royalty and streaming sector could materially adversely affect Maverix’s ability to conduct its business. There can be no assurance that Maverix will be able to compete successfully against other companies in acquiring new Royalty and or Stream interests. In addition, Maverix may be unable to acquire Royalties or Streams at acceptable valuations which may result in a material and adverse effect on Maverix’s profitability, results of operations and financial condition.

Project Operators may not Respect Contractual Obligations

Royalty, Stream and other interests in properties or projects are contractual in nature. Parties to contracts do not always honour contractual terms and contracts themselves may be subject to interpretation or technical defects. To the extent grantors of Royalties, Stream and other interests do not abide by their contractual obligations, Maverix may be forced to take legal action to enforce its contractual rights. Such litigation may be time consuming and costly and there is no guarantee of success. Any pending proceedings or actions or any decisions determined adversely to Maverix, may have a material and adverse effect on Maverix’s profitability, results of operations, financial condition and the trading price of the Common Shares of Maverix.

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Rights of other Interest-Holders

Some Royalty and Stream interests are, or may be, subject to buy-down or step-down provisions pursuant to which an operator or counterparty may buy back all or a portion of the Royalty or Stream, or, the rate of the Royalty or Stream may decrease on the occurrence of certain events, pre-emptive rights pursuant to which certain parties may have a right of first refusal or first offer with respect to a proposed sale or assignment of a Royalty or Stream to Maverix, or even claw back rights pursuant to which a seller of a Royalty or Stream to Maverix has a right to re-acquire the Royalty or Stream, or a portion thereof. The exercise of these types of rights, or their occurrence, may impact Maverix’s investment in the Royalty or Stream and could produce material adverse effects on Maverix’s income and business.

Defects in Royalties or Streams

A defect in a contract underlying a Royalty, Stream or other interest in a property or project may arise that impacts the claim of Maverix to the Royalty, Stream or other interest in a property or project. A defect in an underlying contract may result in a material advise impact to Maverix’s profitability, results of operations, financial condition and or the trading price of Maverix’s Common Shares.

Concentration of Share Ownership

As at the date of this AIF, Newmont owns approximately 29.8% of the outstanding Common Shares (on a non-diluted basis), Pan American owns approximately 18.1% of the outstanding Common Shares (on a non-diluted basis), and Kinross owns approximately 8.0% of the outstanding Common Shares (on a non-diluted basis). As a result of the share ownership, and pursuant to the Shareholders’ Agreements (as defined below), Pan American and Newmont each maintain certain rights including, but not limited to, a right to maintain their pro rata interest in Maverix should Maverix issue or sell any securities and a right to board appointees. Kinross, pursuant to an investor agreement, also maintains certain rights to maintain its pro rata interest in Maverix. The concentrated share ownership of Pan American, Newmont and Kinross could have the effect of delaying or preventing a change of control. See “Material Contracts – Shareholder Agreements”.

Compliance with Terms of Credit Facility

There is no assurance that the Credit Facility, or any other credit facilities or agreements that Maverix enters into, will be renewed or refinanced, or if renewed or refinanced, that the renewal or refinancing will occur on equally favorable terms to Maverix. The Credit Facility is secured by a portion of Maverix’s assets and places covenants and continuing obligations on Maverix. There is a risk that Maverix defaults on its obligations under the Credit Facility which could result in the lenders realizing on the security.

Equity Investment Price Risk

From time-to-time Maverix holds common shares, warrants and other equity investments in other exploration and mining companies exposing it to equity price risk because of these investments. The applicable daily traded volume of any of the securities that underly an equity investment may not be sufficient to enable Maverix to liquidate a position in a short period of time without affecting the market value of such securities. In some cases, there may not be a market at all for the securities that underlie an equity investment. There are risks associated with an investment in Maverix and Maverix will be exposed to similar risks in making investments in the equity securities of other exploration and mining companies. Maverix does not actively trade the investments. Equity prices of long-term investments are impacted by various factors, including commodity prices.

Regulatory Risks – LIBOR

Maverix’s contracts, other arrangements, or financing terms may rely in some fashion on the London Inter-Bank Offered Rate (“LIBOR”). LIBOR is an average interest rate, determined by the ICE Benchmark Administration, that banks charge one another for the use of short-term money. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has announced plans to phase out the use of LIBOR by the end of 2021. There remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement rate. Any potential effects of the transaction away from LIBOR on Maverix can be difficult to ascertain, and they may vary depending on whether, how, and when industry participants develop and adopt new reference rates. For example, an investment made by Maverix may involve a contract that does not contain language that contemplates the discontinuation of LIBOR, and, as a result, that particular investment could experience increased volatility or illiquidity because of the transition process. In addition, interest rate provisions included in contracts or other arrangements entered into by Maverix may need to be renegotiated in contemplation of the transition away from LIBOR. The transition may also result in a change in the cost of borrowing for Maverix. Any such effect of the transition away from LIBOR, as well as other unforeseen effects, could have a negative impact on Maverix’s operations.

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Conflicts of Interest

Certain directors and officers of Maverix also serve as directors and/or officers of other companies that are involved in natural resource exploration, development and mining operations, including Newmont and Pan American, and consequently there exists the possibility for such directors and officers to be in a position where there is a conflict of interest. Any decision made by any such directors and officers will be made in accordance with their duties and obligations to deal in good faith and in the best interests of Maverix and its shareholders. Each director that is in a conflict of interest is required to declare such conflict and abstain from voting on a matter in which that director is conflicted in accordance with applicable law.

Future Financing and Future Securities Issuances

There can be no assurance that Maverix will be able to obtain adequate financing in the future or that the terms of such financing will be favourable. Failure to obtain such additional financing result in delay or postponement of further royalty or stream creation or acquisition activities which may result in a material and adverse effect on Maverix’s profitability, results of operations and financial condition. Maverix may require new capital to continue to grow its business and there are no assurances that capital will be available when needed, if at all. It is likely that, at least to some extent, such additional capital will be raised through the issuance of additional equity, which could result in dilution to shareholders.

Litigation affecting Properties

Potential litigation may arise on a property on which Maverix holds or has a Royalty or Stream interest (for example, litigation between joint venture partners or between operators and original property owners or neighbouring property owners). Maverix will not generally have any influence on the litigation and will not generally have access to data. Any such litigation that results in the cessation or reduction of production from a property (whether temporary or permanent) could have a material and adverse effect on Maverix’s profitability, results of operations, financial condition and the trading price of the Common Shares of Maverix.

Changes in and interpretation of Tax Laws Impacting Maverix

The introduction of new tax laws or regulations, or changes to, or differing interpretation of, or application of, existing tax laws or regulations in Canada, Australia, and the United States or any of the countries in which the mining operations that Maverix holds an interest in are located, could result in an increase in the Company’s taxes, or other governmental charges, duties, withholding taxes or impositions. Any such change, implementation or differing interpretation of new or existing tax laws or regulations could adversely affect Maverix’s ability to conduct its business. No assurance can be given that new taxation rules or accounting policies will not be enacted or that existing rules will not be applied in a manner which could result in the profits of Maverix being subject to additional taxation or which could otherwise have a material adverse effect on the profitability of Maverix, Maverix’s results of operations, financial condition and the trading price of the Common Shares of Maverix. In addition, the introduction of new tax rules or accounting policies, or changes to, or differing interpretations of, or application of, existing tax rules or accounting policies could make Royalties, Streams or other investments by Maverix less attractive to counterparties. Such changes could adversely affect the ability of Maverix to acquire new assets or make future investments.

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Failure to Maintain Adequate Internal Control over Financial Reporting

The Company is required to assess its internal controls in order to satisfy the requirements of applicable securities laws which require an annual assessment by management of the effectiveness of the Company’s internal control over financial reporting. The Company may fail to achieve and maintain the adequacy of its internal control over financial reporting, as such standards are modified, supplemented or amended from time to time, and the Company may not be able to ensure that it can conclude on an ongoing basis that it has effective internal controls over financial reporting in accordance with applicable laws. The Company’s failure to satisfy applicable requirements on an ongoing, timely basis could result in the loss of investor confidence in the reliability of its financial statements which, in turn, could harm the Company’s business and negatively impact the market value of the Company’s Common Shares. In addition, any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm the Company’s operating results or cause it to fail to meet its reporting obligations. There can be no assurance that the Company will be able to remediate material weaknesses, if any, identified in future periods, or maintain all of the controls necessary for continued compliance, and there can be no assurance that the Company will be able to retain sufficient skilled finance and accounting personnel.

Future acquisitions of companies, if any, may provide the Company with challenges in implementing the required processes, procedures and controls in its acquired operations. Future acquired companies, if any, may not have disclosure controls and procedures or internal control over financial reporting that are as thorough or effective as those required by securities laws currently applicable to the Company.

No evaluation can provide complete assurance that the Company’s internal control over financial reporting will detect or uncover all failures of persons within the Company to disclose material information otherwise required to be reported. The effectiveness of the Company’s controls and procedures could also be limited by simple errors or faulty judgments. In addition, as the Company continues to expand, the challenges involved in implementing appropriate internal controls over financial reporting will increase and will require that the Company continue to improve its internal controls over financial reporting. Although the Company intends to devote substantial time and incur costs, as necessary, to ensure compliance, the Company cannot be certain that it will be successful in complying with applicable requirements on an ongoing basis.

Information Systems and Cyber Security

The Company’s information systems, and those of its counterparties under the Stream and Royalty agreements and vendors, are vulnerable to an increasing threat of continually evolving cybersecurity risks. Unauthorized parties may attempt to gain access to these systems or the Company’s information through fraud or other means of deceiving the Company’s, its suppliers or its counterparties. The Company’s operations depend, in part, on how well the Company and its suppliers, as well as counterparties under the Royalty and Stream agreements, protect networks, equipment, information technology systems and software against damage from several threats. The failure of information systems or a component of information systems could, depending on the nature of any such failure, adversely impact the Company’s reputation and results of operations. Although to date the Company has not experienced any material losses relating to cyber-attacks or other information security breaches, there can be no assurance that the Company will not incur such losses in the future. The Company’s risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving nature of these threats. As a result, cyber security and the continued development and enhancement of controls, processes and practices designed to protect systems, computers, software, data and networks from attack, damage or unauthorized access remain an area of attention.

Shareholder Activism

Publicly traded companies can be subject to campaigns by activist shareholders who are advocating for changes to corporate governance practices, certain corporate actions or reorganizations or to seek changes in respect of prevalent social issues. Such campaigns undertaken by activist shareholders can include, proxy contests, media campaigns and or other activities. Maverix can provide no assurance that it will not be subject to such a campaign. It could be costly and time consuming for Maverix to respond to a campaign and there could occur a material adverse effect on Maverix’s share price and corporate reputation. Responding to such a campaign could divert the attention and resources of Maverix’s management and Board which could result in an adverse effect on Maverix’s business, future strategic direction and as well result in the loss of future business opportunities and Maverix’s ability to attract and retain qualified personnel.

Reputation Damage

Damage to Maverix’s corporate reputation could result from the actual or perceived occurrence of any number of events, and could include negative publicity, whether true or false and misleading. Maverix has no direct control over how it is perceived and reputational damage could result in loss and have a material adverse effect on Maverix’s financial performance, financial condition, cash flows and future corporate development activities.

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Risks Related to Mines and Mining Operations

Risk Factors applicable to Owners and Operators of Properties in which Maverix holds an Interest

To the extent that they relate to the production of minerals from or the continued operation of, properties in which Maverix holds a Royalty or Stream interest, Maverix will be subject to the risk factors applicable to the owners and operators of such mines or projects.

Public Health Crises, including COVID-19

The business, operations and financial condition of the companies and projects in which Maverix has invested or may hold an interest, could be materially adversely affected by the outbreak of epidemics, pandemics or other public health crises, such as the COVID-19 outbreak. The extent to which COVID-19 impacts the business, operations and the market for securities of Maverix’s operating partners, will depend on future developments, which are highly uncertain and cannot be predicted at this time, and include the duration, severity and scope of the COVID-19 outbreak and the actions taken to contain or treat the outbreak. In particular, the continued spread of COVID-19 globally could materially and adversely impact the mines in which Maverix holds an interest or could create slowdowns or temporary suspensions of operations.

Exploration, Development and Operating Risks

Mining involves a high degree of risk. Mines and projects in which Maverix has or may enter into a Royalty or Stream agreement are subject to all of the hazards and risks normally encountered in the exploration, development and production of metals, including weather-related events, unusual and unexpected geology formations, seismic activity, rock bursts, cave-ins, pit-wall failures, flooding, environmental hazards and the discharge of toxic chemicals, explosions and other conditions involved in the drilling, blasting and removal of material, any of which could result in damage to, or destruction of, mines and other producing facilities, damage to property, injury or loss of life, environmental damage, work stoppages, delays in production, increased production costs and possible legal liability. Any of these hazards and risks and other acts of God could shut down mining operations temporarily or permanently. Mining operations are subject to hazards such as equipment failure or failure of retaining dams around tailings disposal areas which may result in environmental pollution and consequent liability for the owners or operators of the mining operations.

Commodity Prices

Metal prices are subject to fluctuation and any future significant decline could result in mines, mining operations and project development to cease. Owners and operators of mines and development projects could be forced to cease operations or discontinue development of a particular project, which could materially adversely affect Maverix’s business operations and profitability.

Environmental Risks

All phases of mine operation or development are subject to governmental regulation including environmental regulation in the various jurisdictions in which they operate. Environmental legislation is evolving in a manner which will require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and heightened responsibility for companies and their officers, directors and employees. There is no assurance that future changes in environmental regulation, if any, will not adversely affect the mines and projects in which Maverix has an interest and consequently, the results of Maverix’s operations. Also, unknown environmental hazards may exist on the properties at present which were caused by previous or existing owners or operators of the properties and which could impair the commercial success, levels of production and continued feasibility and project development and mining operations on these properties. One or more of the mining companies may become liable for such environmental hazards caused by previous owners or operators of the properties.

Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions thereunder, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment or remedial actions. Parties engaged in mining operations or in the exploration or development of mineral properties may be required to compensate those suffering loss or damage by reason of the mining activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations. The occurrence of any environmental violation or enforcement action may have an adverse impact on the operations at the mines and projects in which Maverix has an interest in, could adversely affect Maverix’s reputation and Maverix’s results of operations.

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Government Regulation, Permits and Authorizations

The exploration and development activities related to mine operations are subject to extensive laws and regulations governing exploration, development, production, exports, taxes, labour standards, waste disposal, protection and remediation of the environment, reclamation, historic and cultural resources preservation, mine safety and occupational health, handling, storage and transportation of hazardous substances and other matters.

The costs of discovering, evaluating, planning, designing, developing, constructing, operating and closing specific mine operations in compliance with such laws and regulations are significant. It is possible that the costs and delays associated with compliance with such laws and regulations could become such that the owners or operators of mines or projects would not proceed with the development of, or continue to operate, a mine. Moreover, it is possible that future regulatory developments, such as increasingly strict environmental protection laws, regulations and enforcement policies thereunder and claims for damages to property and persons resulting from mining operations could result in substantial costs and liabilities for the owners or operators of mines or projects in the future such that they would not proceed with the development of, or continue to operate, a mine.

Government approvals, licences and permits are currently, and will in the future be, required in connection with mining operations. To the extent such approvals are required and not obtained, mining operations may be curtailed or prohibited from proceeding with planned operations, which could have an impact on the business and financial condition of Maverix. Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions thereunder, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed.

Amendments to current laws, regulations and permits governing operations and activities of mining companies, or more stringent implementation thereof, could have a material adverse impact on mining operations, resulting in increased capital expenditures or production costs, reduced levels of production at producing properties or abandonment or delays in development of properties.

Climate Change

Climate change legislation and treaties are being introduced more frequently by governments globally. Regulation in respect of emission levels and the efficient use of energy is becoming more stringent. Continuation of the current regulatory trend in respect of climate change could have the impact of increasing costs at those mining operations that Maverix has an investment in. Climate change could produce adverse impacts to underlying mining operations through the disruption of mining operations and their associated resource supply lines because of extreme weather events and natural disasters. There can be no assurance that efforts to mitigate risks from climate change can be effective and that physical risks resulting from climate change will not have an adverse impact on mining operations.

Permitting

The operation of a mine or project is subject to receipt and maintenance of permits from appropriate governmental authorities. Although Maverix believes that, other than as discussed elsewhere herein, the owners and operators of the mines and projects in which Maverix has an interest currently have all required permits for their respective operations as currently conducted, there is no assurance that delays will not occur in connection with obtaining all necessary renewals of such permits for the existing operations, additional permits for any possible future changes to operations, or additional permits associated with new legislation. Prior to any development on any of the properties, permits from appropriate governmental authorities may be required. There can be no assurance that the owners or operators of the mines or projects will continue to hold all permits necessary to develop or continue operating at any particular property.

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Infrastructure

Natural resource exploration, development and mining activities are dependent on the availability of mining, drilling and related equipment in the particular areas where such activities are conducted. A limited supply of such equipment or access restrictions may affect the availability of such equipment to the owners and operators of mines or projects and may delay exploration, development or extraction activities. Certain equipment may not be immediately available or may require long lead time orders. The lack of availability on acceptable terms or the delay in the availability of any one or more of these items could prevent or delay exploration, development or production at a mine or project. Mining, processing, development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important determinants which affect capital and operating costs. Unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect operations at a mine or project.

Dependence on Operator’s Employees

Production from the properties in which Maverix holds an interest depends on the efforts of operators’ employees. There is competition for persons with mining expertise. The ability of the owners and operators of such properties to hire and retain geologists and persons with mining expertise is key to those operations. Further, relations with employees may be affected by changes in the scheme of labour relations that may be introduced by the relevant governmental authorities in the jurisdictions in which those operations are conducted. Changes in such legislation or otherwise in the relationships of the owners and operators of such properties with their employees may result in strikes, lockouts or other work stoppages, any of which could have a material adverse effect on such operations, results of operations and financial condition of Maverix. If these factors cause the owners and operators of such properties to decide to cease production at one or more of the properties, such decision could have a material adverse effect on the business and financial condition of Maverix.

Mineral Resource and Mineral Reserve Estimates

Mineral reserve and or mineral resource estimates for a specific mine or project may not be correct. The figures for mineral resources and mineral reserves in this AIF are estimates only and were obtained from technical reports filed in respect of the La Colorada mine. There can be no assurance that estimated mineral reserves and mineral resources will ever be recovered or recovered at the rates as estimated. Mineral reserve and mineral resource estimates are based on sampling and geological interpretation and are uncertain because samples used may not be representative. Mineral reserve and mineral resource estimates require revision (either to demonstrate an increase or decrease) based on production from the mine or project. The fluctuations of commodity prices and production costs, as well as changes in recovery rates, may render certain mineral reserves and mineral resources uneconomic and may result in a restatement of estimated reserves and/or mineral resources.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty of mineral resources, there is no assurance that mineral resources will be upgraded to proven and probable mineral reserves as a result of continued exploration.

Depleted Mineral Reserve Replacement

Mines have a limited time of operation as a result of the proven and probable mineral reserves attributed to a specific mine. A mining company operating a specific mine will be required to replace and expand mineral reserves depleted by a mine’s production to maintain production levels over a long term. It is possible to replace depleted mineral reserves by expanding known ore bodies through exploration, locating new deposits or acquiring new mines or projects. Mineral exploration is highly speculative in nature. It can take several years to develop a potential site of mineralization. There is no assurance that current or future exploration programs conducted by mining companies will be successful. There is a risk that the depletion of mineral reserves by mining companies that Maverix has contracted with will not be replenished by discoveries or acquisitions.

Employee Relations

Production at mines or projects in which Maverix holds an interest depend on the efforts of employees. There is global competition for geologists and persons with mining expertise. The ability of a mining company to hire and retain geologists and persons with mining expertise is key to the specific mines or projects in which Maverix holds or may hold an interest. Further, relations with employees may be affected by changes in the scheme of labour relations that may be introduced by the relevant governmental authorities in the jurisdictions in which specific mines operate or in which a specific project is conducted. Changes in such legislation or otherwise in a mining company’s relationships with their employees may result in strikes, lockouts or other work stoppages, any of which could have a material adverse effect on the operation of mines or projects, the results of operations and financial condition.

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Uninsured Risks

The mining industry is subject to significant risks that could result in damage to, or destruction of, mineral properties or producing facilities, personal injury or death, environmental damage, delays in mining, monetary losses and possible legal liability. Where a mining company considers it practical to do so, it maintains insurance in amounts that it believes to be reasonable, including insurance for workers’ compensation, theft, general liability, all risk property, automobile, directors and officers liability and fiduciary liability and others. Such insurance, however, contains exclusions and limitations on coverage. Accordingly, a mining company’s insurance policies may not provide coverage for all losses related to their business (and specifically do not cover environmental liabilities and losses). The occurrence of losses, liabilities or damage not covered by such insurance policies could have a material adverse effect on the mining companies’ profitability, results of operations and financial condition.

Land Title

Although title to specific mines or projects has been or will be reviewed by or on behalf of Maverix, no assurances can be given that there are no title defects affecting the properties and mineral claims owned or used by specific mines or projects. Companies may not have conducted surveys of the claims in which they hold direct or indirect interests; therefore, the precise area and location of such claims may be in doubt. It is possible that a specific mine or project may be subject to prior unregistered liens, agreements, transfers or claims, including native land claims, and title may be affected by, among other things, undetected defects. In addition, mining companies may be unable to operate the specific mine or project as permitted or to enforce their rights with respect to that specific mine or project which may ultimately impair the ability of these owners and operators to fulfill their obligations under their agreements with Maverix.

International Interests

Certain operations that underlie Maverix’s Streams and Royalties are conducted, or will be conducted, outside of the United States and Canada, including in Mexico, Peru, Chile, Australia, Argentina, Burkina Faso, Honduras, the Dominican Republic, French Guiana, Russia, Côte d’Ivoire, Ghana, New Zealand, Brazil and the Democratic Republic of the Congo and could be exposed to political, economic or other risks or uncertainties. These types of risks or uncertainties may differ between countries and can include but are not limited to, terrorism, hostage taking, military repression, crime, political instability, currency controls, fluctuations in currency exchange rates, inflation rates, labour unrest, risk of war or civil unrest, expropriation and nationalization, renegotiation or nullification of mining or mineral concessions, licenses, permits, authorizations and contracts, illegal mining or mineral exploration, taxation changes, modifications, amendments or changes to mining and mineral laws, regulations, policies, and changes to government regulations in respect of foreign investment and mining.

Permitting, Construction and Development

Certain mines and projects that Maverix may seek to invest in may be in various stages of permitting, construction, development and expansion. Construction, development and expansion of such mines or projects is subject to numerous risks, including, but not limited to: delays in obtaining equipment, materials, and services essential to completing construction of such projects in a timely manner; delays or inability to obtain all required permits; changes in environmental or other government regulations; currency exchange rates; labour shortages; and fluctuation in metal prices. There can be no assurance that the owners or operators of such mines or projects will have the financial, technical and operational resources to complete the permitting, construction, development and expansion of such mines or projects in accordance with current expectations or at all.

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Indigenous Peoples

Various international and national laws, codes, resolutions, conventions, guidelines, and other materials relate to the rights of indigenous peoples. Maverix holds Royalty or Stream interests on operations located in some areas presently or previously inhabited or used by indigenous peoples. Many of these materials impose obligations on government to respect the rights of indigenous people. Some mandate that government consult with indigenous people regarding government actions which may affect indigenous people, including actions to approve or grant mining rights or permits. The obligations of government and private parties under the various international and national materials pertaining to indigenous people continue to evolve and be defined. The mining companies’ current or future operations are subject to a risk that one or more groups of indigenous people may oppose continued operation, further development, or new development on those projects or operations on which Maverix holds a Royalty or Stream interest. Such opposition may be directed through legal or administrative proceedings or protests, roadblocks or other forms of public expression against the Company or the owner/operators’ activities. Opposition by indigenous people to such activities may require modification of or preclude operation or development of projects or may require the entering into of agreements with indigenous people. Claims and protests of indigenous people may disrupt or delay activities of the owners/operators of Maverix’s Royalty or Stream assets.

Risks Related to the Securities of Maverix

Securities of Maverix are subject to Price Volatility

Capital and securities markets have a high level of price and volume volatility, and the market price of securities of many companies have experienced wide fluctuations in price which have not necessarily been related to the operating performance, underlying asset values or prospects of such companies. Factors unrelated to the financial performance or prospects of Maverix include macroeconomic developments in North America and globally, and market perceptions of the attractiveness of particular industries or asset classes. Global public health crises can also result in global stock market and financial market volatility, as a result of declining trade and market sentiment, reduced movement of people and labour shortages, and travel and shipping disruption and shutdowns, including as a result of government regulation and prevention measures, or a fear of any of the foregoing, all of which could affect commodity prices, interest rates, credit ratings, credit risk and inflation. There can be no assurance that continued fluctuations in mineral or commodity prices will not occur. As a result of any of these factors, the market price of the Common Shares of Maverix at any given time may not accurately reflect the long-term value of Maverix.

In the past, following periods of volatility in the market price of a company’s securities, shareholders have instituted class action securities litigation against them. Such litigation, if instituted, could result in substantial cost and diversion of management attention and resources, which could significantly harm profitability and the reputation of Maverix.

Dividend Policy

Although the Company paid a dividend in respect of each calendar quarter of the financial year ended December 31, 2020 (see “Dividends”), the Company may not be in a position to declare or pay dividends in the future. Payment of any future dividends will be at the discretion of the Board, after taking into account a multitude of factors appropriate in the circumstances, including the Company’s operating results, financial condition and current and anticipated cash needs.

Limitations on the enforcement of Civil Judgments

A substantial portion of the assets of Maverix are located outside of Canada. As a result, it may not be possible for investors in the securities of Maverix to collect on judgments obtained in courts in Canada predicated on the civil liability provisions of securities legislation of certain of the provinces and territories of Canada.

Passive Foreign Investment Company Status for the Financial Year Ended December 31, 2020

Certain adverse U.S. federal income tax consequences may result for U.S. investors if Maverix was determined to be a passive foreign investment company” (“PFIC”) within the meaning of Section 1297 of the Internal Revenue Code of 1986 (the “Code”) for the current or a future tax year. The determination of PFIC status is inherently factual, is subject to a number of uncertainties, and can be determined only annually at the close of the tax year in question. Although the Company has not made a formal determination as to whether it was a PFIC for the tax year ended December 31, 2020 and does not plan to make such a determination for subsequent years, there could be a risk that it was a PFIC for the tax year ended December 31, 2020 and anticipates that there could be a risk that it will be a PFIC in subsequent years.

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If Maverix was considered to be a PFIC for any tax year during a period where a U.S. investor held Common Shares, then such U.S. investor generally will be subject to a special, highly adverse tax regime with respect to so-called “excess distributions” received on Common Shares. Gains realized upon a disposition of Common Shares held by a U.S. investor (including upon certain dispositions that would otherwise be tax-free) also will be treated as excess distributions. Excess distributions are punitively taxed and are subject to additional interest charges. Additional special adverse rules also apply to U.S. investors who own Common Shares to mitigate the adverse tax rules that apply to PFICs, but these elections may accelerate the recognition of taxable income and may result in the recognition of ordinary income. Each U.S. investor should consult its own tax advisor regarding the tax consequences of the PFIC rules and the acquisition, ownership, and disposition of Common Shares.

Material ASSETS

As at the date of this AIF the Company’s Stream on the La Colorada mine, is its’ material asset.

La Colorada Mine, Mexico

A technical report was prepared for Pan American pursuant to NI 43-101 entitled “Technical Report for the La Colorada Property, Zacatecas, Mexico” and dated December 31, 2019 (the “La Colorada Report”).

The following description of the La Colorada mine has been prepared in reliance, in part, on the La Colorada Report and the Pan American AIF and readers should consult the La Colorada Report and the Pan American AIF to obtain further particulars on the La Colorada mine. The La Colorada Report and the Pan American AIF are available for review under Pan American’s profile on SEDAR (www.sedar.com). Information in this section that provides non-material updates to information in the La Colorada Report has been provided by Pan American and/or has been sourced from Pan American’s press releases or continuous disclosure with respect to the La Colorada Mine.

While Maverix does not have any knowledge that such information is not accurate, Maverix has not independently verified this information and there can be no assurance that such third-party information is complete or accurate. See “Introductory Notes – Technical and Third-Party Information”.

Project Description, Location and Access

The La Colorada underground silver mine is located in Zacatecas State, Mexico, approximately 100 kilometres south of the city of Durango and 155 kilometres northwest of the city of Zacatecas. The mine is accessed primarily from the cities of Durango and Zacatecas by paved highway and all weather gravel roads.

Pan American’s wholly-owned subsidiary, Plata Panamericana, owns and operates the mine. The La Colorada property, including certain exploration concessions outside the mining area, is comprised of 56 mining claims totalling approximately 8,840 hectares. Pan American pays an annual fee to maintain the claims in good standing, and to our knowledge, has met all of the necessary obligations to retain the property.

Pan American has control over or rights in respect of approximately 1,300 hectares of surface rights covering the main workings. All of the La Colorada mineral reserves and mineral resources and all of the known mineralized zones, mine workings, the processing plant, effluent management and treatment systems, and tailings disposal areas are located within the mining claims controlled by the company.

While there are no known significant factors or risks currently expected to be reasonably likely to affect access or title, or the right or ability to perform work on the La Colorada mine, certain individuals have asserted community rights and land ownership over a portion of La Colorada’s surface lands in the Agrarian Courts of Mexico. They have also initiated a process before the Secretariat of Agrarian, Territorial and Urban Development of Mexico’s Federal Government (“SEDATU”) in Zacatecas State to declare such lands as national property. In 2019, Pan American filed an amparo against such process and obtained an injunction to protect its ownership of these surface rights pending the outcome of the amparo and a further review by SEDATU. If Pan American is unable to acquire or maintain access to those surface rights, there could be material adverse impacts on La Colorada’s future mining operations.

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Pan American is exposed to many risks in conducting its business, both known and unknown, and there are numerous uncertainties inherent in estimating mineral reserves and resources and in maintaining viable operations. Although Pan American has no current expectation that the mineral reserve and resource estimates will be materially negatively impacted by external factors such as environmental, permitting, title, access, legal, taxation, availability of resources, and other similar factors, changes in relation to such factors are not uncommon in the mining industry and there can be no assurance that these factors will not have a material impact. For example, the third-party claims with respect to a portion of Pan American’s surface rights described herein could, if determined adversely, have a material impact on the La Colorada operation. The political, economic, regulatory, judicial, and social risks related to conducting business in foreign jurisdictions, and changes in metal and commodity prices, pose particular risk and uncertainty to Pan American and could result in material impacts to Pan American’s business and performance. In addition to external factors and risks, the accuracy of any mineral reserve and resource estimate is, among other things, the function of the quality and quantity of available data and of engineering and geological interpretation and judgment. Results from drilling, testing, and production, as well as a material change in metal prices, changes in the planned mining method, or various operating factors that occur subsequent to the date of the estimate may justify revision of such estimates and may differ, perhaps materially, from those currently anticipated, and readers are cautioned against attributing undue certainty to estimates of mineral reserves and resources.

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History

The Dorado family operated mines at two locations on the Property in 1925. From 1929 to 1955, Candelaria y Canoas S.A., a subsidiary of Fresnillo S. A., installed a 100 tonne per day flotation plant and worked the old dumps of two previous mines on the Property. From 1933 to the end of World War II, La Compañia de Industrias Peñoles also conducted mining operations on the Property. From 1949 to 1993, Compañia de Minas Victoria Eugenia S. A. de C. V. (“Eugenia”) operated a number of mines on the Property. In 1994, Minas La Colorada S. A. de C. V. (“MLC”) acquired the exploration and exploitation claims and surface rights of Eugenia. Until 1997, MLC conducted mining operations on three of the old mines on the Property at a rate of approximately 150 tonnes per day. During these time periods, exploration was mainly in the form of development along the veins. Prior to Pan American’s ownership of the Property, 131 diamond drillholes had been drilled.

In 1997, Pan American entered into an option agreement with MLC, during which time Pan American conducted exploration and diamond drilling as part of its due diligence reviews Pan American acquired the Property from MLC in April 1998 and has focused its production on the Candelaria, Estrella, and Recompensa mines. Pan American has been producing annually since 1998.

In 2016, Maverix acquired a gold stream equivalent of 100% of the payable gold production from the La Colorada mine.

Geological Setting, Mineralization, and Deposit Types

The La Colorada mine is located in the Sierra Madre Occidental volcanic belt, at the contact between the Lower Volcanic Supergroup and the Upper Volcanic Supergroup. The oldest rocks exposed on the property are Cretaceous limestones of the Cuesta del Cura Formation and calcareous clastic rocks of the Indidura Formation. They are overlain by conglomerates of the early Tertiary Ahuichilla Formation. East to northeast striking faults form the dominant structures at the property and play a strong role in local mineralization.

Economic mineralization at La Colorada is found in veins, replacement mantos within limestone, and skarn. The majority of the mineral resources and reserves are sourced from the NC vein series, the HW vein series, and Veta 3, all at the Candelaria mine; the Amolillo vein system at the Estrella mine; vein and manto mineralization at the Recompensa system at the Recompensa mine; and the new undeveloped skarn deposit, which is parallel to and below the NC vein series, east of the Candelaria mine.

Most mineralized veins on the Property strike east to northeast and dip moderately to steeply to the south. Veins occur in dacite and limestone, and crosscut bedding and lithological contacts. Most of the mineralization of economic significance is located in quartz veins that average 1 metre to 2 metres wide, but may be significantly wider. The vein fillings consist of quartz, calcite, and locally barite and rhodochrosite. Galena, sphalerite, pyrite, native silver, and silver sulphosalts are present in unoxidized veins. The major mineralized veins are strongly brecciated and locally oxidized. Amolillo strikes over 1.5 km to the northeast and dips 60° to the southeast, for over 800 metres down dip. The average vein width is 2.2 metres. The NC series of veins lies around 700 m to the southeast of Amolillo. The most significant of these veins, NC2, strikes around 1.2 km to the northeast and dips 75° to the southeast, for over 1 km down dip. The average vein width is 1.9 metres. The HW series is the western continuation of the NC series, strikes east-west, and dips 50° to the south, for over 600 m down dip. The average vein width is 1.8 metres. Veta 3 runs parallel to the HW and NC series, strikes for over 900 m to the northeast, and dips 75° to the northwest, for around 400 m down dip. The average vein width is 1.7 metres.

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Manto style mineralization is found near vein contacts where the primary host rock is limestone. This style of mineralization was mined at Recompensa and can also be seen in some areas of the Candelaria mine.

A significant skarn deposit was discovered in 2018 at depth and to the east of the Candelaria mine. With increasing depth, mineralization styles progress from epithermal style veins to manto style mineralization in calcareous sediments, skarn, magmatic hydrothermal breccia skarn, proximal skarn, epithermal veins overprinting porphyry, and copper-molybdenum porphyry. Common minerals include galena and sphalerite, with quartz, carbonate, feldspar, pyroxene, and garnet. The deposit, as currently defined, comprises several zones of mineralization located between 600 metres to 1,700 metres below surface, over an area of around 500 metres by 600 metres.

La Colorada is located in a region with significant silver and base metal production from vein and skarn deposits, and is considered a typical hydrothermal polymetallic deposit, with a transition of silver rich mineralization to more base metal rich mineralization at depth. This is the geological model considered for exploration and mineral resource and reserve estimation.

The skarn deposit is a typical skarn system comprising altered diorite and quartz feldspar intrusive stocks on the contact with limestone and siltstone. Zoned endoskarn and exoskarn are present, with a prograde garnet and pyroxene zone, and a retrograde zone with zinc, lead, copper, and silver mineralization. Carbonate replacement deposits, breccia pipes, epithermal silver, lead, and zinc systems, and a deep copper molybdenum porphyry are present, related to multiphase hydrothermal and magmatic activity.

Exploration

The mine had been working for several decades prior to any specific exploration work. During that time, most major structures became known through mine development. Prior to Pan American’s ownership of the Property, 131 diamond drillholes for a total of 8,665 metres was completed by MLC.

Between September 1997 and March 1998, while the Property was under option, Pan American conducted a geophysical survey comprising very low frequency radio and induced polarization.

Since Pan American acquired the Property, staff and consulting structural geologists have carried out near mine surface and underground geological and structural mapping. Underground channel and raise sampling are conducted for grade control and mineral resource and reserve estimates as mining progresses. Near mine surface and underground diamond drilling exploration campaigns are ongoing on an annual basis for mineral resource and reserve estimates.

Drilling

All drilling at La Colorada is by diamond drilling from surface and underground using industry standard drill machines and downhole survey tools. Drilling is conducted by both company employees and private drilling contractors, under the supervision of the La Colorada mine geology department. Drill core diameter ranges from HQ, NQ, and BQ depending on location and hole depth. Since 1997, on the order of 1,700 drillholes have been completed by Pan American over the deposits at the Recompensa, Estrella, and Candelaria mines and the new skarn deposit, and the results have been used for geological interpretation and mineral resource and reserve estimates.

Sampling, Analysis, and Data Verification

Diamond drillholes are logged, photographed, halved, and sampled in a secure core logging facility at La Colorada. The drill core is cut in half with a diamond bladed saw and samples are selected with respect to geological features, at 2 metre lengths or less. Channel samples of approximately one metre in width are taken in ore development areas and stopes by sampling crews under the supervision of the mine geologist. Pan American has no reason to believe that the integrity of the samples has been compromised.

The drillhole samples are prepared by the internal La Colorada mine laboratory, which is operated by Pan American’s employees, and by independent laboratories including SGS of Durango, Activation Laboratories Ltd (“Actlabs”) of Zacatecas, and Bureau Veritas of Hermosillo. Both Actlabs and SGS used fire assay with gravimetric finish for gold and acid digestion with ICP finish for silver, lead, zinc, and copper. Bureau Veritas used fire assay with gravimetric finish for gold and acid digestion with ICP finish for silver, lead, zinc, and copper in their Vancouver, Canada laboratory. The La Colorada mine laboratory used fire assay with gravimetric finish for gold and silver, and acid digestion with atomic absorption finish for lead, zinc, and copper.

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The La Colorada mine laboratory and Actlabs are certified with ISO 9001:2015. SGS and Bureau Veritas are accredited with ISO/IEC 17025.

Pan American implements a quality assurance and quality control (“QAQC”) program including the submission of certified standards, blanks, and duplicate samples to the laboratories. The results are reviewed regularly to ensure that appropriate and timely action is taken in the event of a failure. Any sample batches with QAQC failures are re-submitted to another laboratory for analysis.

Mineral Processing and Metallurgical Testing

The metallurgical assumptions used for the mineral resource and reserve estimates are based on operational plant performance and confirmed by bench scale testing of samples representative of the planned mine feed. This work has confirmed that the optimum processing method is cyanidation for oxide ore and selective lead/zinc sulphide flotation for sulphide ore.

Test work including flotation and cyanide leach testing, locked cycle tests, and bottle roll tests, has confirmed the projected recoveries in the mine feed. In the oxide plant, metallurgical recoveries average 84% for silver and 48% for gold. In the sulphide plant, recoveries average 93% for silver, 61% for gold, 88% for lead, and 88% for zinc.

Mineral Resource and Mineral Reserve Estimates

Mineral resource and reserve estimates are based on assumptions that include mining, metallurgical, infrastructure, title, permitting, taxation, and economic parameters that have a degree of uncertainty. Although Pan American has no current expectation that the mineral reserve and resource estimates in this Technical Report will be materially negatively impacted by external factors such as environmental, permitting, title, access, legal, taxation, availability of resources, and other similar factors, changes in relation to such factors are not uncommon in the mining industry and there can be no assurance that these factors will not have a material impact. In addition, the accuracy of any mineral reserve and resource estimate is, among other things, the function of the quality and quantity of available data and of engineering and geological interpretation and judgment. Results from drilling, testing, and production, as well as a material change in metal prices, changes in the planned mining method, or various operating factors that occur subsequent to the date of the estimates may justify revision of such estimates and may differ, perhaps materially, from those currently anticipated.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resources reported are in additional to mineral reserves.

Resource estimates were made using either two dimensional or three dimensional methods.

Following the two dimensional method, mineral resources are estimated using averaging of the data collected from diamond drilling and channel samples. A long section is produced of each structure and divided into mineable panels. The volume of the panel is estimated from the average width of the vein or mineralization intersection of each drillhole or channel located within a 30 metre radius of the panel. The grade of each panel is estimated by the length weighted average of the sample grade of each intersection within a 30 metre radius of the panel. The samples are assessed and treated for extreme sample grades prior to averaging.

Following the three dimensional method, three dimensional interpretations are made in each vein or mineralized structure around spatially continuous trends of drillhole and channel sample grades greater than the sub-marginal cut-off values for each vein. A similar interpretation was made of hangingwall and footwall dilution volumes expected to be mined with each structure. The wireframe interpretations were then filled with blocks for the ordinary kriged estimate. Samples were composited to an equal weight and top cut for extreme grades if necessary. Experimental variograms aligned parallel to the dip and strike of each mineralized trend were calculated for both the mineralization and the surrounding waste and applied to the estimate. A long section is produced of each structure and divided into mineable panels.

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For both estimation methods, average bulk density values from samples selected from spatially and geologically representative locations are applied to each mining panel volume to estimate the tonnes of each panel. The volumes are depleted annually for mining in the previous year.

The following mineral reserves and mineral resources statements were obtained from the Pan American website, dated June 30, 2020 (https://www.panamericansilver.com/assets/Reserves-Resources/Pan-American-Silver-resources-and-reserves-end-June-2020.pdf).

Pan American management estimates that mineral reserves at La Colorada, as at June 30, 2020, are as follows:

La Colorada Mineral Reserves (1), (2), (3)
Reserve Category	Tonnes (Mt)		Grams of Silver per tonne		Grams of Gold per tonne		% Zinc		% Lead
Proven		4.4		339		0.25		2.29		1.28
Probable		5.7		301		0.20		1.90		1.09
TOTAL		10.1		318		0.22		2.07		1.17

Notes:

(1) The mineral reserve estimates were obtained from the Pan American statement of Mineral Reserves as at June 30, 2020.

(2) Estimated using a price of $18.00 per ounce of silver, $1,300 per ounce gold, $2,350 per tonne of zinc and $2,000 per tonne of lead.

(3) Lead and zinc grades shown are the average for the deposit. However, the base metals are only payable in the concentrates produced from the sulphide ores and not in the doré produced from the oxide ores.

Pan American management estimates that mineral resources at La Colorada, as at June 30, 2020, are as follows:

La Colorada Mineral Resources(1),( 2), (3)
Reserve Category	Tonnes (Mt)		Grams of Silver per tonne		Grams of Gold per tonne		% Zinc		% Lead
Measured		0.9		204		0.20		1.43		0.88
Indicated		1.1		242		0.16		0.98		0.54
Inferred		6.2		232		0.13		3.10		1.60
Inferred - Skarn		100.4		44		0		4.29		1.77

Notes:

(1) Mineral resource estimates were obtained from the Pan American statement of Measured and Indicated Mineral Resources as at June 30, 2020.

(2) These mineral resources are in addition to mineral reserves. Estimated using a price of $18.00 per ounce of silver, $1,300 per ounce gold, $2,350 per tonne of zinc and $2,000 per tonne of lead.

(3) Lead and zinc grades shown are the average for the deposit. However, the base metals are only payable in the concentrates produced from the sulphide ores and not in the doré produced from the oxide ores.

Mining Operations

Underground mining currently takes place at the Candelaria and Estrella mines utilizing cut and fill and long hole open stoping methods. The main access ramps and haulage drifts are designed at 3.5 metres wide by 3.5 metres high, with a maximum gradient of 15%. Main levels have a vertical interval of 30 metres. Minimum mining widths are either 1.8 metres with planned dilution of 0.3 metres either side, or 1.5 metres with planned dilution of 0.2 metres either side, depending on vein width, and cuts are 2.4 metres high.

