Triple Flag Announces Q2 2024 Results, Management Appointments and 2028 GEOs Outlook
Triple Flag Announces Q2 2024 Results,
Management Appointments and 2028 GEOs
Outlook
TORONTO--(BUSINESS WIRE)--August 7, 2024--Triple Flag Precious Metals Corp. (with its
subsidiaries, “Triple Flag” or the “Company”) (TSX: TFPM, NYSE: TFPM) announced its
results for the second quarter of 2024 and declared a dividend of US$0.055 per common share to
be paid on September 16, 2024. All amounts are expressed in US dollars, unless otherwise
indicated.
“Triple Flag is firmly on track to achieve sales guidance of 105,000 to 115,000 gold equivalent
ounces (“GEOs”) for 2024, following record performance in the first half of this year.
Northparkes delivered another quarter of stronger GEOs driven by higher open-pit grades,
which underpinned year-over-year growth of 25% in operating cash flow per share for the
Company. Evolution Mining has continued to demonstrate significant value creation as the new
operator of Northparkes during a recent analyst and investor site visit. Most notably, a new sub-
level cave has been introduced into the potential mining sequence to establish a steadier
production profile from Northparkes through the next five years and ahead of longer-term
growth from the E22 orebody,” commented Shaun Usmar, CEO.
“We remain disciplined towards capital allocation during this period of strong precious metals
prices and are pleased to announce that the performance of our business has provided the basis
for our third consecutive annual increase of our dividend by 5% since we listed in 2021. Our
portfolio’s organic growth profile is strong and well positioned to deliver long-term value, with
expected sales of 135,000 to 145,000 GEOs in 2028. Over the past month, Triple Flag
maintained a solid pace of accretive acquisitions with an additional royalty interest in Tamarack
as well as new gold streams on the Agbaou and Bonikro mines. With current liquidity available
of nearly $640 million, we continue to advance an active and actionable deal pipeline.
Finally, I am pleased to announce the promotion of Eban Bari to Chief Financial Officer and
James Dendle to Chief Operating Officer, effective upon Sheldon Vanderkooy assuming the role
of Chief Executive Officer and Director in the fourth quarter of 2024. The promotion of Eban
and James is a testament to their expertise and dedication as core members of Triple Flag’s
high-performing team, as well as their integral role in building this business into the fourth-
largest precious metals streaming and royalty company. The CEO transition has progressed
seamlessly ahead of my departure in the fourth quarter of this year, which reflects the execution
of a multi-year succession development plan and the deep talent pool at Triple Flag.”
Q2 2024 Financial Highlights
Q2 2024 Q2 2023
Revenue $63.6 million $52.6 million
Gold Equivalent Ounces (“GEOs”) 1 27,192 26,616
Net (Loss) Earnings (per share) ($111.4 million) (-$0.55) $16.0 million ($0.08)
Adjusted Net Earnings2 (per share) $26.3 million ($0.13) $18.6 million ($0.09)
Operating Cash Flow $49.4 million $40.9 million
Operating Cash Flow per Share $0.25 $0.20
Adjusted EBITDA3 $53.0 million $42.1 million
Asset Margin4 92% 91%
GEOs Sold by Commodity and Revenue by Commodity
Three Months Ended June 30
($ thousands except GEOs) 2024 2023
GEOs1
Gold 16,124 17,134
Silver 11,068 8,215
Other - 1,267
Total 27,192 26,616
Revenue
Gold 37,701 33,856
Silver 25,880 16,232
Other - 2,503
Total 63,581 52,591
Corporate Updates
2024 GEOs Sales Guidance Maintained: Triple Flag remains on track to achieve its
sales guidance for 2024 of 105,000 to 115,000 GEOs. As previously announced, we
expect the GEOs contribution in 2024 from the higher-gold-grade E31 and E31N open
pits at Northparkes to be slightly higher in the second half of the year compared to the
first half due to the sequencing of mining and processing activities.
Quarterly Dividend Increased: Triple Flag’s Board of Directors declared an increased
quarterly dividend of US$0.055 per common share that will be paid on September 16,
2024, to shareholders of record at the close of business on August 30, 2024.
Triple Flag’s forward annualized dividend is now $0.22 per common share, an increase
of approximately 5% versus the previous annualized dividend of $0.21 per common
share. This represents the Company’s third consecutive annual increase of the dividend
since its May 2021 initial public offering.
Chief Executive Officer Transition: On July 23, 2024, Triple Flag announced that
Sheldon Vanderkooy will succeed Shaun Usmar as Chief Executive Officer and Director,
effective upon the departure of Mr. Usmar, who is stepping down to assume a new
leadership role with a major diversified mining company. Mr. Usmar will work closely
with Mr. Vanderkooy to ensure a seamless transition, anticipated to be finalized in the
fourth quarter of 2024.
