Triple Flag Reports Strong Q1 2022 Results Triple Flag Precious Metals Corp. (with its subsidiaries, “Triple Flag” or the “Company”) (TSX:TFPM, TSX:TFPM.U) announced its results for the first quarter of 2022 and declared a dividend of US$0.0475 per common share to be
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NEWS RELEASE
Toronto, May 10, 2022
Triple Flag Reports Strong Q1 2022 Results
Triple Flag Precious Metals Corp. (with its subsidiaries, “Triple Flag” or the “Company”) (TSX:TFPM, TSX:TFPM.U)
announced its results for the first quarter of 2022 and declared a dividend of US$0.0475 per common share to be
paid on June 15, 2022. All dollar amounts are expressed in US dollars.
“Triple Flag had a strong first quarter of 2022 , continuing its track record of growth,” commented Shaun Usmar,
Triple Flag founder and CEO. “As inflation continues to present itself throughout the global supply chain, our royalty
and streaming business model being insulated from the typical operating and capital cost inflation seen by mining
companies, coupled with the diversified and resilient nature of our high-quality portfolio, continue to protect Triple
Flag from these pressures. In addition, the favorable commodity price backdrop provides upside benefit across our
high-quality portfolio at no cost to Triple Flag, as our counterparties invest in their operations.
“We were fortunate to visit Northparkes during the quarter with COVID-related travel restrictions easing. The visit
underscored to us the quality of the management team, the immense surface and underground infrastructure in
place at Northparkes, and the significant optionality associated with resource conversion. Our visit reinforced our
belief that there is the possibility to discover new porphyry deposits, and the potential to expand the capacity of
the mine. In a world seeking copper to enable decarbonization and climate change imperatives, we believe that
Northparkes is ideally positioned for a long and prosperous future, and we are proud to be a part of it via our gold
and silver byproduct streams and community support programs.
“As we previously announced, we had first quarter revenue of $37.8 million, up 7% from the same period in the
prior year, translating to metal sales of 20,113 GEOs, which was in line with our guidance. Additionally, in March
we released our updated 5- and 10 -year outlook figures for average annual production of 110,000 GEOs and
105,000 GEOs, respectively, once again showcasing the fully funded, embedded growth we have within our existing
portfolio.“
Q1 2022 Financial Highlights
• 7% increase in Revenue to $37.8 million, from $35.4 million in Q1 2021.
• 2% increase in gold equivalent ounces (“GEOs”)1 sold to 20,113, from 19,714 in Q1 2021.
• 83% increase in Net Earnings to $15.9 million, from $8.7 million in Q1 2021.
• 12% increase in Adjusted Net Earnings2 to $15.5 million, from $13.8 million in Q1 2021.
• 9% decrease in Operating Cash Flow to $ 26.4 million, from $ 28.8 million in Q 1 2021, largely due to
differences in working capital changes as a result of timing of bonus payments.
• 1% increase in Adjusted EBITDA3 to $30.5 million, from $30.1 million in Q1 2021.
Q1 2022 RESULTS
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• Strong Asset Margin4 of 92%, in line with the same period in the prior year.
• Cash Costs per GEO5 of $151, in line with the same period in the prior year.
• Quarterly dividend declared of US$0.0475 per common share that will be paid on June 15, 2022.
GEOs Sold by Commodity, Revenue by Commodity, and Financial Highlights Summary Table
Three Months Ended March 31
($ thousands except GEOs, Asset Margin, Total Margin, Cash Costs per GEO,
and per share numbers) 2022 2021
GEOs1
Gold 10,223 8,826
Silver 8,517 10,155
Other 1,373 733
Total 20,113 19,714
Revenue
Gold 19,188 15,832
Silver 15,990 18,218
Other 2,577 1,316
Total 37,755 35,366
Net Earnings 15,889 8,679
Net Earnings per Share 0.10 0.06
Adjusted Net Earnings2 15,471 13,791
Adjusted Net Earnings per Share2 0.10 0.10
Operating Cash Flow 26,359 28,809
Adjusted EBITDA3 30,457 30,097
Asset Margin4 92% 92%
Total Margin4 81% 85%
Cash Costs per GEO5 151 151
Corporate Updates
• Prieska Royalty and Stream Acquisition: Subsequent to quarter-end, Triple Flag signed non-binding term
sheets with Orion Minerals Ltd. (“ Orion”) for a A$10 million gross revenue return and an US$80 million
gold and silver stream on Orion’s Prieska Copper- Zinc Project (“ Prieska”) in South Africa. The gross
revenue return (“GRR”) provides Triple Flag with quarterly cash payments equal to 0.8% of gross revenue
in exchange for an advance payment of A$10 million. The GRR is conditional on Orion raising A$20 million
of additional funding in equity or an alternative form to Triple Flag’s satisfaction. The US$80 million gold
and silver stream provides for Orion to deliver to Triple Flag 84% of payable gold and 84% of payable silver
until certain step-down milestones are reached, and thereafter 50% of payable gold and 50% of payable
silver. Payable metals are to be determined using a fixed ratio to copper. Triple Flag will make ongoing
payments of 10% of the spot gold and silver price for each ounce delivered. Funding of the stream is
conditional upon Orion finalizing an executable mine plan to Triple Flag’s satisfaction. Prieska is a p ast
producing brownfield project in the Northern Cape with a large mineral resource containing copper, zinc,
gold, and silver. Triple Flag has also received a right of first refusal for future royalty or stream financing
on Prieska.
