Triple Flag Precious Metals (US:TFPM)2024-02-21 22:00Financial Performance - Revenue for 2023 increased to $204,024 thousand, up 34.4% from $151,885 thousand in 2022[23] - Gross profit for 2023 was $102,076 thousand, representing a 17.3% increase compared to $87,004 thousand in 2022[23] - Net earnings decreased to $36,282 thousand in 2023, down 34.1% from $55,086 thousand in 2022[23] - Operating cash flow for 2023 was $154,138 thousand, an increase of 30.2% from $118,376 thousand in 2022[24] - Total operating expenses for the year ended December 31, 2023, were $24.3 million, an increase of 31% from $18.5 million in 2022[163] - Finance costs, net for the year ended December 31, 2023, were $4.1 million, up from $1.4 million in 2022, reflecting a significant increase in interest expenses[165] - Employee costs, including share-based compensation, rose to $14.5 million in 2023, compared to $11.9 million in 2022, marking a 22% increase[163] - The company's income tax expense for 2023 was $107,000, a significant decrease of 97.8% from $4.8 million in 2022, with current income tax expense at $4.7 million compared to $5.6 million in 2022[186] Assets and Liabilities - Total assets increased to $1,894,464 thousand as of December 31, 2023, up from $1,337,031 thousand in 2022, representing a growth of approximately 42%[21] - Mineral interests rose significantly to $1,773,053 thousand in 2023, compared to $1,228,171 thousand in 2022, marking an increase of about 44.5%[21] - Current liabilities increased to $17,315 thousand in 2023 from $12,586 thousand in 2022, reflecting a rise of approximately 37%[21] - Non-current assets grew to $1,837,426 thousand in 2023, compared to $1,246,424 thousand in 2022, representing an increase of about 47.3%[21] - Total amounts payable and other liabilities rose to $15.7 million in 2023, compared to $11.3 million in 2022, driven by increased accrued liabilities[159] Shareholder Equity - Share capital increased to $1,749,180 thousand in 2023, up from $1,250,194 thousand in 2022, indicating a growth of about 39.9%[21] - The total equity at the end of 2023 was $1,810,741 thousand, up from $1,318,475 thousand at the end of 2022[25] - The company declared and paid dividends totaling $41.3 million in 2023, an increase of 36% from $30.4 million in 2022, with an average dividend per share of $0.0513 compared to $0.0488 in 2022[194] - As of December 31, 2023, the company repurchased 1,485,820 common shares under its NCIB for $20.7 million, significantly higher than $4.1 million for 351,144 shares in 2022[192] Acquisitions and Investments - The company acquired Maverix Metals Inc. on January 19, 2023, which included $588 million of mineral interests[17] - The company acquired mineral interests totaling $190,895 thousand in 2023, compared to $52,280 thousand in 2022[24] - The Company acquired a 1.5% gross revenue royalty on the Johnson Camp Mine for $5.5 million in cash on November 30, 2023[109] - An additional 2.65% net smelter return gold royalty was acquired from Stawell Gold Mines for $16.6 million on September 25, 2023[110] - The Company acquired the 2.5% NSR royalty on the Agbaou gold mine for a total consideration of $15.5 million, with $13.5 million paid in cash[111] - The Company entered into a royalty purchase agreement for a 2.5% NSR royalty on the Thunder Bay North Project for C$15 million[115] - A 0.8% GRR royalty and an $80 million gold and silver stream were acquired from Orion Minerals for the Prieska copper-zinc mine[116] Impairment and Financial Reporting - The company incurred impairment charges of $27,107 thousand in 2023, significantly higher than $3,600 thousand in 2022[23] - The company assesses the carrying value of mineral interests for impairment at the end of each reporting period, considering factors such as future production estimates and commodity prices[43] - Impairment indicators include significant adverse changes to future production and operator reserve estimates, current and forecast commodity prices, and industry trends[44] - The company recognizes impairment losses when the carrying value of exploration stage projects exceeds their recoverable amount[48] - An impairment charge of $20.2 million was recorded due to the Renard mine's financial difficulties, including $11.7 million related to a bridge loan receivable[155] - The Beaufor royalty investment was written down to nil, resulting in an impairment charge of $6.8 million due to the mine's continued suspension of operations[158] Cash Flow and Financing - Cash and cash equivalents decreased to $17,379 thousand in 2023 from $71,098 thousand in 2022, a decline of approximately 75.6%[21] - Total cash and cash equivalents at the end of 2023 were $17,379 thousand, down from $71,098 thousand at the end of 2022[24] - As of December 31, 2023, Triple Flag Precious Metals Corp. has drawn down a total of $57 million from its revolving credit facility, compared to $0 in 2022[162] - The company amended its $500 million credit facility, extending the maturity to August 30, 2026, and increasing the uncommitted accordion to $200 million[124] Stock Options and Compensation - The company’s stock option plan allows employees to purchase shares at an exercise price determined by the Board, with options vesting equally over three years[85] - As of December 31, 2023, the company had 3,957,362 stock options outstanding, with an average exercise price of $13.17[179] - Stock-based compensation expense for options was $3.4 million in 2023, slightly up from $3.3 million in 2022[181] - The company expects to recognize $2.2 million of total unrecognized compensation cost related to stock options over a weighted average period of 0.7 years[182] - For the year ended December 31, 2023, the company awarded 120,065 RSUs, an increase of 73.7% from 69,102 RSUs in 2022, with a stock-based compensation expense of $1.0 million compared to $0.6 million in 2022[183] - The company granted 66,504 DSUs in 2023, a decrease of 8.1% from 72,439 DSUs in 2022, with a total DSU liability of $2.5 million as of December 31, 2023, up from $2.0 million in 2022[184][185] Taxation - Deferred tax assets increased to $26.8 million in 2023 from $12.9 million in 2022, primarily due to non-capital loss carryforwards rising to $19.5 million from $11.9 million[187] - The Company reassesses its deferred income tax assets at the end of each reporting period, which could be reduced if actual results differ significantly from forecasts[103] - Non-capital losses generated in Canada total $41.4 million, with expirations ranging from 2039 to 2042[188]