Mr. Vanderkooy, a founding member of the Triple Flag team since its inception in 2016,
has played a pivotal role in the Company’s growth trajectory over the past eight years. As
a key member of the senior management team, he has been an integral part of building
Triple Flag, starting with our first investment, the Cerro Lindo silver stream. As Chief
Financial Officer since 2019, he was instrumental in delivering our successful $264
million initial public offering in 2021. His extensive background includes executive roles
with First Quantum Minerals and Inmet Mining, following a partnership at a leading
Canadian law firm specializing in mining M&A and financing transactions. With more
than 25 years of experience in the mining sector, Mr. Vanderkooy brings a wealth of
strategic insight and leadership to his new position. Refer to the July 23, 2024, press
release on our website, Triple Flag to Appoint Sheldon Vanderkooy as CEO and
Director, for further details.
Management Appointments: Triple Flag Precious Metals is pleased to announce the
promotion of Eban Bari to Chief Financial Officer and James Dendle to Chief Operating
Officer, effective upon Sheldon Vanderkooy assuming the role of Chief Executive
Officer and Director in the fourth quarter of 2024. The promotion of James and Eban is a
testament to their leadership and expertise as core members of Triple Flag’s high-
performing team, as well as their integral role in building this business into the fourth-
largest precious metals streaming and royalty company.
Eban, Vice President, Finance, has been with Triple Flag for six years. He is a CPA and
is responsible for all finance functions, including tax and treasury.
James joined Triple Flag in 2017, after having advised the Company in a technical
capacity since inception. A resource geologist by training with a multi-disciplinary
background, James heads corporate development for Triple Flag.
These promotions reflect Triple Flag’s commitment to recognizing internal talent, a
multi-year succession plan and that our true competitive advantage has always been our
exceptional team.
Team Addition: On July 1, 2024, Fraser Cunningham joined Triple Flag as Managing
Director of Triple Flag International Ltd., based in Bermuda. An investment banker by
training, Fraser has over 15 years of experience as a Managing Director at both
Scotiabank and Bank of America, working with a wide range of mining companies and
private equity groups providing financial evaluation expertise on various M&A and
capital market transactions, primarily in precious and base metals. Select transaction
experience with Triple Flag includes the Company’s 2021 initial public offering and 2020
acquisition of the flagship Northparkes gold and silver stream. Fraser holds an Honours
Bachelor of Arts with distinction from the Richard Ivey Business School of Western
University and is a CFA charterholder.
Triple Flag to Acquire Gold Streams on Agbaou and Bonikro. As previously
announced on August 7, 2024, Triple Flag has entered into definitive agreements for the
acquisition of 3% gold streams on each of the Agbaou and Bonikro producing gold mines
in Côte d'Ivoire, operated by Allied Gold Corp., for total cash consideration of $53
million. Refer to the August 7, 2024, press release on our website, Triple Flag to Acquire
3% Gold Streams on Allied Gold Corp.’s Agbaou and Bonikro Mines, for further details.
Acquisition of Additional Tamarack Royalty: On July 5, 2024, Triple Flag acquired an
additional 1.0% net smelter returns (“NSR”) royalty from Talon Metals Corp. for total
cash consideration of $8 million (“Additional Tamarack Royalty”). The royalty will be
paid out of Talon’s participating interest in the Tamarack nickel, copper, and cobalt
project. Triple Flag also received 8 million common share purchase warrants, each
exercisable to acquire one share of Talon Metals Corp. for an exercise price of C$0.20
per share for a period of two years. The royalty is subject to a buydown right to reduce
the Additional Tamarack Royalty to 0.6% for $5 million, exercisable for a period of two
years, subject to certain conditions. The Additional Tamarack Royalty is in addition to
the 1.11% NSR royalty that Triple Flag already owns on the Tamarack project.
2023 Sustainability Report Published: On June 25, 2024, Triple Flag released its 2023
Sustainability Report entitled “Resourcing Tomorrow”, showcasing the Company’s
sustainability approach, governance, and performance. Key highlights from this report
include the continued offset of all our Scope 1, 2 and 3 emissions to remain carbon
neutral since inception, the investment of nearly $470,000 by Triple Flag into specific
initiatives to support communities near our operators’ producing assets, and our
assistance in helping these communities access a total of $300,000 in additional funding
from the World Gold Council by nominating local initiatives focused on poverty
reduction.
Sustainalytics ESG Risk Rating Improvement: Subsequent to quarter-end, Triple Flag
was recognized by Morningstar Sustainalytics as an ‘ESG Industry Top Rated’ and ‘ESG
Regional Top Rated’ company. Improving 25% from our 2023 rating, Triple Flag’s new
ESG Risk Rating of 6.7 (negligible risk) is a testament to the commitment of our team
and mining partners to ESG excellence as a necessary requirement for maximizing long-
term stakeholder returns while limiting business disruption and maintaining the privilege
to operate in the regions we choose to invest. Triple Flag is now ranked 2nd out of 118
companies in the global precious metals sector.
