Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Triple Flag Precious Metals (TFPM) - TFPM currently holds a Momentum Style Score of B, indicating potential as a solid momentum pick [3][12] - The company has a Zacks Rank of 2 (Buy), suggesting strong performance potential [4][12] Price Performance - Over the past week, TFPM shares increased by 0.82%, while the Zacks Mining - Gold industry declined by 3.08% [6] - In the last month, TFPM's price rose by 13.43%, outperforming the industry's 13.19% [6] - Over the past three months, TFPM shares have risen by 27.6%, and by 28.31% over the last year, compared to the S&P 500's performance of -5.55% and 13.72%, respectively [7] Trading Volume - TFPM's average 20-day trading volume is 455,324 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, 5 earnings estimates for TFPM have been revised upwards, while 1 has been revised downwards, leading to an increase in the consensus estimate from $0.70 to $0.76 [10] - For the next fiscal year, 4 estimates have moved up and 1 has moved down during the same period [10]

Core Insights - The article compares Newmont Corporation (NEM) and Triple Flag Precious Metals (TFPM) to determine which stock offers better value for investors [1] Valuation Metrics - Both NEM and TFPM currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3] - NEM has a forward P/E ratio of 12.69, while TFPM has a forward P/E of 27.43 [5] - NEM's PEG ratio is 0.89, suggesting it is undervalued relative to its expected EPS growth, whereas TFPM's PEG ratio is 1.07 [5] - NEM's P/B ratio is 1.82, compared to TFPM's P/B of 2.43, indicating NEM is more favorably valued in terms of market value versus book value [6] - Based on these valuation metrics, NEM is assigned a Value grade of A, while TFPM receives a Value grade of D [6] Conclusion - Despite both companies having solid earnings outlooks, NEM is identified as the superior value option based on the discussed valuation figures [7]

Group 1 - The core viewpoint is that Triple Flag Precious Metals (TFPM) has significant upside potential, with a mean price target of $27.81 indicating a 32.8% increase from its current price of $20.94 [1] - Analysts have set 11 short-term price targets for TFPM, ranging from a low of $19 to a high of $36.50, with a standard deviation of $6.24, suggesting variability in estimates [2] - The consensus among analysts indicates that TFPM is expected to report better earnings than previously estimated, which historically correlates with stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for TFPM's current year earnings has increased by 12.3% over the past month, with five estimates revised upward and no negative revisions [12] - TFPM holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [13] - While price targets are often viewed skeptically, the direction implied by these targets can serve as a useful guide for potential stock movements [10][11]

Core Viewpoint - Newmont Corporation (NEM) is currently viewed as a superior value option compared to Triple Flag Precious Metals (TFPM) based on various valuation metrics and earnings outlook [1][7]. Valuation Metrics - NEM has a forward P/E ratio of 14.60, while TFPM has a forward P/E of 29.68 [5]. - NEM's PEG ratio is 1.02, indicating a favorable earnings growth outlook compared to TFPM's PEG ratio of 1.16 [5]. - NEM's P/B ratio stands at 2.12, compared to TFPM's P/B of 2.56, suggesting NEM is more undervalued relative to its book value [6]. Earnings Outlook - NEM has a Zacks Rank of 2 (Buy), indicating an improving earnings outlook, while TFPM has a Zacks Rank of 3 (Hold) [3][7]. - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, which supports NEM's favorable position [3]. Value Grades - NEM has been assigned a Value grade of B, while TFPM has a Value grade of D, further highlighting NEM's stronger valuation profile [6].

Financial Data and Key Metrics Changes - The company reported record annual operating cash flow of $214 million for 2024, benefiting from a rising metal price environment and strong performance [4][11] - The average gold price in 2024 was less than $2,400 per ounce, which is $500 lower than spot prices, indicating potential for increased cash flows at higher prices [10][21] - The company paid out over $43 million in dividends in 2024, reflecting a 5% increase, marking the third consecutive increase since the IPO [12] Business Line Data and Key Metrics Changes - The company achieved record GEOs (Gold Equivalent Ounces) of 113,000 ounces in 2024, representing an eighth consecutive year of growth [4][5] - Cerro Lindo saw a 24% year-over-year increase in GEOs due to higher grades and improved plant efficiency [7] - Camino Rojo achieved record production of 137,000 ounces, exceeding initial guidance by 19% [8] Market Data and Key Metrics Changes - The company expects GEO guidance for 2025 to be between 105,000 and 115,000 ounces, primarily from precious metals [13] - The company has a compound annual growth rate of approximately 20% in GEOs since 2017, with further growth projected to 135,000 to 145,000 GEOs by 2029 [15] Company Strategy and Development Direction - The company plans to reinvest cash flows into streams and royalties, including the recent $28 million acquisition of the Tres Quebradas Royalty, which is expected to provide near-term cash flow [6][20] - The strategy focuses on acquiring quality assets in favorable regions and generating cash returns for shareholders [22][23] - The company maintains a debt-free balance sheet with over $700 million available for new transactions [22] Management's Comments on Operating Environment and Future Outlook - Management expressed a strong and positive outlook for 2025, emphasizing a growing cash flow per share profile and plans for continued dividend increases [21][56] - The company acknowledges ongoing challenges with illegal miners at the Buritica asset but remains optimistic about its future production and investment [36][37] Other Important Information - The company has a robust pipeline of opportunities, with a focus on transactions in the $100 million to $300 million range, primarily in precious metals [39][40] - The acquisition of the Tres Quebradas Royalty is seen as a counter-cyclical opportunity to expand exposure to a well-capitalized mining project [20] Q&A Session Summary Question: Inquiry about revenue from Bonaco and Agdal Stream - Management indicated that true-ups are a small contribution and do not provide asset-specific guidance [26][28] Question: Status of El Mochito asset - Management confirmed that deliveries have restarted and it is not critical for meeting future guidance [32][33] Question: Update on Buritica asset and illegal miners - Management stated that Zijin is effectively managing the situation, and the mine is currently producing [36][37] Question: Transaction sizes and focus areas - Management confirmed a mix of development and producing assets in the pipeline, with a focus on precious metals [47] Question: Corporate transactions and potential syndication - Management is open to syndication for larger transactions but prefers to avoid over-concentration in the portfolio [49][51] Question: Dividend policy and cash balance - Management indicated a progressive dividend policy with expectations for annual increases, while maintaining a low cash balance for operations [56][58]

[Consolidated Financial Statements](index=1&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's comprehensive financial position, performance, and cash flows [Management's Report on Internal Control Over Financial Reporting](index=2&type=section&id=Management%27s%20Report%20on%20Internal%20Control%20Over%20Financial%20Reporting) Management concluded the company's internal control over financial reporting was effective as of December 31, 2024, a finding also audited by PwC LLP - Management concluded that the Company's internal control over financial reporting is **effective** as of **December 31, 2024**[4](index=4&type=chunk) - The effectiveness of internal control was audited by PricewaterhouseCoopers LLP[5](index=5&type=chunk) [Report of Independent Registered Public Accounting Firm](index=3&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PwC issued an unqualified opinion on financial statements and internal controls, noting mineral interest impairment as a critical audit matter - PwC issued an unqualified opinion that the consolidated financial statements present fairly, in all material respects, the financial position, performance, and cash flows in conformity with IFRS[8](index=8&type=chunk) - PwC also opined that the Company maintained, in all material respects, **effective internal control over financial reporting** as of **December 31, 2024**[8](index=8&type=chunk) - A critical audit matter involved the assessment of indicators of impairment of mineral interests, due to significant judgment required from management and a high degree of auditor judgment, subjectivity, and