Handheld drills or electric hydraulic jumbo drills are used for development mining to access the ore, depending on the size of excavation required. Scoops are used for tramming ore and backfill to and from stopes, and haul trucks are used for underground ore haulage. Ground support is provided by rock bolts, with screen and shotcrete as required, as well as by backfilling mining voids with development waste rock or mill tailings. Ore is hoisted to the surface in a shaft with a capacity in excess of 2,300 tpd and hauled to the mill crusher stockpile. When required, ore can be hauled to the surface using the two mine access ramps present in both mines.

Processing and Recovery Operations

The operation produces both oxide and sulphide ore processed in two separate circuits with a total nominal plant capacity of 2,000 tpd. The oxide plant is a conventional cyanide leach process comprised of crushing, grinding, leaching, Merrill Crowe zinc precipitation, and on-site refining to produce doré. The sulphide plant has a conventional flotation process comprised of crushing, grinding, and selective lead and zinc froth flotation circuits to produce separate precious metal rich lead and zinc concentrates. In the oxide plant, metallurgical recoveries averaged 85% for silver and 53% for gold in 2020. In the sulphide plant, recoveries in 2020 averaged 92% for silver, 61% for gold, 85% for lead, and 87% for zinc.

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The doré produced at the mine is sent to one of two arm’s length precious metals refineries for refining under fixed-term contracts. After refining, the silver is sold on the spot market to various bullion traders and banks, and the gold is sold to Maverix. All lead and zinc concentrates produced are sold to arm’s length smelters and concentrate traders under negotiated fixed-term contracts, which consider the presence of any deleterious elements. To date, Pan American has not experienced difficulty with renewing existing or securing new contracts for the sale of the doré or concentrates, and none are expected.

During 2020, the mill processed 559.1 thousand tonnes, producing 5.0 million ounces of silver, 3.5 thousand ounces of gold, 13.6 thousand tonnes of zinc, and 6.6 thousand tonnes of lead.

The revenue per type of concentrate and doré produced by the La Colorada mine for the past three years were as follows:

	Revenue(1),(2)		Quantity
2020
Silver and Gold in Doré	$	5.1 million3		797,506	ounces of silver
				437	ounces of gold
Lead Concentrate4	$	101.5 million		16,358	tonnes
Zinc Concentrate4	$	22.2 million		241,148	tonnes
2019
Silver and Gold in Doré	$	16.8 million		1,145,000	ounces of silver
				680	ounces of gold
Lead Concentrate4	$	121.4 million		20,986	tonnes
Zinc Concentrate4	$	39.5 million		36,221	tonnes
2018
Silver and Gold in Doré	$	21.0 million		1,440,000	ounces of silver
				757	ounces of gold
Lead Concentrate4	$	100.1 million		18,611	tonnes
Zinc Concentrate4	$	42.9 million		30,799	tonnes

Notes:

(1) Consists of sales to arm’s length customers.

(2) Calculated as gross revenue plus export credit incentives less treatment and refining charges and export taxes.

(3) Reduced by approximately $8.5 million in 2020 as a result of a non-cash adjustment, $5.3 million of which relates to prior periods.

(4) Lead concentrates contain payable silver and gold. Zinc concentrates contain payable silver.

Infrastructure, Permitting and Compliance Activities

The mine workings, processing plant, tailings storage facilities, waste disposal areas, effluent management and treatment facilities, roads, and power and water lines have all been constructed and are located within the boundaries of the mining leases and surface rights controlled by Pan American. To the best of Pan American’s knowledge, all permits and licenses required to conduct our activities on the property have been obtained and are currently in good standing.

The La Colorada mine purchases electrical power from the Mexican national power utility and back up diesel power is also available. Water for the mining operation is supplied from the underground mine dewatering systems.

An environmental impact statement (“EIS”) and risk assessment on the La Colorada property was first submitted to the Mexican environmental authorities in early March 1999 and has subsequently been maintained and updated, including a major permit modification for the La Colorada mine expansion in 2017.

The main environmental projects focus on the stability and revegetation of historic tailings facilities. There are no known environmental issues that could materially impact our ability to extract the mineral resources or mineral reserves.

Permitting activities related to the La Colorada Skarn deposit commenced in 2020 with applications for twin decline ramps to access the deposit currently under evaluation by the Mexican environmental authorities.

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The La Colorada mine voluntarily participates in the Mexican Environmental Protection Authority’s “Clean Industry” program, which involves independent verification of compliance with all environmental permits and the implementation of good practice environmental management procedures and practices. The La Colorada mine obtained its first certification in 2008 and is periodically re-certified.

A closure cost estimate for the Property was prepared according to the State of Nevada approved SRCE methodology in 2011 and is updated every year. The present value of the final site reclamation costs for the Property is estimated to be approximately $7.2 million as at December 31, 2020. No reclamation bond is required by Mexican law.

Capital and Operating Costs

In 2020, total capital additions at La Colorada were approximately $29.4 million with $11.0 million invested in expenditures related to the expansion activities including exploration on the skarn mineralization. Total direct operating costs at La Colorada were $69.1 million in 2020.

Capital investments in 2021 will total between $77.0 million and $84.5 million. In addition to sustaining capital investments between $27.0 million and $29.5 million relating to underground equipment, refurbishments, underground ventilation infrastructure improvements, tailings storage facility expansions and near mine exploration, Pan American also expects to invest between $50 million and $55 million in project capital for continued exploration drilling and early-stage engineering and metallurgical testing on the skarn deposit.

Exploration, Development and Production

In 2021, Pan American anticipates producing between 7.16 million and 7.44 million ounces of silver, and between 4.0 thousand and 4.2 thousand ounces of gold from the La Colorada mine. Pan American plans to undertake approximately 83,000 metres of exploration drilling at the La Colorada mine, including the skarn in 2021.

DIVIDENDS

The Company paid a quarterly dividend of US$0.01 per share for each of the calendar quarters during the year ended December 31, 2020 to the holders of record of the Common Shares as of the close of business on March 31, June 30, August 31 and November 30, all of 2020, respectively. The Company paid its inaugural dividend of US$0.01 on January 15, 2020 to the holders of record on December 31, 2019. The Company has declared a dividend to be paid March 15, 2021 to the holders of record of the Common Shares as of the close of business on February 26, 2021. The declaration, timing and amount of any future dividends remains at the discretion of the Board and will be made considering its financial condition and other factors deemed relevant by the Board. See “Risk Factors – Dividend Policy”.

DESCRIPTION OF CAPITAL STRUCTURE

The authorized share capital of the Company consists of an unlimited number of Common Shares and preference shares in the capital of the Company (“Preference Shares”). As of December 31, 2020, there were 140,488,309 Common Shares and no Preference Shares issued and outstanding. The Company has 10,000,000 common share purchase warrants issued and outstanding.

Common Shares

Each Common Share carries the right to one vote at all meetings of shareholders of Maverix. There are no special rights or restrictions of any nature attached to the Common Shares. All Common Shares rank equally as to dividends, voting powers and participation in assets upon liquidation of Maverix.

Preference Shares

Before the first shares of a particular series of Preference Shares are issued, the Board shall determine, subject to the limitations set out in Maverix’s articles, the material characteristics of the series. Holders of Preference Shares are entitled to priority over the Common Shares and over any other shares of the corporation junior to the Preference Shares with respect to priority in payment of dividends, the distribution of assets in the event of the liquidation, dissolution or winding-up of Maverix, whether voluntary or involuntary, or any other distribution of assets of Maverix among its shareholders for the purpose of winding-up its affairs.

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Holders of Preference Shares are not entitled to vote separately as a class or series upon a proposal to amend Maverix’s articles to: (a) increase or decrease any maximum number of authorized shares of such class or series, or increase any maximum number of authorized shares of a class or series having rights or privileges equal or superior to the shares of such class or series; (b) effect an exchange, reclassification or cancellation of the shares of such class or series; or (c) subject to the exceptions contained in the Canada Business Corporations Act, create a new class or series of shares equal or superior to the shares of such class or series.

MARKET FOR SECURITIES

Trading Price and Volume

The Common Shares are listed and posted for trading on the TSX under the symbol “MMX”. The following table sets forth information relating to the trading of the Common Shares on TSX for the most recently complete financial year.

Month		High (C$)		Low (C$)		Volume
January 2021 to March 22, 2021
	March 1 – 22		7.14		5.69		2,113,943
	February		7.10		6.00		1,511,305
	January		7.74		6.47		1,433,831
Year Ended December 31, 2020
	December		7.16		6.00		1,473,469
	November		7.50		6.58		2,196,640
	October		7.78		6.58		1,222,913
	September		7.55		5.47		3,265,966
	August		6.73		5.55		1,614,049
	July		6.74		5.70		2,031,474
	June		6.59		5.31		3,429,261
	May		7.33		5.80		2,276,347
	April		6.46		4,45		1,116,294
	March		6.14		3.10		1,935,385
	February		7.14		5.10		1,639,173
	January		7.30		6.49		1,707,477

The price of the Common Shares as quoted by the TSX at the close of business on March 22, 2021 was C$6.60.

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Common Share Purchase Warrants

The following is a list of the common share purchase warrants issued by the Company that remain issued and outstanding. Each common share purchase warrant entitles the holder to acquire one Common Share on the payment of the exercise price per Common Share prior to the expiry date.

Number of Warrants	Exercise Price (US$)		Issuance Date	Expiry Date
5,000,000	$	2.41	December 23, 2016	December 23, 2021
5,000,000	$	3.28	June 29, 2018	June 29, 2023

Options Issued

The following table summarizes outstanding stock options granted by Maverix as at the date of this AIF.

Date	Exercise Price (CAD$)	Number of Securities
September 2020	6.54	30,000 stock options
March 2020	5.17	923,255 stock options
December 2019	5.83	268,313 stock options
August 2019	6.48	50,000 stock options
April 2019	5.18	848,252 stock options
May 2018	3.30	906,565 stock options
May 2017	2.80	156,080 stock options
April 2017	2.80	878,489 stock options
July 2016	1.08	195,750 stock options

Restricted Share Units Issued

The following table summarizes outstanding restricted share units granted by Maverix as at the date of this AIF.

Date	Price per Security (CAD$)	Number of Securities
December 2020	6.07		2,471 Restricted share units
September 2020	6.54		29,051 restricted share units
March 2020	5.17		74,300 restricted share units
December 2019	5.83		64,322 restricted share units
June 2019	5.81		32,705 restricted share units

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DIRECTORS AND OFFICERS

The following table sets forth the name, province/state and country of residence, position held with Maverix and principal occupation of each person who is a director and/or an officer of Maverix. Directors are elected at each annual meeting of Maverix’s shareholders and serve as such until the next annual meeting of shareholders or until their successors are elected or appointed.

Name, Province/State and Country of Residence	Position(s) with the Company (1)	Principal Occupation During Preceding Five Years
Geoffrey Burns(3)(4) British Columbia, Canada	Director and Chair	Chairman of Maverix; President and CEO Pan American (July 2003 to December 2015)
J.C. Stefan Spicer(2)(3) Ontario, Canada	Director	Businessman; Former Chairman, President and CEO of Central Fund of Canada Limited (January 1995 to January 2018)
Dr. Chris Barnes(2)(3)(4) Ontario, Canada	Director	Physician (retired from active practice)
Robert Doyle British Columbia, Canada	Director	CFO of Pan American
Blake Rhodes Colorado, USA	Director	Senior Vice President, Strategic Development of Newmont Corporation
Brian Penny(2) Ontario, Canada	Director	CFO of Wallbridge Mining Company Limited
David Scott(4) Ontario, Canada	Director	Businessman; Former Vice Chairman and Managing Director of Mining Global Investment Banking at CIBC Capital Markets
Tara Hassan Ontario, Canada	Director	VP, Corporate Development SilverCrest Metals Inc. (September 2020 to Present); Director, Mining Content & Strategy, VRIFY Technology (January 2020 to August 2020); Sr. Vice President Mining Analyst, Raymond James Ltd. (2016 to 2019); Mining Engineer
Daniel O’Flaherty Cayman Islands	CEO; Director	CEO of Maverix (July 2016 to present); Executive & Director of Anthem United Inc. (September 2013 to October 2016)
Ryan McIntyre Connecticut, USA	President	President of Maverix (November 2019 to present); Co-Portfolio Manager of Tocqueville Gold Strategy and Tocqueville Gold Fund.
Brendan Pidcock British Columbia, Canada	Vice President, Technical Services	VP, Technical Services of Maverix since September 1, 2020; Director of Project Evaluation of the Company (June 2019 to September 2020); Director of Technical Due Diligence Mergers and Acquisitions, Newmont Goldcorp (now Newmont, 2017 to 2019); Consultant with the Lundin Group (2004 to 2017)
Matt Fargey British Columbia, Canada	CFO	CFO of Maverix since May 2017; Corporate Controller Sandstorm Gold Ltd. (February 2013 to February 2017)
Brent Bonney British Columbia, Canada	Vice President, Corporate Development	VP Corporate Development of Maverix (February 2017 to present); Associate Director, Scotiabank Global Banking and Markets (July 2014 to February 2017)
Warren Beil British Columbia, Canada	General Counsel; Corporate Secretary	General Counsel and Corporate Secretary of Maverix (June 2018 to present); Vice President, Legal, Columbus Gold Corp. and Allegiant Gold Ltd. (January to June 2018); Lawyer, Gowling WLG (Canada) LLP (December 2015 to December 2017)

Notes:

(1) All of the directors have served since June 2016 with the exception of Daniel O’Flaherty, Blake Rhodes, Brian Penny, David Scott and Tara Hassan who were appointed May 2017, November 2018, July 2019 (both Messrs. Penny and Scott) and November 2020, respectively.

(2) Member of the Audit Committee (Brian Penny, Chair).

(3) Member of the Nominating and Governance Committee (J.C. Stefan Spicer, Chair).

(4) Member of the Compensation Committee (Geoff Burns, Chair).

As at December 31, 2020, the directors and executive officers of the Company, as a group, beneficially owned, directly and indirectly, or exercised control or direction 11,993,917 Common Shares, representing approximately 8.5% of the total number Common Shares outstanding before giving effect to the exercise of options or warrants to purchase Common Shares held by such directors and executive officers.

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Cease Trade Orders, Bankruptcies, Penalties or Sanctions

No director or executive officer of the Company is, as at the date hereof, or was within ten (10) years before the date hereof, a director, chief executive officer or chief financial officer of any company (including the Company) that,

(i) was subject to a cease trade order, an order similar to a cease trade order or an order that denied the relevant company access to any exemption under securities legislation, that was in effect for a period of more than 30 consecutive days, and that was issued while the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer; or

(ii) was subject to a cease trade order, an order similar to a cease trade order or an order that denied the relevant company access to any exemption under securities legislation, that was in effect for a period of more than 30 consecutive days, that was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer.

No director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to materially affect control of the Company,

(i) is, or within ten years prior to the date hereof has been, a director or executive officer of any company (including the Company) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or

(ii) has, within ten years prior to the date hereof, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director, executive officer or shareholder.

No director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company, has been subject to,

(i) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or

(ii) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.

Conflicts of Interest

To the best of the Company’s knowledge, and other than as disclosed in this AIF, there are no known existing or potential material conflicts of interest between the Company and any director or officer of the Company, except that certain of the directors and officers serve as directors and officers of other public companies and therefore it is possible that a conflict may arise between their duties as a director or officer of the Company and their duties as a director or officer of such other companies.

Directors and officers of the Company also serve as directors and/or officers of other companies involved in natural resource exploration and development or investment in natural resource companies and consequently there exists the possibility for such directors and officers to be in a position of conflict. Any decision made by any of such directors and officers involving the Company will be made in accordance with their duties and obligations to deal fairly and in good faith with a view to the best interests of the Company and its shareholders. In addition, each of the directors is required to declare and refrain from voting on any matter in which such directors may have a conflict of interest in accordance with the procedures set forth in the CBCA and other applicable laws.

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LEGAL PROCEEDINGS AND REGULATORY ACTIONS

The Company is not party to any material legal proceedings or regulatory actions as of the date of this AIF. The Company is not aware of any material contemplated legal proceedings involving it or its operations.

INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

Other than the shareholding interests of Pan American and Newmont, no directors, executive officers or principal shareholders of the Company or any associate or affiliate of the foregoing have had any material interest, direct or indirect, in any transactions in which the Company has participated since incorporation on September 5, 2008, which has materially affected or is reasonably expected to materially affect the Company.

TRANSFER AGENT AND REGISTRAR

The transfer agent and registrar for the Common Shares is TSX Trust Company at its principal office in Toronto, Ontario. The co-transfer agent and registrar for the Common Shares in the United States of America is Continental Stock Transfer and Trust Co. in New York, New York.

MATERIAL CONTRACTS

The Company entered into the following material contracts within the financial year ended December 31, 2020, or since such time or before such time that are still in effect, other than in the ordinary course of business:

· the La Colorada Agreement – see “General Development of the Business – Acquisition of the PA Royalty Portfolio – La Colorada Agreement” for further information;

· a credit agreement between the Company, Maverix Metals (Australia) Pty. Ltd., Maverix Metals (Nevada) Inc., CIBC, National Bank and the Bank of Nova Scotia, dated June 21, 2018 (as amended April 5, 2019 and September 20, 2019, the “Credit Agreement”) in respect of the Credit Facility. The Credit Agreement permits Maverix to borrow up to US$120,000,000 and has a term of four years, ending in June 2023, which is extendable through mutual agreement between Maverix, CIBC, National Bank and the Bank of Nova Scotia; and

· the Shareholder Agreements (as defined below).

Shareholder Agreements

The following is a summary of the Shareholder Agreements (as defined below). The summary of the Shareholder Agreements provided below is qualified in its entirety by reference to the full text of the Shareholder Agreements. The Shareholder Agreements are each available under Maverix’s profile on SEDAR at www.sedar.com.

Maverix is a party to a shareholder agreement with each of Pan American (amended and restated as of June 29, 2018) and Newmont (dated June 29, 2018, as amended) (collectively, the “Shareholder Agreements”). The Shareholder Agreements are in substantially similar form and pursuant to which each of Pan American, Newmont and Maverix have agreed that, among other things, each shareholder will:

· have certain rights in respect of equity financings of Maverix, including standard anti-dilution rights;

· have demand qualification rights in specified circumstances in respect of the Company completing and filing a prospectus relating to a proposed disposition of all or a portion of the shareholder’s shareholdings in the Company;

· be obligated to give Maverix notice and an opportunity to make an offer to acquire any metal stream or royalty that the shareholder contemplates granting; and

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· be entitled, depending on current shareholdings of the Company, to nominate individuals for election to the Company’s Board (the “Board Nominee Right”).

The Board Nominee Right applies to each of Pan American and Newmont where:

· Pan American’s shareholdings of Maverix are equal to or exceed 50% of Maverix’s outstanding Common Shares then Pan American is entitled to two nominees for election to the Company’s Board;

· Newmont or Pan American’s shareholdings of Maverix are equal to or exceed 10% of outstanding Common Shares, then each of Newmont and Pan American, respectively, is entitled to one nominee for election to the Board.

As at the date of this AIF, Pan American has nominated Rob Doyle as its nominee and Newmont has nominated Blake Rhodes as its nominee.

Pursuant to each Shareholder Agreement, provided Maverix has endorsed and recommended nominees for election to the Board, at every meeting of the Maverix shareholders at which the election of directors to the Board is considered, each of Pan American and Newmont must:

· vote its Common Shares in favor of the election of Maverix management’s proposed nominees for election to the Board at every such meeting;

· not effect, conduct or participate in any solicitation of proxies with respect to any securities of Maverix (other than any solicitation of proxies conducted by Maverix’s management) against management’s proposed nominees for election to the Board; and

· vote its Common Shares in the manner recommended by the Board with respect to other matters, in the ordinary course, brought to a vote of shareholders of Maverix.

INTERESTS OF EXPERTS

The scientific and technical information contained in this AIF was reviewed and approved by Brendan Pidcock, P.Eng., Vice President Technical Services and a “Qualified Person” as defined in NI 43-101.

To the knowledge of Maverix, Mr. Pidcock holds less than 1% of the outstanding Common Shares of Maverix or of any associate or affiliate of Maverix as of the date hereof. Mr. Pidcock has not and will not receive any direct or indirect interest in any securities of Maverix as a result of the review and approval of the scientific and technical disclosure included in this AIF.

KPMG LLP, Chartered Professional Accountants, are the independent auditors of Maverix who have issued an independent auditor’s report dated March 22, 2021 in respect of the consolidated financial statements of Maverix as at December 31, 2020 and December 31, 2019 and for each of the years then ended. KPMG LLP have confirmed with respect to Maverix that they are independent within the meaning of the relevant rules and related interpretations prescribed by the relevant professional bodies in Canada and any applicable legislation or regulations and also that they are independent accountants with respect to Maverix under all relevant US professional and regulatory standards.

AUDIT COMMITTEE

The Company’s Audit Committee is responsible for monitoring the Company’s systems and procedures for financial reporting and internal control, reviewing certain public disclosure documents and monitoring the performance and independence of the Company’s external auditors. The committee is also responsible for reviewing the Company’s annual audited financial statements, unaudited quarterly financial statements and management’s discussion and analysis of financial results of operations for both annual and interim financial statements and review of related operations prior to their approval by the full Board.

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The following are the current members of the Committee, each of whom is “independent” and “financially literate” (as such terms are defined in National Instrument 52-110 – Audit Committees (“NI 52-110”)): Brian Penny (Chair), Dr. Chris Barnes and J.C. Stefan Spicer.

The Audit Committee’s charter sets out its responsibilities and duties, qualifications for membership, procedures for committee member removal and appointment and reporting to the Board. A copy of the charter is attached hereto as Appendix A.

Relevant Education and Experience

As noted above, each member of the Audit Committee is financially literate. Collectively, the Audit Committee members have the education and experience to fulfill their responsibilities as outlined in the Audit Committee Charter. Set out below is a description of the education and experience of each Audit Committee member that is relevant to the performance of his responsibilities as an Audit Committee member.

Brian Penny is currently the Chief Financial Officer of Wallbridge Mining Company Limited. Mr. Penny has over 30 years of experience in financial management, strategic planning and financial reporting. Formerly, Mr. Penny held positions as the Executive Vice President and Chief Financial Officer of New Gold Inc. and the Vice President of Finance and Chief Financial Officer of Kinross Gold Corporation. Mr. Penny is a Chartered Professional Accountant and holds a Diploma in Business (Accounting) from Cambrian College of Applied Arts & Technology.

Dr. Chris Barnes was Chief of Staff of Blind River Hospital in Ontario for the past 22 years. He is a former practicing physician and was a former member of Blind River Hospital’s Board of Directors from 1990 to 2014. Furthermore, Dr. Barnes is the founder and Chair of the Board of Directors of the Huron Shores Family Health Team. Dr. Barnes holds a MD degree from the University of Toronto. Dr. Barnes is a knowledgeable and skilled businessman with over 25 years of experience in capital markets investing.

J.C. Stefan Spicer was the Chairman, President, and CEO, Central Fund of Canada Limited (“Central Fund”) until January 16, 2018, a position he held since 1995. Mr. Spicer has led numerous capital market transactions and has been a founder of several publicly traded entities. Mr. Spicer has in excess of 35 years of investment industry experience.

Reliance on Certain Exemptions

At no time since the commencement of the Company’s most recently completed financial year has the Company relied on the exemption in Section 2.4 (De Minimis Non-audit Services) of NI 52-110, or an exemption from NI 52-110, in whole or in part, granted under Part 8 of NI 52-110. Part 8 permits a company to apply to a securities regulatory authority for an exemption from the requirements of NI 52-110, in whole or in part.

Pre-Approval Policies and Procedures

The Audit Committee’s charter sets out responsibilities regarding the provision of non-audit services by the Company’s external auditors. This policy encourages consideration of whether the provision of services other than audit services is compatible with maintaining the auditor’s independence and requires Audit Committee pre-approval of permitted audit and audit-related services.

External Auditor Service Fees

The aggregate fees billed by the Company’s external auditors in each of the last two fiscal years for audit fees are as follows:

Financial Year Ending		Auditor		Audit Fees (1)		Audit Related Fees (2)	Tax Fees (3)	All Other Fees (4)
	2020		KPMG	$	274,562	Nil	Nil	Nil
	2019		KPMG	$	207,380	Nil	Nil	Nil

Notes:

(1) The aggregate audit fees billed in Canadian dollars.

(2) The aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements and which are not included under the heading “Audit Fees”.

(3) Fees billed for preparation of Company’s corporate tax return.

(4) The aggregate fees billed for products and services other than as set out under the headings “Audit Fees”, “Audit Related Fees” and “Tax Fees”.

- 39 -

ADDITIONAL INFORMATION

Additional information relating to the Company can be found on SEDAR, at www.sedar.com, including the Company’s management information circular (to be filed on SEDAR) and in the Company’s audited financial statements and management’s discussion and analysis for the financial year ended December 31, 2020.

APPENDIX A

AUDIT COMMITTEE CHARTER

MAVERIX METALS INC.

AUDIT COMMITTEE - CHARTER

PURPOSE

Senior management of Maverix Metals Inc. (the “Company”), as overseen by its Board of Directors (the “Board”), has primary responsibility for the Company’s financial reporting, accounting systems and internal controls. The Audit Committee (the “Committee”) is a standing committee of the Board established for the purposes of overseeing:

a. the quality and integrity of the Company’s financial and accounting reporting processes and internal accounting and financial control systems of the Company;

b. the external auditor’s qualifications and independence;

c. management’s responsibility for assessing the effectiveness of internal controls; and

d. the Company’s compliance with legal and regulatory requirements in connection with financial and accounting matters.

COMPOSITION AND OPERATION

a. The Committee shall be composed of at least three independent directors¹ and all members of the Committee shall, to the satisfaction of the Board, be Financially Literate and at least one member will be a Committee Financial Expert (“Financially Literate” and “Committee Financial Expert” are defined in the Definitions section of this Charter).

b. The members of the Committee shall be appointed by the Board, based on the recommendation of the Nominating and Governance Committee, to serve one year terms and are permitted to serve an unlimited number of consecutive terms.

c. The Committee shall appoint a chair (the “Chair”) from among its members who shall be an independent director. If the Chair is not present at any meeting of the Committee, one of the other Committee members present at the meeting shall be chosen to preside at the meeting.

d. The Committee will make every effort to meet at least four times per year and each member is entitled to request that an additional meeting be called, which will be held within two weeks of the request for such meeting. A quorum at meetings of the Committee shall be two members present in person or by telephone. The Committee may also act by unanimous written consent of its members as described under the heading “Authority” in this Charter.

¹ In order to be considered “independent”, the following applies:

Pursuant to the Canadian Securities Administrators’ Multilateral Instrument 52-110 “Audit Committees”, a member of the Committee must not have a direct or indirect material relationship with the Company. A “material relationship” is a relationship which could, in the view of the Company’s Board, be reasonably expected to interfere with the exercise of a member’s independent judgment.

Pursuant to United States securities laws, a member of the Committee may not accept directly or indirectly any consulting, advisory, or other compensatory fee from the Company or any of its subsidiaries; nor be an affiliated person, as such term is defined in Rule 10A-3 of the Securities and Exchange Act of 1934, of the Company or any of its subsidiaries.

A-2

e. The external auditor may request the Chair to call a meeting of the Committee to consider any matter that the auditor believes should be brought to the attention of the directors or the shareholders of the Company. In addition to the external auditor, each committee chair, members of board, as well as the Chief Executive Officer or Chief Financial Officer shall be entitled to request the Chair to call a meeting, which meeting shall be held within two weeks of the request.

f. Notice of the time and place of every meeting shall be given in writing or by email communication to each member of the Committee at least 24 hours prior to the time fixed for such meeting.

g. The Committee shall fix its own procedure at meetings, keep records of its proceedings and provide a verbal report to the Board routinely at the next regularly scheduled Board meeting and shall provide copies of finalized minutes of meetings to the Corporate Secretary to be kept with the official minute books of the Company.

h. The Committee will review and approve its minutes of meetings and copies will be made available to the external auditor or its members as requested.

i. In camera sessions will be scheduled for each regularly scheduled quarterly Committee meeting, and as needed from time to time.

j. On an ad-hoc basis, the Committee may also meet separately with the Chief Executive Officer, the Chief Financial Officer, the General Counsel and such other members of management as they may deem necessary.

RESPONSIBILITIES AND DUTIES

Overall Committee:

To fulfill its responsibilities and duties the Committee will:

a. review this Charter periodically, but at least once per annum, and recommend to the Nominating and Governance Committee any necessary amendments;

b. review and, where necessary, recommend revisions to the Company’s disclosure in the Management Information Circular regarding the Committee’s composition and responsibilities and how they are discharged;

c. assist the Board in the discharge of its responsibilities relating to the quality, acceptability and integrity of the Company’s accounting policies and principles, reporting practices and internal controls;

d. review and recommend approval by the Board of all significant and material financial disclosure documents to be released by the Company, including but not limited to, quarterly and annual financial statements and management discussion and analysis, annual reports, Form 40-F, annual information forms, and prospectuses containing material information of a financial nature; and

e. oversee the relationship and maintain a direct line of communication with the Company’s external auditors and assess their performance.

A-3

Public Filings, Policies and Procedures:

The Committee is responsible for:

a. ensuring adequate procedures are in place for the review of the Company’s disclosure of financial information extracted or derived from the Company’s financial statements and periodically assess the Company’s disclosure controls and procedures, and management’s evaluation thereof, to ensure that financial information is recorded, processed, summarized and reported within the time periods required by law;

b. reviewing disclosures made to the Committee by the Chief Executive Officer and the Chief Financial Officer during their certification process for any significant deficiencies in the design or operation of internal controls or material weakness therein and any fraud involving management or other employees who have a significant role in internal controls; and

c. reviewing with management and the external auditor any correspondence with securities regulators or other regulatory or government agencies which raise material issues regarding the Company’s financial reporting or accounting policies.

External Auditors

The responsibilities and duties of the Committee as they relate to the external auditor are to:

a. consider and make recommendations to the Board with respect to the external auditor to be nominated for appointment by shareholders at each annual general meeting of the Company;

b. review the performance of the external auditor and, where appropriate, recommend to the Board the removal of the external auditor;

c. confirm the independence and effectiveness of the external auditor, which will require receipt from the external auditor of a formal written statement delineating all relationships between the auditor and the Company and any other factors that might affect the independence of the auditor;

d. oversee the work of the external auditor generally, and review and report to the Board on the planning and results of external audit work, including:

i. the external auditor’s engagement letter or other reports of the auditor;

ii. the reasonableness of the estimated fees and other compensation to be paid to the external auditor;

iii. the form and content of the quarterly and annual audit report, which should include, inter alia:

· a summary of the Company’s internal controls and procedures;

· any material issues raised in the most recent meeting of the Committee; and

· any other related audit, review or attestation services performed for the Company by the external auditors.

e. actively engage in dialogue with the external auditor with respect to any disclosed relationships or services that may affect the independence and objectivity of the external auditor and take, or recommend the Board take, appropriate actions to oversee the independence of the external auditor;

f. monitor the relationship between management and the external auditor and resolve any disagreements between them regarding financial reporting; and

g. engage the external auditor in discussions regarding any amendments to critical accounting policies and practices; alternative treatments of financial information within generally accepted accounting principles related to material items that have been discussed with management, including any potential ramifications and the preferred treatment by the independent auditor; and lastly, written communication between management and the independent auditor, including but not limited to, the management letter and schedule of adjusted differences.

A-4

Internal Controls and Financial Reporting

The Committee will:

a. obtain reasonable assurance from discussions with (and/or reports from) management, and reports from the external auditors that the Company’s financial and accounting systems are reliable and are operating effectively;

b. in consultation with the external auditor, the CEO, the CFO, and where necessary, other members of management, review the integrity of the Company’s financial reporting process and the internal control structure;

c. review the acceptability of the Company’s accounting principles and direct the auditors’ examinations to particular areas of question or concern, as required;

d. request the auditors to undertake special examinations (e.g., review compliance with conflict of interest policies) when it deems necessary;

e. together with management, review control weaknesses identified by the external and internal auditors;

f. review the appointments of the chief financial officer and other key financial executives; and

g. during the annual audit process, consider if any significant matters regarding the Company’s internal controls and procedures over financial reporting, including any significant deficiencies or material weaknesses in their design or operation, need to be discussed with the external auditor, and review whether internal control recommendations made by the auditor have been implemented by management.

A-5

Ethical and Legal Compliance

The responsibilities and duties of the Committee as they relate to compliance and risk management are to:

a. obtain reasonable assurances as to the integrity of the CEO and other senior management and that the CEO and other senior management strive to create a culture of integrity throughout the Company;

b. review the adequacy, appropriateness and effectiveness of the Company’s policies and business practices which impact on the integrity, financial and otherwise, of the Company, including those relating to hedging, insurance, accounting, information services and systems and financial controls, and management reporting;

c. receive a report from management on tax issues and planning, including compliance with the Company’s source deduction obligations and other remittances under applicable tax or other legislation;

d. review annually the adequacy and quality of the Company’s financial and accounting staffing, including the need for and scope of internal audit reviews (if any);

e. establish procedures for a) the receipt, retention and treatment of complaints received by the Company regarding accounting, internal controls, or auditing matters; and b) the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters;

f. review any complaints and concerns received regarding accounting, internal controls, or auditing matters or with respect to the Company’s Code of Ethical Conduct, and the investigation and resolution thereof, and provide all relevant information relating to such complaints and concerns to the Nominating and Governance Committee;

g. review and monitor the Company’s compliance with applicable legal and regulatory requirements related to financial reporting and disclosure;

h. review all related-party transactions; and

i. carry the responsibility for reviewing reports from management, external auditors with respect to the Company’s compliance with the laws and regulations having a material impact on financial reporting and disclosure, including: tax and financial reporting laws and regulations; legal withholding requirements; environmental; and any other laws and regulations which expose directors to liability.

AUTHORITY

a. The Committee shall have the authority to:

i. incur reasonable expenses to engage independent counsel and other advisors as it determines necessary to carry out its duties;

ii. set and pay the compensation (after consultation with the CEO) for any advisors employed by the Committee; and

iii. communicate directly with the external auditors.

b. The Committee shall have the power, authority and discretion delegated to it by the Board which shall not include the power to change the membership of or fill vacancies in the Committee.

A-6

c. A resolution approved in writing by the members of the Committee shall be valid and effective as if it had been passed at a duly called meeting. Such resolution shall be filed with the minutes of the proceedings of the Committee and shall be effective on the date stated thereon or on the latest date stated in any counterpart.

d. The Board shall have the power at any time to revoke or override the authority given to or acts done by the Committee except as to acts done before such revocation or act of overriding and to terminate the appointment or change the membership of the Committee or fill vacancies in it as it shall see fit.

e. The Committee shall have unrestricted and unfettered access to all Company personnel and documents and shall be provided with the resources necessary to carry out its responsibilities.

f. At the invitation of the Chair, one or more officers or employees of the Company may, and if required by the Committee, shall attend a meeting of the Committee.

g. The Committee shall have the authority to obtain advice and assistance from outside legal, accounting or financial advisors in its sole discretion.

DEFINITIONS

Capitalized terms used in this Charter and not otherwise defined have the meaning attributed to them below:

“Financially Literate” means the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can reasonably be expected to be raised in the Company’s financial statements.

“Committee Financial Expert” means a person who has the following attributes:

a. an understanding of generally accepted accounting principles and financial statements;

b. the ability to assess the general application of such principles in connection with the accounting for estimates, accruals and reserves;

c. experience preparing, auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and level of complexity of issues that can reasonably be expected to be raised in the Company’s financial statements, or experience actively supervising one or more persons engaged in such activities;

d. an understanding of internal controls and procedures for financial reporting; and

e. an understanding of audit committee functions;

acquired through any one or more of the following:

f. education and experience as a principal financial officer, principal accounting officer, controller, public accountant or auditor or experience in one or more positions that involve the performance of similar functions;

g. experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor or person performing similar functions; or

h. experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing or evaluation of financial statements; or other relevant experience.

EX-99.2

Exhibit 99.2

 

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED

DECEMBER 31, 2020 AND 2019

(Expressed in United States Dollars)

 

KPMG LLP Chartered Professional Accountants PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada Telephone Fax Internet (604) 691-3000
(604) 691-3031
www.kpmg.ca

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors
Maverix Metals Inc.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated statements of financial position of Maverix Metals Inc. (the Company) as of December 31, 2020, December 31, 2019 and January 1, 2019, the related consolidated statements of income (loss) and comprehensive income (loss), cash flows and changes in equity for each of the years in the two year period ended December 31, 2020, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and December 31, 2019, and the results of its operations and its cash flows for each of the years in the two year period ended December 31, 2020, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Change in Accounting Principle

As discussed in Note 2 to the consolidated financial statements, the Company has elected to change its presentation currency from the Canadian dollar to the U.S. dollar. The change is as of January 1, 2020, and has been retrospectively applied, and the statement of financial position as of January 1, 2019, has been included pursuant to the requirements of International Financial Reporting Standards.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

© 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of

independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

All rights reserved.

2

 

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

//s// KPMG LLP

We have served as the Company’s auditor since 2017.

Vancouver, Canada
March 22, 2021

3

Maverix Metals Inc.

Consolidated Statements of Financial Position

(in thousands of United States dollars)

			Restated (Note 2g)
	December 31, 2020		December 31, 2019			January 1, 2019
Assets
Current assets
Cash and cash equivalents	$	7,760	$	4,828		$	5,017
Accounts receivable		13,533		7,048			5,726
Investments (Note 6)		18,238		-			-
Right of first refusal receivable (Note 4b)		-		12,000			-
Asset held for sale (Note 4a)		1,500		-			-
Prepaid expenses and other		653		483			267
Total current assets		41,684		24,359			11,010
Non-current assets
Royalty, stream and other interests (Note 4 & 5)		334,210		281,405			198,091
Investments (Note 6)		1,000		7,148			4,458
Deferred financing costs and other		960		1,400			823
Deferred tax asset (Note 13)		1,753		823			823
Total assets	$	379,607	$	315,135		$	215,205
Liabilities
Current liabilities
Trade payables and other	$	3,285	$	3,233		$	2,713
Deferred revenue (Note 4a)		3,333		-			-
Dividend payable (Note 8e)		-		1,196			-
Total current liabilities		6,618		4,429			2,713
Non-current liabilities
Credit facility (Note 7)		32,000		69,000			12,300
Total liabilities		38,618		73,429			15,013
Equity
Capital and reserves
Share capital (Note 8a)		318,530		237,509			187,028
Reserves		10,654		14,009			13,298
Accumulated other comprehensive income		4,326		1,262			2,077
Retained earnings (deficit)		7,479		(11,074	)		(2,211	)
Total equity		340,989		241,706			200,192
Total liabilities and equity	$	379,607	$	315,135		$	215,205

Contractual obligations (Note 16)

Subsequent events (Note 17)

The accompanying notes are an integral part of these consolidated financial statements.

ON BEHALF OF THE BOARD:

“signed” Geoff Burns, Director “signed” Dan O’Flaherty, Director

4

Maverix Metals Inc.

Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)

(in thousands of United States dollars, except for per share and share data)

	Years ended
	December 31
	2020			2019 Restated (Note 2g)
Royalty revenue (Note 14)	$	32,689		$	21,797
Sales (Note 14)		18,992			11,915
Total revenue		51,681			33,712
Cost of sales, excluding depletion		(5,020	)		(3,927	)
Depletion (Note 5)		(17,999	)		(13,181	)
Total cost of sales		(23,019	)		(17,108	)
Gross profit		28,662			16,604
Administration expenses (Note 9)		(4,784	)		(4,407	)
Project evaluation expenses (Note 9)		(3,502	)		(2,300	)
Royalty interest impairment (Note 5b)		-			(14,241	)
Income (loss) from operations		20,376			(4,344	)
Other income and expenses
Gain on amendment of royalty interest (Note 4a)		9,291			-
Foreign exchange gain (loss)		664			(227	)
Other income (expense)		1,904			(100	)
Finance expense		(2,456	)		(1,813	)
Income (loss) before income taxes		29,779			(6,484	)
Income tax expense (Note 13)		(6,060	)		(1,183	)
Net income (loss)	$	23,719		$	(7,667	)
Earnings per share (Note 10)
Basic earnings (loss) per share	$	0.19		$	(0.07	)
Diluted earnings (loss) per share	$	0.17		$	(0.07	)
Weighted average number of common shares outstanding:
Basic		126,730,500			108,363,047
Diluted		135,975,539			108,363,047
Other Comprehensive Income (Loss)
Net income (loss)	$	23,719		$	(7,667	)
Item that will not be subsequently re-classified to net income:
Changes in fair value of investments (Note 6)		3,466			(815	)
Income tax expense on investments (Note 13)		(402	)		-
Comprehensive income (loss)	$	26,783		$	(8,482	)

The accompanying notes are an integral part of these consolidated financial statements.  

5

Maverix Metals Inc.

Consolidated Statements of Cash Flows

(in thousands of United States dollars)  

	Years ended
	December 31
	2020			2019 Restated (Note 2g)
Operating activities
Net income (loss)	$	23,719		$	(7,667	)
Depletion and amortization		18,146			13,303
Royalty interest impairment (Note 5b)		-			14,241
Income tax expense		6,060			1,183
Share-based compensation		1,688			1,666
Finance expense		2,456			1,813
Unrealized foreign exchange (gain) loss		(284	)		67
Unrealized (gain) loss on warrants		(1,891	)		92
Income taxes paid on operating activities		(4,076	)		(1,230	)
Gain on amendment of royalty interest (Note 4)		(9,291	)		-
Changes in non-cash working capital (Note 11)		(3,527	)		(2,507	)
Net cash provided by operating activities	$	33,000		$	20,961
Investing activities
Acquisition of royalty, stream and other interests (Note 4)		(15,436	)		(73,230	)
Acquisition of investments and other (Note 6)		(7,137	)		(3,053	)
Proceeds from amendment of royalty interest (Note 4)		12,164			-
Taxes paid on amendment of royalty interest (Note 4)		(2,787	)		-
Proceeds from disposal of equity investments		568			-
Right of first refusal proceeds (Note 4b)		12,000			-
Net cash used in investing activities	$	(628	)	$	(76,283	)
Financing activities
Proceeds from credit facility (Note 7)		20,000			62,000
Repayment of credit facility (Note 7)		(57,000	)		(5,300	)
Financing costs and interest paid		(2,337	)		(2,129	)
Dividends paid (Note 8e)		(6,361	)		-
Proceeds from exercise of warrants and stock options (Note 8b & 8c)		16,152			619
Net cash (used in) provided by financing activities	$	(29,546	)	$	55,190
Effect of exchange rate changes on cash and cash equivalents		106			(57	)
Increase (decrease) in cash and cash equivalents		2,932			(189	)
Cash and cash equivalents at the beginning of the year		4,828			5,017
Cash and cash equivalents	$	7,760		$	4,828

Supplemental cash flow information (Note 11)

The accompanying notes are an integral part of these consolidated financial statements.

6

Maverix Metals Inc.

Consolidated Statements of Changes in Equity

(in thousands of United States dollars, except for number of shares)

	Issued shares		Share capital $		Share warrant reserve $			Share option reserve $			Accumulated other comprehensive income $			Retained earnings (deficit) $			Total equity $
As at December 31, 2018 - Restated (Note 2g)		107,715,646		187,028		10,999			2,299			2,077			(2,211	)		200,192
Total comprehensive loss		-		-		-			-			(815	)		(7,667	)		(8,482	)
Dividend declared (Note 8e)		-		-		-			-			-			(1,196	)		(1,196	)
Shares issued for the Kinross Portfolio (Note 4b)		11,228,674		48,907		-			-			-			-			48,907
Shares issued for options exercised (Note 8c)		508,964		1,070		-			(451	)		-			-			619
Share-based compensation		125,205		504		-			1,162			-			-			1,666
As at December 31, 2019 - Restated (Note 2g)		119,578,489		237,509		10,999			3,010			1,262			(11,074	)		241,706
Total comprehensive income		-		-		-			-			3,064			23,719			26,783
Dividends declared (Note 8e)		-		-		-			-			-			(5,166	)		(5,166	)
Shares issued for the Newmont Portfolio (Note 4)		12,000,000		59,826		-			-			-			-			59,826
Shares issued for warrants exercised (Note 8b)		8,250,000		19,922		(4,390	)		-			-			-			15,532
Shares issued for options exercised (Note 8c)		650,580		1,238		-			(618	)		-			-			620
Share-based compensation		9,240		35		-			1,653			-			-			1,688
As at December 31, 2020		140,488,309		318,530		6,609			4,045			4,326			7,479			340,989

The accompanying notes are an integral part of these consolidated financial statements.

