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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Triple Flag Precious Metals Corporation | NYSE:TFPM | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.60 | -3.65% | 15.84 | 16.31 | 15.58 | 16.20 | 277,305 | 01:00:00 |
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 2023 and declared a dividend of US$0.0525 per common share to be paid on March 15, 2024. All amounts are expressed in US dollars unless otherwise indicated.
“Our team and our operating partners delivered on an impressive set of milestones this past year. The portfolio achieved the seventh consecutive annual GEOs record for Triple Flag and a compound annual growth rate in GEOs of more than 20% since 2017, while delivering on our GEOs sales guidance for 2023. Looking ahead, we are well positioned to continue delivering sector-leading organic growth over the near-to-medium term, and beyond. At our multi-decade Northparkes asset, the processing of higher gold grades from the E31 and E31N open pits is on track to drive GEOs sales growth in 2024, while our extensive pipeline of growth projects including Hope Bay, Eskay Creek and Koné continued to advance down the development path. Given their technical expertise and long-life asset strategy, Triple Flag is also pleased to welcome Evolution Mining (“Evolution”) as our new partner at Northparkes, which shares a backyard in New South Wales with their impressive Cowal operation,” commented Shaun Usmar, CEO.
“I am proud of the business that the Triple Flag team has built over the past eight years. Our strong organic growth profile, sustainable and meaningful dividend, peer-leading insider ownership, as well as more than $660 million in liquidity for sensible external growth opportunities should continue to drive stakeholder value in the year to come.”
Q4 2023 and Full Year 2023 Financial Highlights
Q4 2023
Q4 2022
FY 2023
FY 2022
Revenue
$51.7 million
$43.9 million
$204.0 million
$151.9 million
Gold Equivalent Ounces (“GEOs”)1
26,243
25,428
105,087
84,571
Operating Cash Flow
$37.6 million
$36.7 million
$154.1 million
$118.4 million
Net Earnings (per share)
$9.8 million ($0.05)
$15.5 million ($0.10)
$36.3 million ($0.18)
$55.1 million ($0.35)
Adjusted Net Earnings2 (per share)
$17.8 million ($0.09)
$17.4 million ($0.11)
$66.3 million ($0.33)
$61.0 million ($0.39)
Adjusted EBITDA3
$41.0 million
$33.8 million
$158.5 million
$118.5 million
Asset Margin4
91%
91%
90%
91%
GEOs Sold by Commodity, Revenue by Commodity, and Financial Highlights Summary Table
Three Months Ended December 31
Year Ended December 31
($ thousands except GEOs, Asset Margin and per share numbers)
2023
2022
2023
2022
GEOs1
Gold
14,997
11,199
61,251
44,786
Silver
9,883
12,684
38,983
34,052
Other
1,363
1,545
4,853
5,733
Total
26,243
25,428
105,087
84,571
Revenue
Gold
29,568
19,328
119,041
80,533
Silver
19,484
21,892
75,554
61,051
Other
2,687
2,666
9,429
10,301
Total
51,739
43,886
204,024
151,885
Net Earnings
9,755
15,460
36,282
55,086
Net Earnings per Share
0.05
0.10
0.18
0.35
Adjusted Net Earnings2
17,754
17,429
66,267
61,012
Adjusted Net Earnings per Share2
0.09
0.11
0.33
0.39
Operating Cash Flow
37,644
36,721
154,138
118,376
Operating Cash Flow per Share
0.19
0.24
0.77
0.76
Adjusted EBITDA3
41,017
33,848
158,541
118,503
Asset Margin4
91%
91%
90%
91%
Corporate Updates
2024 Guidance
In 2024, we expect attributable royalty revenue and stream sales of 105,000 to 115,000 GEOs.