Q2 2024 Portfolio Updates
Significant newsflow and milestones related to assets within our portfolio announced during the
second quarter of 2024 are detailed below.
Australia:
Northparkes (54% gold stream and 80% silver stream): Sales from Northparkes in Q2
2024 were 6,620 GEOs, compared to 6,286 GEOs in Q1 2024 and 3,339 GEOs in Q4
2023. We continue to expect higher grade open pit ore from E31 and E31N to contribute
to mill feed blend through at least 2025.
In June 2024, Evolution Mining hosted an analyst and investor site visit to showcase
recent developments and future growth strategies at Northparkes. Notably, partial mining
of E48 via a sub-level (“SLC”) cave is now being contemplated, as E48 is a well-
established mine that until December 2023 was being extracted by block cave. The
introduction of a potential SLC at E48 represents optimization of the mine plan under
Evolution’s operatorship as this portion of the upper area would have been lost to dilution
under the former block cave-only mine plan. With the first SLC at E48 expected to be
commissioned starting from the second quarter of 2025, as well as the orebody’s higher
reserve grade of 0.41 g/t Au, the operator now expects Northparkes to deliver a steadier
production profile following the depletion of the E31 and E31N open pits and through to
commissioning of E22. First production from the E22 orebody is now expected during
Evolution’s fiscal year ending June 30, 2029, with a current reserve grade of 0.37 g/t Au.
The average milled head grade at Northparkes from 2021 to 2023, prior to the
introduction of the higher-gold grade E31 and E31N open pits, was approximately 0.15
g/t Au.
For the E48 SLC, a pre-feasibility study is expected to be completed in the first quarter of
2025. Currently, the mine life for E48 SLC is expected to end in 2034.
The E22 block cave feasibility study was completed at the end of June 2024, as planned,
and is currently subject to review by the Evolution Board of Directors. Additionally, a
SLC and hybrid option study for E22 is expected to be completed by Evolution by June
30, 2025.
Beta Hunt (3.25% GR gold royalty and 1.5% NSR gold royalty): Royalties from Beta
Hunt in Q2 2024 equated to 1,444 GEOs, an improvement from 1,214 in Q1 2024 due to
the impact of wet weather conditions on processing operations.
On August 1, 2024, Westgold Resources Ltd. (“Westgold”) and Karora Resources Inc.
(“Karora”) closed the previously announced friendly merger pursuant to which, Westgold
has acquired 100% of the issued and outstanding common shares of Karora. Completion
of the transaction is expected to create one of the top 5 largest, ASX-listed gold producers
operating exclusively in Western Australia with a strong balance sheet, a significantly
expanded exploration fleet to deploy at Beta Hunt’s Fletcher zone, and a secondary TSX
listing.
The expansion project to increase mine capacity at Beta Hunt to 2 million tonnes per
annum remains on track for completion by the end of 2024.
Fosterville (2.0% NSR gold royalty): Royalties from Fosterville in Q2 2024 equated to
901 GEOs. Fosterville is also currently advancing an upgrade of the primary ventilation
system to sustain the mining rate in the Lower Phoenix zones in future years. The
operator expects the project to be completed by early 2025. Fosterville continues to focus
on productivity gains and cost control at the mine and the mill to maximize throughput
and reduce unit costs to ensure that the asset remains a sustainable producer of 175,000 to
200,000 ounces of gold annually.
Latin America:
Cerro Lindo (65% silver stream): Sales from Cerro Lindo in Q2 2024 were 8,584 GEOs.
Ongoing exploration at Cerro Lindo is primarily focused on extending the mineralization
of near mine targets known as Orebodies 8B, 9 and 6a, as well as the Patahuasi Millay
target located within Triple Flag’s stream area. Assays returned during the second quarter
of 2024 included 32.1 meters grading 4.56% Zn, 1.53% Pb and 80.33 g/t Ag at Orebody
8BC, which compares to the current proven and probable silver reserve grade of 22.6 g/t i.
Camino Rojo (2.0% NSR gold royalty on oxides): Royalties from Camino Rojo in Q2
2024 equated to 613 GEOs. 2024 production guidance for the asset remains unchanged at
110,000 to 120,000 ounces of gold.
Buriticá (100% silver stream, fixed ratio to gold): Sales from Buriticá in Q2 2024 were
1,455 GEOs. Throughout the second quarter of 2024, Buriticá was able to maintain
steady operations; however, due to the ongoing presence of illegal miners, certain areas
of the mine were avoided as a precautionary measure. The mine site continues to engage
closely with the surrounding community on illegal mining and is supported by the
National Army and National Police of Colombia.