7

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

1. NATURE OF OPERATIONS

Maverix Metals Inc. (“Maverix” or the “Company”) is incorporated and domiciled in Canada and its registered head office address is Suite 575, 510 Burrard Street, Vancouver, British Columbia, V6C 3A8, Canada. The Company’s common shares trade on the New York Stock Exchange American and Toronto Stock Exchange under the symbol “MMX”.

Maverix is a resource-based company that seeks to acquire and manage royalties and metal purchase agreements (a “Stream” or “Streams”) on projects that are in an advanced stage of development, on operating mines producing precious or other metals, or in some circumstances, exploration stage projects. Royalty interests (“Royalty” or collectively, “Royalties”) are non-operating interests in mining projects that provide Maverix with the right to a percentage of the gross revenue from the metals produced from the project (a “Gross Revenue Royalty” or “GRR”) or, the net revenue after the deduction of specified costs (a “Net Smelter Returns Royalty” or “NSR” royalty). Under a Stream interest, Maverix makes an upfront payment to acquire the Stream and then receives the right to purchase, at a fixed or variable price per unit based on the spot price of the precious or other metal, a percentage of a mine’s production for the life of mine or a specified time period.

These consolidated financial statements were approved and authorized for issue by the Board of Directors of the Company on March 22, 2021.

2. SIGNIFICANT ACCOUNTING POLICIES

a) Statement of Compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standard Board (“IASB”).

b) Basis of Preparation

These consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments, which are measured at fair value. The consolidated financial statements are presented in United States dollars (“USD”) (Note 2g), unless otherwise noted.

c) Principles of Consolidation

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including its principal subsidiaries Maverix Metals (Australia) Pty Ltd. and Maverix Metals (Nevada) Inc. Subsidiaries are fully consolidated from the date the Company obtains control and continues to be consolidated until the date that control ceases. Control is achieved when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

All intercompany balances, transactions, revenues and expenses have been eliminated on consolidation.

d) Royalty, Stream and Other Interests

Royalty, stream and other interests consist of acquired royalty, stream and other interests. These interests are recorded at cost and capitalized as tangible assets with finite lives. They are subsequently measured at cost less accumulated depletion and accumulated impairment losses, if any. Project evaluation expenses that are not related to a specific royalty or stream asset are expensed in the period incurred.

Producing royalty and stream interests are depleted using the units-of-production method over the life of the property to which the interest relates, which is estimated using available information of proven and probable reserves and the portion of resources expected to be classified as mineral reserves at the mine corresponding to the specific agreement.

8

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

On acquisition of a royalty or stream interest, an allocation of its fair value may be attributed to the exploration potential of the interest (non-depletable interest) and is accounted for in accordance with IFRS 6, Exploration and Evaluation of Mineral Resources (“IFRS 6”). Once the technical feasibility, commercial viability and a development decision have been established, the value of the asset is reclassified and accounted for in accordance with IAS 16, Property, Plant and Equipment (“IAS 16”). The exploration and evaluation asset is subject to an impairment test prior to reclassification in accordance with IFRS 6.

e) Impairment of Royalty, Stream and Other Interests

Evaluation of the carrying values of each mineral interest is undertaken when events or changes in circumstances indicate that the carrying values may not be recoverable. Impairment is assessed at the level of cash-generating units, which is the smallest identifiable group of assets that generates cash inflows and largely independent of the cash inflows from other assets. This is usually at the individual royalty, stream, or other interest level for each property from which cash inflows are generated.

An impairment loss is recognized for the amount by which the asset’s carrying value exceeds its recoverable amount, which is the higher of its fair value less costs of disposal (“FVLCD”) and its value in use (“VIU”). Estimated future cash flows are calculated using estimated production, sales prices and a discount rate. Estimated future production is determined using current reserves and the portion of resources expected to be classified as mineral reserves, as well as exploration potential expected to be converted into resources or reserves. Estimated sales prices are determined by reference to an average of long-term metal price forecasts by research analysts and management’s expectations. The discount rate is estimated using an average discount rate incorporating research analyst views used to value precious metal royalty and streaming companies. All inputs used are those that an independent market participant would consider appropriate. In addition, the Company may use other market approaches for determining the recoverable amount which may include an estimate of (i) dollar value per unit of mineral reserve/resource; (ii) cash-flow multiples; (iii) comparable transactions or (iv) market capitalization of comparable assets.

An assessment is made at each reporting period if there is any indication that a previous impairment loss may no longer exist or has decreased. If indications are present, the carrying value of the royalty or stream interest is increased to the revised estimate of its recoverable amount to the extent that the increased carrying amount does not exceed the carrying amount net of depletion that would have been determined had no impairment loss been recognized for the royalty or stream interest in previous periods.

Royalty and stream interests classified as exploration and evaluation assets are assessed for impairment whenever indicators of impairment exist in accordance with IFRS 6. An impairment loss is recognized for the amount by which the asset’s carrying value exceeds its recoverable amount.

f) Revenue Recognition

Revenue is comprised of revenue earned from royalty, stream and other interests. The Company recognizes revenue upon the transfer of control of the relevant commodity to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those commodities.

For Royalty interests, revenue recognition occurs when control of the relevant commodity is transferred to the end customer by the operator of the royalty property. Revenue is measured at the fair value of the consideration received or receivable when management can reliably estimate the amount, pursuant to the terms of the royalty agreement. In some instances, the Company will not have access to sufficient information to make a reasonable estimate of consideration to which it expects to be entitled and, accordingly, revenue recognition is deferred until management can make a reasonable estimate. Differences between estimates and actual amounts are adjusted and recorded in the period that the actual amounts are known.

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Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

For Streams, revenue recognition occurs when the relevant commodity received from the stream operator is delivered by the Company to its third-party customers. Revenue is measured at the fair value of the consideration received or receivable when management can reliably estimate the amount, pursuant to the terms of the sales contract.

g) Foreign Currency Translation

The functional currency of the Company and its subsidiaries is the principal currency of the economic environment in which they operate. The functional currency of the Company and its significant wholly-owned subsidiaries is the USD.

Foreign currency transactions, including revenues and expenses, are translated into the functional currency at the rate of exchange prevailing on the date of each transaction or valuation when items are re-measured. Monetary assets and liabilities denominated in currencies other than the operation’s functional currencies are translated into the functional currency at exchange rates in effect at the balance sheet date. Foreign exchange gains and losses resulting from the settlement of those transactions and from period-end translations are recognized in the consolidated statement of income (loss).

Effective January 1, 2020, the Company elected to change its presentation currency from the Canadian dollar (“CAD”) to USD. The change in presentation currency is to better reflect the Company’s business activities and to improve investors’ ability to compare the Company’s financial results with other publicly traded precious metals royalty and streaming companies. The Company has applied the change to USD presentation currency retrospectively and restated the comparative financial information as if the new presentation currency had always been the Company’s presentation currency.

h) Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, right of first refusal (“ROFR”) receivable, investments, trade and other payables, and the credit facility. All financial instruments are initially recorded at fair value and designated as follows:

Cash and cash equivalents include cash on account and short-term deposits with maturities from the date of acquisition of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. Cash and cash equivalents are subsequently measured at amortized cost using the effective interest rate method.

Trade receivables relate to amounts received from sales of refined gold and silver and royalty revenue. ROFR receivable relates to the underlying right of a property owner to repurchase a specific royalty (Note 4). These receivables are non-interest bearing and are recognized at fair value and are subsequently measured at amortized cost. We have applied the simplified approach to determining expected credit losses, which requires expected lifetime losses to be recognised upon initial recognition of the receivables.

Investments in common shares are designated as fair value through profit and loss (“FVTPL”) unless they are irrevocably designated, on an individual basis, as fair value through other comprehensive income (“FVTOCI”). Investment transactions are recognized on the trade date with transaction costs included in the underlying balance. Fair values are determined by reference to quoted market prices at the statement of financial position date.

When investments in common shares designated as FVTOCI are disposed of, the cumulative gains and losses recognized in other comprehensive income are not recycled to the consolidated statement of income (loss) and remain within equity. Dividends received are recognized in income and these investments are not assessed for impairment.

The consideration for investments in units including common shares and share purchase warrants are allocated on a pro-rata basis, based on relative fair values at the date of issuance. The fair value of common shares are based on the market closing price. The fair value of share purchase warrants is determined using the quoted market price or if the warrants are not traded, using the Black-Scholes Model (“BSM”) as of the date of issuance.

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Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

Investments in warrants are classified as FVTPL. These warrants are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized as a component of net income (loss).

Trade and other payables and the credit facility are initially recorded at fair value, less transaction costs. These financial liabilities are subsequently measured at amortized cost, calculated using the effective interest rate method.

i) Inventory

When refined gold or silver is delivered to the Company under a Stream agreement it is initially recorded as inventory. The amount recognized as inventory includes both the cash payment and the related depletion associated with the underlying Stream interest. At such time the inventory is sold, the amounts recognized in inventory are recorded as cost of sales and depletion.

j) Income taxes

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used are those that are substantively enacted at the reporting date.

Deferred income taxes are provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for accounting. The change in the net deferred income tax asset or liability is included in income, except for deferred income tax relating to equity items which are recognized directly in equity. The income tax effects of differences in the periods when revenue and expenses are recognized in accordance with the Company’s accounting practices, and the periods they are recognized for income tax purposes are reflected as deferred income tax assets or liabilities. Deferred income tax assets and liabilities are measured using the substantively enacted statutory income tax rates which are expected to apply to taxable income in the years in which the assets are realized or the liabilities settled. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available for utilization. Temporary differences arising on the initial recognition of assets or liabilities that affect neither accounting nor taxable profit are not recognized.

Deferred income tax assets and liabilities are offset only if a legally enforceable right exists to offset current tax assets against liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on the same taxable entity and are intended to be settled on a net basis.

The determination of current and deferred taxes requires interpretations of tax legislation, estimates of expected timing of reversal of deferred tax assets and liabilities, and estimates of future earnings.

k) Share Capital and Share Purchase Warrants

Common shares are classified as equity. Incremental costs directly attributable to the issuance of shares are recognized as a deduction from the proceeds in equity in the period where the transaction occurs.

The fair value of common shares issued for goods and services is based on the fair value of the goods or services received unless the fair value cannot be readily determined. If the fair value cannot be readily determined, the Company uses the market closing price on the date the shares are issued, while the fair value of share purchase warrants is estimated using the quoted market price or if the warrants are not traded, using the BSM as of the date of issuance.

Share purchase warrants issued with an exercise price denominated in the Company’s functional currency (USD) are considered equity instruments with the consideration received reflected within shareholders’ equity under the classification of share purchase warrants reserve. Upon exercise, the original consideration is reallocated from share purchase warrants reserve to issued share capital along with the associated exercise price.

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Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

l) Earnings Per Share

Basic earnings per share is computed by dividing the net income attributable to common shareholders by the weighted average number of common shares issued and outstanding during the period. Diluted earnings per share reflects the effect of all potentially dilutive common share equivalents, which includes dilutive share options, restricted share units (“RSUs”) and warrants computed using the treasury stock method.

m) Share Based Payments

The Company recognizes share based compensation expense for share purchase options, RSUs and common shares granted to directors, officers, employees and consultants under the Company’s equity-based incentive plans based on the fair values at the date of grant.

Share purchase options

The fair value of share purchase options is determined using the BSM, with market related inputs as of the grant date. The BSM requires management to estimate the expected volatility, expected term, risk-free rate of return over the term, expected dividends, and the number of equity instruments expected to ultimately vest. Volatility is estimated using the historic stock price of the Company and similar listed entities, the expected term is estimated using historical exercise data of the Company and similar listed entities, and the number of equity instruments expected to vest is estimated using historical forfeiture data.

The fair values of share purchase options at the date of grant are expensed over the vesting periods with a corresponding increase to equity. Share purchase options with graded vesting schedules are accounted for as separate grants with different vesting periods and fair values.

Restricted share units

The fair value of RSUs is determined by the market value of the underlying shares at the date of the grant. Under the Company’s RSU Plan, the Board of Directors has the discretion to settle the vested RSUs in cash or equity. As the Company does not have a present obligation to settle the issued RSUs in cash, the RSUs issued have been treated as equity-settled instruments. The fair values of RSUs at the date of grant are expensed over the vesting periods with a corresponding increase to equity. At the end of each reporting period, the Company re-assesses its estimates of the number of awards that are expected to vest and recognizes the impact of any revisions to this estimate in equity.

Common shares

The fair value of common shares granted is determined by the market value of the underlying shares at the date of the grant. The fair value of the common shares is expensed with a corresponding increase to equity.

n) Related Party Transactions

Parties are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or significant influence. A transaction is considered a related party transaction when there is a transfer of resources or obligations between related parties.

o) Segment Reporting

The Company’s reportable operating segments are components of the Company’s business where discrete financial information is available and which are evaluated on a regular basis by the Company’s Chief Executive Officer, who is the Company’s chief operating decision maker, for the purpose of assessing performance. An operating segment is a component of an entity that engages in business activities, operating results are reviewed with respect to resource allocation and for which discrete financial information is available. The Company’s executive head office and general corporate administration (including finance expenses) are included within ‘Corporate’ to reconcile the reportable segments to the consolidated financial statements. Refer to Note 14 for summary of the Company’s segmented information.

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Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

3. CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

The preparation of the Company’s consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates.

Information about significant areas of estimation uncertainty and judgments made by management in preparing the consolidated financial statements are described below.

a) Attributable Reserve and Resource Estimates

Royalty, stream and other interests comprise a large component of the Company’s assets and as such, the mineral reserves and resources of the properties to which the interests relate have a significant effect on the Company’s consolidated financial statements. The Company estimates the reserves and resources relating to each agreement. Reserves are estimates of the amount of minerals that can be economically and legally extracted from the mining properties at which the Company has royalty, stream or other interest, adjusted where applicable to reflect the Company’s percentage entitlement to minerals produced from such mines. The Company estimates its reserves and resources based on information compiled by appropriately qualified persons relating to the geological data on the size, depth, and shape of the ore body, and requires complex geological judgments to interpret the data. The estimation of recoverable reserves is based upon factors such as estimates of foreign exchange rates, commodity prices, future capital requirements, and production costs along with geological assumptions and judgments made in estimating the size and grade of the ore body. Changes in the reserve or resource estimates may impact the carrying value of the Company’s royalty, stream and other interests and depletion charges.

The Company’s royalty, stream and other interests are depleted on a units-of-production basis, with estimated recoverable reserves and resources being used to determine the depletion rate for each of the Company’s royalty, stream and other interests. These calculations require the use of estimates and assumptions, including the amount of recoverable resources to be converted into reserves. Changes to depletion rates are accounted for prospectively.

b) Fair Value of Acquired Royalty, Stream and Other Interests

The determination of the fair values of acquired royalty, stream and other interests requires the use of estimates and assumptions for recoverable production, commodity prices, discount rates, mineral reserve/resource conversion, foreign exchange rates, taxes, future capital expansion plans and the associated production implications. In addition, the Company may use other approaches in determining fair value which may include estimates related to (i) dollar value per unit of mineral reserve/resource; (ii) cash-flow multiples; (iii) comparable transactions and (iv) market capitalization of comparable assets. Changes in any of the estimates used in determining the fair value could impact the acquisition date fair values of the royalty, stream and other interests.

c) Impairment of Royalty, Stream and Other Interests

Assessment of impairment of royalty, stream and other interests requires the use of judgments, assumptions and estimates when assessing whether there are any indicators that could give rise to the requirement to conduct a formal impairment test as well as in the assessment of fair values.

The assessment of the fair values of royalty, stream and other interests requires the use of estimates and assumptions for recoverable production, commodity prices, discount rates, mineral reserve/resource conversion, foreign exchange rates, taxes, future capital expansion plans and the associated production implications. In addition, the Company may use other approaches in determining fair value which may include estimates related to (i) dollar value per unit of mineral reserve/resource; (ii) cash-flow multiples; (iii) comparable transactions and (iv) market capitalization of comparable assets. Changes in any of the estimates used in determining the fair value of the royalty, stream and other interests could impact the impairment analysis.

During the year ended December 31, 2020, no impairment charges were recorded. During the year ended December 2019, the Company recorded an impairment charge of $14.2 million (Note 5b).

13

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

d) Income Taxes

The interpretation of new and existing tax laws or regulations in Canada, Australia, the United States of America, or any of the countries in which our royalty, stream and other interests are located or to which shipments of gold or silver are made or received requires the use of judgment. Differing interpretation or changes to these laws or regulations could result in an increase in the Company’s taxes, or other governmental charges, duties or impositions. In addition, the recoverability of deferred income tax assets, including expected periods of reversal of temporary differences and expectations of future taxable income, are assessed by management at the end of each reporting period and adjusted, as necessary, on a prospective basis. Refer to Note 13 for more information.

e) Estimation Uncertainty and COVID-19

In March 2020, the World Health Organization declared a global pandemic related to COVID-19. The current and expected impacts on global commerce are anticipated to be far reaching. To date there has been significant volatility in the stock market and in the commodity and foreign exchange markets, restrictions on the conduct of business in many jurisdictions and the global movement of people and some goods has become restricted. In the current environment, estimates and assumptions about future production, commodity prices, exchange rates, discount rates, future capital expansion plans and associated production implications at the underlying mines in which the Company holds a royalty or stream interest are subject to greater variability than normal, which could significantly affect the valuation of our assets, both non-financial and financial. As at December 31, 2020, the Company has not recorded any adjustments related to the COVID-19 pandemic.

4. ROYALTY AND STREAM TRANSACTIONS

a) During the Year Ended December 31, 2020

Newmont Portfolio Acquisition

In October 2020, the Company completed the Purchase and Sale Agreement (the “Agreement”) entered into with Newmont Corporation (“Newmont”) to acquire a portfolio of 11 royalties (the “Newmont Portfolio”). As consideration for the Newmont Portfolio, the Company issued 12,000,000 common shares and paid $15.0 million in cash and has agreed to make contingent cash payments of up to $15.0 million if certain production milestones at certain underlying assets are achieved within five years of closing the Agreement.

Certain of the royalties that were due to be transferred pursuant to the Agreement were subject to certain restrictions on transfer, including a ROFR that permitted the underlying property owner the right to repurchase the specific royalty for cash consideration. The Company has committed to dispose the 1.0% NSR royalty on the Yecora project for cash consideration of $1.5 million. The Yecora royalty has been classified as an asset held for sale at the time of acquisition and at December 31, 2020.

The fair value of the Newmont Portfolio acquired was determined to be $75.0 million. The Company used discounted cash flow models for near-term development assets and comparable transactions for exploration or other assets to determine the fair value of the individual assets within the Newmont Portfolio. The discounted cash flow models used discount rates of 4% to 15% depending on the stage and risk profile of the assets. Metal prices were based on analyst metal price projections and management expectations.

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Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

The excess of the fair value of the Newmont Portfolio of $75.0 million over the cash consideration paid of $15.0 million was allocated to the common shares.

The significant royalties acquired in the Newmont Portfolio include the 2.0% NSR royalty on the oxide and transitional ore of the Camino Rojo project owned by Orla Mining Ltd. and the 1.0% NSR royalty on the Cerro Blanco project owned by Bluestone Resources Inc. The Company also acquired nine development and exploration stage royalties, of which, there are four in the United States, two in Canada and three in Mexico.

Beta Hunt Royalty Amendment

In September 2020, Maverix closed an agreement with Karora Resources Inc. to reduce the gold royalty on the Beta Hunt mine from 7.5% to 4.75%, effective July 1, 2020 (the “Amendment”). Upon closing the Amendment, Maverix received $13.0 million for the reduction of its royalty interest in the Beta Hunt mine and received $2.5 million of the $5.0 million one-time bonus royalty (the “Bonus Royalty Payment”). The remaining $2.5 million of the Bonus Royalty Payment owed was received in January 2021 (Note 17). The Bonus Royalty Payment was recorded as deferred revenue and will be amortized into royalty revenue over approximately one and a half years from the effective date. The Company recorded and paid $4.3 million in current taxes and recognized a deferred tax asset of $0.9 million during the year ended December 31, 2020 as a result of the Amendment.

b) During the Year Ended December 31, 2019

Kinross Portfolio Acquisition

In December 2019, the Company completed the Purchase and Sale Agreement (the “PSA”) entered into with Kinross Gold Corporation (“Kinross”) to acquire a portfolio of royalties (the “Kinross Portfolio”). As consideration, the Company issued 11,228,674 common shares and paid $25.0 million in cash.

The fair value of the Kinross Portfolio acquired was determined to be $74.0 million. The Company used discounted cash flow models for producing or near-term development assets and comparable transactions for exploration or other assets to determine the fair value of the individual assets within the Kinross Portfolio. The discounted cash flow models used discount rates of 5% to 10% depending on the stage and risk profile of the assets. Metal prices were based on analyst metal price projections and management expectations.

Certain of the royalties that were due to be transferred pursuant to the PSA were subject to certain restrictions on transfer, including a ROFR that permitted the underlying property owner the right to repurchase the specific royalty for cash on the same valuation as established by Kinross and Maverix. Prior to the Company completing the PSA, one of the underlying property owners provided notification they were exercising their ROFR. After the exercise of the ROFR, Maverix acquired a total of 24 royalties (the “Kinross Portfolio”) pursuant to the PSA and received aggregate total proceeds of $12.0 million in cash upon the completion of the ROFR transaction.

The excess of the fair value of the Kinross Portfolio of $74.0 million over the cash consideration paid of $25.0 million was allocated to the common shares.

Additional Royalty on Hope Bay

In August 2019, Maverix entered into an agreement to purchase an additional 1.5% NSR royalty on the Hope Bay mine in Nunavut, Canada, previously owned and operated by TMAC Resources Inc. (“TMAC”) for a cash payment of $40.0 million (the “Additional Royalty”). Upon closing of the transaction, Maverix owned a combined 2.5% NSR royalty on the Hope Bay mine. Maverix was also entitled to receive an additional 0.25% NSR royalty until certain conditions with respect to the Additional Royalty were satisfied.

TMAC had the right to buy back the entire Additional Royalty for a cash payment of $50.0 million in the event of a change of control transaction of TMAC (as defined in the Additional Royalty agreement) that was announced prior to June 30, 2021. Subsequent to December 31, 2020, the buyback right for the entire Additional Royalty was exercised (Note 17).

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Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

El Mochito Stream

In March 2019, Maverix entered into an agreement to purchase 22.5% of the silver produced from Kirungu Corporation’s (“Kirungu”) operating El Mochito mine (the “El Mochito Stream”). As consideration for the El Mochito Stream, Maverix made an upfront cash payment of $7.5 million. If certain production milestones are met, the El Mochito Stream percentage will decrease from 22.5% to 20% for the remaining life of the mine. Maverix will make ongoing cash payments to Kirungu equal to 25% of the spot price of silver for each ounce delivered.

5. ROYALTY, STREAM AND OTHER INTERESTS

a) Carrying Amount

As at and for the year ended December 31, 2020:

			Cost							Accumulated Depletion
	Country		Opening		Additions/ (Disposals)			Ending		Opening			Depletion			Disposals		Ending			Carrying Amount
				$		$			$		$			$			$		$			$
Beta Hunt		AUS		14,875		(5,454	)		9,421		(6,638	)		(706	)		2,581		(4,763	)		4,658
Camino Rojo		MEX		-		40,173			40,173		-			-			-		-			40,173
Cerro Blanco		GTM		-		16,069			16,069		-			-			-		-			16,069
Cerro Casale		CHL		7,053		-			7,053		-			-			-		-			7,053
Converse		USA		10,039		-			10,039		-			-			-		-			10,039
DeLamar		USA		9,068		-			9,068		-			-			-		-			9,068
El Mochito		HON		7,710		24			7,734		(1,516	)		(1,122	)		-		(2,638	)		5,096
Florida Canyon		USA		12,823		-			12,823		(2,189	)		(712	)		-		(2,901	)		9,922
Gemfield		USA		8,799		-			8,799		-			-			-		-			8,799
Hope Bay		CAN		63,324		-			63,324		(1,950	)		(1,671	)		-		(3,621	)		59,703
Karma		BFA		20,080		-			20,080		(4,062	)		(1,992	)		-		(6,054	)		14,026
La Colorada		MEX		17,400		-			17,400		(3,262	)		(1,171	)		-		(4,433	)		12,967
McCoy-Cove		USA		18,553		-			18,553		-			-			-		-			18,553
Moose River		CAN		3,700		-			3,700		(1,544	)		(843	)		-		(2,387	)		1,313
Moss		USA		20,283		-			20,283		(1,617	)		(3,480	)		-		(5,097	)		15,186
Mt Carlton		AUS		9,436		-			9,436		(4,638	)		(2,104	)		-		(6,742	)		2,694
Omolon		RUS		10,076		17			10,093		(399	)		(3,093	)		-		(3,492	)		6,601
San Jose		MEX		5,500		-			5,500		(2,302	)		(591	)		-		(2,893	)		2,607
Silvertip		CAN		4,340		-			4,340		(454	)		-			-		(454	)		3,886
Vivien		AUS		3,301		-			3,301		(2,593	)		(254	)		-		(2,847	)		454
Other		Various		83,375		17,394			100,769		(15,166	)		(260	)		-		(15,426	)		85,343
Total(1)				329,735		68,223			397,958		(48,330	)		(17,999	)		2,581		(63,748	)		334,210

⁽¹⁾ Royalty, stream and other interests includes non-depletable assets of $76.0 million and depletable assets of $258.2 million.

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Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

As at and for the year ended December 31, 2019:

			Cost						Accumulated Depletion												Carrying
	Country		Opening		Additions		Ending		Opening			Depletion			Impairment			Ending			Amount
				$		$		$		$			$						$			$
Amulsar		ARM		14,241		-		14,241		-			-			(14,241	)		(14,241	)		-
Beta Hunt		AUS		14,875		-		14,875		(4,886	)		(1,752	)		-			(6,638	)		8,237
Cerro Casale		CHL		-		7,053		7,053		-			-			-			-			7,053
Converse		USA		10,039		-		10,039		-			-			-			-			10,039
DeLamar		USA		-		9,068		9,068		-			-			-			-			9,068
El Mochito		HON		-		7,710		7,710		-			(1,516	)		-			(1,516	)		6,194
Florida Canyon		USA		12,215		608		12,823		(1,516	)		(673	)		-			(2,189	)		10,634
Gemfield		USA		8,799		-		8,799		-			-			-			-			8,799
Hope Bay		CAN		23,305		40,019		63,324		(772	)		(1,178	)		-			(1,950	)		61,374
Karma		BFA		20,073		7		20,080		(2,346	)		(1,716	)		-			(4,062	)		16,018
La Colorada		MEX		17,400		-		17,400		(2,338	)		(924	)		-			(3,262	)		14,138
McCoy-Cove		USA		12,004		6,549		18,553		-			-			-			-			18,553
Moose River		CAN		3,700		-		3,700		(852	)		(692	)		-			(1,544	)		2,156
Moss		USA		20,273		10		20,283		(70	)		(1,547	)		-			(1,617	)		18,666
Mt Carlton		AUS		9,436		-		9,436		(3,622	)		(1,016	)		-			(4,638	)		4,798
Omolon		RUS		-		10,076		10,076		-			(399	)		-			(399	)		9,677
San Jose		MEX		5,500		-		5,500		(1,748	)		(554	)		-			(2,302	)		3,198
Silvertip		CAN		4,340		-		4,340		(101	)		(353	)		-			(454	)		3,886
Vivien		AUS		3,293		8		3,301		(2,030	)		(563	)		-			(2,593	)		708
Other		Various		39,504		29,630		69,134		(627	)		(298	)		-			(925	)		68,209
Total(1)				218,997		110,738		329,735		(20,908	)		(13,181	)		(14,241	)		(48,330	)		281,405

⁽¹⁾ Royalty, stream and other interests includes non-depletable assets of $51.5 million and depletable assets of $229.9 million.

b) Royalty interest impairment

In December 2019, Lydian International Limited (“Lydian”) announced it was granted creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”) in order to restructure its business and affairs. The CCAA filing, amongst other facts and circumstances, were considered indicators of impairment. As a result of the Company’s review of the circumstances specific to its royalty payment agreement with Lydian, the Company recorded an impairment of $14.2 million.

17

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

6. INVESTMENTS

As at and for the year ended December 31, 2020:

	Balance at December 31, 2019		Additions		Disposals			Exercise and Transfers			Fair Value Adjustments		Balance at December 31, 2020
Short-term investments
Common shares(1)	$	-	$	8,205	$	(501	)	$	7,020		$	3,466	$	18,190
Warrants(2)		-		8		-			(1,851	)		1,891		48
Total short-term investments	$	-	$	8,213	$	(501	)	$	5,169		$	5,357	$	18,238
Non-current investments
Common shares(1)	$	7,006	$	1,519	$	(1,505	)	$	(7,020	)	$	-	$	-
Convertible debenture(2)		-		1,000		-			-			-		1,000
Warrants(2)		142		-		-			(142	)		-		-
Total non-current investments	$	7,148	$	2,519	$	(1,505	)	$	(7,162	)	$	-	$	1,000
Total investments	$	7,148	$	10,732	$	(2,006	)	$	(1,993	)	$	5,357	$	19,238

(1)	Fair value adjustments recorded within Other comprehensive income (loss).
(2)	Fair value adjustments recorded within Net income (loss).

In December 2020, Northern Vertex Mining Corp. (“Northern Vertex”) announced a merger with Eclipse Gold Mining Corporation and a concurrent CAD$20.0 million financing (the “Financing”). As part of the Financing, the Company agreed to exercise 19.5 million share purchase warrants at CAD$0.40 per common share of Northern Vertex and sell the underlying common shares received for CAD$0.50 per common share. The Financing closed subsequent to December 31, 2020 (Note 17).

In April 2020, the Company acquired a $1.0 million convertible debenture (the “Debenture”). The Debenture has a two year term, bears interest at 12% per annum and is convertible into up to 19.9% of the total issued and outstanding capital stock of Kirungu, the right to purchase an additional 3% of the silver from the operating El Mochito mine on the same terms as the existing El Mochito silver Stream, or a 0.3% NSR Royalty on all metals produced from any mining properties or projects owned by Kirungu.

As at and for the year ended December 31, 2019:

	Balance at December 31, 2018		Additions		Disposals		Fair Value Adjustments			Balance at December 31, 2019
Common shares	$	4,224	$	3,597	$	-	$	(815	)	$	7,006
Warrants		234		-		-		(92	)		142
Total investments	$	4,458	$	3,597	$	-	$	(907	)	$	7,148

Concurrent with the acquisition of the Additional Royalty (Note 4b), the Company subscribed for $3.0 million of TMAC common shares.

18

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

7. CREDIT FACILITY

The Company amended and increased its revolving credit agreement to borrow up to $120 million (the “Credit Facility”) in 2019. Amounts drawn on the amended Credit Facility are subject to interest at LIBOR plus 2.00% to 3.00% per annum, and the undrawn portion is subject to a standby fee of 0.45% to 0.675% per annum, both of which are dependent on the Company's leverage ratio (as defined in the Credit Facility agreement). During the year ended December 31, 2020, the Company paid approximately 2.9% (2019: 4.4%) on amounts drawn and 0.6% (2019: 0.5%) on the remaining undrawn portion. The Credit Facility is secured by the Company’s present and future acquired assets, matures in June 2023, and is extendable through mutual agreement between Maverix and the syndicate of lenders.

The following table summarizes the Company’s Credit Facility as at December 31, 2020 and 2019 and changes during the years then ended:

	Credit Facility
Balance at December 31, 2018	$	12,300
Proceeds		62,000
Repayment		(5,300	)
Balance at December 31, 2019		69,000
Proceeds		20,000
Repayment		(57,000	)
Balance at December 31, 2020	$	32,000

Amortization of the deferred financing costs related to the Credit Facility for the years ended December 31, 2020 and 2019 were $0.3 million and $0.3 million, respectively. As at December 31, 2020 the Company was in compliance with all of the covenants related to the Credit Facility.

8. SHARE CAPITAL

a) Authorized, Issued and Outstanding shares

The Company is authorized to issue an unlimited number of common shares without par value and preferred shares. No preferred shares have been issued.

b) Share Purchase Warrants

The following table summarizes warrants which were outstanding and exercisable as at December 31, 2020 and 2019 and changes during the years then ended:

	Number of warrants outstanding			Weighted average exercise price per warrant
Balance at December 31, 2018 and 2019		18,250,000		$	2.41
Exercised		(8,250,000	)	$	1.89
Balance at December 31, 2020		10,000,000		$	2.84

In June 2020, 8,250,000 common share purchase warrants were exercised for gross proceeds of $15.6 million to the Company. The common share price was $4.29 per share at the time the warrants were exercised.

19

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

A listing of the Company’s outstanding warrants as at December 31, 2020 is presented below:

Number outstanding		Exercise Price		Expiry Date
	5,000,000	$	2.41		December 23, 2021
	5,000,000	$	3.28		June 29, 2023
	10,000,000

c) Share Based Payments - Share Option Plan

The Company adopted a stock option and compensation share plan (the “Plan”), which provides that the Board of Directors may, at its discretion, grant directors, officers, employees and consultants, either, (i) common shares of the Company or (ii) non-transferable stock options to purchase common shares of the Company, each set at a price determined by the fair market value of the shares at the date immediately preceding the date on which the option is granted or the common share is issued. Under the Plan, the aggregate number of common shares of the Company reserved for issuance is 7,500,000 common shares. If any option granted under the Plan expires or terminates for any reason in accordance with the terms of the Plan without being exercised, that option shall again be available for the purpose of the Plan. All stock options and incentive shares issued under the Plan vest over a period determined by the Board of Directors. Incentive stock options issued under the Plan expire up to five years after issuance.

The following table summarizes stock options which were outstanding and exercisable as at December 31, 2020 and 2019 and changes during the years then ended:

	Number of Options  Outstanding			Weighted average exercise price per option (CAD$)
Balance at December 31, 2018		3,176,518		$	2.28
Granted		1,211,565		$	5.38
Exercised		(508,964	)	$	1.62
Forfeited		(45,000	)	$	5.18
Balance at December 31, 2019		3,834,119		$	3.31
Granted		953,255		$	5.21
Exercised		(650,580	)	$	1.25
Forfeited		(67,910	)	$	5.17
Balance at December 31, 2020		4,068,884		$	4.05
Options which have vested and are exercisable as at December 31, 2020		2,600,257		$	3.35

A summary of the Company’s outstanding stock options as at December 31, 2020 is presented below:

Number outstanding		Exercise Price (CAD$)		Expiry Date
	285,750	$	1.08		April 10, 2021
	722,408	$	2.80		April 28, 2022
	156,081	$	2.80		May 30, 2022
	852,735	$	3.30		May 31, 2023
	848,252	$	5.18		April 3, 2024
	50,000	$	6.48		August 9, 2024
	268,313	$	5.83		December 12, 2024
	855,345	$	5.17		March 10, 2025
	30,000	$	6.54		September 24, 2025
	4,068,884

20

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

The following are the weighted-average assumptions used in the BSM to estimate the fair value of stock options granted for the years ended December 31, 2020 and 2019:

	Years ended
	December 31
	2020			2019
Risk-free interest rate		0.5	%		1.6	%
Expected volatility		45	%		47	%
Expected life		3 years			3 years
Expected dividend yield		1.1	%		0.2	%

The weighted-average common share price during the years ended December 31, 2020 and 2019, were $4.78 and $4.13 per share at the time the options were exercised, respectively. The weighted average remaining contractual life of the options as at December 31, 2020 was 2.73 years (2019: 3.04 years).

d) Share Based Payments –RSU Plan

The Company adopted a RSU Plan, which provides that the Board of Directors may, at its discretion, grant directors, officers, employees and consultants, non-transferable RSUs. Each RSU is set at a price determined by the fair market value of the shares at the date immediately preceding the date on which the RSU is granted. Under the RSU Plan, the aggregate number of common shares of the Company reserved for issuance is 3,000,000 common shares. If any RSU granted under the RSU Plan expires or terminates for any reason in accordance with the terms of the RSU Plan without vesting, that RSU shall again be available for the purpose of the Plan. All RSUs issued under the Plan vest after three years, unless otherwise determined on the grant date by the Board of Directors. The Board of Directors has the discretion to settle the vested RSUs in cash or equity.

The following table summarizes RSUs which were outstanding as at December 31, 2020 and 2019 and the changes during the years then ended:

	Number of RSUs Outstanding			Weighted average fair value per RSU (CAD$)
Balance at December 31, 2018		-			-
Granted		97,027		$	5.82
Balance at December 31, 2019		97,027		$	5.82
Granted		105,822		$	5.57
Forfeited		(10,155	)	$	5.17
Balance at December 31, 2020		192,694		$	5.72

e) Dividends

During the year ended December 31, 2020, the Company declared four and paid five separate dividends of $0.01 per common share. During the year ended December 31, 2019, the Company declared one dividend of $0.01 per common share.

21

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

9. OPERATING EXPENSES BY NATURE

 

	Years ended
	December 31
	2020		2019
Compensation and benefits	$	4,504	$	3,001
Corporate administration		969		864
Listing and filing fees		242		646
Professional fees		736		408
Amortization		147		122
Operating expenses before share-based compensation		6,598		5,041
Share-based compensation		1,688		1,666
Total operating expenses	$	8,286	$	6,707

10. EARNINGS PER SHARE

Basic and diluted earnings (loss) per share is calculated based on the following:

	Years ended
	December 31
	2020		2019
Net income (loss)	$	23,719	$	(7,667	)
Basic weighted average number of shares		126,730,500		108,363,047
Basic earnings (loss) per share	$	0.19	$	(0.07	)
Effect of dilutive securities
Warrants		7,431,541		-
Stock options		1,752,315		-
RSUs		61,183		-
Diluted weighted average number of common shares		135,975,539		108,363,047
Diluted earnings (loss) per share	$	0.17	$	(0.07	)

The following table lists the number of warrants, stock options and RSUs which were excluded from the computation of diluted earnings per share because the exercise prices plus the unamortized share-based compensation per share exceeded the average market value of the common shares during the year ended December 31, 2020, or the Company was in a net loss position during the year ended December 31, 2019.

 

	Years ended
	December 31
	2020		2019
Warrants		-		18,250,000
Stock options		58,033		3,834,119
RSUs		-		97,027

22

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

11. SUPPLEMENTAL CASH FLOW INFORMATION

	Years ended
	December 31
Changes in non-cash working capital:	2020			2019
Accounts receivable	$	(6,393	)	$	(2,484	)
Prepaid expenses and other		(170	)		(215	)
Trade payables and other		(297	)		(1,004	)
Dividend payable		-			1,196
Deferred revenue		3,333			-
Changes in non-cash working capital	$	(3,527	)	$	(2,507	)
Significant non-cash transactions:
Equity issued for Newmont and Kinross Portfolios (Note 4)	$	60,000		$	49,000
Settlement of receivables in equity investments		1,519			597
Cash and cash equivalents at the end of the year:
Cash at bank	$	7,760		$	4,828

12. RELATED PARTY DISCLOSURES

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, including any director of the Company. Compensation for key management personnel of the Company was as follows:

	Years ended
	December 31
	2020		2019
Compensation and benefits	$	3,632	$	2,530
Share-based compensation		1,532		1,471
Total compensation	$	5,164	$	4,001

During the years ended December 31, 2020 and 2019, the Company purchased $2.3 million and $2.4 million, respectively, of refined gold from Pan American Silver Corp. (“Pan American”) at a price of $650 per ounce purchased under its La Colorada gold Stream agreement (Note 16). As a consequence of its shareholding and other factors, Pan American is deemed to have significant influence over the Company.

The Company completed the acquisition of the Newmont Portfolio during the year ended December 31, 2020 (Note 4a). As a consequence of its shareholding and other factors, Newmont is deemed to have significant influence over the Company.

13. INCOME TAXES

Income tax recognized in net income is comprised of the following:

	Years ended
	December 31
	2020			2019
Current tax expense	$	7,392		$	1,183
Deferred tax recovery		(1,332	)		-
Income tax expense	$	6,060		$	1,183

23

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

The income tax expense differs from the amount that would result from applying the federal and provincial income tax rates to the income before income taxes due to the following:

	Years ended
	December 31
	2020			2019
Income (loss) before income taxes	$	29,779		$	(6,484	)
Statutory tax rate		27	%		27	%
Expected income tax expense (recovery)	$	8,040		$	(1,751	)
Increase (decrease) due to:
Foreign tax rate differences		583			210
Non-deductible expenses		448			318
Withholding taxes		548			319
Change in unrecognized temporary differences		(2,970	)		2,443
Recognition of temporary differences		(1,332	)		-
Effect of true-ups in prior year temporary and other differences		743			(356	)
Income tax expense	$	6,060		$	1,183

Deferred tax assets and liabilities

As at December 31, 2020, the Company has recognized gross deferred tax assets of $15.6 million related to Canadian non-capital losses (December 31, 2019: $5.5 million). These have been partially offset by $14.8 million of deferred tax liabilities primarily related to the Company’s royalty, stream and other interests (December 31, 2019: $4.7 million).

The following table summarizes the Company’s deferred income tax asset as at December 31, 2020 and 2019 and the changes during the years then ended:

 

	Years ended
	December 31
	2020			2019
Balance, beginning of the year	$	823		$	823
Recognized in net income (loss)		1,332			-
Recognized in other comprehensive income (loss)		(402	)		-
Balance, end of the year	$	1,753		$	823

The aggregate amount of deductible temporary differences for which deferred income tax assets have not been recognized are as follows:

	December 31, 2020		December 31, 2019
Royalty, stream and other interests	$	2,492	$	2,355
Financing costs and other		859		130
Non-capital losses		5,430		18,470
Total	$	8,781	$	20,955

As at December 31, 2020, the Company has deductible Canadian non-capital tax losses of $58.9 million that expire between 2038 to 2040.