effort[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets and liabilities decreased from 2023 to 2024, primarily due to reduced mineral interests and debt repayment Consolidated Balance Sheet Highlights (USD thousands) | Metric | 2024 | 2023 | Change (2024 vs 2023) | | :--------------------------------- | :--------- | :--------- | :---------------------- | | **Assets** | | | | | Cash and cash equivalents | $36,245 | $17,379 | +$18,866 | | Current assets | $75,645 | $57,038 | +$18,607 | | Mineral interests | $1,646,634 | $1,773,053 | -$126,419 | | Total Assets | $1,769,979 | $1,894,464 | -$124,485 | | **Liabilities** | | | | | Current liabilities | $27,126 | $17,315 | +$9,811 | | Debt | $— | $57,000 | -$57,000 | | Total Liabilities | $34,259 | $83,723 | -$49,464 | | **Equity** | | | | | Total Shareholders' Equity | $1,735,720 | $1,810,741 | -$75,021 | - Total Assets decreased by **$124.5 million**, from **$1,894.5 million** in 2023 to **$1,770.0 million** in 2024, primarily driven by a decrease in mineral interests[20](index=20&type=chunk) - Total Liabilities decreased by **$49.5 million**, from **$83.7 million** in 2023 to **$34.3 million** in 2024, largely due to the repayment of **$57.0 million** in debt[20](index=20&type=chunk) [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) The company reported a net loss in 2024, primarily due to increased impairment charges, despite higher revenue Consolidated Statements of Income Highlights (USD thousands, except per share) | Metric | 2024 | 2023 | Change (2024 vs 2023) | | :------------------------------------------ | :--------- | :--------- | :---------------------- | | Revenue | $268,991 | $204,024 | +$64,967 (31.8%) | | Gross profit | $155,210 | $102,076 | +$53,134 (52.1%) | | Impairment charges and expected credit losses | $(148,034) | $(36,830) | -$111,204 (302.0%) | | Operating (loss) income | $(17,984) | $40,932 | -$58,916 | | Net (loss) earnings | $(23,084) | $36,282 | -$59,366 | | Basic (Loss) earnings per share | $(0.11) | $0.18 | -$0.29 | - Revenue increased by **31.8%** to **$269.0 million** in 2024 from **$204.0 million** in 2023[22](index=22&type=chunk) - Impairment charges and expected credit losses surged by **302.0%** to **$148.0 million** in 2024, up from **$36.8 million** in 2023[22](index=22&type=chunk) - The Company reported a net loss of **$23.1 million** in 2024, compared to net earnings of **$36.3 million** in 2023, resulting in a basic loss per share of **$0.11**[22](index=22&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased significantly in 2024, while investing cash use decreased and financing activities shifted to an outflow Consolidated Statements of Cash Flows Highlights (USD thousands) | Metric | 2024 | 2023 | Change (2024 vs 2023) | | :------------------------------------------ | :--------- | :--------- | :---------------------- | | Operating cash flow | $213,503 | $154,138 | +$59,365 (38.5%) | | Net cash used in investing activities | $(81,960) | $(212,979) | +$131,019 | | Net cash (used in) from financing activities | $(112,600) | $5,123 | -$117,723 | | Increase (decrease) in cash and cash equivalents | $18,866 | $(53,719) | +$72,585 | | Cash and cash equivalents at end of the year | $36,245 | $17,379 | +$18,866 | - Operating cash flow increased by **38.5%** to **$213.5 million** in 2024, up from **$154.1 million** in 2023[23](index=23&type=chunk) - Net cash used in investing activities decreased by **$131.0 million**, from **$213.0 million** in 2023 to **$82.0 million** in 2024, primarily due to lower acquisition of mineral interests[23](index=23&type=chunk) - Financing activities resulted in a net cash outflow of **$112.6 million** in 2024, a significant shift from a **$5.1 million** inflow in 2023, driven by higher debt repayments (**$120.0 million** in 2024 vs **$73.0 million** in 2023) and increased dividends paid (**$43.3 million** in 2024 vs **$41.3 million** in 2023)[23](index=23&type=chunk) [Consolidated Statements of Changes in Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased in 2024, primarily due to a net loss and dividend payments, partially offset by stock-based compensation Consolidated Statements of Changes in Equity Highlights (USD thousands) | Metric | December 31, 2024 | December 31, 2023 | Change (2024 vs 2023) | | :-------------------------- | :------------------ | :------------------ | :---------------------- | | Share Capital | $1,744,341 | $1,749,180 | -$4,839 | | (Deficit) Retained Earnings | $(23,773) | $46,831 | -$70,604 | | Other | $15,152 | $14,730 | +$422 | | Total Equity | $1,735,720 | $1,810,741 | -$75,021 | - The Company recorded a net loss of **$23.1 million** in 2024, contributing to a shift from retained earnings to a deficit[24](index=24&type=chunk) - Dividends paid amounted to **$43.3 million** in 2024, slightly up from **$41.3 million** in 2023[24](index=24&type=chunk) - Share capital decreased by **$4.8 million**, influenced by NCIB purchases of common shares[24](index=24&type=chunk) [Notes to the Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed explanations and breakdowns for the figures presented in the consolidated financial statements [1. Nature of operations](index=10&type=section&id=1.%20Nature%20of%20operations) Triple Flag is a Canadian precious metals streaming and royalty company with a diversified global portfolio - Triple Flag Precious Metals Corp is a precious metals streaming and royalty company[26](index=26&type=chunk) - Revenues are largely generated from a diversified portfolio of properties in Australia, Canada, Colombia, Côte d'Ivoire, Mexico, Mongolia, Peru, South Africa, and the United States[26](index=26&type=chunk) [2. Basis of presentation](index=10&type=section&id=2.%20Basis%20of%20presentation) The financial statements are prepared under IFRS Accounting Standards, with no material impact from new standards in 2024 - Consolidated financial statements are prepared in accordance with IFRS Accounting Standards[27](index=27&type=chunk) - No new accounting standards effective **January 1, 2024**, had a material impact[27](index=27&type=chunk) [3. Summary of material accounting policies](index=10&type=section&id=3.%20Summary%20of%20material%20accounting%20policies) This section outlines key accounting policies for consolidation, revenue, financial instruments, and other critical areas [3a. Consolidation principles](index=10&type=section&id=3a.%20Consolidation%20principles) The consolidated financial statements include Triple Flag Precious Metals Corp. and its wholly owned subsidiaries - The consolidated financial statements include Triple Flag Precious Metals Corp and its wholly owned subsidiaries[29](index=29&type=chunk) Principal Subsidiaries at December 31, 2024 | Entity | Location | Ownership | | :-------------------------------- | :----------- | :-------- | | Triple Flag International Ltd. | Bermuda | 100% | | TF R&S Canada Ltd. | Canada | 100% | | TF Australia Holdings Ltd. | Canada | 100% | | Maverix Metals Inc. | Canada | 100% | | Maverix Metals (Australia) Pty Ltd. | Australia | 100% | | Maverix Metals (Nevada) Inc. | United States | 100% | [3b. Foreign currency](index=11&type=section&id=3b.%20Foreign%20currency) The company's functional and presentation currency is USD, with foreign transactions translated at prevailing exchange rates - The presentation and functional currency of the Company is the **United States dollar (USD)**[31](index=31&type=chunk) - Foreign currency transactions are translated using exchange rates prevailing on transaction dates, with gains/losses recognized in consolidated statements of income[32](index=32&type=chunk) [3c. Cash and cash equivalents](index=11&type=section&id=3c.%20Cash%20and%20cash%20equivalents) Cash and cash equivalents include cash on hand and short-term deposits with original maturities of 90 days or less - Cash and cash equivalents include cash on hand and short-term deposits with original maturities of **90 days or less**[33](index=33&type=chunk) [3d. Inventory](index=11&type=section&id=3d.%20Inventory) Inventory comprises precious metals valued at the lower of cost and net realizable value using a FIFO basis - Inventory comprises precious metals delivered under purchase and prepaid gold agreements, valued at the lower of cost and net realizable value, using a first-in, first-out basis[34](index=34&type=chunk) [3e. Mineral interests](index=11&type=section&id=3e.%20Mineral%20interests) Mineral interests are categorized as producing, development, or exploration assets, depleted based on recoverable resources and assessed for impairment - Mineral interests represent stream and royalty agreements, categorized as producing, development, or exploration stage assets[35](index=35&type=chunk) - Producing and development stage assets are recorded at cost and depleted based on attributable share of total estimated recoverable resources[35](index=35&type=chunk)[39](index=39&type=chunk) - Management assesses impairment indicators at each reporting period, applying significant judgment to factors like future production, commodity prices, and economic trends[42](index=42&type=chunk)[43](index=43&type=chunk) [3f. Income taxes](index=13&type=section&id=3f.