UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2025
Commission File Number: 001-41484
TRIPLE FLAG PRECIOUS METALS CORP.
(Translation of the registrant’s name
into English)
TD Canada Trust Tower, 161 Bay Street, Suite 4535,
Toronto, Ontario, Canada M5J 2S1
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F ¨ Form 40-F x
Exhibits 99.1 of this Form 6-K are incorporated
by reference into Triple Flag Precious Metals Corp.’s registration statements on Form F-10 (File No. 333-279789) and Form S-8 (File No. 333-267209).
The following document, which is attached as an exhibit hereto, is
incorporated by reference herein:
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| |
TRIPLE FLAG PRECIOUS METALS CORP. |
| |
|
|
| Date: February 19, 2025 |
By: |
/s/ C. Warren Beil |
| |
|
Name: C. Warren Beil |
| |
|
Title: General Counsel |
Exhibit 99.1
NEWS
RELEASE
Toronto,
February 19, 2025
Triple
Flag Announces Record 2024 Results Driven by Strong Growth at Northparkes and Cerro Lindo
Triple
Flag Precious Metals Corp. (with its subsidiaries, “Triple Flag” or the “Company”) (TSX: TFPM, NYSE: TFPM) announced
its results for the fourth quarter and full year of 2024 and declared a dividend of US$0.055 per common share to be paid on March 14,
2025. All amounts are expressed in US dollars unless otherwise indicated.
“2024
marked Triple Flag’s 8th consecutive year of record GEOs, driving a nearly 40% year-over-year increase in operating cash flow per
share,” stated Sheldon Vanderkooy, CEO. “We delivered in the upper half of our GEOs guidance for 2024 and reinvested
our cash flows into accretive acquisitions to deliver compounding per share growth. We are also pleased to have entered into an agreement
in December 2024 to acquire the Tres Quebradas royalty, gaining near-term cash flow exposure to a large, well-capitalized mining
project operated by Zijin with a long life and significant exploration potential.”
“Our
strong organic growth profile to 135,000 to 145,000 GEOs in 2029, progressive dividend, peer-leading insider ownership, as well as nearly
$740 million in available liquidity for new deals should continue to drive shareholder value in the years to come.”
Q4
2024 and Full Year 2024 Financial Highlights
| | |
Q4
2024 | | |
Q4
2023 | | |
FY2024 | | |
FY2023 | |
| Revenue | |
| $74.2
million | | |
| $51.7
million | | |
| $269.0
million | | |
| $204.0
million | |
| Gold
Equivalent Ounces (“GEOs”)1 | |
| 27,864 | | |
| 26,243 | | |
| 112,623 | | |
| 105,087 | |
| Operating Cash Flow | |
| $63.5
million | | |
| $37.6
million | | |
| $213.5
million | | |
| $154.1
million | |
| Net Earnings (Loss) (per share) | |
| $41.3
million ($0.20) | | |
| $9.8
million ($0.05) | | |
| ($23.1
million) (-$0.11) | | |
| $36.3
million ($0.18) | |
| Adjusted
Net Earnings2 (per share) | |
| $36.3
million ($0.18) | | |
| $17.8
million ($0.09) | | |
| $109.6
million ($0.54) | | |
| $66.6
million ($0.33) | |
| Adjusted
EBITDA3 | |
| $63.0
million | | |
| $41.0
million | | |
| $220.2
million | | |
| $158.5
million | |
| Asset
Margin4 | |
| 92% | | |
| 91% | | |
| 92% | | |
| 90% | |
GEOs
by Commodity, Revenue by Commodity, and Financial Highlights Summary Table
| | |
Three Months
Ended December 31 | | |
Year Ended
December 31 | |
| ($ thousands except
GEOs, Asset Margin and per share numbers) | |
2024 | | |
2023 | | |
2024 | | |
2023 | |
| GEOs1 | |
| | | |
| | | |
| | | |
| | |
| Gold | |
| 17,272 | | |
| 14,997 | | |
| 70,774 | | |
| 61,251 | |
| Silver | |
| 10,381 | | |
| 9,883 | | |
| 40,862 | | |
| 38,983 | |
| Other | |
| 211 | | |
| 1,363 | | |
| 987 | | |
| 4,853 | |
| Total | |
| 27,864 | | |
| 26,243 | | |
| 112,623 | | |
| 105,087 | |
| | |
| | | |
| | | |
| | | |
| | |
| Revenue | |
| | | |
| | | |
| | | |
| | |
| Gold | |
| 46,002 | | |
| 29,568 | | |
| 169,051 | | |
| 119,041 | |
| Silver | |
| 27,649 | | |
| 19,484 | | |
| 97,726 | | |
| 75,554 | |
| Other | |
| 562 | | |
| 2,687 | | |
| 2,214 | | |
| 9,429 | |
| Total | |
| 74,213 | | |
| 51,739 | | |
| 268,991 | | |
| 204,024 | |
| Net Earnings (Loss) | |
| 41,280 | | |
| 9,755 | | |
| (23,084 | ) | |
| 36,282 | |
| Net Earnings (Loss) per Share | |
| 0.20 | | |
| 0.05 | | |
| (0.11 | ) | |
| 0.18 | |
| Adjusted
Net Earnings2 | |
| 36,252 | | |
| 17,754 | | |
| 109,607 | | |
| 66,598 | |
| Adjusted
Net Earnings per Share2 | |
| 0.18 | | |
| 0.09 | | |
| 0.54 | | |
| 0.33 | |
| Operating Cash Flow | |
| 63,473 | | |
| 37,644 | | |
| 213,503 | | |
| 154,138 | |
| Operating Cash Flow per Share | |
| 0.32 | | |
| 0.19 | | |
| 1.06 | | |
| 0.77 | |
| Adjusted
EBITDA3 | |
| 62,980 | | |
| 41,017 | | |
| 220,200 | | |
| 158,541 | |
| Asset
Margin4 | |
| 92% | | |
| 91% | | |
| 92% | | |
| 90% | |
Corporate
Updates
| · | Acquisition
of Tres Quebradas royalty. Triple Flag announced in December 2024 that it entered
into an agreement to acquire a 0.5% gross overriding revenue (“GOR”) royalty
on the Tres Quebradas construction-stage lithium project from Lithium Royalty Corp. for total
cash consideration of $28 million. Closing is expected in the first quarter of 2025. Refer
to the December 19, 2024, press release on our website, Triple Flag to Acquire a
Royalty on Tres Quebradas, for further details. |
| · | Quarterly
Dividend Declared: Triple Flag’s Board of Directors declared a quarterly dividend
of US$0.055 per common share that will be paid on March 14, 2025, to shareholders of
record at the close of business on March 3, 2025. |
| · | Share
Buyback Activity: Triple Flag renewed its normal course issuer bid (“NCIB”)
during the fourth quarter of 2024 in accordance with a disciplined capital allocation strategy
focused on balance sheet management, returns to shareholders and accretive growth opportunities.
