TFPM.TO · 2023-08-08 12:00:00

Triple Flag Announces Record Q2 2023 Results and Dividend Increase 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 2023 and declared an increased dividend of US$0.0525 per

Financials Corporate Actions

NEWS RELEASE

Toronto, August 8, 2023

Triple Flag Announces Record Q2 2023 Results and Dividend

Increase

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 2023 and declared an increased dividend of US$0.0525 per

common share to be paid on September 15, 2023. All amounts are expressed in US dollars unless otherwise

indicated.

“I am pleased to announce another quarter of record results for Triple Flag, in which we achieved record GEOs,

revenue, adjusted EBITDA, and operating cash flow. The solid performance of our portfolio has provided the basis

for us to increase our annualized dividend by 5%, the second consecutive increase since we listed in 2021.”

commented Shaun Usmar, CEO. “Looking forward, our deal pipeline remains consistently active with actionable

opportunities, and we are especially encouraged by an increasing cadence of new discoveries, reserve replacement

and expansion at multiple assets across the portfolio such as Northparkes and Beta Hunt, and a number of

important catalysts and operational milestones achieved within our portfolio as detailed below.”

Q2 2023 Financial Highlights

Q2 2023 Q2 2022

Revenue $52.6 million $36.5 million

Gold Equivalent Ounces (“GEOs”)1 26,616 19,507

Operating Cash Flow3 $40.9 million $29.9 million

Net Earnings $16.0 million ($0.08/share) $10.9 million ($0.07/share)

Adjusted Net Earnings2 $17.7 million ($0.09/share) $14.9 million ($0.10/share)

Adjusted EBITDA4 $41.6 million $28.1 million

Asset Margin5 91% 90%

Q2 2023 RESULTS

GEOs Sold by Commodity, Revenue by Commodity, and Financial Highlights Summary Table

Three Months Ended June 30

($ thousands except GEOs, Asset Margin and per share numbers) 2023 2022

GEOs1

Gold 17,134 11,446

Silver 8,215 6,717

Other 1,267 1,344

Total 26,616 19,507

Revenue

Gold 33,856 21,412

Silver 16,232 12,564

Other 2,503 2,514

Total 52,591 36,490

Net Earnings 16,034 10,922

Net Earnings per Share 0.08 0.07

Adjusted Net Earnings2 17,660 14,854

Adjusted Net Earnings per Share2 0.09 0.10

Operating Cash Flow3 40,875 29,940

Operating Cash Flow per Share 0.20 0.19

Adjusted EBITDA4 41,630 28,144

Asset Margin5 91% 90%

Corporate Updates

 2023 Guidance: Our guidance for 2023 was introduced on February 21, 2023 and remains unchanged.

 Dividend: Triple Flag’s Board of Directors declared a quarterly dividend of US$0.0525 per common share

that will be paid on September 15, 2023, to the shareholders of record at the close of business on August

31, 2023. This increases the annualized dividend by 5% from US$0.20 per common share to US$0.21 per

share and is Triple Flag’s second consecutive annual increase of the dividend since its May 2021 initial

public offering.

 Maverix Integration: The integration of Maverix Metals is substantively complete, and we have delivered

the identified synergies outlined in our previous disclosures. Our acquisition and integration of Maverix

assets has added further scale, cash flow, diversification, and optionality.

 Agbaou Royalty Acquisition: In late June 2023, Triple Flag acquired a 2.5% net smelter return royalty on

the producing Agbaou gold mine from Auramet Capital Partners, L.P. for consideration of $15.5 million,

which included $13.5 million in cash and the remaining paid through an in‐kind contribution of an asset

held by Triple Flag. Agbaou is located in Côte d’Ivoire and is operated by Allied Gold Corp.

 Release of 2022 Sustainability Report: Early this July, we released our 2022 Sustainability Report entitled

“Progress In Motion”, showcasing our contributions and commitment to helping evolve market‐leading

sustainability performance. Subsequent to the quarter end, Triple Flag received a rating of AA in the MSCI

ESG Rating assessment, placing us amongst the leaders in the gold sector.

 Prieska Royalty and Stream: The closing conditions related to the royalty (0.8% GR royalty on copper,

zinc, gold and silver) have been met and the transaction has now closed. Orion Minerals Ltd expects to

complete an updated feasibility study later this year, after which Triple Flag has the right, but not the

obligation, to provide $80 million for a separate gold and silver stream on Prieska. Triple Flag’s funding is

complemented by investment from the Industrial Development Corporation of South Africa Limited

(“IDC”) and Clover Alloys (SA), a privately owned South African mining group that has a track record in

developing and operating chrome operations.

