Triple Flag Precious Metals (TFPM) - 2025 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Triple Flag recorded 27,000 GEOs in Q3 2025, leading to record-adjusted EBITDA of $79 million and operating cash flow per share of $0.39, benefiting shareholders from higher gold prices [2][5] - Operating cash flow per share increased by over 25% year over year, with the company exiting the quarter with essentially zero net debt and a net cash position [5][6] - Total liquidity available is nearly $1 billion, allowing for continued capital deployment into growth opportunities [6] Business Line Data and Key Metrics Changes - The company has deployed over $350 million in capital across five investments year to date, including acquisitions in lithium, silver, and copper mines [3][4] - North Parks and Sarah Lindo were the largest contributors to revenues in Q3, with North Parks achieving record performance due to higher open-pit grades [6] Market Data and Key Metrics Changes - Precious metals prices reached record quarterly averages of nearly $3,500 per ounce for gold and nearly $40 per ounce for silver [5] - The sales mix remains 100% derived from precious metals, with nearly three-quarters from gold, and this is expected to continue [6] Company Strategy and Development Direction - The company focuses on top-tier precious metals assets, with nearly 90% of revenue sourced from mining-friendly jurisdictions in Australia and the Americas [6] - Future growth is supported by ongoing production ramp-ups at various mines, including Johnson Camp and Arcata, and economic studies for projects like Arthur and Hope Bay expected to complete in H1 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the high end of the 2025 GEOs guidance, with expectations for continued strong cash flows due to favorable gold prices [2][5] - The company is optimistic about the exploration potential of its assets, particularly the Minera Florida gold mine, which has a long history of consistent performance [8][9] Other Important Information - A quarterly cash dividend of $0.0575 per share was declared, reflecting the company's commitment to returning value to shareholders [6] - The company is actively evaluating transaction opportunities in the range of $100 to $300 million, focusing on jurisdictions that investors favor [21][22] Q&A Session Summary Question: How was the Minera Florida transaction sourced? - The transaction was a concentrated process, developed through rapport with the family involved, allowing for a site visit during negotiations [13][14] Question: Update on the ATO stream and discussions with Step Gold? - The company is confident in its legal position regarding a $10 million owed by Step Gold and is in dialogue with the controlling shareholder [16][17] Question: What are the current transaction opportunities? - The company is evaluating a mix of streams and royalties in traditional mining jurisdictions, with a focus on financing needs of other companies [21][22] Question: Update on Priesca project and funding decisions? - The company has the option to fund the stream into the deeps of the Priesca project when the investment decision is made, with no obligation to do so [30][31] Question: Discussion on El Machido stream disposal? - The disposal was a structured sale to allow the operator to move forward without the stream, providing good value for the company [36][37]