%20Income%20taxes) Income tax expense includes current and deferred tax, recognized in the income statements, based on temporary differences - Income tax expense includes current and deferred tax, recognized in the consolidated statements of income[48](index=48&type=chunk) - Deferred tax is recognized for temporary differences between financial reporting and taxation amounts, measured at expected tax rates[49](index=49&type=chunk)[50](index=50&type=chunk) [3g. Revenue from contracts with customers](index=14&type=section&id=3g.%20Revenue%20from%20contracts%20with%20customers) Revenue is recognized at fair value upon transfer of commodity control to the customer for streams or unconditional right to payment for royalties - Revenue is measured at the fair value of consideration received or receivable from the sale of precious metals and/or receipt of mineral royalties[53](index=53&type=chunk) - For streaming and prepaid gold interests, revenue is recognized when control over the commodity transfers to the customer upon delivery[54](index=54&type=chunk) - For royalty interests, revenue is recognized when control over the commodity transfers from the mine operator to its customer, and the Company has an unconditional right to payment[55](index=55&type=chunk) [3h. Cost of sales excluding depletion](index=15&type=section&id=3h.%20Cost%20of%20sales%20excluding%20depletion) Cost of sales is recorded at the price paid to the operator under purchase agreements, including prepaid gold interests - Cost of sales excluding depletion is recorded at the price paid to the operator under the relevant purchase agreement, including inventory delivered under a prepaid gold interest[57](index=57&type=chunk) [3i. Financial instruments](index=15&type=section&id=3i.%20Financial%20instruments) Financial instruments are classified and measured at amortized cost, FVOCI, or FVTPL, with ECLs recognized for financial assets - Financial instruments are initially recognized at fair value and subsequently classified as amortized cost, FVOCI, or FVTPL based on the business model and contractual cash flows[59](index=59&type=chunk)[60](index=60&type=chunk) - Prepaid gold interests and equity instruments are classified as FVTPL, with fair value changes recognized in the consolidated statements of income[66](index=66&type=chunk)[67](index=67&type=chunk) - The Company recognizes loss allowances for expected credit losses (ECLs) on financial assets measured at amortized cost, applying a simplified approach for receivables and a general approach for loans receivable[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) [3j. Related party transactions](index=17&type=section&id=3j.%20Related%20party%20transactions) Related parties include subsidiaries and key management personnel, with intercompany transactions eliminated on consolidation - Related parties include subsidiaries and key management personnel, with intercompany transactions eliminated on consolidation[77](index=77&type=chunk) [3k. Earnings per share](index=17&type=section&id=3k.%20Earnings%20per%20share) EPS is calculated by dividing net earnings by the weighted average common shares outstanding, with diluted EPS reflecting potential dilution - Earnings per share is calculated by dividing net earnings by the weighted average number of common shares outstanding, with diluted EPS reflecting potential dilution from stock options using the treasury stock method[78](index=78&type=chunk) [3l. Segment reporting](index=18&type=section&id=3l.%20Segment%20reporting) The company operates and reports as a single operating segment focused on precious metals streams, royalties, and other mineral interests - The Company operates and reports as a single operating segment, focused on acquiring and managing precious metals streams, royalties, and other mineral interests[79](index=79&type=chunk) [3m. Stock-based compensation](index=18&type=section&id=3m.%20Stock-based%20compensation) The company offers equity-settled and cash-settled awards, measured at fair value and expensed over their vesting periods - The Company offers equity-settled (Stock Option Plan) and cash-settled (RSUs, PSUs, DSUs) awards to employees, officers, and Directors[80](index=80&type=chunk) - Equity-settled awards are measured at fair value using the Black-Scholes model at grant date, while cash-settled awards are re-measured to fair value at each reporting date[81](index=81&type=chunk)[83](index=83&type=chunk) - Costs for both types of awards are recorded over their respective vesting periods, with equity-settled awards impacting equity and cash-settled awards impacting liabilities[81](index=81&type=chunk)[83](index=83&type=chunk) [4. Critical accounting estimates and judgments](index=19&type=section&id=4.%20Critical%20accounting%20estimates%20and%20judgments) Financial statement preparation requires significant judgment and estimates for mineral resources, impairment, credit losses, and income taxes - Key estimation uncertainties include Mineral Resources and Reserves estimates, which impact depletion rates and recoverability of mineral interests[90](index=90&type=chunk)[91](index=91&type=chunk)[94](index=94&type=chunk) - Impairment assessments of mineral interests require significant judgment, considering factors like future production, commodity prices, and economic trends[95](index=95&type=chunk)[96](index=96&type=chunk) - Expected credit losses for loans receivable are based on assumptions about counterparties' repayment abilities, including production results, operating costs, and commodity prices[100](index=100&type=chunk)[102](index=102&type=chunk) - Income tax estimates involve interpreting tax laws and forecasting future taxable income, which can be affected by commodity prices and production[103](index=103&type=chunk)[104](index=104&type=chunk) - Business combinations and asset acquisitions require significant judgment in determining fair values, especially for mineral interests, involving estimates of reserves, metal prices, and discount rates[105](index=105&type=chunk)[106](index=106&type=chunk) [5. Adoption of accounting policies and newly enacted tax rules](index=22&type=section&id=5.%20Adoption%20of%20accounting%20policies%20and%20newly%20enacted%20tax%20rules) New IAS 1 amendment had no material impact, while future IFRS standards are being assessed; Canadian EIFEL rules had no material restrictions - Amendment to IAS 1 (Non-current liabilities with covenants) became effective **January 1, 2024**, with no material impact[107](index=107&type=chunk) - Narrow scope amendments to IFRS 9 and IFRS 7, and IFRS 18 (Presentation and Disclosures in Financial Statements) are issued but not yet effective (**2026** and **2027** respectively); the Company is assessing their impact[108](index=108&type=chunk)[109](index=109&type=chunk) - Newly enacted Canadian EIFEL tax rules, effective **October 1, 2023**, had no material restrictions on the deductibility of interest and financing expense for the Company in **2024**[110](index=110&type=chunk) [6. Key developments](index=23&type=section&id=6.%20Key%20developments) Triple Flag completed several royalty and stream acquisitions in 2024, settled litigation, and acquired Maverix Metals Inc. in 2023 - Acquired a **0.5% GOR royalty** on the Tres Quebradas lithium project for **$28.0 million** (**December 2024**)[111](index=111&type=chunk) - Acquired **3% gold streams** on Agbaou and Bonikro mines for a total cash consideration of **$53.0 million** (**August 2024**)[112](index=112&type=chunk)[114](index=114&type=chunk) - Acquired an additional **1.0% NSR royalty** on the Tamarack project for **$8.0 million** (**July 2024**)[115](index=115&type=chunk) - Settled Kensington litigation, receiving **$6.75 million** in Coeur shares and amending royalty terms (**March 2024**)[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) - Acquired Maverix Metals Inc on **January 19, 2023**, for **$644.8 million**, accounted for as an asset acquisition, including **$587.8 million** in mineral interests[122](index=122&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) [7. Cash and cash equivalents](index=26&type=section&id=7.%20Cash%20and%20cash%20equivalents) Cash and cash equivalents significantly increased in 2024, driven by higher bank balances and short-term deposits Cash and Cash Equivalents (USD thousands) | As at December 31 | 2024 | 2023 | | :------------------ | :--------- | :--------- | | Bank balances | $25,205 | $17,340 | | Short-term deposits | $11,040 | $39 | | Total | $36,245 | $17,379 | - Total cash and cash equivalents increased by **$18.9 million** (**108.4%**) from 2023 to 2024[126](index=126&type=chunk) [8. Amounts receivable and prepaid expenses](index=26&type=section&id=8.