Q2 2024 Triple Flag Precious Metals Corp Earnings Call
24 results conference call.
Speaker Change: All lines have been placed on mute to prevent any background noise.
Speaker Change: After the Speakers' remarks, there will be a question and answer session if.
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Speaker Change: I would now like to turn the call over to Sean a smart CEO you may begin.
Sean: Thanks, Billy and good morning, everyone and thank you for joining us to discuss Triple flag second quarter of 2024 results today.
Sean: Today, I'm joined by CFO, Sean Penn to clay.
Sean: Senior Vice President of corporate development James Kendall.
Sean: Triple flag delivered another strong performance in Q2 with sales of 27000 Geos.
Sean: This has resulted in a record result for triple flag in the first half of the year and places us firmly on track to achieve our 2020 <unk> sales guidance of 105 to 115000 ounces.
Sean: Our flagship asset in Wilcox.
Sean: To deliver quarter on quarter growth Ngls due to higher open pit grades.
Sean: This is underpinned year over year growth of 25% and cash flow per share.
Sean: We're also excited about the opportunity for further value creation that evolution has demonstrated 98 short months.
Operator of North Fox.
Sean: Most notably the opportunity for high grade production from a new sub level cave at the well established 48 mine.
Sean: After the completion of high grade open pit mining is an exciting development that were watching closely.
Sean: Looking ahead <unk> organic growth profile remained strong and well positioned to deliver long term value with expected sales of 135 to 145000 Ceos in 2028.
Sean: On the deal front, we've also maintained a solid pace of accretive acquisitions over the past months with an additional royalty interest in the temporary project operated by telling metals as well as new gold streams on the <unk> mines operated by like gold.
Ultimately, we remain disciplined towards capital allocation. During this period of strong precious metal prices and are pleased to announce that the performance of our business has provided the basis for our third consecutive annual increase of our dividend by 5% since we listed in 2021.
Sean: Finally, the CEO transition has gone extremely well.
Sean: Sheldon is running the day to day with the team in a seamless fashion, which is one of the clear benefits of the choice of the funding internal candidates is well regarded by the marketing team alike.
Sean: A full organizational picture is now also being set.
Sean: My departure in Q4 this year.
Sean: Barry will become Chief financial Officer, and Jamie Standen will become Chief operating officer.
The promotion of the abandoned James is a testament to the leadership and expertise as core members of Triple flag high performing team.
Sean: And it's been with Triple flag for six years, serving as VP of finance and responsible for all finance functions, including financial reporting tax and Treasury.
Sean: James who many of you know well joined Triple flag in 2017 heads our corporate development function is a talented resource geologist by training that has worked across the globe. That's okay in its former life.
Sean: These promotions reflect triple flag commitment to developing and creating growth opportunities for internal talent, a multiyear succession plan in action and showcases that our true competitive advantage has always been our exceptional team.
Sean: Furthermore, we are pleased to a phrase accounting and recently joined the team is managing director Triple flag International based in Bermuda.
Sean: Fraser has a long history with Triple flag previously as an investment banker with Scotiabank and bank of America, having advise us on our 2021 IPO in 2020 acquisition of North parks.
Sean: Fraser brings tremendous field experience networks and leadership to the deep talent pool that exists at the company.
Sean: We're excited to welcome president to Triple flag.
Sean: I'll now turn it over to Sheldon to discuss our financials for the second quarter of 2024.
Sheldon: Thank you Sean.
Sheldon: We had a strong first quarter with a portfolio producing over 27000, Geo's and record first half yield of just under 55000 ounces.
Sheldon: Puts us right on track to achieve our 2020 for guidance.
Sheldon: Cerro Lindo in North parks continue to be the two largest contributors to Q2 revenues with Cerro Lindo, receiving a strong benefit from the rise in silver prices and North park, showing year over year growth due to the higher gold grades realized.
Strong production and strong Goldman silver prices resulted in record levels of revenue and adjusted EBITDA that are significantly higher than the prior year period.