24

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

14. SEGMENT INFORMATION

For the year ended December 31, 2020:

	Primary Product	Royalty revenue		Sales		Costs of sales, excluding depletion			Depletion			Gain on amendment of royalty interest		Income (loss) before taxes			Cash from (used in) operations
		$		$		$			$			$		$			$
Beta Hunt (AUS)	Gold		8,635		-		-			(706	)		9,291		17,220			9,533
El Mochito (HON)	Silver		-		3,716		(881	)		(1,122	)		-		1,713			2,836
Florida Canyon (USA)	Gold		2,551		-		-			(712	)		-		1,839			2,638
Hope Bay (CAN)	Gold		5,355		-		-			(1,671	)		-		3,684			2,998
Karma (BFA)	Gold		2,946		-		-			(1,992	)		-		954			2,636
La Colorada (MEX)	Gold		-		6,347		(2,345	)		(1,171	)		-		2,831			4,002
Moose River (CAN)	Gold		1,586		-		-			(843	)		-		743			1,521
Moss (USA)	Silver		-		8,929		(1,794	)		(3,480	)		-		3,655			7,135
Mt Carlton (AUS)	Gold		2,469		-		-			(2,104	)		-		365			2,112
Omolon (RUS)	Gold		4,792		-		-			(3,093	)		-		1,699			3,169
San Jose (MEX)	Silver		1,989		-		-			(591	)		-		1,398			1,736
Silvertip (CAN)	Silver		-		-		-			-			-		-			189
Vivien (AUS)	Gold		1,839		-		-			(254	)		-		1,585			1,596
Other (Various)	Various		527		-		-			(260	)		-		267			670
Total segments			32,689		18,992		(5,020	)		(17,999	)		9,291		37,953			42,771
Operating expenses			-		-		-			-			-		(8,286	)		(6,451	)
Foreign exchange gain			-		-		-			-			-		664			380
Unrealized gain on warrants			-		-		-			-			-		1,891			-
Finance expense			-		-		-			-			-		(2,456	)		-
Income taxes paid			-		-		-			-			-		-			(4,076	)
Other			-		-		-			-			-		13			376
Total corporate			-		-		-			-			-		(8,174	)		(9,771	)
Consolidated total			32,689		18,992		(5,020	)		(17,999	)		9,291		29,779			33,000

25

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

For the year ended December 31, 2019:

	Primary Product	Royalty revenue		Sales		Costs of sales, excluding depletion			Depletion			Royalty interest impairment			Income (loss) before taxes			Cash from (used in) operations
		$		$		$			$			$			$			$
Amulsar (ARM)	Gold		-		-		-			-			(14,241	)		(14,241	)		-
Beta Hunt (AUS)	Gold		4,786		-		-			(1,752	)		-			3,034			5,001
El Mochito (HON)	Silver		-		3,626		(874	)		(1,516	)		-			1,236			2,752
Florida Canyon (USA)	Gold		2,101		-		-			(673	)		-			1,428			1,610
Hope Bay (CAN)	Gold		3,124		-		-			(1,178	)		-			1,946			1,761
Karma (BFA)	Gold		2,305		-		-			(1,716	)		-			589			1,868
La Colorada (MEX)	Gold		-		5,216		(2,443	)		(924	)		-			1,849			2,773
Moose River (CAN)	Gold		1,124		-		-			(692	)		-			432			1,023
Moss (USA)	Silver		-		3,073		(610	)		(1,547	)		-			916			2,463
Mt Carlton (AUS)	Gold		2,941		-		-			(1,016	)		-			1,925			3,210
Omolon (RUS)	Gold		562		-		-			(399	)		-			163			-
San Jose (MEX)	Silver		1,471		-		-			(554	)		-			917			1,377
Silvertip (CAN)	Silver		941		-		-			(353	)		-			588			897
Vivien (AUS)	Gold		2,070		-		-			(563	)		-			1,507			2,093
Other (Various)	Various		372		-		-			(298	)		-			74			272
Total segments			21,797		11,915		(3,927	)		(13,181	)		(14,241	)		2,363			27,100
Operating expenses			-		-		-			-			-			(6,707	)		(4,919	)
Foreign exchange gain			-		-		-			-			-			(227	)		(160	)
Unrealized gain on warrants			-		-		-			-			-			(92	)		-
Finance expense			-		-		-			-			-			(1,813	)		-
Income taxes paid			-		-		-			-			-			-			(1,230	)
Other			-		-		-			-			-			(8	)		170
Total corporate			-		-		-			-			-			(8,847	)		(6,139	)
Consolidated total			21,797		11,915		(3,927	)		(13,181	)		(14,241	)		(6,484	)		20,961

26

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

Non-current Assets by Geographical Region:

	December 31, 2020		December 31, 2019
North America
USA	$	107,064	$	101,554
Canada		73,820		74,842
Mexico		64,847		20,936
South & Central America
Guatemala		16,069		-
Chile		10,073		10,073
Peru		8,400		8,400
Dominican Republic		5,160		6,195
Honduras		5,097		5,160
Other
Burkina Faso		14,156		16,148
Australia		9,152		15,089
Russia		6,601		9,677
Cote d’Ivoire		4,030		4,030
Ghana		3,527		3,527
Argentina		3,200		3,200
Various		3,974		3,946
Total(1)	$	335,170	$	282,777

⁽¹⁾ Includes royalty, stream, and other interests (Note 5) and deferred financing costs and other.

15. FINANCIAL RISK MANAGEMENT

The Company has exposure to a variety of financial risks from its use of financial instruments. This note presents information about the Company's exposure to each of these risks, the Company's objectives, policies and processes for measuring and managing risk, and the Company's management of capital.

Capital Risk Management

The Company’s primary objective when managing capital is to maximize returns for its shareholders by growing its asset base through accretive acquisitions of royalties, streams and other interests, while optimizing its capital structure by balancing debt and equity. At December 31, 2020, the capital structure of the Company consists of $341.0 million (December 31, 2019: $241.7 million) of total equity, comprising of share capital, reserves, accumulated other comprehensive income, and retained earnings (deficit), and $32.0 million (December 31, 2019: $69.0 million) of drawn Credit Facility. The Company was not subject to any externally imposed capital requirements with the exception of complying with certain covenants under the Credit Facility (Note 7). The Company is in compliance with its debt covenants at December 31, 2020.

Credit Risk

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company's credit risk is primarily attributable to its liquid financial assets including cash and cash equivalents and accounts receivables in the ordinary course of business. In order to mitigate its exposure to credit risk, the Company maintains its cash and cash equivalents in several high-quality financial institutions and closely monitors its accounts receivable balances. The Company’s accounts receivables are subject to the credit risk of the counterparties who own and operate the mines underlying Maverix’s royalty portfolio.

27

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

Currency Risk

Financial instruments that impact the Company’s net income due to currency fluctuations include: cash and cash equivalents, accounts receivable, investments, and trade payables and other denominated in Canadian and Australian dollars. Based on the Company’s Canadian and Australian dollar denominated monetary assets and liabilities at December 31, 2020, a 10% increase (decrease) of the value of the Canadian and Australian dollar relative to the USD would increase (decrease) net income by $0.3 million and other comprehensive income by $1.8 million, respectively.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company’s approach to managing liquidity is to ensure it will have sufficient liquidity to meet liabilities when due. In managing liquidity risk, the Company takes into account anticipated cash flows from operations, holding of cash and cash equivalents, and the amount available under the Credit Facility. As at December 31, 2020, the Company had cash and cash equivalents of $7.8 million (December 31, 2019: $4.8 million) and working capital of $35.1 million (December 31, 2019: $19.9 million). In addition, at December 31, 2020 the Company had $88.0 million available under its Credit Facility (Note 7).

Other Risks

The Company is exposed to equity price risk as a result of holding common shares in other mining companies with a combined fair market value as at December 31, 2020 of $18.2 million (December 31, 2019: $7.1 million) (Note 6). The equity prices of investments are impacted by various underlying factors including commodity prices and the volatility in global markets as a result of COVID-19 and the daily exchange traded volume of the equity may not be sufficient for the Company to liquidate its position in a short period of time without potentially affecting the market value of the equity. Based on the Company’s investments held as at December 31, 2020, a 10% increase (decrease) in the equity prices of these investments would increase (decrease) other comprehensive income by $1.8 million.

Fair Value Measurements

The fair value hierarchy establishes three levels to classify the inputs of valuation techniques used to measure fair value. The three levels of the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Investments in common shares held that have direct listings on an exchange are classified as Level 1.

Level 2: Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liabilities.

Level 3: Prices or valuation techniques that require inputs that are both significant to fair value measurement and unobservable (supported by little or no market activity).

The following table summarizes the Company's financial assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at December 31, 2020 and December 31, 2019. In accordance with IFRS 13, Fair Value Measurements, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	As at December 31, 2020						As at December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Common shares	$	18,190	$	-	$	-	$	7,006	$	-	$	-
Warrants		-		48		-		-		142		-
Convertible debenture		-		-		1,000		-		-		-
Total	$	18,190	$	48	$	1,000	$	7,006	$	142	$	-

28

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

The fair values of the royalty, stream and other interests acquired through issuance of equity instruments were determined by a market approach using unobservable inputs into discounted cash flow projections and comparable transactions. As a result, for the years ending December 31, 2020 and 2019, the acquisition date fair values of royalty and other interests designated as Level 3 fair value measurements were $75.0 million and $74.0 million, respectively.

16. CONTRACTUAL OBLIGATIONS

In connection with its Streams, the Company has committed to purchase the following:

	Percent of life of mine production			Per ounce cash payment: Lesser of amount below and the then prevailing market price (unless otherwise noted)
Gold Stream interests
La Bolsa		5	%	$	450
La Colorada		100	%	$	650
Silver Stream interests
El Mochito		22.5	%(1)		25% of silver spot price
Moss		100	%(2)		20% of silver spot price

⁽¹⁾ If 3.0 million ounces of silver are delivered to Maverix prior to April 1, 2022, Maverix’s silver purchase entitlement will be 20% of life of mine silver production.

⁽²⁾ After 3.5 million ounces of silver are delivered, Maverix’s silver purchase entitlement will be 50% of the remaining life of mine silver production.

In connection with the acquisition of the Silvertip Royalty in 2017, the Company may issue an additional 1,400,000 common shares of the Company when the Silvertip mine achieves commercial production and a cumulative throughput of 400,000 tonnes of ore through the processing plant is achieved.

In connection with the Newmont Portfolio acquisition, the Company has agreed to make certain contingent cash payments if certain production milestones at certain assets are achieved (Note 4a).

17. SUBSEQUENT EVENTS

Hope Bay

In February 2021, Agnico Eagle Mines Limited (“Agnico”) completed the acquisition of TMAC, the previous owner of the Hope Bay mine. Concurrent with the acquisition, Agnico provided notice to the Company and exercised the buyback right with respect to 1.5% of the total 2.5% NSR royalty the Company owned on the Hope Bay mine for $50.0 million. The Company has retained a 1% NSR royalty on the Hope Bay mine that is not subject to any reductions.

Investment Proceeds

In February 2021, Northern Vertex closed its Financing (Note 6) and the Company received $7.7 million in proceeds for the sale of its Northern Vertex common shares.

Royalty Proceeds

In January 2021, the Company received the remaining $2.5 million owed under the Beta Hunt royalty Amendment (Note 4a).

29

Maverix Metals Inc.

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2020 and 2019

(Expressed in thousands of United States dollars, unless stated otherwise)

Exercise of Stock Options

Subsequent to December 31, 2020, a total of 589,351 stock options were exercised with a weighted-average exercise price of CAD$2.32.

Credit Facility Payment

In February 2021, the Company repaid $32.0 million, leaving the full $120.0 million available under the Company’s Credit Facility.

Dividend Declared

In February 2021, the Board of Directors of the Company declared a quarterly dividend of $0.01 per common share payable on March 15, 2021 to shareholders of record as of the close of business on February 26, 2021.

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EX-99.3

Exhibit 99.3

 

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2020

Date of Report: March 22, 2021

This Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the significant factors that have affected the performance of Maverix Metals Inc. and its subsidiaries (collectively “Maverix”, “we”, “us”, “our” or the “Company”) and such factors that may affect its future performance. This MD&A should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2020 and related notes thereto (the “Consolidated Financial Statements”) which have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”).

Readers are cautioned that the MD&A contains forward-looking statements and that actual events may vary from management’s expectations. Readers are encouraged to read the “Forward-Looking Statements” at the end of this MD&A and to consult Maverix’s Consolidated Financial Statements which are available on SEDAR at www.sedar.com and on Form 40-F filed with the United States Securities and Exchange Commission on EDGAR at www.sec.gov.

Effective January 1, 2020, the Company elected to change its presentation currency from the Canadian dollar (“CAD”) to the United States dollar (“USD”). The Company applied the change to USD presentation currency retrospectively and restated the comparative financial information as if the new presentation currency had always been the Company’s presentation currency. All amounts in this MD&A are expressed in USD, unless identified otherwise.

Table of Contents

Description of the Business	3
Highlights and Key Accomplishments for Three Months and Year Ended December 31, 2020	3
COVID-19 Pandemic	5
Outlook for 2021	6
Portfolio of Royalty, Stream and Other Interests Owned by Maverix at December 31, 2020	6
Summary of Annual Results	10
Summary of Quarterly Results	13
Non-IFRS and Other Measures	17
Liquidity and Capital Resources	18
Off-Balance Sheet Arrangements	20
Related Party Transactions	20
Critical Accounting Judgements and Estimates	20
Financial Instruments	20
Outstanding Share Data	21
Risks and Uncertainties	21
Disclosure Controls and Procedures	24
Internal Controls Over Financial Reporting	24
Forward-Looking Statements	25
Technical and Third-Party Information	25

2

Description of the Business

Maverix is a resource-based company that seeks to acquire and manage royalties and metal purchase agreements (a “Stream” or “Streams”) on projects that are in an advanced stage of development or on operating mines producing precious or other metals. Royalty interests (“Royalty” or collectively, “Royalties”) are non-operating interests in mining projects that provide Maverix with the right to a percentage of the gross revenue from the metals produced from the project (a “Gross Revenue Royalty” or “GRR”) or, the net revenue after the deduction of specified costs (a “Net Smelter Returns Royalty” or “NSR” royalty). Under a Stream interest, Maverix makes an upfront payment to acquire the Stream and then receives the right to purchase, at a fixed or variable price per unit based on the spot price of the precious or other metal, a percentage of a mine’s production for the life of mine or a specified time period.

The Company’s business strategy is to acquire existing Royalty and Stream interests, or to finance production, development, or in some circumstances, exploration stage projects in exchange for Royalty or Stream interests. In the ordinary course of business, Maverix engages in a continual review of opportunities to acquire existing Royalty or Stream interests, or to create new Royalties or Streams on operating mines, development projects and exploration projects. The Company currently has over 100 Royalties and Streams, of which 13 of the underlying mines are paying, excluding royalty payments from industrial minerals and power assets.

Highlights and Key Accomplishments for Three Months and Year Ended December 31, 2020

Financial and Operating:

· Record revenue of $16.6 million and $51.7 million for the three months and year ended December 31, 2020;

· Record operating cash flow excluding working capital changes of $11.5¹ million and $36.5¹ million for the three months and year ended December 31, 2020;

· Record operating cash flows of $33.0 million for the year ended December 31, 2020;

· Record Gold Equivalent Ounces (“GEOs”) sold of 8,836¹ and 28,916¹ for the three months and year ended December 31, 2020;

· Cash operating margin of $1,691¹ and $1,613¹ per GEO sold for the three months and year ended December 31, 2020;

· Average cash cost of $184¹ and $174¹ per GEO sold for the three months and year ended December 31, 2020;

· Record net income of $23.7 million, including a one-time gain on an amendment of a royalty interest, for the year ended December 31, 2020; and

· Adjusted net income of $6.3¹ million and $15.6¹ million for the three months and year ended December 31, 2020¹.

TMAC Acquired by Agnico Eagle²

In February 2021, TMAC Resources Inc. (“TMAC”) announced it had concluded the previously announced plan of arrangement pursuant to which Agnico Eagle Mines Limited (“Agnico Eagle”) acquired all the issued and outstanding common shares of TMAC at a price of C$2.20 per share (the “Transaction”). TMAC is the owner of the Hope Bay mine, where the Company previously held a 2.5% NSR royalty interest.

TMAC had the right to buy back 1.5% of the NSR royalty interest held by the Company for a cash payment of $50.0 million in the event of a change in control transaction of TMAC (as defined in the royalty agreement) that was announced prior to June 30, 2021 (the “Hope Bay Buyback”). Concurrent with the closing of the Transaction, Agnico notified the Company that it would exercise the Hope Bay Buyback. The Company has received the $50.0 million payment and retained a 1% NSR royalty interest on the Hope Bay mine that is not subject to any reductions.

Acquisition of Royalty Portfolio from Newmont

In October 2020, the Company completed the acquisition of a portfolio of 11 gold royalties (the “Royalty Portfolio”) from Newmont Corporation (“Newmont”) for upfront consideration of $75.0 million and contingent payments of up to $15.0 million (the “Acquisition”).

¹ Refer to section on non-IFRS and other measures of this MD&A.

² Refer to TMAC’s news release dated February 2, 2021 on www.sedar.com, under TMAC’s SEDAR profile.

3

Acquisition highlights include:

· Addition of High Quality Gold Royalties Based in the Americas: The Royalty Portfolio consists of gold assets located in Mexico, USA, Canada and Guatemala, ranging from in construction to exploration stage;

· Growth Pipeline Enhanced with Near Term Cash Flow and Accretive to Net Asset Value per Share: Production at the Camino Rojo project, located in Zacatecas, Mexico, is expected to commence late in 2021 and Bluestone Resources Inc. (“Bluestone”) continues to advance engineering and optimization work at the Cerro Blanco project, located in Jutiapa, Guatemala;

· Focused Counterparties Well Positioned to Advance Projects: The operations underlying the Royalty Portfolio include flagship assets for each of Orla Mining Ltd. (“Orla”), Bluestone, Corvus Gold Inc., and KORE Mining Ltd.; and

· Newmont Relationship Strengthened: Newmont increased its ownership in Maverix to 30% of the outstanding common shares of the Company, re-affirming its endorsement of Maverix by taking additional equity.

Royalty Portfolio:

Asset	Operator	Location	Stage	Royalty
Camino Rojo (1)	Orla Mining Ltd.	Zacatecas, Mexico	Construction	2.0% NSR
Cerro Blanco	Bluestone Resources Inc.	Jutiapa, Guatemala	Development	1.0% NSR
Mother Lode	Corvus Gold Inc.	Nevada, USA	Development	1.0% – 2.0% NSR
Imperial	KORE Mining Ltd.	California, USA	Development	1.0% NSR
Ana Paula (1)	Argonaut Gold Inc.	Guerrero, Mexico	Development	2.0% NSR
Trenton Canyon	SSR Mining Inc.	Nevada, USA	Exploration	0.5% NSR
Buffalo Valley	SSR Mining Inc.	Nevada, USA	Exploration	0.5% NSR
Cristina (1)	Criscora, S.A. de C.V.	Chihuahua, Mexico	Exploration	2.0% NSR
Algoma-Talisman	Red Pine Exploration Inc.	Ontario, Canada	Exploration	2.0% NSR
Sprogge	Seabridge Gold Inc.	Yukon, Canada	Exploration	0.63% NSR
Yecora (1)	Cirscora, S.A. de C.V.	Sonora, Mexico	Exploration	1.0% NSR

⁽¹⁾ Transfer was subject to the authorization of the Federal Economic Competition Commission in Mexico (Comisión Federal de Competencia Económica), which was subsequently received on March 18, 2021, and such transfers are pending as of the date of this MD&A.

Maverix issued to Newmont a total of 12,000,000 common shares of the Company and paid $15.0 million in cash upon closing the Acquisition. In addition, Maverix has agreed to make contingent cash payments of up to $15.0 million if certain production milestones at certain underlying assets are achieved within five years of closing the Acquisition.

Certain of the royalties that were due to be transferred were subject to certain restrictions on transfer, including a right of first refusal (“ROFR”) that permitted the underlying property owner the right to repurchase the specific royalty for cash consideration and, in the case of royalties on projects located in Mexico, the authorization of the Federal Economic Competition Commission in Mexico (Comisión Federal de Competencia Económica). The Company has committed to dispose the 1.0% NSR royalty on the Yecora project for cash consideration of $1.5 million.

4

Amendment of Beta Hunt Royalty Interests

In September 2020, the Company and Karora Resources Inc. (“Karora”) announced the closing of the agreement to reduce the gold royalties at Karora’s Beta Hunt mine from 7.5% to 4.75%, effective July 1, 2020, in exchange for total cash consideration of $18.0 million (the “Beta Hunt Royalty Amendment”). The total consideration of $18.0 million included $13.0 million for the reduction of the Company’s royalty interest in the Beta Hunt mine and a $5.0 million one-time bonus royalty payable in two equal instalments of $2.5 million. The Beta Hunt Royalty Amendment will allow both the Company and Karora shareholders to benefit from a renewed focus on exploration, development and potential future production growth at the Beta Hunt mine. Upon closing, the Company received $15.5 million. The remaining $2.5 million was received in January 2021.

Secondary Offering and Exercise of Warrants by Pan American

In May 2020, the Company and Pan American Silver Corp. (“Pan American”) announced they entered into an agreement with a syndicate of underwriters, pursuant to which Pan American undertook an overnight marketed public offering of 9,000,000 common shares of the Company held by Pan American (the “Secondary Offering”). In addition, Pan American granted the underwriters an over-allotment option to purchase up to an additional 1,350,000 common shares of the Company held by Pan American on the same terms and conditions as the Secondary Offering. Concurrently, Pan American also notified the Company of its intention to exercise 8,250,000 common share purchase warrants upon closing of the Secondary Offering.

In June 2020, the Company and Pan American announced the closing of the Secondary Offering, including the exercise in full of the over-allotment option. Concurrent with the closing of the Secondary Offering, Pan American exercised 8,250,000 warrants of the Company and the Company received $15.6 million in gross proceeds.

Quarterly Dividends Declared

On February 18, 2021, the Board of Directors of the Company declared a quarterly dividend of $0.01 per common share payable on March 15, 2021 to shareholders of record as of the close of business on February 26, 2021.

COVID-19 Pandemic

The Company continues to monitor and assess potential impacts of the novel coronavirus, also known as COVID-19, on its employees and business. In response to the COVID-19 pandemic, the Company closed its office, implemented a travel ban, and directed all of its employees to work remotely. No employees have contracted COVID-19 as of the date of this report.

Though the current COVID-19 global health pandemic is significantly impacting the global economy commodity, and financial markets, as at the date of this MD&A, Maverix is only aware of two operations in which it has a Royalty or Stream interest that were temporarily suspended during 2020, being the La Colorada and San Jose mines. Both mines have since resumed operations.

There are a number of potential impacts that could restrict our operating partners’ ability to operate as a result of the COVID-19 pandemic. Mining operations in which Maverix holds a Royalty or Stream interest could be suspended for precautionary purposes or as governments declare states of emergency or take other actions in an effort to combat the spread of COVID-19. Refer to the “Risks and Uncertainties” section of this MD&A.

5

Outlook for 2021¹

In 2021, Maverix expects 27,000 to 30,000 attributable GEOs² at approximately a 90% cash margin² with approximately 99% of expected revenue derived from gold and silver.

Portfolio of Royalty, Stream and Other Interests Owned by Maverix at December 31, 2020

As at December 31, 2020, the Company owned over 100 Royalties, Streams and other interests. Maverix has thirteen Royalties and Streams that are currently paying, including three in Australia, three in the United States, two in Mexico, two in Canada, and one in each Honduras, Burkina Faso and Russia. In addition, the Company owns a number of Royalties and Streams on development and exploration/evaluation stage projects in North America, South America, and Australia, amongst others. The Company uses “evaluation stage” to describe exploration stage properties that contain mineralized material and on which operators are engaged in the search for reserves. We do not conduct mining operations on the properties in which we hold Royalty and Stream interests, and we are not required to contribute to capital costs, exploration costs, environmental costs or other operating costs on those properties.

Primary Properties:

The following table summarizes Maverix’s principal Stream interests:

Asset	Location	Operator	Status	MMX Attributable Production	MMX Purchase Price
El Mochito	Honduras	Kirungu Corporation	Paying	22.5% of silver(1)	25% of silver spot price
La Colorada	Mexico	Pan American Silver Corp.	Paying	100% of gold	Lesser of (i) US$650 per ounce and (ii) spot price
Moss	USA	Northern Vertex Mining Corp.	Paying	100% of silver(2)	20% of silver spot price

⁽¹⁾ If 3.0 million ounces of silver are delivered to Maverix prior to April 1, 2022, Maverix’s silver purchase entitlement will be 20% of life of mine silver production.

⁽²⁾ After 3.5 million ounces of silver are delivered, Maverix’s silver purchase entitlement will be 50% of the remaining life of mine silver production.

¹ Statements made in this section contain forward-looking information. Reference should be made to the “Cautionary Statement on Forward Looking Information” section at the end of this MD&A. For a description of material factors that could cause our actual results to differ materially from the forward-looking statements, please see the “Risk Factors” section in the most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedar.com.

² Refer to section on non-IFRS and other measures of this MD&A.

6

The following table summarizes Maverix’s principal Royalty interests:

Asset	Location	Operator	Status	Royalty Interest
Beta Hunt	Australia	Karora Resources Inc.	Paying	3.25% GRR, and 1.5% NSR Royalties on all Gold production; and 1.5% total NSR Royalties on all Nickel production
Camino Rojo	Mexico	Orla Mining Ltd.	Development	2.0% NSR Royalty (1)
Cerro Blanco	Guatemala	Bluestone Resources Inc.	Development	1.0 NSR Royalty
Cerro Casale	Chile	Barrick Gold Corporation and Newmont Corporation	Development	1.25% GRR on 25% of Revenues(2)
Converse	USA	Waterton Global Resource Management	Development	5.0% NSR Royalty(3)
DeLamar (DeLamar)	USA	Integra Resources Corp.	Development	2.5% NSR Royalty(4)
Florida Canyon	USA	Argonaut Gold Inc.	Paying	3.0% NSR Royalty
Goldfield (Gemfield)	USA	Waterton Global Resource Management	Development	5.0% NSR Royalty on the Gemfield deposit
Hasbrouck-Three Hills	USA	West Vault Mining Inc.	Development	1.25% NSR Royalty
Hope Bay	Canada	Agnico Eagle Mines Limited	Paying	1.0%(5) NSR Royalty
Karma	Burkina Faso	Endeavour Mining Corporation	Paying	2.0% NSR Royalty on 85.5% of total production
Kensington	USA	Coeur Mining, Inc.	Operating	2.5% NSR(6)
McCoy-Cove	USA	Premier Gold Mines Ltd.	Development	3.5% NSR Royalty(7)
Monument Bay	Canada	Yamana Gold Inc.	Advanced Exploration	1.5% NSR Royalty
Moose River (Touquoy)	Canada	St Barbara Limited	Paying	1.0% NSR Royalty on the Touquoy deposit
Morondo	Cote d’Ivoire	Montage Gold Corp.	Exploration	2.0% NSR Royalty
Mt Carlton	Australia	Evolution Mining Ltd.	Paying	2.5% NSR Royalty
Omolon	Russia	Polymetal International plc	Paying	2.0% GRR Royalty(3)
Railroad	USA	Gold Standard Ventures Corp.	Development	2.0% NSR Royalty(3)
Relief Canyon	USA	Americas Gold and Silver Corp.	Operating	2.0% NSR Royalty(3)
San Jose (Taviche Oeste)	Mexico	Fortuna Silver Mines Inc.	Paying	1.5% NSR Royalty on production from the Taviche Oeste concessions
Silvertip	Canada	Coeur Mining, Inc.	Suspended	2.5% NSR Royalty
Vivien	Australia	Ramelius Resources Ltd.	Paying	3.5% GRR

⁽¹⁾ Royalty is on oxide and transitional ore only.

⁽²⁾ Royalty commences after US$10M payable under the agreement.

⁽³⁾ Royalty covers a portion of the existing mineral resource.

⁽⁴⁾ NSR royalty covers a portion of the existing resource and decreases to a 1.0% NSR Royalty after CAD$10 million in royalties have been paid.

⁽⁵⁾ Agnico exercised the Hope Bay Buyback subsequent to December 31, 2020.

⁽⁶⁾ NSR royalty not payable until after a recoupment period.

⁽⁷⁾ 2.0% of the NSR royalty only covers a portion of the deposit.

Significant Portfolio Updates - Paying and Operating Assets:

Hope Bay

Agnico announced that it plans to continue mining at the Doris deposit in 2021 with quarterly production expected to be approximately 18,000 to 20,000 ounces of gold. Agnico plans to ramp up a property wide exploration program in 2021 with 39,800 metres of drilling planned for exploration targets around the Doris, Madrid and Boston deposits and other targets along the 80 kilometre long greenstone belt. Agnico has disclosed that it believes that Hope Bay has the potential to be a 250,000 to 300,000 ounce per year operation and that it will continue to evaluate optimal mining and milling strategies for future production.

For more information, please refer to agnicoeagle.com and see the news release dated February 11, 2021.

7

Beta Hunt

Karora Resources Inc. (“Karora”) announced an updated mineral resource and reserve estimate for Beta Hunt. Gold reserves increased by 176,000 ounces and measured and indicated resources increased by 111,000 ounces, increases of 57% and 12%, respectively, over the November 2019 estimates. Karora continues to aggressively explore Beta Hunt and in 2020 was focused on infill and extensional drilling of the A Zone and Western Flanks. The updated mineral resource does not include the recently discovered high grade Larkin Zone discovered south of the Alpha Isla Fault, which requires further drilling and is expected to be included in the 2021 update. Karora also announced an updated nickel measured and indicated resource at Beta Hunt, the first since 2016, of 16,100 tonnes of nickel at a grade of 2.9%.

For more information, please refer to www.karoraresources.com and see the news release dated December 16, 2020.

Moss

Northern Vertex Mining Corp. (“Northern Vertex”) completed a business combination with Eclipse Gold Mining Corp. and a concurrent C$20 million equity financing (the “Financing”). As part of the Financing, the Company agreed to exercise 19.5 million share purchase warrants at C$0.40 per common share of Northern Vertex and sell the underlying common shares received in the Financing for C$0.50 per common share. The Financing closed on January 14, 2021 and the business combination closed on February 16, 2021, upon which the Company received $7.7 million in proceeds for the sale of the Northern Vertex common shares. Northern Vertex is currently undertaking a 13,700 metre Phase II infill drilling and resource expansion program at the Moss mine and an updated mineral resource estimate is expected in 2021. A key priority is delineating the East/West strike length of the Ruth Vein, which is located adjacent to the Moss open pit, and has been mapped for over 2 kilometres on surface.

For more information, please refer to www.northernvertex.com and see the news releases dated February 16, 2021, January 14, 2021, and November 3, 2020.

Florida Canyon

Argonaut Gold Inc. (“Argonaut Gold”) announced it completed the business combination with Alio Gold Inc., the owner of the Florida Canyon mine where the Company holds a 3% NSR Royalty. On July 3, 2020, Argonaut Gold announced the results of an updated life of mine plan for the Florida Canyon mine, which included average production of 77,000 gold ounces over 9.5 years.

For more information, please refer to www.argonautgold.com and see the news releases dated July 1, 2020 and July 3, 2020.

Relief Canyon

Americas Gold and Silver Corporation announced that commercial production was achieved at its Relief Canyon mine in Nevada, USA, and that full ramp up of the operation is targeted for mid-May 2021.

For more information, please refer to www.americas-gold.com and see the news release dated January 11, 2021.

Significant Portfolio Updates - Development and Exploration Assets:

Camino Rojo

Orla announced the results of an updated feasibility study for the Camino Rojo oxide gold project after the recently completed layback agreement with Fresnillo plc. The updated feasibility study highlights a 54% increase in contained gold mineral reserves and an updated mine life of over 10 years with an average gold production rate of 94,000 ounces per annum. The mine is currently in construction with first production planned for late 2021.

For more information, please refer to www.orlamining.com and see the news release dated January 11, 2021.

8

Cerro Blanco

Bluestone announced the findings of a preliminary economic assessment (“PEA”) that highlights an optimized project which doubles the gold resource ounces and production profile. The recent completion of advanced engineering and optimization work has significantly enhanced the understanding of the project and presented an opportunity to capitalize on its near-surface, high-grade mineralization through an open pit scenario. The PEA highlights an initial 11 year life of mine with production of approximately 2.4 million ounces of gold and 10.2 million ounces of silver and measured and indicated resources of 3.0 million ounces of gold and 13.2 million ounces of silver (61.5 million tonnes at 1.5 grams per tonne gold and 6.7 grams per tonne silver).

For more information, please refer to www.bluestoneresources.ca and see the news release dated February 28, 2021.

Silvertip

Coeur Mining, Inc. (“Coeur”) significantly increased the size of its resource base at Silvertip following the execution of the largest and most successful exploration program in the history of the property. Silver, zinc and lead measured and indicated resources increased by approximately 50%, 45% and 50%, respectively. Similarly, silver, zinc and lead inferred resources grew by approximately 46%, 69% and 37%, respectively.

Coeur highlighted key outcomes of the internal pre-feasibility study for Silvertip during its virtual investor day in December 2020. Notably, the Company developed a new flowsheet that would help support a potential expansion to a throughput rate of 1,750 tonnes per day. Coeur is now progressing the project through a more comprehensive front-end engineering and design phase for the revised flowsheet, while also continuing to build on the momentum of its exploration program. Coeur also plans to continue evaluating opportunities to accelerate certain non-mill related capital projects in 2021, including a new water treatment plant, to help mitigate construction risk should a restart of the project be approved during the second half of the year.

For more information, please refer to www.coeur.com and see the news release dated February 17, 2021.

Hasbrouck-Three Hills

West Vault Mining Inc. (“West Vault”) announced receipt from the Bureau of Land Management of a Decision Record and Finding of No Significant Impact for the Hasbrouck mine, signifying the completion of federal permitting, and the final major permitting step to allow construction. The Hasbrouck mine is planned as phase two of the Hasbrouck gold project, with phase 1 being the fully permitted Three Hills mine. The Hasbrouck gold project is one of only a few shovel-ready gold projects in the southwest United States.

For more information, please refer to www.westvaultmining.com and see the news release dated November 5, 2020.

McCoy-Cove

Premier Gold Mines Limited (“Premier”) announced that they have entered into a definitive agreement whereby Equinox Gold Corp. will acquire all outstanding shares of Premier. Concurrently, Premier will spin-out to its shareholders shares of a newly created US-focused gold production and development company called i-80 Gold Corp. (“i-80”), which will include the McCoy-Cove project in Nevada, USA as a core asset. On January 18, 2021, Premier announced an updated PEA for McCoy-Cove which outlined an 8-year mine life producing an average of 102,000 ounces of gold per annum. The PEA assumes mining of mineral resources in the Helen and Gap deposits only and potential exists to increase mineral resources as both the deposits remain open for expansion. The focus for the remainder of 2021 and 2022 includes laboratory and economic evaluations of alternative processing methods, optimizing the mine plan with the hydrological model, completion of baseline studies needed to commence an Environment Impact Statement, and beginning development of an exploration decline to support underground diamond drilling to upgrade and increase mineral resources. Completion of these activities and a feasibility study is expected to occur in 2023 to 2024. On March 18, 2021, Premier announced that i-80 completed a private placement offering for gross proceeds of approximately C$80.4 million. The proceeds from the offering are expected to be used by i-80 for working capital and general corporate purposes, to pay for exploration and development expenses related to i-80's mining projects, and to fund the cash portion of the purchase price for the acquisition of the Getchell project in Nevada from affiliates of Waterton Global Resource Management, Inc.

For more information, please refer to Premier’s news releases dated December 16, 2020, January 18, 2021 and March 18, 2021 on www.sedar.com, under Premier’s SEDAR profile.

9

Morondo

Montage Gold Corp. (“Montage”) announced an updated mineral resource at its Morondo gold project in Cote d’Ivoire. The inferred mineral resource at the Kone deposit was increased significantly to 123 million tonnes grading 0.80 gram per tonne at a 0.40 gram per tonne cut-off grade. A 35,000 metre drill program is currently underway targeting further growth in resources and infill drilling. Montage expects to release a preliminary economic assessment in April 2021 and a feasibility study before the end of 2021.

For more information, please refer to www.montagegoldcorp.com and see the news release dated January 28, 2021.

Summary of Annual Results

Year Ended (in thousands, except for GEO and per share amounts)	December 31, 2020		December 31, 2019			December 31, 2018
Statement of Income (Loss) and Comprehensive Income (Loss)
Royalty revenue	$	32,689	$	21,797		$	21,117
Sales		18,992		11,915			5,163
Total revenue		51,681		33,712			26,280
Cash flow from operating activities		33,000		20,961			17,063
Net income (loss)		23,719		(7,667	)		2,092
Basic earnings (loss) per share		0.19		(0.07	)		0.02
Diluted earnings (loss) per share		0.17		(0.07	)		0.02
Dividends declared per share	$	0.04	$	0.01		$	0.00
Non-IFRS and Other Measures1
Adjusted net income	$	15,624	$	6,958		$	2,674
Adjusted basic earnings per share	$	0.12	$	0.06		$	0.03
Total GEOs sold		28,916		24,021			20,886
Average realized gold price per GEO	$	1,787	$	1,403		$	1,258
Average cash cost per GEO		174		163			125
Cash flow from operating activities, excluding changes in non-cash working capital	$	36,527	$	23,468		$	18,405
Statement of Financial Position
Total assets	$	379,607	$	315,135		$	215,205
Total non-current liabilities	$	32,000	$	69,000		$	12,300

Year Ended December 31, 2020 Compared to the Year Ended December 31, 2019

For the year ended December 31, 2020, net income and cash flow from operations were $23.7 million and $33.0 million, respectively, compared with a net loss and cash flow from operations of $7.7 million and $21.0 million, respectively, for the year ended December 31, 2019. The change is attributable to a combination of factors including:

· In September 2020, the company completed the Beta Hunt Royalty Amendment. As a result, the Company recognized a gain on the amendment of its Beta Hunt royalty interest of $9.3 million, current income tax expense of $4.3 million, income taxes paid of $1.5 million and an increase in working capital from the receipt of $2.5 million of the $5.0 million one-time bonus royalty. Further, Karora discovered the Father’s Day Vein, a high-grade gold discovery area at the Beta Hunt mine in September 2018 and subsequently announced the temporary six-month suspension of bulk mining production, which resulted in lower royalty revenue and cash flows for the year ended December 31, 2019;

· Production at the Moss mine has continued to ramp up, resulting in an increase in both sales and cash flows of $5.9 million and $4.7 million, respectively;

· In August 2019, the Company purchased the 1.5% NSR Royalty and 0.25% NSR Royalty (collectively the “Additional Hope Bay Royalties”) in addition to the Company’s existing 1.0% NSR Royalty on the Hope Bay mine. The acquisition of the Additional Hope Bay Royalties contributed to the increase in both royalty revenue and cash flows of $2.2 million and $1.2 million, respectively;

¹ Refer to section on non-IFRS and other measures of this MD&A.

10

· In December 2019, the Company acquired a paying royalty on the Omolon mine which provided an increase in both royalty revenue and cash flows of $4.2 million and $3.2 million, respectively;

· A 27% increase in the average realized gold price per GEO;

· Net income increased by $1.9 million due to the revaluation of warrants held by the Company recorded in other income; and

· Net income and cash flows were increased by $0.7 million and $0.5 million, respectively, due to the appreciation of the Australian dollar against the US dollar during 2020.

Partially offset by:

· Decrease in royalty revenue of $0.5 million and cash flow of $1.1 million from the Mt Carlton mine as a consequence of the ore body becoming narrower and more irregular than it had previously been;

· Decrease in both sales and cash flow of $0.9 million and $0.7 million from Silvertip as mining and processing activities were suspended in early 2020 due to deteriorating zinc and lead market conditions;

· Both net income and cash flow from operations were reduced by $1.1 million from the cost of acquiring more gold and silver under the Company’s Stream agreements with respect to increased sales;

· Net income decreased by $4.8 million due to the increase in depletion charges associated with the increase in total revenue and GEOs sold during the year;

· Both net income and cash flow from operations were reduced by an increase in cash administration and project evaluation expenses of $1.5 million due to the increase in activities required to acquire and then manage the Company’s growing portfolio of assets;

· During the year ended December 31, 2019, net income was decreased by the recognition of a non-cash impairment of $14.2 million on our Amulsar royalty interest; and

· Net income was reduced by an increase in finance expense of $0.6 million due to additional amounts drawn on the Company’s credit facility during late 2019 and 2020, and partially repaid during 2020.

For the year ended December 31, 2020, total revenue was $51.7 million and GEOs were 28,916¹ compared with total revenue of $33.7 million and GEOs of 24,021¹ for the year ended December 31, 2019.

¹ Refer to section on non-IFRS and other measures of this MD&A.

11

The following table summarizes the Company’s total revenues and GEOs for the year ended December 31, 2020 and 2019:

		Year Ended December 31, 2020						Year Ended December 31, 2019
(in thousands, except for GEO amounts)	Primary Product	Royalty Revenue ($)		Sales ($)		GEOs1		Royalty Revenue ($)		Sales ($)		GEOs1
Beta Hunt	Gold		8,635		-		4,871		4,786		-		3,353
El Mochito	Silver		-		3,716		2,012		-		3,626		2,579
Florida Canyon	Gold		2,551		-		1,433		2,101		-		1,492
Hope Bay	Gold		5,355		-		3,027		3,124		-		2,208
Karma	Gold		2,946		-		1,666		2,305		-		1,647
La Colorada	Gold		-		6,347		3,608		-		5,216		3,758
Moose River	Gold		1,586		-		905		1,124		-		807
Moss	Silver		-		8,929		4,954		-		3,073		2,152
Mt Carlton	Gold		2,469		-		1,388		2,941		-		2,137
Omolon	Gold		4,792				2,598		562		-		381
San Jose	Silver		1,989		-		1,118		1,471		-		1,061
Silvertip	Silver		-		-		-		941		-		684
Vivien	Gold		1,839		-		1,032		2,070		-		1,497
Other	Various		527		-		304		372		-		265
Consolidated total			32,689		18,992		28,916		21,797		11,915		24,021

2020 Royalty Revenue and Sales by Region	2019 Royalty Revenue and Sales by Region
2020 GEOs by Product	2019 GEOs by Product

¹ Refer to section on non-IFRS and other measures of this MD&A.

12

Summary of Quarterly Results

Quarter Ended (in thousands of USD, except for GEO and per share amounts)	December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
Statement of Income and Comprehensive Income
Royalty revenue	$	10,140	$	8,689	$	7,784	$	6,076
Sales		6,429		6,162		3,187		3,214
Total revenue		16,569		14,851		10,971		9,290
Cash flow from operating activities		7,746		13,792		6,616		4,846
Net income		5,346		14,437		3,076		860
Basic earnings per share		0.04		0.11		0.03		0.01
Diluted earnings per share		0.04		0.11		0.02		0.01
Dividends declared per share	$	0.01	$	0.01	$	0.01	$	0.01
Non-IFRS and Other Measures1
Adjusted net income	$	6,282	$	5,336	$	3,010	$	996
Adjusted basic earnings per share	$	0.05	$	0.04	$	0.02	$	0.01
Total GEOs sold		8,836		7,797		6,412		5,871
Average realized gold price per GEO	$	1,875	$	1,905	$	1,711	$	1,582
Average cash cost per GEO		184		195		139		167
Cash flow from operating activities, excluding changes in non-cash working capital	$	11,474	$	10,841	$	8,479	$	5,733
Statement of Financial Position
Total assets	$	379,607	$	325,396	$	340,190	$	307,420
Total non-current liabilities	$	32,000	$	35,000	$	76,000	$	66,000

Quarter Ended (in thousands of USD, except for GEO and per share amounts)	December 31, 2019			September 30, 2019		June 30, 2019		March 31, 2019
Statement of (Loss) Income and (Loss) Comprehensive Income
Royalty revenue	$	6,741		$	6,469	$	4,418	$	4,169
Sales		3,758			4,085		2,573		1,499
Total revenue		10,499			10,554		6,991		5,668
Cash flow from operating activities		7,456			6,034		5,343		2,128
Net (loss) income		(11,237	)		1,803		610		1,158
Basic (loss) earnings per share		(0.10	)		0.02		0.01		0.01
Diluted (loss) earnings per share		(0.10	)		0.02		0.01		0.01
Dividends declared per share	$	0.01		$	0.00	$	0.00	$	0.00
Non-IFRS and Other Measures1
Adjusted net income	$	3,008		$	1,797	$	831	$	1,323
Adjusted basic earnings per share	$	0.03		$	0.02	$	0.01	$	0.01
Total GEOs sold		7,096			7,208		5,359		4,358
Average realized gold price per GEO	$	1,480		$	1,464	$	1,305	$	1,301
Average cash cost per GEO		171			169		156		152
Cash flow from operating activities, excluding changes in non-cash working capital	$	7,869		$	7,655	$	4,050	$	3,894
Statement of Financial Position
Total assets	$	315,135		$	257,736	$	217,064	$	220,512
Total non-current liabilities	$	69,000		$	51,000	$	12,500	$	16,800

¹ Refer to section on non-IFRS and other measures of this MD&A.