%20Amounts%20receivable%20and%20prepaid%20expenses) Amounts receivable and prepaid expenses increased, mainly due to a rise in royalty receivables, including a litigation settlement Amounts Receivable and Prepaid Expenses (USD thousands) | As at December 31 | 2024 | 2023 | | :---------------------------------- | :--------- | :--------- | | Royalty receivables | $16,022 | $11,655 | | Prepaid expenses | $664 | $1,190 | | Value added tax recoverable | $267 | $228 | | Other receivables | $— | $652 | | Total | $16,953 | $13,725 | - Royalty receivables increased by **$4.4 million** (**37.5%**) from 2023 to 2024, including **$3.75 million** from the Kensington litigation settlement[127](index=127&type=chunk)[128](index=128&type=chunk) [9. Inventory](index=26&type=section&id=9.%20Inventory) Total inventory significantly increased in 2024, driven by higher volumes of both silver and gold credits Inventory (USD thousands) | As at December 31 | 2024 | 2023 | | :---------------- | :--------- | :--------- | | Silver credits | $1,986 | $533 | | Gold credits | $1,849 | $859 | | Total inventory | $3,835 | $1,392 | - Silver credits increased from **44,950 oz** in 2023 to **180,000 oz** in 2024, and gold credits increased from **1,073 oz** to **2,100 oz**[129](index=129&type=chunk) [10. Loans receivable](index=26&type=section&id=10.%20Loans%20receivable) Net loans receivable decreased substantially due to impairment charges against Nevada Copper and Elevation Gold loan receivables Loans Receivable (USD thousands) | As at December 31 | 2024 | 2023 | | :------------------------------------------ | :--------- | :--------- | | Convertible debenture – Gunnison | $1,784 | $1,638 | | Loan receivable – Elevation Gold | $— | $17,731 | | Promissory and demand notes receivable – Elevation Gold | $— | $6,490 | | Loan receivable – Nevada Copper | $— | $11,840 | | Total loans receivable (gross) | $1,784 | $37,699 | | Provision for expected credit losses | $— | $(9,723) | | Net loans receivable | $1,784 | $27,976 | - Net loans receivable decreased by **$26.2 million** (**93.6%**) from 2023 to 2024[131](index=131&type=chunk) - Impairment charges were recognized for Nevada Copper and Elevation Gold loan receivables, as there was no reasonable expectation of recovery[133](index=133&type=chunk) [11. Prepaid gold interests and investments](index=27&type=section&id=11.%20Prepaid%20gold%20interests%20and%20investments) Prepaid gold interests increased due to fair value gains and new agreements, while investments decreased due to fair value losses and disposals [11a. Prepaid gold interests](index=27&type=section&id=11a.%20Prepaid%20gold%20interests) Prepaid gold interests increased in 2024, driven by fair value gains and a new agreement with Steppe Gold Prepaid Gold Interests (USD thousands) | As at December 31 | 2024 | 2023 | | :---------------------- | :--------- | :--------- | | Auramet | $46,082 | $40,248 | | Steppe Gold | $3,457 | $— | | Total | $49,539 | $40,248 | - Prepaid gold interests increased by **$9.3 million** (**23.1%**) from 2023 to 2024[134](index=134&type=chunk) - The Company recognized a gain of **$14.3 million** in 2024 from changes in fair value of prepaid gold interests[134](index=134&type=chunk) - A new agreement with Steppe Gold Ltd in **March 2024** involved a **$5.0 million** cash payment for **2,650 ounces** of gold[136](index=136&type=chunk) [11b. Investments](index=28&type=section&id=11b.%20Investments) Investments decreased in 2024 due to fair value losses and disposals of various equity holdings Investments (USD thousands) | As at December 31 | 2024 | 2023 | | :---------------- | :--------- | :--------- | | Total Investments | $3,010 | $6,248 | - Investments decreased by **$3.2 million** (**51.8%**) from 2023 to 2024[20](index=20&type=chunk) - The Company recognized a loss of **$1.5 million** in 2024 from changes in fair value of investments[139](index=139&type=chunk) - Triple Flag disposed of various equity investments for cash proceeds of **$3.1 million** in 2024[139](index=139&type=chunk) [12. Mineral interests](index=29&type=section&id=12.%20Mineral%20interests) The carrying value of mineral interests decreased due to significant impairment charges, partially offset by new acquisitions Mineral Interests Carrying Value (USD thousands) | As at December 31 | 2024 | 2023 | | :------------------ | :--------- | :--------- | | Mineral Streams | $916,760 | $1,020,664 | | Royalties | $729,874 | $752,389 | | Total Carrying Value | $1,646,634 | $1,773,053 | - Total carrying value of mineral interests decreased by **$126.4 million** (**7.1%**) from 2023 to 2024[140](index=140&type=chunk) - Additions to mineral interests in 2024 totaled **$58.2 million**, largely from the acquisition of Agbaou and Bonikro streams and the Additional Tamarack Royalty[140](index=140&type=chunk)[141](index=141&type=chunk) - Impairment charges in 2024 amounted to **$107.0 million**, including **$83.9 million** for the Nevada Copper stream and **$18.7 million** for the Elevation Gold stream[140](index=140&type=chunk)[141](index=141&type=chunk) [13. Impairments of streams, royalties and other interests](index=31&type=section&id=13.%20Impairments%20of%20streams%2C%20royalties%20and%20other%20interests) Significant impairment charges and expected credit losses were recognized in 2024, primarily for Nevada Copper and Elevation Gold streams and loans Impairment Charges and Expected Credit Losses (USD thousands) | For the years ended December 31 | 2024 | 2023 | | :------------------------------------------ | :--------- | :--------- | | Mineral interest impairment charges | | | | Nevada Copper | $83,920 | $— | | Elevation Gold | $18,688 | $— | | Stornoway Diamonds (Canada) Inc. | $— | $8,448 | | Beaufor | $— | $6,836 | | Other | $4,438 | $— | | Loans receivable impairment charges and expected credit losses | | | | Nevada Copper | $20,197 | $— | | Elevation Gold | $21,380 | $9,723 | | Stornoway Diamonds (Canada) Inc. | $(589) | $11,720 | | Beaufor | $— | $103 | | Total impairment charges and expected credit losses | $148,034 | $36,830 | - Nevada Copper stream and loan receivables were fully impaired for **$104.1 million** in 2024 due to the operator filing for Chapter 11 bankruptcy and subsequent asset sale[151](index=151&type=chunk)[154](index=154&type=chunk)[156](index=156&type=chunk) - Elevation Gold stream and loan receivables incurred a total impairment and expected credit loss charge of **$40.1 million** in 2024 due to financial difficulties, lower production, and creditor protection filing[159](index=159&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk) - In 2023, Stornoway Diamonds (Canada) Inc stream and loan receivables were impaired for **$20.2 million** due to adverse market conditions and the mine being placed in care and maintenance[163](index=163&type=chunk)[165](index=165&type=chunk) [14. Amounts payable and other liabilities](index=34&type=section&id=14.%20Amounts%20payable%20and%20other%20liabilities) Amounts payable and other liabilities increased, primarily driven by higher accrued liabilities and stock-based compensation liabilities Amounts Payable and Other Liabilities (USD thousands) | As at December 31 | 2024 | 2023 | | :-------------------------------- | :--------- | :--------- | | Accrued liabilities | $14,792 | $13,630 | | Amounts payable | $2,846 | $628 | | Stock-based compensation | $4,923 | $811 | | Accrued interest | $529 | $597 | | Total | $23,090 | $15,666 | - Stock-based compensation liabilities increased by **$4.1 million** (**507.0%**) from 2023 to 2024[169](index=169&type=chunk) [15. Debt](index=34&type=section&id=15.%20Debt) Triple Flag fully repaid its debt under the Revolving Credit Facility in 2024, resulting in a zero balance and lower finance costs Debt Activity (USD thousands) | As at December 31 | 2024 | 2023 | | :------------------ | :--------- | :--------- | | Debt – opening balance | $57,000 | $— | | Drawdowns | $63,000 | $130,000 | | Repayments | $(120,000) | $(73,000) | | Debt - closing balance | $— | $57,000 | - The debt balance on the Credit Facility was reduced to **$nil** as of **December 31, 2024**, from **$57.0 million** in 2023[171](index=171&type=chunk)[173](index=173&type=chunk) - Finance costs related to debt decreased to **$5.5 million** in 2024 from **$7.2 million** in 2023[173](index=173&type=chunk) - The Company was in compliance with all covenants under its Credit Facility as of **December 31, 2024**[173](index=173&type=chunk) [16. Operating expenses by nature](index=35&type=section&id=16.%20Operating%20expenses%20by%20nature) Total general administration and business development costs increased slightly due to higher employee costs, partially offset by lower professional services Operating Expenses by Nature (USD thousands) | For the years ended December 31 | 2024 | 2023 | | :------------------------------------------ | :--------- | :--------- | | Employee costs | $16,144 | $14,533 | | Office, insurance and other expenses | $5,171 | $5,369 | | Professional services | $3,845 | $4,412 | | Total general administration and business development costs | $25,160 | $24,314 | - Employee costs increased by **$1.6 million** (**11.1%**) in 2024, including **$4.3 million** in stock-based compensation expense[174](index=174&type=chunk)[175](index=175&type=chunk) [17. Finance costs, net](index=35&type=section&id=17.