Triple Flag Precious Metals Corp. Common Shares

Thank you for standing by. My name is Bailey and I will be your conference operator today. At this time, I would like to welcome everybody to the triple flag Q2 2024 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, again, press star and 1. I would now like to turn the call over to Shawn Usmar, CEO. You may begin.

Thanks, Bailey. Good morning, everyone, and thank you for joining us to discuss Triple Flag's second quarter of 2024 results. Today, I'm joined by CFO Sheldon van der Kooij and Senior Vice President of Corporate Development, James Dendel. Triple Flags delivered another strong performance in Q2 with sales of 27,000 GEOs. This has resulted in a record result for Triple Flag in the first half of the year and places us firmly on track to achieve our 2024 GEO sales guidance of 105,000 to 115,000 ounces. Our flagship asset, North Parks, continues to deliver quarter-on-quarter growth in GEOs due to higher open pit grades. This has underpinned year-over-year growth of 25% in cash flow per share. We're also excited about the opportunity for further value creation that Evolution has demonstrated in only eight short months as the operator of North Parks. Most notably, the opportunity for high-grade production from a new sub-level cave at the well-established E48 mine after the completion of high-grade open-pit mining is an exciting development that we're watching closely. Looking ahead, Triple Flag's organic growth profile remains strong and well-positioned to deliver long-term value with expected sales of 135,000 to 145,000 GEOs in 2028. On the deal front, we've also maintained a solid pace of accretive acquisitions over the past month with an additional royalty interest in the Tamarack project operated by Talon Metals, as well as new gold streams on the Agbar and Bonacrom mines operated by Allied Gold. Ultimately, we remain disciplined towards capital allocation during this period of strong precious metal prices and are pleased to announce that the performance of our business has provided the basis for our third consecutive annual increase of our dividend by 5% since we listed in 2021. Finally, the CEO transition has gone extremely well. Sheldon is running the day-to-day with the team in a seamless fashion, which is one of the clear benefits of the choice of a founding internal candidate who's well regarded by the market and team alike. Our full organizational picture has now also been set. Upon my departure in Q4 this year, Yvonne Barry will become Chief Financial Officer and James Dendel will become Chief Operating Officer. The promotion of Yvonne and James is a testament to the leadership and expertise as core members of Triple Flag's high-performing team. Yvonne's been with Triple Flag for six years, serving as VP of Finance and responsible for all finance functions, including financial reporting, tax, and treasury. James, who many of you know well, joined Triple Flag in 2017, heads our corporate development function, is a talented resource geologist by training that has worked across the globe with SRK in its former life. These promotions reflect Triple Flag's commitment to developing and creating growth opportunities for internal talent, a multi-year succession plan in action, and showcases that our true competitive advantage has always been our exceptional team. Furthermore, we're pleased to have Fraser Cunningham recently joined the team as managing director of Triple Flag International based in Bermuda. Fraser has a long history with Triple Flag, previously as an investment banker with Scotiabank and Bank of America, having advised us on our 2021 IPO and 2020 acquisition of North Parks. Fraser brings tremendous field experience, networks, and leadership to the deep talent pool that exists at the company. We're excited to welcome Fraser to Triple Flag. I'll now turn it over to Sheldon to discuss our financials for the second quarter of 2024.

Thank you, Sean. We had a strong first quarter with the portfolio producing over 27,000 GEOs and record first half GEOs of just under 55,000 ounces. This puts us right on track to achieve our 2024 guidance. Sierra Lindo and North Parks continue to be the two largest contributors to Q2 revenues, with Cerro Lindo receiving a strong benefit from the rise in silver prices and North Park showing year-over-year growth due to the higher gold grades realized. Strong production and strong gold and silver prices resulted in record levels of revenue and adjusted EBITDA that are significantly higher than the prior year period. Most notably, operating cash flow per share increased 25% when compared to the prior year period, which is the metric that I am most focused on. The streaming and royalty model is working as it should. with higher prices resulting in more cash flow to shareholders and not being consumed by capital expenditures or operating margin compression. I am also pleased that our dividend has been increased to $0.22 per share annually, up 5%. We have increased our dividend every year since our IPO in 2021 and it is my intention that we will continue this track record going forward. I view growing dividends as a core part of our capital allocation strategy. Lastly, I'd like to comment on our balance sheet. We exited the quarter with a small net cash position. Our portfolio generates robust cash flows, which allows for deployment into new asset additions, dividends, and share buybacks, and repayment of debt. Through the course of 2023 and the first half of 2024, we repaid debt taken on in connection with the Mavericks acquisition. We acquired cash-flowing royalties on AgBow install, all while increasing our dividend and buying back shares. Our cashflow outlook combined with nearly 640 million of current available liquidity gives us the financial capacity to deploy further capital for future per share growth, as well as deliver higher shareholder returns. Turning now to slide six, I am very pleased with our continuing record of production growth. We are right on track for 2024 guidance which will represent our seventh consecutive year production growth. We are also well positioned for longer-term growth. We expect our portfolio to deliver 2028 sales of 135,000 to 145,000 GEOs, a significant increase over current levels. This is despite the removal of Pumpkin Hollow and Moss Mine from our outlook. This 2028 outlook reflects the assumptions listed on the slide. These include the development of the E48 sub-level cave at North Parks, phase two production from ATO, first newton copper production at Johnson Camp Mine, and the development of assets such as Eskay Creek, Folk Bay, Kone, and Presca, as well as many others. Turning now to slide seven. We continue to highlight our asset diversification, precious metals focus, and a portfolio which derives over 85% of its revenue from Australia and the Americas. Our Q2 revenues were 100% derived from gold and silver. I want to highlight that we have meaningful silver exposure, representing 40% of Q2 revenues and reflecting strong performance at Cerro Lindo and Burritica. Silver has great potential in today's environment and represents significant upside for us going forward. Our shareholders invest in us for gold and silver exposure. Gold today is trading at over $2,400. It is a fantastic time to be invested in precious metals. Increases to the gold price will translate directly into increased cash flows for our shareholders. I'm very pleased with the charts on slide 8. Strong production and strong gold prices are delivering record revenues and, most importantly, record cash flows. The model is working as it should. Fundamental to our model are the sustained 90% asset margins, which insulate us from margin compression and capex overruns. There is an ongoing debate about the stickiness of inflation in the broader economy. Our model insulates us from inflationary pressures and provides consistent high margins and therefore dependable cash flows. I expect the per share cash flow increases to continue for years into the future as we deliver on our 2028 growth outlook and look for additional opportunities to deploy free cash flow into accretive acquisitions to the benefit of our shareholders. Over to you, James.