Triple Flag Precious Metals Corp. Price & Performance (TFPM)

With GEO guidance range of 105,000 to 115,000 ounces. Notably, the high grade E31 open pit deposits deposits at North Parks, which were a core contributor to our performance in 2024, will continue to be processed during the upcoming year. Looking further ahead, the next stage of high grade gold ore from North Parks is also advancing to production. Access to the first sublevel at E48 is substantially complete commissioning is expected in the third quarter of twenty twenty five. In the fourth quarter, we were also pleased to announce the $28,000,000 acquisition of the Trey Kervatas Royalty, reinvesting the cash flows we generated into further streams and royalties will benefit our shareholders for decades to come. Gives our shareholders exposure to near term cash flow from a large well capitalized mining project operated by Se Jin, with a long life and significant exploration potential. Our portfolio provides top tier precious metals exposure We are proud of what our operators have achieved in 2024. These achievements include GEOs at Cerro Lindo increasing 24% year over year due to higher grades and enhanced plant efficiency. In addition, Camino Rojo achieved record production of 137,000 ounces representing a 19% beat on initial guidance.

And on the development side, the new team at Montage Gold delivered a fully permitted and financed project at Kone in less than a year with construction now well underway. Overall, Triple Flag is well positioned to deliver long term value for our shareholders from a diversified mix of producing and development assets, We are poised for further growth with an organic growth profile of 135,000 to 145,000 GEOs in 2029. As I noted earlier, record GEOs are great. But what really matters is cash flow for shareholders on a per share basis. The single most important metric I focus on is cash flow per share. Which we have increased through the course of 2024, both consistently and rapidly, as we have benefited from record production and a rising gold and silver price environment. This is the way it's supposed to work. This is exactly what we have done. There is still more to come. The average gold price in 2024 was less than $2,400 an ounce. We is $500 an ounce lower than spot prices. At spot prices, our year over year cash flows will continue to increase. I will now turn it over to Eban to discuss our financials for Q4 and the full year 2024.

Thank you, Sheldon.

As you can see, 2024 was a record across all financial metrics due to strong volumes and precious metals [indiscernible] As well as continuing strong margins. These margins drive the high conversion of top line revenue into cash flow available to shareholders. A key benefit Strong cash flow generation will continue as part all of our capital allocation decisions, including shareholder returns, external growth On shareholder returns, we paid out over $43,000,000 in dividends shareholders in 2024, which reflects a 5% increase in in the middle of the year our third consecutive increase since our IPO. In addition to our progressively growing dividend, we also returned nearly $9,000,000 to shareholders via share buybacks in 2024 and expect to remain active on our NCIB opportunistically. On external growth, we reinvested the cash flow generated in 2024 into streams and royalties. Including the Agbaal and Vanco streams as well as the Tres Queveda's royalty.

These assets either generate cash flow today or in the near term. Offer significant exploration potential and are operated by strong management teams and represent accretive additions to our portfolio. [indiscernible] Moving forward to 2025 guidance, as Sheldon noted, we expect GEOs of between $105,000 and 115,000 ounces for the year. Which we expect to be essentially 100% derived from precious metals namely gold and silver.

This is driven by our expectation of higher gold grade open pit material at E31 [indiscernible] E31N deposits continue to contribute to deliveries from North Park's as well as solid performance from Saramindo. Depletion is expected to be between $70,000,000 and $80,000,000 same as in the prior year, while G and A will be relatively consistent. Between $24,000,000 and $25,000,000 Finally, our Australian cash tax rate for our [indiscernible] percent, consistent with the 24% that was realized in 2024. TroopFlag has delivered a consistent track growth since inception, achieving a compound annual growth rate of approximately 20% since 2017. Beyond the guidance we set for 2025, we see further growth to 135,000 to 145,000 GEOs in 2029. Midpoint to midpoint, this represents ounce growth of over 25% from 2025, driven by our upgrading partners, pursuing their own organic growth through both brownfield development and advanced projects such as Kone, [indiscernible] We also continue to have substantial firepower for deals that would be additive to this growth profile. With more than $700,000,000 available to deploy for new transactions that are accretive, fit with our strategy and deliver value throughout the I'll now pass it on to James to discuss the TESCAPRAS acquisition.