%20Finance%20costs%2C%20net) Net finance costs increased in 2024, driven by a decrease in interest income despite reduced interest expense on debt Finance Costs, Net (USD thousands) | For the years ended December 31 | 2024 | 2023 | | :-------------------------------- | :--------- | :--------- | | Interest expense – debt and lease obligation | $5,618 | $7,322 | | Interest income | $(545) | $(3,200) | | Total finance costs, net | $5,073 | $4,122 | - Interest income decreased significantly by **$2.7 million** (**83.0%**) in 2024[176](index=176&type=chunk) [18. Commitments and contingencies](index=36&type=section&id=18.%20Commitments%20and%20contingencies) The company has various contractual commitments for metal streams and contingencies for potential upfront deposits and acquisition agreements [18.1 Commitments](index=36&type=section&id=18.1%20Commitments) The company has contractual commitments for per-unit cash payments on metal streams from various mineral interests - The Company has contractual commitments to make per unit cash payments for metal streams from various mineral interests, including Cerro Lindo (Silver), ATO (Gold/Silver), Gunnison (Copper), Buriticá (Silver), Impala Bafokeng (Gold), Northparkes (Gold/Silver), La Bolsa (Gold), La Colorada (Gold), El Mochito (Silver), Agbaou (Gold), and Bonikro (Gold)[177](index=177&type=chunk) - Prepaid gold interests include an agreement with Auramet for **1,250 ounces** of gold per quarter at **16%** of spot price[177](index=177&type=chunk) [18.2 Contingencies](index=37&type=section&id=18.2%20Contingencies) Contingencies include a potential upfront deposit for the Kemess Project and definitive agreements for new streams and royalties - A **$45.0 million** upfront deposit for the Kemess Project silver stream is contingent on a public construction decision, which has not yet been announced[183](index=183&type=chunk)[184](index=184&type=chunk) - Triple Flag entered a definitive agreement to acquire a **$35.0 million** precious metals stream from a South American counterparty, contingent on security agreements[185](index=185&type=chunk) - A definitive agreement to acquire a **0.5% GOR royalty** on the Tres Quebradas lithium project for **$28.0 million** is contingent on royalty registration[186](index=186&type=chunk) [19. Related party transactions](index=37&type=section&id=19.%20Related%20party%20transactions) Related party transactions primarily involve compensation for key management personnel and Directors, with a majority shareholder being Elliott Investment Management - Key management personnel compensation increased to **$16.1 million** in 2024 from **$14.5 million** in 2023[189](index=189&type=chunk) Key Management Personnel Compensation (USD thousands) | For the years ended December 31 | 2024 | 2023 | | :-------------------------------- | :--------- | :--------- | | Salaries and short-term employee benefits | $11,857 | $9,234 | | Stock-based compensation | $4,287 | $5,299 | | Total | $16,144 | $14,533 | - Triple Flag Mining Aggregator S.à r.l., controlled by investment funds advised by Elliott Investment Management L.P., owns a majority of the Company's common shares[188](index=188&type=chunk) [20. Stock-based compensation](index=38&type=section&id=20.%20Stock-based%20compensation) Stock-based compensation includes stock options, RSUs, PSUs, and DSUs, with varying expense and liability movements in 2024 Stock Option Activity | | 2024 Options | 2024 Avg. Exercise Price | 2023 Options | 2023 Avg. Exercise Price | | :----------------------- | :------------- | :----------------------- | :------------- | :----------------------- | | At January 1 | 3,957,362 | $13.17 | 3,032,771 | $13.00 | | Granted | — | — | 966,413 | $13.73 | | Exercised | (1,850,957) | $13.06 | — | — | | Forfeited | (542,938) | $13.37 | (41,822) | $13.35 | | At December 31 | 1,563,467 | $13.24 | 3,957,362 | $13.17 | - Stock-based compensation expense for stock options was **$0.4 million** in 2024, down from **$3.4 million** in 2023[193](index=193&type=chunk) - **197,688 RSUs** were awarded in 2024, with the RSU liability increasing to **$2.7 million** (2023: **$1.8 million**)[197](index=197&type=chunk) - **166,971 PSUs** were granted in 2024 (first grant), resulting in a PSU liability of **$0.5 million**[198](index=198&type=chunk) - The DSU liability increased to **$3.8 million** (2023: **$2.5 million**), with **57,728 DSUs** granted in 2024[199](index=199&type=chunk) [21. Income taxes](index=39&type=section&id=21.%20Income%20taxes) Income tax expense increased significantly to $10.3 million in 2024 from $0.1 million in 2023, primarily due to higher current income tax expense and a deferred tax expense compared to a recovery in the prior year. The reconciliation highlights the impact of foreign statutory tax rates and deferred tax asset not recognized. Net deferred tax assets remained stable at $5.5 million [21a. Income tax expense](index=39&type=section&id=21a.%20Income%20tax%20expense) Income tax expense increased significantly in 2024, driven by higher current income tax and a deferred tax expense Income Tax Expense (USD thousands) | For the years ended December 31 | 2024 | 2023 | | :-------------------------------- | :--------- | :--------- | | Current income tax expense | $10,121 | $4,687 | | Deferred tax expense (recovery) | $193 | $(4,580) | | Income tax expense | $10,314 | $107 | - Income tax expense increased by **$10.2 million** in 2024[200](index=200&type=chunk) - The effective tax rate reconciliation shows significant impacts from differences in foreign statutory tax rates and deferred tax assets not recognized[201](index=201&type=chunk) [21b. Deferred income tax](index=40&type=section&id=21b.%20Deferred%20income%20tax) Net deferred tax assets remained stable in 2024, with non-capital losses available for future periods Summary of Deferred Income Tax Assets and Liabilities (USD thousands) | For the years ended December 31 | 2024 | 2023 | | :-------------------------------- | :--------- | :--------- | | Deferred tax assets | $28,812 | $26,839 | | Deferred tax liabilities | $(23,300) | $(21,134) | | Net Deferred Taxes | $5,512 | $5,705 | - Net deferred tax assets decreased slightly from **$5.7 million** in 2023 to **$5.5 million** in 2024[202](index=202&type=chunk) - Non-capital losses (NCLs) totaling **$72.2 million** are available, expiring between **2038** and **2044**[204](index=204&type=chunk) [22. Shareholders' equity](index=41&type=section&id=22.%20Shareholders%27%20equity) Share capital decreased due to NCIB purchases, while dividends paid increased, and the NCIB was renewed for further share repurchases Share Capital Movement (USD thousands, except share count) | | Number of common shares | Share capital | | :------------------------------------------ | :---------------------- | :------------ | | Balance at December 31, 2023 | 201,353,962 | $1,749,180 | | Exercise of stock options | 473,081 | $(163) | | Normal course issuer bid purchase of common shares and ASPP | (615,200) | $(4,676) | | Balance at December 31, 2024 | 201,211,843 | $1,744,341 | - The Company purchased **615,200 common shares** for **$8.9 million** under the NCIB in 2024[208](index=208&type=chunk) - Dividends paid increased to **$43.3 million** in 2024, from **$41.3 million** in 2023[210](index=210&type=chunk) [23. Capital management](index=42&type=section&id=23.%20Capital%20management) The company aims to ensure sufficient cash for operations and obligations, maintaining liquidity and compliance with credit facility covenants - Primary objective is to ensure sufficient cash resources for ongoing operations, contractual obligations, and debt repayments[211](index=211&type=chunk) - The Company expects its capital resources and projected future cash flows from operations to be sufficient for the next **12 months**[213](index=213&type=chunk) - Triple Flag is in compliance with all covenants under its Credit Facility as at **December 31, 2024**[213](index=213&type=chunk) [24. Financial instruments](index=42&type=section&id=24.%20Financial%20instruments) The company applies IFRS 9 to financial instruments, with most carrying values approximating fair values and nominal ECL impact in 2024 - The Company applies IFRS 9, including its expected credit loss model, to its financial instruments[214](index=214&type=chunk)[215](index=215&type=chunk) - The carrying value of amounts receivable (excluding VAT and prepaid expenses) was **$16.0 million** in 2024, and loans receivable was **$1.8 million**[215](index=215&type=chunk) - The application of the ECL model had a nominal impact on loan receivables and amounts receivable in 2024, as expected credit losses were determined to be nominal[216](index=216&type=chunk)[217](index=217&type=chunk) - The carrying value of cash and cash equivalents, amounts receivable, investments, loans receivable, amounts payable and other liabilities, and debt approximates their fair value[219](index=219&type=chunk) [25. Financial risk exposure and risk management](index=43&type=section&id=25.