Triple Flag Reports Strong Q3 2021 Results Triple Flag Precious Metals Corp. (with its subsidiaries, “Triple Flag” or the “Company”) (TSX:TFPM, TSX:TFPM.U) today announced its results for the third quarter of 2021 and declared a dividend of US$0.0475 per common share
1
NEWS RELEASE
Toronto, November 10, 2021
Triple Flag Reports Strong Q3 2021 Results
Triple Flag Precious Metals Corp. (with its subsidiaries, “Triple Flag” or the “Company”) (TSX:TFPM, TSX:TFPM.U)
today announced its results for the third quarter of 2021 and declared a dividend of US$0.0475 per common share
to be paid in December 2021. All amounts expressed in US dollars.
“We are pleased to report another set of strong results for the third quarter of 2021, successfully delivering sector-
leading growth in a disciplined manner, demonstrated by year-over-year increases in revenue, cash flow, adjusted
EBITDA and gold equivalent ounces sold, among other metrics ,” commented Shaun Usmar, Triple Flag Founder
and CEO. “These results include a 52% increase in revenue, 53% increase in operating cash flow, and a 62% increase
in GEOs sold, as compared to the same period in 2020. We are also pleased to announce that our Board has
declared a quarterly dividend of US $0.0475 per common share. Based on the November 9 closing price, our
annualized dividend of US$0.19 per share provides investors with a sector-leading dividend yield of 2.0%, supported
by a robust debt -free balance sheet. We intend to grow the dividend over time as we focus on delivering
consistently strong results while executing our strategy of disciplined and accretive growth through the acquisition
of additional precious metals streams and royalties.
In addition, we are excited that our partner Steppe Gold Ltd. recently announced the positive results of the
feasibility study on its ATO gold mine in Mongolia that would extend the mine life by 10.5 years from the fresh rock
ore production (“Phase 2 Expansion”) following depletion of the current oxide phase in two years. This expansion
also extends the life of Triple Flag’s stream by more than a decade with no incremental investment by Triple Flag.
This is a testament to our rigorous due diligence process and our ability to source and secure transactions on high-
quality mining projects led by great partners around the globe and create value for all stakeholders . We are
working with the Steppe Gold management team to meaningfully contribute to their impressive community
programs in education and beyond.”
Q3 2021 Highlights
• 52% increase in Revenue to $37.1 million, from $24.5 million in Q3 2020.
• 53% increase in Operating Cash Flow to $29.5 million, from $19.2 million in Q3 2020.
• 42% decrease in Net Earnings to $5.1 million ($0.03/share), from $8.9 million ($0.07/share) in Q3 2020.
• 171% increase in Adjusted Net Earnings 1 to $13.7 million ($0.09/share), from $5.1 million ($0.04/share)
in Q3 2020.
• 43% increase in Adjusted EBITDA2 to $29.5 million, from $20.6 million in Q3 2020.
Q3 2021 RESULTS
2
• 62% increase in gold equivalent ounces (“GEOs”) sold to 20,746, from 12,821 in Q3 2020.
• Low Cash Costs per GEO3 of $166, compared to Cash Costs per GEO of $158 in Q3 2020.
• Strong Asset Margin4 of 91% compared to 92% in Q3 2020.
• Subsequent to quarter-end, Steppe Gold Ltd. (“ Steppe Gold”) published the feasibility study on its ATO
gold mine. This extends the mine life and Triple Flag’s stream from 2024 to 2034 with no incremental
investment by Triple Flag, substantially increasing the net asset value of the ATO gold and silver stream
and providing robust long-life growth in GEOs included in our long-term outlook. On November 10, Steppe
Gold announced that it had reached agreement for up to $65 million in debt to fast track its Phase 2
Expansion, comprised of MNT 170 billion ( $59.7 million) through the Central Bank of Mongolia’s Gold -2
National Program that was already advanced to Steppe Gold during the third quarter by Trade and
Development Bank of Mongolia (“TDBM”), and a $5 million prepaid gold sales loan from TDBM.
• Published inaugural Sustainability Report in September, demonstrating Triple Flag’s rigorous
environmental, social, and governance philosophy and standards.
