Triple Flag Precious Metals Corp. Common Shares

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. To withdraw your question, simply press star one again. I would now like to turn the conference over to Sheldon Vanderquay. CEO, please go ahead.

Thanks, John. Good morning, everyone, and thank you for joining us to discuss Triple Flag's third quarter results. Today I am joined by our CFO, Ibn Bari, and our Chief Operating Officer, James Dendel. 2025 has been an exceptional year so far, and Triple Flag has achieved another record quarter in Q3. We recorded 27,000 GEOs in the quarter, which drove record adjusted EBITDA of $79 million and record operating cash flow per share of $0.39 US. Shareholders are directly benefiting from the higher gold prices through higher cash flow per share. We should continue to benefit in Q4 and beyond as well as current gold prices are well in excess of the average gold price realized in Q3. We expect to achieve 2025 GEOs between the midpoint and the high end of our 2025 guidance range. I am very pleased with the additions we have made to the portfolio year to date. Year-to-date, Triple Flag has now deployed over $350 million of capital over five investments. In H1, we announced our investments in the Trey Krabatis lithium mine in Argentina, the Arcata silver mine in Peru, and an additional interest in the Johnson Camp copper mine in Arizona, all of which have now started production either in line or ahead of our investment case. Early in the third quarter, we completed our acquisition of a 1% NSR royalty on the Arthur Project in Nevada, operated by Anglegold Ashanti. And most recently, we have acquired a royalty package on Pan-Americans producing Minera Florida gold mine in Chile for $23 million. James will provide further details on Minera Florida later in the presentation. This is exactly the sort of royalty that drives shareholder value over time in the royalty sector. as we have open-ended exposure to top-line revenues and resource expansion over time. Together, our investments year-to-date are providing near-term increasing cash flows as well as longer-dated optionality. They are also located in the right jurisdictions. The bulk of the value is in the Western United States, and the remainder is in Chile, Peru, and Argentina. I will now hand over to Ivan to discuss our financials for the third quarter of 2025.

Thank you, Sheldon. As noted by Sheldon, we had an excellent third quarter with just over 27,000 GEOs. This puts Triple Flag on track to achieve between the midpoint and high end of our 2025 GEOs guide. These strong volumes in Q3 were delivered in the backdrop of strong precious metals prices, which reached a record quarterly average of nearly $3,500 per ounce for gold, and nearly $40 per ounce per silver. Accordingly, we are pleased to highlight that operating cash flow per share, the single most important metric we focus on as a company, has increased by over 25% year over year. Lastly, I'd like to comment on our balance sheet. We exited the quarter with essentially zero net debt despite deploying significant capital during the third quarter for the acquisition of the Arthur Gold Royalty and the Minera Florida Royalty. Today, we're in a net cash position. Overall, strong balance sheet, record operating cash flow, and total liquidity available of nearly a billion dollars provides us with the capital to continue deploying dollars into creative opportunities to drive future growth for our shareholders. It also allows us to continue returning superior returns to shareholders, and we're pleased to declare a quarterly cash dividend of 5.75 cents U.S. per share. TripFlag remains focused on top-tier precious metals assets, with revenue that's nearly 90% sourced from mining-friendly jurisdictions in both Australia and the Americas. North Parks and Cerro Lindo continue to be two largest contributors to revenues in the third quarter, with North Parks achieving another record quarter due to continued processing of higher open-pay grades from stockpiled ore. Triple flag sales mix remains 100% derived from precious metals, including nearly three quarters from gold. We do not expect this to materially change, and this will continue to provide investors with exposure to the strong gold and silver price environment. I will now turn it over to James to discuss the producing Minera Florida gold mine in Chile.

Thank you, Iban. Minera Florida is located approximately 75 kilometers southwest of Santiago in Chile and is owned and operated by Pan American Silver. It's an underground mine that produces gold and silver of the zinc concentrate byproduct. During the third quarter, we are pleased to acquire a package of three net smelter return royalties on Monero, Florida, ranging from 0.8% to 1.5% for a total cash consideration of $23 million from a third party. Monero, Florida has a long history of consistent performance, continuous operation, and reserve replacement. and has produced over 2.5 million ounces of gold and 14 million ounces of silver since commissioning in 1986. The mine has always operated with a relatively short reserve life. Over the last 20 years, the mine has had approximately half a million ounces of gold in reserves at any one time, which equates to about four to five years of visible reserve life. Historic annual production at Monero, Florida, has ranged between 75,000 and 100,000 ounces of gold per annum. Driven by mill expansion potential to increase the nameplate capacity, Triple Flag expects the GEOs from Monero, Florida to increase to approximately 1,000 ounces by 2028. The exploration potential is minus significant, and given Monero, Florida's impressive track record of reserve replacements since 1986, we see this asset continuing to perform for decades to come. I'll pass it back to Sheldon for closing remarks.

