Triple Flag Precious Metals Corp. Common Shares

Ladies and gentlemen, thank you for standing by. My name is Angela 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 2026 conference call. I'd like to remind everyone that this call is being recorded and that 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 1 in your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question, press star 1 again, thank you. I would now like to turn the call over to Mr. Sheldon Vanderkooy, Chief Executive Officer and Director. Please go ahead.

Thank you, Angela. Thank you for joining us to discuss Ripple Flag's second quarter of 2026 results. With me on the call this morning are Eban Bari, our Chief Financial Officer, and James Dendle, our Chief Operating Officer.

This quarter marks a milestone for our company.

Triple Flag is entering its second decade, and we are doing so with the strongest organic growth profile in our history and a clear track record of compounding shareholder value. H1 was the strongest six months in the history of our company. Q2 was another strong quarter. We sold nearly 29,000 EEOs, we generated $117 million of adjusted EBITDA, and we delivered operating cash flow per share of $0.54, up from $0.38 in Q2 of last year. This represents 42% growth in cash flow per share, with our high margin, top line exposure to gold and silver prices translating directly into per share cash flow. June was a milestone month for TripleFlag. In the span of two weeks, we announced three important developments. First, we reached the settlement agreement with Step Gold that fully resolves all our outstanding disputes. We received all obligations and arrears on signing, and we have secured guaranteed fixed gold deliveries over the next 10 years, along with long-term exposure to production from the ATO mine. We initially invested $28 million in Step and have already received over $60 million of returns to date. in addition to the over 34,000 ounces of gold to be delivered over the next 10 years. Second, we announced and closed the acquisition of a $440 million gold stream on the Ravenswood Gold Mine in Queensland, Australia. This is a cornerstone addition to our portfolio that delivers immediate cash flow from a large-scale, long-life, low-cost operation to first deliveries received in July of this year. And third, On the strength of these two developments, we increased our 2026 GEO guidance to 100,000 to 110,000 ounces and raised our 2030 outlook to 150,000 to 160,000 GEOs. Q2 was also a fantastic quarter for demonstrating the organic growth driven by mine development and mine life extension. In May, Agnico Eagle announced a positive construction decision at Holt Bay A milestone that we have pointed to for several quarters and one that firmly anchors our growth beyond 2030, so look. At North Parks, the E48 sub-level cave is ramping up and its growth plans continue to advance, including a mill expansion study to 10 million tons per annum. But at Arthur, feasibility work and drilling are underway on a world-class greenfield deposit following the pre-fees released earlier this year. Finally, an important part of our capital allocation strategy remains returns to shareholders. We are pleased to announce our fifth consecutive annual increase of our dividend since we listed in 2021, which now equates to an annualized dividend of $0.24 per share. Additionally, we repurchased $20 million of shares in the open market during the quarter, taking advantage of the opportunity presented by the markets. I will now turn it over to Eban to discuss her financial results for Q2 2026.

Thank you, Sheldon. As Sheldon highlighted, we have a very strong quarter, with the portfolio producing 28.7 thousand GEOs, resulting in the first half of nearly 59 thousand GEOs. This puts Triple Flag on track to achieve our increased 2026 gut. Across the chart, Adjusted EPS were up 62%, adjusted EBITDA was up 54%, and most importantly, cash flow per share was up 42% year over year. Operating cash flow per share is the metric that most directly compounds to shareholders over time, and our strong margins ensure that higher metal prices flow directly to our shareholders. This strong cash flow generation continues to support All are our capital allocation priorities. We view a progressively growing dividend as a core part of our capital allocation strategy, and one that's sustainable across all metal prices. Our dividends have now been increased to 24 cents on an annualized basis, up 4% from prior dividends. I'm proud that we've increased our dividends every year since our appeal. On buybacks, we have said that we view our shares as being undervalued. and we acted on that V this quarter, repurchasing $20 million worth of shares in the open market. The NCIV remains an active part of our shareholder return strategy and we will continue to be opportunistic. Lastly, I would like to comment on our balance sheet. Despite deploying $440 million on Ravenswood acquisition, $20 million on share buybacks in our normal courage dividend, we exited this quarter with over $1.1 million We funded Grayson's Wood with cash on hand and drawings from our revolving credit facility and giving cash generating power to our business. With over $100 million worth of operating cash flow this quarter alone, we expect to repay this facility rapidly during 2027 based on current metal rent. Overall, strong balance sheet, robust operating cash flows, and total liquidity over $1.1 billion give us the capital to continue deploying dollars into creative opportunities to drive future growth for the benefit of our shareholders. With that, I will turn it over to James to walk you through Ravenswood, Pompeii and our roof pipeline.