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• Sofia Royalty Acquisition: In May 2022, Triple Flag acquired a 1 .0% net smelter returns (“ NSR”) royalty
on the Sofia gold project for $5 million, a highly prospective, high-sulphidation epithermal gold deposit in
Chile.
• Beaufor Royalty Acquisition: As previously disclosed, during the first quarter of 2022, Triple Flag acquired
an existing 2.0% NSR royalty (with a milestone-based step-down to 1.0%) on the Beaufor Mine for C$6.75
million. In connection with this transaction, the Company provided Monarch Mining Corpo ration
(“Monarch”) with additional funding of C$4.5 million in consideration for increasing the royalty rate to
2.75% and eliminating the step-down.
• Talon Royalty Buy -down and Disposition of Equity Interest : As previously disclosed, during the first
quarter of 2022, Talon Metals Corp. (“Talon Metals”), through its U.S. subsidiary Talon Nickel (USA) LLC
(“Talon Nickel” and, collectively with Talon Metals, “Talon”), exercised its right to reduce the NSR royalty
rate under the Tamarack royalty agreement from 3.5% to 1.85% of Talon’s interest in the Tamarack Nickel
Project (“Tamarack”) in exchange for a payment of $4.5 million. This is consistent with the assumptions
underpinning our five - and ten-year GEOs outlook. Triple Flag acquired its royalty on Tamarack for $5
million in March 2019 and received 5 million warrants for the purchase of common shares as part of the
transaction. Subsequently, we have received $4.5 million back from the buy -down and disposed of our
equity interest in Talon for gross proceeds of C$3.7 million (net of C$0.4 million in payments for the
warrants), and have now fully recouped our cost on the royalty before Tamarack has started production.
Talon’s interest in Tamarack is currently at 51% and expected to reach 60% after full earn-in by Talon.
• No Material Buy-downs or Buy-backs Remain in the Portfolio: Following the exercise by Talon of the buy-
down on our Tamarack royalty, there are no remaining material buy-downs or buy-backs in our portfolio.
• Share Buyback Program: For the three months ended March 31, 2022, the Company purchased 18,590 of
its common shares under the Normal-Course Issuer Bid for $0.2 million
• Dividend: Triple Flag’s Board of Directors declared a quarterly dividend of US$0.0475 per common share
that will be paid on June 15, 2022 to the shareholders of record at the close of business on May 31, 2022.
The annualized dividend of US$0.19 per share represents a yield of 1.4% based on the closing share price
on May 9, 2022.
Sustainability Initiatives:
• Ukraine: In light of the recent un provoked attack on Ukraine, Triple Flag donated C$100,000 to the
Canadian Red Cross in support of the Ukrainian humanitarian relief effort to assist those most in need
during this horrific crisis. The Triple Flag team also participated in packing supplies in response to the relief
effort.
• Northparkes: Four local students from doorstep communities have been selected pursuant to a formal
application, review and interview process to receive A$5,000 one- time bursaries to support post -
secondary degrees. Each of these recipients has expressed a desire to return to rural/remote areas of
Australia upon completion of their degrees.
• RBPlat: Triple Flag has committed to financially supporting seven new students (predominantly first-year
entrants) in pursuing mining- related post- secondary engineering degrees. This is in addition to the 8
students Triple Flag continues to support (until their successful completion) from 2021.