13

Changes in sales, net income and cash flow from operating activities from quarter to quarter are affected primarily by fluctuations in production at the underlying mines, the timing of shipments, changes in the price of commodities, as well as acquisitions of Royalties and Streams and the commencement of operations of mines under construction. For more information, refer to the quarterly commentary below.

Three Months Ended December 31, 2020 Compared to the Three Months Ended December 31, 2019

For the three months ended December 31, 2020, the Company had net income of $5.3 million and cash flow from operations of $7.7 million compared with net loss and cash flow from operations of $11.2 million and $7.5 million for the three months ended December 31, 2019. The increase in net income and cash flow were attributable to a combination of factors including:

· Production at the Moss mine has continued to ramp up, resulting in an increase in both sales and cash flows of $2.1 million and $1.7 million, respectively;

· An increase in both royalty revenue and cash flow of $1.6 million and $2.4 million due to a full quarter of royalty revenue from the Omolon mine which was acquired in December 2019;

· An increase in royalty revenue of $0.6 million from each of the Hope Bay and El Mochito mines due to increased attributable production; and

· A 27% increase in the average realized gold price per GEO.

Partially offset by:

· Decrease in both sales and cash flow of $0.2 million and $0.2 million from Silvertip as mining and processing activities were suspended in early 2020 due to deteriorating zinc and lead market conditions;

· Both net income and cash flow from operations were reduced by $0.4 million from the cost of acquiring more gold and silver under the Company’s Stream agreements with respect to increased sales;

· Net income decreased by $2.6 million due to the increase in depletion charges associated with the increase in total revenue for the period;

· Both net income and cash flow from operations were reduced by an increase in cash administration and project evaluation expenses of $0.5 million due to the increase in activities required to acquire and then manage the Company’s growing portfolio of assets;

· Cash flow from operations was reduced by a one-time income tax payment of $1.5 million for the Beta Hunt Royalty Amendment;

· During the three months ended December 31, 2019, net income was decreased by the recognition of a non-cash impairment of $14.2 million on our Amulsar royalty; and

· Net income decreased by $0.9 million due to the revaluation of warrants held by the Company recorded in other income.

For the three months ended December 31, 2020, the Company had record quarterly revenue of $16.6 million and record quarterly GEOs of 8,836¹ compared with total revenue of $10.5 million and GEOs of 7,096¹ for the three months ended December 31, 2019.

14

The following table summarizes the Company’s total revenues and GEOs for the three months ended December 31, 2020 and 2019:

		Three months ended December 31, 2020						Three months ended December 31, 2019
(in thousands of USD, except for GEO amounts)	Primary Product	Royalty Revenue ($)		Sales ($)		GEOs1		Royalty Revenue ($)		Sales ($)		GEOs1
Beta Hunt	Gold		2,479		-		1,323		1,856		-		1,255
El Mochito	Silver		-		1,543		824		-		936		632
Florida Canyon	Gold		762		-		406		976		-		660
Hope Bay	Gold		1,376		-		734		816		-		551
Karma	Gold		852		-		455		732		-		495
La Colorada	Gold		-		1,710		905		-		1,741		1,178
Moose River	Gold		422		-		225		277		-		187
Moss	Silver		-		3,176		1,694		-		1,081		731
Mt Carlton	Gold		721		-		385		406		-		273
Omolon	Gold		2,185		-		1,166		562		-		381
San Jose	Silver		638		-		341		357		-		241
Silvertip	Silver		-		-		-		180		-		121
Vivien	Gold		609		-		325		401		-		270
Other	Various		96		-		53		178		-		121
Consolidated total			10,140		6,429		8,836		6,741		3,758		7,096

Q4 2020 Royalty Revenue and Sales by Region	Q4 2019 Royalty Revenue and Sales by Region
Q4 2020 GEOs by Product	Q4 2019 GEOs by Product

¹ Refer to section on non-IFRS and other measures of this MD&A.

15

For the Three Months Ended December 31, 2020 Compared to Other Quarters Presented

When comparing net income of $5.3 million and cash flow from operations of $7.7 million for the three months ended December 31, 2020 with net income (loss) and operating cash flows for other quarters presented in the table of Summary of Quarterly Results above, the following items impact comparability of the analysis:

· In September 2020, the company completed the Beta Hunt Royalty Amendment. As a result, the Company recognized a gain on the amendment of its Beta Hunt royalty interest of $9.3 million and current income tax expense and taxes paid of $4.3 million. Further, Karora discovered the Father’s Day Vein in 2018, resulting in the Company recognizing royalty revenue of $2.4 million and $2.1 million for the three months ended September 30, 2018 and December 31, 2018, respectively. Subsequent to the discovery of the Father’s Day Vein, Karora announced the temporary suspension of bulk mining to focus on exploration and delineation drilling and has now ramped up production at the mine;

· The Company recognized an increase in net income of $2.9 million due to revaluation of warrants held during the three months ended September 30, 2020;

· The Company recognized a non-cash impairment of $14.2 million on its Amulsar royalty interest during the three months ended December 31, 2019;

· The Company acquired silver streams on the Moss mine in December 2018 and the El Mochito mine in March 2019, the additional 1.5% NSR royalty on Hope Bay in August 2019 and the Kinross royalty portfolio in December 2019, all of which contributed full quarters of royalty or stream income subsequent to their acquisitions;

· A number of underlying mines on which the Company has a Royalty or Stream interest have continued to ramp up or began production over the past years, including the Florida Canyon mine, the Moss mine, and the El Mochito mine; and

· Net income being reduced by $0.3 million related to the initial listing costs for the NYSE American and TSX during the three months ended June 30, 2019.

Change in Total Assets

Total assets increased by $54.2 million from September 30, 2020 to December 31, 2020 primarily resulting from the acquisition of the Royalty Portfolio from Newmont, which was financed by the issuance of common shares of the Company and a cash payment of $15.0 million. The net increase in total assets from the acquisition of the Royalty Portfolio was partially offset by the cash consideration paid of $15.0 million, a $3.0 million repayment under the Company’s credit facility and depletion of the Company’s royalty, stream and other interests.

Total assets decreased by $14.8 million from June 30, 2020 to September 30, 2020 primarily resulting from the repayment of $41.0 million under the Company’s credit facility, depletion of the Company’s royalty, stream and other interests and amendment of the Company’s royalty interest in the Beta Hunt mine. The decrease in total assets was partially offset by funds received on closing of the Beta Hunt Royalty Amendment and increase in the carrying value of investments due to fair value adjustments.

Total assets increased by $32.8 million from March 31, 2020 to June 30, 2020 primarily resulting from an increase in cash on hand from $15.6 million in gross proceeds received from the warrant exercise, the drawdown of an additional $10.0 million under the credit facility and the results of operations for the quarter. The net increase in total assets was partially offset by depletion of the Company’s royalty, stream and other interests.

Total assets decreased by $7.7 million from December 31, 2019 to March 31, 2020 primarily resulting from the partial repayment of outstanding amounts under the credit facility using right of first refusal proceeds which were receivable at December 31, 2019, a decrease in carrying value of investments due to disposal and fair value adjustments and depletion of the Company’s royalty, stream and other interests. The net decrease in total assets was partially offset by an increase in cash on hand from drawing down $10.0 million under the credit facility.

16

Total assets increased by $57.4 million from September 30, 2019 to December 31, 2019 primarily resulting from the acquisition of the Kinross Portfolio, which was financed by the issuance of common shares of the Company, cash flow from operations and drawdown of an additional $18.0 million from the credit facility. The net increase in total assets from the acquisition of the Kinross royalty portfolio was partially offset by impairment of the Company’s royalty interest on the Amulsar mine and depletion of the Company’s royalty, stream and other interests.

Total assets increased by $40.7 million from June 30, 2019 to September 30, 2019 primarily resulting from the acquisition of the additional 1.5% NSR royalty on the Hope Bay mine and the acquisition of common shares in conjunction with the royalty acquisition.

Total assets decreased by $3.4 million from March 31, 2019 to June 30, 2019 primarily resulting from the partial repayment of outstanding amounts under the credit facility using operating cash flow and depletion of the Company’s royalty, stream and other interests.

Non-IFRS and Other Measures

The Company has included, throughout this document, certain performance measures, including (i) adjusted net income and adjusted basic earnings per share, (ii) Average realized gold price per GEO, (iii) Average cash cost per GEO, (iv) cash operating margin, and (v) operating cash flows excluding changes in non-cash working capital. The presentation of these non-IFRS and other measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS and other measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently.

i. Adjusted net income and adjusted basic earnings per share are calculated by excluding the effects of other income/expenses, impairment charges, gains/(losses) on sale or amendment of royalty and streams and unusual non-recurring items. The Company believes that in addition to measures prepared in accordance with IFRS, certain investors use this information to evaluate the results of the underlying business of the Company. Management believes that this is a useful measure of the Company’s performance because it adjusts for items which may not relate to or have a disproportionate effect on the period in which they are recognized, impact the comparability of our core operating results from period to period, are not always reflective of the underlying operating performance of our business and/or are not necessarily indicative of future operating results.

The table below provides a reconciliation of the adjusted net income and adjusted earnings per share:

	Three months ended December 31, 2020		Three months ended December 31, 2019			Year ended December 31, 2020			Year ended December 31, 2019
Net income	$	5,346	$	(11,237	)	$	23,719		$	(7,667	)
Gain on royalty amendment		-		-			(9,291	)		-
Impairment of royalty interests		-		14,241			-			14,241
Other expense (income)		936		4			(1,904	)		100
Initial listing costs – NYSE American and TSX		-		-			-			284
Effect of taxes on adjusting items		-		-			3,100			-
Adjusted net income	$	6,282	$	3,008		$	15,624		$	6,958
Divided by:
Basic weighted average number of common shares		136,763,092		109,654,174			126,730,500			108,363,047
Equals:
Adjusted basic earnings per share	$	0.05	$	0.03		$	0.12		$	0.06

17

ii. Average realized gold price per GEO is calculated by dividing the Company’s total revenue by the GEOs sold. The Company presents average realized gold price per GEO as it believes that certain investors use this information to evaluate the Company’s performance in comparison to other royalty and streaming companies in the precious metals mining industry that present results on a similar basis. The table below provides a reconciliation of average realized price per GEO:

	Three months ended December 31, 2020		Three months ended December 31, 2019		Year ended December 31, 2020		Year ended December 31, 2019
Total revenue	$	16,569	$	10,499	$	51,681	$	33,712
Divided by:
GEOs sold1[10]		8,836		7,096		28,916		24,021
Equals:
Average realized gold price per GEO	$	1,875	$	1,480	$	1,787	$	1,403

iii. Average cash cost per GEO is calculated by dividing the Company’s cost of sales, excluding depletion, by the GEOs sold. The Company presents average cash cost per GEO as it believes that certain investors use this information to evaluate the Company’s performance in comparison to other royalty and streaming companies in the precious metals mining industry who present results on a similar basis. The table below provides a reconciliation of average cash cost per GEO:

	Three months ended December 31, 2020		Three months ended December 31, 2019		Year ended December 31, 2020		Year ended December 31, 2019
Cash cost of sales is comprised of:
Cost of sales, excluding depletion	$	1,628	$	1,215	$	5,020	$	3,927
Divided by:
GEOs sold		8,836		7,096		28,916		24,021
Equals:
Average cash cost per GEO	$	184	$	171	$	174	$	163

iv.

Cash operating margin is calculated by subtracting the average cash cost per GEO from the average realized gold price per GEO. The Company presents cash operating margin as it believes that certain investors use this information to evaluate the Company’s performance in comparison to other royalty and streaming companies in the precious metals mining industry that present results on a similar basis.

v.

The Company has also used the non-IFRS measure of operating cash flows excluding changes in non-cash working capital. This measure is calculated by adding back the decrease or subtracting the increase in changes in non-cash working capital to or from cash provided by operating activities.

Liquidity and Capital Resources

As at December 31, 2020, the Company had cash and cash equivalents of $7.8 million (December 31, 2019: $4.8 million) and working capital of $35.1 million (December 31, 2019: $19.9 million). As at December 31, 2020, the Company had $88.0 million available under its credit facility. In February 2021 after receiving $50.0 million from the Hope Bay Buyback, the Company repaid the $32.0 million outstanding under the credit facility at December 31, 2020, leaving the full $120.0 million available.

Cash flow from operations

For the year ended December 31, 2020, cash flow from operations was $33.0 million, compared with $21.0 million for the year ended December 31, 2019, with the increase primarily attributable to the Company’s growing portfolio of cash flowing Royalties and Streams and a 27% increase in the realized gold price per GEO, as previously discussed in more detail.

¹The Company’s royalty revenue and silver sales are converted to a GEO basis by dividing the royalty revenue plus silver sales for a period by the average gold price based on the LBMA Gold Price PM Fix per ounce for the same respective period. Total GEOs sold includes the GEOs from the Company’s royalty revenue and silver sales plus the gold ounces sold from the Company’s gold Stream.

18

Cash flow used in investing activities

For the year ended December 31, 2020, the Company had net cash outflows of $0.6 million from investing activities primarily due to cash consideration for the Newmont Royalty Portfolio, the purchase of investments and the income taxes paid of $2.8 million from the Beta Hunt Royalty Amendment. This was partially offset by $12.0 million in ROFR proceeds received in connection with the acquisition of the Kinross royalty portfolio and net proceeds from the closing of the Beta Hunt Royalty Amendment. During the year ended December 31, 2019, the Company had net cash outflows from investing activities of $76.3 million primarily from the cash portion of the consideration for the Kinross royalty portfolio and the purchase of the additional 1.5% NSR royalty on the Hope Bay mine and the El Mochito Stream.

Cash flow (used in) from financing activities

During the year ended December 31, 2020, the Company had net cash outflows from financing activities of $29.5 million, which was primarily the result of Company repaying $57.0 million of its credit facility, dividend payments of $6.4 million and financing costs associated with our credit facility of $2.3 million. The net cash outflows were partially offset by the drawdown of $20.0 million from the Company’s credit facility and net proceeds received from the exercise of warrants by Pan American and stock options. During the year ended December 31, 2019, the Company had net cash inflows from financing activities of $55.2 million, which was primarily the result of drawdowns on the credit facility to fund or partially fund the cash consideration paid for the acquisition of the Kinross Portfolio, the Additional Royalty and Bonus Royalty on the Hope Bay mine and the El Mochito Stream. The cash inflows were partially offset by repayment of the Company’s credit facility and financing costs associated with amending the Company’s credit facility agreement.

Liquidity

We believe our current financial resources and funds generated from operations will be adequate to cover anticipated expenditures for general and administration and project evaluation costs and anticipated minimal capital expenditures for the foreseeable future. Our long-term capital requirements are primarily affected by our ongoing activities related to the acquisition or creation of Royalties and Streams.

The Company currently, and generally at any time, has acquisition opportunities in various stages of active review. In the event of the acquisition of one or more significant Royalties or Streams, we may seek additional debt or equity financing as necessary.

Purchase Commitments:

In connection with its Streams, the Company has committed to purchase the following:

	Percent of life of mine production			Per ounce cash payment: Lesser of amount below and the then prevailing market price (unless otherwise noted)
Gold Stream interests
La Bolsa		5	%	$	450
La Colorada		100	%	$	650
Silver Stream interests
El Mochito		22.5	%(1)		25% of silver spot price
Moss		100	%(2)		20% of silver spot price

⁽¹⁾ If 3.0 million ounces of silver are delivered to Maverix prior to April 1, 2022, Maverix’s silver purchase entitlement will be 20% of life of mine silver production.

⁽²⁾ After 3.5 million ounces of silver are delivered, Maverix’s silver purchase entitlement will be 50% of the remaining life of mine silver production.

In connection with the acquisition of the Silvertip Royalty in 2017, the Company may issue an additional 1,400,000 common shares of the Company when the Silvertip mine achieves commercial production and a cumulative throughput of 400,000 tonnes of ore through the processing plant is achieved.

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Off-Balance Sheet Arrangements

The Company does not utilize off-balance sheet arrangements.

Related Party Transactions

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities, including any director of the Company. Compensation for key management personnel of the Company was as follows:

	Year ended December 31, 2020		Year ended December 31, 2019
Compensation and benefits	$	3,632	$	2,530
Share-based compensation		1,532		1,471
Total compensation	$	5,164	$	4,001

During the years ended December 31, 2020 and 2019, the Company purchased $2.3 million and $2.4 million, respectively, of refined gold from Pan American at a price of $650 per ounce purchased under its La Colorada gold Stream agreement. As a consequence of its shareholding and other factors, Pan American is deemed to have significant influence over the Company.

The Company completed the acquisition of the Newmont Royalty Portfolio during the year ended December 31, 2020. As a consequence of its shareholding and other factors, Newmont is deemed to have significant influence over the Company.

Critical Accounting Judgements and Estimates

The preparation of the consolidated financial statements in conformity with IFRS requires the Company’s management to make judgments, estimates and assumptions that affect the amounts reported in the consolidated financial statements. Estimates and assumptions are based on management’s best knowledge of the relevant facts and circumstances. However, actual results may differ from those estimates included in the consolidated financial statements.

The Company’s significant accounting policies and estimates are disclosed in Notes 2 and 3 of the Consolidated Financial Statements.

Financial Instruments

The Company has exposure to a variety of financial risks from its use of financial instruments. This note presents information about the Company's exposure to each of these risks, the Company's objectives, policies and processes for measuring and managing risk, and the Company's management of capital.

Capital Risk Management

The Company’s primary objective when managing capital is to maximize returns for its shareholders by growing its asset base through accretive acquisitions of royalties, streams and other interests, while optimizing its capital structure by balancing debt and equity. At December 31, 2020, the capital structure of the Company consists of $341.0 million (December 31, 2019: $241.7 million) of total equity, comprising share capital, reserves, accumulated other comprehensive income, and retained earnings (deficit), and $32.0 million (December 31, 2019: $69.0 million) drawn under the Company’s credit facility. The Company was not subject to any externally imposed capital requirements with the exception of complying with certain covenants under the credit facility. The Company is in compliance with its debt covenants as at December 31, 2020.

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Credit Risk

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company's credit risk is primarily attributable to its liquid financial assets including cash and cash equivalents and accounts receivables in the ordinary course of business. In order to mitigate its exposure to credit risk, the Company maintains its cash and cash equivalents in several high-quality financial institutions and closely monitors its accounts receivable balances. The Company’s accounts receivable are subject to the credit risk of the counterparties who own and operate the mines underlying Maverix’s royalty portfolio.

Currency Risk

Financial instruments that affect the Company’s net income due to currency fluctuations include cash and cash equivalents, accounts receivable, investments, trade payables and other denominated in Canadian and Australian dollars. Based on the Company’s Canadian and Australian dollar denominated monetary assets and liabilities at December 31, 2020, a 10% increase (decrease) of the value of the Canadian and Australian dollar relative to the US dollar would increase (decrease) net income by $0.3 million and other comprehensive income by $1.8 million, respectively.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company’s approach to managing liquidity is to ensure it will have sufficient liquidity to meet liabilities when due. In managing liquidity risk, the Company considers anticipated cash flows from operations and its holding of cash and cash equivalents. As at December 31, 2020, the Company had cash and cash equivalents of $7.8 million (December 31, 2019: $4.8 million) and working capital of $35.1 million (December 31, 2019: $19.9 million). In addition, at December 31, 2020 the Company had $88.0 million available under its credit facility. In February 2021, the Company repaid the $32.0 million outstanding under the credit facility at December 31, 2020, leaving the full $120.0 million available.

Other Risks

The Company is exposed to equity price risk as a result of holding common shares in other mining companies. The combined fair market value as at December 31, 2020 is $18.2 million (December 31, 2019: $7.1 million). The equity prices of investments are impacted by various underlying factors including commodity prices and the volatility in global markets as a result of COVID-19 and the daily exchange traded volume of the equity may not be sufficient for the Company to liquidate its position in a short period of time without potentially affecting the market value of the equity. Based on the Company’s investments held as at December 31, 2020, a 10% increase (decrease) in the equity prices of these investments would increase (decrease) other comprehensive income by $1.8 million.

Outstanding Share Data

As at March 22, 2021, the Company had 141,007,812 outstanding common shares, 3,479,533 outstanding share purchase options outstanding with a weighted average exercise price of CAD$4.34, 192,694 outstanding restricted share units, and 10,000,000 outstanding share purchase warrants with a weighted average exercise price of $2.84.

Risks and Uncertainties

A few of the primary risk factors affecting the Company are set forth below. For a full discussion of risk factors, please refer to the section “Risk Factors” contained in the Company’s Annual Information Form (“AIF”) available under the Company’s profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

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Public Health Crises, including the COVID-19 Pandemic may Significantly Impact Maverix

Maverix’s business, operations and financial condition could be materially adversely affected by public health crises, including epidemics, pandemics and or other health crises, such as the outbreak of COVID-19. The current COVID-19 global health pandemic is significantly impacting the global economy and commodity and financial markets. The full extent and impact of the COVID-19 pandemic is unknown and to date has included extreme volatility in financial markets, a slowdown in economic activity, extreme volatility in commodity prices (including precious metals) and has raised the prospect of a global recession. The international response to COVID-19 has led to significant restrictions on travel, temporary business closures, quarantines, global stock market volatility and a general reduction in consumer activity, globally. Public health crises, such as the COVID-19 outbreak, can result in operating, supply chain and project development delays that can materially adversely affect the operations of third parties in which Maverix has an interest. Mining operations in which Maverix holds an interest could be suspended for precautionary purposes or as governments declare states of emergency or other actions are taken in an effort to combat the spread of COVID-19. If the operation or development of one or more of the properties in which Maverix holds a royalty, stream or other interest and from which it receives or expects to receive significant revenue is suspended, it may have a material adverse impact on Maverix’s profitability, results of operations, financial condition and the trading price of Maverix’s securities.

The risks to Maverix’s business include without limitation, the risk of breach of material contracts and customer agreements, employee health, workforce productivity, increased insurance premiums, limitations on travel, the availability of industry experts and personnel, prolonged restrictive measures put in place in order to control an outbreak of contagious disease or other adverse public health developments globally and other factors that will depend on future developments beyond Maverix’s control, which may have a material and adverse effect on Maverix’s business, financial condition and results of operations. In addition, Maverix may experience business interruptions as a result of suspended or reduced operations at the mines in which Maverix has an interest, relating to the COVID-19 outbreak or such other events that are beyond the control of Maverix, which could in turn have a material adverse impact on Maverix’s business, operating results, financial condition and the market for its securities. As at the date of this MD&A, the duration of any business disruptions and related financial impact of the COVID-19 outbreak cannot be reasonably estimated. It is unknown whether and how Maverix may be affected if such pandemic, such as the COVID-19 outbreak, persists for an extended period of time.

Maverix Has No Control Over Mining Operations

Maverix is not directly involved in the operation of mines. The revenue Maverix may derive from its portfolio of Royalty and Stream assets is based on production from third party mine owners and operators. Maverix will enter into precious metal purchase agreements to purchase a certain percentage of precious metals or other metals produced by certain mines and operations and Maverix expects to receive payments under Royalty agreements from certain mines and operations, however, Maverix will not have a direct interest in the operation or ownership of those mines and projects. The owners and operators generally will have the power to determine the manner in which the properties are exploited, including decisions to expand, continue or reduce, suspend or discontinue production from a property, decisions about the marketing of products extracted from the property and decisions to advance exploration efforts and conduct development of non-paying properties. The interests of third-party owners and operators and those of Maverix in respect of a relevant project or property may not always be aligned. The inability of Maverix to control the operations for the properties in which it has a Royalty, Stream or other interest may result in a material adverse effect on the profitability of Maverix, the results of operations of Maverix and its financial condition. Except in a limited set of circumstances as specified in a specific Royalty or Stream, Maverix will not receive compensation if a specific mine or operation fails to achieve or maintain production or if the specific mine or operation is closed or discontinued. In addition, mining operations in respect of which Maverix holds an indirect interest may not commence commercial production and there can be no assurance that such mines or project will achieve profitable and continued production levels. In addition, the owners or operators may take action contrary to policies or objectives of Maverix; be unable or unwilling to fulfill their obligations under their agreements with Maverix; have difficulty obtaining or be unable to obtain the financing necessary to move projects forward; or experience financial, operational or other difficulties, including insolvency, which could limit the owner or operator’s ability to perform its obligations under arrangements with Maverix. Maverix is also subject to the risk that a specific mine or project may be put on care and maintenance or have its operations suspended, on both a temporary or permanent basis.

The owners or operators of the projects or properties in which Maverix holds an interest may from time to time announce transactions, including the sale or transfer of the projects or of the operator itself, over which Maverix has little or no control. If such transactions are completed it may result in a new operator controlling the project, who may or may not operate the project in a similar manner to the current operator which may positively or negatively impact Maverix. If any such transaction is announced, there is no certainty that such transaction will be completed, or completed as announced, and any consequences of such non-completion on Maverix may be difficult or impossible to predict.

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Changes in Commodity Prices that underlie Royalty, Stream or Other Interests

The price of Maverix’s Common Shares may be significantly affected by declines in commodity prices. The revenue derived by Maverix from its asset portfolio will be significantly affected by changes in the market price of commodities that underlie the Royalty, Stream or other investments or interests of Maverix. Maverix’s revenue is particularly sensitive to the changes in the price of gold and silver. The cash flows and revenues derived by Maverix from its asset portfolio are dependent on the price of gold and gold production from those assets. The price of gold and other commodities fluctuates daily and are affected by factors beyond the control of Maverix, including levels of supply and demand, industrial development, inflation and interest rates, the U.S. dollar’s strength and geopolitical events. External economic factors that affect commodity prices can be influenced by changes in international investment patterns, monetary systems and political developments.

All commodities, by their nature, are subject to wide price fluctuations and future material price declines will result in a decrease in revenue or, in the case of severe prolonged declines that cause a suspension or termination of production by relevant operators, a complete cessation of revenue from Royalties, Streams or working interests applicable to one or more relevant commodities. While Maverix has focused on assembling a portfolio of assets that provide primary exposure to gold and silver production and prices, the commodity market trends are cyclical in nature and a general downturn in commodity prices could result in a significant decrease in overall revenue.

Third Party Reporting

Maverix relies on public disclosure and other information regarding specific mines or projects that is received from the owners or operators of the mines or other independent experts. The information received may be susceptible to being imprecise as the result of it being compiled by certain third parties. The disclosure created by Maverix may be inaccurate if the information received contains inaccuracies or omissions, which could create a material adverse effect on Maverix. In addition, a Royalty or Stream agreement may require an owner or operator to provide Maverix with production and operating information that may, depending on the completeness and accuracy of such information, enable Maverix to detect errors in the calculation of Royalty or Stream amounts owed. As a result, the ability of Maverix to detect payment errors through its associated internal controls and procedures is limited, and the possibility exists that Maverix will need to make retroactive adjustments. Of the Royalty or Stream agreements that Maverix enters into, some may provide Maverix the right to audit the operational calculations and production data for associated payments; however, such audits may occur many months following the recognition by Maverix of the applicable revenue and may require Maverix to adjust its revenue in later periods. As a holder of an interest in a Royalty or Stream, Maverix will have limited access to data on the operations or to the actual properties underlying the Royalty or Stream. This limited access to data or disclosure regarding operations could affect the ability of Maverix to assess the performance of the Royalty or Stream. This could result in delays in cash flow from that which is anticipated by Maverix based on the stage of development of the properties covered by the assets within the portfolio of Maverix.

Environmental Risks

All phases of mine operation or development are subject to governmental regulation including environmental regulation in the various jurisdictions in which they operate. Environmental legislation is evolving in a manner which will require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and heightened responsibility for companies and their officers, directors and employees. There is no assurance that future changes in environmental regulation, if any, will not adversely affect the mines and projects in which Maverix has an interest and consequently, the results of Maverix’s operations. Also, unknown environmental hazards may exist on the properties at present which were caused by previous or existing owners or operators of the properties and which could impair the commercial success, levels of production and continued feasibility and project development and mining operations on these properties. One or more of the mining companies may become liable for such environmental hazards caused by previous owners or operators of the properties.

Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions thereunder, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment or remedial actions. Parties engaged in mining operations or in the exploration or development of mineral properties may be required to compensate those suffering loss or damage by reason of the mining activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations. The occurrence of any environmental violation or enforcement action may have an adverse impact on the operations at the mines and projects in which Maverix has an interest in, Maverix’s reputation and could adversely affect Maverix’s results of operations.

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Disclosure Controls and Procedures

The Company’s management, with the participation of its Chief Executive Officer (“CEO”) and its Chief Financial Officer (“CFO”), have evaluated the effectiveness of the Company’s disclosure controls and procedures, as defined in the rules of the U.S. Securities Exchange Commission and Canadian Securities Administrators. Based upon the results of that evaluation, the Company’s CEO and CFO have concluded that, as of December 31, 2020, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by the Company in reports it files is recorded, processed, summarized and reported, within the appropriate time periods and is accumulated and communicated to management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Internal Controls Over Financial Reporting

Management of the Company is responsible for establishing and maintaining effective internal control over financial reporting as such term is defined in National Instrument 52-109 – Certification of Disclosure in Issuer’s Annual and Interim Filings in Canada (“NI 52-109”) and under the Securities Exchange Act of 1934, as amended, in the United States. The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of the Company’s financial reporting for external purposes in accordance with IFRS as issued by the IASB. The Company’s internal control over financial reporting includes:

· maintaining records, that in reasonable detail, accurately and fairly reflect our transactions and dispositions of the assets of the Company;

· providing reasonable assurance that transactions are recorded as necessary for preparation of the consolidated financial statements in accordance with IFRS as issued by the IASB;

· providing reasonable assurance that receipts and expenditures are made in accordance with authorizations of management and the directors of the Company; and

· providing reasonable assurance that unauthorized acquisition, use or disposition of Company assets that could have a material effect on the Company’s consolidated financial statements would be prevented or detected on a timely basis.

The Company’s internal control over financial reporting may not prevent or detect all misstatements because of inherent limitations. Additionally, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with the Company’s policies and procedures. Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2020 based on the criteria set forth in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, management has concluded that, as of December 31, 2020 the Company’s internal control over financial reporting is effective and no material weaknesses were identified.

There were no changes to the Company’s internal controls over financial reporting during the year ended December 31, 2020 that have materially affected, or are likely to materially affect, the Company’s internal control over financial reporting or disclosure controls and procedures.

Limitation of Controls and Procedures

The CEO and CFO, in consultation with management, believe that any disclosure controls and procedures or internal control over financial reporting, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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Forward-Looking Statements

This MD&A contains “forward-looking information” or "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking information is provided as of the date of this MD&A and Maverix does not intend to and does not assume any obligation to update forward-looking information, except as required by applicable law. For this reason and the reasons set forth below, investors should not place undue reliance on forward-looking statements.

Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is based on reasonable assumptions that have been made by Maverix as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, limited to: the impact of general business and economic conditions; the absence of control over mining operations from which Maverix will purchase precious metals or from which it will receive stream or royalty payments, and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine construction and operations, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans are refined; problems related to the ability to market precious metals or other metals; industry conditions, including commodity price fluctuations, interest and exchange rate fluctuations; interpretation by government entities of tax laws or the implementation of new tax laws; the volatility of the stock market; competition; risks related Maverix’s dividend policy; the potential impact of epidemics, pandemics or other public health crises, including the current outbreak of novel coronavirus (COVID-19), on the Company's business, operations and financial condition; also, those risk factors discussed in this MD&A and under the heading “Risk Factors” in the Company’s AIF for the year ended December 31, 2020 available at www.sedar.com and www.sec.gov.

Forward-looking information in this MD&A includes disclosure regarding payments to Maverix pursuant to Royalties and Streams by owners or operators of the underlying mining operations or projects. Forward-looking statements are based on a number of material assumptions, which management of Maverix believe to be reasonable, including, but not limited to, the continuation of mining operations in respect of which Maverix will receive Royalty payments or from which it will purchase precious or other metals, that commodity prices will not experience a material adverse change, mining operations that underlie Royalties or Streams will operate in accordance with disclosed parameters and such other assumptions as may be set out herein.

Although Maverix has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results to not be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Readers of this MD&A should carefully review the risk factors set out in this MD&A and those risk factors that are set out in the AIF under the heading “Risk Factors”.

Technical and Third-Party Information

Brendan Pidcock, P.Eng., Vice President Technical Services for Maverix and a qualified person as defined under NI 43-101 has reviewed and approved the written scientific and technical disclosure contained in this document.

Except where otherwise stated, the disclosure in this MD&A relating to properties and operations in which Maverix holds Royalty, Stream or other interests is based on information publicly disclosed by the owners or operators of these properties and information/data available in the public domain as at the date hereof, and none of this information has been independently verified by Maverix. Specifically, as a Royalty or Stream holder, Maverix has limited, if any, access to properties on which it holds Royalties, Streams, or other interests in its asset portfolio. The Company may from time to time receive operating information from the owners and operators of the mining properties, which it is not permitted to disclose to the public. Maverix is dependent on, (i) the operators of the mining properties and their qualified persons to provide information to Maverix, or (ii) on publicly available information to prepare disclosure pertaining to properties and operations on the properties on which the Company holds Royalty, Stream or other interests, and generally has limited or no ability to independently verify such information. Although the Company does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party information is complete or accurate. Some reported public information in respect of a mining property may relate to a larger property area than the area covered by Maverix’s Royalty, Stream or other interest. Maverix’s Royalty, Stream or other interests may cover less than 100% of a specific mining property and may only apply to a portion of the publicly reported mineral reserves, mineral resources and or production from a mining property.

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EX-99.4

Exhibit 99.4

CERTIFICATION

I, Dan O’Flaherty, certify that:

1. I have reviewed this annual report on Form 40-F of Maverix Metals Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 23, 2021

/s/ Dan O’Flaherty

Dan O’Flaherty

Chief Executive Officer

(Principal Executive Officer)

EX-99.5

Exhibit 99.5

CERTIFICATION

I, Matt Fargey, certify that:

1. I have reviewed this annual report on Form 40-F of Maverix Metals Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 23, 2021

/s/ Matt Fargey

Matt Fargey

Chief Financial Officer

(Principal Financial Officer)

EX-99.6

Exhibit 99.6

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Maverix Metals Inc. (the “Company”) on Form 40-F for the year ended December 31, 2020, as filed with the SEC on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Dan O’Flaherty

Dan O’Flaherty

Chief Executive Officer

(Principal Executive Officer)

March 23, 2021

EX-99.7

Exhibit 99.7

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Maverix Metals Inc. (the “Company”) on Form 40-F for the year ended December 31, 2020, as filed with the SEC on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Matt Fargey

Matt Fargey

Chief Financial Officer

(Principal Financial Officer)

March 23, 2021

EX-99.8

Exhibit 99.8

CONSENT OF QUALIFIED PERSON (BRENDAN PIDCOCK)

I hereby consent to the inclusion of information related to the scientific and technical disclosure included in or incorporated by reference into the Annual Information Form for the year ended December 31, 2020 (the “AIF”) and the related annual report on Form 40-F (the “40-F”) of Maverix Metals Inc.

I also hereby consent to the incorporate by reference of the information contained in the AIF and 40-F, into Maverix Metals Inc.’s Registration Statement on Form F-10 (Registration No. 333-233589) filed on September 3, 2019, as amended.

/s/ Brendan Pidcock

Name: Brendan Pidcock, P.Eng.

Title: Vice President, Technical Services, Maverix Metals Inc.

March 23, 2021.

EX-99.9

Exhibit 99.9

KPMG LLP	Telephone	(604) 691-3000
Chartered Professional Accountants	Fax	(604) 691-3031
PO Box 10426 777 Dunsmuir Street	Internet	www.kpmg.ca
Vancouver BC V7Y 1K3
Canada

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Maverix Metals Inc.

We consent to the use of our report, dated March 22, 2021, with respect to the consolidated financial statements of Maverix Metals Inc. as at December 31, 2020 and 2019, included in this annual report on Form 40-F.

Our report on the consolidated financial statements refers to a change in accounting principle for the change in the Company’s presentation currency from the Canadian dollar to the U.S. dollar. The change is as of January 1, 2020, and has been retrospectively applied, and the statement of financial position as of January 1, 2019, has been included pursuant to the requirements of International Financial Reporting Standards.

We also consent to the incorporation by reference of such report in the Registration Statements (No. 333-233589) on Form F-10/A of Maverix Metals Inc.

/s/ KPMG LLP

Chartered Professional Accountants

March 23, 2021

Vancouver, Canada

KPMG LLP is a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

KPMG Canada provides services to KPMG LLP.

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Document and Entity Information	12 Months Ended
	Dec. 31, 2020 shares
Document and Entity Information
Entity Registrant Name	MAVERIX METALS INC.
Entity Central Index Key	0001773250
Document Type	40-F
Document Period End Date	Dec. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding	140,488,309

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Consolidated Statements of Financial Position - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2019
Current assets
Cash and cash equivalents	$ 7,760	$ 4,828	$ 5,017
Accounts receivable	13,533	7,048	5,726
Investments (Note 6)	18,238
Right of first refusal receivable (Note 4b)		12,000
Asset held for sale (Note 4a)	1,500
Prepaid expenses and other	653	483	267
Total current assets	41,684	24,359	11,010
Non-current assets
Royalty, stream and other interests (Note 4 & 5)	334,210	281,405	198,091
Investments (Note 6)	1,000	7,148	4,458
Deferred financing costs and other	960	1,400	823
Deferred tax asset (Note 13)	1,753	823	823
Total assets	379,607	315,135	215,205
Current liabilities
Trade payables and other	3,285	3,233	2,713
Deferred revenue (Note 4a)	3,333
Dividend payable (Note 8e)		1,196
Total current liabilities	6,618	4,429	2,713
Non-current liabilities
Credit facility (Note 7)	32,000	69,000	12,300
Total liabilities	38,618	73,429	15,013
Capital and reserves
Share capital (Note 8a)	318,530	237,509	187,028
Reserves	10,654	14,009	13,298
Accumulated other comprehensive income	4,326	1,262	2,077
Retained earnings (deficit)	7,479	(11,074)	(2,211)
Total equity	340,989	241,706	200,192
Total liabilities and equity	$ 379,607	$ 315,135	$ 215,205

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Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
Royalty revenue (Note 14)	$ 32,689	$ 21,797
Sales (Note 14)	18,992	11,915
Total revenue	51,681	33,712
Cost of sales, excluding depletion	(5,020)	(3,927)
Depletion (Note 5)	(17,999)	(13,181)
Total cost of sales	(23,019)	(17,108)
Gross profit	28,662	16,604
Administration expenses (Note 9)	(4,784)	(4,407)
Project evaluation expenses (Note 9)	(3,502)	(2,300)
Royalty interest impairment (Note 5b)	0	(14,241)
Income (loss) from operations	20,376	(4,344)
Other income and expenses
Gain on amendment of royalty interest (Note 4a)	9,291
Foreign exchange gain (loss)	664	(227)
Other income (expense)	1,904	(100)
Finance expense	(2,456)	(1,813)
Income (loss) before income taxes	29,779	(6,484)
Income tax expense (Note 13)	(6,060)	(1,183)
Net income (loss)	$ 23,719	$ (7,667)
Earnings per share (Note 10)
Basic earnings (loss) per share | (per share)	$ 0.19	$ (0.07)
Diluted earnings (loss) per share | (per share)	$ 0.17	$ (0.07)
Weighted average number of common shares outstanding:
Basic | shares	126,730,500	108,363,047
Diluted | shares	135,975,539	108,363,047
Other Comprehensive Income (Loss)
Net income (loss)	$ 23,719	$ (7,667)
Item that will not be subsequently reclassified to net income:
Changes in fair value on investments (Note 6)	3,466	(815)
Income tax expense on investments (Note 13)	(402)
Comprehensive income (loss)	$ 26,783	$ (8,482)

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Operating activities
Net income (loss)	$ 23,719	$ (7,667)
Depletion and amortization	18,146	13,303
Royalty interest impairment (Note 5b)	0	14,241
Income tax expense	6,060	1,183
Share-based compensation	1,688	1,666
Finance expense	2,456	1,813
Unrealized foreign exchange (gain) loss	(284)	67
Unrealized (gain) loss on warrants	(1,891)	92
Income taxes paid on operating activities	(4,076)	(1,230)
Gain on amendment of royalty interest (Note 4)	(9,291)
Changes in non-cash working capital (Note 11)	(3,527)	(2,507)
Net cash provided by operating activities	33,000	20,961
Investing activities
Acquisition of royalty, stream and other interests (Note 4)	(15,436)	(73,230)
Acquisition of investments and other (Note 6)	(7,137)	(3,053)
Proceeds from amendment of royalty interest (Note 4)	12,164
Taxes paid on amendment of royalty interest (Note 4)	(2,787)
Proceeds from disposal of equity investments	568
Right of first refusal proceeds (Note 4b)	12,000
Net cash used in investing activities	(628)	(76,283)
Financing activities
Proceeds from credit facility (Note 7)	20,000	62,000
Repayment of credit facility (Note 7)	(57,000)	(5,300)
Financing costs and interest paid	(2,337)	(2,129)
Dividends paid (Note 8e)	(6,361)
Proceeds from exercise of warrants and stock options (Note 8b & 8c)	16,152	619
Net cash (used in) provided by financing activities	(29,546)	55,190
Effect of exchange rate changes on cash and cash equivalents	106	(57)
Increase (decrease) in cash and cash equivalents	2,932	(189)
Cash and cash equivalents at the beginning of the year	4,828	5,017
Cash and cash equivalents at the end of the year	$ 7,760	$ 4,828

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Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Share capital Newmont Portfolio Acquisition	Share capital Kinross Portfolio Acquisition	Share capital	Share warrant reserve	Share option reserve	Accumulated other comprehensive income	Retained earnings(deficit)	Newmont Portfolio Acquisition	Kinross Portfolio Acquisition	Total
Balance at the beginning at Dec. 31, 2018			$ 187,028	$ 10,999	$ 2,299	$ 2,077	$ (2,211)			$ 200,192
Balance at the beginning (in shares) at Dec. 31, 2018			107,715,646
Total comprehensive income (loss)						(815)	(7,667)			(8,482)
Dividend declared (Note 8e)							(1,196)			(1,196)
Shares and warrants issued for Royalty Portfolio (Note 4)		$ 48,907							$ 48,907
Shares and warrants issued for Royalty Portfolio (in shares)		11,228,674
Shares issued for options exercised (Note 8c)			$ 1,070		(451)					619
Shares issued for options exercised (Note 8c) (in shares)			508,964
Share-based compensation			$ 504		1,162					1,666
Share-based compensation (in shares)			125,205
Balance at the end at Dec. 31, 2019			$ 237,509	10,999	3,010	1,262	(11,074)			241,706
Balance at the end (in shares) at Dec. 31, 2019			119,578,489
Total comprehensive income (loss)						3,064	23,719			26,783
Dividend declared (Note 8e)							(5,166)			(5,166)
Shares and warrants issued for Royalty Portfolio (Note 4)	$ 59,826							$ 59,826
Shares and warrants issued for Royalty Portfolio (in shares)	12,000,000
Shares issued for warrants exercised (Note 8b)			$ 19,922	(4,390)						15,532
Shares issued for warrants exercised (Note 8b) (in shares)			8,250,000
Shares issued for options exercised (Note 8c)			$ 1,238		(618)					620
Shares issued for options exercised (Note 8c) (in shares)			650,580
Share-based compensation			$ 35		1,653					1,688
Share-based compensation (in shares)			9,240
Balance at the end at Dec. 31, 2020			$ 318,530	$ 6,609	$ 4,045	$ 4,326	$ 7,479			$ 340,989
Balance at the end (in shares) at Dec. 31, 2020			140,488,309

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NATURE OF OPERATIONS

12 Months Ended

Dec. 31, 2020

NATURE OF OPERATIONS

NATURE OF OPERATIONS

1.NATURE OF OPERATIONS

Maverix Metals Inc. (“Maverix” or the “Company”) is incorporated and domiciled in Canada and its registered head office address is Suite 575, 510 Burrard Street, Vancouver, British Columbia, V6C 3A8, Canada. The Company’s common shares trade on the New York Stock Exchange American and Toronto Stock Exchange under the symbol “MMX”.