• In October, announced implementation of a Dividend Reinvestment Plan (“DRIP”) and a Normal Course
Issuer Bid (“NCIB”). Triple Flag believes that when its share price does not reflect the fundamental quality
and value of its portfolio, buying back shares pursuant to the NCIB is accretive and an opportunity to
capture this discount and create value for shareholders, while being cognizant of the need to build a larger
float and increase liquidity in the stock over time.
GEOs Sold by Commodity, Revenue by Commodity, and Financial Highlights Summary Table
Three Months Ended September 30 Nine Months Ended September 30
($ thousands except GEOs, Asset Margin, Total
Margin, Cash Costs per GEO, and per share
numbers) 2021 2020 2021 2020
GEOs
Gold 10,154 9,319 30,529 24,178
Silver 9,439 3,201 29,643 15,341
Other 1,153 301 2,825 1,131
Total 20,746 12,821 62,997 40,650
Revenue
Gold 18,171 17,784 54,981 42,520
Silver 16,891 6,110 53,363 26,180
Other 2,064 576 5,087 1,889
Total 37,126 24,470 113,431 70,589
Net Earnings 5,128 8,915 32,146 1,610
Net Earnings per Share 0.03 0.07 0.22 0.01
Adjusted Net Earnings1 13,714 5,062 44,155 7,346
Adjusted Net Earnings per Share1 0.09 0.04 0.30 0.07
Operating Cash Flow 29,455 19,239 91,018 53,656
Adjusted EBITDA2 29,549 20,619 94,605 59,422
Asset Margin4 91% 92% 91% 92%
Total Margin4 80% 84% 83% 84%
Cash Costs per GEO3 166 158 162 143
3
Corporate Updates
• 2021 Guidancea b: We are reiterating our 2021 guidance of between 80,000 – 83,000 GEOs.
• Dividend: Triple Flag’s Board of Directors declared a quarterly dividend of US$0.0475 per common share
that will be paid on December 15, 2021 to the shareholders of record at the close of business on November
30, 2021. The annualized dividend of US$0.19 per share represents a yield of 2. 0% based on the closing
share price on November 9, 2021.
• Publication of Sus tainability Report: In September, Triple Flag published its inaugural Sustainability
Report, showcasing the Company’s commitment to, and performance in environmental, social and
governance (“ESG”) initiatives.
• Debt-Free and Funded to Continue Growth: We have a credit facility of $500 million with an additional
uncommitted accordion of up to $100 million, for a total availability of up to $600 million. As at September
30, 2021, the credit facility was undrawn, leaving Triple Flag debt -free. Our quarter-end cash balance of
$26.7 million, combined with our robust cash generation and availability of $600 million from our undrawn
credit facility, provides us with sufficient financial resources to meet our business requirements for the
foreseeable future, including acquisitions, working capital requirements and dividend payments.
• Approval of NCIB: On October 12, 2021, Triple Flag announced that the Toronto Stock Exchange (the
“TSX”) accepted the notice filed by Triple Flag to establish a n NCIB program. Under the NCIB program,
Triple Flag is authorized to purchase up to 2,000,000 of its common shares, representing 1.3% of Triple
Flag’s issued and outstanding common shares as of Octo ber 12, 2021 , during the period starting on
October 14, 2021 and ending on October 13, 2022. For further details, please refer to our October 12,
2021 press release.
• Announcement of DRIP: On October 12, 2021, Triple Flag further announced that it had implemented a
DRIP. Participation in the DRIP is optional and will not affect shareholders’ cash dividends, unless they
elect to participate in the DRIP . The DRIP will provide Triple Flag’s Canadian -resident registered and
beneficial shareholders with the opportunity to have the cash dividends declared on their common shares
automatically reinvested into additional common shares of the Company. The Plan Agent under the DRIP
will, until further notice, acquire common shares from the open market. For further details, please refer
to the “Stock Info” page under the Investors section of our website at www.tripleflagpm.com.
