Q1 2025 Triple Flag Precious Metals Corp Earnings Call

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. 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. Today, I am joined by our Chief Financial Officer, Eban Bari, and our Chief Operating Officer, James Dendle.

Sheldon Vanderkooy: 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 [inaudible]

Sheldon Vanderkooy: 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 in a rising gold and silver price environment.

Sheldon Vanderkooy: 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.

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

Sheldon Vanderkooy: 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, Angle of Goldishanti.

Sheldon Vanderkooy: 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.

Sheldon Vanderkooy: 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.

Sheldon Vanderkooy: The returns generated by this transaction are exceptionally robust and are regular development updates with the operator management team, are positive. Our Cata is on track to deliver first production in the near term.

Sheldon Vanderkooy: 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 has now depleted, and we continue to expect the processing of the stockpile ore through 2025.

Sheldon Vanderkooy: 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.

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

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

Thank you, Sheldon.

Sheldon Vanderkooy: The business delivered strong volumes amidst the backdrop of record, precious metals prices, as well as continuing strong margins.

Sheldon Vanderkooy: The single most important metric to be focused on is operating cash flow per share, which has increased by 74% year over year.

Sheldon Vanderkooy: We view up progressively growing Zid does an end as a core part of our capital allocation strategy. [inaudible]

Sheldon Vanderkooy: Our decision has been maintained at 21 cents US on an annual basis.

Sheldon Vanderkooy: 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.

Sheldon Vanderkooy: We also remain active on our share-by-backs during the first quarter. Buying back approximately the $495,000 shares in the open market at price of $23.55.

Sheldon Vanderkooy: Opportunistic share buybacks remain a core part of our shareholder return strategy.

Lastly, I'd like to comment on our balancing.

Robust

Sheldon Vanderkooy: Operating cash flows and the could be available under our credit facility of...

A Billion Dollars.

Kisses

Sheldon Vanderkooy: The capital to continue to deploy dollars into creative opportunities to drive future growth for the business benefit of shareholders.

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

Sheldon Vanderkooy: Namely, top tier assets, Precious Metals focus, and a portfolio which is predominantly centered in Australia and the Americas.

Sheldon Vanderkooy: As Sheldon noted earlier, North Parks had a great quarter due to higher open-pick grades 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 gold and silver.

Sheldon Vanderkooy: Finally, our portfolio is predominantly located in mining family jurisdiction. A key criteria as 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 royalty 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.

Speaker Change: On the slide you'll see a picture taken as part of the asset site visits conducted during our due diligence, which shows the core of Angela Gold's BT complex, a key focus of their future growth plans.

Speaker Change: We're excited to add a royalty on one of North America's largest new gold discoveries to our portfolio.

Speaker Change: Which has a 1% rate for the full life of mine and covers the entirety of the Silicon Emerling Deposits, as well as the known extensions. It has no step-down, spy-downs, or cats.

Speaker Change: The project is contemplated as a straightforward, heap-leaching, mailing operation, processing upside material, an Anglo-gold expect to release a pre-free development study within the next 12 months.

Speaker Change: Expanded Silicon is one of North America's largest new gold discoveries, which Anglo-Golder Shanty has grown rapidly from first drilling in 2018.

Into 22-16 million acts of total resource today.

Speaker Change: 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 Writers' Telecom.

Speaker Change: Definition drilling and high level of site activity speaks to Anglo-Golt's focus on developing a long-term operation rather than simply demonstrating district expiration optionality.

It is important to note that we are in the Carrot Adline.

from Merlin.

Speaker Change: There are significant intercepts that we have interpreted to not be included in the resource estimate due to drill holes facing. This includes an essay of 1.3 gram material over 226 meters.

Speaker Change: We look forward to seeing the results of the recent drill program in two course.

The expanded silicon is clearly a very large and well-in-date system.

Speaker Change: It will grow and develop over a long period of time.

Speaker Change: Put this in context. This slide highlights the evolution of the expanded Silicon resources against Goldstrike and Cortez, two of the most prolific mining districts in Nevada.

Speaker Change: You can see the growth trajectory at expanded silicon parallel to these districts, notably the 16 million answer resource or any exceeds both Goldstriker and Cortez at the time they began to report meaningful production in 1987 and 1995 for Bari, respectively.

Speaker Change: Each of these districts have ultimately delineated over 50 million acts as the resources cumulatively and are still going strong as core pieces of Nevada Goldmines operations.

Speaker Change: 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 epithelma gold deposits globally.

Thank you for watching!

Speaker Change: Triple Flag has delivered a consistent track record of GEO growth insinception.

Speaker Change: Beyond the guidance we have set for 2020-25, we see further growth, 135-145,000 Geos.

Speaker Change: In 2029, with the addition of expanded silicone, we now see strong potential for this pace of grit to continue well beyond 2029.

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

Thank you, James.

Sheldon Vanderkooy: You've had a strong start to 2025, and are well positioned to achieve our 2025 guidance. We saw robust growth in operating cashflow per share and delivered transactions that will benefit our shareholders for decades to come.

Thank you for joining us. Thank you.

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.

Thank you for joining us. Bye-bye. Bye.

Speaker Change: 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.

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

Speaker Change: Your first question comes from the line of Derick Ma with PD Cowan. Please go ahead.

Speaker Change: Thank you very much. We're going to share a buyback sit within the capital location strategy and what can shareholders expect in terms of share a buyback going forward.

Speaker Change: And, of course, the other element of the Capitol 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 at Lawson.

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.

Speaker Change: 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, there are 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 existing 0.8% GR royalty, which we are 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. 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. We'll be working through that, and we'll be working through that.

Speaker Change: So, you know, the company's 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 or really next.

Speaker Change: Thank you all for having me. Thank you.

Thanks, Derick.

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

Brian Macarthur: 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 ounces 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 two, 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.

Thank you for watching!

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