Sheldon: Most notably operating cash flow per share increased 25% when compared to the prior year period, which is the metric that I am most focused on the streaming and royalty model is working as it should with higher prices, resulting in more cash flow to shareholders and not being consumed by capital expenditures, where operating margin compression.
Sheldon: I am also pleased that our dividend has been increased to 22 per share annually up 5%.
Sheldon: <unk> increased our dividend every year since our IPO in 2021 and is my intention that we will continue this track record going forward I view growing dividends as a core part of our capital allocation strategy.
Sheldon: Lastly, I'd like to comment on our balance sheet.
Sheldon: We exited the quarter with a small net cash position our portfolio generates robust cash flows which allows for deployment into new asset at new asset additions dividends and share buybacks and repayment of debt through the course of 2023 and the first half of 2024, we repaid debt taken on in connection with the Mavericks.
Sheldon: <unk>, we acquired cash flowing royalties on AG Bal install all while increasing our dividend and buying back shares or.
Sheldon: Our cash flow outlook combined with nearly $640 million of current available liquidity gives us the financial capacity to deploy further capital for future per share growth as well as deliver higher shareholder returns.
Sheldon: Turning now to slide six I am very pleased with our continuing record of production growth. We're right on track for 2024 guidance, which will represent our seventh consecutive year production growth.
Sheldon: We're also well positioned for longer term growth.
Sheldon: We expect our portfolio to deliver 2028 sales of 135000 to 145000 Geo's a significant increase over current levels. This is despite the removal of pumpkin hollow and Moss mined from Ireland from our outlook.
Sheldon: This 2028 outlook reflects the assumptions listed on the slide these.
Sheldon: These include the development of the 48 sub level cave at North Parks Phase II production from Ato first new ton copper production at Johnson camp mind.
Sheldon: And the development of asset charges, SK Creek hope, a kona and preska as well as many others.
Sheldon: Turning now to slide seven.
Sheldon: We continue to highlight our asset diversification precious metals focus and our portfolio was to rise over 85% of its revenue from Australia and the Americas.
Sheldon: Our Q2 revenues were 100% derived from Golden Silver.
Sheldon: I want to highlight that we have meaningful silver exposure, representing 40% of Q2 revenues and reflecting strong performance at Cerro Lindo and <unk>.
Sheldon: Silver has great potential in today's environment and represent significant upside for us going forward.
Sheldon: Our shareholders invest in us for Golden Silver exposure.
Sheldon: <unk> today is trading at over $2400. It is a fantastic time to be invested in precious metals increases to the gold price will translate directly into increased cash flows for our shareholders.
Sheldon: I am very pleased with the charts on slide eight.
Sheldon: Strong production and strong gold prices are delivering record revenues and most importantly record cash flows.
Sheldon: The model is working as it should fundamental to our model or the sustained 90% asset margins, which insulate us from margin compression and Capex overruns.
Sheldon: There is an ongoing debate about the stickiness of inflation and the broader economy, our model Insulates us from inflationary pressures and provides consistent high margins and therefore dependable cash flows I.
Sheldon: I expect the per share cash flow increases to continue for years into the future as we deliver on our 2028 growth outlook and look for additional opportunities to deploy free cash flow into accretive acquisitions to the benefit of our shareholders over to you James.
James Kendall: Thank you Sheldon.
James Kendall: Luke parts is a key asset to triple flag.
James Kendall: Adding tremendous optionality.
James Kendall: Growth across different time frames.
James Kendall: Flexibility across all bodies and discovery potential across the property.
James Kendall: In the near 10 East 51.
James Kendall: <unk> continues to deliver high gold grades.
James Kendall: Both meaningful quarter on quarter and year over year growth.
James Kendall: In Q2.
James Kendall: The process grade from the city, one was <unk> 34 grams per tonne.
James Kendall: Higher than the <unk> 10 in Q1 on above the one five grams per tonne.
James Kendall: Average from 2021 2023.
James Kendall: In the medium term mining at the <unk> level is expected to contribute to a steady production profile at north parts versus the previous mine plan.
