Triple Flag Precious Metals Corp. Common Shares

Thank you for standing by. My name is Kathleen and I will be your conference operator today. At this time, I would like to welcome everyone to the Triple Flag Precious Metals second quarter 2025 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. And if you would like to withdraw your question, press the star one again. And now I would like to turn the call over to Sheldon Vandercoy, CEO. Please go ahead.

Thank you, Kathleen. Good morning, everyone, and thank you for joining us to discuss Triple Flag's second quarter of 2025 results. Today I'm joined by our CFO, Ibn Bari. Triple Flag achieved another record quarter in Q2. Sales of nearly 29,000 GEOs drove record adjusted EBITDA of $76 million, and most importantly, record operating cash flow of $0.38 US per share. Given our strong margins that consistently exceed 90%, These record results demonstrate Triple Flag's ability to realize higher per share cash flows in today's strong gold and silver price environment. This strong performance has also positioned us well to deliver our 2025 guidance of 105,000 to 115,000 ounces over the balance of the year. On the deal front, we have maintained a solid pace of accretive acquisitions during the first half of 2025. Most of these transactions have focused on tuck-in investments into near-term production starts, including the Trey Corbatas lithium mine in Argentina, the Arcata and Azuca silver mines in Peru, as well as the newly announced additional 1.5% gross revenue royalty on the Johnson Camp copper mine in Arizona. All of these three acquisitions are expected to deliver first revenue in the second half of this year. Notably, we also completed our acquisition of a 1% NSR royalty on the world-class Arthur Gold Project located in Nevada, formerly known as the Expanded Silicon Project. Operated by Anglo Gold Ashanti, this project offers exceptional long-term growth potential underpinned by a rapidly expanding resource base and significant exploration upside. This asset represents tremendous value for our shareholders, And I would like to thank the Triple Flag and Origin teams for their hard work and dedication in completing this transaction. We are very excited about the Arthur project. Angle Gold CEO made quite positive statements about Arthur last week, and I think that our shareholders are really going to benefit from our exposure to this project in the future. Turning back to organic growth, the most powerful and value driving aspect of the Royalty and Streaming model is the free carried optionality that Triple Flag has on our assets. as our operators continue to search for new exploration discoveries, replace reserves, and expand their assets. Triple Flag has 4.75% exposure to West Gold's Beta Hunt mine in Australia. In Q2, West Gold declared a maiden resource for the Fletcher Zone of 2.3 million ounces. This nearly doubles the total resource base at Beta Hunt, with significant exploration potential at depth and along strike. Wes Gold's rapid progress from the announcement of the initial discovery target at the Fletcher Zone last September to the declaration of a maiden resource in June is a testament to the quality and embedded value within our portfolio. I'll touch more on the Fletcher Zone later on in the presentation. Finally, an important pillar of our capital allocation strategy remains returns to shareholders. We are pleased to announce our fourth consecutive annual increase of our dividend since we listed in 2021. I will now ask Evan to discuss our financials for the second quarter of 2025.

Thank you, Sheldon. As noted, we had a very strong second quarter with portfolio producing nearly 29,000 geos, resulting in a record first half of over 57,000 geos. This puts Triple Flag right on track to chief our 2025 sales guide. These strong volumes were delivered to make the backdrop of record precious metals prices, as well as continuing strong margins. Accordingly, we're pleased to highlight that operating cash flow per share, the single most important metric we focus on as a company, has increased by over 50% year over year to a new quarterly record. We view a progressively growing dividend as a core part of our capital allocation strategy. Our dividend has been increased to 23 cents U.S. on an annualized basis, up 5% from prior dividends. I'm proud that we have increased our dividend every year since our IPL. Lastly, I'd like to comment on our balance sheet. We exited the quarter with zero debt, and even with the capital deployed early in Q3 for the Arthur Royalty, we expect to be in net cash position by the end of Q3 at current metal prices. Overall, a clean and strong balance sheet, robust operating cash flows, and total liquidity available of nearly a billion dollars gives us the capital to continue to deploy dollars into creative opportunities to drive future growth for the benefit of shareholders. Moving ahead, we highlight three key aspects where investment pieces that remain unchanged, mainly top tier assets, precious metals focus, and a portfolio which is predominantly centered in Australia and America. North Parks and Cerro Lindo continue to be the two largest contributors to revenues. North Parks had a record quarter due to processing of higher open pick grades from Stockpaw Door, while Cerro Lindo received strong benefit from the rapid rise in silver prices towards the end of the quarter. Overall, Revenue is derived 100% from precious metals with roughly two-thirds from gold. This pure play exposure ranks among the highest in the sector and offers investors exposure to the many favorable tailwinds for both gold and silver. Finally, our portfolio is predominantly located in mining-friendly jurisdictions. A key criteria, we look to expand our portfolio through acquisitions. In Q2, 90% of our revenue was derived from assets in Australia and the Americas. I will now turn it over to Sheldon to discuss Beta Hunt and the new main resource at the Fletcher Zone.