Thank you, Eban. Starting with Ravenswood, where we hold 5.5% adultery. The mine's left is Queensland's largest goldmine and the top ten Australian goldmine by all reserves. There are several attributes particularly like that to transactions. First, this is a producing, proven operation. Ravensworth has been in continuous production since 1987 and its producer formally announces its goals in its discovery. Upstream generates cash flow immediately, with 3% interest having commenced in Q3. Second, The asset offers a tranquil scale to mine life and costs. The expansion completed in 2023 supports growth in annual production to more than 200,000 ounces with the operation ramping towards that level by 2028, while sitting in the lower half of the global cost curve. Third, the mineral endowment is extensive and the exploration is compelling. Since 2020, roughly 800,000 ounces of reserve additions outpaced 600,000 ounces of depletion. with multiple in-pits and near-mine targets adjacent to the Buck Reef West and Southfield Lowland Pits. Moving to Hope Bay, we hold a 1% NSR royalty on this Agnico Eagle project in Melbourne. In Lake Bay, Agnico Eagle announced a part-tip construction decision. A company study contemplates 6,000 tonnes a day and Greg Operation producing 400 to 435,000 pounds of gold per year over an initial 11-year life mine. First production is expected in 2030. What makes Hope Bay particularly exciting is what the initial plan is at. The 11-year mine life incorporates only about half of the declared mineral resource, 55% of the measured and indicated and 48% of the inferred. Agnico has over 90 regional targets across a highly prospective 80-kilometer greenstone belt with 700,000 pieces of drilling planned over the next five years. This includes drilling up the Boston Deposit, which is not included in the DEA, and is located 50 kilometers south of the Drift Deposit. Hope Bay has the potential to develop into a multi-decade district-scale mine camp. and Agnico's decades of proven Arctic operating experience and established logistics roots make them the ideal operators to realize its potential. Finally, I want to discuss some of the assets that will drive further growth beyond our 2030 outlook. This should provide a clear view to our shareholders of what will become core of paying assets at triple-flag. ARCA, ComEdge, Topeb, NordPass and WorldClass, long-life assets, located in established mining jurisdictions. At Arthur, a pre-feasibility study was released in February forming the basis of permitting to commit to 2027. The current nine-year life of mine is the beginning of a much longer life. Anglo Gold has described the study as top of the iceberg, noting that Arthur is a marquee asset that will anchor Anglo Gold's portfolio into the 2050s. At KMS, Triple Flag holds a 100% silver streak. The 2026 PEA supports a large-scale copper-gold-silver operation, reaching production by 2031, leveraging existing ground-field infrastructure, but service from previous mining operations. The PEA mine plan represents only 47% of the total resource tons, providing upsides for further answers to be included in an upcoming PFS in mid-2027. As I mentioned, we expect to have base connected production in 2030 with a ramp up thereafter. And finally, North Park is Triple Flag's largest asset. Numerous growth projects have recently been approved by Evolution, which will unlock value for a world-class copper and gold diamond, including the E22 blockade, the E44 gold open pit, with minimum delivery guarantees, and most importantly, a potential world expansion to at least 10 billion tons per annum. The latter two of which are currently being studied over the next year. We believe that the mill extraction is the optimal path to unlock value from not only the 625 million tons of total current resources, but other prospective underexplored targets that could virtually add to the production profile, increase scale, and processing optionality. Taken together, these four assets are diversified across long-life district-scale systems in Nevada, British Columbia, and Australia. And they were all operated by high-quality counterparties, representing the foundation to serve organic growth beyond 2030. I'll now pass it back to Sheldon. Thank you, James.