James Kendall: Following the depletion of <unk> hedged through to the commissioning of the <unk> underground.
James Kendall: In the longer term.
James Kendall: First production from <unk> is expected in 2029 and studies are being advanced to optimize development of this ore body assessing block cave in sub level cave methods, where a hybrid approach.
James Kendall: Evolution is a nice the discovery the major Tom and East 51 deposits at shallow depth adjacent to the E six deposits and four kilometers from the plant.
James Kendall: In this actions include 180 leases up nine 7% copper.
James Kendall: One three grams ton goal that maintenance hall, and 142 meters of eight.
8% copper one four grams per tonne gold at <unk> 51.
James Kendall: Interestingly these offer the potential for extraction independent at the underground materials handling system and drilling is ongoing.
We could not be more pleased with evolution optimization work to enhance the future north pumps.
James Kendall: Turning to our new streams.
James Kendall: I'm also pleased to announce the acquisition of 3% Gulfstream on the <unk> mines operated by Allied Golden coach for potential cash consideration of $53 million.
James Kendall: With minimum delivery through to 2027 of at least 6000 gold equivalent ounces per annum on a combined basis.
James Kendall: Upon close these assets at immediately cash flow.
James Kendall: And notably are expected to achieve full payback within the minimum delivery period through 2027, and the current gold price environment.
James Kendall: Closing is expected by late August 2024.
James Kendall: <unk> is an experienced operator this is demonstrated value creation through exploration investments in its short time as a public company with further synergy potential being advanced by combining <unk> into a single complex.
James Kendall: Triple flag has an existing two 5% net smelter royalty on <unk>, which.
Which we acquired about a year ago, and we know the team and the asset well.
James Kendall: Our streams cover the existing mining and exploration licenses for outbound volume growth for.
Or an extensive $16 $5 million exploration program is being executed in 2024.
James Kendall: Ultimately allied is targeting a production rates of 180 <unk> per annum and a great a 10 year mine life from the combined complex we.
Speaker Change: We look forward to working with Allied as an operating partner for years to come on that Apollo crowd.
James Kendall: <unk>.
Speaker Change: Thanks, Jim.
Speaker Change: This is likely the last set of results presented triple flag.
Speaker Change: A third of the business in May of 2016 with nothing more than the undertaking of a great financial partner and Elliott management.
Speaker Change: Particularly embodied amongst its already the driving force behind this journey.
Speaker Change: You Shouldnt appreciation of the many advantages of the streaming and royalty business model and the vision of what value can be created by applying this model to an underserved mining sector.
Speaker Change: With the company approaching nine years of execution and delivery.
Speaker Change: Part of what we've built together and I'm forever grateful for the opportunity afforded to me.
Speaker Change: We've come from obscurity to become the fourth largest precious metal streaming and royalty company in the sector.
And with these latest results we delivered a strong start to 2024.
Speaker Change: Our record performance in the first half, which pushes puts us nicely on track to achieving our guidance of 105 to 115000 Geos for 2024.
Speaker Change: This would represent our eighth consecutive projected yes, Rick which is good for our business and builds on the 34% CAGR in operating cash flow. This team has already delivered over the past seven years.
I'm not aware of any competitor, having replicated this delivery certainly under similar conditions in timeframes.
Speaker Change: Our job is to allocate capital and create value for our stakeholders through rational risk taking in pursuit of growing value per share and.
Speaker Change: I am proud of our track record, which is on full display on an absolute and relative basis and stacks up favorably on objective metrics.
Speaker Change: We've not been flawless as our disappointment pumpkin holiday.
Speaker Change: Indicates this quarter.
Speaker Change: But this relates to about 236 assets with a portfolio overall continues to deliver no portfolio only has winners in the overall portfolio performance continues to shine through.
Speaker Change: <unk> guidance. This year is nearly 40% ahead of the intermediate peers and we remain the only competitor amongst our seniors and intermediates to be on track to deliver growth from our portfolio this year versus the prior year.