 Team: Subsequent to quarter end, David Lee joined Triple Flag as Vice President, Investor Relations. Prior

to joining Triple Flag, David held the role of Director, Investor Relations at Barrick Gold Corporation and

has held positions in equity research with National Bank Financial and Desjardins Capital Markets and in

Forensic Advisory at KPMG LLP.

Q2 2023 Portfolio Updates

Australia:

 Northparkes (54% gold stream and 80% silver stream): Sales from Northparkes in Q2 2023 were 4,558

GEOs based on sales of 3,657 ounces of gold and 70,857 ounces of silver. Northparkes has now mobilized

surface mining equipment for the commencement of open pit mining at E31, which hosts higher gold

grades than the ore reserve average.

 Fosterville (2.0% net smelter return (“NSR”) gold royalty): Royalties from Fosterville in Q2 2023 equated

to 1,697 GEOs. Fosterville produced 81,813 ounces of gold during the quarter. The Victorian EPA lifted the

prohibition notice on Fosterville with respect to low‐frequency noise that was imposed in late 2021, which

restricted underground activities from midnight to 6 a.m. The Fosterville mine returned to full operating

hours in June, with the additional resources focused on advancing delayed mine development and

upgrading of the primary ventilation system.

 Beta Hunt (3.25% gross revenue (“GR”) gold royalty): Royalties from Beta Hunt in Q2 2023 equated to

1,443 GEOs. Karora Resources Inc. (“Karora”) announced record quarterly consolidated gold production

of 40,823 ounces for Q2 2023 from its Beta Hunt and Higginsville mines in Western Australia. Over the

course of 2023, Karora has had meaningful exploration results which indicate that the Fletcher Shear Zone

is the third major gold system in the Hunt Block after the Western Flanks and A Zone.

Latin America:

 Cerro Lindo (65% silver stream): Sales from Cerro Lindo in Q2 2023 were 4,054 GEOs based on 337,096

ounces of silver sold. Nexa Resources S.A. (“Nexa”) expects to increase production in Q3 2023 due to

renewed access to high‐grade areas that were restricted in Q2 2023 after the rainfall‐related shutdown in

mid‐March due to the effects of Cyclone Yaku, which impacted mine development for fifteen days before

normal operations resumed. Nexa maintained 2023 guidance for Cerro Lindo, despite this interruption.

During Q2 2023, Nexa remained focused on expanding orebodies within the stream area.

 Buriticá (100% silver stream): Sales from Buriticá in Q2 2023 were 1,430 GEOs based on 118,626 ounces

of silver sold. Production expectations for Buriticá remain unaffected, despite a security incident earlier

in the year, which tragically resulted in two fatalities.

 Camino Rojo (2.0% NSR gold royalty): Royalties from Camino Rojo in Q2 2023 equated to 532 GEOs. Orla

Mining Ltd. reported that Camino Rojo remains on track to meet its 2023 guidance.

 Eastern Borosi (1.0% NSR gold and silver royalty): Calibre Mining Corp. announced high‐grade drilling

results within the Eastern Borosi District that includes 12.9 g/t Au over 8.5 meters Estimated True Width

(“ETW”), including 23.30 g/t gold over 1.6 meters ETW and 35.50 g/t gold over 1.24 meters ETW in Hole

BL‐23‐097.

 Polo Sur (2.0% NSR copper, molybdenum and gold royalty): Antofagasta plc (“Antofagasta”) progressed

studies relating to the development of Polo Sur; the project is expected to be reviewed by Antofagasta’s

Project Committee in 2023.

North America:

 Young‐Davidson (1.5% NSR gold royalty): Royalties from Young‐Davidson in Q2 2023 equated to 700

GEOs. Young‐Davidson produced 45,200 ounces of gold in Q2 2023. With production totaling 90,200

ounces through the first half of the year, and higher grades and throughput rates expected to drive

stronger production in the second half of the year, Young‐Davidson remains on track to achieve full year

production guidance of 185,000 – 200,000 ounces of gold.

 Gunnison (3.5% to 16.5% copper stream): Subsequent to quarter end, Excelsior Copper Corp. announced

that it has entered into an option agreement with Nuton LLC, a Rio Tinto venture, to further evaluate the

use of its Nuton™ copper heap leaching technologies at Excelsior’s Johnson Camp mine. Under the

agreement, Excelsior remains the operator and Nuton funds Excelsior’s costs associated with a two‐stage

work program at Johnson Camp. Johnson Camp is within the Triple Flag stream area and represents

additional upside to our underwritten investment case. Excelsior remains committed to the in‐situ leach

project at Gunnison, and is pursuing Johnson Camp with Nuton™ technologies in parallel.

