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

Financial Data and Key Metrics Changes - In Q3 2025, the company recorded 27,000 GEOs, leading to a record adjusted EBITDA of $79 million and operating cash flow per share of $0.39 [2][5] - Operating cash flow per share increased by over 25% year over year, reflecting the benefits of higher gold prices [5][6] - The company exited the quarter with essentially zero net debt and is currently in a net cash position [6][7] 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 [7] 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 [7] Company Strategy and Development Direction - The company is focused on top-tier precious metals assets, with nearly 90% of revenue sourced from mining-friendly jurisdictions in Australia and the Americas [7] - The company aims to achieve GEOs between the midpoint and high end of its 2025 guidance range, with expectations for continued strong performance in Q4 and beyond [2][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's legal position regarding a $10 million claim against Step Gold, indicating ongoing discussions with the controlling shareholder [14][15] - The company anticipates near-term catalysts from various projects, including ramp-ups at Johnson Camp, Trey Crabatus, and Arcata, as well as ongoing exploration updates [10] Other Important Information - The company declared a quarterly cash dividend of $0.0575 per share, reflecting its strong balance sheet and record operating cash flows [7] - The acquisition of a royalty package on Pan American's Minera Florida gold mine in Chile for $23 million was highlighted as a strategic move to drive shareholder value [3][4] Q&A Session Summary Question: Can you elaborate on how the Minera Florida transaction was sourced? - The transaction involved a concentrated process with a pre-existing rapport with the family, allowing for a site visit during negotiations [12][13] Question: What is the status of the ATO stream arbitration with Step Gold? - The company is confident in its legal position and is in dialogue with Step's controlling shareholder, expecting to land in the top half of its guidance range regardless of the outcome [14][15] Question: What are the current transaction opportunities in the $100 to $300 million range? - The company is evaluating a mix of smaller royalties and larger corporate transactions, focusing on traditional mining jurisdictions in the Americas [18][19] Question: Can you provide an update on the Priesca project? - The project is being developed in stages, with a focus on the deeps, and the company will evaluate the right to fund the stream when the project reaches a final investment decision [26][27] Question: How does the company evaluate situations like the El Machido stream disposal? - The company views each situation on a case-by-case basis, finding structured sales beneficial while generally not looking to sell streams [32][34] Question: What is the outlook for Minera Florida given recent grade reconciliation issues? - Management remains confident in the long-term performance of Minera Florida, citing its historical production records as a basis for future forecasts [37][38] Question: What factors contribute to the 2029 guidance of 135,000 to 145,000 ounces GEOs? - The growth is expected from ramp-ups of newer assets and increased production from existing mines, with a diversified approach across multiple projects [39][40]