Speaker Change: We remain commercially well placed to maximize value for our investors while.
Speaker Change: In our forecast and continued robust growth through to 2028 and beyond from our existing portfolio.
Speaker Change: With our amplifier power roughly 640 million U S dollars and available pro forma liquidity maintain an active deal pipeline fully actionable and cash flow from Morgan City assets Triple flag has diversified and well positioned to benefit from the current constructed metal price environment as we continue our relentless.
Speaker Change: Ernest.
Speaker Change: Although I'm proud of our objective financial and dealmaking achievements.
Speaker Change: We are proud of how we've gone about delivering those results as a relatively new company. This is perhaps best demonstrated by our second ranking by sustained <unk> of 118 global companies covered in the precious metals sector.
Speaker Change: Contributed millions of dollars to support a mining partner sustainability priorities to enhance the privilege to operate.
Speaker Change: Ill get back to the mining sector as future through many scholarship programs, we've granted to tenants students.
Speaker Change: And done so while maintaining our carbon neutrality since our inception.
Speaker Change: But the true asset I've helped develop a triple flag. These past eight years as our team and exceptional talent and depth of experience that contains.
Speaker Change: This team has delivered the deals the growth manage the risks nurtured our stakeholder relationships cultivated our deal pipeline delivered the largest tier six mining IPO in eight years and deliver growth and value, both financial and social as large investors and triple flag themselves.
Speaker Change: I will miss them. All this truly is the secret sauce, our competitive advantage along with inclusive of caring and deeply analytical highly engaged culture that drives our performance.
Speaker Change: Taking on new challenges in value based metals would not have been possible. If the business was not performing well and with our business on track to deliver our ACO brick with growth in our balance sheet in pristine condition and our underperforming assets cleaned up while our core assets continued to deliver strongly during times of robust commodity prices.
Speaker Change: This is a good time.
Speaker Change: And equally important requirement was to provide the board with strong potential possibilities we've.
Speaker Change: We've committed significant time money and resources in developing our internal talent depth over the past few years.
Speaker Change: While delighting strong external talent to alternatives.
Speaker Change: As the largest individual shareholder I am grateful to the board affecting decisively in appointing Sheldon as my successor and know he is the right choice to lead this team into an even better future.
Speaker Change: Someone who joined me on this journey from a week, that's helped deliver every deal and as a perfect cocktail of integrity, great commercial acumen, and importantly, as the respect and support the team who will be leaving.
Speaker Change: He has been my right hand, and business partner for the prostate and half years and I'm proud of what he's achieved in his personal and professional growth.
Speaker Change: The transition is accordingly preceding seamlessly and Sheldon has a read running the company on that basis I expect to formally take up by the end of the quarter as I transition to my new role.
Speaker Change: Also at <unk>.
Speaker Change: Like to think that Sheldon and the board made excellent decisions and appointing given various CFO.
Speaker Change: And James Dental this year effective on my departure.
Speaker Change: The first being with the company for many years, a deeply talented cultural barriers and a respected and admired by the teammates in our mining partners alike.
Speaker Change: <unk> worked with me at Barrington, and senior finance capacity and office depth and experience well beyond the skin of this organization and James has been involved since our first deal in 2016 is deeply talented resource geologists and needed that has worked around the world and has successfully led our corporate development capabilities Nio function through a successful IPO and beyond.
Speaker Change: These are tenants this sector will benefit well into the future.
Speaker Change: I'd like to congratulate them, both and look forward to watching them continue to grow thrive and deliver for our shareholders myself included.
Speaker Change: Finally, I'd like to end by thanking Elise are.
Speaker Change: Incredible funding shareholder.
Speaker Change: And partners for their trust and sustained support.
Speaker Change: Our board for their guidance and leadership, our mining partners for their partnership and commitment to.
Speaker Change: Our investors for their trust with their money and our remarkable team for making it all possible.
Speaker Change: It's been a privilege and a highlight of my career.