During the period from November 15, 2024, to November 14, 2025, Triple Flag is
authorized to purchase up to 10,071,642 of its common shares (representing 5% of the Company’s
issued and outstanding common shares at the time of the NCIB renewal). Since the NCIB renewal,
Triple Flag bought back 539,000 shares in the open market for $8.7 million, of which 335,000
shares for $5.4 million was during the first quarter of 20251. |
1 Up to February 18, 2025
| · | Top
ESG Risk Rating by Sustainalytics: Subsequent to quarter-end, Triple Flag’s ranking
improved to first in ESG Risk Ratings by Morningstar Sustainalytics within the precious metals
industry and precious metals mining sub-industry. Triple Flag’s top ranking is a testament
to the commitment of our team and mining partners to ESG. Triple Flag is now ranked 39th
out of more than 15,000 companies globally rated by Morningstar Sustainalytics. |
2025
Guidance
In
2025, we expect stream sales and royalty revenue of 105,000 to 115,000 GEOs. 2025 guidance is based on public forecasts and other disclosure
by the owners and operators of our assets and our assessment thereof.
At
Northparkes, we continue to expect higher grade open pit ore from E31 and E31N to contribute to stream deliveries through 2025. These
deposits are expected to be depleted during the year, as previously announced. Development of the sub-level cave (“SLC”)
at E48 commenced in July 2024, with access to the first sub-level now substantially complete and commissioning expected to start
in the third quarter of 2025. A concept study in 2024 included a gold grade of 0.41 g/t, with production from the E48 SLC expected to
contribute to stream deliveries through the course of its ramp-up. The E48 SLC orebody currently has a mine life ending in 2034. A pre-feasibility
study is expected to be completed in the first quarter of 2025.
| | |
2025
Guidance1 |
| GEOs
Sales2 | |
105,000 to 115,000 GEOs |
| Depletion | |
$70 million to $80 million |
| General Administration Costs | |
$24 million to $25 million |
| Australian
Cash Tax Rate3 | |
~25% |
| 1 | Assumed
commodity prices of $2,600/oz gold and $30.50/oz silver. |
| 2 | Refer
to Endnote 1. |
| 3 | Australian
Cash Taxes are payable for Triple Flag’s Australian royalty interests, specifically
Fosterville, Beta Hunt, Stawell, and Henty. |
Long-Term
GEOs Outlook
We
expect our business to deliver sales of 135,000 to 145,000 GEOs in 2029, representing a significant increase over current levels mainly
driven by the following assumptions and operator guidance:
| · | Northparkes
– The development of the E48 SLC as described above. |
| · | Cerro
Lindo – Pursuant to the stream agreement, a step-down in the stream rate from 65% to
25% starting in 2026. |
| · | ATO
– Production from Phase 2. We expect the annual cap on our gold and silver streams
to be fully effective in 2029. |
| · | Gunnison
and Johnson Camp Mine – The ramp-up of Nuton operations at Johnson Camp Mine following
production that is expected by the operator to start in the second half of 2025. |
| · | Development
and exploration stage assets – In the medium to long term, revenue from Tres Quebradas
(Zijin Mining Group Co., Ltd.), Koné (Montage Gold Corp.), Eskay Creek (Skeena
Resources Limited), Gunnison and Johnson Camp Mine (Gunnison Copper Corp.), DeLamar (Integra
Resources Corp.), South Railroad (Orla Mining Ltd.), Hope Bay (Agnico Eagle Mines Limited),
Ana Paula (Heliostar Metals Ltd.), McCoy-Cove (i-80 Gold Corp.), and Fenn-Gib (Mayfair Gold
Corp.). |
The
majority of GEOs expected in the 2029 outlook is derived from mines that are currently in production and supported by Mineral Reserve
and Mineral Resource estimates. There exists further optionality above and beyond the 2029 outlook that is associated with exploration-stage
projects that may be advanced to production during the interim period. Our 2029 outlook is based on metal price assumptions of $2,600/oz
Au, $30.50/oz Ag and $4.00/lb Cu.
