Q1 2025 Triple Flag Precious Metals Corp Earnings Call

Danica: Thank you for standing by. My name is Danika, and I will be your conference operator today. At this time, I would like to welcome everyone to the Triple Flag Precious Metals Q1 2025 conference call. All lines have been placed on mute to prevent any background noise.

Danica: After the speaker's remarks, there will be a question and answer session.

Danica: If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you.

Danica: I would now like to turn the call over to the CEO , Sheldon Vanderkooy. Please go ahead.

Sheldon Vanderkooy: Thank you, Danica. Good morning everyone, and thank you for joining us to discuss Triple Flag's first quarter of 2025 results.

Danica: Today, I am joined by our Chief Financial Officer, Eban Bari, and our Chief Operating Officer, James Engel

Danica: Triple Flag achieves strong GEOs and record financial results to start the year. Sales of nearly 29,000 GEOs resulted in record EBITDA of $71 million US during the first quarter of 2025, with record operating cash flow of $66 million.

Danica: This strong performance has positioned us well to not only achieve our 2025 GEO guidance of 105 to 115,000 ounces, but demonstrates our ability to directly realize higher cash flows and a rising gold and silver price environment.

Danica: To further grow our business, Triple Flag has also maintained a solid pace of acquisitions over the last four months, including our proposed acquisition of origin royalties.

Danica: This transaction announced on April 22nd will result in Triple Flag owning a 1% NSR royalty on the expanded Silicon Gold project in Nevada.

Danica: Expanded silicone is a top-tier gold asset located in a premier jurisdiction that is operated by one of the world's most successful producers, Angleville De Chanty.

Danica: The asset has a track record of rapid growth and has unparalleled exploration potential. We look forward to the completion of this transaction in the third quarter of this year.

Danica: Earlier in March, we are pleased to announce the Tuckian acquisition of 5% silver and gold streams on the Arcada and Azuka mines in Peru for $35 million. The returns generated by this transaction are exceptionally robust and are regular development updates with the operator management team, our positives.

Arcada is on track to deliver first production in the near term.

Danica: Turning to our cornerstone asset, North Park's continued to deliver record results during the quarter, driven by the processing of higher-grade open pit ore. As expected, mining of these pits is now depleted, and we continue to expect the processing of the stockpile ore through 2025.

Danica: Looking further ahead, the next stage of high-grade gold ore from North Park is also advancing to production. Access to the first sub-level at E48 is now substantially complete, and commissioning is expected in the second half of 2025.

Danica: Finally, we are proud to highlight our top industry ranking by Morningstar Sustainolytics, which we achieved during the first quarter. This ranking is a testament to the commitment of our team and mining partners to ESG.

Danica: I'll now turn it over to Eban to discuss our financials for the first quarter of 2025.

Thank you, Sheldon

Eban Bari: Business-delivered strong volumes amassed the backdrop of record precious metals prices as well as continuing strong margins.

Eban Bari: The single most important metric we focus on is operating cash flow per share, which has increased by 74% year over year.

Eban Bari: We view a progressively growing dividend as a core part of our capital allocation strategy.

Eban Bari: Our dividend has been maintained at $0.21 US on an annual US basis.

Eban Bari: I'm proud that we have increased our dividend every year since our IPO, and will continue to assess the potential for further increases going forward.

Eban Bari: We also remain active on our share buybacks during the first quarter. Buying back approximately 490,000 shares in the open market at price of $23.55 Canadian. Opportunistic share buybacks remain a core part of our shareholder returns strategy.

Lastly,

I'd like to comment on our bow-shade.

Eban Bari: We exited the quarter with zero debt, a clean balance sheet, robust operating cash flows, and liquidity available under our credit facility of a billion dollars gives us the capital to continue to deploy dollars into creative opportunities to drive future growth for the business benefit of shareholders.

Eban Bari: Moving ahead, we continue to highlight three key aspects of our investment thesis.

Eban Bari: Namely, top tier assets, Precious Metals focus, and a portfolio which is predominantly centered in Australia and America.