Speaker Change: So far and I'll leave you with a sense of sadness joy pride and excitement for the future.
Speaker Change: Thanks for the support and attention today, so with that let's open it up to questions.
Speaker Change: At this time I would like to remind everyone in order to ask a question press star and the number one on your telephone keypad, we'll pause for just a moment to compile the Q&A roster.
Speaker Change: Okay.
Speaker Change: Your first question comes from the line of Mark <unk>.
Speaker Change: Michael <unk> your line is open.
Speaker Change: Okay.
Speaker Change: Yes. Thank you for taking my question My question.
Speaker Change: Uh huh.
Speaker Change: Actually I have two.
Speaker Change: One is.
Speaker Change: What is the basis of your.
Speaker Change: Uh huh.
Speaker Change: Expected gold and silver price.
Speaker Change: For the future.
Speaker Change: What's the rationale behind.
Speaker Change: Debt net.
Speaker Change: That assumption of those two prices and second and more relevant question to me is about.
Speaker Change: About the impairment charges.
Speaker Change: See that.
Speaker Change: There Hasnt been mentioned.
Speaker Change: Yeah.
Speaker Change: Youre Park about this.
Speaker Change: It's not.
Speaker Change: It is not disclosed.
Speaker Change: First in there.
Speaker Change: In the dark.
Speaker Change: Kim Ann.
Speaker Change: Great. Thank you.
Speaker Change: I think our cloud command I Wonder if you know what went wrong there.
Speaker Change: Welcome to the park and if there is.
Speaker Change: Any cancer.
Speaker Change: Reversing the loss.
Speaker Change: Hugh.
Speaker Change: <unk> definitely thank you.
Speaker Change: Michael Thanks.
Speaker Change: I guess on the first point on gold and silver prices.
Speaker Change: Look I mean doing the math on this is pretty easy when you look at the ounces on margins and translating at Ford, We don't project forward Coke prices of silver prices.
Speaker Change: Right.
Speaker Change: Our investment decisions, we use a range of pricing we look at consensus we'll look at spots, we will look at where our investments start losing money because we understand that it is a dynamic environment and I think the important feature.
Speaker Change: We are structurally bullish.
Golden Silver, particularly in a world where.
Speaker Change: We see continued central bank money printing and currency devaluation.
Speaker Change: Did a podcast.
Speaker Change: Silly recently with grants interest rate observer wherever we go into this in some detail so to the extent that's of interest.
Rich you in that direction.
Speaker Change: On the impairments look firstly I think if you look at certainly most analysts out there. This is something we've provided full disclosure on these underperforming assets in the case of Nevada copper for years.
Speaker Change: And most recently I think the best way to think about that is we are not adjusting our guidance for this year, we'd iridium incorporated the underperformance into our views communicated.
Speaker Change: Communicate those quite seriously and just given sort of triggering events from an accounting point of view the prudent thing to do is what we've done which is recognize that.
Speaker Change: Sheldon to perhaps comment further, but youll see full disclosure in the MD&A is and I'll be floated about at San Jose Sean can comment on with respect I think there are many lessons I think the first thing when you look at mass.
Speaker Change: Is that was part of a portfolio of 114 assets that we acquired at a small premium when we acquired Mavericks.
Speaker Change: As you'd appreciate when you buy that many assets you have some under performance we recognize that that was suffering before we went into that investment.
Speaker Change: We requested the team made sure it had sufficient working capital and they've struggled with that continued underperform and I think the one lesson we've learnt over the last eight and a half years is there's a point where you have to make sure you're not throwing good money after bad.
Speaker Change: It's an asset in this price environment that I think if it was properly capitalized and David sort of good exploration I think with other owners and our focus there could be some interesting future in that asset, but we're not prepared to continue funding that.
So hence the recognition Nevada copper.
Speaker Change: It's probably more time than we've got so I think we've covered this in many years in the past.
Speaker Change: It's a copper assets in the United States with an underground mine that's nib, both in an open pit.