Our business model generates shareholder value through reinvesting our robust cash flows into accretive additions to the portfolio. In the past 18 months, since the start of 2025, we have deployed over $900 million into new high-quality streams and royalties Trey Kravatis, Arkada Nizuka, Arthur, Minera Florida, the Johnson Camp and Gunnison Royalties, the North Park E44 Stream, and now Ravenswood. These are all high-quality assets operated by high-quality operating teams. The bulk of this capital has been deployed in Australia and the United States. We have deployed on attractive returns for our shareholders. Triple-side shareholders will benefit from these portfolio additions for decades to come. I'd like to close by stepping back and looking at what Triple Flag has created over its first decade. A portfolio of 242 streams and royalties, 36 of them producing, with purely exposure to Australia. We remain firmly focused on generating shareholder value. We have increased our GEO production every year since our 2016 founding. We have increased our dividend every year since our 2021 IPO. We are active buyers of our own shares. and management and the board remain founders and substantial owners of the company. Looking forward, the picture is even stronger. We had a strong first half with robots broke an operating cash flow per share and we delivered $550 million of transactions that will benefit our shareholders for decades to come. Our increased guidance calls for 100 to 110,000 EEOs this year, growing to 150 to 160,000 EEOs in 2030 from a de-risk pipeline that James just walked you through. And finally, we have over 1.1 billion of available liquidity to continue pursuing accretive opportunities over the remainder of the year and beyond. That concludes our prepared remarks. Operator, please open the floor to questions.

Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 and your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening by a loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. And your first question comes from the line of Cosmos 2 with CIDC. Your line is now open.

Hi, thanks Sheldon, Eban, and James, and congrats on a strong first half. Maybe my first question is on North Parks. James, you kind of touched on it, but the E44 development study is expected by the end of June 2027. You know, still some time away, but is there any kind of progress or any kind of updates, at least on that study, that it can provide to us?

Because I obviously can't get too far ahead on the studies, but I think it's important to highlight that there's a number of things happening in North Park. Evolution has recently approved a course-partners location project in Ebot and I think in the first one that opens up capacity. And then there's the two big milestones or developments in conjunction with that of one, the development of the E22 block A, which is the next kind of frontier of mining at North Park. in conjunction with the expansion of the mill. And the base expansion of the mill is 10 million tons, but it could be higher than that, and that's precisely what evolution is studying at the moment. So that works on going and has been capital allocated towards those studies. So we look forward to seeing the results of that next year. And then E44 is relatively straightforward from a study point of view. It's a reasonably well-defined overhead pit. that really requires, you know, ore mining and then treatment in conjunction with the other ore feeds. So the study under that is quite straightforward. So, you know, I think that the focal point for us will be seeing, you know, how they have an expenditure done in the mill next year.

Great. That's great to hear. Maybe, you know, sticking with Australia, Ravenswood, good to see, you know, the first monthly delivery was received successfully. in July 2026. So can I take it that I guess Q3 is going to be a normal sort of quarter or is there still some kind of ramp up factors that, you know, we should be aware of? As you mentioned during the acquisition presentation, a normal quarter will be 2300 to 3300, you know, geos per quarter. So again, is it Q3 going to be a normal quarter or is there any factors that we should still consider?

It will be ramping up because there are capital projects going on to open up the Southfield Floating Pits and then that scales up to 200,000 X plus run rates up to 2028. During that period it will be relatively normal but there's a ramping profile for that asset.

Maybe switching gears a little bit, Cyril Lindo, it's been a great asset for Triple Flag. But now there's been a step down that happened in April. You know, Fairland is one of your larger silver, you know, streams. I guess my question is, you know, with that sort of coming down and a bit of a, you know, decrease in silver, at least contribution wise, are you still happy, Sheldon, with your, you know, gold, silver, copper and other mix as it stands today?