%20Financial%20risk%20exposure%20and%20risk%20management) The company is exposed to currency, interest rate, credit, liquidity, and commodity price risks, managed through various mitigation strategies [25a. Currency risk](index=43&type=section&id=25a.%20Currency%20risk) The company is exposed to currency risk from non-USD denominated instruments, mitigated by holding USD balances - The Company is exposed to currency risk due to financial instruments and transactions denominated in currencies other than the U.S dollar[220](index=220&type=chunk) - Mitigation involves maintaining the majority of cash balances in U.S dollars and purchasing foreign currencies only as needed[221](index=221&type=chunk) [25b. Interest rate risk](index=44&type=section&id=25b.%20Interest%20rate%20risk) The variable-rate Credit Facility exposes the company to interest rate risk, impacting net earnings with rate changes - The Credit Facility is subject to variable interest rates when drawn, exposing the Company to interest rate risk[223](index=223&type=chunk) - A **1%** increase in interest rates would decrease net earnings by approximately **$0.4 million** in 2024[223](index=223&type=chunk) [25c. Credit risk](index=44&type=section&id=25c.%20Credit%20risk) Credit risk arises from various financial assets, managed through monitoring, individual reviews, and banking with highly rated institutions - Credit risk arises from royalty receivables, loans receivable, cash and cash equivalents, short-term investments, and prepaid gold interests[224](index=224&type=chunk) - The Company manages credit risk through monitoring procedures for overdue loans, individual review of loan recoverability, and maintaining bank accounts with highly rated U.S and Canadian banks[226](index=226&type=chunk)[228](index=228&type=chunk) [25d. Liquidity risk](index=44&type=section&id=25d.%20Liquidity%20risk) Liquidity risk is managed by monitoring cash flows, maintaining adequate cash, and utilizing undrawn credit facilities for anticipated operating needs - Liquidity risk is managed by continuously monitoring cash flows, maintaining adequate cash and cash equivalents, and utilizing access to undrawn credit facilities[229](index=229&type=chunk) - The Company expects sufficient cash on hand and estimated cash flows to fund anticipated operating cash requirements for the next **12 months**[230](index=230&type=chunk) Maturity Analysis of Undiscounted Financial Liabilities (USD thousands) | As at December 31, 2024 | Total | Less than one year | One to three years | After three years | | :-------------------------- | :--------- | :----------------- | :----------------- | :---------------- | | Amounts payable and other liabilities | $23,090 | $23,090 | $— | $— | | Lease obligation | $1,961 | $419 | $865 | $677 | | Total | $25,051 | $23,509 | $865 | $677 | [25e. Commodity price risk](index=45&type=section&id=25e.%20Commodity%20price%20risk) Profitability is highly linked to gold and silver prices, with significant impact on net earnings from price fluctuations, without derivative hedging - Profitability is primarily linked to the market price of gold and silver, which are subject to wide fluctuations due to various factors[232](index=232&type=chunk)[233](index=233&type=chunk) - A **10%** increase/decrease in gold prices would impact net earnings by approximately **$15.2 million** (2024), and for silver, by **$8.9 million** (2024)[235](index=235&type=chunk) - The Company does not use derivatives to mitigate its exposure to commodity price risk[235](index=235&type=chunk) [26. Revenue](index=45&type=section&id=26.%20Revenue) Total revenue increased significantly in 2024, driven by higher gold and silver stream revenues, with Cerro Lindo and Northparkes as top contributors Revenue Breakdown (USD thousands) | For the years ended December 31 | 2024 | 2023 | | :-------------------------------- | :--------- | :--------- | | Stream and related interests - Gold | $108,143 | $74,743 | | Stream and related interests - Silver | $96,584 | $74,275 | | Stream and related interests - Other | $842 | $8,139 | | Royalty Interests | $62,050 | $46,867 | | Revenue – other | $1,372 | $— | | Total revenues | $268,991 | $204,024 | - Revenue from gold streams increased by **44.7%** and silver streams by **30.0%** in 2024[236](index=236&type=chunk) - Top revenue-generating mineral interests in 2024 were Cerro Lindo (**$69.9 million**) and Northparkes (**$64.6 million**)[237](index=237&type=chunk) - Sales to one financial institution accounted for **64%** of the Company's revenue in 2024 (**55%** in 2023)[237](index=237&type=chunk) [27. Segment disclosure](index=46&type=section&id=27.%20Segment%20disclosure) The company operates as a single segment, with Australia, Peru, and the United States being key geographic contributors to revenue and non-current assets - The Company's business is organized into one single operating segment[238](index=238&type=chunk) Revenue by Geography (USD thousands) | For the years ended December 31 | 2024 | 2023 | | :-------------------------------- | :--------- | :--------- | | Australia | $94,095 | $54,064 | | Peru | $70,509 | $45,863 | | United States | $26,520 | $26,366 | | Colombia | $16,352 | $11,352 | | Côte d'Ivoire | $15,041 | $2,570 | | South Africa | $13,998 | $12,487 | | Canada | $10,909 | $15,967 | | Mongolia | $10,706 | $19,030 | | Mexico | $10,585 | $10,887 | | Other | $276 | $5,438 | | Total revenues | $268,991 | $204,024 | Non-Current Assets by Jurisdiction (USD thousands) | For the years ended December 31 | 2024 | 2023 | | :-------------------------------- | :--------- | :--------- | | Australia | $607,194 | $636,310 | | United States | $297,232 | $399,051 | | Canada | $236,536 | $254,066 | | South Africa | $130,860 | $130,975 | | Côte d'Ivoire | $101,468 | $59,321 | | Peru | $90,036 | $115,179 | | Mexico | $66,376 | $72,826 | | Colombia | $43,145 | $46,040 | | Chile | $32,391 | $31,764 | | Guatemala | $24,900 | $24,900 | | Honduras | $22,187 | $22,268 | | Mongolia | $17,350 | $18,110 | | Other | $24,659 | $26,616 | | Total non-current assets | $1,694,334 | $1,837,426 | [28. Changes in working capital](index=48&type=section&id=28.%20Changes%20in%20working%20capital) Working capital saw a net decrease in 2024, an improvement from 2023, primarily due to increased amounts payable offsetting other asset increases Changes in Working Capital (USD thousands) | For the years ended December 31 | 2024 | 2023 | | :------------------------------------------ | :--------- | :--------- | | Increase in amounts receivable and other assets | $(2,737) | $(4,168) | | Increase in inventory | $(1,128) | $(363) | | Increase in amounts payable and other liabilities | $3,639 | $2,799 | | Change in working capital | $(226) | $(1,732) | [29. Earnings per share – basic and diluted](index=48&type=section&id=29.%20Earnings%20per%20share%20%E2%80%93%20basic%20and%20diluted) Basic and diluted loss per share of $0.11 was reported in 2024, a decline from earnings per share in 2023, reflecting the net loss Earnings Per Share (USD) | For the years ended December 31 | 2024 Basic | 2024 Diluted | 2023 Basic | 2023 Diluted | | :-------------------------------- | :----------- | :------------- | :----------- | :------------- | | Net (loss) earnings | $(23,084) | $(23,084) | $36,282 | $36,282 | | Weighted average shares outstanding | 201,304,234 | 201,304,234 | 199,327,784 | 199,519,312 | | (Loss) earnings per share | $(0.11) | $(0.11) | $0.18 | $0.18 | - Basic and diluted earnings per share shifted from a positive **$0.18** in 2023 to a negative **$0.11** in 2024[245](index=245&type=chunk)