Speaker Change: Been mid various owners over time, which could have taken develop that it isn't a process at this stage and we'll see where that gets too, but I think the prudent thing, which we have done from an accounting point of view as to sort of fully reflect that.
Speaker Change: Right.
Speaker Change: Sean do you want to pick up on net retrans anything else on the assets.
Speaker Change: I'll speak to that Shawn. This is a this is sheldon speaking.
Speaker Change: Yes, so both pumping hollow on the mosque minor they are currently in insolvency processes.
Speaker Change: So we do have a prospect of recovery and the authors optimist in me would like to think we will have it but for financial reporting purposes. I think it's very important for us to be to be prudent and for us to be conservative.
Speaker Change: The Pumpkin Hall of mine is in the chapter 11 process noted states the Mas minus in the <unk> process in.
Speaker Change: Under Canadian insolvency proceedings.
Speaker Change: We are secured on both those assets and so there is some prospect, but what we did is we wrote those down to zero and we thought it was very important because.
Speaker Change: Despite the fact that these represent properties in the United States.
Maas in the case of mass scores at all time highs copper prices are robust with a lot of some capital there and so I can see some recovery there I don't want to hold out.
Speaker Change: The whole publicly of that because these are inherently uncertain processes, we thought being conservative is the right stance, we wrote them down to zero and that allows our investors and shareholders to understand that there there can be no further bad news from from these from these assets and I've seen others in our sector.
Speaker Change: Take a similar stance with uncertain processes, where they may be the prospect of recovery bye.
Speaker Change: Going to zero I think gives us gives a base and it's and you can be confident that it has no further financial statement exposure from these two assets for Triple flag.
Speaker Change: And Michael I'll, just I'll end by just saying look at the fundamental performance in the work. This team does on the portfolio should be self evident both in terms of capital deployment the yields regenerating.
Speaker Change: Cash flow that this is generating we are building our portfolio and that's what we've done with over 230 assets. So hopefully that addresses your question.
Speaker Change: Okay.
Speaker Change: Thank you. Your next question comes from the line of Tanya <unk> with Scotiabank. Your line is open.
Speaker Change: Oh, good Doug Good morning, everyone. Thank you for taking my questions. Congratulations John on your new appointment and Sheldon and team.
Speaker Change: On Europe.
Speaker Change: I got a couple of questions. The first thing I'm just going to start on the just some.
Speaker Change: Modeling questions just.
Speaker Change: We are expecting a stronger second half.
Speaker Change: I think that that.
Speaker Change: And your guidance for the year can I just review, we had talked about quarter over quarter improvement.
Speaker Change: At North.
Speaker Change: North Park is that still what we're expecting that for Q3 is going to be a bit lower than Q4 with Q4 being the best quarter.
Quarter overall for the company.
Speaker Change: Got it thanks for that.
Speaker Change: Okay liquidity Tanya thanks, so much.
Speaker Change: Today, I'm going to ask James to comment.
James Kendall: Comment on that.
James Kendall: Yes.
James Kendall: Kenya.
Speaker Change: Profile provide asset by asset sort of quarterly guidance, but directionally stronger Q3, and a slightly softer Q4.
Speaker Change: Those products, which is what we're expecting right now, but obviously.
Speaker Change: Those things do change with production scheduling and rescheduling of deliveries.
Speaker Change: And shipments.
Speaker Change: Okay. So okay. So Q3, North park stronger than lower Q4, and then for the company as a whole then should I be thinking Q3, <unk> Q4 generally speaking.
Terry: Terry I think.
Terry: It's probably not the right.
Terry: But we don't provide quarterly guidance I think we prefer.
Terry: To provide directional guidance, particularly as it relates to the big asset.
Terry: There's a lot of moving pieces in the guidance range. We have is is what were on track to achieve.
Speaker Change: Okay Alright.
Speaker Change: All right, maybe I'll move on then to <unk>.
Speaker Change: Looking at the.
Speaker Change: The acquisition that you did that last night or announced last night.
Speaker Change: That production profile that you.
Speaker Change: Companies given then.