Yeah, thanks guys. The bottom line is we are happy. We're a precious metals company and we're always looking for high quality gold, high quality silver exposure and we think we have that in spades. We long anticipated the Cerro Lindo step down and as you pointed out, hitting the step down is a sign of success and Cerro Lindo remains a very substantial asset for Triple Flag going forward. It's still going to be one of our largest contributors. There are no further step-downs after this. You know, Cerro Lindo is even looking at putting new capital into that project. So, that's great. We benefit from that. And in terms of silver exposure over the longer term, I mean, we have Cerro Lindo. We have Veridica. We actually got quite a bit of silver out of North Park. That's fantastic. We have things like Arcata and Azucar, which are silver. And, you know, we've highlighted Chemest as well. You know, so that's silver exposure as well. So, there's still a lot of silver in the portfolio. Great.

And then maybe one last question, you know, likely for Eban, but going through your income statement, I noticed that taxes were fairly low, slightly over a million dollars. GNA was also very fairly low, 3.8 million, whereas first half totaled, you know, closer to 10 million. So, you know, decrease from Q1. So I guess, you know, Eban... What's the sustainable rate here? Is this representative of what we can expect for the remainder of the year?

Thanks for the question. Our G&M largely was impacted by market on our share price. Has a pretty significant impact on the DSUs, RCUs, and so forth. Our run rate is, you know, essentially based on what we've got into the market, which is about 30 to 32%. So on a quarterly basis, we expect, assuming all things being equal, we expect $78 million worth of S&As for the quarter. With respect to tax being lower, you know, it's a combination of tax benefits due to the share price increases, right, you get a benefit, as well as marked market on some of our prepays. So for these are our recoveries, essentially, that's Our cash taxes remain pretty consistent.

Yeah, it's kind of funny, Eban, you know, talking about the benefits because the share price decreased. So for you, I hope that you pay more taxes because that means the share price is going up. But again, those are all the questions I have. Thanks for answering all my questions and congrats again on a very strong first half. Thanks, Pastor.

Your next question comes from the line of Josh Wolfson with RBC Capital Markets. Your line is now open.

Thank you very much. Just sort of two quick ones. The first question is on Prisca. It sounds like the operator there is moving forward towards construction, commencement. You know, how should we think about the stream option? I guess also, you know, when could we expect that to be exercised, if it's exercised, and what would be the timelines for funding? Thank you.

Josh, I can answer that. Just remembering that when we entered into the stream transaction, the development plan was the secret part of the all-body, there's an upper zone and a deeper zone. and the Deeper Zone is the lion's share of the economics, from 95% of the value. So the stream is predicated on getting the Deeper Zone into production. The company has subsequently reorientated the development of the asset, doing it in a more of a staged manner, which actually is a very appropriate way of developing an asset for a developing company. So all that to say, we still have the opportunity The right but not obligation to fund the stream. The asset looks great. Glencore has come in with a very considerable financing to get them off the ground. But our focus is still on the deeps. So when the company moves towards an investment decision on the deeps, which we expect to be next year, we'll look to do a valuation and presumably invest the stream at that time. But all the times we have at the moment are great. The economics of our stream are very robust. and I think, you know, having a supportive capital provider alongside us in Glencore is good. It's also in the project and it provides capital, you know, capital to get the project up and running and fully develop these things.

Okay, thanks. And then, I know it's, you know, a pretty small contributor today. You know, the release talks about phase two. Is there any, you know, Goalposts that can be provided in terms of what production could look like when it's expanded?

Yeah, there's been numerous expansion options there, Josh. You know, Phase 2 essentially doubles, but there's an option to triple it from current levels. It has not been fully determined as to how large the production rate goes. There are options to take it even beyond the triplet of current levels. Our investigation predicated on the mine running at the currently inflated about 25,000 tons. So anything beyond that is going outside for us.

Great. Those are all my questions. Thank you.