Financial Data and Key Metrics Changes - Triple Flag achieved record sales of nearly 30,000 gold equivalent ounces (GEOs) in Q3 2024, positioning the company to meet its production guidance of 105,000 to 115,000 ounces for the year [4] - Operating cash flow per share increased over 70% compared to the prior period, driven by record production and gold prices [5][9] - The company exited the quarter with a small net debt position of only $11 million, demonstrating robust cash flows [10] Business Line Data and Key Metrics Changes - Cerro Lindo and Northparkes were the two largest contributors to Q3 GEOs, benefiting from higher year-over-year volumes and precious metal prices [11] - The portfolio has achieved several milestones, including increased production guidance from Orla Mining for Camino Rojo and successful exploration results from Westgold at Beta Hunt [6][7] Market Data and Key Metrics Changes - Approximately 80% of Triple Flag's revenues are derived from Australia and the Americas, with a significant portion of revenue exposure to silver at around 30% [11][12] - The company continues to benefit from a strong precious metals environment, with record performance across revenue, cash flow, and adjusted EBITDA over the last 12 months [13] Company Strategy and Development Direction - Triple Flag's growth profile remains strong, with expectations to produce between 135,000 to 145,000 GEOs by 2028 [7] - The company emphasizes asset diversification and maintaining a focus on precious metals, with a disciplined approach to capital allocation [10][13] - The management team is focused on adding additional assets to the portfolio, with nearly $690 million in available capital [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pipeline of opportunities, with a focus on traditional royalties and streams rather than debt or equity [22][23] - The company is assessing geopolitical risks but remains centered in mining-friendly jurisdictions, primarily in Australia and Latin America [25][26] Other Important Information - Triple Flag was added to the S&P/TSX Composite Index, enhancing its exposure to a broader investor base and increasing liquidity [7] - The exploration success at Beta Hunt, particularly the discovery of the Fletcher Zone, could significantly expand the resource base without additional costs to shareholders [16][17] Q&A Session Summary Question: Opportunities in the current deal market given gold price volatility - Management confirmed a strong pipeline remains in play, with potential transactions in the $100 million to $300 million range [21][22] Question: Nature of potential transactions (royalties vs. debt/equity) - Management clarified that the focus is on traditional royalties and streams, avoiding debt and equity routes [23] Question: Geopolitical focus in future transactions - Management indicated that while there are opportunities in Latin America, the primary focus remains on mining-friendly jurisdictions like Australia [25][26] Question: Evolution of deal mechanics and counterparty expectations - Management noted that there have been no significant changes in deal mechanics, with the streaming model becoming more accepted over time [29][30] Question: Competition from gold prepay arrangements - Management believes gold prepay arrangements do not erode opportunities for streaming companies, as they offer different financing structures [31][32]

[Unaudited Condensed Interim Consolidated Financial Statements](index=1&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Financial%20Statements) [Condensed Interim Consolidated Balance Sheets](index=1&type=section&id=Condensed%20Interim%20Consolidated%20Balance%20Sheets) As of September 30, 2024, Triple Flag's total assets decreased to $1.77 billion from $1.89 billion at year-end 2023, primarily due to a reduction in mineral interests and loans receivable. Total liabilities also decreased, driven by a reduction in debt, while shareholders' equity declined from $1.81 billion to $1.71 billion, reflecting a net loss for the period Consolidated Balance Sheet Summary (as of Sep 30, 2024 vs. Dec 31, 2023) | Account | Sep 30, 2024 ($ thousands) | Dec 31, 2023 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Current Assets** | 63,249 | 57,038 | +10.9% | | **Total Non-current Assets** | 1,709,978 | 1,837,426 | -6.9% | | **TOTAL ASSETS** | **1,773,227** | **1,894,464** | **-6.4%** | | **Total Current Liabilities** | 19,880 | 17,315 | +14.8% | | **Total Non-current Liabilities** | 43,787 | 66,408 | -34.1% | | **TOTAL LIABILITIES** | **63,667** | **83,723** | **-24.0%** | | **TOTAL SHAREHOLDERS' EQUITY** | **1,709,560** | **1,810,741** | **-5.6%** | | **TOTAL LIABILITIES AND EQUITY** | **1,773,227** | **1,894,464** | **-6.4%** | [Condensed Interim Consolidated Statements of Income (Loss)](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Income%20%28Loss%29) For the third quarter of 2024, the company reported net earnings of $29.6 million, a significant turnaround from a $6.0 million loss in Q3 2023, driven by a 49% increase in revenue. However, for the nine months ended September 30, 2024, the company recorded a substantial net loss of $64.4 million, compared to net earnings of $26.5 million in the prior year period, primarily due to $148.0 million in impairment charges Income Statement Highlights (For the three and nine months ended Sep 30) | Metric ($ thousands, except EPS) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 73,669 | 49,425 | 194,778 | 152,285 | | **Gross Profit** | 36,663 | 25,809 | 108,826 | 75,629 | | **Operating Income (Loss)** | 30,668 | (7,703) | (59,376) | 28,906 | | **Impairment Charges** | 0 | 28,081 | 148,034 | 28,081 | | **Net Earnings (Loss)** | 29,649 | (6,041) | (64,364) | 26,527 | | **Diluted EPS** | $0.15 | $(0.03) | $(0.32) | $0.13 | [Condensed Interim Consolidated Statements of Cash Flows](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, cash flow from operations increased to $150.0 million from $116.5 million in the prior year. Net cash used in investing activities was $82.2 million, primarily for the acquisition of mineral interests. Financing activities resulted in a net cash outflow of $61.6 million, driven by debt repayments of $85.0 million and dividend payments of $32.2 million. The company's cash position increased by $6.2 million to end the period at $23.6 million Cash Flow Summary (For the nine months ended Sep 30) | Activity ($ thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | 150,030 | 116,494 | | **Net Cash used in Investing Activities** | (82,196) | (203,300) | | **Net Cash from (used in) Financing Activities** | (61,593) | 30,096 | | **Increase (Decrease) in Cash** | 6,223 | (56,755) | | **Cash at End of Period** | 23,602 | 14,343 | [Condensed Interim Consolidated Statements of Changes in Equity](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Shareholders' equity decreased from $1.81 billion at the start of 2024 to $1.71 billion at September 30, 2024. The decline was primarily driven by a net loss of $64.4 million and dividend payments of $32.2 million, partially offset by stock-based compensation and proceeds from stock option exercises. The company also repurchased common shares for $5.0 million under its NCIB program Equity Reconciliation (For the nine months ended Sep 30, 2024) | Item ($ thousands) | Amount | | :--- | :--- | | **Equity at Jan 1, 2024** | **1,810,741** | | Net Loss | (64,364) | | Dividends | (32,205) | | NCIB Share Purchase | (5,046) | | Stock-based compensation & option exercises | 434 | | **Equity at Sep 30, 2024** | **1,709,560** | [Notes to the Condensed Interim Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies, significant developments, and breakdowns of key financial statement items. Major highlights include the acquisition of new gold streams, significant impairment charges on specific assets, changes in debt and equity structures, and detailed revenue analysis by asset and geography [Note 1: Nature of operations](index=6&type=section&id=1.%20Nature%20of%20operations) Triple Flag is a Canadian-domiciled precious-metals-focused streaming and royalty company. Its revenue is generated from a diversified portfolio of properties across ten countries, including Australia, Canada, and the United States - The company's core business is **acquiring and managing streaming and royalty interests** in the precious metals sector[7](index=7&type=chunk) - Operations are **geographically diversified** across Australia, Canada, Chile, Colombia, Cote d'Ivoire, Mexico, Mongolia, Peru, South Africa and the United States[7](index=7&type=chunk) [Note 3: Critical accounting estimates and judgments and newly enacted tax rules](index=6&type=section&id=3.%20Critical%20accounting%20estimates%20and%20judgments%20and%20newly%20enacted%20tax%20rules) The company identified impairment indicators for its interests in the Moss mine (Elevation Gold) and the Pumpkin Hollow project (Nevada Copper) as of June 30, 2024, leading to impairment charges. Additionally, newly enacted Canadian EIFEL tax rules, effective October 1, 2023, did not have a material impact on the company's financial results for the period - As of June 30, 2024, **impairment indicators were identified** for interests in the Moss mine and Pumpkin Hollow project, resulting in impairment charges[12](index=12&type=chunk) - Newly enacted Excessive Interest and Financing Expenses Limitation (EIFEL) rules had **no material impact** on the deductibility of interest and financing expenses for the period[13](index=13&type=chunk) [Note 4: Key developments](index=7&type=section&id=4.