Triple Flag Precious Metals Corp. Common Shares

Good morning. My name is Joseph and I will be your conference operator today. At this time, I would like to welcome everyone to the Triple Flag Precious Metals Quarter One 2022 results call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. CEO, Sean Osmar, you may begin your conference.

Thank you very much. Hello, everyone, and thank you for joining us to discuss Triple Flag's first quarter results. Today, I'm joined by our CFO, Sheldon Vanderkooy, our Vice President of Evaluations and IR, James Dendle, our Vice President of Talent and ESG, Katie Board, and our Vice President of Finance, Eban Bari. I'm pleased to report another solid quarter during which our business benefited from continued support of commodity prices, underlying portfolio quality, and the embedded resilience associated with asset diversification and insulation from operating and capital cost inflation. We're pleased to report that we met our pre-release sales guidance in the first quarter, having achieved 20,113 ounces sold. resulting in a 7% increase in revenue year-over-year to US$37.8 million, adjusted EBITDA of US$30.5 million and earnings of US$0.10 per share. The market and pricing backdrop has been volatile during this period with the competing forces of inflation, central bank action, ongoing COVID-related supply-demand impacts and geopolitical instability with the war in Ukraine. Yet our margins have remained steady, our cash balance continues to grow, and our financial results have proven to be resilient. The business is continuing to deliver robust organic growth. Production across the portfolio in the first quarter was strong and in line with expectations. Over the quarter, the pipeline for new deals has remained very active. Triple Flag acquired a royalty on a highly prospective high self-adhesion epithermal gold deposit in Chile called Sophia for $5 million, a small tuck in addition to our portfolio done on a bilateral basis. We also announced earlier in the quarter the acquisition of a royalty on the Beaufort mine in Quebec. Our latest deal announcement, subsequent to quarter end, is the proposed precious metal stream and gross revenue royalty on the Prisca Copper Zinc Project in South Africa, another bilateral deal that we have exclusivity on. Prisca is a large-scale base metals DMF deposit operated by Orion Minerals, which is listed on the ASX and the JSE, with an extremely large and prospective land package. We are really pleased to achieve this important step towards providing Orion with funding support for a very exciting base metals mine development. Overall, we continue to demonstrate discipline in our deal-making approach with a focus on high-quality accretive transactions and an emphasis on cultivating direct bilateral deal opportunities. Our dividend yield remains competitive, with our board declaring a dividend of 4.75 US cents for the quarter to be paid in June. In these unprecedented times of both climate and social change, Triple Flag is committed to responsible mining, providing essential metals for renewable energies through our work with responsible mine operators, primarily via precious metal by-product stream financing, and supporting the communities in which they work. During the quarter, we also donated $100,000 in support to Ukrainian humanitarian relief to assist the most vulnerable victims of the senseless conflict. The portfolio is delivering organic growth, both in the short term and the medium to long term. Beritica's expansion continues to 4,000 tons per day this year, and our ramp-up assets are advancing towards nameplate capacity. Step Gold resumed leaching in March and they're advancing the Phase 2 expansion. James and I were fortunate to visit North Park a few weeks ago with COVID-related travel restrictions finally easing. The trip underscored the quality of the management team combined with the incredible surface and underground infrastructure in place at North Park and the significant optionality associated with resource conversion, the discovery of new porphyry deposits and potential to expand the capacity of the mine. In a world seeking copper to enable our decarbonization and climate change imperatives, North Park is ideally placed for a long and prosperous future ahead of it that we are proud to be a part of via our gold and silver byproduct streams and our community support commitments. I'll now turn it over to Sheldon to discuss our financials for Q1 2022.

Thank you, Sean. GEOs and Q1 were broadly in line with the same quarter in the prior year. Increasing by 2% to 20,113. Gold stream volumes increased by 29%, driven primarily by increased deliveries from North Parks, and gold royalties were consistent with the prior year. Silver stream volumes decreased year over year, but consistent with our expectations. Q1 results as a whole were consistent with our 2022 guidance of 90,000 to 95,000 GEOs, which assumed a gold-silver ratio of 77. The markets have experienced significant volatility lately, and in Q1 as a whole, we realized the gold-silver ratio of 78 times. To illustrate the impact of the gold-silver ratio on GEOs, GEOs for the quarter would have been approximately 1,000 ounces higher if the gold-silver ratio had remained consistent with the same period last year. Nonetheless, we had a good start to the year with strong performances at North Parks, Fosterville, Bredica, and RB Platt in particular. I'll now turn to the next slide. We've seen increasing financial market volatility as the markets grapple with inflation and rising interest rates. We are seeing input cost pressures across the economy which can squeeze margins. The streaming and royalty model is a fantastic lower risk model ideally suited to today's environment. We have top line revenue exposure benefiting from top line revenue inflation Thank you, Sheldon. The portfolio delivered strong financial results during Q1. Revenue was up 7% over Q1 2021 to $37.8 million.