The next question comes from the line of Fahad Tariq with Jeffrey. Your line is now open.

Hi, thanks for taking my questions. I wanted to come back to Ravenswood. In the second half of the year, can you just remind us if that's factored into the 2026 guidance or – and I think I may have missed this, but is it fair to assume the low end of the quarterly deliveries at 2,300 ounces per quarter in the third or fourth quarter of this year? Thanks.

Hi, Eban. It's Sheldon, and I'll answer that. We've updated our guidance to say we're looking at the top half of our updated guidance. So, you know, the top half of that 100 to 110. And that does include the Ravenswood stream as well.

Okay, got it. And then maybe just switching gears one for Eban.

On the balance sheet, I noticed the cash balance obviously came down just because of the transaction and the buybacks.

But can you just remind us like minimum cash balance that the company typically targets?

Going forward. Thanks. We generally, we're a business that we don't really need a whole lot of money to maintain the business. We generally try and limit how much cash we don't want to balance you, just given we've got a facility that's wrong. So for us, about $150 million is probably the right number.

Okay. Sounds good. That's it for me. Thank you. Anytime.

Your next question comes from the line of Tanya Jokuskonek with Scotiabank. Your line is now open.

Oh, great. Good morning, everybody. Thank you so much for taking my questions. Maybe just to finish off on Outlook for the second half of the year, just that, you know, Gerolindo stepped down, so that's occurring. We've got then Ravenswood Production, you know, starting to contribute. How should we think the rest of the year with respect to Q3 and Q4? Originally, it had been that the first half was supposed to be higher than the second half, but how should I be thinking about the second half in Q3 and Q4?

Yeah. Hi, Tanya. This is Sheldon. You know, we obviously have our, you know, H1s to date and we have our full year guidance. And so, you know, if you're looking for the split between Q3 and Q4, there's no real big differences we're seeing between the quarters. But, again, we don't give quarterly guidance, so it's really the annual guidance and working towards that annual figure we give in the market.

No, it's just more with Q3 and Q4. Like, if there's not that much difference, that's fair enough. Okay. Maybe my next question, if I could, was to come back to James when you talked about those four key assets beyond 2030. You know, you can quickly do the math on, you know, Hope Bay and Arthur Gold and see that contribution. So as you think about beyond 2030, you've got that 150,000 to 160,000 GEOs. Are we looking with the remaining two getting closer to 200,000? Like, is it? Something in the 20,000 to 50,000 ounce range that these additional amounts of will contribute.

Yeah, I mean, obviously, Tanya, in defining the outlook, we're focused on the assets that we think have a clear line of sight contributing in that time frame. Of course, there are other development stage projects that are earlier and You know, at a study level and need a few things to happen before they could contribute. But they certainly have studies that could show contributions that were built, you know, above the outlet range. But, you know, we're always reluctant to include those in our outlook until we gain confidence. You know, I think one of the other big variables is North Parks. There's a lot of potential to add incremental gold to North Parks, particularly given the increased processing capacity and the way that and Volusion is looking at gold-only mineralization of that property. You know, of course, beyond the E44, we don't have a great hindsight on that right now because there's still work to be done. But look, I think E44 will certainly continue far beyond the minimum deliveries. The life of our pet is likely, you know, at least double or triple the minimum delivery content. I'm very confident that to the unexpected additions to that profile. And then, of course, as we see projects become more solid from a permitting and capital provision perspective, we'll add those to the profile too. And, you know, we expect that to stack on top of, you know, the numbers we've shared.

Yeah, I'm just really interested, James, in these four. Like, what could these four contribute?

Well, yeah, I mean, you could put the studies together, Tanya, and I think there's probably quite a bit more that Arthur could contribute beyond the PFS. You know, I think Hope Verde has a great deal of potential over and above the 400 to 455,000. I think in the mid-2030s, that could be a much bigger number. You know, I think KMS could go for longer, but the The annual outputs are probably, you know, fairly fixed by the study, but I really think it's Arthur and Tope that have the greatest potential to grow annual production above the numbers we have today.