Sheldon Vanderkooy: As Sheldon noted earlier, North Park's had a great quarter to use a higher open pick to create, representing a significant portion of our revenue for the period.

Sheldon Vanderkooy: Our overall revenue is derived 100% from Precious Metals, which is roughly three-quarters from gold.

Sheldon Vanderkooy: This pure play exposure ranks amongst the highest in the sector to precious metals and offers investors' exposure to many favorable tailwinds for both Golden Silver.

Sheldon Vanderkooy: Finally, our portfolio is predominantly located in mining family jurisdictions. A key criteria is we look to expand our portfolio through acquisition.

Sheldon Vanderkooy: I will now turn it over to James to discuss expanded Siliconville project.

Thank you, Eban.

Sheldon Vanderkooy: As Sheldon highlighted earlier, we are pleased to announce the acquisition of origin royalties a few weeks ago, which resulted in Triple Flag.

Sheldon Vanderkooy: Retaining 1% NSR rolls you on the Expanded Silicon Gold Project, a Tier 1 asset.

Sheldon Vanderkooy: All of the other assets and liabilities of the existing origin corporation will be spun into a new and separate company upon close.

Sheldon Vanderkooy: On the slide you'll see a picture taken as part of the asset site visits conducted during our divisions, which shows the core of Anger Gold's BT complex, a key focus of their future growth plans.

Sheldon Vanderkooy: We're excited to add a royalty on one of North America's largest new gold discoveries to our portfolio, which has 1% rate for the full life of mine and covers the entirety of the Silicon and Merlin deposits, as well as the known extensions. It has no stepdance, violence, violence, or cats.

Sheldon Vanderkooy: The project is contemplated as a straightforward, heap-leaching, melling operation, processing upside material, an Anglo-gold expect to release a pre-physiability study within the next 12 months.

Sheldon Vanderkooy: Expanded Silicon is one of North America's largest new gold discoveries, which Angler Gold Sheldon has grown rapidly from first drilling in 2018.

into 21 to 16 million answers at Total Resource today.

Sheldon Vanderkooy: We see strong potential for this resource to continue growing in the near term, from infill and resource upgrade drilling within the Merlin mineralisation footprint, as well as areas the north, west and east of Merlin and the north west of Silicon.

Sheldon Vanderkooy: Thanks on our side visits and Anglo-Gols' disclosures, there are numerous drawers that are active on the property.

Sheldon Vanderkooy: The definition drilling and high level of site activity speaks to Anglo-Golves' focus on developing a long-term operation rather than simply demonstrating district exploration optionality

It is important to note that within the current outline

for Mjörland.

Sheldon Vanderkooy: We look forward to seeing the results of the recent drill programs in two course.

Sheldon Vanderkooy: Expanded silicone is clearly a very large and well-in-date system that will grow and develop over a long period of time.

Sheldon Vanderkooy: Put this in context. This slide highlights the evolution of the expanded Silicon resources against Gold Striking Cortes, two of the most prolific mining districts in Nevada.

Sheldon Vanderkooy: You can see the growth trajectory at expanded telecom parallel to these districts. Notably, the 16 million answer resource already exceeds both Goldstrike and Cortez. At the time, they began to report meaningful production in 1987 and 1995 for Bari, respectively.

Sheldon Vanderkooy: Each of these districts have ultimately delineated over 50 million acts as a resource as cumulatively and is still going strong as core pieces of Nevada goldmines operations.

Sheldon Vanderkooy: We strongly believe expanded silicone will continue to grow and has the potential to write for some of the largest gold assets in Nevada and the largest heavy-film or gold deposits globally.

Sheldon Vanderkooy: Triple Flag has delivered a consistent track record of Geo Growth insinception.

Sheldon Vanderkooy: Beyond the guidance we have set for 2025, we see further growth, the 135 to 145,000 Geos

Sheldon Vanderkooy: in 2029. With the addition of expanded silicon, we now see strong potential for this pace of growth to continue well beyond 2029.