 Nevada Copper (97.5% gold and silver stream): Nevada Copper Corp. provided a positive operational

update at Pumpkin Hollow during Q2 2023, with development mining progressing ahead of schedule, a

significant surface ore stockpile formed that is ready for the commencement of milling operations, and

positive infrastructure‐proximal drill results.

 Hope Bay (1.0% NSR gold royalty): Agnico Eagle Mines Limited (“Agnico”) had a total of nine exploration

drill rigs operating at the Doris and Madrid deposits and regionally during Q2 2023. Agnico’s objective is

to grow the mineral resources at both deposits to support future project studies and potentially resume

mining at Hope Bay. The drilling has resulted in good grades and thickness at Doris and significant

extensions to the Patch‐7 Zone.

 Moss (100% silver stream): Sales from Moss in Q2 2023 were 1,494 GEOs based on 768 ounces of gold

and 61,646 ounces of silver sold under the stream and related agreements. Elevation Gold Mining

Corporation reported strong mineralization intercepts near the Reynolds Pit, extending a significant

mineralized zone to the east, following an intersection of 225.6 meters of nearly continuous gold

mineralization with an average grade of 0.56 g/t gold. These results fall within an area that is fully

permitted for mining.

Rest of World:

 RBPlat (70% gold stream): Sales from RBPlat in Q2 2023 were 1,601 GEOs based on 1,600 ounces of gold

sold. Subsequent to quarter end, Impala Platinum Limited (“Implats”) secured control of Royal Bakofeng

Platinum (“RBPlat”), thereby concluding a prolonged competitive process. Implats is one of the world’s

largest integrated PGM producers and brings a strong balance sheet as well as a track record of excellent

operational performance and productivity at neighboring mines. RBPlat’s assets are contiguous and

complementary to Implats’ operations, securing a significant Western Limb production base. We are

encouraged by the outlook for this asset, particularly as the Styldrift mine ramps up to nameplate hoisting

capacity of 230kt per month.

 ATO (25% gold stream and 50% silver stream): Sales from the ATO stream and related interests in Q2 2023

were 2,843 GEOs based on 2,678 ounces of gold and 14,609 ounces of silver sold. Subsequent to quarter

end, Steppe Gold Ltd. signed a binding term sheet for $150 million dollars to fully fund the Phase 2

expansion at ATO. Triple Flag’s gold and silver stream directly benefits from this investment that extends

the ATO life of mine by a further 12 years to 2036, without the need for additional investment from Triple

Flag.

Conference Call Details

Triple Flag has scheduled an investor conference call at 11:00 a.m. ET (8:00 a.m. PT) on Wednesday, August 9,

2023, to discuss the results reported in today’s earnings announcement. The live webcast can be accessed by

visiting the Events and Presentations page on the Company’s website at: www.tripleflagpm.com. An archived

version of the webcast will be available on the website for two weeks following the webcast.

Live Webcast: https://events.q4inc.com/attendee/816200992

Dial‐In Details:

Toll‐Free (U.S. & Canada): +1 (888) 330‐2384

International: +1 (647) 800‐3739

Conference ID: 4548984

Replay (Until August 23):

Toll‐Free (U.S. & Canada): +1 (800) 770‐2030

International: +1 (647) 362‐9199

Conference ID: 4548984

About Triple Flag

Triple Flag is a pure play, gold‐focused, emerging senior streaming and royalty company. We offer bespoke

financing solutions to the metals and mining industry with exposure primarily to gold and silver in the Americas

and Australia, with a total of 229 assets, including 15 streams and 214 royalties. These investments are tied to

mining assets at various stages of the mine life cycle, including 29 producing mines and 200 development and

exploration stage projects. Triple Flag is listed on the Toronto Stock Exchange and New York Stock Exchange, under

the ticker “TFPM”.

Contact Information

Investor Relations:

David Lee

Vice President, Investor Relations

Tel: +1 (416) 304‐9770

Email: [email protected]

Media:

Gordon Poole, Camarco

Tel: +44 (0) 7730 567 938

Email: [email protected]

Forward‐Looking Information

This news release contains “forward‐looking information” within the meaning of applicable Canadian securities

laws and “forward‐looking statements” within the meaning of the United States Private Securities Litigation

Reform Act of 1995, respectively (collectively referred to herein as “forward‐looking information”). Forward‐

looking information may be identified by the use of forward‐looking terminology such as “plans”, “targets”,

“expects”, “is expected”, “budget”, “scheduled”, “estimates”, “outlook”, “forecasts”, “projection”, “prospects”,