• International Women’s Day (March 8 th): Triple Flag again s ponsored a table and invited women f rom
within our network to attend the Women for Women’s College Hospital (Toronto) lunch, a fundraising
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event which raised nearly C$600,000 dedicated to breaking down barriers to care for all women:
reimagining the advancement of women’s health and health equity for everyone.
• Sustainability Report: Stay tuned for our 2nd Annual Sustainability Report to be published in June 2022.
Q1 2022 Portfolio Updates
Australia:
• Northparkes (54% gold stream and 80% silver stream) : Sales from Northparkes in Q 1 2022 were 3,660
GEOs based on sales of 3,225 ounces of gold and 43,557 ounces of silver. Northparkes achieved record
plant throughput days in March. Grades and recoveries are expected to increase during the remainder of
2022.
• Fosterville (2.0% NSR gold royalty) : Royalties from Fosterville in Q 1 2022 equated to 2,168 GEOs.
Fosterville produced 126,707 ounces of gold in Q 1 2022. Fosterville encountered higher-than-expected
grades during the quarter, resulting in better-than-expected production. Based on the mining sequence,
Fosterville anticipates having lower gold production in the next two quarters and the fourth quarter is
expected to be the strongest quarter of the year based on the likely sequence of mining ultra-high grade
stopes.
• Dargues (5.5% gross revenue (“ GR”) gold royalty): Royalties from Dargues in Q 1 2022 equated to 746
GEOs. Dargues produced 8,108 ounces of gold in the quarter ended March 31, 2022, down 25% compared
to the prior quarter due primarily to a temporary halt in production because of significant rains
experienced in eastern Australia, but also because of negative grade reconciliation at the mine.
• Henty (3.0% GR gold royalty): Royalties from Henty in Q 1 2022 equated to 212 GEOs. Henty produced
5,358 ounces of gold and sold 5,004 ounces of gold in the quarter ended March 31, 2022. Catalyst Metals
Limited announced high-grade results from exploration drilling at the Darwin deposit at Henty, the results
of which will form part of a resource update expected to be completed in the quarter ended March 31,
2023. Catalyst Metals Limited now has four underground drill rigs and one surface drill rig at Henty.
Latin America:
• Cerro Lindo (65% silver stream): Sales from Cerro Lindo in Q 1 2022 were 6,580 GEOs based on 500,821
ounces of silver sold. Cerro Lindo produced 1.0 million ounces of silver during Q1 2022, an increase from
0.9 million ounces of silver in Q1 2021. In Q1 2022, Nexa Resources S.A. (“Nexa”) announced positive drill
results from the ongoing exploration program at Cerro Lindo. Cerro Lindo ore body 5B has continued to
be extended to the southeast, and Nexa is also continuing to drill the Festejo geophysical anomaly, located
0.78 km southeast of Cerro Lindo. Both targets are within the stream area.
• Buriticá (100% silver stream): Sales from Buriticá in Q1 2022 were 1,337 GEOs based on 105,152 ounces
of silver sold . Zijin Mining Group Co., Ltd. is currently commission ing the expansion project to increase
throughput to 4,000 tonnes per day during 2022, which will also allow the mine to produce copper and
zinc concentrates from Buriticá, further boosting the already high margins from this low-cost mine.
• Eastern Borosi (2.0% NSR gold and silver royalty): During 2021, Calibre Mining Corp. (“Calibre”) completed
technical studies, environmental baseline work, community consultations, geotechnical and metallurgical
test work, and infill drilling programs at Eastern Borosi. Calibre has submitted permit applications to
advance the asset, which is expected to provide high-grade mill feed to the Libertad mill during the second
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half of 2023. Calibre currently has two drill rigs actively exploring multiple earlier stage targets at Eastern
Borosi.
North America:
• Young-Davidson (1.5% NSR gold royalty) : Royalties from Young -Davidson in Q 1 2022 equated to 813
GEOs. Young-Davidson produced 51,900 ounces of gold in Q1 2022, an 8% increase from 48,000 ounces
in Q 1 2021. Underground mining rates continued to exceed expectations , averaging 8,181 tpd in the
quarter, the third consecutive quarter in which mining rates have exceeded the targeted rate of 8,000
tpd. Underground exploration drilling during the first quarter at Young- Davidson was focused on four
targets, with 2,325 meters completed in five holes, alongside 4,424 meters of surface exploration drilling
completed in fourteen holes. A total of $5 million has been budgeted for exploration at Young- Davidson
in 2022.