Q3 2021 Portfolio Updates
Australia
• Northparkes (54% gold stream and 80% silver stream) : Sales from Northparkes in Q 3 2021 were 4,266
GEOs. In Q3 2021, Northparkes produced 7,667 tonnes of copper and 7,327 ounces of gold. Capital and
expansion projects continued to progress well. Northparkes has commenced the development application
process for the E44 deposit, which contains favourable gold grade s, approximately 13 km southwest of
existing operations. Northparkes proposes to mine E44 using open cut methods, with the ore to
supplement existing operations. Triple Flag, together with our partners at Northparkes, is developing a
virtual tour of Northparkes that is planned to be held late this year, which will showcase this world -class
mining operation and management team.
4
• Fosterville (2.0% NSR gold royalty) : Royalties from Fosterville in Q 3 2021 equated to 2,456 GEOs.
Fosterville produced 134,772 ounces of gold and sold 146,600 ounces in Q3 2021 . Production for the
quarter was significantly above planned levels driven largely by continued grade outperformance in the
Swan Zone. Q3 year-to-date production at Fosterville was 401,445 ounces of gold and, while Kirkland Lake
Gold Ltd. (“Kirkland”) did not change its annual guidance of 400,000 – 425,000 ounces for Fosterville, it
did note it now expects full -year 2021 production to b e 500,000 ounces or higher . In August, Kirkland
announced new high-grade, visible-gold-bearing intersections down-plunge of Swan Zone, at Cygnet, and
at Robbin’s Hill associated with 197 underground and 58 surface holes of drilling since the December 31,
2020 Mineral Resources and Reserve update. The results support Kirkland’s view that substantial
potential exists to discover new high-grade mineralized areas and extensions to grow reserves. The drilling
down-plunge of Swan Zone in Lower Phoenix has return ed high -grade intersections with the same
mineralization that accounts for the ultra- high grades found in Swan Zone. In early November, Kirkland
updated the assay results reported in August of one of its top drill holes down -plunge of Swan Zone
located 500 metres away from deepest mineral reserves with actual gold grades that were more than
quadruple that originally reported (207 g/t over 2.6 m). While Lower Phoenix is a key target area,
favourable results were also displayed at Cygnet, a parallel structure near Swan Zone. Results at Robbin’s
Hill continue to confirm the size and scale of target areas, and Kirkland expects Robbin’s Hill to become
the second mining operation to feed the mill. Underground drilling at Robbin’s Hill has also commenced.
Kirkland has budgeted $85 to $95 million for exploration at Fosterville in 2021, with a total of 210,000
metres planned to be drilled. At the time of announcement, Kirkland had nine underground and eight
surface diamond drill rigs operating at Fosterville. Triple F lag and its investors are beneficiaries of this
significant exploration spend by way of Triple Flag’s royalty interest in Fosterville.
• Dargues (5.5% GR gold royalty) : Royalties from Dargues in Q3 2021 equated to 392 GEOs. Dargues
produced 10,827 ounces of gold for the quarter ended September 30, 2021, up 107% from the prior
quarter as new stoping areas were brought into production. Aurelia Metals Limited (“Aurelia”) previously
provided a FY2022 (ending June 30, 2022) production outlook for Dargues of 45,000 to 50,000 ounces of
gold. In October, Aurelia received final results from its Phase 1 infill and exploration drilling program at
Dargues. One intercept of 9.7 metres at 4.2 g/t Au represents the deepest ore-grade gold mineralization
identified at Dargues to date, located approximately 80 metres down-plunge and to the east of the current
Mineral Resource envelope.