Maverix is a resource-based company that seeks to acquire and manage royalties and metal purchase agreements (a “Stream” or “Streams”) on projects that are in an advanced stage of development, on operating mines producing precious or other metals, or in some circumstances, exploration stage projects. Royalty interests (“Royalty” or collectively, “Royalties”) are non-operating interests in mining projects that provide Maverix with the right to a percentage of the gross revenue from the metals produced from the project (a “Gross Revenue Royalty” or “GRR”) or, the net revenue after the deduction of specified costs (a “Net Smelter Returns Royalty” or “NSR” royalty). Under a Stream interest, Maverix makes an upfront payment to acquire the Stream and then receives the right to purchase, at a fixed or variable price per unit based on the spot price of the precious or other metal, a percentage of a mine’s production for the life of mine or a specified time period.

These consolidated financial statements were approved and authorized for issue by the Board of Directors of the Company on March 22, 2021.

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SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2020

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

2.SIGNIFICANT ACCOUNTING POLICIES

a)Statement of Compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standard Board (“IASB”).

b)Basis of Preparation

These consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments, which are measured at fair value. The consolidated financial statements are presented in United States dollars ("USD") (Note 2g), unless otherwise noted.

c)    Principles of Consolidation

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including its principal subsidiaries Maverix Metals (Australia) Pty Ltd. and Maverix Metals (Nevada) Inc. Subsidiaries are fully consolidated from the date the Company obtains control and continues to be consolidated until the date that control ceases. Control is achieved when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

All intercompany balances, transactions, revenues and expenses have been eliminated on consolidation.

d)    Royalty, Stream and Other Interests

Royalty, stream and other interests consist of acquired royalty, stream and other interests. These interests are recorded at cost and capitalized as tangible assets with finite lives. They are subsequently measured at cost less accumulated depletion and accumulated impairment losses, if any. Project evaluation expenses that are not related to a specific royalty or stream asset are expensed in the period incurred.

Producing royalty and stream interests are depleted using the units-of-production method over the life of the property to which the interest relates, which is estimated using available information of proven and probable reserves and the portion of resources expected to be classified as mineral reserves at the mine corresponding to the specific agreement.

On acquisition of a royalty or stream interest, an allocation of its fair value may be attributed to the exploration potential of the interest (non-depletable interest) and is accounted for in accordance with IFRS 6, Exploration and Evaluation of Mineral Resources (“IFRS 6”). Once the technical feasibility, commercial viability and a development decision have been established, the value of the asset is reclassified and accounted for in accordance with IAS 16, Property, Plant and Equipment (“IAS 16”). The exploration and evaluation asset is subject to an impairment test prior to reclassification in accordance with IFRS 6.

e)    Impairment of Royalty, Stream and Other Interests

Evaluation of the carrying values of each mineral interest is undertaken when events or changes in circumstances indicate that the carrying values may not be recoverable. Impairment is assessed at the level of cash-generating units, which is the smallest identifiable group of assets that generates cash inflows and largely independent of the cash inflows from other assets. This is usually at the individual royalty, stream, or other interest level for each property from which cash inflows are generated.

An impairment loss is recognized for the amount by which the asset’s carrying value exceeds its recoverable amount, which is the higher of its fair value less costs of disposal (“FVLCD”) and its value in use (“VIU”). Estimated future cash flows are calculated using estimated production, sales prices and a discount rate. Estimated future production is determined using current reserves and the portion of resources expected to be classified as mineral reserves, as well as exploration potential expected to be converted into resources or reserves. Estimated sales prices are determined by reference to an average of long-term metal price forecasts by research analysts and management’s expectations. The discount rate is estimated using an average discount rate incorporating research analyst views used to value precious metal royalty and streaming companies. All inputs used are those that an independent market participant would consider appropriate. In addition, the Company may use other market approaches for determining the recoverable amount which may include an estimate of (i) dollar value per unit of mineral reserve/resource; (ii) cash-flow multiples; (iii) comparable transactions or (iv) market capitalization of comparable assets.

An assessment is made at each reporting period if there is any indication that a previous impairment loss may no longer exist or has decreased. If indications are present, the carrying value of the royalty or stream interest is increased to the revised estimate of its recoverable amount to the extent that the increased carrying amount does not exceed the carrying amount net of depletion that would have been determined had no impairment loss been recognized for the royalty or stream interest in previous periods.

Royalty and stream interests classified as exploration and evaluation assets are assessed for impairment whenever indicators of impairment exist in accordance with IFRS 6. An impairment loss is recognized for the amount by which the asset’s carrying value exceeds its recoverable amount.

f)    Revenue Recognition

Revenue is comprised of revenue earned from royalty, stream and other interests. The Company recognizes revenue upon the transfer of control of the relevant commodity to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those commodities.

For Royalty interests, revenue recognition occurs when control of the relevant commodity is transferred to the end customer by the operator of the royalty property. Revenue is measured at the fair value of the consideration received or receivable when management can reliably estimate the amount, pursuant to the terms of the royalty agreement. In some instances, the Company will not have access to sufficient information to make a reasonable estimate of consideration to which it expects to be entitled and, accordingly, revenue recognition is deferred until management can make a reasonable estimate. Differences between estimates and actual amounts are adjusted and recorded in the period that the actual amounts are known.

For Streams, revenue recognition occurs when the relevant commodity received from the stream operator is delivered by the Company to its third-party customers. Revenue is measured at the fair value of the consideration received or receivable when management can reliably estimate the amount, pursuant to the terms of the sales contract.

g)    Foreign Currency Translation

The functional currency of the Company and its subsidiaries is the principal currency of the economic environment in which they operate. The functional currency of the Company and its significant wholly-owned subsidiaries is the USD.

Foreign currency transactions, including revenues and expenses, are translated into the functional currency at the rate of exchange prevailing on the date of each transaction or valuation when items are re-measured. Monetary assets and liabilities denominated in currencies other than the operation’s functional currencies are translated into the functional currency at exchange rates in effect at the balance sheet date. Foreign exchange gains and losses resulting from the settlement of those transactions and from period-end translations are recognized in the consolidated statement of income (loss).

Effective January 1, 2020, the Company elected to change its presentation currency from the Canadian dollar ("CAD") to USD. The change in presentation currency is to better reflect the Company's business activities and to improve investors' ability to compare the Company's financial results with other publicly traded precious metals royalty and streaming companies. The Company has applied the change to USD presentation currency retrospectively and restated the comparative financial information as if the new presentation currency had always been the Company's presentation currency.

h)    Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, right of first refusal ("ROFR") receivable, investments, trade and other payables, and the credit facility. All financial instruments are initially recorded at fair value and designated as follows:

Cash and cash equivalents include cash on account and short-term deposits with maturities from the date of acquisition of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. Cash and cash equivalents are subsequently measured at amortized cost using the effective interest rate method.

Trade receivables relate to amounts received from sales of refined gold and silver and royalty revenue. ROFR receivable relates to the underlying right of a property owner to repurchase a specific royalty (Note 4). These receivables are non-interest bearing and are recognized at fair value and are subsequently measured at amortized cost. We have applied the simplified approach to determining expected credit losses, which requires expected lifetime losses to be recognised upon initial recognition of the receivables.

Investments in common shares are designated as fair value through profit and loss (“FVTPL”) unless they are irrevocably designated, on an individual basis, as fair value through other comprehensive income (“FVTOCI”). Investment transactions are recognized on the trade date with transaction costs included in the underlying balance. Fair values are determined by reference to quoted market prices at the statement of financial position date. 

When investments in common shares designated as FVTOCI are disposed of, the cumulative gains and losses recognized in other comprehensive income are not recycled to the consolidated statement of income (loss) and remain within equity. Dividends received are recognized in income and these investments are not assessed for impairment.

The consideration for investments in units including common shares and share purchase warrants are allocated on a pro-rata basis, based on relative fair values at the date of issuance. The fair value of common shares are based on the market closing price. The fair value of share purchase warrants is determined using the quoted market price or if the warrants are not traded, using the Black-Scholes Model (“BSM”) as of the date of issuance.

Investments in warrants are classified as FVTPL. These warrants are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized as a component of net income (loss).

Trade and other payables and the credit facility are initially recorded at fair value, less transaction costs. These financial liabilities are subsequently measured at amortized cost, calculated using the effective interest rate method.

i)    Inventory

When refined gold or silver is delivered to the Company under a Stream agreement it is initially recorded as inventory. The amount recognized as inventory includes both the cash payment and the related depletion associated with the underlying Stream interest. At such time the inventory is sold, the amounts recognized in inventory are recorded as cost of sales and depletion.

j)    Income taxes

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used are those that are substantively enacted at the reporting date.

Deferred income taxes are provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for accounting. The change in the net deferred income tax asset or liability is included in income, except for deferred income tax relating to equity items which are recognized directly in equity. The income tax effects of differences in the periods when revenue and expenses are recognized in accordance with the Company's accounting practices, and the periods they are recognized for income tax purposes are reflected as deferred income tax assets or liabilities. Deferred income tax assets and liabilities are measured using the substantively enacted statutory income tax rates which are expected to apply to taxable income in the years in which the assets are realized or the liabilities settled. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available for utilization. Temporary differences arising on the initial recognition of assets or liabilities that affect neither accounting nor taxable profit are not recognized.

Deferred income tax assets and liabilities are offset only if a legally enforceable right exists to offset current tax assets against liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on the same taxable entity and are intended to be settled on a net basis.

The determination of current and deferred taxes requires interpretations of tax legislation, estimates of expected timing of reversal of deferred tax assets and liabilities, and estimates of future earnings.

k)    Share Capital and Share Purchase Warrants

Common shares are classified as equity. Incremental costs directly attributable to the issuance of shares are recognized as a deduction from the proceeds in equity in the period where the transaction occurs.

The fair value of common shares issued for goods and services is based on the fair value of the goods or services received unless the fair value cannot be readily determined. If the fair value cannot be readily determined, the Company uses the market closing price on the date the shares are issued, while the fair value of share purchase warrants is estimated using the quoted market price or if the warrants are not traded, using the BSM as of the date of issuance.

Share purchase warrants issued with an exercise price denominated in the Company’s functional currency (USD) are considered equity instruments with the consideration received reflected within shareholders’ equity under the classification of share purchase warrants reserve. Upon exercise, the original consideration is reallocated from share purchase warrants reserve to issued share capital along with the associated exercise price.

l)    Earnings Per Share

Basic earnings per share is computed by dividing the net income attributable to common shareholders by the weighted average number of common shares issued and outstanding during the period. Diluted earnings per share reflects the effect of all potentially dilutive common share equivalents, which includes dilutive share options, restricted share units ("RSUs") and warrants computed using the treasury stock method.

m)    Share Based Payments

The Company recognizes share based compensation expense for share purchase options, RSUs and common shares granted to directors, officers, employees and consultants under the Company’s equity-based incentive plans based on the fair values at the date of grant.

Share purchase options

The fair value of share purchase options is determined using the BSM, with market related inputs as of the grant date. The BSM requires management to estimate the expected volatility, expected term, risk-free rate of return over the term, expected dividends, and the number of equity instruments expected to ultimately vest. Volatility is estimated using the historic stock price of the Company and similar listed entities, the expected term is estimated using historical exercise data of the Company and similar listed entities, and the number of equity instruments expected to vest is estimated using historical forfeiture data.

The fair values of share purchase options at the date of grant are expensed over the vesting periods with a corresponding increase to equity. Share purchase options with graded vesting schedules are accounted for as separate grants with different vesting periods and fair values.

Restricted share units

The fair value of RSUs is determined by the market value of the underlying shares at the date of the grant. Under the Company’s RSU Plan, the Board of Directors has the discretion to settle the vested RSUs in cash or equity. As the Company does not have a present obligation to settle the issued RSUs in cash, the RSUs issued have been treated as equity-settled instruments. The fair values of RSUs at the date of grant are expensed over the vesting periods with a corresponding increase to equity. At the end of each reporting period, the Company re-assesses its estimates of the number of awards that are expected to vest and recognizes the impact of any revisions to this estimate in equity.

Common shares

The fair value of common shares granted is determined by the market value of the underlying shares at the date of the grant. The fair value of the common shares is expensed with a corresponding increase to equity.

n)    Related Party Transactions

Parties are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or significant influence. A transaction is considered a related party transaction when there is a transfer of resources or obligations between related parties.

o)    Segment Reporting

The Company’s reportable operating segments are components of the Company’s business where discrete financial information is available and which are evaluated on a regular basis by the Company’s Chief Executive Officer, who is the Company’s chief operating decision maker, for the purpose of assessing performance. An operating segment is a component of an entity that engages in business activities, operating results are reviewed with respect to resource allocation and for which discrete financial information is available. The Company’s executive head office and general corporate administration (including finance expenses) are included within ‘Corporate’ to reconcile the reportable segments to the consolidated financial statements. Refer to Note 14 for summary of the Company’s segmented information.

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CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

12 Months Ended

Dec. 31, 2020

CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

3.    CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

The preparation of the Company’s consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and assumptions are continuously evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates.

Information about significant areas of estimation uncertainty and judgments made by management in preparing the consolidated financial statements are described below.

a)    Attributable Reserve and Resource Estimates

Royalty, stream and other interests comprise a large component of the Company’s assets and as such, the mineral reserves and resources of the properties to which the interests relate have a significant effect on the Company’s consolidated financial statements. The Company estimates the reserves and resources relating to each agreement. Reserves are estimates of the amount of minerals that can be economically and legally extracted from the mining properties at which the Company has royalty, stream or other interest, adjusted where applicable to reflect the Company’s percentage entitlement to minerals produced from such mines. The Company estimates its reserves and resources based on information compiled by appropriately qualified persons relating to the geological data on the size, depth, and shape of the ore body, and requires complex geological judgments to interpret the data. The estimation of recoverable reserves is based upon factors such as estimates of foreign exchange rates, commodity prices, future capital requirements, and production costs along with geological assumptions and judgments made in estimating the size and grade of the ore body. Changes in the reserve or resource estimates may impact the carrying value of the Company’s royalty, stream and other interests and depletion charges.

The Company’s royalty, stream and other interests are depleted on a units-of-production basis, with estimated recoverable reserves and resources being used to determine the depletion rate for each of the Company’s royalty, stream and other interests. These calculations require the use of estimates and assumptions, including the amount of recoverable resources to be converted into reserves. Changes to depletion rates are accounted for prospectively.

b)    Fair Value of Acquired Royalty, Stream and Other Interests

The determination of the fair values of acquired royalty, stream and other interests requires the use of estimates and assumptions for recoverable production, commodity prices, discount rates, mineral reserve/resource conversion, foreign exchange rates, taxes, future capital expansion plans and the associated production implications. In addition, the Company may use other approaches in determining fair value which may include estimates related to (i) dollar value per unit of mineral reserve/resource; (ii) cash-flow multiples; (iii) comparable transactions and (iv) market capitalization of comparable assets. Changes in any of the estimates used in determining the fair value could impact the acquisition date fair values of the royalty, stream and other interests.

c)    Impairment of Royalty, Stream and Other Interests

Assessment of impairment of royalty, stream and other interests requires the use of judgments, assumptions and estimates when assessing whether there are any indicators that could give rise to the requirement to conduct a formal impairment test as well as in the assessment of fair values.

The assessment of the fair values of royalty, stream and other interests requires the use of estimates and assumptions for recoverable production, commodity prices, discount rates, mineral reserve/resource conversion, foreign exchange rates, taxes, future capital expansion plans and the associated production implications. In addition, the Company may use other approaches in determining fair value which may include estimates related to (i) dollar value per unit of mineral reserve/resource; (ii) cash-flow multiples; (iii) comparable transactions and (iv) market capitalization of comparable assets. Changes in any of the estimates used in determining the fair value of the royalty, stream and other interests could impact the impairment analysis.

During the year ended December 31, 2020, no impairment charges were recorded. During the year ended December 2019, the Company recorded an impairment charge of $14.2 million (Note 5b).

d)    Income Taxes

The interpretation of  new and existing tax laws or regulations in Canada, Australia, the United States of America, or any of the countries in which our royalty, stream and other interests are located or to which shipments of gold or silver are made or received requires the use of judgment. Differing interpretation or changes to these laws or regulations could result in an increase in the Company’s taxes, or other governmental charges, duties or impositions. In addition, the recoverability of deferred income tax assets, including expected periods of reversal of temporary differences and expectations of future taxable income, are assessed by management at the end of each reporting period and adjusted, as necessary, on a prospective basis. Refer to Note 13 for more information.

e)    Estimation Uncertainty and COVID-19

In March 2020, the World Health Organization declared a global pandemic related to COVID-19. The current and expected impacts on global commerce are anticipated to be far reaching. To date there has been significant volatility in the stock market and in the commodity and foreign exchange markets, restrictions on the conduct of business in many jurisdictions and the global movement of people and some goods has become restricted. In the current environment, estimates and assumptions about future production, commodity prices, exchange rates, discount rates, future capital expansion plans and associated production implications at the underlying mines in which the Company holds a royalty or stream interest are subject to greater variability than normal, which could significantly affect the valuation of our assets, both non-financial and financial. As at December 31, 2020, the Company has not recorded any adjustments related to the COVID-19 pandemic.

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ROYALTY AND STREAM TRANSACTIONS

12 Months Ended

Dec. 31, 2020

ROYALTY AND STREAM TRANSACTIONS

ROYALTY AND STREAM TRANSACTIONS

4.ROYALTY AND STREAM TRANSACTIONS

a)    During the Year Ended December 31, 2020

Newmont Portfolio Acquisition

In October 2020, the Company completed the Purchase and Sale Agreement (the “Agreement”) entered into with Newmont Corporation (“Newmont”) to acquire a portfolio of 11 royalties (the “Newmont Portfolio”). As consideration for the Newmont Portfolio, the Company issued 12,000,000 common shares and paid $15.0 million in cash and has agreed to make contingent cash payments of up to $15.0 million if certain production milestones at certain underlying assets are achieved within five years of closing the Agreement.

Certain of the royalties that were due to be transferred pursuant to the Agreement were subject to certain restrictions on transfer, including a ROFR that permitted the underlying property owner the right to repurchase the specific royalty for cash consideration. The Company has committed to dispose the 1.0% NSR royalty on the Yecora project for cash consideration of $1.5 million. The Yecora royalty has been classified as an asset held for sale at the time of acquisition and at December 31, 2020.

The fair value of the Newmont Portfolio acquired was determined to be $75.0 million. The Company used discounted cash flow models for near-term development assets and comparable transactions for exploration or other assets to determine the fair value of the individual assets within the Newmont Portfolio. The discounted cash flow models used discount rates of 4% to 15% depending on the stage and risk profile of the assets. Metal prices were based on analyst metal price projections and management expectations.

The excess of the fair value of the Newmont Portfolio of $75.0 million over the cash consideration paid of $15.0 million was allocated to the common shares.

The significant royalties acquired in the Newmont Portfolio include the 2.0% NSR royalty on the oxide and transitional ore of the Camino Rojo project owned by Orla Mining Ltd. and the 1.0% NSR royalty on the Cerro Blanco project owned by Bluestone Resources Inc. The Company also acquired nine development and exploration stage royalties, of which, there are four in the United States, two in Canada and three in Mexico.

Beta Hunt Royalty Amendment

In September 2020, Maverix closed an agreement with Karora Resources Inc. to reduce the gold royalty on the Beta Hunt mine from 7.5% to 4.75%, effective July 1, 2020 (the “Amendment”). Upon closing the Amendment, Maverix received $13.0 million for the reduction of its royalty interest in the Beta Hunt mine and received $2.5 million of the $5.0 million one-time bonus royalty (the “Bonus Royalty Payment”). The remaining $2.5 million of the Bonus Royalty Payment owed was received in January 2021 (Note 17). The Bonus Royalty Payment was recorded as deferred revenue and will be amortized into royalty revenue over approximately one and a half years from the effective date. The Company recorded and paid $4.3 million in current taxes and recognized a deferred tax asset of $0.9 million during the year ended December 31, 2020 as a result of the Amendment.

b)    During the Year Ended December 31, 2019

Kinross Portfolio Acquisition

In December 2019, the Company completed the Purchase and Sale Agreement (the “PSA”) entered into with Kinross Gold Corporation (“Kinross”) to acquire a portfolio of royalties (the “Kinross Portfolio”). As consideration, the Company issued 11,228,674 common shares and paid $25.0 million in cash.

The fair value of the Kinross Portfolio acquired was determined to be $74.0 million. The Company used discounted cash flow models for producing or near-term development assets and comparable transactions for exploration or other assets to determine the fair value of the individual assets within the Kinross Portfolio. The discounted cash flow models used discount rates of 5% to 10% depending on the stage and risk profile of the assets. Metal prices were based on analyst metal price projections and management expectations.

Certain of the royalties that were due to be transferred pursuant to the PSA were subject to certain restrictions on transfer, including a ROFR that permitted the underlying property owner the right to repurchase the specific royalty for cash on the same valuation as established by Kinross and Maverix. Prior to the Company completing the PSA, one of the underlying property owners provided notification they were exercising their ROFR. After the exercise of the ROFR, Maverix acquired a total of 24 royalties (the “Kinross Portfolio”) pursuant to the PSA and received aggregate total proceeds of $12.0 million in cash upon the completion of the ROFR transaction.

The excess of the fair value of the Kinross Portfolio of $74.0 million over the cash consideration paid of $25.0 million was allocated to the common shares.

Additional Royalty on Hope Bay

In August 2019, Maverix entered into an agreement to purchase an additional 1.5% NSR royalty on the Hope Bay mine in Nunavut, Canada, previously owned and operated by TMAC Resources Inc. (“TMAC”) for a cash payment of  $40.0 million (the “Additional Royalty”). Upon closing of the transaction, Maverix owned a combined 2.5% NSR royalty on the Hope Bay mine. Maverix was also entitled to receive an additional 0.25% NSR royalty until certain conditions with respect to the Additional Royalty were satisfied.

TMAC had the right to buy back the entire Additional Royalty for a cash payment of $50.0 million in the event of a change of control transaction of TMAC (as defined in the Additional Royalty agreement) that was announced prior to June 30, 2021. Subsequent to December 31, 2020, the buyback right for the entire Additional Royalty was exercised (Note 17).

El Mochito Stream

In March 2019, Maverix entered into an agreement to purchase 22.5% of the silver produced from Kirungu Corporation's ("Kirungu”) operating El Mochito mine (the “El Mochito Stream”). As consideration for the El Mochito Stream, Maverix made an upfront cash payment of $7.5 million. If certain production milestones are met, the El Mochito Stream percentage will decrease from 22.5% to 20% for the remaining life of the mine. Maverix will make ongoing cash payments to Kirungu equal to 25% of the spot price of silver for each ounce delivered.

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ROYALTY, STREAM AND OTHER INTERESTS

12 Months Ended

Dec. 31, 2020

ROYALTY, STREAM AND OTHER INTERESTS

ROYALTY, STREAM AND OTHER INTERESTS

5.ROYALTY, STREAM AND OTHER INTERESTS

a)   Carrying Amount

As at and for the year ended December 31, 2020:

		Cost			Accumulated Depletion
			Additions/						Carrying
	Country	Opening	(Disposals)	Ending	Opening	Depletion	Disposals	Ending	Amount
		$	$	$	$	$	$	$	$
Beta Hunt	AUS	14,875	(5,454)	9,421	(6,638)	(706)	2,581	(4,763)	4,658
Camino Rojo	MEX	—	40,173	40,173	—	—	—	—	40,173
Cerro Blanco	GTM	—	16,069	16,069	—	—	—	—	16,069
Cerro Casale	CHL	7,053	—	7,053	—	—	—	—	7,053
Converse	USA	10,039	—	10,039	—	—	—	—	10,039
DeLamar	USA	9,068	—	9,068	—	—	—	—	9,068
El Mochito	HON	7,710	24	7,734	(1,516)	(1,122)	—	(2,638)	5,096
Florida Canyon	USA	12,823	—	12,823	(2,189)	(712)	—	(2,901)	9,922
Gemfield	USA	8,799	—	8,799	—	—	—	—	8,799
Hope Bay	CAN	63,324	—	63,324	(1,950)	(1,671)	—	(3,621)	59,703
Karma	BFA	20,080	—	20,080	(4,062)	(1,992)	—	(6,054)	14,026
La Colorada	MEX	17,400	—	17,400	(3,262)	(1,171)	—	(4,433)	12,967
McCoy-Cove	USA	18,553	—	18,553	—	—	—	—	18,553
Moose River	CAN	3,700	—	3,700	(1,544)	(843)	—	(2,387)	1,313
Moss	USA	20,283	—	20,283	(1,617)	(3,480)	—	(5,097)	15,186
Mt Carlton	AUS	9,436	—	9,436	(4,638)	(2,104)	—	(6,742)	2,694
Omolon	RUS	10,076	17	10,093	(399)	(3,093)	—	(3,492)	6,601
San Jose	MEX	5,500	—	5,500	(2,302)	(591)	—	(2,893)	2,607
Silvertip	CAN	4,340	—	4,340	(454)	—	—	(454)	3,886
Vivien	AUS	3,301	—	3,301	(2,593)	(254)	—	(2,847)	454
Other	Various	83,375	17,394	100,769	(15,166)	(260)	—	(15,426)	85,343
Total(1)		329,735	68,223	397,958	(48,330)	(17,999)	2,581	(63,748)	334,210

⁽¹⁾ Royalty, stream and other interests includes non-depletable assets of $76.0 million and depletable assets of $258.2 million.

As at and for the year ended December 31, 2019:

		Cost			Accumulated Depletion				Carrying
	Country	Opening	Additions	Ending	Opening	Depletion	Impairment	Ending	Amount
		$	$	$	$	$		$	$
Amulsar	ARM	14,241	—	14,241	—	—	(14,241)	(14,241)	—
Beta Hunt	AUS	14,875	—	14,875	(4,886)	(1,752)	—	(6,638)	8,237
Cerro Casale	CHL	—	7,053	7,053	—	—	—	—	7,053
Converse	USA	10,039	—	10,039	—	—	—	—	10,039
DeLamar	USA	—	9,068	9,068	—	—	—	—	9,068
El Mochito	HON	—	7,710	7,710	—	(1,516)	—	(1,516)	6,194
Florida Canyon	USA	12,215	608	12,823	(1,516)	(673)	—	(2,189)	10,634
Gemfield	USA	8,799	—	8,799	—	—	—	—	8,799
Hope Bay	CAN	23,305	40,019	63,324	(772)	(1,178)	—	(1,950)	61,374
Karma	BFA	20,073	7	20,080	(2,346)	(1,716)	—	(4,062)	16,018
La Colorada	MEX	17,400	—	17,400	(2,338)	(924)	—	(3,262)	14,138
McCoy-Cove	USA	12,004	6,549	18,553	—	—	—	—	18,553
Moose River	CAN	3,700	—	3,700	(852)	(692)	—	(1,544)	2,156
Moss	USA	20,273	10	20,283	(70)	(1,547)	—	(1,617)	18,666
Mt Carlton	AUS	9,436	—	9,436	(3,622)	(1,016)	—	(4,638)	4,798
Omolon	RUS	—	10,076	10,076	—	(399)	—	(399)	9,677
San Jose	MEX	5,500	—	5,500	(1,748)	(554)	—	(2,302)	3,198
Silvertip	CAN	4,340	—	4,340	(101)	(353)	—	(454)	3,886
Vivien	AUS	3,293	8	3,301	(2,030)	(563)	—	(2,593)	708
Other	Various	39,504	29,630	69,134	(627)	(298)	—	(925)	68,209
Total(1)		218,997	110,738	329,735	(20,908)	(13,181)	(14,241)	(48,330)	281,405

⁽¹⁾ Royalty, stream and other interests includes non-depletable assets of $51.5 million and depletable assets of $229.9 million.

b)   Royalty interest impairment

In December 2019, Lydian International Limited (“Lydian”) announced it was granted creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”) in order to restructure its business and affairs. The CCAA filing, amongst other facts and circumstances, were considered indicators of  impairment. As a result of the Company’s review of the circumstances specific to its royalty payment agreement with Lydian, the Company recorded an impairment of $14.2 million.

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INVESTMENTS

12 Months Ended

Dec. 31, 2020

INVESTMENTS

INVESTMENTS

6.INVESTMENTS

As at and for the year ended December 31, 2020:

	Balance at						Exercise				Balance at
	December						and		Fair Value		December
	31, 2019		Additions		Disposals		Transfers		Adjustments		31, 2020
Short-term investments
Common shares(1)	$	—	$	8,205	$	(501)	$	7,020	$	3,466	$	18,190
Warrants(2)		—		8		—		(1,851)		1,891		48
Total short-term investments	$	—	$	8,213	$	(501)	$	5,169	$	5,357	$	18,238
Non-current investments
Common shares(1)	$	7,006	$	1,519	$	(1,505)	$	(7,020)	$	—	$	—
Convertible debenture(2)		—		1,000		—		—		—		1,000
Warrants(2)		142		—		—		(142)		—		—
Total non-current investments	$	7,148	$	2,519	$	(1,505)	$	(7,162)	$	—	$	1,000
Total investments	$	7,148	$	10,732	$	(2,006)	$	(1,993)	$	5,357	$	19,238

⁽¹⁾ Fair value adjustments recorded within Other comprehensive income (loss).

⁽²⁾ Fair value adjustments recorded within Net income (loss).

In December 2020, Northern Vertex Mining Corp. ("Northern Vertex") announced a merger with Eclipse Gold Mining Corporation and a concurrent CAD$20.0 million financing (the "Financing"). As part of the Financing, the Company agreed to exercise 19.5 million share purchase warrants at CAD$0.40 per common share of Northern Vertex and sell the underlying common shares received for CAD$0.50 per common share. The Financing closed subsequent to December 31, 2020 (Note 17).

In April 2020, the Company acquired a $1.0 million convertible debenture (the "Debenture"). The Debenture has a two year term, bears interest at 12% per annum and is convertible into up to 19.9% of the total issued and outstanding capital stock of Kirungu, the right to purchase an additional 3% of the silver from the operating El Mochito mine on the same terms as the existing El Mochito silver Stream, or a 0.3% NSR Royalty on all metals produced from any mining properties or projects owned by Kirungu.

As at and for the year ended December 31, 2019:

	Balance at								Balance at
	December 31,							Fair Value	December
	2018		Additions		Disposals		Adjustments		31, 2019
Common shares	$	4,224	$	3,597	$	—	$	(815)	$	7,006
Warrants		234		—		—		(92)		142
Total investments	$	4,458	$	3,597	$	—	$	(907)	$	7,148

Concurrent with the acquisition of the Additional Royalty (Note 4b), the Company subscribed for $3.0 million of TMAC common shares.

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CREDIT FACILITY

12 Months Ended

Dec. 31, 2020

CREDIT FACILITY

CREDIT FACILITY

7.CREDIT FACILITY

The Company amended and increased its revolving credit agreement to borrow up to $120 million (the “Credit Facility ") in 2019. Amounts drawn on the amended Credit Facility are subject to interest at LIBOR plus 2.00% to 3.00% per annum, and the undrawn portion is subject to a standby fee of 0.45% to 0.675% per annum, both of which are dependent on the Company’s leverage ratio (as defined in the Credit Facility agreement). During the year ended December 31, 2020, the Company paid approximately 2.9% (2019: 4.4%) on amounts drawn and 0.6% (2019: 0.5%) on the remaining undrawn portion. The Credit Facility is secured by the Company’s present and future acquired assets, matures in June 2023, and is extendable through mutual agreement between Maverix and the syndicate of lenders.

The following table summarizes the Company’s Credit Facility as at December 31, 2020  and 2019 and changes during the years then ended:

	Credit Facility
Balance at December 31, 2018	$	12,300
Proceeds		62,000
Repayment		(5,300)
Balance at December 31, 2019		69,000
Proceeds		20,000
Repayment		(57,000)
Balance at December 31, 2020	$	32,000

Amortization of the deferred financing costs related to the Credit Facility for the years ended December 31, 2020 and 2019 were $0.3 million and $0.3 million, respectively. As at December 31, 2020 the Company was in compliance with all of the covenants related to the Credit Facility.

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SHARE CAPITAL

12 Months Ended

Dec. 31, 2020

SHARE CAPITAL

SHARE CAPITAL

8.SHARE CAPITAL

a)Authorized, Issued and Outstanding shares

The Company is authorized to issue an unlimited number of common shares without par value and preferred shares. No preferred shares have been issued.

b)Share Purchase Warrants

The following table summarizes warrants which were outstanding and exercisable as at December 31, 2020 and 2019 and changes during the years then ended:

		Weighted average
	Number of warrants	exercise price
	outstanding	per warrant
Balance at December 31, 2018 and 2019	18,250,000	$	2.41
Exercised	(8,250,000)	$	1.89
Balance at December 31, 2020	10,000,000	$	2.84

In June 2020, 8,250,000 common share purchase warrants were exercised for gross proceeds of $15.6 million to the Company. The common share price was $4.29 per share at the time the warrants were exercised.

A listing of the Company’s outstanding warrants as at December 31, 2020 is presented below:

Number outstanding	Exercise Price		Expiry Date
5,000,000	$	2.41	December 23, 2021
5,000,000	$	3.28	June 29, 2023
10,000,000

c)Share Based Payments - Share Option Plan

The Company adopted a stock option and compensation share plan (the “Plan”), which provides that the Board of Directors may, at its discretion, grant directors, officers, employees and consultants, either, (i) common shares of the Company or (ii) non-transferable stock options to purchase common shares of the Company, each set at a price determined by the fair market value of the shares at the date immediately preceding the date on which the option is granted or the common share is issued. Under the Plan, the aggregate number of common shares of the Company reserved for issuance is 7,500,000 common shares. If any option granted under the Plan expires or terminates for any reason in accordance with the terms of the Plan without being exercised, that option shall again be available for the purpose of the Plan. All stock options and incentive shares issued under the Plan vest over a period determined by the Board of Directors. Incentive stock options issued under the Plan expire up to five years after issuance.

The following table summarizes stock options which were outstanding and exercisable as at December 31, 2020 and 2019 and changes during the years then ended:

		Weighted average
	Number of Options	exercise price per option
	Outstanding	(CAD$)
Balance at December 31, 2018	3,176,518	$	2.28
Granted	1,211,565	$	5.38
Exercised	(508,964)	$	1.62
Forfeited	(45,000)	$	5.18
Balance at December 31, 2019	3,834,119	$	3.31
Granted	953,255	$	5.21
Exercised	(650,580)	$	1.25
Forfeited	(67,910)	$	5.17
Balance at December 31, 2020	4,068,884	$	4.05
Options which have vested and are exercisable as at December 31, 2020	2,600,257	$	3.35

A summary of the Company’s outstanding stock options as at December 31, 2020 is presented below:

	Exercise Price
Number outstanding	(CAD$)		Expiry Date
285,750	$	1.08	April 10, 2021
722,408	$	2.80	April 28, 2022
156,081	$	2.80	May 30,2022
852,735	$	3.30	May 31, 2023
848,252	$	5.18	April 3, 2024
50,000	$	6.48	August 9, 2024
268,313	$	5.83	December 12,2024
855,345	$	5.17	March 10, 2025
30,000	$	6.54	September 24, 2025
4,068,884

The following are the weighted-average assumptions used in the BSM to estimate the fair value of stock options granted for the years ended December 31, 2020 and 2019:

	Years ended
	December 31
	2020		2019
Risk-free interest rate	0.5	%	1.6	%
Expected volatility	45	%	47	%
Expected life	3 years		3 years
Expected dividend yield	1.1	%	0.2	%

The weighted-average common share price during the years ended December 31, 2020 and 2019, were $4.78 and  $4.13 per share at the time the options were exercised, respectively. The weighted average remaining contractual life of the options as at December 31, 2020 was 2.73 years (2019: 3.04 years).

d)Share Based Payments — RSU Plan

The Company adopted a RSU Plan, which provides that the Board of Directors may, at its discretion, grant directors, officers, employees and consultants, non-transferable RSUs. Each RSU is set at a price determined by the fair market value of the shares at the date immediately preceding the date on which the RSU is granted. Under the RSU Plan, the aggregate number of common shares of the Company reserved for issuance is 3,000,000 common shares. If any RSU granted under the RSU Plan expires or terminates for any reason in accordance with the terms of the RSU Plan without vesting, that RSU shall again be available for the purpose of the Plan. All RSUs issued under the Plan vest after three years, unless otherwise determined on the grant date by the Board of Directors. The Board of Directors has the discretion to settle the vested RSUs in cash or equity.

The following table summarizes RSUs which were outstanding as at December 31, 2020 and 2019 and the changes during the years then ended:

		Weighted average fair
	Number of  RSUs	value per RSU
	Outstanding	(CAD$)
Balance at December 31, 2018	—		—
Granted	97,027	$	5.82
Balance at December 31, 2019	97,027	$	5.82
Granted	105,822	$	5.57
Forfeited	(10,155)	$	5.17
Balance at December 31, 2020	192,694	$	5.72

e)    Dividends

During the year ended December 31, 2020, the Company declared four and paid five separate dividends of $0.01 per common share. During the year ended December 31, 2019, the Company declared one dividend of $0.01 per common share.

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OPERATING EXPENSES BY NATURE

12 Months Ended

Dec. 31, 2020

OPERATING EXPENSES BY NATURE

OPERATING EXPENSES BY NATURE

9.OPERATING EXPENSES BY NATURE

	Years ended
	December 31
	2020		2019
Compensation and benefits	$	4,504	$	3,001
Corporate administration		969		864
Listing and filing fees		242		646
Professional fees		736		408
Amortization		147		122
Operating expenses before share-based compensation		6,598		5,041
Share-based compensation		1,688		1,666
Total operating expenses	$	8,286	$	6,707

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EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2020

EARNINGS PER SHARE

EARNINGS PER SHARE

10.EARNINGS PER SHARE

Basic and diluted earnings (loss) per share is calculated based on the following:

	Years ended
	December 31
	2020		2019
Net income (loss)	$	23,719	$	(7,667)
Basic weighted average number of shares		126,730,500		108,363,047
Basic earnings (loss) per share	$	0.19	$	(0.07)
Effect of dilutive securities
Warrants		7,431,541		—
Stock options		1,752,315		—
RSUs		61,183		—
Diluted weighted average number of common shares		135,975,539		108,363,047
Diluted  earnings (loss) per share	$	0.17	$	(0.07)

The following table lists the number of warrants, stock options and RSUs which were excluded from the computation of diluted earnings per share because the exercise prices plus the unamortized share-based compensation per share exceeded the average market value of the common shares during the year ended December 31, 2020, or the Company was in a net loss position during the year ended December 31, 2019.

	Years ended
	December 31
	2020	2019
Warrants	—	18,250,000
Stock options	58,033	3,834,119
RSUs	—	97,027

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SUPPLEMENTAL CASH FLOW INFORMATION

12 Months Ended

Dec. 31, 2020

SUPPLEMENTAL CASH FLOW INFORMATION

SUPPLEMENTAL CASH FLOW INFORMATION

11.SUPPLEMENTAL CASH FLOW INFORMATION

	Years ended
	December 31
Changes in non-cash working capital:	2020		2019
Accounts receivable	$	(6,393)	$	(2,484)
Prepaid expenses and other		(170)		(215)
Trade payables and other		(297)		(1,004)
Dividend payable		—		1,196
Deferred revenue		3,333		—
Changes in non-cash working capital	$	(3,527)	$	(2,507)
Significant non-cash transactions:
Equity issued for Newmont and Kinross Portfolios  (Note 4)	$	60,000	$	49,000
Settlement of receivables in equity investments		1,519		597
Cash and cash equivalents at the end of the year:
Cash at bank	$	7,760	$	4,828

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RELATED PARTY DISCLOSURES

12 Months Ended

Dec. 31, 2020

RELATED PARTY DISCLOSURES

RELATED PARTY DISCLOSURES

12.RELATED PARTY DISCLOSURES

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, including any director of the Company. Compensation for key management personnel of the Company was as follows:

	Years ended
	December 31
	2020		2019
Compensation and benefits	$	3,632	$	2,530
Share-based compensation		1,532		1,471
Total compensation	$	5,164	$	4,001

During the years ended December 31, 2020 and 2019, the Company purchased $2.3 million and $2.4 million, respectively, of refined gold from Pan American Silver Corp. (“Pan American”) at a price of $650 per ounce purchased under its La Colorada gold Stream agreement (Note 16). As a consequence of its shareholding and other factors, Pan American is deemed to have significant influence over the Company.

The Company completed the acquisition of the Newmont Portfolio during the year ended December 31, 2020 (Note 4a). As a consequence of its shareholding and other factors, Newmont is deemed to have significant influence over the Company.

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INCOME TAXES

12 Months Ended

Dec. 31, 2020

INCOME TAXES

INCOME TAXES

13.INCOME TAXES

Income tax recognized in net income is comprised of the following:

	Years ended
	December 31
	2020		2019
Current tax expense	$	7,392	$	1,183
Deferred tax recovery		(1,332)		—
Income tax expense	$	6,060	$	1,183

The income tax expense differs from the amount that would result from applying the federal and provincial income tax rates to the income before income taxes due to the following:

	Years ended
	December 31
	2020			2019
Income (loss) before income taxes	$	29,779		$	(6,484)
Statutory tax rate		27	%		27	%
Expected  income tax expense (recovery)	$	8,040		$	(1,751)
Increase (decrease) due to:
Foreign tax rate differences		583			210
Non-deductible expenses		448			318
Withholding taxes		548			319
Change in unrecognized temporary differences		(2,970)			2,443
Recognition of temporary differences		(1,332)			—
Effect of true-ups in prior year temporary and other differences		743			(356)
Income tax expense	$	6,060		$	1,183

Deferred tax assets and liabilities

As at December 31, 2020, the Company has recognized gross deferred tax assets of $15.6 million related to Canadian non-capital losses (December 31, 2019: $5.5 million). These have been partially offset by $14.8 million of deferred tax liabilities primarily related to the Company’s royalty, stream and other interests (December 31, 2019: $4.7 million).

The following table summarizes the Company’s deferred income tax asset as at December 31, 2020 and 2019 and the changes during the years then ended:

	Years ended
	December 31
	2020		2019
Balance, beginning of the year	$	823	$	823
Recognized in net income (loss)		1,332		—
Recognized in other comprehensive income (loss)		(402)		—
Balance, end of the year	$	1,753	$	823

The aggregate amount of deductible temporary differences for which deferred income tax assets have not been recognized are as follows:

	December 31, 2020		December 31, 2019
Royalty, stream and other interests	$	2,492	$	2,355
Financing costs and other		859		130
Non-capital losses		5,430		18,470
Total	$	8,781	$	20,955

As at December 31, 2020, the Company has deductible Canadian non-capital tax losses of $58.9 million that expire between 2038 to 2040.