• Pumpkin Hollow (97.5% gold and silver stream): Sales from Pumpkin Hollow in Q1 2022 were 127 GEOs
based on sales of 103 ounces of gold and 1,986 ounces of silver. Subsequent to the quarter-end, Nevada
Copper Corp. (“ Nevada Copper”) announced record copper production was achieved in March as the
Pumpkin Hollow underground mine continues to ramp up. 1,300 dmt of copper concentrates were
produced in March 2022 from multiple stopes, including the high-grade Sugar Cube zone. Nevada Copper
also continues to progress exploration on the Pumpkin Hollow open pit project, on which Triple Flag owns
a 0.7% NSR royalty. The initial focus of the exploration program will be infill and extension drilling of the
open pit, follow ing up on the last drilling program which identified significant additional mineralization
and indicated the orebody , which remains open in multiple directions, extends beyond the original pit
boundary. The drilling program will also provide updated geological information for advancing the fully
permitted project into feasibility evaluation reflecting opportunities for increased scale, larger resource,
and other optimization workstreams. An updated prefeasibility study is expected in Q3 2022 to
incorporate the higher copper price environment.
• Gunnison (16.5% copper stre am): Sales from Gunnison in Q 1 2022 were 125 GEOs based on 54,013
pounds of copper sold. During the quarter, Excelsior Mining Corp. (“Excelsior”) announced positive results
of its prefeasibility study on the North Star Deposit of the Gunnison Copper Project and p reliminary
economic assessment on the Johnson Camp Mine (“JCM”) heap leach. Excelsior continues to advance the
JCM restart which, if executed, will provide cash flow while the raffinate neutralization plant is being
designed and built for Gunnison. Any cathode production from JCM is covered under Triple Flag’s stream.
• Eagle River (0.5% NSR gold royalty): Subsequent to quarter-end, Wesdome Gold Mines Ltd. (“Wesdome”)
continued its success with definition and expansion drilling of the Falcon zone at Eagle River. Historically,
mineralization of the Eagle River Mine has been hosted in the mine diorite; however, Falcon 7 is hosted
in volcanic rocks west of the intrusion. As a result , the discovery and subsequ ent development of the
Falcon 7 zone highlights the prospectivity of the volcanic rocks to host additional gold mineralization
beyond the currently existing footprint of the Eagle River Mine.
• Tamarack (1.85%a NSR nickel and copper royalty on Talon’s interest): Talon Metals announced high-grade
exploration results during Q1 2022, where new assay results from drilling at the CGO West area, outside
the main resource area of Tamarack , continue to demonstrate shallow , high-grade nickel- copper
mineralization. The CGO West area lies approximately 100 meter s north -north-east of Tamarack’s
resource area and extends for an additional 400 meters. Subsequent to the quarter end, Talon Metals
announced that it purchased three additional drill rigs to accelerate exploration efforts outside the main
resource area.
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• Beaufor (2.75% NSR gold royalty): During the first quarter of 2022, Monarch Mining Corporation
(“Monarch”) reported strong drill results from the ongoing exploration pr ogram at the Beaufor project.
Exploration and definition drilling is ongoing, with five drill rigs underground, and Monarch continues to
prepare for a resumption of underground mining at Beaufor in 2022, currently developing three stopes
and raises in the Q Zone and carrying out underground development and rehabilitation in the W and 350
zones.
• Renard (20% of a 20% diamond stream ): Stornoway’s operational improvements, coupled with a
strengthening diamond market , has resulted in positive cash flow for Stornoway in 2021 and the first
quarter of 2022. As a result of its improved financial position, subsequent to quarter-end, Stornoway, its
streamers and its secured creditors agreed to amend the stream and the secured debt documents on April
29, 2022. Going forward, the stream will be reactivated , and Triple Flag will no longer reinvest stream
payments into Stornoway so long as Stornoway maintains certain minimum cash thresholds.
• Queensway (0.2% to 0.5% NSR gold roy alty): New Found Gold Corp. continues to have success with the
ongoing 400,000-meter exploration program at its Queensway project. The Queensway project comprises
an approximately +1,500 km2 area with initial exploration focus in areas accessed via the Trans-Canada
Highway approximately 15 km west of Gander, Newfoundland.
Rest of World:
• RBPlat (70% gold stream): Sales from RBPlat in Q1 2022 were 2,254 GEOs based on 2,239 ounces of gold
sold. A strong operational performance from BRPM and improved Styldrift performance yielded an 11.4%
increase in hoisted tonnes in Q1 2022 compared to the same period in the prior year. BRPM tonnes
hoisted increased by 15.5% to 611 kt and Styldrift by 6.8% to 500 kt. Total tonnes milled in Q1 2022
increased by 8.7% year-on-year to 1,119 kt, with UG2 contribution increasing by 33.1% to 346 kt compared
to 260 kt in Q1 2021, and Merensky contribution increasing marginally to 773 kt from 769 kt in Q1 2021.