Looking at what your guidance says using 18 50 that you've given.
Speaker Change: <unk> 28 or 1900 thereabout.
Speaker Change: You say the internal rate of return is.
Speaker Change: With operating mines, which are generally in the 5% to 6%.
Speaker Change: Would that be fair game.
Speaker Change: Thank you.
Speaker Change: I think significantly superior yes.
Speaker Change: Tanya this is.
Speaker Change: You bet.
Both lines have relatively modest reserve lives, but that alone potential life beyond that.
Speaker Change: And Youll recall, we acquired a royalty on these mine life at least about a year ago.
Speaker Change: Since acquiring that royalty the mine license fee increased dramatically since it's been a really good investment for us. So we expect the company's EBIT to add to the mine life here.
Speaker Change: We see this as a.
Speaker Change: A much more robust return of consensus processing unit, you mentioned, partly driven by the fact the line losses.
Speaker Change: The effects of the short term, but I think even with that we think.
Speaker Change: It would be more likely in the double digits.
Speaker Change: And we think the minimum deliveries as strong feature of this.
Speaker Change: Transaction.
Speaker Change: Okay.
Speaker Change: Youre thinking double digit return.
The 1900 gold price just on reserves alone.
Speaker Change: Some of the reasons I said.
Speaker Change: So we would assume some of the resources converts that we'd make modest assumptions based on our historical knowledge and churn analysis, the property or some of the results.
Speaker Change: Okay. So you didn't have some of the resorts in that okay. Now thats helpful. Thank you and then finally I think.
Speaker Change: An underappreciated with these with these assets is.
Speaker Change: Traditionally <unk> has been explored.
Speaker Change: On the compensation area, which is basically the mining lease that's a very large property around that which is actually quite remarkably and under explored.
Speaker Change: And while we're not.
Speaker Change: Typically pricing that into that transaction I think it represents great upside.
Speaker Change: Right.
Speaker Change: As part of that.
Speaker Change: And until we really like and I think that's supported by the amount of money that's going into exploration. These properties right now.
Speaker Change: Okay.
Speaker Change: Thank you for that and then just on just on the <unk>.
Speaker Change: The M&A pipeline with the pipeline that's out there we've always talked about.
$100 million to $300 million range that.
Speaker Change: One of your competitors has talked about now the range is 100 to 700 million so maybe.
Jamie you can talk to us about whether you are seeing now in larger deals.
Speaker Change: Your deals have been under $100 million. So I'm, just kind of thinking what's your sweet spot and what youre seeing out there.
Speaker Change: Tanya I think our sweet spot is.
Speaker Change: The same as it has.
Speaker Change: In our prior discussions at this point the $100 billion to $300 billion range is a really good one for us it's very easy for us to fund. It also would result in sales was meaningful scale.
Proportionate to the size of the community.
Speaker Change: I think it's fair to say that all the large transactions seen bye bye all the competitors.
Speaker Change: Typically yes.
Speaker Change: Somebody is getting a phone call on a $700 million deal with your second.
Speaker Change: A good example of a $700 million deal so some.
Speaker Change: It's probably similar.
Speaker Change: Some consistency across that and this transaction scale, which we're seeing.
Speaker Change: Some complexity in these deals, particularly the loss rent and there's no guarantee that discussion.
Speaker Change: Discussions that if it will involve transactions at this $500 million plus Mark Kashi can't get book.
Speaker Change: Thanks to the underlying <unk>.
Speaker Change: Tax policy, so we're optimistic.
Speaker Change: Pipeline looks good on those larger transactions, but it's very difficult to forecast the timing.
Speaker Change: That continues to be a number.
On smaller transactions the <unk> and this was a great addition, particularly given the immediate cash flow and.
Okay.
Speaker Change: It was available in the market to us and we had a credit cycle for the assets. So we'll continue to add these sort of acquisitions, where we can I think the key is.
Speaker Change: As a large number of companies with start with capital.