Thank you, Yvan.

We were pleased to announce the acquisition of a 0.5% gross overriding royalty on Tresco Vergas for $28,000,000 this past December.

Which is expected to close in the first quarter This asset adds near term revenue from a high grade lithium brine asset with multi decade reserve life an attractive cost profile, as Bryan operations tend to be in the lowest cost quartile of the lithium cost curve. Expansion optionality and significant resource upside. Notably, our royalty has full coverage all the mineral properties that comprise the project. At steady state, Triple Flag expects to receive royalty revenue from Phase one Press Covarrados to equate to approximately 1,000 GEOs per year representing production capacity of 20,000 tons per year battery grade lithium carbonates. Lejene is aiming to be a global having ended the lithium market in 2021 and acquiring its 100% interest in Triple Vallas, in early twenty twenty two for $770,000,000 As highlighted by Rio Tinto's $6,700,000,000 acquisition of Arcadium, This asset is located in the right area for low cost long term lithium brine production.

In terms of expansion optionality, Sejourn is contemplating a potential expansion of nameplate production [indiscernible] If advanced, this would meaningfully increase the study stage 1,000 GEO profile I mentioned earlier. Overall, the acquisition of Transcribadas Royalty represents a countercyclical opportunity to deploy cash into a crucial commodity and gain exposure to a large capitalized mining project the long life and significant upside potential I'll now pass back to Shelton for due to the formal part of the presentation. Thank you, James. We have a strong and positive outlook in front of us in 2025. We have a growing cash flow per share profile that will allow us to increase our dividend, buy back shares opportunistically and reinvest in the deals to drive compounding cash flow growth. We have a diversified portfolio that provides us with top tier precious metals exposure. We have forecast organic production growth of over 25% by the end of this decade.

We have a debt free balance sheet with over $700,000,000 of debt capacity available to finance further deals.

We have full alignment with shareholders as we are significant shareholders ourselves and ultimately our strategy that has made us successful provided us with a strong track record is not going to change as we look ahead. Here's what we're going to do.

We're going to in we are going to focus on reinvesting cash flows to deliver compounding growth per [indiscernible] Going to focus on acquiring good assets in good regions and with good operating partners And we're going to stay focused on generating cash returns for shareholders. Karen, please open the floor to questions.

At this time, I would like to remind everyone in order to ask a question. Your first question comes from Lawson Winder from Bank of America Securities. Your line is open.

Thank you, operator and hello, gentlemen. Good morning. Thank you for the update. I wanted to ask about a few things. So first off, on the Benicro and Agbaal stream, there was a proportion of revenue in 2024 that was a true up And so just trying to think about what was like a run rate number in 2024 for those two assets ex the true up? And are there any additional true ups still coming in 2025 for those? Hi, Ross. This is James. Thanks for the question. Yes, the true ups are relatively small contribution and obviously we don't provide asset specific guidance. So I think you can think about it from the point of view of Allied's [indiscernible] And there'll be a sort of assuming that short of the minimums, which their guidance would indicate that they are marginally There'd be sort of a lagging true up every year. So when you sort of smooth that out over the period of the minimum deliveries, it will kind of blend through to being not dissimilar to the production rate they might achieve. [indiscernible] those true ups have settled by the January the following calendar year, so it basically happens in Q1.

Obviously, there's a bit of timing with deliveries from prior the prior year in any case. Okay. Yes. Thanks for the reminder. [indiscernible] wanted to ask about a privately held asset that you guys have just trying to get some clarity on whether or not we should be thinking about including it in our long term projections, particularly thinking about your long term guidance out to 2029 and that's El Machito. So you haven't received deliveries from that asset for for a couple of quarters, maybe 03/2005. Is that asset expected to restart at some point? Yes. Hi, Lawson. I'll take that. Yes, that's a smaller asset that we acquired part of the Mavericks portfolio. It's a privately held zinc mine. It's been in operation for decades and they got hit with a few higher costs and the zinc price ticked down last year. But they've actually restarted deliveries We have really good dialogue with the operator. It's not a large asset in our portfolio and it's not something that we need or count on to hit either our 2025 guidance or our 2028 or 2029 numbers. So I would say it's kind of like upside from here. But the mines operating, a really good team there and we're working closely with the operator.