Quarterly
Portfolio Updates
Australia:
| · | Northparkes
(54% gold stream and 80% silver stream): Sales from Northparkes in Q4 2024 were 7,313
GEOs compared to 6,738 GEOs in Q3 2024 and 3,339 GEOs in Q4 2023. We continue to expect higher
grade open pit ore from E31 and E31N to contribute to stream deliveries through 2025. These
deposits are expected to be depleted during the year, as previously announced. |
Development
of the SLC at E48 commenced in July 2024, with access to the first sub-level now substantially complete and commissioning expected
to start in the third quarter of 2025. A concept study in 2024 included a gold grade of 0.41 g/t, with production from the E48 SLC expected
to contribute to stream deliveries through the course of its ramp-up. The E48 SLC orebody currently has a mine life ending in 2034. A
pre-feasibility study is expected to be completed in the first quarter of 2025.
First
production from the E22 orebody is expected during Evolution Mining Limited’s fiscal year ending June 30, 2029, subject to
the completion of economic studies and board approval, with a reserve grade of 0.37 g/t Au. A SLC hybrid option study for E22 is expected
to be completed by June 30, 2025.
Additionally,
exploration at the Major Tom deposit remains ongoing and has continued to deliver near-surface mineralized assays, including 89.0 meters
grading 1.07% copper and 0.13 g/t gold. Major Tom is located within three kilometers of the processing plant. Work is progressing to
determine whether a pit can be optimized at the deposit, which is expected to be completed in the second quarter of 2025.
| · | Beta
Hunt (3.25% GR and 1.5% NSR gold royalties): Royalties from Beta Hunt in Q4 2024
equated to 1,123 GEOs. |
The
expansion project to achieve consistent mine throughput at Beta Hunt of 2 million tonnes per annum continues to advance, with recent
capital investment focused on upgrades to primary ventilation, mine pumping and water supply. Infill drill data completed across the
Western Flanks and A-Zone is also being incorporated into an updated resource model. Westgold Resources Limited continues to expect the
mine expansion project at Beta Hunt to deliver increased productivity in 2025 and beyond.
Drills
continue to turn at the Fletcher Zone, a significant discovery at Beta Hunt that is interpreted to represent a new gold mineralized structure
parallel to the Western Flanks deposit of the mine, 300 meters to the west. Western Flanks is currently the primary source of gold ore
for Beta Hunt.
| · | Fosterville
(2.0% NSR gold royalty): Royalties from Fosterville in Q4 2024 equated to 947 GEOs. In
February 2025, Agnico Eagle Mines Limited (“Agnico Eagle”) released an updated
three-year outlook. The operator now expects Fosterville to produce between 140,000 to 160,000
ounces of gold in each of 2025, 2026 and 2027. Agnico Eagle also announced that an initial
assessment has demonstrated the potential to increase production at Fosterville to an average
of approximately 175,000 ounces of gold per year, with a ramp-up in performance potentially
starting in 2027. Technical evaluations and drilling are ongoing to evaluate this potential. |
Year-over-year,
mineral reserves at Fosterville remained relatively consistent at approximately 1.65 million ounces grading 5.37 g/t Aui.
Agnico Eagle expects to spend $26.3 million in exploration drilling at Lower Phoenix, Robbins Hill and new targets totaling over 84,300
meters in 2025.
i
Reserves and resources as of December 31, 2024. Refer to the February 13, 2025, press release
from Agnico Eagle for further details, “AGNICO EAGLE PROVIDES AN UPDATE ON 2024 EXPLORATION RESULTS AND 2025 EXPLORATION PLANS
– MINERAL RESERVES INCREASE 1% YEAR-OVER-YEAR TO 54.3 MOZ; UPDATED MINERAL RESERVES OF 2.8 MOZ DECLARED AT UPPER BEAVER; INFERRED
MINERAL RESOURCES INCREASE 9%”
Latin
America:
| · | Cerro
Lindo (65% silver stream): Cerro Lindo continued its strong year-to-date performance
during the fourth quarter with sales of 7,088 GEOs. For full year 2024, GEOs from Cerro Lindo
increased by 24% year-over-year due to improved operational performance, primarily driven
by higher grades and enhanced plant efficiency. Ongoing exploration at Cerro Lindo is mainly
focused on extending the mineralization of near-mine targets known as Orebodies 8B, 8C, 9
and 6a, as well as the Patahuasi Millay target located within Triple Flag’s stream
area. |
Pursuant
to the stream agreement, we continue to expect a step-down in the stream rate from 65% to 25% starting in 2026.
| · | Buriticá
(100% silver stream, fixed ratio to gold): Sales from Buriticá in Q4 2024 were
2,402 GEOs. Throughout 2024, activities by illegal miners continued to weigh on operations
at Buriticá, including underground confrontations. On January 20, 2025, the operator
announced that it restarted gold production after an attack by an armed group of illegal
miners. The attack, which targeted a substation, temporarily halted operations, but did not
result in any injuries. |
Despite
the ongoing presence of illegal miners, Buriticá was able to maintain overall steady operations throughout 2024. The operator
continues to engage closely with the surrounding community on illegal mining with support from national institutions, including the National
Police of Colombia.
| · | Camino
Rojo (2.0% NSR gold royalty on oxides): Royalties from Camino Rojo in Q4 2024 equated
to 890 GEOs. Orla Mining Ltd. (“Orla”) announced that Camino Rojo produced a
record of 136,748 ounces of gold in 2024. As a result, Orla achieved its improved full year
2024 production guidance of 130,000 to 140,000 ounces of gold, as well as a 19% beat versus
the midpoint of initial production guidance of 110,000 to 120,000 ounces. |
Preliminary
operator guidance for 2025 at Camino Rojo is 110,000 to 120,000 ounces of gold.
| · | Ana
Paula (2.0% NSR gold and silver royalty): In January 2025, Heliostar Metals Ltd.
(“Heliostar”) announced the continuation of drilling and technical trade-off
studies at its Ana Paula underground development project in Mexico. Heliostar plans to complete
a feasibility study on Ana Paula by the end of 2025 to allow for a construction decision
shortly thereafter. |
North
America:
| · | Young-Davidson
(1.5% NSR gold royalty): Royalties from Young-Davidson in Q4 2024 equated to 641 GEOs.