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SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2020

SEGMENT INFORMATION

SEGMENT INFORMATION

14.SEGMENT INFORMATION

For the year ended December 31, 2020:

				Costs of		Gain on	Income	Cash
				sales,		amendment	(loss)	from
	Primary	Royalty		excluding		of royalty	before	(used in)
	Product	revenue	Sales	depletion	Depletion	interest	taxes	operations
		$	$	$	$	$	$	$
Beta Hunt (AUS)	Gold	8,635	—	—	(706)	9,291	17,220	9,533
El Mochito (HON)	Silver	—	3,716	(881)	(1,122)	—	1,713	2,836
Florida Canyon (USA)	Gold	2,551	—	—	(712)	—	1,839	2,638
Hope Bay (CAN)	Gold	5,355	—	—	(1,671)	—	3,684	2,998
Karma (BFA)	Gold	2,946	—	—	(1,992)	—	954	2,636
La Colorada (MEX)	Gold	—	6,347	(2,345)	(1,171)	—	2,831	4,002
Moose River (CAN)	Gold	1,586	—	—	(843)	—	743	1,521
Moss (USA)	Silver	—	8,929	(1,794)	(3,480)	—	3,655	7,135
Mt Carlton (AUS)	Gold	2,469	—	—	(2,104)	—	365	2,112
Omolon (RUS)	Gold	4,792	—	—	(3,093)	—	1,699	3,169
San Jose (MEX)	Silver	1,989	—	—	(591)	—	1,398	1,736
Silvertip (CAN)	Silver	—	—	—	—	—	—	189
Vivien (AUS)	Gold	1,839	—	—	(254)	—	1,585	1,596
Other (Various)	Various	527	—	—	(260)	—	267	670
Total segments		32,689	18,992	(5,020)	(17,999)	9,291	37,953	42,771
Operating expenses		—	—	—	—	—	(8,286)	(6,451)
Foreign exchange gain		—	—	—	—	—	664	380
Unrealized gain on warrants		—	—	—	—	—	1,891	—
Finance expense		—	—	—	—	—	(2,456)	—
Income taxes paid		—	—	—	—	—	—	(4,076)
Other		—	—	—	—	—	13	376
Total corporate		—	—	—	—	—	(8,174)	(9,771)
Consolidated total		32,689	18,992	(5,020)	(17,999)	9,291	29,779	33,000

For the year ended December 31, 2019:

				Costs of
				sales,		Royalty		Cash from
	Primary	Royalty		excluding		interest	Income (loss)	(used in)
	Product	revenue	Sales	depletion	Depletion	impairment	before taxes	operations
		$	$	$	$	$	$	$
Amulsar (ARM)	Gold	—	—	—	—	(14,241)	(14,241)	—
Beta Hunt (AUS)	Gold	4,786	—	—	(1,752)	—	3,034	5,001
El Mochito (HON)	Silver	—	3,626	(874)	(1,516)	—	1,236	2,752
Florida Canyon (USA)	Gold	2,101	—	—	(673)	—	1,428	1,610
Hope Bay (CAN)	Gold	3,124	—	—	(1,178)	—	1,946	1,761
Karma (BFA)	Gold	2,305	—	—	(1,716)	—	589	1,868
La Colorada (MEX)	Gold	—	5,216	(2,443)	(924)	—	1,849	2,773
Moose River (CAN)	Gold	1,124	—	—	(692)	—	432	1,023
Moss (USA)	Silver	—	3,073	(610)	(1,547)	—	916	2,463
Mt Carlton (AUS)	Gold	2,941	—	—	(1,016)	—	1,925	3,210
Omolon (RUS)	Gold	562	—	—	(399)	—	163	—
San Jose (MEX)	Silver	1,471	—	—	(554)	—	917	1,377
Silvertip (CAN)	Silver	941	—	—	(353)	—	588	897
Vivien (AUS)	Gold	2,070	—	—	(563)	—	1,507	2,093
Other (Various)	Various	372	—	—	(298)	—	74	272
Total segments		21,797	11,915	(3,927)	(13,181)	(14,241)	2,363	27,100
Operating expenses		—	—	—	—	—	(6,707)	(4,919)
Foreign exchange gain		—	—	—	—	—	(227)	(160)
Unrealized gain on warrants		—	—	—	—	—	(92)	—
Finance expense		—	—	—	—	—	(1,813)	—
Income taxes paid		—	—	—	—	—	—	(1,230)
Other		—	—	—	—	—	(8)	170
Total corporate		—	—	—	—	—	(8,847)	(6,139)
Consolidated total		21,797	11,915	(3,927)	(13,181)	(14,241)	(6,484)	20,961

Non-current Assets by Geographical Region:

	December 31, 2020		December 31, 2019
North America
USA	$	107,064	$	101,554
Canada		73,820		74,842
Mexico		64,847		20,936
South & Central America
Guatemala		16,069		—
Chile		10,073		10,073
Peru		8,400		8,400
Dominican Republic		5,160		6,195
Honduras		5,097		5,160
Other
Burkina Faso		14,156		16,148
Australia		9,152		15,089
Russia		6,601		9,677
Cote d’Ivoire		4,030		4,030
Ghana		3,527		3,527
Argentina		3,200		3,200
Various		3,974		3,946
Total(1)	$	335,170	$	282,777

⁽¹⁾ Includes royalty, stream, and other interests (Note 5) and deferred financing costs and other.

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FINANCIAL RISK MANAGEMENT

12 Months Ended

Dec. 31, 2020

FINANCIAL RISK MANAGEMENT

FINANCIAL RISK MANAGEMENT

15.    FINANCIAL RISK MANAGEMENT

The Company has exposure to a variety of financial risks from its use of financial instruments. This note presents information about the Company's exposure to each of these risks, the Company's objectives, policies and processes for measuring and managing risk, and the Company's management of capital.

Capital Risk Management

The Company’s primary objective when managing capital is to maximize returns for its shareholders by growing its asset base through accretive acquisitions of royalties, streams and other interests, while optimizing its capital structure by balancing debt and equity. At December 31, 2020, the capital structure of the Company consists of $341.0 million (December 31, 2019: $241.7 million) of total equity, comprising of share capital, reserves, accumulated other comprehensive income, and retained earnings (deficit), and $32.0 million (December 31, 2019: $69.0 million) of drawn Credit Facility. The Company was not subject to any externally imposed capital requirements with the exception of complying with certain covenants under the Credit Facility (Note 7). The Company is in compliance with its debt covenants at December 31, 2020.

Credit Risk

Credit risk is the risk of potential loss to the Company if the counterparty to a financial instrument fails to meet its contractual obligations. The Company's credit risk is primarily attributable to its liquid financial assets including cash and cash equivalents and accounts receivables in the ordinary course of business. In order to mitigate its exposure to credit risk, the Company maintains its cash and cash equivalents in several high-quality financial institutions and closely monitors its accounts receivable balances. The Company’s accounts receivables are subject to the credit risk of the counterparties who own and operate the mines underlying Maverix’s royalty portfolio.

Currency Risk

Financial instruments that impact the Company’s net income due to currency fluctuations include: cash and cash equivalents, accounts receivable, investments, and trade payables and other denominated in Canadian and Australian dollars. Based on the Company’s Canadian and Australian dollar denominated monetary assets and liabilities at December 31, 2020, a 10% increase (decrease) of the value of the Canadian and Australian dollar relative to the USD would increase (decrease) net income by $0.3 million and other comprehensive income by $1.8 million, respectively.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due. The Company’s approach to managing liquidity is to ensure it will have sufficient liquidity to meet liabilities when due. In managing liquidity risk, the Company takes into account anticipated cash flows from operations, holding of cash and cash equivalents, and the amount available under the Credit Facility. As at December 31, 2020, the Company had cash and cash equivalents of $7.8 million (December 31, 2019: $4.8 million) and working capital of $35.1 million (December 31, 2019: $19.9 million). In addition, at December 31, 2020 the Company had $88.0 million available under its Credit Facility (Note 7).

Other Risks

The Company is exposed to equity price risk as a result of holding common shares in other mining companies with a combined fair market value as at December 31, 2020 of $18.2 million (December 31, 2019: $7.1 million) (Note 6). The equity prices of investments are impacted by various underlying factors including commodity prices and the volatility in global markets as a result of COVID-19 and the daily exchange traded volume of the equity may not be sufficient for the Company to liquidate its position in a short period of time without potentially affecting the market value of the equity. Based on the Company’s investments held as at December 31, 2020, a 10% increase (decrease) in the equity prices of these investments would increase (decrease) other comprehensive income by $1.8 million.

Fair Value Measurements

The fair value hierarchy establishes three levels to classify the inputs of valuation techniques used to measure fair value. The three levels of the fair value hierarchy are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Investments in common shares held that have direct listings on an exchange are classified as Level 1.

Level 2: Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liabilities.

Level 3: Prices or valuation techniques that require inputs that are both significant to fair value measurement and unobservable (supported by little or no market activity).

The following table summarizes the Company's financial assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at December 31, 2020 and December 31, 2019. In accordance with IFRS 13, Fair Value Measurements, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	As at December 31, 2020						As at December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Common shares	$	18,190	$	—	$	—	$	7,006	$	—	$	—
Warrants		—		48		—		—		142		—
Convertible debenture		—		—		1,000		—		—		—
Total	$	18,190	$	48	$	1,000	$	7,006	$	142	$	—

The fair values of the royalty, stream and other interests acquired through issuance of equity instruments were determined by a market approach using unobservable inputs into discounted cash flow projections and comparable transactions. As a result, for the years ending December 31, 2020 and 2019, the acquisition date fair values of royalty and other interests designated as Level 3 fair value measurements were $75.0 million and $74.0 million, respectively.

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CONTRACTUAL OBLIGATIONS

12 Months Ended

Dec. 31, 2020

CONTRACTUAL OBLIGATIONS

CONTRACTUAL OBLIGATIONS

16.CONTRACTUAL OBLIGATIONS

In connection with its Streams, the Company has committed to purchase the following:

	Percent of		Per ounce cash payment:
	life of		Lesser of amount below and the then
	mine		prevailing market price
	production		(unless otherwise noted)
Gold Stream interests
La Bolsa	5	%	$450
La Colorada	100	%	$650
Silver Stream interests
El Mochito	22.5	%(1)	25% of silver spot price
Moss	100	%(2)	20% of silver spot price

⁽¹⁾ If 3.0 million ounces of silver are delivered to Maverix prior to April 1, 2022, Maverix’s silver purchase entitlement will be 20% of life of mine silver production.

⁽²⁾ After 3.5 million ounces of silver are delivered, Maverix’s silver purchase entitlement will be 50% of the remaining life of mine silver production.

In connection with the acquisition of the Silvertip Royalty in 2017, the Company may issue an additional 1,400,000 common shares of the Company when the Silvertip mine achieves commercial production and a cumulative throughput of 400,000 tonnes of ore through the processing plant is achieved.

In connection with the Newmont Portfolio acquisition, the Company has agreed to make certain contingent cash payments if certain production milestones at certain assets are achieved (Note 4a).

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SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2020

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

17.    SUBSEQUENT EVENTS

Hope Bay

In February 2021, Agnico Eagle Mines Limited (“Agnico”) completed the acquisition of TMAC, the previous owner of the Hope Bay mine. Concurrent with the acquisition, Agnico provided notice to the Company and exercised the buyback right with respect to 1.5% of the total 2.5% NSR royalty the Company owned on the Hope Bay mine for $50.0 million. The Company has retained a 1% NSR royalty on the Hope Bay mine that is not subject to any reductions.

Investment Proceeds

In February 2021, Northern Vertex closed its Financing (Note 6) and the Company received $7.7 million in proceeds for the sale of its Northern Vertex common shares.

Royalty Proceeds

In January 2021, the Company received the remaining $2.5 million owed under the Beta Hunt royalty Amendment (Note 4a).

Exercise of Stock Options

Subsequent to December 31, 2020, a total of 589,351 stock options were exercised with a weighted-average exercise price of CAD$2.32.

Credit Facility Payment

In February 2021, the Company repaid $32.0 million, leaving the full $120.0 million available under the Company’s Credit Facility.

Dividend Declared

In February 2021, the Board of Directors of the Company declared a quarterly dividend of $0.01 per common share payable on March 15, 2021 to shareholders of record as of the close of business on February 26, 2021.

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2020

SIGNIFICANT ACCOUNTING POLICIES

Statement of Compliance

a)Statement of Compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standard Board (“IASB”).

Basis of Preparation

b)Basis of Preparation

These consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments, which are measured at fair value. The consolidated financial statements are presented in United States dollars ("USD") (Note 2g), unless otherwise noted.

Principles of Consolidation

c)    Principles of Consolidation

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including its principal subsidiaries Maverix Metals (Australia) Pty Ltd. and Maverix Metals (Nevada) Inc. Subsidiaries are fully consolidated from the date the Company obtains control and continues to be consolidated until the date that control ceases. Control is achieved when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

All intercompany balances, transactions, revenues and expenses have been eliminated on consolidation.

Royalty, Stream and Other Interests

d)    Royalty, Stream and Other Interests

Royalty, stream and other interests consist of acquired royalty, stream and other interests. These interests are recorded at cost and capitalized as tangible assets with finite lives. They are subsequently measured at cost less accumulated depletion and accumulated impairment losses, if any. Project evaluation expenses that are not related to a specific royalty or stream asset are expensed in the period incurred.

Producing royalty and stream interests are depleted using the units-of-production method over the life of the property to which the interest relates, which is estimated using available information of proven and probable reserves and the portion of resources expected to be classified as mineral reserves at the mine corresponding to the specific agreement.

On acquisition of a royalty or stream interest, an allocation of its fair value may be attributed to the exploration potential of the interest (non-depletable interest) and is accounted for in accordance with IFRS 6, Exploration and Evaluation of Mineral Resources (“IFRS 6”). Once the technical feasibility, commercial viability and a development decision have been established, the value of the asset is reclassified and accounted for in accordance with IAS 16, Property, Plant and Equipment (“IAS 16”). The exploration and evaluation asset is subject to an impairment test prior to reclassification in accordance with IFRS 6.

Impairment of Royalty, Stream and Other Interests

e)    Impairment of Royalty, Stream and Other Interests

Evaluation of the carrying values of each mineral interest is undertaken when events or changes in circumstances indicate that the carrying values may not be recoverable. Impairment is assessed at the level of cash-generating units, which is the smallest identifiable group of assets that generates cash inflows and largely independent of the cash inflows from other assets. This is usually at the individual royalty, stream, or other interest level for each property from which cash inflows are generated.

An impairment loss is recognized for the amount by which the asset’s carrying value exceeds its recoverable amount, which is the higher of its fair value less costs of disposal (“FVLCD”) and its value in use (“VIU”). Estimated future cash flows are calculated using estimated production, sales prices and a discount rate. Estimated future production is determined using current reserves and the portion of resources expected to be classified as mineral reserves, as well as exploration potential expected to be converted into resources or reserves. Estimated sales prices are determined by reference to an average of long-term metal price forecasts by research analysts and management’s expectations. The discount rate is estimated using an average discount rate incorporating research analyst views used to value precious metal royalty and streaming companies. All inputs used are those that an independent market participant would consider appropriate. In addition, the Company may use other market approaches for determining the recoverable amount which may include an estimate of (i) dollar value per unit of mineral reserve/resource; (ii) cash-flow multiples; (iii) comparable transactions or (iv) market capitalization of comparable assets.

An assessment is made at each reporting period if there is any indication that a previous impairment loss may no longer exist or has decreased. If indications are present, the carrying value of the royalty or stream interest is increased to the revised estimate of its recoverable amount to the extent that the increased carrying amount does not exceed the carrying amount net of depletion that would have been determined had no impairment loss been recognized for the royalty or stream interest in previous periods.

Royalty and stream interests classified as exploration and evaluation assets are assessed for impairment whenever indicators of impairment exist in accordance with IFRS 6. An impairment loss is recognized for the amount by which the asset’s carrying value exceeds its recoverable amount.

Revenue Recognition

f)    Revenue Recognition

Revenue is comprised of revenue earned from royalty, stream and other interests. The Company recognizes revenue upon the transfer of control of the relevant commodity to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those commodities.

For Royalty interests, revenue recognition occurs when control of the relevant commodity is transferred to the end customer by the operator of the royalty property. Revenue is measured at the fair value of the consideration received or receivable when management can reliably estimate the amount, pursuant to the terms of the royalty agreement. In some instances, the Company will not have access to sufficient information to make a reasonable estimate of consideration to which it expects to be entitled and, accordingly, revenue recognition is deferred until management can make a reasonable estimate. Differences between estimates and actual amounts are adjusted and recorded in the period that the actual amounts are known.

For Streams, revenue recognition occurs when the relevant commodity received from the stream operator is delivered by the Company to its third-party customers. Revenue is measured at the fair value of the consideration received or receivable when management can reliably estimate the amount, pursuant to the terms of the sales contract.

Foreign Currency Translation

g)    Foreign Currency Translation

The functional currency of the Company and its subsidiaries is the principal currency of the economic environment in which they operate. The functional currency of the Company and its significant wholly-owned subsidiaries is the USD.

Foreign currency transactions, including revenues and expenses, are translated into the functional currency at the rate of exchange prevailing on the date of each transaction or valuation when items are re-measured. Monetary assets and liabilities denominated in currencies other than the operation’s functional currencies are translated into the functional currency at exchange rates in effect at the balance sheet date. Foreign exchange gains and losses resulting from the settlement of those transactions and from period-end translations are recognized in the consolidated statement of income (loss).

Effective January 1, 2020, the Company elected to change its presentation currency from the Canadian dollar ("CAD") to USD. The change in presentation currency is to better reflect the Company's business activities and to improve investors' ability to compare the Company's financial results with other publicly traded precious metals royalty and streaming companies. The Company has applied the change to USD presentation currency retrospectively and restated the comparative financial information as if the new presentation currency had always been the Company's presentation currency.

Financial Instruments

h)    Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, right of first refusal ("ROFR") receivable, investments, trade and other payables, and the credit facility. All financial instruments are initially recorded at fair value and designated as follows:

Cash and cash equivalents include cash on account and short-term deposits with maturities from the date of acquisition of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. Cash and cash equivalents are subsequently measured at amortized cost using the effective interest rate method.

Trade receivables relate to amounts received from sales of refined gold and silver and royalty revenue. ROFR receivable relates to the underlying right of a property owner to repurchase a specific royalty (Note 4). These receivables are non-interest bearing and are recognized at fair value and are subsequently measured at amortized cost. We have applied the simplified approach to determining expected credit losses, which requires expected lifetime losses to be recognised upon initial recognition of the receivables.

Investments in common shares are designated as fair value through profit and loss (“FVTPL”) unless they are irrevocably designated, on an individual basis, as fair value through other comprehensive income (“FVTOCI”). Investment transactions are recognized on the trade date with transaction costs included in the underlying balance. Fair values are determined by reference to quoted market prices at the statement of financial position date. 

When investments in common shares designated as FVTOCI are disposed of, the cumulative gains and losses recognized in other comprehensive income are not recycled to the consolidated statement of income (loss) and remain within equity. Dividends received are recognized in income and these investments are not assessed for impairment.

The consideration for investments in units including common shares and share purchase warrants are allocated on a pro-rata basis, based on relative fair values at the date of issuance. The fair value of common shares are based on the market closing price. The fair value of share purchase warrants is determined using the quoted market price or if the warrants are not traded, using the Black-Scholes Model (“BSM”) as of the date of issuance.

Investments in warrants are classified as FVTPL. These warrants are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized as a component of net income (loss).

Trade and other payables and the credit facility are initially recorded at fair value, less transaction costs. These financial liabilities are subsequently measured at amortized cost, calculated using the effective interest rate method.

Inventory

i)    Inventory

When refined gold or silver is delivered to the Company under a Stream agreement it is initially recorded as inventory. The amount recognized as inventory includes both the cash payment and the related depletion associated with the underlying Stream interest. At such time the inventory is sold, the amounts recognized in inventory are recorded as cost of sales and depletion.

Income taxes

j)    Income taxes

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used are those that are substantively enacted at the reporting date.

Deferred income taxes are provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for accounting. The change in the net deferred income tax asset or liability is included in income, except for deferred income tax relating to equity items which are recognized directly in equity. The income tax effects of differences in the periods when revenue and expenses are recognized in accordance with the Company's accounting practices, and the periods they are recognized for income tax purposes are reflected as deferred income tax assets or liabilities. Deferred income tax assets and liabilities are measured using the substantively enacted statutory income tax rates which are expected to apply to taxable income in the years in which the assets are realized or the liabilities settled. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available for utilization. Temporary differences arising on the initial recognition of assets or liabilities that affect neither accounting nor taxable profit are not recognized.

Deferred income tax assets and liabilities are offset only if a legally enforceable right exists to offset current tax assets against liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on the same taxable entity and are intended to be settled on a net basis.

The determination of current and deferred taxes requires interpretations of tax legislation, estimates of expected timing of reversal of deferred tax assets and liabilities, and estimates of future earnings.

Share Capital and Share Purchase Warrants

k)    Share Capital and Share Purchase Warrants

Common shares are classified as equity. Incremental costs directly attributable to the issuance of shares are recognized as a deduction from the proceeds in equity in the period where the transaction occurs.

The fair value of common shares issued for goods and services is based on the fair value of the goods or services received unless the fair value cannot be readily determined. If the fair value cannot be readily determined, the Company uses the market closing price on the date the shares are issued, while the fair value of share purchase warrants is estimated using the quoted market price or if the warrants are not traded, using the BSM as of the date of issuance.

Share purchase warrants issued with an exercise price denominated in the Company’s functional currency (USD) are considered equity instruments with the consideration received reflected within shareholders’ equity under the classification of share purchase warrants reserve. Upon exercise, the original consideration is reallocated from share purchase warrants reserve to issued share capital along with the associated exercise price.

Earnings Per Share

l)    Earnings Per Share

Basic earnings per share is computed by dividing the net income attributable to common shareholders by the weighted average number of common shares issued and outstanding during the period. Diluted earnings per share reflects the effect of all potentially dilutive common share equivalents, which includes dilutive share options, restricted share units ("RSUs") and warrants computed using the treasury stock method.

Share Based Payments

m)    Share Based Payments

The Company recognizes share based compensation expense for share purchase options, RSUs and common shares granted to directors, officers, employees and consultants under the Company’s equity-based incentive plans based on the fair values at the date of grant.

Share purchase options

The fair value of share purchase options is determined using the BSM, with market related inputs as of the grant date. The BSM requires management to estimate the expected volatility, expected term, risk-free rate of return over the term, expected dividends, and the number of equity instruments expected to ultimately vest. Volatility is estimated using the historic stock price of the Company and similar listed entities, the expected term is estimated using historical exercise data of the Company and similar listed entities, and the number of equity instruments expected to vest is estimated using historical forfeiture data.

The fair values of share purchase options at the date of grant are expensed over the vesting periods with a corresponding increase to equity. Share purchase options with graded vesting schedules are accounted for as separate grants with different vesting periods and fair values.

Restricted share units

The fair value of RSUs is determined by the market value of the underlying shares at the date of the grant. Under the Company’s RSU Plan, the Board of Directors has the discretion to settle the vested RSUs in cash or equity. As the Company does not have a present obligation to settle the issued RSUs in cash, the RSUs issued have been treated as equity-settled instruments. The fair values of RSUs at the date of grant are expensed over the vesting periods with a corresponding increase to equity. At the end of each reporting period, the Company re-assesses its estimates of the number of awards that are expected to vest and recognizes the impact of any revisions to this estimate in equity.

Common shares

The fair value of common shares granted is determined by the market value of the underlying shares at the date of the grant. The fair value of the common shares is expensed with a corresponding increase to equity.

Related Party Transactions

n)    Related Party Transactions

Parties are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject to common control or significant influence. A transaction is considered a related party transaction when there is a transfer of resources or obligations between related parties.

Segment Reporting

o)    Segment Reporting

The Company’s reportable operating segments are components of the Company’s business where discrete financial information is available and which are evaluated on a regular basis by the Company’s Chief Executive Officer, who is the Company’s chief operating decision maker, for the purpose of assessing performance. An operating segment is a component of an entity that engages in business activities, operating results are reviewed with respect to resource allocation and for which discrete financial information is available. The Company’s executive head office and general corporate administration (including finance expenses) are included within ‘Corporate’ to reconcile the reportable segments to the consolidated financial statements. Refer to Note 14 for summary of the Company’s segmented information.

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ROYALTY, STREAM AND OTHER INTERESTS (Tables)

12 Months Ended

Dec. 31, 2020

ROYALTY, STREAM AND OTHER INTERESTS

Summary of royalty, stream and other interests

a)   Carrying Amount

As at and for the year ended December 31, 2020:

		Cost			Accumulated Depletion
			Additions/						Carrying
	Country	Opening	(Disposals)	Ending	Opening	Depletion	Disposals	Ending	Amount
		$	$	$	$	$	$	$	$
Beta Hunt	AUS	14,875	(5,454)	9,421	(6,638)	(706)	2,581	(4,763)	4,658
Camino Rojo	MEX	—	40,173	40,173	—	—	—	—	40,173
Cerro Blanco	GTM	—	16,069	16,069	—	—	—	—	16,069
Cerro Casale	CHL	7,053	—	7,053	—	—	—	—	7,053
Converse	USA	10,039	—	10,039	—	—	—	—	10,039
DeLamar	USA	9,068	—	9,068	—	—	—	—	9,068
El Mochito	HON	7,710	24	7,734	(1,516)	(1,122)	—	(2,638)	5,096
Florida Canyon	USA	12,823	—	12,823	(2,189)	(712)	—	(2,901)	9,922
Gemfield	USA	8,799	—	8,799	—	—	—	—	8,799
Hope Bay	CAN	63,324	—	63,324	(1,950)	(1,671)	—	(3,621)	59,703
Karma	BFA	20,080	—	20,080	(4,062)	(1,992)	—	(6,054)	14,026
La Colorada	MEX	17,400	—	17,400	(3,262)	(1,171)	—	(4,433)	12,967
McCoy-Cove	USA	18,553	—	18,553	—	—	—	—	18,553
Moose River	CAN	3,700	—	3,700	(1,544)	(843)	—	(2,387)	1,313
Moss	USA	20,283	—	20,283	(1,617)	(3,480)	—	(5,097)	15,186
Mt Carlton	AUS	9,436	—	9,436	(4,638)	(2,104)	—	(6,742)	2,694
Omolon	RUS	10,076	17	10,093	(399)	(3,093)	—	(3,492)	6,601
San Jose	MEX	5,500	—	5,500	(2,302)	(591)	—	(2,893)	2,607
Silvertip	CAN	4,340	—	4,340	(454)	—	—	(454)	3,886
Vivien	AUS	3,301	—	3,301	(2,593)	(254)	—	(2,847)	454
Other	Various	83,375	17,394	100,769	(15,166)	(260)	—	(15,426)	85,343
Total(1)		329,735	68,223	397,958	(48,330)	(17,999)	2,581	(63,748)	334,210

⁽¹⁾ Royalty, stream and other interests includes non-depletable assets of $76.0 million and depletable assets of $258.2 million.

As at and for the year ended December 31, 2019:

		Cost			Accumulated Depletion				Carrying
	Country	Opening	Additions	Ending	Opening	Depletion	Impairment	Ending	Amount
		$	$	$	$	$		$	$
Amulsar	ARM	14,241	—	14,241	—	—	(14,241)	(14,241)	—
Beta Hunt	AUS	14,875	—	14,875	(4,886)	(1,752)	—	(6,638)	8,237
Cerro Casale	CHL	—	7,053	7,053	—	—	—	—	7,053
Converse	USA	10,039	—	10,039	—	—	—	—	10,039
DeLamar	USA	—	9,068	9,068	—	—	—	—	9,068
El Mochito	HON	—	7,710	7,710	—	(1,516)	—	(1,516)	6,194
Florida Canyon	USA	12,215	608	12,823	(1,516)	(673)	—	(2,189)	10,634
Gemfield	USA	8,799	—	8,799	—	—	—	—	8,799
Hope Bay	CAN	23,305	40,019	63,324	(772)	(1,178)	—	(1,950)	61,374
Karma	BFA	20,073	7	20,080	(2,346)	(1,716)	—	(4,062)	16,018
La Colorada	MEX	17,400	—	17,400	(2,338)	(924)	—	(3,262)	14,138
McCoy-Cove	USA	12,004	6,549	18,553	—	—	—	—	18,553
Moose River	CAN	3,700	—	3,700	(852)	(692)	—	(1,544)	2,156
Moss	USA	20,273	10	20,283	(70)	(1,547)	—	(1,617)	18,666
Mt Carlton	AUS	9,436	—	9,436	(3,622)	(1,016)	—	(4,638)	4,798
Omolon	RUS	—	10,076	10,076	—	(399)	—	(399)	9,677
San Jose	MEX	5,500	—	5,500	(1,748)	(554)	—	(2,302)	3,198
Silvertip	CAN	4,340	—	4,340	(101)	(353)	—	(454)	3,886
Vivien	AUS	3,293	8	3,301	(2,030)	(563)	—	(2,593)	708
Other	Various	39,504	29,630	69,134	(627)	(298)	—	(925)	68,209
Total(1)		218,997	110,738	329,735	(20,908)	(13,181)	(14,241)	(48,330)	281,405

⁽¹⁾ Royalty, stream and other interests includes non-depletable assets of $51.5 million and depletable assets of $229.9 million.

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INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2020

INVESTMENTS

Summary of investments

	Balance at						Exercise				Balance at
	December						and		Fair Value		December
	31, 2019		Additions		Disposals		Transfers		Adjustments		31, 2020
Short-term investments
Common shares(1)	$	—	$	8,205	$	(501)	$	7,020	$	3,466	$	18,190
Warrants(2)		—		8		—		(1,851)		1,891		48
Total short-term investments	$	—	$	8,213	$	(501)	$	5,169	$	5,357	$	18,238
Non-current investments
Common shares(1)	$	7,006	$	1,519	$	(1,505)	$	(7,020)	$	—	$	—
Convertible debenture(2)		—		1,000		—		—		—		1,000
Warrants(2)		142		—		—		(142)		—		—
Total non-current investments	$	7,148	$	2,519	$	(1,505)	$	(7,162)	$	—	$	1,000
Total investments	$	7,148	$	10,732	$	(2,006)	$	(1,993)	$	5,357	$	19,238

⁽¹⁾ Fair value adjustments recorded within Other comprehensive income (loss).

⁽²⁾ Fair value adjustments recorded within Net income (loss).

	Balance at								Balance at
	December 31,							Fair Value	December
	2018		Additions		Disposals		Adjustments		31, 2019
Common shares	$	4,224	$	3,597	$	—	$	(815)	$	7,006
Warrants		234		—		—		(92)		142
Total investments	$	4,458	$	3,597	$	—	$	(907)	$	7,148

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CREDIT FACILITY (Tables)

12 Months Ended

Dec. 31, 2020

CREDIT FACILITY

Summary of the Company's Credit Facility

	Credit Facility
Balance at December 31, 2018	$	12,300
Proceeds		62,000
Repayment		(5,300)
Balance at December 31, 2019		69,000
Proceeds		20,000
Repayment		(57,000)
Balance at December 31, 2020	$	32,000

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SHARE CAPITAL (Tables)

12 Months Ended

Dec. 31, 2020

SHARE CAPITAL

Schedule of warrants outstanding and exercisable and changes during the period

The following table summarizes warrants which were outstanding and exercisable as at December 31, 2020 and 2019 and changes during the years then ended:

		Weighted average
	Number of warrants	exercise price
	outstanding	per warrant
Balance at December 31, 2018 and 2019	18,250,000	$	2.41
Exercised	(8,250,000)	$	1.89
Balance at December 31, 2020	10,000,000	$	2.84

Schedule of outstanding warrants

A listing of the Company’s outstanding warrants as at December 31, 2020 is presented below:

Number outstanding	Exercise Price		Expiry Date
5,000,000	$	2.41	December 23, 2021
5,000,000	$	3.28	June 29, 2023
10,000,000

Schedule of outstanding and exercisable stock options

		Weighted average
	Number of Options	exercise price per option
	Outstanding	(CAD$)
Balance at December 31, 2018	3,176,518	$	2.28
Granted	1,211,565	$	5.38
Exercised	(508,964)	$	1.62
Forfeited	(45,000)	$	5.18
Balance at December 31, 2019	3,834,119	$	3.31
Granted	953,255	$	5.21
Exercised	(650,580)	$	1.25
Forfeited	(67,910)	$	5.17
Balance at December 31, 2020	4,068,884	$	4.05
Options which have vested and are exercisable as at December 31, 2020	2,600,257	$	3.35

Summary of outstanding stock options, by expiry date

A summary of the Company’s outstanding stock options as at December 31, 2020 is presented below:

	Exercise Price
Number outstanding	(CAD$)		Expiry Date
285,750	$	1.08	April 10, 2021
722,408	$	2.80	April 28, 2022
156,081	$	2.80	May 30,2022
852,735	$	3.30	May 31, 2023
848,252	$	5.18	April 3, 2024
50,000	$	6.48	August 9, 2024
268,313	$	5.83	December 12,2024
855,345	$	5.17	March 10, 2025
30,000	$	6.54	September 24, 2025
4,068,884

Schedule of weighted average assumptions used in the BSM to estimate the fair value of stock options granted

	Years ended
	December 31
	2020		2019
Risk-free interest rate	0.5	%	1.6	%
Expected volatility	45	%	47	%
Expected life	3 years		3 years
Expected dividend yield	1.1	%	0.2	%

Schedule of outstanding RSUs

		Weighted average fair
	Number of  RSUs	value per RSU
	Outstanding	(CAD$)
Balance at December 31, 2018	—		—
Granted	97,027	$	5.82
Balance at December 31, 2019	97,027	$	5.82
Granted	105,822	$	5.57
Forfeited	(10,155)	$	5.17
Balance at December 31, 2020	192,694	$	5.72

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OPERATING EXPENSES BY NATURE (Tables)

12 Months Ended

Dec. 31, 2020

OPERATING EXPENSES BY NATURE

Schedule of operating expenses by nature

	Years ended
	December 31
	2020		2019
Compensation and benefits	$	4,504	$	3,001
Corporate administration		969		864
Listing and filing fees		242		646
Professional fees		736		408
Amortization		147		122
Operating expenses before share-based compensation		6,598		5,041
Share-based compensation		1,688		1,666
Total operating expenses	$	8,286	$	6,707

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EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2020

EARNINGS PER SHARE

Schedule of Basic and diluted earnings (Loss) per share

	Years ended
	December 31
	2020		2019
Net income (loss)	$	23,719	$	(7,667)
Basic weighted average number of shares		126,730,500		108,363,047
Basic earnings (loss) per share	$	0.19	$	(0.07)
Effect of dilutive securities
Warrants		7,431,541		—
Stock options		1,752,315		—
RSUs		61,183		—
Diluted weighted average number of common shares		135,975,539		108,363,047
Diluted  earnings (loss) per share	$	0.17	$	(0.07)

Schedule of anti-dilutive securities excluded from the computation of diluted earnings per share

	Years ended
	December 31
	2020	2019
Warrants	—	18,250,000
Stock options	58,033	3,834,119
RSUs	—	97,027

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SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

12 Months Ended

Dec. 31, 2020

SUPPLEMENTAL CASH FLOW INFORMATION

Schedule of supplemental cash flow information

	Years ended
	December 31
Changes in non-cash working capital:	2020		2019
Accounts receivable	$	(6,393)	$	(2,484)
Prepaid expenses and other		(170)		(215)
Trade payables and other		(297)		(1,004)
Dividend payable		—		1,196
Deferred revenue		3,333		—
Changes in non-cash working capital	$	(3,527)	$	(2,507)
Significant non-cash transactions:
Equity issued for Newmont and Kinross Portfolios  (Note 4)	$	60,000	$	49,000
Settlement of receivables in equity investments		1,519		597
Cash and cash equivalents at the end of the year:
Cash at bank	$	7,760	$	4,828

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RELATED PARTY DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2020

RELATED PARTY DISCLOSURES

Schedule of compensation for key management personnel

	Years ended
	December 31
	2020		2019
Compensation and benefits	$	3,632	$	2,530
Share-based compensation		1,532		1,471
Total compensation	$	5,164	$	4,001

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES

Schedule of income tax recognized in net (loss) income

	Years ended
	December 31
	2020		2019
Current tax expense	$	7,392	$	1,183
Deferred tax recovery		(1,332)		—
Income tax expense	$	6,060	$	1,183

Schedule of income tax expense differs from the amount that would result from applying the federal and provincial income tax rates to the income before income taxes

	Years ended
	December 31
	2020			2019
Income (loss) before income taxes	$	29,779		$	(6,484)
Statutory tax rate		27	%		27	%
Expected  income tax expense (recovery)	$	8,040		$	(1,751)
Increase (decrease) due to:
Foreign tax rate differences		583			210
Non-deductible expenses		448			318
Withholding taxes		548			319
Change in unrecognized temporary differences		(2,970)			2,443
Recognition of temporary differences		(1,332)			—
Effect of true-ups in prior year temporary and other differences		743			(356)
Income tax expense	$	6,060		$	1,183

Summary of Company's deferred income tax asset

	Years ended
	December 31
	2020		2019
Balance, beginning of the year	$	823	$	823
Recognized in net income (loss)		1,332		—
Recognized in other comprehensive income (loss)		(402)		—
Balance, end of the year	$	1,753	$	823

Schedule of aggregate amount of deductible temporary differences for which deferred income tax assets have not been recognized

	December 31, 2020		December 31, 2019
Royalty, stream and other interests	$	2,492	$	2,355
Financing costs and other		859		130
Non-capital losses		5,430		18,470
Total	$	8,781	$	20,955

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SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2020

SEGMENT INFORMATION

Schedule of segment information

For the year ended December 31, 2020:

				Costs of		Gain on	Income	Cash
				sales,		amendment	(loss)	from
	Primary	Royalty		excluding		of royalty	before	(used in)
	Product	revenue	Sales	depletion	Depletion	interest	taxes	operations
		$	$	$	$	$	$	$
Beta Hunt (AUS)	Gold	8,635	—	—	(706)	9,291	17,220	9,533
El Mochito (HON)	Silver	—	3,716	(881)	(1,122)	—	1,713	2,836
Florida Canyon (USA)	Gold	2,551	—	—	(712)	—	1,839	2,638
Hope Bay (CAN)	Gold	5,355	—	—	(1,671)	—	3,684	2,998
Karma (BFA)	Gold	2,946	—	—	(1,992)	—	954	2,636
La Colorada (MEX)	Gold	—	6,347	(2,345)	(1,171)	—	2,831	4,002
Moose River (CAN)	Gold	1,586	—	—	(843)	—	743	1,521
Moss (USA)	Silver	—	8,929	(1,794)	(3,480)	—	3,655	7,135
Mt Carlton (AUS)	Gold	2,469	—	—	(2,104)	—	365	2,112
Omolon (RUS)	Gold	4,792	—	—	(3,093)	—	1,699	3,169
San Jose (MEX)	Silver	1,989	—	—	(591)	—	1,398	1,736
Silvertip (CAN)	Silver	—	—	—	—	—	—	189
Vivien (AUS)	Gold	1,839	—	—	(254)	—	1,585	1,596
Other (Various)	Various	527	—	—	(260)	—	267	670
Total segments		32,689	18,992	(5,020)	(17,999)	9,291	37,953	42,771
Operating expenses		—	—	—	—	—	(8,286)	(6,451)
Foreign exchange gain		—	—	—	—	—	664	380
Unrealized gain on warrants		—	—	—	—	—	1,891	—
Finance expense		—	—	—	—	—	(2,456)	—
Income taxes paid		—	—	—	—	—	—	(4,076)
Other		—	—	—	—	—	13	376
Total corporate		—	—	—	—	—	(8,174)	(9,771)
Consolidated total		32,689	18,992	(5,020)	(17,999)	9,291	29,779	33,000

For the year ended December 31, 2019:

				Costs of
				sales,		Royalty		Cash from
	Primary	Royalty		excluding		interest	Income (loss)	(used in)
	Product	revenue	Sales	depletion	Depletion	impairment	before taxes	operations
		$	$	$	$	$	$	$
Amulsar (ARM)	Gold	—	—	—	—	(14,241)	(14,241)	—
Beta Hunt (AUS)	Gold	4,786	—	—	(1,752)	—	3,034	5,001
El Mochito (HON)	Silver	—	3,626	(874)	(1,516)	—	1,236	2,752
Florida Canyon (USA)	Gold	2,101	—	—	(673)	—	1,428	1,610
Hope Bay (CAN)	Gold	3,124	—	—	(1,178)	—	1,946	1,761
Karma (BFA)	Gold	2,305	—	—	(1,716)	—	589	1,868
La Colorada (MEX)	Gold	—	5,216	(2,443)	(924)	—	1,849	2,773
Moose River (CAN)	Gold	1,124	—	—	(692)	—	432	1,023
Moss (USA)	Silver	—	3,073	(610)	(1,547)	—	916	2,463
Mt Carlton (AUS)	Gold	2,941	—	—	(1,016)	—	1,925	3,210
Omolon (RUS)	Gold	562	—	—	(399)	—	163	—
San Jose (MEX)	Silver	1,471	—	—	(554)	—	917	1,377
Silvertip (CAN)	Silver	941	—	—	(353)	—	588	897
Vivien (AUS)	Gold	2,070	—	—	(563)	—	1,507	2,093
Other (Various)	Various	372	—	—	(298)	—	74	272
Total segments		21,797	11,915	(3,927)	(13,181)	(14,241)	2,363	27,100
Operating expenses		—	—	—	—	—	(6,707)	(4,919)
Foreign exchange gain		—	—	—	—	—	(227)	(160)
Unrealized gain on warrants		—	—	—	—	—	(92)	—
Finance expense		—	—	—	—	—	(1,813)	—
Income taxes paid		—	—	—	—	—	—	(1,230)
Other		—	—	—	—	—	(8)	170
Total corporate		—	—	—	—	—	(8,847)	(6,139)
Consolidated total		21,797	11,915	(3,927)	(13,181)	(14,241)	(6,484)	20,961

Schedule of non current assets by geographical region

Non-current Assets by Geographical Region:

	December 31, 2020		December 31, 2019
North America
USA	$	107,064	$	101,554
Canada		73,820		74,842
Mexico		64,847		20,936
South & Central America
Guatemala		16,069		—
Chile		10,073		10,073
Peru		8,400		8,400
Dominican Republic		5,160		6,195
Honduras		5,097		5,160
Other
Burkina Faso		14,156		16,148
Australia		9,152		15,089
Russia		6,601		9,677
Cote d’Ivoire		4,030		4,030
Ghana		3,527		3,527
Argentina		3,200		3,200
Various		3,974		3,946
Total(1)	$	335,170	$	282,777

Includes royalty, stream, and other interests (Note 5) and deferred financing costs and other

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FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2020

FINANCIAL RISK MANAGEMENT

Schedule of Company's financial assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy

	As at December 31, 2020						As at December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Common shares	$	18,190	$	—	$	—	$	7,006	$	—	$	—
Warrants		—		48		—		—		142		—
Convertible debenture		—		—		1,000		—		—		—
Total	$	18,190	$	48	$	1,000	$	7,006	$	142	$	—

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CONTRACTUAL OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2020

CONTRACTUAL OBLIGATIONS

Schedule of purchase commitments

	Percent of		Per ounce cash payment:
	life of		Lesser of amount below and the then
	mine		prevailing market price
	production		(unless otherwise noted)
Gold Stream interests
La Bolsa	5	%	$450
La Colorada	100	%	$650
Silver Stream interests
El Mochito	22.5	%(1)	25% of silver spot price
Moss	100	%(2)	20% of silver spot price

⁽¹⁾ If 3.0 million ounces of silver are delivered to Maverix prior to April 1, 2022, Maverix’s silver purchase entitlement will be 20% of life of mine silver production.

⁽²⁾ After 3.5 million ounces of silver are delivered, Maverix’s silver purchase entitlement will be 50% of the remaining life of mine silver production.

