Triple Flag Precious Metals Corp. Common Shares

Ladies and gentlemen, thank you for standing by. My name is Cheryl and I'll be your conference operator today. At this time, I would like to welcome everyone to the triple flag Q2 2023 results conference 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 star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I would now like to turn the call over to Chief Executive Officer, Sean Usmar. Your line is now open.

Thank you, Sheryl. Good morning, everyone, and thank you for joining us to discuss Triple Flag's second quarter 2023 results. Today, I'm joined by our CFO, Sheldon Vanderkooy, our SVP of Corporate Development, James Dendle, and our VP Finance, Eban Bari. Thanks for the next slide. Our business continues its strong performance during the second quarter with sales of 26,616 gold equivalent ounces, resulting in 41 million US dollars of operating cash flow, which are new quarterly records. Our portfolio is performing well with many assets experiencing positive catalysts during the quarter, such as Steps Gold's phase two funding for ATO, Fosterville's prohibition notice which restricted underground activities having been lifted and North Park's mobilization of surface mining equipment for the high gold grade E31 open pit to name but a few. In addition, we acquired a 2.5% NSR royalty on the producing Agbar mine operated by Allied Gold for $15.5 million, which brings immediate GEOs to our top line. During July, We released our 2022 sustainability report entitled Progress in Motion, showcasing our contributions and commitment to helping evolve market leading sustainability performance. I'd encourage you to view this document, which can be found on our website. Also, subsequent to the quarter end, Triple Flag received a rating of AA in MSCI ESG rating assessment, placing us amongst the leaders in the gold sector. We're pleased to announce that our Board of Directors approved a dividend increase to 21 US cents per share on an annualized basis, which is a 5% increase, and is our second consecutive annual increase of the dividend since our May 2021 initial public offering. I'll now turn it over to Sheldon to discuss our financials for Q2 2023.

Thank you, Sean. We had a record second quarter, realizing over 26,600 gold equivalent ounces. This resulted in record revenues, adjusted EBITDA, and operating cash flow in the quarter. Net earnings of over $16 million resulted in an increase to our earnings per share compared to the second quarter of 2022. Our operating cash flow of nearly $41 million resulted in operating cash flow per share of 20 cents, an increase compared to the same period in 2022. The portfolio is performing well, and we are on track with our guidance. I am particularly pleased that we increased our dividend by 5% to $0.21 on an annualized basis. We have robust cash flow and the portfolio has embedded future growth that does not require further capital investment. I expect this will allow us to extend our track record of increases in future years. In the quarter, we paid out over $10 million of dividends to our shareholders. We also returned capital to shareholders through the NCIB in the quarter. We believe that our shares represent significant value and we will be opportunistic in buying back our shares as opportunities present themselves. We repaid $15 million of debt in the quarter with a balance of $65 million at quarter end. This represents less than two quarters of cash flow. Lastly, our asset margins for the quarter remain strong at 91%. High asset margins are a key feature of the streaming and royalty model and help ensure robust cash flow generation. I'll now turn to slide 6. Slide 6 highlights three very important aspects of our portfolio, namely asset diversification, precious metals focus, and a portfolio which is predominantly centered in the Americas and Australia. Our revenue is well diversified across our portfolio. North Parks and Cerro Lindo are the biggest contributors in the quarter, representing 17% and 15% of quarterly revenues, respectively. We are strongly precious metals focused. Gold and Silver accounted for 95% of our revenues, among the highest in the sector. Our portfolio is predominantly located in mining-friendly jurisdictions. By geography, the country with the single greatest contribution is Australia. Our Australian producing assets include North Parks, Fosterville, and Beta Hunt, as well as a number of smaller contributors. Outside of Australia, we are largely focused in Latin America and North America. I'll now turn to James who will speak to our asset highlights.