Speaker Change: Some of those represent good opportunities, but some of those represent hazards and radiates avoiding the houses with some of the smaller.
Speaker Change: More challenged situations, but we are seeing a strong pipeline.
So we're pretty happy about it.
Speaker Change: I would just add that.
Speaker Change: As you would appreciate with Sheldon James given another's, having sort of peanut.
Speaker Change: The decision, making table for the extent of this journey.
Speaker Change: I think in children can comment beyond but you should expect any change in definition of sweet spot to discipline.
Speaker Change: On value.
Speaker Change: Capital allocation and that's the point on the sweet spot I would think if somehow we found another north box tomorrow, we have the capacity to do that.
Speaker Change: You should expect that we would do just that I would think.
Speaker Change: Okay, and then with cell C and precious metals, both on the development asset and producing assets.
Speaker Change: There's still that 100 $300 million DLC itself.
Speaker Change: <unk>.
Speaker Change: Hi, Tammi this is sheldon.
Speaker Change: I think theres really been no real appreciable change in the pipeline over the course of the year.
Speaker Change: I don't want to just reiterate all the changes points, but it's like it's it's a pretty deep pipeline. There are some of those like very large transactions out there, but as James said it never is.
Speaker Change: It's hard to get visibility on what the percentages of those being up and being realized and they might not come to the market at all right. These are these are the decisions the operators are making and their surveying that their menu of choices, but theres also a deeper pipeline of smaller transactions, which also can represent really good value for us in kind of <unk>.
Speaker Change: 0.2.
Speaker Change: The deal that we announced yesterday on AGL and <unk> I think these are really good really good transactions for us in a really good home for over $50 million of our capital so.
If we could bring some more of those to book that is good but if we find something that's.
Sizable and it benefits the value of shareholders I think.
Speaker Change: Where we're going to be hunting those down as well.
Speaker Change: And you'd be open to syndication like you mentioned on the previous call.
Speaker Change: Oh for sure if it's if it's.
Speaker Change: A certain size, where certainly opened a syndication, particularly if there is a factor there that for some reason.
Len, you don't want to be overweight in the portfolio, whether that's stage.
Speaker Change: Some kind of aspect of the risk profile that you think on a risk return basis, it's attractive on a smaller size and but on a on a more heavy basis thats not where you want to go. So when we've had we've had good dialogue with a number of parties I mean, we've seen examples of that in the market recently, where someone data partner or syndicate, and we're certainly open to any of those.
Speaker Change: Any of those discussions.
Speaker Change: At the end of the day, we want to do what's best virtual flight shareholders. That's our objective.
Speaker Change: Yeah, Okay, great. Thank you so much and congratulations.
Speaker Change: Thank you Tanya.
Speaker Change: And as a reminder, if you'd like to ask a question. Please press Star then the number one on your telephone keypad.
Speaker Change: Okay.
Speaker Change: And there are no further questions at this time I will hand, the call back over to Mr. Escobar for closing remarks.
Mr. Escobar: Really thank you and thanks, everybody for your time and attention today and the questions.
Mr. Escobar: <unk> I think where we started.
I think what people say and what they do.
Mr. Escobar: With the current side and I think what Youre seeing in this team is execution on what we set out to do.
Speaker Change: Manager of sensible portfolio focus on shareholder value and when you start looking strongly.
Speaker Change: Strongly at the actual track record, particularly coming into this year at the time that coincides with near cyclical highs in gold and silver prices you see the benefits I mean with us being literally.
Speaker Change: One of only three between the seniors and intermediates.
Speaker Change: His guidance last year and we're the only guys to indicate increases in our guidance for this year and be well on track with record performance in the first half of the year with a good balance sheet more deals in the pipeline.
Speaker Change: And underpinned with a really strong team I think for our investors.
Speaker Change: Puts triple flag in an incredibly strong position so with that thank you all very much.
Speaker Change: We look forward to more of this in the future with with the Triple flag team.
Bill: Thanks, very much bill.
Speaker Change: Thank you. This does conclude today's conference call you may now disconnect.