In January 2025, Alamos Gold Inc. (“Alamos”) released 2025 production guidance
of 175,000 to 190,000 ounces of gold, with 2026 and 2027 production guidance of 180,000 to
195,000 ounces of gold for each year. |
As
of December 31, 2024, Alamos estimates a mine life of approximately 14 years for Young-Davidson based on current underground mining
rates. Notably, Young-Davidson has maintained a Mineral Reserve life of at least 13 years since 2011, reflecting ongoing exploration
success. Alamos expects to spend $11 million on exploration at Young-Davidson in 2025. The deposit remains open at depth and to the west,
with the current program focused on expanding the new style of higher-grade gold mineralization zones within the hanging wall. These
zones are located close to existing infrastructure, demonstrating upside potential with grades well above the current reserve grade of
2.26 g/t Au.
| · | Florida
Canyon (3.0% NSR gold royalty): Royalties from Florida Canyon in Q4 2024 equated to 610
GEOs, with the asset achieving record annual gold production of 72,229 ounces in 2024. The
previously announced acquisition of Florida Canyon Gold Inc. by Integra Resources Corp. (“Integra”)
was completed in November 2024. Integra is advancing optimization studies on Florida
Canyon with an outlook expected to be introduced in the first quarter of 2025, as well as
a drill program focused to the north and south of the mine. According to the operator, minimal
exploration work has been completed at Florida Canyon over the past twenty years. |
| · | Gunnison
and Johnson Camp Mine (3.5% to 16.5% copper stream and 1.5% GR copper royalty): On May 15,
2024, Nuton LLC, a Rio Tinto venture, announced that it elected to proceed to Stage 2 of
a two-stage work program on the use of copper heap leach technologies for primary sulphide
mineralization at Gunnison Copper Corp.’s (“Gunnison Copper”) 100%-owned
Johnson Camp Mine (“JCM”) in Arizona. |
Triple
Flag owns a 1.5% GR copper royalty on JCM, which is also within the coverage area of the Company’s separate oxide copper stream
on the Gunnison property.
First
Nuton copper production is expected by the operator in the second half of 2025. The site has an existing and fully operational SX-EW
processing plant. Revenue from JCM will be used to pay back the costs of Stage 2 to Nuton and for the fulfillment of royalty and stream
obligations, as well as other project costs.
In
November 2024, Gunnison Copper released a PEA for a conventional open pit and heap leach operation at the Gunnison property. The
project is designed to produce more than 2.7 billion pounds of copper cathode over an 18-year mine life. Permit amendments required for
an open pit and heap leach operation at the Gunnison property are through the State of Arizona, with no federal nexus.
| · | Eskay
Creek (0.5% NSR gold and silver royalty): In December 2024, Skeena Resources Limited
(“Skeena”) announced that it expects to submit an Environmental Assessment application
for the 100%-owned fully financed Eskay Creek gold and silver project in the first quarter
of 2025. |
According
to Skeena, first gold pour is on track for 2027 at Eskay Creek.
| · | Hope
Bay (1.0% NSR gold royalty): In February 2025, Agnico Eagle declared an initial
indicated mineral resource at the Patch 7 zone of the Madrid deposit of 4.3 million tonnes
grading 6.64 g/t Au containing 0.9 million ounces of gold following a successful 2024 exploration
campaignii.
The inferred resource at Patch 7 has also grown year-over-year to 4.4 million tonnes grading
5.40 g/t Au containing 0.8 million ounces of goldiii.
The operator believes that the exploration program at Hope Bay demonstrates the potential
for a larger production scenario at the asset, with an internal technical evaluation expected
to be completed in the first half of 2026. |
In
consideration of the logistics of operations in Nunavut, Agnico Eagle is planning to invest $97 million in 2025 to upgrade existing infrastructure
and advance site preparedness for a potential redevelopment, including the dismantling of the existing mill. A $20 million investment
into an exploration ramp at Madrid has also been approved to facilitate infill and expansion drilling, and ultimately will be extended
to Suluk and Patch 7. Separately, Agnico Eagle intends to spend approximately $41.9 million for 110,000 meters of drilling at Hope Bay
in 2025.
| · | McCoy-Cove
(2.0% and 1.5% NSR gold and silver royalty, partial coverage): In February 2025,
i-80 Gold Corp. (“i-80”) released a PEA for the 100%-owned Cove underground project
located in Nevada. The project is currently designed to produce an average of 100,000 ounces
of gold per year upon ramp-up over an eight-year mine life. Ore is slated to be processed
at i-80’s Lone Tree autoclave or toll-milled at a roaster. Initial capital for the
project is $157 million, benefitting from underground development work already completed,
including a portal accessing the first deposit in the PEA mine sequence. |
ii
Reserves and resources as of December 31, 2024. Refer to the February 13, 2025, press release
from Agnico Eagle for further details, “AGNICO EAGLE PROVIDES AN UPDATE ON 2024 EXPLORATION RESULTS AND 2025 EXPLORATION PLANS
– MINERAL RESERVES INCREASE 1% YEAR-OVER-YEAR TO 54.3 MOZ; UPDATED MINERAL RESERVES OF 2.8 MOZ DECLARED AT UPPER BEAVER; INFERRED
MINERAL RESOURCES INCREASE 9%”
iii
Reserves and resources as of December 31, 2024. Refer to the February 13, 2025, press release
from Agnico Eagle for further details, “AGNICO EAGLE PROVIDES AN UPDATE ON 2024 EXPLORATION RESULTS AND 2025 EXPLORATION PLANS
– MINERAL RESERVES INCREASE 1% YEAR-OVER-YEAR TO 54.3 MOZ; UPDATED MINERAL RESERVES OF 2.8 MOZ DECLARED AT UPPER BEAVER; INFERRED
MINERAL RESOURCES INCREASE 9%”
A feasibility
study for Cove is expected to be released in the fourth quarter of 2025, which is anticipated to include infill drill work completed
over the past two years. i-80 expects permitting to be completed by the end of 2027, with production commencing in 2029. Further exploration
work is targeted to extend the mine life beyond eight years, including at the 2201 zone.
