Triple Flag Precious Metals (TFPM) - 2025 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Triple Flag achieved record sales of nearly 29,000 GEOs in Q2 2025, resulting in record adjusted EBITDA of CAD 76 million and operating cash flow of CAD 0.38 per share [3][4] - Operating cash flow per share increased by over 50% year over year, marking a new quarterly record [9] - The company exited the quarter with zero debt and expects to maintain a net cash position by the end of Q3 2025 [10][11] Business Line Data and Key Metrics Changes - North Park and Cerro Lindo remain the two largest contributors to revenue, with North Park achieving a record quarter due to higher open pit grades from stockpiled ore [11][12] - Revenues were derived 100% from precious metals, with approximately two-thirds from gold, indicating a strong focus on gold and silver exposure [12] Market Data and Key Metrics Changes - The company reported strong performance amid record precious metals prices, benefiting from high margins that consistently exceed 90% [4][9] - Approximately 90% of revenue was derived from assets located in Australia and The Americas, highlighting the company's focus on mining-friendly jurisdictions [12] Company Strategy and Development Direction - The company is focused on accretive acquisitions, with recent transactions including the Tre Corvadis Lithia mine in Argentina and additional royalties on the Johnson Camp copper mine in Arizona [4][5] - The acquisition of a 1% NSR royalty on the Arthur Gold project in Nevada is expected to provide long-term growth potential [5] - The investment thesis remains centered on top-tier assets, a focus on precious metals, and a predominantly North American and Australian portfolio [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 guidance of 105,000 to 115,000 ounces, supported by strong operating cash flows and a robust transaction pipeline [4][16] - The company anticipates several catalysts, including the commencement of production at multiple mines and ongoing exploration successes [16][18] Other Important Information - The company announced a 5% increase in its annual dividend to CAD 0.02, marking the fourth consecutive annual increase since its IPO [10] - The company maintains a strong balance sheet with total liquidity available of nearly CAD 1 billion, allowing for continued investment in growth opportunities [11] Q&A Session Summary Question: What should be expected as steady state production from the Johnson Camp royalty? - Management indicated that the Johnson Camp royalty is a small purchase and did not provide specific asset guidance [20][21] Question: Can you walk through potential offsets for declining production in 2026? - Management noted that while North Park's high-grade stockpiles will deplete, production from the Arcata mine and Johnson Camp mine is expected to come online, providing potential offsets [33][35] Question: What is the current deal pipeline looking like? - Management stated that the pipeline is full, with a mix of larger and smaller opportunities, predominantly in the $100 million to $300 million range, focusing on precious metals [39][40] Question: Is the focus still on safe jurisdictions like The Americas and Australia? - Management confirmed that the focus remains on The Americas and Australia, with limited interest in opportunities in Africa [47][48]