“strategy”, “intends”, “anticipates”, “believes”, or variations of such words and phrases or terminology which

states that certain actions, events or results “may”, “could”, “would”, “might”, “will”, “will be taken”, “occur” or

“be achieved”. Forward‐looking information in this news release include, but are not limited to, statements with

respect to the Company’s preliminary sales and revenue information for the second quarter of 2023, the release

of its financial results for the second quarter of 2023, the conduct of the conference call to discuss said results,

identified synergies from the integration of Maverix Metals Inc., the payment of a dividend, developments in

respect of the Company’s portfolio of royalties and streams and those developments at certain of the mines,

projects or properties that underlie the Company’s interests. In addition, any statements that refer to

expectations, intentions, projections or other characterizations of future events or circumstances contain

forward‐looking information. Statements containing forward‐looking information are not historical facts but

instead represent management’s expectations, estimates and projections regarding possible future events or

circumstances.

The forward‐looking information included in this news release is based on our opinions, estimates and

assumptions considering our experience and perception of historical trends, current conditions and expected

future developments, our assumptions regarding the acquisition of Maverix Metals Inc. (including our ability to

derive the anticipated benefits therefrom), as well as other factors that we currently believe are appropriate and

reasonable in the circumstances. The forward‐looking information contained in this news release is also based

upon a number of assumptions, including the ongoing operation of the properties in which we hold a stream or

royalty interest by the owners or operators of such properties in a manner consistent with past practice; the

accuracy of public statements and disclosures made by the owners or operators of such underlying properties;

and the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet

in production. These assumptions include, but are not limited to, the following: assumptions in respect of current

and future market conditions and the execution of our business strategies, that operations, or ramp‐up where

applicable, at properties in which we hold a royalty, stream or other interest, continue without further

interruption through the period, and the absence of any other factors that could cause actions, events or results

to differ from those anticipated, estimated, intended or implied. Despite a careful process to prepare and review

the forward‐looking information, there can be no assurance that the underlying opinions, estimates and

assumptions will prove to be correct. Forward‐looking information is also subject to known and unknown risks,

uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements

to be materially different from those expressed or implied by such forward‐looking information. Such risks,

uncertainties and other factors include, but are not limited to, those set forth under the caption “Risk Factors” in

our most recently filed annual information form which is available on SEDAR at www.sedar.com and on EDGAR at

www.sec.gov. For clarity, mineral resources that are not mineral reserves do not have demonstrated economic

viability and inferred resources are considered too geologically speculative for the application of economic

considerations.

Although we have attempted to identify important risk factors that could cause actual results or future events to

differ materially from those contained in forward‐looking information, there may be other risk factors not

presently known to us or that we presently believe are not material that could also cause actual results or future

events to differ materially from those expressed in such forward‐looking information. 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, which speaks only as of the date made. The forward‐looking information contained in this news

release represents our expectations as of the date of this news release and is subject to change after such date.

We disclaim any intention or obligation or undertaking to update or revise any forward‐looking information

whether as a result of new information, future events or otherwise, except as required by applicable securities

laws. All the forward‐looking information contained in this news release is expressly qualified by the foregoing

cautionary statements.

Cautionary Statement to U.S. Investors

Information contained or referenced in this press release or in the documents referenced herein concerning the

properties, technical information and operations of Triple Flag has been prepared in accordance with

requirements and standards under Canadian securities laws, which differ from the requirements of the U.S.

Securities and Exchange Commission (“SEC”) under subpart 1300 of Regulation S‐K (“S‐K 1300”). Because the

Company is eligible for the Multijurisdictional Disclosure System adopted by the SEC and Canadian Securities

Administrators, Triple Flag is not required to present disclosure regarding its mineral properties in compliance

with S‐K 1300. Accordingly, certain information contained in this press release may not be comparable to similar

information made public by US companies subject to reporting and disclosure requirements of the SEC.

Technical and Third‐Party Information:

Triple Flag does not own, develop or mine the underlying properties on which it holds stream or royalty interests.

As a royalty or stream holder, Triple Flag has limited, if any, access to properties included in its asset portfolio. As

a result, Triple Flag is dependent on the owners or operators of the properties and their qualified persons to

provide information to Triple Flag and on publicly available information to prepare disclosure pertaining to

properties and operations on the properties on which Triple Flag holds stream, royalty, or other similar interests.

Triple Flag generally has limited or no ability to independently verify such information. Although Triple Flag does

not believe that such information is inaccurate or incomplete in any material respect, there can be no assurance

that such third‐party information is complete or accurate.

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