| · | DeLamar
(2.5% NSR gold and silver royalty, partial coverage): In early 2025, Integra announced
that the updated feasibility study to incorporate historical stockpiles into the design of
the 100%-owned DeLamar heap leach project in Idaho is expected to be completed in 2025. |
| · | Queensway
(0.2% to 0.5% NSR gold royalty): In November 2024, New Found Gold Corp. (“New
Found”) announced the initiation of work towards the completion of a maiden resource
estimate and PEA for the 100%-owned Queensway project in Newfoundland by the second quarter
of 2025. New Found is currently executing a 650,000 meter drill program at Queensway, which,
to date, has delivered high-grade gold assays. |
Rest
of World:
| · | Impala
Bafokeng (70% gold stream): Sales from Impala Bafokeng in Q4 2024 were 1,546 GEOs. Development
of the asset’s value driver, Styldrift, remains ongoing, with a steady ramp-up expected
to deliver improved efficiencies given current market conditions. In 2024, Impala Platinum
Holdings Limited (“Implats”) commenced a restructuring process at Impala Bafokeng
to rationalize and optimize labor deployment across corporate and operational functions.
The integration of processing facilities across the Western Limb operations of Impala Rustenburg
and Impala Bafokeng has started, resulting in improved plant availability and recovery. Implats
continues to expect monthly milled throughput of 230 thousand tonnes at Styldrift by the
end of its 2027 fiscal year. |
| · | Agbaou
(3.0% gold stream and 2.5% NSR gold royalty) and Bonikro (3.0% gold stream): Sales
from our stream and royalty interests in Agbaou equated to 532 GEOs and 362 GEOs in Q4 2024,
respectively. Sales from our stream interest in Bonikro equated to 862 GEOs in Q4 2024. |
| · | ATO
(25% gold stream and 50% silver stream): Sales from the ATO streams in Q4 2024 were 372
GEOs. On March 15, 2024, Triple Flag entered into an agreement with Steppe Gold to acquire
a prepaid gold interest. Under the terms of the agreement, the Company made a cash payment
of $5 million to acquire the prepaid gold interest, which provides for the delivery of 2,650
ounces of gold by Steppe Gold. |
On
February 13, 2025, Triple Flag received the first delivery of 1,000 ounces of gold under the prepaid gold interest.
| · | Koné
(2.0% NSR gold royalty, partial coverage): In December 2024, Montage Gold Corp.
(“Montage”) launched the construction of its Koné gold project in Côte
d'Ivoire, with first gold pour expected in the second quarter of 2027. The engineering, procurement
and construction management (“EPCM”) contract has been awarded to Lycopodium,
who have significant experience in Cote d’Ivoire. This includes the completion of Fortuna
Mining’s Séguéla project in 2023 and Endeavour Mining’s Lafigue
project in 2024, both completed on time and on budget. |
| · | Prieska
(0.8% GR royalty): An updated feasibility study for the fully permitted Prieska copper-zinc
project in South Africa is expected to be completed during the first quarter of 2025. |
Conference
Call Details
A
conference call and live webcast presentation will be held on February 20, 2025, starting at 9:00 a.m. ET (6:00 a.m. PT)
to discuss these results. The live webcast can be accessed by visiting the Events and Presentations page on the Company’s
website at: www.tripleflagpm.com. An archived version of the webcast will be available
on the website for one year following the webcast.
| Live Webcast: |
https://events.q4inc.com/attendee/426306225 |
| |
|
| Dial-In Details: |
Toll-Free (U.S. & Canada): +1 (888) 330-2384
International: +1 (647) 800-3739
Conference ID: 4548984, followed by # key |
| |
|
| Replay (Until March 6): |
Toll-Free (U.S. & Canada): +1 (800) 770-2030
International: +1 (647) 362-9199
Conference ID: 4548984, followed by # key |
About
Triple Flag Precious Metals
Triple
Flag is a precious metals streaming and royalty company. We offer financing solutions to the metals and mining industry with exposure
primarily to gold and silver in the Americas and Australia, with a total of 236 assets, including 17 streams and 219 royalties. These
investments are tied to mining assets at various stages of the mine life cycle, including 30 producing mines and 206 development and
exploration stage projects. Triple Flag is listed on the Toronto Stock Exchange and New York Stock Exchange, under the ticker “TFPM”.
Contact
Information
Investor Relations:
David Lee
Vice President, Investor
Relations
Tel: +1 (416) 304-9770
Email:
ir@tripleflagpm.com
Media:
Gordon Poole, Camarco
Tel: +44 (0) 7730
567 938
Email:
tripleflag@camarco.co.uk
Qualified Person
James
Lill, Director, Mining for Triple Flag and a “qualified person” under NI 43-101 has reviewed and approved the written scientific
and technical disclosures contained in this press release.