Sheldon Vanderkooy: Silicon will join Konae and Hope Bay as well as other projects that will drive growth in the long term.

Sheldon Vanderkooy: I'll now pass back to Sheldon to conclude the formal pass of the presentation.

Thank you, James.

Sheldon Vanderkooy: We have had a strong start to 2025 and our well-position to achieve our 2025 guidance. We saw real-blast growth in operating cashflow per share and delivered transactions that will benefit our shareholders for decades to come.

The model is working well.

Sheldon Vanderkooy: The record gold prices are translating into record cash flows as they should. We are deploying those cash flows into a growing dividend for shareholders, and we reinvest in high-quality assets such as silicon to grow the portfolio. We are debt-free and have significant capacity to grow the portfolio going forward. Thank you very much.

Sheldon Vanderkooy: Alright, at this time, I would like to remind everyone in order to ask a question. Press star then the number one on your telephone keypad.

Sheldon Vanderkooy: We will pause for just a moment to compile the Q&A roster.

Sheldon Vanderkooy: Your first question comes from the line of Derrick Ma with TD Cowan. Please go ahead.

Derek Ma: Thank you very much. We're going to share a buyback sit within the capillacation strategy and what can shareholders expect in terms of share a buyback going forward?

Speaker Change: Yeah, hi Derick, this is Sheldon, I'll take that one. We've always been opportunistic on share buybacks. We generate very robust cash flows and whenever we see an opportunity to take some shares out of the register, we look forward to that. We were pretty robust on the share buybacks in Q1 and really we just saw that the market gave us an opportunity to do so at very attractive prices. [inaudible]

Speaker Change: We're always balancing the pipeline versus the share of buybacks and of course the other element of the capital returns is a dividend and we've been pretty clear and consistent since we've gone public that we increase the dividend annually so it sits in with that but we don't have any stated policy on the buybacks that lock us in.

Speaker Change: Got it. And in terms of Preska, there's some verbiage there in terms of the conditions that Triple Flag would like to see and move forward to that option. Have any of the thinking internally changed with the update of feasibility and what do you guys envision in terms of that asset?

Derek Ma: Yeah, I'll turn it over to James. I don't think anything's really changed, but we're quite excited about this project, but I'll turn it over to James No, Derick nothing's really changed. The feasibility study was published a few weeks ago

Speaker Change: We are working with the company to review that feasibility study. We have an existing 0.8% GR royalty which would be very happy to hold.

Speaker Change: We will look at this as a fresh investment decision, so we'll be working through that over the balance of the back end of the year.

Speaker Change: The two conditions that you'll really probably recall, the first is that the study has to be completed to our satisfaction, so in other words, we agree it's executable and...

Speaker Change: That satisfies all of our requirements for that level of study. The second is the company has to be fully funded through to pre-cash flow essentially.

Speaker Change: So, you know, the company is obviously working through those funding elements and we're progressing in parallel with those so we expect to be able to say more, you know, later in the year we're really next.

Speaker Change: Thank you. I'll pass it on to the next. Thank you.

Thanks, Derick.

Speaker Change: Alright, our next question comes from Brian MacArthur with Raymond James. Please go ahead.

Brian McArthur: Good morning and thank you for taking my question. It relates to the prepay with Steppy Gold. Can you just go through where we stand on that and whether you expect to get the remaining answers on the prepay this year? Thank you.

Speaker Change: Yeah, thanks, Brian , to Sheldon. I'll answer that. It's absolutely clear that step owes us the 1,650 ounces of gold. They've been using their cash flows to advance ATO Phase 2, and they repeatedly asked us for extensions in delivering those ounces.

Speaker Change: Eventually we just said no more to these tensions and we're taking action to enforce payment.

Speaker Change: We do have a parent guarantee, and based on the public disclosure, Steph Gold is performing very well in benefiting from the higher gold price. I really can't say much more given that this is in a legal action right now, but I do expect to get those ounces.

Great, thank you very much.

Speaker Change: Alright, that is all the questions we have for today. Thank you all for joining. That concludes today's call. You may now disconnect.

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