• Henty (3.0% GR gold royalty): Royalties from Henty in Q3 2021 equated to 200 GEOs. Henty produced
6,775 ounces of gold for the quarter ended September 30, 2021, putting it on track to reach its guidance
of 25,000 ounces for calendar year 2021. Catalyst Metals Ltd. (“ Catalyst”) announced in early October
that it has increased Mineral Resources by 13% as at June 30, 2021 compared to June 30, 2020, more than
replacing the gold mined in that year. Also in October, Catalyst announced it has three diamond drill rigs
operating underground and a surface rig testing new concepts on a northern extension. Henty has not
had an active resource delineation pr ogram for quite some time with prior owners, and past mining
continued without the conversion of Resources to Reserves. Catalyst is now focused on upgrading
Resources to JORC -compliant Reserves that will be reported at the end of the financial year. In the
meantime, Catalyst plans to keep production at current levels, until it can identify new working areas. As
it discovers new ore, it will look to increase production. In November, Catalyst provided an update on
high-grade gold intersections encountered in underground drilling targeting three key areas towards the
top of the underground orebody – Zone 96, Intermediate Zone, and Sill Zone. Of 153 holes drilled, a
majority contained gold mineralization, 27 had intervals greater than 20 g/t Au metres, and very high gold
grades were encountered in at least six holes. The drilling is showing excellent high -grade zones beyond
the limits of the 2021 Mineral Resource Estimate model and in parallel structures not previously tested.
5
A surface exploration program is als o being conducted on Henty North, the northern extension of the
Henty Fault. Catalyst is in the process of mobilizing another underground drill rig, bringing the total drill
rigs to five.
Latin America:
• Cerro Lindo (65% silver stream): Sales from Cerro Lindo in Q3 2021 were 7,502 GEOs, based on 579,878
ounces of silver sold. Nexa Resources S.A. (“Nexa”) announced with its Q3 2021 results that it is on track
to meet its production guidance, and cash costs are lower due to higher by -product metal prices. After
planned and unplanned maintenance shutdowns in Q3 2021, mine throughput at Cerro Lindo has
returned to normal levels. In October, Nexa announced the results from its exploration in Q3 2021. At
Cerro Lindo, drilling was focused on Pucasalla and near-mine underground ore body expansion at orebody
9 and 5B. Drilling resulted in thick intersections that confirmed the continuity of both orebody 9 (11.9
metres with 3.14% ZnEq; 9.5 metres with 3.69% ZnEq) and orebody 5B (12.8 metres with 6.85% ZnEq; 9.7
metres with 3.12% ZnEq). Drilling at Pucasalla, a new volcanogenic massive sulphide (“ VMS”) deposit
discovered 4.5 km to the northwest of Cerro Lindo, also confirmed lateral extension of the mineralization.
Pucasalla is outside of Triple Flag’s stream area, however, Triple Flag has a right of first refusal over any
stream-related financing and any discoveries that extend the mine life of Cerro Lindo are beneficial to the
stream.
• Buriticá (100% silver stream): Sales from Buriticá in Q3 2021 were 1,142 GEOs, based on 85,821 ounces
of silver sold. In Q3 2021, Buriticá produced doré containing 49,742 ounces of gold and 68,436 ounces of
silver. Zijin Mining Group Co., Ltd. (“ Zijin”) announced that it received the production permit for its
expansion to increase processing capacity to 4,000 tonnes per day (“tpd”) from 3,000 tpd. At the time of
announcement in August, civil engineering was 98% complete, installation of steelwork was 6 8%
complete, and equipment installation was 23% complete. The expansion is expected to come online in
the new year.
• Eastern Borosi (2.0% NSR gold and silver r oyalty): Calibre Mining Corp. (“ Calibre”) announced in the
quarter that it has made excellent progress advancing Eastern Borosi, which will provide mill feed for the
its Libertad mill that is less than 50% utilized, ahead of schedule. Calibre increased its drilling programs to
include an additional 22 kilometres of infill, geotechnical and hydrogeological drilling, in addition to the
planned resources expansion drilling around the high-grade open pit and underground deposits at Eastern
Borosi. It has now completed infill drilling and is initiating resource expansion and discovery drilling, is
completing pre-feasibility study level engineering with technical studies well underway and has acquired
over 95% of the required surface rights. Drilling has returned some of the best near-surface intercepts to
date, including 9.7 metres at 25 g/t gold and 3.1 metres at 39 g/t gold. An updated Mineral Resource
estimate is expected in Q1 2022. Permitting applications for open pit and underground operations are
also targeted for Q1 2022, a year earlier than originally contemplated , and Calibre anticipates it can
continue growing the Guapinol and Riscos De Oro deposits both on strike and down dip of known zones
while also testing new veins. Calibre has noted that with streamlined permitting in Nicaragua, it can take
as little as approximately 18 months from permit application to first ore delivery.
