Triple Flag Precious Metals Corp. Q2 FY2025 earnings call

• Triple Flag achieved record adjusted EBITDA of $76 million and record operating cash flow of USD 0.38 per share in Q2.
• Maintained a solid pace of accretive acquisitions in H1 2025, including Tres Quebradas lithium mine in Argentina, Arcata and Azuca silver mines in Peru, 1.5% gross revenue royalty on Johnson Camp copper mine, and a 1% NSR royalty on Arthur Gold project in Nevada.
• Beta Hunt's Fletcher Zone declared a maiden resource of 2.3 million ounces, nearly doubling the total resource base with exploration potential.
• Fourth consecutive annual increase in dividend since listing in 2021.
• Exited Q2 with 0 debt and expected to be in net cash position by end of Q3 at current metal prices.

Triple Flag achieved a record quarter in Q2 with sales of nearly 29,000 GEOs. The portfolio produced nearly 29,000 GEOs in Q2, resulting in a record first half of over 57,000 GEOs. Revenues were 100% derived from precious metals, with roughly 2/3 from gold. Northparkes and Cerro Lindo were the largest contributors to revenues. Northparkes had a record quarter due to processing higher open pit grades from stockpiled ore, while Cerro Lindo benefited from the rapid rise in silver prices towards the end of the quarter.

• Expect to achieve 2025 guidance of 105,000 to 115,000 ounces over the balance of the year.
• Strong first half positions them well to meet 2025 guidance.
• Transaction pipeline remains very robust with significant opportunity ahead.

• Steppe Gold owes circa USD 8 million in arrears, legal dispute with Boroo, but Sheldon feels comfortable with the company's position as Steppe has over CAD 300 million market cap and historical lucrative relationship.

Q: First question is just on Gunnison. The royalty additional purchase here looks to be done at a very attractive price, sub 3x cash flow based on what the company's guidance is. I'm just wondering from the overall royalty, what should we be expecting as a steady-state production that Triple Flag is estimating?

A: Thanks, Josh. Yes. So the Johnson Camp royalty, it's not a large amount in total. As you pointed out, it's a fairly small purchase price we have on that. I don't believe we're going to be giving any like asset-specific guidance on that, but it's a little bit of incremental copper exposure. We think it's quite attractive. And I think as you noted, in addition to this, we picked up an additional 1.5%. We already held 1.5% and the Johnson Camp mine is also subject to the stream area so we'll benefit in that way. But we're not giving asset-by-asset guidance.

Q: Maybe just looking ahead to 2026, it looks like production is declining mainly due to Northparkes, the high-grade stockpiles deplete by the end of this year from E31. And then you also have a step down in the stream rate at Cerro Lindo. Can you just maybe walk through -- I know you don't want to do asset-by-asset guidance, but maybe just at a high level, where could potential offsets come from to get to offset some of the lower production at Northparkes and Cerro Lindo?

A: Yes. Fahad, as you noted, like we'll get a better picture on where Northparkes is coming in as the year goes on. Evolution Mining has a June 30 year-end. And so we will solidify what we're seeing from 2026 as we get further into this year. And as you point out, Cerro Lindo does have a step down coming, which is really a testament to the success of that investment and it's still going to be quite a successful asset for us going forward. In terms of offsets, I mean, it's quite a robust portfolio profile going forward. I mean one of the things I'd point to is the Arcata mine should be coming on stream later this year. We also have the Johnson Camp mine coming online this year. We'll see some production from that existing portfolio, we are also seeing step-ups in production at a few other sources as well. But as you kind of correctly pointed out and I said before, I don't want to get into any asset-by-asset specific guidance too much.

Q: Some have been already asked so I'll just refine a few other points I need a clarification on. Just on your pipeline, the $100 million to $300 million range, I'm assuming it's all precious metals that lithium one was just an offset. Would that be correct?

A: Yes. Tanya, yes, predominantly, the pipeline is full of precious metals opportunity. And you're right, lithium was very much an opportunistic investments where we thought we had a very attractive opportunity. So we're not focused on lithium or battery metals.

Q: And would you say your $100 million to $300 million, is that mainly development? Or are you looking at more nearer stage production portfolio, let's say?

A: Again, it's a mix. There's actually probably a good number of actual producing opportunities in there.

Q: And would I assume also that the -- any streams that you're looking at would also involve equity investments and/or debt participation as well?

A: No, I wouldn't assume that at all. I think that's really specific opportunity by opportunity sort of thing. We've been quite clear. We prefer to focus our investment dollars on streams and royalties. I think that's what our investors are looking for. We are open to it kind of in fairly small proportions on an as-needed basis, but that's certainly not our focus.

Q: And then my last question on this is the safe jurisdictions that you've talked about. Some of the other opportunities we've seen lately have been in Africa. Is it safe to assume that you're still focusing on the Americas and Australia?

A: Yes. Definitely, the focus is Americas and Australia. Africa, I think you have to distinguish between different jurisdictions, but the bulk of the pipeline is actually Americas and Australia.