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CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES
Impairment of royalty interests	$ 0	$ 14,241

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ROYALTY AND STREAM TRANSACTIONS - During the Year Ended December 31, 2020 (Details) $ in Thousands	1 Months Ended			3 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2021 USD ($)	Oct. 31, 2020 USD ($) item shares	Sep. 30, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Royal And Stream Transactions [Line Items]
Deferred tax asset recognized upon amendment of royalty interest						$ 1,332	$ 0
Yecora Royalty
Royal And Stream Transactions [Line Items]
Percentage of royalty to be disposed off		1.00%
Cash consideration		$ 1,500
Beta Hunt
Royal And Stream Transactions [Line Items]
Percentage of gold royalty				4.75%	7.50%
Proceeds from amendment of royalty interest			$ 13,000
Bonus Royalty Payment received			2,500
Bonus Royalty Payment			$ 5,000	$ 5,000
Bonus Royalty Payment, amortization period			1 year 6 months
Current taxes paid upon amendment of royalty interest						4,300
Deferred tax asset recognized upon amendment of royalty interest						$ 900
Royalty Proceeds
Royal And Stream Transactions [Line Items]
Bonus Royalty Payment received	$ 2,500
Royalty Proceeds | Beta Hunt
Royal And Stream Transactions [Line Items]
Bonus Royalty Payment received	$ 2,500
Newmont Portfolio Acquisition
Royal And Stream Transactions [Line Items]
Number of Royalties Acquired | item		11
IFRS Stock Issued During Period, Shares, New Issues | shares		12,000,000
Cash Consideration Royalty Portfolio Acquisition		$ 15,000
Contingent cash payments		$ 15,000
Contingent cash payments, Period for achievement of certain production milestones		5 years
Fair Value of Acquired Portfolio		$ 75,000
Number of development and exploration stage royalties acquired | item		9
Newmont Portfolio Acquisition | United States
Royal And Stream Transactions [Line Items]
Number of development and exploration stage royalties acquired | item		4
Newmont Portfolio Acquisition | Canada
Royal And Stream Transactions [Line Items]
Number of development and exploration stage royalties acquired | item		2
Newmont Portfolio Acquisition | Mexico
Royal And Stream Transactions [Line Items]
Number of development and exploration stage royalties acquired | item		3
Newmont Portfolio Acquisition | Discount rate | Discounted cash flow model for producing assets | Minimum
Royal And Stream Transactions [Line Items]
Significant unobservable input, assets		4
Newmont Portfolio Acquisition | Discount rate | Discounted cash flow model for producing assets | Maximum
Royal And Stream Transactions [Line Items]
Significant unobservable input, assets		15
Camino Rojo royalty
Royal And Stream Transactions [Line Items]
Percentage of Royalty Acquired		2.00%
Cerro Blanco royalty
Royal And Stream Transactions [Line Items]
Percentage of Royalty Acquired		1.00%

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ROYALTY AND STREAM TRANSACTIONS - During the Year Ended December 31, 2019 (Details) $ in Millions	1 Months Ended
	Dec. 31, 2019 USD ($) item shares	Aug. 31, 2019 USD ($)	Mar. 31, 2019 USD ($)
Kinross Portfolio Acquisition
Royal And Stream Transactions [Line Items]
Number of common shares issued | shares	11,228,674
Royalty portfolio consideration paid in cash	$ 25.0
Number of royalties acquired | item	24
Proceeds from royalties	$ 12.0
Fair value of portfolio acquired	$ 74.0
Kinross Portfolio Acquisition | Minimum | Discount rate
Royal And Stream Transactions [Line Items]
Input assumption for fair value estimate	5
Kinross Portfolio Acquisition | Maximum | Discount rate
Royal And Stream Transactions [Line Items]
Input assumption for fair value estimate	10
Hope Bay mine
Royal And Stream Transactions [Line Items]
Royalty portfolio consideration paid in cash		$ 40.0
Percentage of royalty acquired		1.50%
Percentage of royalty owned		2.50%
Percentage of royalty to be received until certain conditions with respect to the Additional Royalty are satisfied		0.25%
Cash payment for buy back of royalty in the event of a change of control transaction of TMAC that is announced prior to June 30, 2021		$ 50.0
El Mochito Stream
Royal And Stream Transactions [Line Items]
Stream consideration paid in cash			$ 7.5
Percentage of stream acquired			22.5
Reduced stream percentage if certain production milestones are met			20
Ongoing cash payments as a percentage of spot price of silver for each ounce delivered			25.00%

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ROYALTY, STREAM AND OTHER INTEREST (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2019
ROYALTY, STREAM AND OTHER INTERESTS
Opening		$ 281,405
Royalty interest impairment		0	$ (14,241)
Ending	$ 334,210	334,210	281,405
Carrying Amount	334,210	334,210	281,405	$ 334,210	$ 281,405	$ 198,091
Non-depletable assets of royalty, stream and other interests				76,000	51,500
Depletable assets of royalty, stream and other interests				258,200	229,900
Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		329,735	218,997
Additions/ Disposals		68,223	110,738
Disposals		68,223	110,738
Ending	397,958	397,958	329,735
Carrying Amount	397,958	397,958	329,735	397,958	329,735
Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(48,330)	(20,908)
Additions/ Disposals		2,581
Depletion		(17,999)	(13,181)
Disposals		2,581
Royalty interest impairment			(14,241)
Ending	(63,748)	(63,748)	(48,330)
Carrying Amount	(63,748)	(63,748)	(48,330)	(63,748)	(48,330)
Amulsar | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		14,241	14,241
Ending			14,241
Carrying Amount		14,241	14,241		14,241
Amulsar | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(14,241)
Royalty interest impairment			(14,241)
Ending			(14,241)
Carrying Amount		(14,241)	(14,241)		(14,241)
Beta Hunt
ROYALTY, STREAM AND OTHER INTERESTS
Opening		8,237
Ending	4,658	4,658	8,237
Carrying Amount	4,658	4,658	8,237	4,658	8,237
Beta Hunt | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		14,875	14,875
Additions/ Disposals		(5,454)
Disposals		(5,454)
Ending	9,421	9,421	14,875
Carrying Amount	9,421	9,421	14,875	9,421	14,875
Beta Hunt | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(6,638)	(4,886)
Additions/ Disposals		2,581
Depletion		(706)	(1,752)
Disposals		2,581
Ending	(4,763)	(4,763)	(6,638)
Carrying Amount	(4,763)	(4,763)	(6,638)	(4,763)	(6,638)
Camino Rojo
ROYALTY, STREAM AND OTHER INTERESTS
Ending	40,173	40,173
Carrying Amount	40,173	40,173		40,173
Camino Rojo | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Additions/ Disposals		40,173
Disposals		40,173
Ending	40,173	40,173
Carrying Amount	40,173	40,173		40,173
Cerro Blanco
ROYALTY, STREAM AND OTHER INTERESTS
Ending	16,069	16,069
Carrying Amount	16,069	16,069		16,069
Cerro Blanco | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Additions/ Disposals		16,069
Disposals		16,069
Ending	16,069	16,069
Carrying Amount	16,069	16,069		16,069
Cerro Casale
ROYALTY, STREAM AND OTHER INTERESTS
Opening		7,053
Ending	7,053	7,053	7,053
Carrying Amount	7,053	7,053	7,053	7,053	7,053
Cerro Casale | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		7,053
Additions/ Disposals			7,053
Disposals			7,053
Ending	7,053	7,053	7,053
Carrying Amount	7,053	7,053	7,053	7,053	7,053
Converse
ROYALTY, STREAM AND OTHER INTERESTS
Opening		10,039
Ending	10,039	10,039	10,039
Carrying Amount	10,039	10,039	10,039	10,039	10,039
Converse | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		10,039	10,039
Ending	10,039	10,039	10,039
Carrying Amount	10,039	10,039	10,039	10,039	10,039
DeLamar
ROYALTY, STREAM AND OTHER INTERESTS
Opening		9,068
Ending	9,068	9,068	9,068
Carrying Amount	9,068	9,068	9,068	9,068	9,068
DeLamar | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		9,068
Additions/ Disposals			9,068
Disposals			9,068
Ending	9,068	9,068	9,068
Carrying Amount	9,068	9,068	9,068	9,068	9,068
El Mochito
ROYALTY, STREAM AND OTHER INTERESTS
Opening		6,194
Ending	5,096	5,096	6,194
Carrying Amount	5,096	5,096	6,194	5,096	6,194
El Mochito | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		7,710
Additions/ Disposals		24	7,710
Disposals		24	7,710
Ending	7,734	7,734	7,710
Carrying Amount	7,734	7,734	7,710	7,734	7,710
El Mochito | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(1,516)
Depletion		(1,122)	(1,516)
Ending	(2,638)	(2,638)	(1,516)
Carrying Amount	(2,638)	(2,638)	(1,516)	(2,638)	(1,516)
Florida Canyon
ROYALTY, STREAM AND OTHER INTERESTS
Opening		10,634
Ending	9,922	9,922	10,634
Carrying Amount	9,922	9,922	10,634	9,922	10,634
Florida Canyon | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		12,823	12,215
Additions/ Disposals			608
Disposals			608
Ending	12,823	12,823	12,823
Carrying Amount	12,823	12,823	12,823	12,823	12,823
Florida Canyon | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(2,189)	(1,516)
Depletion		(712)	(673)
Ending	(2,901)	(2,901)	(2,189)
Carrying Amount	(2,901)	(2,901)	(2,189)	(2,901)	(2,189)
Gemfield
ROYALTY, STREAM AND OTHER INTERESTS
Opening		8,799
Ending	8,799	8,799	8,799
Carrying Amount	8,799	8,799	8,799	8,799	8,799
Gemfield | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		8,799	8,799
Ending	8,799	8,799	8,799
Carrying Amount	8,799	8,799	8,799	8,799	8,799
Hope Bay
ROYALTY, STREAM AND OTHER INTERESTS
Opening		61,374
Ending	59,703	59,703	61,374
Carrying Amount	59,703	59,703	61,374	59,703	61,374
Hope Bay | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		63,324	23,305
Additions/ Disposals			40,019
Disposals			40,019
Ending	63,324	63,324	63,324
Carrying Amount	63,324	63,324	63,324	63,324	63,324
Hope Bay | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(1,950)	(772)
Depletion		(1,671)	(1,178)
Ending	(3,621)	(3,621)	(1,950)
Carrying Amount	(3,621)	(3,621)	(1,950)	(3,621)	(1,950)
Karma
ROYALTY, STREAM AND OTHER INTERESTS
Opening		16,018
Ending	14,026	14,026	16,018
Carrying Amount	14,026	14,026	16,018	14,026	16,018
Karma | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		20,080	20,073
Additions/ Disposals			7
Disposals			7
Ending	20,080	20,080	20,080
Carrying Amount	20,080	20,080	20,080	20,080	20,080
Karma | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(4,062)	(2,346)
Depletion		(1,992)	(1,716)
Ending	(6,054)	(6,054)	(4,062)
Carrying Amount	(6,054)	(6,054)	(4,062)	(6,054)	(4,062)
La Colorada
ROYALTY, STREAM AND OTHER INTERESTS
Opening		14,138
Ending	12,967	12,967	14,138
Carrying Amount	12,967	12,967	14,138	12,967	14,138
La Colorada | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		17,400	17,400
Ending	17,400	17,400	17,400
Carrying Amount	17,400	17,400	17,400	17,400	17,400
La Colorada | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(3,262)	(2,338)
Depletion		(1,171)	(924)
Ending	(4,433)	(4,433)	(3,262)
Carrying Amount	(4,433)	(4,433)	(3,262)	(4,433)	(3,262)
McCoy-Cove
ROYALTY, STREAM AND OTHER INTERESTS
Opening		18,553
Ending	18,553	18,553	18,553
Carrying Amount	18,553	18,553	18,553	18,553	18,553
McCoy-Cove | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		18,553	12,004
Additions/ Disposals			6,549
Disposals			6,549
Ending	18,553	18,553	18,553
Carrying Amount	18,553	18,553	18,553	18,553	18,553
Moose River
ROYALTY, STREAM AND OTHER INTERESTS
Opening		2,156
Ending	1,313	1,313	2,156
Carrying Amount	1,313	1,313	2,156	1,313	2,156
Moose River | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		3,700	3,700
Ending	3,700	3,700	3,700
Carrying Amount	3,700	3,700	3,700	3,700	3,700
Moose River | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(1,544)	(852)
Depletion		(843)	(692)
Ending	(2,387)	(2,387)	(1,544)
Carrying Amount	(2,387)	(2,387)	(1,544)	(2,387)	(1,544)
Moss
ROYALTY, STREAM AND OTHER INTERESTS
Opening		18,666
Ending	15,186	15,186	18,666
Carrying Amount	15,186	15,186	18,666	15,186	18,666
Moss | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		20,283	20,273
Additions/ Disposals			10
Disposals			10
Ending	20,283	20,283	20,283
Carrying Amount	20,283	20,283	20,283	20,283	20,283
Moss | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(1,617)	(70)
Depletion		(3,480)	(1,547)
Ending	(5,097)	(5,097)	(1,617)
Carrying Amount	(5,097)	(5,097)	(1,617)	(5,097)	(1,617)
Mt. Carlton
ROYALTY, STREAM AND OTHER INTERESTS
Opening		4,798
Ending	2,694	2,694	4,798
Carrying Amount	2,694	2,694	4,798	2,694	4,798
Mt. Carlton | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		9,436	9,436
Ending	9,436	9,436	9,436
Carrying Amount	9,436	9,436	9,436	9,436	9,436
Mt. Carlton | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(4,638)	(3,622)
Depletion		(2,104)	(1,016)
Ending	(6,742)	(6,742)	(4,638)
Carrying Amount	(6,742)	(6,742)	(4,638)	(6,742)	(4,638)
Omolon
ROYALTY, STREAM AND OTHER INTERESTS
Opening		9,677
Ending	6,601	6,601	9,677
Carrying Amount	6,601	6,601	9,677	6,601	9,677
Omolon | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		10,076
Additions/ Disposals		17	10,076
Disposals		17	10,076
Ending	10,093	10,093	10,076
Carrying Amount	10,093	10,093	10,076	10,093	10,076
Omolon | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(399)
Depletion		(3,093)	(399)
Ending	(3,492)	(3,492)	(399)
Carrying Amount	(3,492)	(3,492)	(399)	(3,492)	(399)
San Jose
ROYALTY, STREAM AND OTHER INTERESTS
Opening		3,198
Ending	2,607	2,607	3,198
Carrying Amount	2,607	2,607	3,198	2,607	3,198
San Jose | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		5,500	5,500
Ending	5,500	5,500	5,500
Carrying Amount	5,500	5,500	5,500	5,500	5,500
San Jose | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(2,302)	(1,748)
Depletion		(591)	(554)
Ending	(2,893)	(2,893)	(2,302)
Carrying Amount	(2,893)	(2,893)	(2,302)	(2,893)	(2,302)
Silvertip
ROYALTY, STREAM AND OTHER INTERESTS
Opening		3,886
Ending	3,886	3,886	3,886
Carrying Amount	3,886	3,886	3,886	3,886	3,886
Silvertip | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		4,340	4,340
Ending	4,340	4,340	4,340
Carrying Amount	4,340	4,340	4,340	4,340	4,340
Silvertip | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(454)	(101)
Depletion			(353)
Ending	(454)	(454)	(454)
Carrying Amount	(454)	(454)	(454)	(454)	(454)
Vivien
ROYALTY, STREAM AND OTHER INTERESTS
Opening		708
Ending	454	454	708
Carrying Amount	454	454	708	454	708
Vivien | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		3,301	3,293
Additions/ Disposals			8
Disposals			8
Ending	3,301	3,301	3,301
Carrying Amount	3,301	3,301	3,301	3,301	3,301
Vivien | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(2,593)	(2,030)
Depletion		(254)	(563)
Ending	(2,847)	(2,847)	(2,593)
Carrying Amount	(2,847)	(2,847)	(2,593)	(2,847)	(2,593)
Other
ROYALTY, STREAM AND OTHER INTERESTS
Ending	85,343	85,343
Carrying Amount	85,343	85,343		85,343
Other | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		83,375
Additions/ Disposals		17,394
Disposals		17,394
Ending	100,769	100,769	83,375
Carrying Amount	100,769	100,769	83,375	100,769	83,375
Other | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(15,166)
Depletion		(260)
Ending	(15,426)	(15,426)	(15,166)
Carrying Amount	(15,426)	(15,426)	(15,166)	$ (15,426)	(15,166)
Other
ROYALTY, STREAM AND OTHER INTERESTS
Opening		68,209
Ending			68,209
Carrying Amount		68,209	68,209		68,209
Other | Cost
ROYALTY, STREAM AND OTHER INTERESTS
Opening		69,134	39,504
Additions/ Disposals			29,630
Disposals			29,630
Ending			69,134
Carrying Amount		69,134	69,134		69,134
Other | Accumulated Depletion
ROYALTY, STREAM AND OTHER INTERESTS
Opening		(925)	(627)
Depletion			(298)
Ending			(925)
Carrying Amount		$ (925)	$ (925)		$ (925)
Lydian
ROYALTY, STREAM AND OTHER INTERESTS
Royalty interest impairment	$ (14,200)

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INVESTMENTS (Details) $ / shares in Units, $ / shares in Units, $ in Thousands, shares in Millions, $ in Millions	1 Months Ended		12 Months Ended
	Jun. 30, 2020 $ / shares	Apr. 30, 2020 USD ($)	Dec. 31, 2020 CAD ($) $ / shares shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2019 USD ($)	Dec. 31, 2020 USD ($)
Disclosure of classes of share capital
Short-term investments, Additions				$ 8,213
Short-term investments, Disposals				(501)
Short-term investments, Exercise and Transfers				5,169
Short-term investments, Fair Value Adjustments				5,357
Short-term investments, ending balance				18,238
Non-current investments, beginning balance				7,148
Non-current investments, Additions				2,519
Non-current investments, Disposals				(1,505)
Non-current investments, Exercise and Transfers				(7,162)
Non-current investments, ending balance				1,000	$ 7,148
Investments, beginning balance				7,148	4,458
Investments, Additions				10,732	3,597
Investments, Disposals				(2,006)
Investments, Exercise and Transfers				(1,993)
Investments, Fair Value Adjustments				5,357	(907)
Investments, ending balance				19,238	7,148
Selling price of underlying common shares | $ / shares	$ 4.29
TMAC common shares subscribed						$ 3,000
Convertible debenture
Disclosure of classes of share capital
Non-current investments, Additions				1,000
Non-current investments, ending balance		$ 1,000		1,000
Term of the debenture		2 years
Interest rate (as a percent)		12.00%
Percentage of total issued and outstanding capital stock of Kirungu in to which the debenture is convertible		19.90%
Percentage of additional silver that the company has right to purchase from the operating El Mochito mine		3.00%
Percentage of royalty, that the company has right to receive		0.30%
Common shares
Disclosure of classes of share capital
Short-term investments, Additions				8,205
Short-term investments, Disposals				(501)
Short-term investments, Exercise and Transfers				7,020
Short-term investments, Fair Value Adjustments				3,466
Short-term investments, ending balance				18,190
Non-current investments, beginning balance				7,006
Non-current investments, Additions				1,519
Non-current investments, Disposals				(1,505)
Non-current investments, Exercise and Transfers				(7,020)
Non-current investments, ending balance					7,006
Investments, beginning balance				7,006	4,224
Investments, Additions					3,597
Investments, Fair Value Adjustments					(815)
Investments, ending balance					7,006
Warrants
Disclosure of classes of share capital
Short-term investments, Additions				8
Short-term investments, Exercise and Transfers				(1,851)
Short-term investments, Fair Value Adjustments				1,891
Short-term investments, ending balance				48
Non-current investments, beginning balance				142
Non-current investments, Exercise and Transfers				(142)
Non-current investments, ending balance					142
Investments, beginning balance				$ 142	234
Investments, Fair Value Adjustments					(92)
Investments, ending balance					$ 142
Northern Vertex Mining Corp
Disclosure of classes of share capital
Amount of financing			$ 20.0
Number of share purchase warrants agreed to exercise | shares			19.5	19.5
Exercise price of share purchase warrants | $ / shares			$ 0.40
Selling price of underlying common shares | $ / shares			$ 0.50

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CREDIT FACILITY (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about borrowings
Percentage of amount paid on amounts drawn		2.90%	4.40%
Percentage of amount paid on amounts undrawn		0.60%	0.50%
Balance at the beginning		$ 69,000
Proceeds		20,000	$ 62,000
Repayment		(57,000)	(5,300)
Balance at the end		32,000	69,000
Credit Facility
Disclosure of detailed information about borrowings
Maximum borrowing capacity	$ 120,000
Balance at the beginning		69,000	12,300
Proceeds		20,000	62,000
Repayment		(57,000)	(5,300)
Balance at the end		32,000	69,000
Amortization of deferred financing costs		$ 300	$ 300
Credit Facility | Minimum
Disclosure of detailed information about borrowings
Standby fee on undrawn portion (as a percent)	0.45%
Credit Facility | Maximum
Disclosure of detailed information about borrowings
Standby fee on undrawn portion (as a percent)	0.675%
Credit Facility | LIBOR | Minimum
Disclosure of detailed information about borrowings
Adjustment to interest rate basis (as a percent)	2.00%
Credit Facility | LIBOR | Maximum
Disclosure of detailed information about borrowings
Adjustment to interest rate basis (as a percent)	3.00%

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SHARE CAPITAL - Share Purchase Warrants - Outstanding and Exercisable (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2020
Number of warrants outstanding
Beginning balance		18,250,000
Exercised		(8,250,000)
Ending balance		10,000,000
Weighted average exercise price per warrant
Beginning balance		$ 2.41
Exercised		1.89
Ending balance		$ 2.84
Proceeds from exercise of warrants	$ 15.6
Common share price	$ 4.29
Number of outstanding shares	8,250,000

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SHARE CAPITAL - Share Purchase Warrants (Details) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Disclosure of classes of share capital
Number outstanding	10,000,000	18,250,000
Exercise Price $2.41 Expiry Date December 23, 2021
Disclosure of classes of share capital
Number outstanding	5,000,000
Exercise Price US$	$ 2.41
Exercise Price $3.28 Expiry Date June 29, 2023
Disclosure of classes of share capital
Number outstanding	5,000,000
Exercise Price US$	$ 3.28

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SHARE CAPITAL - Share Based Payments - Share Option Plan (Details)	12 Months Ended
	Dec. 31, 2020 Options $ / shares shares	Dec. 31, 2019 Options $ / shares
SHARE CAPITAL
Number of shares reserved for future issuance | shares	7,500,000
Expiration period, in years	5 years
Summary of options outstanding and exercisable
Number of options outstanding, Beginning of the period | Options	3,834,119	3,176,518
Number of options outstanding, Granted | Options	953,255	1,211,565
Number of options outstanding, Exercised | Options	(650,580)	(508,964)
Number of options outstanding, Forfeited | Options	(67,910)	(45,000)
Number of options outstanding, End of the period | Options	4,068,884	3,834,119
Options which have vested and are exercisable | Options	2,600,257
Weighted average exercise price per option, Beginning of the period | $ / shares	$ 3.31	$ 2.28
Weighted average exercise price per option, Granted | $ / shares	5.21	5.38
Weighted average exercise price per option, Exercised | $ / shares	1.25	1.62
Weighted average exercise price per option, Forfeited | $ / shares	5.17	5.18
Weighted average exercise price per option, End of the period | $ / shares	4.05	$ 3.31
Weighted average exercise price per option, Options which have vested and are exercisable | $ / shares	$ 3.35

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SHARE CAPITAL - Share Based Payments - Share Option Plan - Outstanding Stock Options (Details)	Dec. 31, 2020 Options $ / shares	Dec. 31, 2019 Options $ / shares	Dec. 31, 2018 Options $ / shares
Disclosure of classes of share capital
Number outstanding | Options	4,068,884	3,834,119	3,176,518
Exercise Price | $ / shares	$ 4.05	$ 3.31	$ 2.28
Exercise Price $1.08 Expiry Date April 10, 2021
Disclosure of classes of share capital
Number outstanding | Options	285,750
Exercise Price | $ / shares	$ 1.08
Exercise Price $2.80 Expiry Date April 28, 2022
Disclosure of classes of share capital
Number outstanding | Options	722,408
Exercise Price | $ / shares	$ 2.80
Exercise Price $2.80 Expiry Date May 30, 2022
Disclosure of classes of share capital
Number outstanding | Options	156,081
Exercise Price | $ / shares	$ 2.80
Exercise Price $3.30 Expiry Date May 31, 2023
Disclosure of classes of share capital
Number outstanding | Options	852,735
Exercise Price | $ / shares	$ 3.30
Exercise Price $5.18 Expiry Date April 3, 2024
Disclosure of classes of share capital
Number outstanding | Options	848,252
Exercise Price | $ / shares	$ 5.18
Exercise Price $6.48 Expiry Date August 9, 2024
Disclosure of classes of share capital
Number outstanding | Options	50,000
Exercise Price | $ / shares	$ 6.48
Exercise Price 5.83 With Expiration December 12,2024
Disclosure of classes of share capital
Number outstanding | Options	268,313
Exercise Price | $ / shares	$ 5.83
Exercise Price $5.17 Expiry Date March 10, 2025
Disclosure of classes of share capital
Number outstanding | Options	855,345
Exercise Price | $ / shares	$ 5.17
Exercise Price $6.54 Expiry Date September 24, 2025
Disclosure of classes of share capital
Number outstanding | Options	30,000
Exercise Price | $ / shares	$ 6.54

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SHARE CAPITAL - Share Based Payments - Share Option Plan - Weighted Average Assumptions (Details)	12 Months Ended
	Dec. 31, 2020 item $ / shares	Dec. 31, 2019 item $ / shares
SHARE CAPITAL
Risk-free interest rate	0.50%	1.60%
Expected volatility	45.00%	47.00%
Expected life | item	3	3
Expected dividend yield	1.10%	0.20%
Weighted-average common share price | $ / shares	$ 4.78	$ 4.13
Weighted average remaining contractual life	2 years 8 months 23 days	3 years 15 days

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SHARE CAPITAL - Share Based Payments - RSU Plan (Details) - RSU	12 Months Ended
	Dec. 31, 2020 CAD ($) $ / shares shares	Dec. 31, 2019 CAD ($) $ / shares
ShareCapital
Number of restricted share units reserved for future issuance | shares	3,000,000
Number of RSUs outstanding, Beginning of the period | $	97,027	0
Number of RSUs outstanding, Granted | $	105,822	97,027
Number of RSUs outstanding, Forfeited | $	(10,155)
Number of RSUs outstanding, End of the period | $	192,694	97,027
Weighted average exercise price of RSUs, Beginning of the period | $ / shares	$ 5.82	$ 0.00
Weighted average fair value per RSU, Granted | $ / shares	5.57	5.82
Weighted average fair value per RSU, Forfeited | $ / shares	5.17
Weighted average exercise price of RSUs, End of the period | $ / shares	$ 5.72	$ 5.82

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SHARE CAPITAL - Dividend (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
ShareCapital
Dividends declared (per share)		$ 0.01
Dividend Declared One
ShareCapital
Dividends declared (per share)	$ 0.01
Dividend Declared Two
ShareCapital
Dividends declared (per share)	0.01
Dividend Declared Three
ShareCapital
Dividends declared (per share)	0.01
Dividend Declared Four
ShareCapital
Dividends declared (per share)	0.01
Dividend Paid One
ShareCapital
Dividends paid (per share)	0.01
Dividend Paid Two
ShareCapital
Dividends paid (per share)	0.01
Dividend Paid Three
ShareCapital
Dividends paid (per share)	0.01
Dividend Paid Four
ShareCapital
Dividends paid (per share)	0.01
Dividend Paid Five
ShareCapital
Dividends paid (per share)	$ 0.01

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OPERATING EXPENSES BY NATURE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
OPERATING EXPENSES BY NATURE
Compensation and benefits	$ 4,504	$ 3,001
Corporate administration	969	864
Listing and filing fees	242	646
Professional fees	736	408
Amortization	147	122
Operating expenses before share-based compensation	6,598	5,041
Share-based compensation	1,688	1,666
Total operating expenses	$ 8,286	$ 6,707

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EARNINGS PER SHARE (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020 $ / shares	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 $ / shares	Dec. 31, 2019 USD ($) $ / shares shares
EARNINGS PER SHARE
Net income (loss) | $		$ 23,719		$ (7,667)
Basic weighted average number of shares		126,730,500		108,363,047
Basic earnings (loss) per share | (per share)	$ 0.19	$ 0.19	$ (0.07)	$ (0.07)
Effect of dilutive securities
Warrants		7,431,541
Stock options		1,752,315
RSU		61,183
Diluted weighted average number of common shares		135,975,539		108,363,047
Diluted earnings (loss) per share | (per share)	$ 0.17	$ 0.17	$ (0.07)	$ (0.07)

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EARNINGS PER SHARE - Anti-dilutive Securities (Details) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Warrants
Diluted earnings per share
Number of shares excluded from the computation of diluted earnings per share		18,250,000
Stock options
Diluted earnings per share
Number of shares excluded from the computation of diluted earnings per share	58,033	3,834,119
RSU
Diluted earnings per share
Number of shares excluded from the computation of diluted earnings per share		97,027

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SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Changes in non-cash working capital:
Accounts receivable	$ (6,393)	$ (2,484)
Prepaid expenses and other	(170)	(215)
Trade payables and other	(297)	(1,004)
Dividend payable		1,196
Deferred revenue	3,333
Changes in non-cash working capital	(3,527)	(2,507)
Significant non-cash transactions:
Equity issued for Newmont and Kinross Portfolios (Note 4)	60,000	49,000
Settlement of receivables in equity investments	1,519	597
Cash and cash equivalents at the end of the year:
Cash at bank	$ 7,760	$ 4,828

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RELATED PARTY DISCLOSURES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) $ / oz	Dec. 31, 2019 USD ($) $ / oz
RELATED PARTY DISCLOSURES
Compensation and benefits	$ 3,632	$ 2,530
Share-based compensation	1,532	1,471
Total compensation	5,164	4,001
Pan American | La Colorada
RELATED PARTY DISCLOSURES
Purchases from related party	$ 2,300	$ 2,400
Gold price | $ / oz	650	650

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INCOME TAXES - Income Tax Recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Components of income tax expense
Current tax expense	$ 7,392	$ 1,183
Deferred tax recovery	(1,332)
Income tax expense	$ 6,060	$ 1,183

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INCOME TAXES - Tax Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of income tax statutory rates to effective rates
Income (loss) before income taxes	$ 29,779	$ (6,484)
Statutory tax rate	27.00%	27.00%
Expected income tax expense (recovery)	$ 8,040	$ (1,751)
Increase (decrease) due to:
Foreign tax rate differences	583	210
Non-deductible expenses	448	318
Withholding taxes	548	319
Change in unrecognized temporary differences	(2,970)	2,443
Recognition of temporary differences	(1,332)
Effect of true-ups in prior year temporary and other differences	743	(356)
Income tax expense	$ 6,060	$ 1,183

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INCOME TAXES - Summary of Company's Deferred Income Tax Asset (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
INCOME TAXES
Balance, beginning of the year	$ 823	$ 823
Recognized in net income (loss)	1,332	0
Recognized in other comprehensive income (loss)	(402)
Balance, end of the year	$ 1,753	$ 823

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INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Deferred tax assets and liabilities recognized
Gross deferred tax assets	$ 1,753	$ 823	$ 823
Deferred tax liability (asset)	1,753	823		$ 823
Deductible temporary differences for which deferred income tax assets have not been recognized
Total	8,781	20,955
Royalty, stream and other interests
Deferred tax assets and liabilities recognized
Deferred tax liabilities	14,800	4,700
Deductible temporary differences for which deferred income tax assets have not been recognized
Total	2,492	2,355
Financing costs and other
Deductible temporary differences for which deferred income tax assets have not been recognized
Total	859	130
Non-capital losses
Deferred tax assets and liabilities recognized
Gross deferred tax assets	15,600	5,500
Deductible temporary differences for which deferred income tax assets have not been recognized
Total	5,430	$ 18,470
Non-capital tax losses that expire between 2038 to 2040
Deferred tax assets and liabilities recognized
Deferred tax liability (asset)	$ (58,900)

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SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of operating segments
Royalty revenue	$ 32,689	$ 21,797
Sales	18,992	11,915
Cost of sales, excluding depletion	(5,020)	(3,927)
Depletion	(17,999)	(13,181)
Royalty interest impairment	0	(14,241)
Gain on amendment of royalty interest	9,291
Income (loss) before taxes	29,779	(6,484)
Foreign exchange gain	664	(227)
Finance expense	(2,456)	(1,813)
Other	1,904	(100)
Cash from (used in) operations	33,000	20,961
Income taxes paid	(4,076)	(1,230)
Consolidated total
Disclosure of operating segments
Royalty revenue	32,689	21,797
Sales	18,992	11,915
Cost of sales, excluding depletion	(5,020)	(3,927)
Depletion	(17,999)	(13,181)
Royalty interest impairment		(14,241)
Gain on amendment of royalty interest	9,291
Income (loss) before taxes	29,779	(6,484)
Cash from (used in) operations	33,000	20,961
Operating segments
Disclosure of operating segments
Royalty revenue	32,689	21,797
Sales	18,992	11,915
Cost of sales, excluding depletion	(5,020)	(3,927)
Depletion	(17,999)	(13,181)
Royalty interest impairment		(14,241)
Gain on amendment of royalty interest	9,291
Income (loss) before taxes	37,953	2,363
Cash from (used in) operations	42,771	27,100
Operating segments | Amulsar
Disclosure of operating segments
Royalty interest impairment		(14,241)
Income (loss) before taxes		(14,241)
Operating segments | Beta Hunt
Disclosure of operating segments
Royalty revenue	8,635	4,786
Depletion	(706)	(1,752)
Gain on amendment of royalty interest	9,291
Income (loss) before taxes	17,220	3,034
Cash from (used in) operations	9,533	5,001
Operating segments | El Mochito
Disclosure of operating segments
Sales	3,716	3,626
Cost of sales, excluding depletion	(881)	(874)
Depletion	(1,122)	(1,516)
Income (loss) before taxes	1,713	1,236
Cash from (used in) operations	2,836	2,752
Operating segments | Florida Canyon
Disclosure of operating segments
Royalty revenue	2,551	2,101
Depletion	(712)	(673)
Income (loss) before taxes	1,839	1,428
Cash from (used in) operations	2,638	1,610
Operating segments | Hope Bay
Disclosure of operating segments
Royalty revenue	5,355	3,124
Depletion	(1,671)	(1,178)
Income (loss) before taxes	3,684	1,946
Cash from (used in) operations	2,998	1,761
Operating segments | Karma
Disclosure of operating segments
Royalty revenue	2,946	2,305
Depletion	(1,992)	(1,716)
Income (loss) before taxes	954	589
Cash from (used in) operations	2,636	1,868
Operating segments | La Colorada
Disclosure of operating segments
Sales	6,347	5,216
Cost of sales, excluding depletion	(2,345)	(2,443)
Depletion	(1,171)	(924)
Income (loss) before taxes	2,831	1,849
Cash from (used in) operations	4,002	2,773
Operating segments | Moose River
Disclosure of operating segments
Royalty revenue	1,586	1,124
Depletion	(843)	(692)
Income (loss) before taxes	743	432
Cash from (used in) operations	1,521	1,023
Operating segments | Moss
Disclosure of operating segments
Sales	8,929	3,073
Cost of sales, excluding depletion	(1,794)	(610)
Depletion	(3,480)	(1,547)
Income (loss) before taxes	3,655	916
Cash from (used in) operations	7,135	2,463
Operating segments | Mt. Carlton
Disclosure of operating segments
Royalty revenue	2,469	2,941
Depletion	(2,104)	(1,016)
Income (loss) before taxes	365	1,925
Cash from (used in) operations	2,112	3,210
Operating segments | Omolon
Disclosure of operating segments
Royalty revenue	4,792	562
Depletion	(3,093)	(399)
Income (loss) before taxes	1,699	163
Cash from (used in) operations	3,169
Operating segments | San Jose
Disclosure of operating segments
Royalty revenue	1,989	1,471
Depletion	(591)	(554)
Income (loss) before taxes	1,398	917
Cash from (used in) operations	1,736	1,377
Operating segments | Silvertip
Disclosure of operating segments
Royalty revenue		941
Depletion		(353)
Income (loss) before taxes		588
Cash from (used in) operations	189	897
Operating segments | Vivien
Disclosure of operating segments
Royalty revenue	1,839	2,070
Depletion	(254)	(563)
Income (loss) before taxes	1,585	1,507
Cash from (used in) operations	1,596	2,093
Operating segments | Other
Disclosure of operating segments
Royalty revenue	527	372
Depletion	(260)	(298)
Income (loss) before taxes	267	74
Cash from (used in) operations	670	272
Non-operating | Corporate
Disclosure of operating segments
Income (loss) before taxes	(8,174)	(8,847)
Operating expenses	(8,286)	(6,707)
Foreign exchange gain	664	(227)
Unrealized gain on warrants	1,891	(92)
Finance expense	(2,456)	(1,813)
Other	13	(8)
Cash from (used in) operations	(9,771)	(6,139)
Operating expenses	(6,451)	(4,919)
Foreign exchange gain	380	(160)
Income taxes paid	(4,076)	(1,230)
Other	$ 376	$ 170

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SEGMENT INFORMATION - Non Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Disclosure of geographical areas [line items]
Non-current assets	$ 335,170	$ 282,777
United States
Disclosure of geographical areas [line items]
Non-current assets	107,064	101,554
Canada
Disclosure of geographical areas [line items]
Non-current assets	73,820	74,842
Mexico
Disclosure of geographical areas [line items]
Non-current assets	64,847	20,936
Guatemala
Disclosure of geographical areas [line items]
Non-current assets	16,069
Chile
Disclosure of geographical areas [line items]
Non-current assets	10,073	10,073
Peru
Disclosure of geographical areas [line items]
Non-current assets	8,400	8,400
Dominican Republic
Disclosure of geographical areas [line items]
Non-current assets	5,160	6,195
Honduras
Disclosure of geographical areas [line items]
Non-current assets	5,097	5,160
Burkina Faso
Disclosure of geographical areas [line items]
Non-current assets	14,156	16,148
Australia
Disclosure of geographical areas [line items]
Non-current assets	9,152	15,089
Russia
Disclosure of geographical areas [line items]
Non-current assets	6,601	9,677
Cote d'Ivoire
Disclosure of geographical areas [line items]
Non-current assets	4,030	4,030
Ghana
Disclosure of geographical areas [line items]
Non-current assets	3,527	3,527
Argentina
Disclosure of geographical areas [line items]
Non-current assets	3,200	3,200
Various
Disclosure of geographical areas [line items]
Non-current assets	$ 3,974	$ 3,946

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FINANCIAL RISK MANAGEMENT - Summary of Risks (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total equity	$ 340,989	$ 241,706	$ 200,192	$ 200,192
Credit facility	32,000	69,000	12,300
Cash and cash equivalents	7,760	4,828	5,017	5,017
Non-current financial assets	1,000	7,148	$ 4,458
Common shares
Disclosure of nature and extent of risks arising from financial instruments [line items]
Non-current financial assets		7,006
Credit Facility
Disclosure of nature and extent of risks arising from financial instruments [line items]
Credit facility	32,000	69,000		$ 12,300
Capital Risk Management
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total equity	341,000	241,700
Capital Risk Management | Credit Facility
Disclosure of nature and extent of risks arising from financial instruments [line items]
Credit facility	32,000	69,000
Currency Risk
Disclosure of nature and extent of risks arising from financial instruments [line items]
Increase (decrease) in net (loss) income due to reasonably possible increase (decrease) in designated risk component	300
Increase (decrease) in other comprehensive (loss) income due to reasonably possible increase (decrease) in designated risk component	$ 1,800
Currency Risk | Canadian dollar
Disclosure of nature and extent of risks arising from financial instruments [line items]
Percentage of reasonably possible increase (decrease) in risk assumption	10.00%
Currency Risk | Australian dollar
Disclosure of nature and extent of risks arising from financial instruments [line items]
Percentage of reasonably possible increase (decrease) in risk assumption	10.00%
Liquidity Risk
Disclosure of nature and extent of risks arising from financial instruments [line items]
Cash and cash equivalents	$ 7,800	4,800
Working capital	35,100	19,900
Liquidity Risk | Credit Facility
Disclosure of nature and extent of risks arising from financial instruments [line items]
Remaining borrowing capacity	88,000
Other Risks | Common shares
Disclosure of nature and extent of risks arising from financial instruments [line items]
Non-current financial assets	$ 18,200	$ 7,100
Equity Price Risk
Disclosure of nature and extent of risks arising from financial instruments [line items]
Percentage of reasonably possible increase (decrease) in risk assumption	10.00%
Increase (decrease) in other comprehensive (loss) income due to reasonably possible increase (decrease) in designated risk component	$ 1,800

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FINANCIAL RISK MANAGEMENT - Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Level 3 | Market approach | Discount rate
Fair Value Measurements
Acquisition date fair values of royalty and other interests	$ 75,000	$ 74,000
Recurring | Level 1
Fair Value Measurements
Total financial assets, at fair value	18,190	7,006
Recurring | Level 1 | Common shares
Fair Value Measurements
Total financial assets, at fair value	18,190	7,006
Recurring | Level 2
Fair Value Measurements
Total financial assets, at fair value	48	142
Recurring | Level 2 | Warrants
Fair Value Measurements
Total financial assets, at fair value	48	$ 142
Recurring | Level 3
Fair Value Measurements
Total financial assets, at fair value	1,000
Recurring | Level 3 | Convertible debenture
Fair Value Measurements
Total financial assets, at fair value	$ 1,000

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CONTRACTUAL OBLIGATIONS (Details) oz in Millions	12 Months Ended
	Dec. 31, 2020 oz t $ / oz shares
La Bolsa | Gold Stream interests
CONTRACTUAL OBLIGATIONS
Percent of life of mine production	5.00%
Per ounce cash payment: Lesser of amount below and the then prevailing market price (unless otherwise noted) | $ / oz	450
La Colorada | Gold Stream interests
CONTRACTUAL OBLIGATIONS
Percent of life of mine production	100.00%
Per ounce cash payment: Lesser of amount below and the then prevailing market price (unless otherwise noted) | $ / oz	650
El Mochito | Silver Stream interests
CONTRACTUAL OBLIGATIONS
Percent of life of mine production	22.50%
Per ounce cash payment: Lesser of amount below and the then prevailing market price (unless otherwise noted), as a percentage of spot price of silver	25.00%
Silver delivered (in ounces) | oz	3.0
Percent of remaining life of mine production after delivery of silver	20.00%
Moss | Silver Stream interests
CONTRACTUAL OBLIGATIONS
Percent of life of mine production	100.00%
Per ounce cash payment: Lesser of amount below and the then prevailing market price (unless otherwise noted), as a percentage of spot price of silver	20.00%
Silver delivered (in ounces) | oz	3.5
Percent of remaining life of mine production after delivery of silver	50.00%
Silvertip
CONTRACTUAL OBLIGATIONS
Number of additional common shares to be issued | shares	1,400,000
Commercial production and cumulative throughput (in tonnes) | t	400,000

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SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Thousands		1 Months Ended		12 Months Ended
	Jan. 01, 2021 CAD ($) $ / shares	Feb. 28, 2021 USD ($) $ / shares	Jan. 31, 2021 USD ($)	Dec. 31, 2020 $ / shares	Dec. 31, 2020 USD ($) Options	Dec. 31, 2019 $ / shares	Dec. 31, 2019 USD ($) Options
Subsequent Events
Proceeds from sale of investments					$ 568
Number of stock options exercised | Options					650,580		508,964
Weighted-average exercise price | $ / shares				$ 1.25		$ 1.62
Repayment of credit facility					$ 57,000		$ 5,300
Quarterly dividend declared per common share | $ / shares		$ 0.01
Credit Facility
Subsequent Events
Repayment of credit facility					$ 57,000		$ 5,300
Hope Bay Buyback
Subsequent Events
Percentage of royalty bought back by Agnico		1.50%
Percentage of royalty owned		2.50%
Proceeds from buy back of royalty interest		$ 50,000
Percentage of royalty retained		1.00%
Investment Proceeds
Subsequent Events
Proceeds from sale of investments		$ 7,700
Royalty Proceeds
Subsequent Events
Bonus Royalty Payment received			$ 2,500
Repayment Of debt | Credit Facility
Subsequent Events
Repayment of credit facility		32,000
Amount available under the facility		$ 120,000
Exercise of Stock Options
Subsequent Events
Number of stock options exercised	589,351
Weighted-average exercise price | $ / shares	$ 2.32