North America:
• Young-Davidson (1.5% NSR gold royalty) : Royalties from Young -Davidson in Q 3 2021 equated to 752
GEOs, up 88% from Q3 2020. Young-Davidson produced 50,000 ounces of gold in Q3 2021, up 37% year-
over-year, and is expected to further increase in Q4 2021, putting it on track to meet its 2021 gold
production guidance of 190,000 to 205,0000 ounces. Young-Davidson has consistently met or exceeded
expectations following completion of the lower mine expansion and had record mining rates of 8,017 tpd
6
in Q3 2021, which Alamos Gold Inc. (“Alamos”) expects to persist in the future with the new lower mine
infrastructure now operating at its design rate of 8,000 tpd. Having commenced the first systematic
exploration since 2011 earlier this year, in July Alamos announced that drilling intersected mineralization
150 m etres below the current Inferred Resource and high -grade mineralization 200 m etres into the
hanging wall and 150 metres into the footwall of the main deposit.
• Pumpkin Hollow (97.5% gold and silver stream) : Sales from Pumpkin Hollow in Q 3 2021 were 81 GEOs.
Nevada Copper Corp. (“Nevada Copper”) provided an operational update during the quarter in which it
highlighted a number of measures that have been implemented to address operational constraints that
were encountered in Q2. This includes accelerated stope delivery, stronger contractor manag ement
procedures, optimization of equipment utilization, and implementation of enhanced inventory
management systems. Subsequent to quarter-end, Nevada Copper announced that copper in concentrate
produced during September increased significantly from low levels achieved in August 2021 driven by
higher stope production. As well, September 2021 saw the highest monthly development footage
achieved since April 2021 for a total of 750 lateral feet, which is a 12% increase over August 2021. In
October, Nevada Cop per announced the appointment of Randy Buffington as the new CEO and a
significant balance sheet improvement with the extension of the senior project facility and deferral of first
loan repayments, and consolidation of all shareholder loans into a $138 million credit facility that includes
$41 million of additional liquidity available to Nevada Copper. In November, Nevada Copper provided an
update on accelerating stope production and the ramp -up, with four stopes so far mined in the second
half of 2021, including the most recent stope with an estimated grade of over 2% Cu. Mining of the higher-
grade Sugar Cube zone is planned to begin next month in the East North area, which is expected to have
significantly larger stope sizes. The second dike heading is advancing well with learnings from the first dike
heading, and these will both provide access to additional stopes in H1 2022. Surface ventilation fans are
scheduled to arrive in late Q4 2021 and be commissioned in time to meet requirements of the mine plan
as development progresses toward completion of the ramp-up.
• Gunnison (16.5% copper stream) : Sales from Gunnison in Q3 2021 were 130 GEOs, based on 54,035
pounds of copper sold. Ramp-up at Gunnison has experienced delays due to carbon dioxide gas bubbles
reducing injection flows and preventing timely ramp -up to nameplate production. The gas bubbles are
the result of the interaction of the weak acid injection with finite amounts of calcite within the permeable
fracture system. Excelsior Mining Corp. (“Excelsior”) believes that this is a temporary phenomenon, as the
calcite dissolves and leaves the system with increased water flushin g. Excelsior announced in Q3 2021
that it will be building additional solution treatment infrastructure to flush the wells with a n eutralized
raffinate solution instead of water, which will reduce cycle times needed to achieve targeted operational
flow rates . Also during the quarter, Excelsior announced that it will be restarting the past -producing
Johnson Camp Mine copper oxide open pits to supplement copper production as Gunnison continues its
ramp-up to full production levels. A new leach pad and minor piping and pumping facilities will need to
be built for the restart, which Excelsior believes could provide up to 5 years of copper production at a rate
of 25 million pounds per year beginning in the second half of 2022. Any cathode production from the
Johnson Camp Mine is covered under Triple Flag’s stream on Gunnison.
