Triple Flag Announces Record Q3 2024 Results
Triple Flag Announces Record Q3 2024
Results
TORONTO--(BUSINESS WIRE)--November 5, 2024--Triple Flag Precious Metals Corp. (with
its subsidiaries, “Triple Flag” or the “Company”) (TSX: TFPM, NYSE: TFPM) announced its
results for the third quarter of 2024 and declared a dividend of US$0.055 per common share to
shareholders of record at the close of business on November 29, 2024. All amounts are expressed
in US dollars, unless otherwise indicated.
“With record GEOs sales, record revenue and most importantly, record operating cash flow per
share, I am very pleased to present our third quarter results to our shareholders. We are well on
track to achieve guidance for 2024 of 105,000 to 115,000 GEOs. Our world-class portfolio has
delivered over 70% year-on-year growth in operating cash flow per share within a strong
precious metals price environment, driven by sales from our cornerstone assets Northparkes and
Cerro Lindo. Towards the end of the third quarter, we were pleased that Triple Flag was
included in the S&P/TSX Composite Index, enabling us to benefit from exposure to a broader
investor base as well as greater liquidity and trading flexibility. As we conclude 2024, Triple
Flag is well-positioned to continue delivering higher sales to drive increasing cash flow,
accretive acquisitions, as well as a demonstrated commitment for returns to shareholders,”
commented Sheldon Vanderkooy, CEO.
Q3 2024 Financial Highlights
Q3 2024 Q3 2023
Revenue $73.7 million $49.4 million
Gold Equivalent Ounces (“GEOs”)1 29,773 25,629
Net Earnings (Loss) (per share) $29.6 million ($0.15) ($6.0 million) (-$0.03)
Adjusted Net Earnings2 (per share) $29.6 million ($0.15) $20.4 million ($0.10)
Operating Cash Flow $61.8 million $36.8 million
Operating Cash Flow per Share $0.31 $0.18
Adjusted EBITDA3 $63.4 million $39.9 million
Asset Margin4 92% 90%
GEOs Sold by Commodity and Revenue by Commodity
Three Months Ended September 30
($ thousands except GEOs) 2024 2023
GEOs1
Gold 19,732 15,115
Silver 9,928 9,500
Other 113 1,014
Total 29,773 25,629
Revenue
Gold 48,823 29,149
Silver 24,565 18,321
Other 281 1,955
Total 73,669 49,425
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. We expect to achieve GEOs sales
between the midpoint and high-end of guidance for 2024.
• Strong Balance Sheet: As of September 30, 2024, our net debt position was
approximately $11 million. With current liquidity available of nearly $690 million, we
continue to advance an active and actionable deal pipeline.
• 2028 GEOs Sales Outlook Reiterated: Triple Flag’s sales outlook of 135,000 to
145,000 GEOs in 2028 remains unchanged. Our long-term sales outlook continues to be
based on metal price assumptions of $1,850/oz Au, $22/oz Ag and $4.00/lb Cu.
• Quarterly Dividend Maintained: Triple Flag’s Board of Directors declared a quarterly
dividend of US$0.055 per common share that will be paid on December 16, 2024, to
shareholders of record at the close of business on November 29, 2024.
• Share Buyback Activity: During the third quarter of 2024, Triple Flag bought back
92,700 shares in the open market for approximately C$2.0 million.
As of September 30, 2024, 547,400 shares have been repurchased under the current
NCIB.
• S&P/TSX Composite Index Inclusion: On September 23, 2024, Triple Flag was added
to the S&P/TSX Composite Index, the headline index comprised of the largest and most
liquid companies on the Toronto Stock Exchange. Our inclusion in the S&P/TSX
Composite Index provides exposure to a broader investor base leading to greater liquidity
and trading flexibility.
• Community Support: Through the World Gold Council’s Community Development
Program, Triple Flag has successfully achieved a total of $200,000 in funding on behalf
of the surrounding communities of our mining assets in Northparkes (Australia), Stawell
(Australia), and Cerro Lindo (Peru), that will go towards sustainable development
projects with tangible environmental and social impacts.
Q3 2024 Portfolio Updates
Significant newsflow and milestones related to assets within our portfolio announced during the
third quarter of 2024 are detailed below.