So I don't see that as an issue.

And Lawson, to be clear, we have received deliveries on that in Q3 and 2024. Great.

Thank you for confirming that.

And then just getting back to one of your bigger assets, just thinking about Veritika, so there was the disruption from the artisanal miners.

At that asset.

Do you have any sort of update or insight as to what's happening on the ground today? Like is that an issue that's now resolved? And we can kind of forget about that going forward or there's still some potential risks that we should think about with that asset in terms of Forecasting revenues for the coming years.

Hey, Lawson, it's Sheldon here. I'll answer this one as well.

I think this Asian team has done a really good job on the ground dealing with a difficult situation there. And this is actually this is very important. It's not artisanal miners we're dealing with. These are illegal minors. It's more criminal syndicates and gangs. And and that's a situation that the Zay Jin team is managing. The mine is producing right now. Last year was a record. And if you look at Seijin is projecting for the future, they're continuing to invest money and expanding that asset. We feel really good about the asset, but this situation is probably not going to be one that's going to resolve [indiscernible] But Zijin has done a very good job of operating through the the issues with the illegal miners.

Okay, fantastic. And I could add just one more on the project pipeline or sorry, the deal pipeline. What What sort of transaction sizes are you seeing? Is it more focused on precious metals? Are you seeing opportunities in non precious metals like Like the lithium opportunity you guys took advantage of last quarter?

Yes, no real change from prior quarters. We would said. I mean, I think our sweet spot is still the $100,000,000 to $300,000,000 range. It's a really robust pipeline right now. There's a lot of good opportunities that we're looking at. The lithium, I love that lithium deal we just did. Part of it is like Zay Jin is an operator, large well capitalized mine coming on in Argentina. The timing in the price cycle is looks good for lithium. It's also a very small size and it doesn't change our focus from a precious metals focused portfolio. I think the next deal will have announced will be a gold and silver deal in The Americas. So that'll be kind of of squarely in the strike zone. We are seeing some smaller deals as well out there. So probably a pretty healthy pipeline of under $100,000,000 to kind of the $100,000,000 to $300,000,000 and actually a few larger that are probably lower probability, but we'll see what we can do. In terms of precious versus non precious, the weighting is definitely towards the precious. There are some non precious opportunities out there. We've always been open that we'd be open to looking at some non precious exposure.

Right now, we have 100% of our revenues from metals. So I think there's definitely some room in there for the portfolio. But I never want to take the portfolio away from being seen as really a precious metals vehicle. Like that when people look at Triple Flag, it's right in our name and we're not changing that. Thanks, Lawson. The next question comes from the participant from Scotiabank.

Your line is open. Good. That's me. Thank you. Good morning, everyone. I just wanted to follow-up on Lawson's questions on the M and A pipeline. You mentioned the size, the sweet spot of the well, you're seeing $100,000,000 to $300,000,000 Are we looking at producing assets in that sort of range or is this still like development coming in in like five years time? Just wondering your mix of what you're seeing, is it going to be adding immediately to the pipeline or beyond 02/1930?

So the things we're looking at in that pipeline that I'm referencing, there's actually a mix of development assets and producing assets. It's really a matter of what fish we get into the boat.

Okay. And you mentioned a couple of bigger ones greater than $300,000,000 I'm hearing one big one down in South America as well.

Just wondering if you're open to syndication on that one or how big of an asset could you do a $700,000,000 transaction. Just wondering how big you would go. And would you syndicate?

So open as a syndication, yes, but it would probably come down to a concentration. I'm talking completely in the abstract here and not with respect It's there would be some kind of concentration in our portfolio that we wouldn't want to have over concentrated. Whether that be a commodity or a jurisdiction or development or something like that.