• Eagle River (0.5% NSR gold royalty): Royalties in Q3 2021 from Eagle River equaled 122 GEOs. Eagle River
produced 23,621 ounces of gold in Q3 2021, down 20% from the prior quarter as expected due to two
weeks of scheduled downtime for installation of a new cone crusher and mill maintenance. The operation
remains on track to meet the mid to high point of its 2021 gold production guidance of 92,000 to 105,000
ounces. Wesdome Gold Mines Ltd. (“ Wesdome”) announced in the quarter that chip sampling and test
holes from the initial sill development on the Falcon 7 Zone has returned high gold grades over continuous
strike lengths. Falcon 7 Zone is hosted in volcanic rocks west of the intrusion, unlike historical
7
mineralization which was hosted in diorite. Wesdome plans to begin mining the Falcon 7 Zone in Q4 2021
and going forward it will comprise a significant portion of the mill feed. Wesdome aims to sustain
production levels at 100 ,000 ounces per year by supplementing production from the main mining area
with production from Falcon, thereby providing mining flexibility and avoiding bottlenecks.
• Tamarack (3.5%c NSR nickel and copper royalty on Talon’s interest): During Q3 2021, Talon Metals Corp.
(“Talon”) announced that it has secured a 51% ownership in Tamarack six months ahead of schedule
through the issuance of units to Rio Tinto in lieu of a US$5 million cash payment. Talon has the right to
earn up to a 60% total interest in the project until March 2026. Talon also had significant exploration
success during Q3 2021. Drill results during the quarter included 13.9 2 metres of mixed and massive
nickel-copper sulphide mineralization grading 5.54% Ni, 2.14% Cu (6.70% nickel equivalent or 17.86%
copper equivalent) starting at only 225 metres, which identified a new ‘pool’ of massive nickel- copper
mineralization in the newest exploration area titled ‘CGO West’. Further drilling on CGO West intersected
more mineralization in which hole 21TK0330 intersected 4.44 metres of mixed and massive nickel-copper
mineralization grading 7.97% nickel and 11.25% copper (14.08% nickel eq uivalent or 37.56% copper
equivalent) starting at only 269 metres. I mportantly, there is 125 metres between holes 21TK0316 and
21TK0323, with 5 additional holes in between that have all intersected thick massive and mixed massive
sulphides, demonstrating the potential for continuity of the large pool of high-grade sulphides over a large
area. The CGO West area lies approximately 100 metres north-northeast of Tamarack’s Mineral Resource
area and extends for 400 metres where drilling shows the presence of shallow, high-grade nickel-copper
mineralization. There have also been high-grade drill results in the CGO East area that demonstrate high
nickel and copper grades across a large area of about 430 metres.
• Queensway (0.2% to 0.5% NSR gold royalty): During Q3 2021, New Found Gold Corp. (“New Found Gold”)
announced continued success from the ongoing 200,000 metre diamond drill program at Queensway .
Subsequent to quarter-end, Eric Sprott announced the investment of C$48 million into New Found Gold
on a private placement basis. Additionally, New Found Gold announced the doubling of its drill program
to 400,000 metres with an additional 5 drill rigs, bringing the total number of drill rigs exploring the
property to 14.
• Val-d’Or East (2.0% NSR gold royalty): Probe Metals Inc. released a positive PEA during Q3 2021,
showcasing an average annual production of 207,000 ounces of gold over a 12.5-year mine life.
• GJ Project (0.49%/0.98% NSR copper and gold royalty): Newcrest Mining Limited announced in September
that it is planning to test the depth potential of the Donnelly Zone (0.98% NSR royalty), and will commence
an initial program of two holes for 2,500 metres in Q2 2022.