Australia:
• Northparkes (54% gold stream and 80% silver stream): Sales from Northparkes in Q3
2024 were 6,738 GEOs, compared to 6,620 GEOs in Q2 2024 and 3,919 GEOs in Q3
2023. We continue to expect higher grade open pit ore from E31 and E31N to contribute
to mill feed blend through at least 2025.
Development of the sub-level (“SLC”) cave at E48 commenced in July 2024 with
commissioning on-track for the second quarter of 2025. This orebody’s higher reserve
grade of 0.41 g/t Au is expected to partially offset the depletion of the E31 and E31N
open pits, with a current minelife expected to end in 2034. A pre-feasibility study for the
E48 SLC remains scheduled for completion in the first quarter of 2025.
First production from the E22 orebody is expected during Evolution’s fiscal year ending
June 30, 2029, with a current reserve grade of 0.37 g/t Au. A SLC hybrid option study for
E22 is expected to be completed by June 30, 2025.
Additionally, exploration at the Major Tom and E51 targets continues to return
encouraging results on the growth potential for near surface copper-gold mineralization.
Both open pit targets are located within three kilometers of the processing plant, with
recent assays including 26.0 meters grading 1.04% copper and 0.15 g/t gold. Drills
continue to turn with the objective of delineating the full extent of mineralization at both
Major Tom and E51. A maiden resource for E51 is expected in the second quarter of
2025.
• Beta Hunt (3.25% GR gold royalty and 1.5% NSR gold royalty): Royalties from Beta
Hunt in Q3 2024 equated to 1,101 GEOs.
In September 2024, Westgold declared an inaugural exploration target for the Fletcher
Zone of Beta Hunt totaling 23 to 27 million tonnes at 2.1 to 2.5 g/t Au containing 1.6 to
2.1 million ounces of gold. This compares to the current resource base at Beta Hunt of
17.7 million tonnes grading 2.74 g/t Au at 1.6 million ounces in the M&I category
(inclusive) and 12.9 million tonnes grading 2.63 g/t Au at 1.1 million ounces in the
inferred category, comprising of the Western Flanks, A Zone, Larkin and Mason
deposits.
The Fletcher Zone is a substantial discovery at Beta Hunt and is interpreted to represent a
new gold mineralized structure parallel to the Western Flanks deposit of the mine, 300
meters to the west. Western Flanks is currently the primary source of gold ore for Beta
Hunt. Across a two-kilometer strike zone, a minimum of three drill rigs is expected to
focus on resource definition drilling over the near term at the Fletcher Zone. Westgold is
also advancing decline development from Western Flanks towards the Fletcher Zone to
access a potential new mining front.
Separately, the expansion project to achieve consistent mine throughput at Beta Hunt of 2
million tonnes per annum is expected to be completed during the first half of 2025.
Westgold is developing a comprehensive infrastructure replacement and upgrade plan to
support the expected higher productivity levels at Beta Hunt, focusing primarily on
electrical, ventilation and water distribution networks.
• Fosterville (2.0% NSR gold royalty): Royalties from Fosterville in Q3 2024 equated to
1,254 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 Q3 2024 were 6,991 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.
• Camino Rojo (2.0% NSR gold royalty on oxides): Royalties from Camino Rojo in Q3
2024 equated to 635 GEOs. In October 2024, Orla Mining announced an increase in
production guidance for Camino Rojo to 130,000 to 140,000 ounces of gold. This
represented the second increase in production guidance for the asset in 2024, following
the introduction of initial guidance of 110,000 to 120,000 ounces of gold and then a
subsequent increase to 120,000 to 130,000 ounces of gold in August 2024.
Strong year-to-date outperformance at Camino Rojo has been driven by improved
recoveries from finer crushing, higher tonnes stacked and increased processed grade.
• Buriticá (100% silver stream, fixed ratio to gold): Sales from Buriticá in Q3 2024 were
1,834 GEOs. Throughout 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 with support by national institutions including
the National Police of Colombia.