Thank you, James. In closing, Triple Flag is performing very well and is positioned to continue this performance going forward. Our shareholders are benefiting from our strong current production and the increase in gold prices, which are translating into record cash flows per share. I am very pleased at our success in reinvesting those cash flows in further streams and royalties, which will benefit our shareholders for decades to come. There are a number of near-term catalysts across our portfolio. First, Johnson Camp Mine, Trey Corbatus, and Arcata have all recently started production and will continue to ramp up into 2026. Second, on the project front, economic studies for Arthur and Hope Bay are on track for completion in the first half of 2026, and we look forward to ongoing exploration updates on the Fletcher Zone from Beta Hunt. And finally, the Kone project continues to make good progress targeting production in 2027. That concludes our presentation. Operator, please open the floor to questions.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. As a reminder to everyone, in order to ask a question, please press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, simply press star one again. We will pause for a moment to compile the Q&A roster. Thank you. Our first question comes from the line of Fahad Tariq with Jefferies. Please go ahead.

Hi, thanks for taking my questions. Just on the deal pipeline, maybe talk a little bit more about how the Minera Florida transaction was sourced. Was this, I mean, it was a third party royalty from a family. Just curious if there was any sort of process or was this a relationship that was like preexisting? Any more color there would be helpful.

Yeah, Fahad, hi, I can take this. Yeah, it was a fairly concentrated process. We developed a bit of a rapport with the family over the course of negotiating the deal. And that was good because we actually were able to undertake a site visit. And very often, as you know, with these third-party royalty sales, you can't do that. Whereas we actually had a team down in Chile earlier on in the year spending a couple of days at sites. We had access to Pan American silver in this instance and the whole mindset thing.

Okay, great. Yeah, that's helpful. And then maybe just switching gears to the ATO stream, looks like there was an international arbitration that was started early October. Can you maybe just give us an update on how the discussions are going with Step Gold and what's Triple Flag's expectation for a potential resolution?

Yeah, hi, Fahad. It's Sheldon. I'll take this one. We tried to be really transparent in the press release and give everyone direction on the legal proceedings we've started. I'm a little limited in what I can say, but I can provide some background and direction to you in the market. First of all, I'm going to start by saying we're just extremely confident in our legal position. You know, we're owed about $10 million U.S. STEP's market cap is a little over $500 million Canadian. They have production. They have cash flow. They clearly have the ability to pay. We are in dialogue with STEP's controlling shareholder. There is no doubt in my mind that they are building phase two. And the last thing I'd note is, you know, we're going to land in the top half of our guidance range, even if we don't receive a single ounce from Step Gold, you know, here to the end of the year. I really can't go any further into how this is going to get resolved. But, you know, we are in discussions and we are very confident in our legal position.

Okay. And then just maybe a follow-up if you can answer this part. You're in discussions with the largest shareholders. Are you in discussions directly with Step Gold?

I would take the largest shareholder as being in discussions with debt sold. Okay, fair enough. Thank you.

Your next question comes from the line of Sam Overwater with Scotiabank. Please go ahead.

Hi, good morning, everybody. I just had a question on the transaction opportunities. I think the last time we spoke, you guys were evaluating opportunities between $100 and $300 million. I just wanted a little bit more color on that, like what – like geographies and jurisdictions are these opportunities in? What are the structures of these deals, debt, equity stream, et cetera? Is there any royalty opportunities? And then on top of that too, like what are a lot of the purposes of these transactions in terms of, you know, asset sales, construction funding, et cetera?

Yeah. Hi. Thanks, Sam. I appreciate that. Yeah. The opportunity set, I think, still is squarely in the $100 to $300. Obviously, we've done deals that are smaller than that. We'll look at those. There are larger ones as well. It's probably instructive to look at what we've done already year-to-date. We've done $350 million of deals year-to-date. It's a pretty good mix of smaller royalties. Then we had the larger Arthur transaction, which was actually a corporate transaction, which is just another way to find good assets at reasonable prices for our portfolio. The opportunity set, it's a real mix. I mean, it's streams, it's royalties. I would say it's concentrated in jurisdictions that investors would be very happy with. You know, I'd say like the Americas, traditional mining jurisdictions. And the use of proceeds or what's driving it, it really runs the gamut. I think you kind of summed it up pretty well. People need money for various things, and that creates the opportunity for companies like ours to step in with financing. Great.