%20Key%20developments) During 2024, Triple Flag executed several key transactions. In August, it acquired 3% gold streams on the Agbaou and Bonikro mines for $53.0 million. In July, it acquired an additional 1.0% NSR royalty on the Tamarack project for $8.0 million. In March, it settled litigation with Coeur Mining regarding the Kensington royalty, receiving $6.75 million in Coeur shares and amending the royalty terms - Acquired **3% gold streams** on the Agbaou and Bonikro mines from Allied Gold Corp. for a total cash consideration of **$53.0 million** on August 14, 2024[14](index=14&type=chunk) - Acquired an additional **1.0% NSR royalty** on the Tamarack project for **$8.0 million** on July 5, 2024[17](index=17&type=chunk) - Settled litigation with Coeur Mining over the Kensington gold mine royalty, receiving **$6.75 million in Coeur shares** and amending the royalty rate effective January 1, 2024[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) [Note 6: Loans receivable](index=8&type=section&id=6.%20Loans%20receivable) Net loans receivable decreased dramatically to $1.7 million as of September 30, 2024, from $28.0 million at year-end 2023. This reduction was due to the full impairment and write-off of loans to Nevada Copper and Elevation Gold, as there was no reasonable expectation of recovery Loans Receivable Breakdown ($ thousands) | Loan | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Convertible debenture – Excelsior | 1,746 | 1,638 | | Loan receivable – Elevation | — | 17,731 | | Promissory notes – Elevation | — | 6,490 | | Loan receivable – Nevada Copper | — | 11,840 | | **Net loans receivable** | **1,746** | **27,976** | - The company concluded there is **no reasonable expectation of recovery** for the Nevada Copper and Elevation loan receivables, resulting in impairment charges[24](index=24&type=chunk) [Note 8: Mineral interests](index=10&type=section&id=8.%20Mineral%20interests) The carrying value of mineral interests decreased to $1.67 billion from $1.77 billion at the start of the year. The decrease reflects depletion of $57.3 million and significant impairment charges of $107.0 million, which more than offset additions of $57.6 million from the acquisitions of the Agbaou and Bonikro streams and the additional Tamarack royalty Mineral Interests Roll-Forward (YTD Sep 30, 2024, $ thousands) | Item | Amount | | :--- | :--- | | **Carrying Value at Jan 1, 2024** | **1,773,053** | | Additions | 57,591 | | Depletion | (57,304) | | Impairment Charges | (107,046) | | Disposals | (366) | | **Carrying Value at Sep 30, 2024** | **1,665,928** | - Additions include the Agbaou stream (**$19.8M**), Bonikro stream (**$26.3M**), and Additional Tamarack Royalty (**$8.0M**)[30](index=30&type=chunk) - Impairment charges were primarily for the Nevada Copper stream (**$83.9M**) and the Elevation stream (**$18.7M**)[30](index=30&type=chunk) [Note 9: Impairment charges and expected credit losses](index=10&type=section&id=9.%20Impairment%20charges%20and%20expected%20credit%20losses) For the nine months ended September 30, 2024, the company recorded total impairment charges and expected credit losses of $148.0 million. This was driven by the full write-down of assets related to Nevada Copper ($104.1 million) and Elevation Gold ($40.1 million) after the operators filed for Chapter 11 bankruptcy and CCAA creditor protection, respectively Impairment Charges (For the nine months ended Sep 30, 2024, $ thousands) | Asset | Impairment Charge | | :--- | :--- | | **Nevada Copper (Mineral Interest)** | 83,920 | | **Nevada Copper (Loan Receivable)** | 20,197 | | **Elevation Gold (Mineral Interest)** | 18,688 | | **Elevation Gold (Loan Receivable)** | 21,380 | | Other | 4,438 | | **Total** | **148,034** | - The Nevada Copper impairment followed its Chapter 11 bankruptcy filing on June 10, 2024, leading to the conclusion of **no reasonable expectation of recovery** for the stream and loan[38](index=38&type=chunk)[40](index=40&type=chunk) - The Elevation Gold impairment followed its filing for CCAA creditor protection and cessation of mining, leading to a **full write-down** of the stream and loans[47](index=47&type=chunk)[49](index=49&type=chunk) [Note 10: Debt](index=14&type=section&id=10.%20Debt) The company significantly reduced its outstanding debt under its Revolving Credit Facility during the first nine months of 2024. The balance decreased from $57.0 million at year-end 2023 to $35.0 million as of September 30, 2024, after making net repayments of $22.0 million. The company remained in compliance with all financial covenants Debt Reconciliation (YTD Sep 30, 2024, $ thousands) | Item | Amount | | :--- | :--- | | **Debt at Jan 1, 2024** | **57,000** | | Drawdowns | 63,000 | | Repayments | (85,000) | | **Debt at Sep 30, 2024** | **35,000** | - The company was in **compliance with all financial ratios and requirements** under its Credit Facility as of September 30, 2024[53](index=53&type=chunk) [Note 13: Shareholders' equity](index=16&type=section&id=13.%20Shareholders%27%20equity) The company continued its capital return program, paying dividends totaling $32.2 million in the first nine months of 2024. Under its Normal Course Issuer Bid (NCIB), the company repurchased 375,800 common shares for $5.0 million. The NCIB allows for the purchase of up to 10.1 million shares until November 2024 - Paid dividends of **$32.2 million** for the nine months ended Sep 30, 2024, compared to **$30.7 million** in the prior year period[61](index=61&type=chunk) - Repurchased **375,800 common shares** for **$5.0 million** under the NCIB program during the first nine months of 2024[59](index=59&type=chunk) - The company renewed its NCIB in November 2023, authorizing the repurchase of up to **10,078,488 common shares** until November 14, 2024[58](index=58&type=chunk) [Note 15: Revenue](index=18&type=section&id=15.%20Revenue) Total revenue for the nine months ended September 30, 2024, increased by 28% to $194.8 million from $152.3 million in the prior year. The growth was driven by higher revenue from both stream interests (up 25% to $147.4 million) and royalty interests (up 32% to $46.0 million). Key contributors to revenue were the Cerro Lindo, Northparkes, and Impala Bafokeng streams, along with newly acquired streams at Bonikro and Agbaou Revenue by Type (For the nine months ended Sep 30, $ thousands) | Revenue Type | 2024 | 2023 | | :--- | :--- | :--- | | Gold Stream | 78,213 | 56,529 | | Silver Stream | 68,915 | 54,975 | | Royalty Interests | 45,997 | 34,744 | | Other | 1,653 | 6,037 | | **Total Revenues** | **194,778** | **152,285** | - The top three revenue-generating assets for the nine-month period were the Cerro Lindo (**$51.0M**), Northparkes (**$45.2M**), and Impala Bafokeng (**$9.9M**) streams[73](index=73&type=chunk) [Note 16: Segment disclosure](index=19&type=section&id=16.%20Segment%20disclosure) The company operates as a single operating segment focused on acquiring and managing streams and royalties. Geographically, Australia was the largest source of revenue for the first nine months of 2024, contributing $67.8 million (35% of total), followed by Peru with $51.5 million (26% of total) Revenue by Geography (For the nine months ended Sep 30, $ thousands) | Jurisdiction | 2024 | 2023 | | :--- | :--- | :--- | | Australia | 67,780 | 41,268 | | Peru | 51,544 | 32,852 | | United States | 20,718 | 18,676 | | Cote d'Ivoire | 10,364 | 1,699 | | Colombia | 9,955 | 8,646 | | South Africa | 9,881 | 9,185 | | Mongolia | 9,716 | 15,857 | | Mexico | 7,798 | 8,034 | | Canada | 6,936 | 11,631 | | Other | 86 | 4,437 | | **Total** | **194,778** | **152,285** | - The company's business is organized into a **single operating segment**: acquiring and managing precious metals streams and royalties[74](index=74&type=chunk)

Core Viewpoint - Triple Flag Precious Metals (TFPM) shows potential for significant upside, with a mean price target of $22.31 indicating a 31.1% increase from the current price of $17.02 [1] Price Targets - The average price target consists of 11 estimates ranging from $17.03 to $34, with a standard deviation of $5.36, indicating variability among analysts [2] - The lowest estimate suggests a minimal increase of 0.1%, while the highest estimate indicates a potential upside of 99.8% [2] - A low standard deviation suggests a strong agreement among analysts regarding the stock's price movement [7] Analyst Sentiment - Analysts exhibit growing optimism regarding TFPM's earnings prospects, as evidenced by upward revisions in earnings estimates [9] - The Zacks Consensus Estimate for the current year has risen by 3.1% over the past month, with two estimates increasing and no negative revisions [10] - TFPM holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors [11] Caution on Price Targets - While price targets are commonly referenced, they can mislead investors, as empirical research indicates they rarely predict actual stock price movements [5] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6] - Investors should approach price targets with skepticism and not rely solely on them for investment decisions [8]

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Triple Flag Precious Metals (TFPM) , which belongs to the Zacks Mining - Gold industry, could be a great candidate to consider.This precious metals streaming and royalty company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters o ...