North America:
Young-Davidson (1.5% NSR gold royalty): Royalties from Young-Davidson in Q2 2024
equated to 677 GEOs. On May 14, 2024, Alamos Gold Inc. (“Alamos”) released
intercepts from underground exploration drilling from the mid-mine, revealing a new
style of higher-grade gold mineralization in zones within the hanging wall of the 100%-
owned Young-Davidson producing mine.
These zones are located between 10 and up to 200 meters south of existing infrastructure
and reserves & resources, demonstrating production upside potential with grades well
above the current reserve grade of 2.31 g/t Au. Highlight intercepts include: 7.41 g/t Au
over 22 meters, 19.94 g/t Au over 4.55 meters, 5.24 g/t Au over 9 meters and 10.73 g/t
Au over 15.55 meters.
A total of $12 million has been budgeted for exploration at Young-Davidson in 2024. As
of December 31, 2023, Alamos estimates a mine life of approximately 15 years for
Young-Davidson based on current underground mining rates.
Florida Canyon (3.0% NSR gold royalty): Royalties from Florida Canyon in Q2 2024
equated to 549 GEOs. A technical report on Florida Canyon was released during the
second quarter of 2024, which highlighted average annual gold production of 70,000
ounces from 2024 through 2030 under the current heap leach operation.
Alamos completed the previously announced acquisition of Argonaut Gold on July 12,
2024, pursuant to which, Florida Canyon was spun out to a newly created junior gold
producer known as Florida Canyon Gold Inc. This new operator also received $10
million from Alamos in exchange for a 19.9% ownership interest following the spin-off.
On July 29, 2024, Integra Resources Corp. (“Integra”) announced a friendly acquisition
of Florida Canyon Gold Inc. The transaction is expected to close in the fourth quarter of
2024.
Gunnison and Johnson Camp Mine (3.5% to 16.5% copper stream and 1.5% GR
copper royalty): On May 15, 2024, Nuton LLC, a Rio Tinto venture, announced that it
has elected to proceed to Stage 2 of a two-stage work program on the use of copper heap
leach technologies for primary sulphide mineralization at Excelsior Mining’s 100%-
owned Johnson Camp Mine (“JCM”) property in Arizona.
Triple Flag owns a 1.5% GR copper royalty on JCM, which is also within the coverage
area of the Company’s separate oxide copper stream on Excelsior’s flagship Gunnison
property.
Under Stage 2, Nuton will make a $5 million payment to Excelsior for the use of existing
infrastructure at JCM and will also be responsible for funding all the operator’s costs
associated with the five-year milestone driven program. Successful completion of all
milestones would result in commercial production over several years.
Mining is expected to commence in 2024, with first Nuton copper production expected in
2025. A leach pad permit was previously received in 2023, with two amendments
expected to be completed in three to six months for future JCM operations. The site has
an existing and fully operational SXEW processing plant.
Revenue from JCM will be used to pay back the costs of Stage 2 at Nuton and the
fulfillment of royalty and stream obligations, as well as other project costs. Under a 2023
Preliminary Economic Assessment (“PEA”), JCM is currently designed to produce 492
million pounds of copper over a 21-year mine life based on conventional open pit mining.
Eskay Creek (0.5% NSR gold and silver royalty): During the second quarter of 2024,
Skeena Resources Ltd. (“Skeena”) announced it has secured a $750 million financing
package with Orion Resource Partners to advance the 100%-owned Eskay Creek gold
and silver project to production. Skeena’s most recent initial capital estimate for the
project is $528 million from a November 2023 definitive feasibility study.
Permitting for Eskay Creek is expected to be completed by the end of 2025, with full
construction expected in 2026. First gold pour is expected in the first half of 2027.
Hope Bay (1.0% NSR gold royalty): Exploration drilling during the second quarter of
2024 returned strong infill results in the Patch 7 area of the Madrid deposit, including
17.0 g/t gold over 25.8 meters. This emerging new mineralized area continues to show
excellent continuity as well as grades and thicknesses greater than average for the Madrid
deposit. Agnico Eagle expects that the 2024 drilling in this area should have a positive
impact on mineral resources and on mining scenarios for potential project redevelopment.
DeLamar (2.5% NSR gold and silver royalty, partial coverage): During the second
quarter of 2024, Integra announced that the mine plan of operations for the DeLamar
heap leach project has met the content permitting requirements by the US Bureau of Land
Management to proceed under the National Environmental Policy Act (“NEPA”) process.
A feasibility study on the project, which will include mineralized stockpiles, is expected
in the fourth quarter of 2024. A Record of Decision (“ROD”) under the NEPA process
for DeLamar is slated to be received by the end of 2026.
On July 29, 2024, Integra announced a friendly acquisition of Florida Canyon Gold Inc.
The transaction is expected to close in the fourth quarter of 2024.