Thank you. And then just on top of that as well, corporate transactions. How are you guys associate or assessing corporate transactions relative to sort of other opportunities in the current landscape? Is there anything you're currently considering?

Yeah, I mean, I don't view a big distinction between corporate transactions and other transactions. I mean, we acquired that Arthur Royalty. It was via an acquisition of Origin and then a spin out. Um, you know, the Mavericks acquisition was a way to acquire a great portfolio at a reasonable price. So we're always looking for ways to add good assets to our portfolio at, at returns that are attractive and accretive to shareholder value.

Great. Thank you. Then lastly, um, triple F like currently have like a, a, uh, equity portfolio to sell. Are you considering any sales in an equity portfolio or anything like that? Uh, no. Great. Thank you. It's all for me.

Thank you. Your next question comes from the line of Brian McArthur from Raymond James. Please go ahead.

Good morning and thank you for taking my question. I just wondered if you can comment a little bit on Priesta and what's going on there. I mean, the statement, you know, Orion looks like they've signed... a term sheet with Glencore, but what actually needs to happen there for you to move that forward post other than the, you know, South African regulatory approvals?

Hi, Brian, it's James. I'll pick that up. So, as you recall, Prescott was contemplated as a single integrated project comprising two zones, what they refer to as the uppers, which is the upper remnant areas of the historical mine. and the deeps, which is the sort of untouched sulfide ore body. The deeps is of great interest to us because it hosts the precious metals. It also has the exploration upside, and it's the part of the ore body we're most focused on. The company, through looking to stage their capital expenditures, has disaggregated the project to the uppers, which they'll develop first, and the deeps that they'll develop progressively thereafter. There is a dewatering component to that. And as you noted, they've received, I think, a very supportive non-binding letter of intent from Glencore, which they're working through at the moment. So that is all very positive. Given our primary economic interest is in the deeps, we will be evaluating the right but not obligation to fund the stream into the deeps when they actually are at the stage to make a final investment decision on that project. So we expect the company to make an investment decision on the uppers this year. and an investment decision in the deeps next year. So as a reminder, we have no obligation to fund the stream, but we like the assets. So it's a funding decision for triple flag in 2026.

But just to be clear, so can you, I mean, could they develop the offer if you think of it that way with the money they have and you just get the option to wait and then just come in on the lower or do you have to execute once they make the decision to do the upper, if I want to look at it that way. That's what I'm trying to figure out. I get it. You have the option to do it or not do it, but I don't know if there's a drop dead part of the contract that makes you decide or whether you can wait and see how the second part goes, if you see what I'm saying.

Yeah, we can wait until the second part's ready to go. But the nice thing is that the company will be progressing with the dewatering for the deeps while mining the uppers. so that they continue to de-risk and develop the project whilst we get the opportunity to wait to make the investment decision in the deeps. So there's no drop dead in that sense. We just have the opportunity to wait a little longer. You'll recall we have a small royalty on the projects as a whole. So when the others start producing, obviously the royalty will pay because that applies to both zones. Great. Thanks very much, James.

That's very clear now. Yeah, no problem.

Your next question comes from the line of Derek Ma with TD Calvin. Please go ahead.

Thank you. On the El Mochito stream disposal, you got a fair amount of consideration to perhaps a win-win situation for both parties. But could you discuss how the situation arose and how you evaluate these types of situations versus retaining optionality in the portfolio?

Yeah, sure, Derek. It's Sheldon. I'll speak to that. El Mochito, it's a fairly small mine. It's based in Honduras. We acquired it as part of the Mavericks portfolio. It was undercapitalized and they were having difficulty servicing the stream as part of their operations. Eventually what we did, and we're close to the operator, they're a private company, and we were looking for ways to get additional capital that was not our capital into that project so they could be in a position to start paying out on the stream. Basically, I think this was a win-win-win situation. where we found the outside capital, they're bringing that in, and then we're structuring ourselves to come out on these terms. It's good value for us, and I think it allows them to move forward without the stream in place.

Okay, and how do you evaluate these type of situations versus retaining optionality when you look across your portfolio when other opportunities come up like this?

I mean, every situation is different. I think I put it this way. I'm very happy with the structure of this and the way this is being resolved. It's getting us good value out. It allows them to go on. Generally, we're not looking at selling streams, but this is essentially a structured sale of a stream. But it's really based on an asset-by-asset basis. Okay, clear. Thank you.

Once again, if you would like to ask a question, please press star followed by the number one on your telephone keypad. Our next question comes from the line of Cosmos 2 with CIBC. Please go ahead.