Forward-Looking
Information
This
news release contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking
statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, respectively (collectively
referred to herein as “forward-looking information”). Forward-looking information may be identified by the use of forward-looking
terminology such as “plans”, “targets”, “expects”, “is expected”, “budget”,
“scheduled”, “estimates”, “outlook”, “forecasts”, “projection”, “prospects”,
“strategy”, “intends”, “anticipates”, “believes” or variations of such words and phrases
or terminology which states that certain actions, events or results “may”, “could”, “would”, “might”,
“will”, “will be taken”, “occur” or “be achieved”. Forward-looking information in this
news release includes, but is not limited to, statements with respect to the Company’s annual and five-year guidance, operational
and corporate developments for the Company, developments in respect of the Company’s portfolio of royalties and streams and related
interests and those developments at certain of the mines, projects or properties that underlie the Company’s interests, strengths,
characteristics, the conduct of the conference call to discuss the financial results for the fourth quarter of 2024, and our assessments
of, and expectations for, future periods (including, but not limited to, the long-term sales outlook for GEOs). In addition, any statements
that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking
information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations,
estimates and projections regarding possible future events or circumstances.
The
forward-looking information included in this news release is based on our opinions, estimates and assumptions in light of our experience
and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently
believe are appropriate and reasonable in the circumstances. The forward-looking information contained in this news release is also based
upon a number of assumptions, including the ongoing operation of the properties in which we hold a stream or royalty interest by the
owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made
by the owners or operators of such underlying properties; and the accuracy of publicly disclosed expectations for the development of
underlying properties that are not yet in production. These assumptions include, but are not limited to, the following: assumptions in
respect of current and future market conditions and the execution of our business strategies; that operations, or ramp-up where applicable,
at properties in which we hold a royalty, stream or other interest continue without further interruption through the period; and the
absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated, intended or implied.
Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions,
estimates and assumptions will prove to be correct. Forward-looking information is also subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those
expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, but are not limited to,
those set forth under the caption “Risk and Risk Management” in our management’s discussion and analysis in respect
of the fourth quarter and full year of 2024 and the caption “Risk Factors” in our most recently filed annual information
form, each of which is available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. In addition, we note that mineral resources
that are not mineral reserves do not have demonstrated economic viability and inferred resources are considered too geologically speculative
for the application of economic considerations.
Although
we have attempted to identify important risk factors that could cause actual results or future events to differ materially from those
contained in the forward-looking information, there may be other risk factors not presently known to us or that we presently believe
are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking
information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information,
which speaks only as of the date made. The forward-looking information contained in this news release represents our expectations as
of the date of this news release and is subject to change after such date. We disclaim any intention or obligation or undertaking to
update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required
by applicable securities laws. All of the forward-looking information contained in this news release is expressly qualified by the foregoing
cautionary statements.
Cautionary
Statement to U.S. Investors
Information
contained or referenced in this press release or in the documents referenced herein concerning the properties, technical information
and operations of Triple Flag has been prepared in accordance with requirements and standards under Canadian securities laws, which differ
from the requirements of the U.S. Securities and Exchange Commission (“SEC”) under subpart 1300 of Regulation S-K (“S-K
1300”). Because the Company is eligible for the Multijurisdictional Disclosure System adopted by the SEC and Canadian Securities
Administrators, Triple Flag is not required to present disclosure regarding its mineral properties in compliance with S-K 1300. Accordingly,
certain information contained in this press release may not be comparable to similar information made public by U.S. companies subject
to reporting and disclosure requirements of the SEC.
Technical
and Third-Party Information:
Triple
Flag does not own, develop or mine the underlying properties on which it holds stream or royalty interests. As a royalty or stream holder,
Triple Flag has limited, if any, access to properties included in its asset portfolio. As a result, Triple Flag is dependent on the owners
or operators of the properties and their qualified persons to provide information to Triple Flag and on publicly available information
to prepare disclosure pertaining to properties and operations on the properties on which Triple Flag holds stream, royalty or other similar
interests. Triple Flag generally has limited or no ability to independently verify such information. Although Triple Flag does not believe
that such information is inaccurate or incomplete in any material respect, there can be no assurance that such third-party information
is complete or accurate.
Endnotes
Endnote
1: Gold Equivalent Ounces (“GEOs”)
GEOs
are a non-IFRS measure that are based on stream and related interests as well as royalty interests and are calculated on a quarterly
basis by dividing all revenue from such interests for the quarter by the average gold price during such quarter. The gold price is determined
based on the LBMA PM fix. For periods longer than one quarter, GEOs are summed for each quarter in the period. Management uses this measure
internally to evaluate our underlying operating performance across our stream and royalty portfolio for the reporting periods presented
and to assist with the planning and forecasting of future operating results. GEOs are intended to provide additional information only
and do not have any standardized definition under IFRS Accounting Standards and should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with IFRS Accounting Standards. The measures are not necessarily indicative of gross
profit or operating cash flow as determined under IFRS Accounting Standards Other companies may calculate these measures differently.