2024 guidance is based on public forecasts and other disclosure by the owners and operators of our assets and our assessment thereof. Key assumptions that drive the achievement of guidance includes:
The final deliveries from our Renard stream were 965 GEOs in the fourth quarter of 2023. This, together with the anticipated sequencing of mining and processing activities from our operators, is expected to result in lower GEOs sales in the first quarter of 2024 compared to the prior quarter.
2024 Guidance1
GEOs Sales3
105,000 to 115,000 GEOs
Depletion
$70 million to $80 million
General Administration Costs
$23 million to $24 million
Australian Cash Tax Rate2
~25%
1 Assumed commodity prices of $1,900/oz gold and $21.00/oz silver.
2 Australian Cash Taxes are payable for Triple Flag’s Australian royalty interests, specifically Fosterville, Beta Hunt, Stawell, Dargues and Henty.
3 Refer to Endnote 1
Long-Term GEOs Sales Outlook
Triple Flag’s long-term GEOs sales outlook builds on the sector-leading growth achieved since our inception, with a compound annual growth rate of more than 20% since 2017.
GEOs sales over the five-year period from 2025 to 2029 are expected to average more than 140,000 GEOs per year, a significant increase over current levels driven by the following anticipated increases:
The majority of the GEOs sales expected over the five-year outlook is derived from mines that are currently in production and supported by Mineral Reserve and Mineral Resource estimates. Above and beyond the current five-year outlook, exists further optionality associated with exploration-stage projects that may be advanced to production during the period. Our five-year outlook is based on a metal price assumption of $1,850/oz Au, $22/oz Ag and $4.00/lb Cu.
Q4 2023 Portfolio Updates
Australia:
Latin America:
North America:
Rest of World:
Conference Call Details
Triple Flag has scheduled an investor conference call at 9:00 a.m. ET (6:00 a.m. PT) on Thursday, February 22, 2024, to discuss the results reported in today’s earnings announcement. The conference call will be broadcast live via a webcast and 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 two weeks following the webcast.
Live Webcast:
https://events.q4inc.com/attendee/512901222
Dial-In Details:
Toll-Free (U.S. & Canada): +1 (888) 330-2384
International: +1 (647) 800-3739
Conference ID: 4548984
Replay (Until March 7):
Toll-Free (U.S. & Canada): +1 (800) 770-2030
International: +1 (647) 362-9199
Conference ID: 4548984
About Triple Flag
Triple Flag is a pure play, precious-metals-focused streaming and royalty company. We offer bespoke financing solutions to the metals and mining industry with exposure primarily to gold and silver in the Americas and Australia, with a total of 235 assets, including 15 streams and 220 royalties. These investments are tied to mining assets at various stages of the mine life cycle, including 32 producing mines and 203 development and exploration stage projects, and other assets. Triple Flag is listed on the Toronto Stock Exchange and New York Stock Exchange, under the ticker “TFPM”.
Qualified Person
James Dendle, Senior Vice President, Corporate Development 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 2023, 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 2023 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 is based on stream and royalty interests and 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:
2023
Year ended
($ thousands, except average gold price and GEOs information)
Q4
Q3
Q2
Q1
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
2022
Year ended
($ thousands, except average gold price and GEOs information)
Q4
Q3
Q2
Q1
December 31
Revenue
43,886
33,754
36,490
37,755
Average gold price per ounce
1,726
1,729
1,871
1,877
GEOs
25,428
19,523
19,507
20,113
84,571