So we are open in concept of syndication, but we're not necessarily wanting to go there. Upper end of the range, I don't know if I want to give you an upper end of the range, but we could find finance quite a bit right now. And I would we've always had a view that we would be competing for even the largest deals in the sector and that's been the case since even before we were public and that has not changed.

Okay. And what about corporate transactions? I mean, I say that from just speaking to generalist everyone wants to talk about Wheaton and Franco and getting down to the smaller ones. It gets a little bit hard for some of these generalist to invest How do you think about corporate transactions?

Yes. I mean, I guess we're a little bit unique in that we've had the kind of the more recent successful corporate transaction. I think 2024 has been a fantastic year for some of the assets we picked up through the Mavericks transaction, including like Kona, SKA Creek, and others. So we are open to it. But you just really have to find the value there and you have to to find a partner that's willing to transact at a price where you both agree you're seeing good value. So we found that on Maverick.

We're open to it in other cases, but it's corporate M and A is not easy necessarily. We're open to it, but you just kind of need to find something where all the gates line up. Okay. And then maybe finally just on your $700,000,000 available and also your paid down your debt, so kind of grabs on that, so zero debt. How do we think about the dividend I think that comes up for a review think with Q2 or thereabouts, how are we thinking about the dividend?

Yes. I think we've I've been quite public that I see us with a progress dividend policy. We've increased our dividend every year since we've been public. We I would look to be seen to increase that course, that's subject to the Board discretion, but no changes anticipated on that. So I would say you should probably expect us to continue our policy of or practice of increasing the dividend annually.

And as I think about your investment in the business and I think about your dividend payout, how should I be thinking about what's the minimum cash balance you would keep on your balance sheet to operate your business? I know it's going to be very low. I just want to try and see how much leverage I have for deals plus increased dividend.

Yes.

I mean, the actual amount of cash you need to run this business is very, very low. We tend to keep like $10,000,000 on, but we could run this business with $5,000,000 of cash in the system. It's just these are just very efficient business models. And the cash flow tends to come in pretty consistently throughout the year. So if you're modeling, I would use somewhere in the 5% to $10,000,000 range there.

Yes. I'm just trying to see Sheldon what you could do from a dividend perspective plus transactions and kind of still keep that minimum balance of 10% and up. Okay. No, I really appreciate those insights. So I'll pass it on to someone else.

Thank you so much for taking my questions. Thanks Tonya. Your last question comes from Derek Ma from TD Cohen. Your line is open. Thank you very much. At North Parks, early days for HubSpot, is major time a situation where exploration success for Evolution might actually displace what is otherwise higher grade gold tonnage and that would be subject to your stream.

Derek, I don't see any risk of Major Tom displacing anything that to our disadvantage. Actually, Major Tom is a really positive development for Tripp. That's a new discovery on the property right in the middle of of the mine site. So no, I don't see any downside exposure to Major Tom. I see it as all upside for Triple Flag. Okay.

And then on the $35,000,000 precious metal stream you mentioned in your MD and A, to support a Bransfield restart in Peru. Was this a bilateral situation? And are there other opportunities like this supporting restarts given the elevated pressure metal prices? Yes, that is a bilateral situation. And I'm hoping that that will close very shortly and we can talk a little more freely about that. [indiscernible] a no names basis, but as you pointed out, we disclosed it in our MD and A. It is bilateral. It's exactly what supposed to be doing from a corporate development perspective is we're out there talking to people using our networks. It's a really nice opportunity. I'm really looking forward to talking to the market [indiscernible] brownfield. It's a restart and it's precious metals in Latin America. So Kind of right in the middle of our Venn diagram.

Okay, great. Thanks.

That concludes the Q and A session. I will turn the call over to Sheldon Van der Koy, CEO for closing [indiscernible] shareholders. We're very excited about what we've accomplished in 2024 and even more excited about 2025. I don't think we've ever been as well positioned as we have been right now. The cash flows are very robust. There's a great deal pipeline very much looking forward to the upcoming year. Thanks everyone for participating.

That concludes today's call. Thank you all for joining and you may now disconnect.