North America:
• Young-Davidson (1.5% NSR gold royalty): Royalties from Young-Davidson in Q3 2024
equated to 711 GEOs. In September 2024, Alamos narrowed production guidance for
2024 to 180 to 190 thousand ounces of gold, and reiterated 2025 and 2026 guidance of
180 to 195 thousand ounces of gold for each year.
• Florida Canyon (3.0% NSR gold royalty): Royalties from Florida Canyon in Q3 2024
equated to 454 GEOs. The previously announced acquisition of Florida Canyon Gold Inc.
by Integra Resources remains scheduled to close in November 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
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.
In October 2024, Excelsior announced that all permits to commence operations at JCM
has been received. This follows the commencement of construction at JCM in August
2024. First Nuton copper production continues to be expected in the first half of 2025.
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, JCM is currently designed to produce 492 million
pounds of copper over a 21-year mine life based on conventional open pit mining.
• Hope Bay (1.0% NSR gold royalty): Exploration drilling during the third quarter of 2024
returned strong results in the Patch 7 area of the Madrid deposit, including 18.3 g/t gold
over 16.4 meters and 16.8 g/t gold over 27.3 meters. This 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 increase mineral
resources and upgrade the mineral resource classification at year-end.
Further drilling in the fourth quarter of 2024 will be supported by a newly constructed,
2.3 kilometer surface exploration track that connects the nearby Madrid infrastructure
with Patch 7. Agnico Eagle highlighted that this track could be used for potential future
development of the Patch 7 area.
Agnico Eagle expects to report results from an internal technical evaluation by early
2026, including an evaluation on whether to retrofit the existing Doris mill or build a new
mill closer to Madrid.
• South Railroad (2.0% NSR gold and silver royalty, partial coverage): In October 2024,
Orla announced permitting and construction timelines for the 100%-owned South
Railroad heap leach project located in Nevada. A record of decision for the project is
expected in mid-2026, with first gold pour in 2027.
Separately, Orla is expected to complete a 23,000-meter drill program at South Railroad
in 2024. This program is aimed at testing potential extensions of known oxide zones,
including at the Dark Star deposit within Triple Flag’s royalty coverage area. Recent
assays are encouraging, highlighting the oxide and sulphide growth potential of Dark
Star, including 0.67 g/t Au over 45.7 meters.
• Fenn-Gib (1.0% to 1.5% NSR gold and silver royalty): Fenn-Gib is a 100%-owned gold
deposit that straddles the Pipestone fault in Northern Ontario, operated by Mayfair Gold.
Conceptually, the deposit is currently designed to be mined by bulk tonnage, open pit
methods. An updated resource was released in September 2024 of 181 million tonnes
grading 0.74 g/t Au at 4.3 million ounces in the indicated category and 8.9 million tonnes
grading 0.49 g/t Au at 141 thousand ounces. A pre-feasibility study remains underway.
Rest of World:
• Impala Bafokeng (70% gold stream): Sales from Impala Bafokeng in Q3 2024 were
1,381 GEOs. Development of the asset’s value driver, Styldrift, remains ongoing with a
steady ramp-up expected to deliver improved efficiencies given current market
conditions. During the third quarter of 2024, Impala Platinum Holdings Limited
(“Implats”) commenced a restructuring process to rationalize and optimize labor
deployment across corporate and operational functions. The integration of processing
facilities across the Western Limb operations of Impala Rustenburg and Impala Bafokeng
has started, resulting in improved plant availability and recovery. Implats expects
monthly milled throughput of 230 thousand tonnes at Styldrift by the end of its 2027
fiscal year.
• Agbaou (2.5% NSR gold royalty and 3.0% gold stream): Sales from our royalty interest
on Agbaou equated to 164 GEOs in Q3 2024. Sales from our stream interest on Agbaou
were 1,339 GEOs, including 1,202 GEOs related to the period from January 1, 2024, to
August 14, 2024. The current exploration program at Agbaou is the largest in the asset’s
operating history. During the third quarter of 2024, 8,003 meters were drilled at Agbaou,
focused on the North Pit Extension and Agbaou South.
• Bonikro (3.0% gold stream): Sales from Bonikro in Q3 2024 were 2,036 GEOs,
including 1,890 GEOs related to the period from January 1, 2024, to August 14, 2024.
