Triple Flag Precious Metals Corp. (with its subsidiaries,
“Triple Flag” or the “Company”) (TSX: TFPM, NYSE: TFPM) announced
its results for the third quarter of 2024 and declared a dividend
of US$0.055 per common share to shareholders of record at the close
of business on November 29, 2024. All amounts are expressed in US
dollars, unless otherwise indicated.
“With record GEOs sales, record revenue and most importantly,
record operating cash flow per share, I am very pleased to present
our third quarter results to our shareholders. We are well on track
to achieve guidance for 2024 of 105,000 to 115,000 GEOs. Our
world-class portfolio has delivered over 70% year-on-year growth in
operating cash flow per share within a strong precious metals price
environment, driven by sales from our cornerstone assets
Northparkes and Cerro Lindo. Towards the end of the third quarter,
we were pleased that Triple Flag was included in the S&P/TSX
Composite Index, enabling us to benefit from exposure to a broader
investor base as well as greater liquidity and trading flexibility.
As we conclude 2024, Triple Flag is well-positioned to continue
delivering higher sales to drive increasing cash flow, accretive
acquisitions, as well as a demonstrated commitment for returns to
shareholders,” commented Sheldon Vanderkooy, CEO.
Q3 2024 Financial Highlights
Q3
2024
Q3
2023
Revenue
$73.7 million
$49.4 million
Gold Equivalent Ounces
(“GEOs”)1
29,773
25,629
Net Earnings (Loss) (per
share)
$29.6 million ($0.15)
($6.0 million) (-$0.03)
Adjusted Net Earnings2 (per
share)
$29.6 million ($0.15)
$20.4 million ($0.10)
Operating Cash Flow
$61.8 million
$36.8 million
Operating Cash Flow per Share
$0.31
$0.18
Adjusted EBITDA3
$63.4 million
$39.9 million
Asset Margin4
92%
90%
GEOs Sold by Commodity and Revenue by Commodity
Three Months Ended September 30
($
thousands except GEOs)
2024
2023
GEOs1
Gold
19,732
15,115
Silver
9,928
9,500
Other
113
1,014
Total
29,773
25,629
Revenue
Gold
48,823
29,149
Silver
24,565
18,321
Other
281
1,955
Total
73,669
49,425
Corporate Updates
- 2024 GEOs Sales Guidance Maintained: Triple Flag remains
on track to achieve its sales guidance for 2024 of 105,000 to
115,000 GEOs. We expect to achieve GEOs sales between the midpoint
and high-end of guidance for 2024.
- Strong Balance Sheet: As of September 30, 2024, our net
debt position was approximately $11 million. With current liquidity
available of nearly $690 million, we continue to advance an active
and actionable deal pipeline.
- 2028 GEOs Sales Outlook Reiterated: Triple Flag’s sales
outlook of 135,000 to 145,000 GEOs in 2028 remains unchanged. Our
long-term sales outlook continues to be based on metal price
assumptions of $1,850/oz Au, $22/oz Ag and $4.00/lb Cu.
- Quarterly Dividend Maintained: Triple Flag’s Board of
Directors declared a quarterly dividend of US$0.055 per common
share that will be paid on December 16, 2024, to shareholders of
record at the close of business on November 29, 2024.
- Share Buyback Activity: During the third quarter of
2024, Triple Flag bought back 92,700 shares in the open market for
approximately C$2.0 million. As of September 30, 2024, 547,400
shares have been repurchased under the current NCIB.
- S&P/TSX Composite Index Inclusion: On September 23,
2024, Triple Flag was added to the S&P/TSX Composite Index, the
headline index comprised of the largest and most liquid companies
on the Toronto Stock Exchange. Our inclusion in the S&P/TSX
Composite Index provides exposure to a broader investor base
leading to greater liquidity and trading flexibility.
- Community Support: Through the World Gold Council’s
Community Development Program, Triple Flag has successfully
achieved a total of $200,000 in funding on behalf of the
surrounding communities of our mining assets in Northparkes
(Australia), Stawell (Australia), and Cerro Lindo (Peru), that will
go towards sustainable development projects with tangible
environmental and social impacts.
Q3 2024 Portfolio Updates
Significant newsflow and milestones related to assets within our
portfolio announced during the third quarter of 2024 are detailed
below.