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:
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)
2023
2022
2023
2022
Net earnings
$
9,755
$
15,460
$
36,282
$
55,086
Impairment charges1
—
3,600
27,107
3,600
Expected credit losses2
8,749
—
9,723
—
Loss (gain) on disposal of mineral interests3
—
—
1,000
(2,099
)
Foreign currency translation losses
(57
)
63
218
352
(Increase) decrease in fair value of investments and prepaid gold interests
434
(733
)
(1,467
)
4,066
Income tax effect
(1,127
)
(961
)
(6,596
)
7
Adjusted net earnings
$
17,754
$
17,429
$
66,267
$
61,012
Weighted average shares outstanding – basic
201,517,879
155,793,370
199,327,784
155,950,659
Net earnings per share
$
0.05
$
0.10
$
0.18
$
0.35
Adjusted net earnings per share
$
0.09
$
0.11
$
0.33
$
0.39
Endnote 3: Adjusted EBITDA
Adjusted EBITDA is a non‑IFRS financial measure, which excludes the following from net earnings:
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 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)
2023
2022
2023
2022
Net earnings
$
9,755
$
15,460
$
36,282
$
55,086
Finance costs, net
1,005
172
4,122
1,413
Income tax (recovery) expense
647
(247
)
107
4,789
Depletion and amortization
16,721
14,697
65,477
50,460
Impairment charges1
—
3,600
27,107
3,600
Expected credit losses2
8,749
—
9,723
—
Loss (gain) on disposal of mineral interests3
—
—
1,000
(2,099
)
Non-cash cost of sales related to prepaid gold interests
3,763
836
15,972
836
Foreign currency translation loss
(57
)
63
218
352
(Increase) decrease in fair value of investments and prepaid gold interests
434
(733
)
(1,467
)
4,066
Adjusted EBITDA
$
41,017
$
33,848
$
158,541
$
118,503
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 dividing by revenue. We use gross profit margin to assess profitability of our metal sales and asset margin to evaluate our performance in increasing revenue, containing costs and providing 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)
2023
2022
2023
2022
Revenue
$
51,739
$
43,886
$
204,024
$
151,885
Cost of sales
25,292
19,428
101,948
64,881
Gross profit
26,447
24,458
102,076
87,004
Gross profit margin
51%
56%
50%
57%
Gross profit
$
26,447
$
24,458
$
102,076
$
87,004
Add: Depletion
16,629
14,604
65,108
50,085
Add: Non-cash cost of sales related to prepaid gold interests
3,763
836
15,972
836
46,839
39,898
183,156
137,925
Revenue
51,739
43,886
204,024
151,885
Asset margin
91%
91%
90%
91%
Endnote 5: Information Sources
In all cases, mineral resources that are not mineral reserves do not have demonstrated economic viability.
Buritica: Information extracted from a technical report provided entitled, “Internal Technical Report on the Buritica Gold-Silver Project, Antioquia, Colombia” dated February 2023 and prepared for Zijin-Continental Gold Limited Seccursal Colombia. Mineral Resources are inclusive of Mineral Reserves.
Mineral Resource Statement for HVM Buritica Project ZCGL Colombia as of December 31, 2022
Category
Volume
(km3)
Tonnage
(Mt)
Au
(g/t)
Ag
(g/t)
Au
(t)
Au
(Moz)
Ag
(t)
Ag
(Moz)
Measured
2,736
8.21
10.18
33.94
83.5
2.69
278.6
8.96
Indicated
5,244
15.73
7.55
27.86
118.8
3.82
438.3
14.09
Measured + Indicated
7,890
23.94
8.45
29.95
202.3
6.50
716.9
23.05
Inferred
6,597
19.79
6.34
23.22
125.5
4.04
459.5
14.77
Notes:
Mineral Resource Statement for LPM Buritica Project ZCGL Colombia as of December 31, 2022
Category
Volume
(km3)
Tonnage
(Mt)
Au
(g/t)
Ag
(g/t)
Au
(t)
Au
(Moz)
Ag
(t)
Ag
(Moz)
Measured
2,773
8.18
3.35
9.26
27.4
0.88
75.8
2.44
Indicated
168
0.49
2.84
7.96
1.4
0.05
3.9
0.13
Measured + Indicated
2,941
8.68
3.32
9.19
28.8
0.93
79.7
2.56
Inferred
313
0.92
3.03
8.11
2.8
0.09
7.5
0.24
Notes:
View source version on businesswire.com: https://www.businesswire.com/news/home/20240221836842/en/
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
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