Thanks, Sheldon, Iben, and James. Maybe my first question is on Menira, Florida. James, you mentioned that you were on site. My understanding is that this past quarter or this past year, there's been some issues in terms of negative grade reconciliation unplanned mind sequencing into lower grade or zones i think you mentioned that as much as well in your guidance you said um i think minora florida long term was capable of doing 75 to 100 000 ounces uh this past year 78 to 90 so the top end is lower so i guess my question is james how much of that have you factored in into your evaluation And is it just really a one-off and it's really going to bounce back or how do you look at it?

Yeah, good question. You know, the valuation and the production assumptions over a short period of time, of course, you know, you consider what's actually happening on the short term as a guide to the long term. But the interesting thing is, as you know about Monero Flores, there's a very long history of of operations here. So, we actually had access to the full history of production records that gave us great confidence in the forecast. And at the end of the day, you know, quarterly variance in a gold mine is not a new thing. So, for sure, there's quarterly variance. And, you know, on a month scale, that exists. And I'm sure it will occur in the future. But in the long term, we think the mine will operate in accordance to how it's operated historically, which is in the range we stated.

Of course. Thanks. Maybe switching gears a little bit, bigger picture, you know, Sheldon, as you mentioned, reiterated in your release as well, 2029 guidance outlook. Outlook is you're still looking for 135,000 to 145,000 ounces geos. That's a very good increase for what level you're at today. Could you maybe, you know, summarize for us what goes into that thinking, you know, what needs to come on for you to, hit that growth into 2029?

Yeah, sure. I can take that. We've got a few assets ramping up. There's some newer assets too. You know, Shelton mentioned the Akata silver mine. That is literally ship concentrate for the first time this week. That'll be ramping up into 2026. There are other assets, you know, obviously adding Monero, Florida, small addition, 3Q, Johnson, Campbell, ramping up. Montage is building Kone, which will be additive to that outlook. But there's also, we expect production increases from some of the operating mines. We expect, after a lower year next year from those parks, that to start building back up again. We expect increased volumes from RV flats, although incremental. Same with Beta Hunt. West Gull has been very public with an expansion to Beta Hunt to 2 million tons per annum, which is on track. all of those additions build up to the outlook number. So there isn't one specific asset that drives that increase. It's actually nicely diversified across a large suite of well-positioned assets.

Great, thanks. And then maybe one last question. The 2025 geos, the gold-silver ratio you've used is 85 to 1 in terms of the calculation to geos converting silver into gold. I just want to confirm, you know, silver has actually outperformed a little bit compared to gold into 2025. That benefits triple flagged. Am I correct in the sense that I think there's a good percentage of your revenue actually coming from silver? That's number one. Number two, it also benefits your geo calculation, if I'm not mistaken, if you can confirm that as well. And then third, when do you consider, I guess, changing that ratio or You know, I guess it's not too late in 2025. It's not needed in 2025. But how do you consider that into 2026?

Hey, Kaz, this is Sheldon. I'll take that. You know, 85 to 1, that's pretty close to what it is right now. Obviously, it's volatile. It moves around. It's been various places during the year. I think year to date, and you're right, obviously, as the silver price is stronger relative to the gold price, that helps GEOs and the opposite when the opposite occurs. The year as a whole, we've actually had a bit of a headwind on the average silver price because it's just the timing of when the silver price ran. And I think that's come across in ourselves and all our peers. We always make an allowance for that. We're pretty conservative when trying to set our guidance. And so we just accommodated that within our production. Right now it's coming in line. And in terms of assessing it, I mean, we just, every time we put out a, uh a new new guidance or anything like that we we look at what the current gold silver ratio is and make sure we're not uh too far out of line and uh and that is properly conservative um obviously when we do our 2026 guidance we'll look at what the conditions are at that time and um and and you know react accordingly yep sounds like a good plan i guess the important part sheldon as you mentioned is that you're now aiming for the top end of guidance so for 2020 that's right

Perfect.

Gold, silver prices all the way through.

Yep. Amazing. Thanks, Sheldon, then Ivan and James for answering all my questions and congrats on a solid Q3.

Hey, thanks, guys.

At this time, we have no further questions. I will now turn the call over to Sheldon Vander Quay for closing remarks.

Yeah, thanks, everyone. Q3 was another good quarter, and we're actually having just a great year in 2025. Really appreciate the support from all of our investors. Thank you all. Bye.

Ladies and gentlemen, this concludes today's conference call. You may now disconnect your lines. We thank you for your participation. Have a pleasant day.