Rest of World
• RBPlat (70% gold stream) : Sales from RBPlat in Q 3 2021 were 1,843 GEOs. Tonnes hoisted in Q3 2021
increased by 3.5% year-over-year, and tonnes milled increased 7.7% year-over-year. Notwithstanding the
impact of the Covid -19 pandemic and the protracted third wave, which reached its peak in July, Royal
Bafokeng Platinum Limited (“RBPlat”) achieved record 4E production of 127 koz in Q3 2021 due to steady
BRPM performance and improved Styldrift performance. At Styldrift, with the 230 thousand tonnes per
month (“ktpm”) footprint completed, focus is now aimed at improving efficiencies to sustainably achieve
230 ktpm. In Q3 2021, Styldrift averaged 219 ktpm with a peak of 228 ktpm. RBPlat’s 4E production
guidance for 2021 remains unchanged at 475 to 485 koz.
On October 27, RBPlat announced that it and Impala Platinum Holdings Limited (“ Implats”) were in
discussions relating to a non -binding indicative proposal from Implats to acquire 100% of the issued
8
ordinary shares of RBPlat , which would have created the largest PGM miner in South Africa, if
consummated.
On November 9, RBPlat announced that its single largest shareholder, Royal Bafokeng Holdings Limited
(“RBH”), is no longer supportive of the Implats acquisition, and that the scheme or arrangement cannot
be implemented without RBH’s support. Simultaneously, it was announced that on November 8, a sale of
shares agreement was entered into between Northam Platinum Holdings Limited (“ Northam”) and RBH
along with its subsidiaries, pursuant to which Northam will acquire up to 33.3% of RBPlat shares from one
of RBH’s subsidiaries, with mechanisms in place with another of RBH’s subsidiaries for Northam to
purchase a total of up to 36.1% of total RBPlat shares outstanding, representing the entirety of RBH’s
holding in RBPlat. The first 32.8% of RBPlat share s will be acquired at a price of R180.50 per share,
representing a 90% premium to the RBPlat share price on October 26, the day prior to the announcement
of the potential acquisition by Implats.
• ATO (25% gold stream and 50% silver stream): Sales from ATO in Q3 2021 were 665 GEOs. As we outlined
in our October 12 press release, the Covid -19 related supply disruptions of key reagents at ATO have
continued. Relatively high rates of Covid-19 cases in Mongolia and a recent flare-up of cases in a Chinese
city in Inner Mongolia that borders Mongolia have resulted in robust restrictions at the Mongolia- China
border for certain goods, causing supply disruptions for ATO that Steppe Gold considers to be temporary
in nature, representing a deferral of production from 2021 to 2022. Going forward, Steppe Gold is looking
to source its key reagents from multiple sources in different countries to help mitigate further
interruptions. We expect to receive 600 ounces of gold from ATO for the remainder of 2021 and assume
that ATO will not receive the key reagents necessary to resume leaching until the beginning of 2022. Triple
Flag assumes leaching will resume in the spring of 2022 for internal planning purposes. Steppe Gold
reported that they have continued mining, despite t he reagent disruptions, resulting in mined inventory
on the ROM and leach pads of 40,000 ounces of gold, which will limit the timing impacts for revenue once
reagents are available and production can resume.
In late October, Steppe Gold released a feasibility study (“FS”) on ATO that includes the Stage 2 Expansion
from fresh rock ore. The results of the FS provide for two more years of oxide production for a total of
100,000 ounces of gold, followed by 10.5 years of fresh rock production at a rate of approximately 100,000
ounces of gold equivalent per year from 2023 onward. Steppe Gold believes there is further upside to the
FS results based on optimizing reserves, later recovery of gold from tails with the inclusion of a carbon-in-
pulp (“CIP”) plant, and further exploration on increasing recoveries through incorporation of a CIP. Steppe
Gold expects the resumption of oxide production in Q1 2022, with expected production of 60,000 ounces
of gold in 2022 at an all- in sustaining cost of $639/oz. Triple Flag’s stream on ATO covers both the oxide
and fresh rock expansion. See Triple Flag’s press release dated November 1, 2021 for further details. On
November 10, Steppe Gold announced that it had reached agreement for up to $65 million in debt to fast
track its Phase 2 Expansion, comprised of MNT 170 billion ( $59.7 million) through the Central Bank of
Mongolia’s Gold-2 National Program that was already advanced to Steppe Gold during the third quarter
by TDBM, and a $5 million prepaid gold sales loan from TDBM.