The following table reconciles GEOs to revenue, the most directly comparable IFRS Accounting Standards measure:
| | |
2024 | |
| ($ thousands, except average gold price and GEOs information) | |
| Q4 | | |
| Q3 | | |
| Q2 | | |
| Q1 | | |
| Year ended
December 31 | |
| Revenue | |
| 74,213 | | |
| 73,669 | | |
| 63,581 | | |
| 57,528 | | |
| | |
| Average gold price per ounce | |
| 2,663 | | |
| 2,474 | | |
| 2,338 | | |
| 2,070 | | |
| | |
| GEOs | |
| 27,864 | | |
| 29,773 | | |
| 27,192 | | |
| 27,794 | | |
| 112,623 | |
| | |
2023 | |
| ($ thousands, except average gold price and GEOs information) | |
| Q4 | | |
| Q3 | | |
| Q2 | | |
| Q1 | | |
| Year ended
December 31 | |
| Revenue | |
| 51,739 | | |
| 49,425 | | |
| 52,591 | | |
| 50,269 | | |
| | |
| Average gold price per ounce | |
| 1,971 | | |
| 1,928 | | |
| 1,976 | | |
| 1,890 | | |
| | |
| GEOs | |
| 26,243 | | |
| 25,629 | | |
| 26,616 | | |
| 26,599 | | |
| 105,087 | |
Endnote
2: Adjusted Net Earnings and Adjusted Net Earnings per Share
Adjusted
net earnings is a non-IFRS financial measure, which excludes the following from net earnings:
| · | impairment
charges and write-downs, including expected credit losses; |
| · | gain/loss
on sale or disposition of assets/mineral interests; |
| · | foreign
currency translation gains/losses; |
| · | increase/decrease
in fair value of investments and prepaid gold interests; |
| · | non-recurring
charges; and |
| · | impact
of income taxes on these items. |
Management
uses this measure internally to evaluate our underlying operating performance for the reporting periods presented and to assist with
the planning and forecasting of future operating results. Management believes that adjusted net earnings is a useful measure of our performance
because impairment charges and write-downs, including expected credit losses, gain/loss on sale or disposition of assets/mineral interests,
foreign currency translation gains/losses, increase/decrease in fair value of investments and prepaid gold interests, and non-recurring
charges do not reflect the underlying operating performance of our core business and are not necessarily indicative of future operating
results. The tax effect is also excluded to reconcile the amounts on a post-tax basis, consistent with net earnings. Management’s
internal budgets and forecasts and public guidance do not reflect the types of items we adjust for. Consequently, the presentation of
adjusted net earnings enables users to better understand the underlying operating performance of our core business through the eyes of
management. Management periodically evaluates the components of adjusted net earnings based on an internal assessment of performance
measures that are useful for evaluating the operating performance of our business and a review of the non-IFRS measures used by industry
analysts and other streaming and royalty companies. Adjusted net earnings is intended to provide additional information only and does
not have any standardized definition under IFRS Accounting Standards and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS Accounting Standards. The measures are not necessarily indicative of gross profit
or operating cash flow as determined under IFRS Accounting Standards. Other companies may calculate these measures differently. The following
table reconciles adjusted net earnings to net earnings, the most directly comparable IFRS Accounting Standards measure.
Reconciliation
of Net Earnings to Adjusted Net Earnings
| | |
Three months ended | | |
Year ended | |
| | |
December 31 | | |
December 31 | |
| ($ thousands, except share and per share information) | |
| 2024 | | |
| 2023 | | |
| 2024 | | |
| 2023 | |
| Net earnings (loss) | |
$ | 41,280 | | |
$ | 9,755 | | |
$ | (23,084 | ) | |
$ | 36,282 | |
| Impairment charges and expected credit losses1 | |
| — | | |
| 8,749 | | |
| 148,034 | | |
| 36,830 | |
| Loss on disposal of mineral interests2 | |
| — | | |
| — | | |
| — | | |
| 1,000 | |
| Foreign currency translation (gain) loss | |
| (76 | ) | |
| (57 | ) | |
| (181 | ) | |
| 218 | |
| (Increase) decrease in fair value of investments and prepaid gold interests | |
| (7,249 | ) | |
| 434 | | |
| (12,775 | ) | |
| (1,467 | ) |
| Income tax effect | |
| 2,297 | | |
| (1,127 | ) | |
| (2,387 | ) | |
| (6,265 | ) |
| Adjusted net earnings | |
$ | 36,252 | | |
$ | 17,754 | | |
$ | 109,607 | | |
$ | 66,598 | |
| Weighted average shares outstanding – basic | |
| 201,367,681 | | |
| 201,517,879 | | |
| 201,304,234 | | |
| 199,327,784 | |
| Net earnings (loss) per share | |
$ | 0.20 | | |
$ | 0.05 | | |
$ | (0.11 | ) | |
$ | 0.18 | |
| Adjusted net earnings per share | |
$ | 0.18 | | |
$ | 0.09 | | |
$ | 0.54 | | |
$ | 0.33 | |
| 1. | Impairment
charges and expected credit losses for year ended December 31, 2024, are largely due
to impairments taken on the Nevada Copper stream and related interests as well as impairments
taken on the Moss stream and related interests. Impairment charges and expected credit losses
for the three months and year ended December 31, 2023, are largely due to impairments
taken on the Renard stream and related interests and the Beaufor royalty. |
| 2. | Loss
on disposal of mineral interests for the year ended December 31, 2023, represent the
loss on the Eastern Borosi NSR due to a buyback exercised by the operator. |
Endnote
3: Adjusted EBITDA
Adjusted
EBITDA is a non-IFRS financial measure, which excludes the following from net earnings:
| · | income
tax expense; |
| · | finance
costs, net; |
| · | depletion
and amortization; |
| · | impairment
charges and write-downs, including expected credit losses; |
| · | gain/loss
on sale or disposition of assets/mineral interests; |
| · | foreign
currency translation gains/losses; |
| · | increase/decrease
in fair value of investments and prepaid gold interests; |
| · | non-cash
cost of sales related to prepaid gold interests and other; and |
| · | non-recurring
charges |
Management
believes that adjusted EBITDA is a valuable indicator of our ability to generate liquidity by producing operating cash flow to fund working
capital needs, service debt obligations and fund acquisitions. Management uses adjusted EBITDA for this purpose. Adjusted EBITDA is also
frequently used by investors and analysts for valuation purposes, whereby adjusted EBITDA is multiplied by a factor or ‘‘multiple’’
that is based on an observed or inferred relationship between adjusted EBITDA and market values to determine the approximate total enterprise
value of a company.
