Triple Flag Precious Metals (TFPM) - 2023 Q2 - Quarterly Report

Financial Performance - In 2023, Triple Flag's revenue reached $204 million, a 34% increase from $152 million in 2022[98] - Adjusted EBITDA for 2023 was $159 million, up from $119 million in 2022, reflecting a 33% growth[105] - The company reported adjusted net earnings of $61 million in 2023, compared to $58 million in 2022, indicating a 5% increase[105] - Revenue for Q4 2023 was $51,739 thousand, up 17.5% from $43,886 thousand in Q4 2022; full-year revenue increased 34.4% to $204,024 thousand from $151,885 thousand[117] - Gross profit for Q4 2023 was $26,447 thousand, a 8.1% increase from $24,458 thousand in Q4 2022; full-year gross profit rose 17.3% to $102,076 thousand from $87,004 thousand[117] - Net earnings for Q4 2023 were $9,755 thousand, down 37.0% from $15,460 thousand in Q4 2022; full-year net earnings decreased 34.1% to $36,282 thousand from $55,086 thousand[117] - Adjusted net earnings for Q4 2023 were $17,754 thousand, slightly up from $17,429 thousand in Q4 2022; full-year adjusted net earnings increased 8.3% to $66,267 thousand from $61,012 thousand[117] - Net earnings for 2023 were $36.3 million, a decrease of 34.2% from $55.1 million in the prior year, primarily due to higher impairment charges and finance costs[251] Commodity Prices - The average gold price in 2023 was $1,941 per ounce, an 8% increase compared to $1,800 per ounce in 2022[110] - The average silver price in 2023 was $23.35 per ounce, a 7% increase from $21.73 per ounce in 2022[114] - As of December 31, 2023, the gold price was $2,078 per ounce, marking a 14% increase from the same period in the previous year[112] Asset Management - The company has a diversified portfolio of 235 assets, including 32 producing assets and 203 in development and exploration[107] - The company aims to enhance portfolio quality through accretive investments while managing capital structure effectively[107] - The company maintained an asset margin of 90% for the year[117] Production and Sales - The company achieved 105,087 GEOs in 2023, exceeding the guidance of 100,000 to 115,000 GEOs[120] - The company sold 26,243 GEOs in Q4 2023, a 3% increase from 25,428 GEOs sold in Q4 2022, primarily due to assets from the Maverix acquisition[147] - For the year 2023, the company achieved a record sale of 105,087 GEOs, representing a 24% increase from 84,571 GEOs sold in 2022[148] - The company reported gold revenue of $29.568 million in Q4 2023, up from $19.328 million in Q4 2022, and $119.041 million for the year, compared to $80.533 million in 2022[143] - Silver revenue for Q4 2023 was $19.484 million, down from $21.892 million in Q4 2022, while annual silver revenue increased to $75.554 million from $61.051 million[143] Acquisitions - The acquisition of Maverix closed on January 19, 2023, for $86.7 million and 45,097,390 common shares, with mineral interests valued at $587.8 million[155] - The company acquired a 1.5% gross revenue royalty on the Johnson Camp Mine for $5.5 million in cash on November 30, 2023[150] - An additional 2.65% net smelter returns gold royalty was acquired from Stawell Gold Mines for $16.6 million on September 25, 2023[151] - The company acquired a 2.5% NSR royalty on the Agbaou gold mine for $15.5 million on June 23, 2023[152] - The company completed the acquisition of 80% interest in Northparkes by Evolution Mining on December 18, 2023[178] Financial Position - Total assets increased to $1,894.5 million as of December 31, 2023, from $1,337.0 million as of December 31, 2022, primarily due to assets acquired from the Maverix acquisition[210] - Total liabilities rose to $83.7 million as of December 31, 2023, compared to $18.6 million as of December 31, 2022, largely due to net drawdown from the Credit Facility for the Maverix acquisition[213] - Total shareholders' equity increased to $1,810.7 million as of December 31, 2023, from $1,318.5 million as of December 31, 2022, reflecting additional equity issued and income generated during the period[215] Cash Flow and Expenses - Operating cash flow for 2023 was $154.1 million, an increase of 30.2% from $118.4 million in 2022, driven by higher cash flows from interests acquired through the Maverix acquisition[277] - Finance costs for 2023 were $4.1 million, up from $1.4 million in the prior year, primarily due to higher interest charges on a drawn balance of the Credit Facility[249] - General administration costs for the year ended December 31, 2023, were $20.1 million, compared to $15.5 million in the prior year, driven by higher employee and public company costs[243] - The expected credit loss provision for the three months ended December 31, 2023, was $8.7 million, compared to nil for the same period in the prior year[234] - Cash and cash equivalents at the end of the period for 2023 were $17.4 million, a decrease from $71.1 million at the end of 2022[273] Future Guidance - 2024 guidance includes GEOs of 105,000 to 115,000, depletion of $70 million to $80 million, and general administration costs of $23 million to $24 million[123] - The company expects Phase 2 at ATO to generate 1,237,000 ounces of gold equivalent over 12 years, averaging over 100,000 ounces per annum[191] - The company expects to spend $12 million on exploration at Young-Davidson in 2024, up from $8 million in 2023, indicating ongoing exploration success[206]