Ongoing exploration at Bonikro is focused on the Oume and Hire targets, with a total of
20,582 meters drilled in the third quarter of 2024.
• Koné (2.0% NSR gold royalty, partial coverage): In July 2024, Montage Gold Corp.
("Montage") announced that the 100%-owned Koné gold project in Côte d'Ivoire was
fully permitted.
In August 2024, Montage completed a C$180 million brokered private placement to
advance the Koné project, which included a new strategic investment by Zijin Mining in
exchange for a 9.9% ownership interest. Additionally, the Lundin family increased their
ownership interest in Montage to 19.9% from approximately 18% previously.
In October 2024, Montage announced it has secured a $825 million financing package
with Wheaton Precious Metals and Zijin Mining to fully advance Koné to production.
Pro-forma liquidity available to Montage is now approximately $970 million versus
initial capital of $712 million as per the January 2024 definitive feasibility study for
Koné.
• ATO (25% gold stream and 50% silver stream): Sales from the ATO streams in Q3 2024
were 1,591 GEOs. On August 1, 2024, the previously announced merger of Steppe Gold
and Boroo Gold was completed. The completion of this acquisition has established
Steppe Gold as the largest gold producer in Mongolia, providing further financial
strength, asset diversification and scale.
Commissioning of the ATO Phase 2 Expansion project remains on track for the first half
of 2026.
On March 15, 2024, Triple Flag entered into an agreement with Steppe Gold to acquire a
prepaid gold interest. Under the terms of the agreement, the Company made a cash
payment of $5 million to acquire the prepaid gold interest, which provides for the
delivery of 2,650 ounces of gold that will be delivered by Steppe Gold over five months.
Triple Flag expects the August and September deliveries under the prepaid gold interest
to be received by the end of the fourth quarter of 2024.
• Prieska (0.8% GR royalty and 84% gold and silver stream, fixed ratio): Orion Minerals
Limited (“Orion Minerals”) is advancing mine scheduling and design work for the fully
permitted Prieska copper and zinc project. The updated feasibility study is expected to be
completed in early 2025.
Conference Call Details
A conference call and live webcast presentation will be held on November 6, 2024, starting at
9:00 a.m. ET (6:00 a.m. PT) to discuss these results. 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 one year following the
webcast.
Live Webcast: https://events.q4inc.com/attendee/349088597
Dial-In Details:
Toll-Free (U.S. & Canada): +1 (888) 330-2384
International: +1 (647) 800-3739
Conference ID: 4548984, followed by # key
Replay (Until November 20):
Toll-Free (U.S. & Canada): +1 (800) 770-2030
International: +1 (647) 362-9199
Conference ID: 4548984, followed by # key
About Triple Flag Precious Metals
Triple Flag is a pure play, precious-metals‐focused 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 235 assets, including 16 streams and 219
royalties. These investments are tied to mining assets at various stages of the mine life cycle,
including 30 producing mines and 205 development and exploration stage projects, and other
assets. Triple Flag is listed on the Toronto Stock Exchange and New York Stock Exchange,
under the ticker “TFPM”.
Qualified Person
James Lill, Director, Mining for Triple Flag Precious Metals and a “qualified person” under NI
43-101 has reviewed and approved the written scientific and technical disclosures contained in
this press release.
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
includes, but is not limited to, statements with respect to the Company’s annual and five-year
guidance, the payment of a quarterly dividend, operational and corporate developments for the
Company, developments in respect of the Company’s portfolio of royalties and streams and
related interests and those developments at certain of the mines, projects or properties that
underlie the Company’s interests, strengths, characteristics, the conduct of the conference call to
discuss the financial results for the third quarter of 2024, and our assessments of, and
expectations for, future periods (including, but not limited to, the long-term sales outlook for
GEOs). 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 in light of our experience and perception of historical trends, current
conditions and expected future developments, 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 and Risk Management” in our management’s
discussion and analysis in respect of the third quarter of 2024 and the caption “Risk Factors” in
our most recently filed annual information form, each of which is available on SEDAR+ at
www.sedarplus.ca and on EDGAR at www.sec.gov. In addition, we note that 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.