UG2 accounted for 31% of tonnes milled. On April 28, 2022, Impala Platinum Holdings Limited (“Implats”)
received confirmation that the South African Competition Commission has recommended that the South
African Competition Tribunal approve the proposed transaction between RBPlat and Implats. Upon
completion of the transaction, RBPlat will be the latest addition to t he Implats portfolio – one of the
largest PGM producers globally.
• ATO (25% gold stream and 50% silver stream): Sales from ATO in Q1 2022 were 410 GEOs based on sales
of 368 ounces of gold and 3,097 ounces of silver . Following the March 1 announcement regar ding the
resumption of production, Steppe Gold Limited (“Steppe Gold”) completed its first gold pour and the
subsequent sale was concluded in late March . Inventory build-up for key reagents continues with three
additional shipments now received. The Company continues crushing and stacking operations and has
recommenced mining in all active pits.
Conference Call Details
Triple Flag has scheduled an investor conference call at 8:30 a.m. ET (5:30 a.m. PT) on Wednesday, May 11, 2022
to discuss the results reported in today’s earnings announcement. The conference call will be broadcast live via a
webcast and 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 month
following the webcast.
Date and Time: May 11th, 2022 at 8:30 a.m. ET (5:30 a.m. PT)
Live Webcast: https://event.on24.com/wcc/r/3725624/41F14C3C40E95DAD9A98318A580235AC
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Dial-In Details:
Toll-Free (U.S. & Canada): +1 (888) 330-2384
International: +1 (647) 800-3739
Conference ID: 4548984
Replay (Until May 18th):
Toll-Free (U.S. & Canada): +1 (800) 770-2030
International: +1 (647) 362-9199
Conference ID: 4548984
Mr. James Dendle, Vice President, Evaluations & Investor Relations, is a “qualified person” as such term is defined
under National Instrument 43 -101 and has reviewed and approved the technical information disclosed in this
news release.
About Triple Flag
Triple Flag is a pure play, gold-focused, emerging senior streaming and royalty company. We provide our investors
with exposure to a long-life, diversified and high-quality portfolio of streams and royalties that generates robust
free cash flows. Our business is underpinned by a rigorous focus on asset quality, optionality, sustainability and
risk management. We offer bespoke financing solutions to the metals and mining industry. Our mission is to be a
preferred funding partner to mining companies throughout the commodity cycle by providing customized
streaming and royalty financing, while offering value beyond capital as partners via our networks, capabilities and
sustainability support . Since our inception in 2016, we have delivered sector -leading growth through the
construction of a diversified portfolio of streams and royalties that provides exposure primarily to gold and silver
in the Americas and Australia. We have also maintained carbon neutrality since that time, including the Scope 3
greenhouse gas emissions of our attributable portion of metals production of our counterparties. We have 80
assets, including 9 streams and 71 royalties. These investments are tied to mining assets at various stages of the
mine life cycle, including 15 producing mines and 6 5 development and exploration stage projects. On May 26,
2021, Triple Flag closed its IPO, which was the largest TSX -listed mining IPO since 2012 by size and market
capitalization, and the largest precious metals IPO globally by market capitalization since 2008. Triple Flag’s shares
are listed on the TSX under TFPM.U (USD listing) and TFPM (CAD listing).
Contact Information – Inquiries:
Investor Relations:
James Dendle
Vice President, Evaluations & Investor Relations
Tel: +1 (416) 304-9770
Email: [email protected]
Media:
Gordon Poole, Camarco
Tel: +44 (0) 7730 567 938
Email: [email protected]
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Forward-Looking Information
This news release contains “forward -looking information” within the meaning of applicable Canadian securities
laws. 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”. Our assessments of, and expectations for, future periods (including, but not
limited to, our 2022 guidance and long-term production outlook for GEOs, our dividend policy and our acquisition
strategy), are considered forward -looking information. 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 the ongoing
operation of the properties in which we hold a s tream 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 annual information form as filed from time to time on SEDAR at
www.sedar.com. 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 other wise, except as required by applicable securities
laws. All of the forward-looking information contained in this news release is expressly qualified by the foregoing
cautionary statements.