Yeah, that's about 15,000 GEOs. I don't know what the other two would contribute. Sorry, I just ran out. So, greater than 15,000. Okay, my next question then comes back to just maybe, Eban, how are we handling? Just how should I think about the capital return from your share buyback versus your dividend? You know, you bought back 20 million this quarter. Should I be thinking that, you know, if we were to stay in this share price range? that you will continue the share buyback?

Yeah, Tammy, thanks for the question. You know, we raised our dividend, and NCIV is part of our broader capital allocation strategy, and we look at that along with deals that we're working towards and moving down the pipeline. So, we'll be active on the market opportunistically. and we'll step in when you see value. So that's pretty much it. We've got a program in place and we'll exercise discretion as we see fit.

Okay. And I guess my final question then is just on the transaction environment. Maybe just kind of review if Anything in that has changed. We talked about it last quarter. It was in the $100 to $500 million range. It was mainly in asset builds and maybe some third-party royalty transactions. So where are we on this now? Has anything changed? Has the structure of some of the deals changed? Anything for us to be aware of?

Hi, Donnie and Sheldon. I'll take that one. Really, it's remarkably the same, and you've seen how much we've managed to deploy over the last 18 months, and I would say the pipeline right now seems as robust as it's ever been. That transaction range that you cited, I think is still pretty accurate, that 100 to 500, but we're also seeing some transactions that would even be larger than that. Also comments on jurisdictions. I'd say generally what we're seeing are jurisdictions that shareholders would generally be comfortable with. So anyway, we're still active. The Corp Dev team is busy and we're going to see what we can do.

And Sheldon, are they mainly in gold or are you seeing some silver transactions as well?

You know, it's really a mix of metals, you know, including like, you know, I'd say predominantly gold, you know, There's some silver as well. There's probably some non-precious that might be attractive as well. But the bulk of what we're looking at really falls into that precious metals, again, right down the fairway of what our shareholders are looking for.

Sheldon, you said non-precious as well. Is that something like you're looking at beyond gold and silver and non-precious?

I mean, like... We have a long list of things we look at, and there are some non-precious. And we've done that before, right? Like, Troika Batis has been a fantastic investment for us. You know, and so we'll look at that on a very opportunistic basis. We're never going to take the portfolio away from being like a 90% gold and silver portfolio. Okay. All right.

Thank you so much for taking my question, and good luck.

Thanks, honey.

Again, if you would like to ask a question, please press star 1 in your telephone keypad to raise your hand and enter the queue. And your next question comes from the line of Brian MacArthur with Raymond James. Your line is now open.

Hi, good morning, and thank you for taking my questions. Most of them have been answered. But can I just ask about Impala? I mean, you got $10.5 million this quarter. I'm not as familiar with that asset, but it's ramped, you know, it's changed over the last number of years. But that got significant versus any other time period and, you know, the gold price is down over Q1. Is that a normal run rate going forward? Is something changed there or was there a catch-up or how should I think about that going forward?

Ryan, thanks. I'll take that question. So typically Impala is being pretty consistent on a quarter over quarter. I think what you're probably seeing this quarter is one of the last deliveries slipped into Q2 from Q1. That's probably why Q2 is a little bit higher than the prior quarters. But typically they're pretty consistent in terms of quantum of the deliveries.

More generally though, Brian, there is a You can expect to see slightly higher deliveries coming out of the steel drifts mining area in the next year or two. The companies will be very public about increasing gap in that mine, not hugely, but there is an uptick from the current level perspective.

Right. But if I was sort of just to look at, so divide by two over the six months and have a bit of a ramp and adjust to the gold price is how I should think about it. Great. Thanks very much.

Thanks, Brian.

That concludes our question and answer session. I will now turn the conference back over to Mr. Sheldon Vanderkooy for closing remarks.

Thank you, Angela. And thanks, everyone, for dialing in to our call. We've had a very strong start to the year, and we're looking forward to continuing the performance over the back half of the year. Thank you all for attending. Bye.