In
addition to excluding income tax expense, finance costs, net and depletion and amortization, adjusted EBITDA also removes the effect
of impairment charges and write-downs, including expected credit losses, gain/loss on sale or disposition of assets/mineral interests,
foreign currency translation gains/losses, increase/decrease in fair value of investments and prepaid gold interests, non-cash cost of
sales related to prepaid gold interests and other and non-recurring charges. We believe these items provide a greater level of consistency
with the adjusting items included in our adjusted net earnings reconciliation, with the exception that these amounts are adjusted to
remove any impact of income tax expense as they do not affect adjusted EBITDA. We believe this additional information will assist analysts,
investors and our shareholders to better understand our ability to generate liquidity from operating cash flow, by excluding these amounts
from the calculation as they are not indicative of the performance of our core business and not necessarily reflective of the underlying
operating results for the periods presented.
Adjusted
EBITDA is intended to provide additional information to investors and analysts and does not have any standardized definition under IFRS
Accounting Standards and should not be considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS Accounting Standards. Adjusted EBITDA is not necessarily indicative of operating profit or operating cash flow as determined
under IFRS Accounting Standards. Other companies may calculate adjusted EBITDA differently. The following table reconciles adjusted EBITDA
to net earnings, the most directly comparable IFRS Accounting Standards measure.
Reconciliation
of Net Earnings to Adjusted EBITDA
| | |
Three months ended | | |
Year ended | |
| | |
December 31 | | |
December 31 | |
| ($ thousands) | |
| 2024 | | |
| 2023 | | |
| 2024 | | |
| 2023 | |
| Net earnings (loss) | |
$ | 41,280 | | |
$ | 9,755 | | |
$ | (23,084 | ) | |
$ | 36,282 | |
| Finance costs, net | |
| 901 | | |
| 1,005 | | |
| 5,073 | | |
| 4,122 | |
| Income tax expense | |
| 6,064 | | |
| 647 | | |
| 10,314 | | |
| 107 | |
| Depletion and amortization | |
| 19,271 | | |
| 16,721 | | |
| 75,900 | | |
| 65,477 | |
| Impairment charges and expected credit losses1 | |
| — | | |
| 8,749 | | |
| 148,034 | | |
| 36,830 | |
| Loss on disposal of mineral interests2 | |
| — | | |
| — | | |
| — | | |
| 1,000 | |
| Non-cash cost of sales related to prepaid gold interests and other | |
| 2,789 | | |
| 3,763 | | |
| 16,919 | | |
| 15,972 | |
| Foreign currency translation (gain) loss | |
| (76 | ) | |
| (57 | ) | |
| (181 | ) | |
| 218 | |
| (Increase) decrease in fair value of investments and prepaid gold interests | |
| (7,249 | ) | |
| 434 | | |
| (12,775 | ) | |
| (1,467 | ) |
| Adjusted EBITDA | |
$ | 62,980 | | |
$ | 41,017 | | |
$ | 220,200 | | |
$ | 158,541 | |
| 1. | Impairment
charges and expected credit losses for year ended December 31, 2024, are largely due
to impairments taken on the Nevada Copper stream and related interests as well as impairments
taken on the Moss stream and related interests. Impairment charges and expected credit losses
for the three months and year ended December 31, 2023, are largely due to impairments
taken on the Renard stream and related interests and the Beaufor royalty. |
| 2. | Loss
on disposal of mineral interests for the year ended December 31, 2023, represent the
loss on the Eastern Borosi NSR due to a buyback exercised by the operator. |
Endnote 4: Gross
Profit Margin and Asset Margin
Gross
profit margin is an IFRS Accounting Standards financial measure which we define as gross profit divided by revenue. Asset margin is a
non-IFRS financial measure which we define by taking gross profit and adding back depletion and non-cash cost of sales related to prepaid
gold interests and other and dividing by revenue. We use gross profit margin to assess the profitability of our metal sales and asset
margin to evaluate our performance in increasing revenue and containing costs and to provide a useful comparison to our peers. Asset
margin is intended to provide additional information only and does not have any standardized definition under IFRS Accounting Standards
and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting
Standards. The following table reconciles asset margin to gross profit margin, the most directly comparable IFRS Accounting Standards
measure:
| | |
Three months ended | | |
Year ended | |
| | |
December 31 | | |
December 31 | |
| ($ thousands except Gross profit margin and Asset margin) | |
| 2024 | | |
| 2023 | | |
| 2024 | | |
| 2023 | |
| Revenue | |
$ | 74,213 | | |
$ | 51,739 | | |
$ | 268,991 | | |
$ | 204,024 | |
| Less: Cost of sales | |
| (27,829 | ) | |
| (25,292 | ) | |
| (113,781 | ) | |
| (101,948 | ) |
| Gross profit | |
| 46,384 | | |
| 26,447 | | |
| 155,210 | | |
| 102,076 | |
| Gross profit margin | |
| 63% | | |
| 51% | | |
| 58% | | |
| 50% | |
| Gross profit | |
$ | 46,384 | | |
$ | 26,447 | | |
$ | 155,210 | | |
$ | 102,076 | |
| Add: Depletion | |
| 19,186 | | |
| 16,629 | | |
| 75,554 | | |
| 65,108 | |
| Add: Non-cash cost of sales related to prepaid gold interests and other | |
| 2,789 | | |
| 3,763 | | |
| 16,919 | | |
| 15,972 | |
| | |
| 68,359 | | |
| 46,839 | | |
| 247,683 | | |
| 183,156 | |
| Revenue | |
| 74,213 | | |
| 51,739 | | |
| 268,991 | | |
| 204,024 | |
| Asset margin | |
| 92% | | |
| 91% | | |
| 92% | | |
| 90% | |
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