Triple Flag Precious Metals (TFPM) - 2024 Q4 - Annual Report

Consolidated Financial Statements This section presents the company's comprehensive financial position, performance, and cash flows Management's Report on Internal Control Over Financial Reporting 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] - The effectiveness of internal control was audited by PricewaterhouseCoopers LLP[5] Report of Independent Registered Public Accounting Firm 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] - PwC also opined that the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024[8] - 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][15][16] Consolidated Balance Sheets 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] - 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] Consolidated Statements of Income 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] - Impairment charges and expected credit losses surged by 302.0% to $148.0 million in 2024, up from $36.8 million in 2023[22] - 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] Consolidated Statements of Cash Flows 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] - 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] - 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] Consolidated Statements of Changes in Equity 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] - Dividends paid amounted to $43.3 million in 2024, slightly up from $41.3 million in 2023[24] - Share capital decreased by $4.8 million, influenced by NCIB purchases of common shares[24] Notes to the Consolidated Financial Statements This section provides detailed explanations and breakdowns for the figures presented in the consolidated financial statements 1. Nature of operations 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] - 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] 2. Basis of presentation 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] - No new accounting standards effective January 1, 2024, had a material impact[27] 3. Summary of material accounting policies This section outlines key accounting policies for consolidation, revenue, financial instruments, and other critical areas 3a. Consolidation principles 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] 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 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] - Foreign currency transactions are translated using exchange rates prevailing on transaction dates, with gains/losses recognized in consolidated statements of income[32] 3c. Cash and cash equivalents 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] 3d. Inventory 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] 3e. Mineral interests 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] - Producing and development stage assets are recorded at cost and depleted based on attributable share of total estimated recoverable resources[35][39] - Management assesses impairment indicators at each reporting period, applying significant judgment to factors like future production, commodity prices, and economic trends[42][43] 3f. Income taxes 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] - Deferred tax is recognized for temporary differences between financial reporting and taxation amounts, measured at expected tax rates[49][50] 3g. Revenue from contracts with customers 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] - For streaming and prepaid gold interests, revenue is recognized when control over the commodity transfers to the customer upon delivery[54] - 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] 3h. Cost of sales excluding depletion 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] 3i. Financial instruments 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][60] - Prepaid gold interests and equity instruments are classified as FVTPL, with fair value changes recognized in the consolidated statements of income[66][67] - 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][71][72] 3j. Related party transactions 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] 3k. Earnings per share 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] 3l. Segment reporting 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] 3m. Stock-based compensation 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] - 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][83] - 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][83] 4. Critical accounting estimates and judgments 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][91][94] - Impairment assessments of mineral interests require significant judgment, considering factors like future production, commodity prices, and economic trends[95][96] - Expected credit losses for loans receivable are based on assumptions about counterparties' repayment abilities, including production results, operating costs, and commodity prices[100][102] - Income tax estimates involve interpreting tax laws and forecasting future taxable income, which can be affected by commodity prices and production[103][104] - 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][106] 5. Adoption of accounting policies and newly enacted tax rules 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] - 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][109] - 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] 6. Key developments 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] - Acquired 3% gold streams on Agbaou and Bonikro mines for a total cash consideration of $53.0 million (August 2024)[112][114] - Acquired an additional 1.0% NSR royalty on the Tamarack project for $8.0 million (July 2024)[115] - Settled Kensington litigation, receiving $6.75 million in Coeur shares and amending royalty terms (March 2024)[116][117][118] - 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][124][125] 7. Cash and cash equivalents 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] 8. Amounts receivable and prepaid expenses 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][128] 9. Inventory 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] 10. Loans receivable 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] - Impairment charges were recognized for Nevada Copper and Elevation Gold loan receivables, as there was no reasonable expectation of recovery[133] 11. Prepaid gold interests and investments 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 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] - The Company recognized a gain of $14.3 million in 2024 from changes in fair value of prepaid gold interests[134] - A new agreement with Steppe Gold Ltd in March 2024 involved a $5.0 million cash payment for 2,650 ounces of gold[136] 11b. Investments 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] - The Company recognized a loss of $1.5 million in 2024 from changes in fair value of investments[139] - Triple Flag disposed of various equity investments for cash proceeds of $3.1 million in 2024[139] 12. Mineral interests 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] - 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][141] - 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][141] 13. Impairments of streams, royalties and other interests 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][154][156] - 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][161][162] - 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][165] 14. Amounts payable and other liabilities 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] 15. Debt 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][173] - Finance costs related to debt decreased to $5.5 million in 2024 from $7.2 million in 2023[173] - The Company was in compliance with all covenants under its Credit Facility as of December 31, 2024[173] 16. Operating expenses by nature 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][175] 17. Finance costs, net 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] 18. Commitments and contingencies The company has various contractual commitments for metal streams and contingencies for potential upfront deposits and acquisition agreements 18.1 Commitments 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] - Prepaid gold interests include an agreement with Auramet for 1,250 ounces of gold per quarter at 16% of spot price[177] 18.2 Contingencies 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][184] - 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] - 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] 19. Related party transactions 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] 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] 20. Stock-based compensation 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] - 197,688 RSUs were awarded in 2024, with the RSU liability increasing to $2.7 million (2023: $1.8 million)[197] - 166,971 PSUs were granted in 2024 (first grant), resulting in a PSU liability of $0.5 million[198] - The DSU liability increased to $3.8 million (2023: $2.5 million), with 57,728 DSUs granted in 2024[199] 21. Income taxes 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 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] - The effective tax rate reconciliation shows significant impacts from differences in foreign statutory tax rates and deferred tax assets not recognized[201] 21b. Deferred income tax 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] - Non-capital losses (NCLs) totaling $72.2 million are available, expiring between 2038 and 2044[204] 22. Shareholders' equity 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] - Dividends paid increased to $43.3 million in 2024, from $41.3 million in 2023[210] 23. Capital management 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] - The Company expects its capital resources and projected future cash flows from operations to be sufficient for the next 12 months[213] - Triple Flag is in compliance with all covenants under its Credit Facility as at December 31, 2024[213] 24. Financial instruments 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][215] - 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] - 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][217] - 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] 25. Financial risk exposure and risk management The company is exposed to currency, interest rate, credit, liquidity, and commodity price risks, managed through various mitigation strategies 25a. Currency risk 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] - Mitigation involves maintaining the majority of cash balances in U.S dollars and purchasing foreign currencies only as needed[221] 25b. Interest rate risk 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] - A 1% increase in interest rates would decrease net earnings by approximately $0.4 million in 2024[223] 25c. Credit risk 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] - 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][228] 25d. Liquidity risk 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] - The Company expects sufficient cash on hand and estimated cash flows to fund anticipated operating cash requirements for the next 12 months[230] 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 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][233] - 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] - The Company does not use derivatives to mitigate its exposure to commodity price risk[235] 26. Revenue 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] - Top revenue-generating mineral interests in 2024 were Cerro Lindo ($69.9 million) and Northparkes ($64.6 million)[237] - Sales to one financial institution accounted for 64% of the Company's revenue in 2024 (55% in 2023)[237] 27. Segment disclosure 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] 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 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 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]