Australia:
- Northparkes (54% gold stream and 80% silver stream):
Sales from Northparkes in Q3 2024 were 6,738 GEOs, compared to
6,620 GEOs in Q2 2024 and 3,919 GEOs in Q3 2023. We continue to
expect higher grade open pit ore from E31 and E31N to contribute to
mill feed blend through at least 2025. Development of the sub-level
(“SLC”) cave at E48 commenced in July 2024 with commissioning
on-track for the second quarter of 2025. This orebody’s higher
reserve grade of 0.41 g/t Au is expected to partially offset the
depletion of the E31 and E31N open pits, with a current minelife
expected to end in 2034. A pre-feasibility study for the E48 SLC
remains scheduled for completion in the first quarter of 2025.
First production from the E22 orebody is expected during
Evolution’s fiscal year ending June 30, 2029, with a current
reserve grade of 0.37 g/t Au. A SLC hybrid option study for E22 is
expected to be completed by June 30, 2025. Additionally,
exploration at the Major Tom and E51 targets continues to return
encouraging results on the growth potential for near surface
copper-gold mineralization. Both open pit targets are located
within three kilometers of the processing plant, with recent assays
including 26.0 meters grading 1.04% copper and 0.15 g/t gold.
Drills continue to turn with the objective of delineating the full
extent of mineralization at both Major Tom and E51. A maiden
resource for E51 is expected in the second quarter of 2025.
- Beta Hunt (3.25% GR gold royalty and 1.5% NSR gold
royalty): Royalties from Beta Hunt in Q3 2024 equated to
1,101 GEOs. In September 2024, Westgold declared an inaugural
exploration target for the Fletcher Zone of Beta Hunt totaling 23
to 27 million tonnes at 2.1 to 2.5 g/t Au containing 1.6 to 2.1
million ounces of gold. This compares to the current resource base
at Beta Hunt of 17.7 million tonnes grading 2.74 g/t Au at 1.6
million ounces in the M&I category (inclusive) and 12.9 million
tonnes grading 2.63 g/t Au at 1.1 million ounces in the inferred
category, comprising of the Western Flanks, A Zone, Larkin and
Mason deposits. The Fletcher Zone is a substantial discovery at
Beta Hunt and is interpreted to represent a new gold mineralized
structure parallel to the Western Flanks deposit of the mine, 300
meters to the west. Western Flanks is currently the primary source
of gold ore for Beta Hunt. Across a two-kilometer strike zone, a
minimum of three drill rigs is expected to focus on resource
definition drilling over the near term at the Fletcher Zone.
Westgold is also advancing decline development from Western Flanks
towards the Fletcher Zone to access a potential new mining front.
Separately, the expansion project to achieve consistent mine
throughput at Beta Hunt of 2 million tonnes per annum is expected
to be completed during the first half of 2025. Westgold is
developing a comprehensive infrastructure replacement and upgrade
plan to support the expected higher productivity levels at Beta
Hunt, focusing primarily on electrical, ventilation and water
distribution networks.
- Fosterville (2.0% NSR gold royalty): Royalties from
Fosterville in Q3 2024 equated to 1,254 GEOs. Fosterville is also
currently advancing an upgrade of the primary ventilation system to
sustain the mining rate in the Lower Phoenix zones in future years.
The operator expects the project to be completed by early 2025.
Fosterville continues to focus on productivity gains and cost
control at the mine and the mill to maximize throughput and reduce
unit costs to ensure that the asset remains a sustainable producer
of 175,000 to 200,000 ounces of gold annually.
Latin America:
- Cerro Lindo (65% silver stream): Sales from Cerro
Lindo in Q3 2024 were 6,991 GEOs. Ongoing exploration at Cerro
Lindo is primarily focused on extending the mineralization of near
mine targets known as Orebodies 8B, 9 and 6a, as well as the
Patahuasi Millay target located within Triple Flag’s stream
area.
- Camino Rojo (2.0% NSR gold royalty on oxides): Royalties
from Camino Rojo in Q3 2024 equated to 635 GEOs. In October 2024,
Orla Mining announced an increase in production guidance for Camino
Rojo to 130,000 to 140,000 ounces of gold. This represented the
second increase in production guidance for the asset in 2024,
following the introduction of initial guidance of 110,000 to
120,000 ounces of gold and then a subsequent increase to 120,000 to
130,000 ounces of gold in August 2024. Strong year-to-date
outperformance at Camino Rojo has been driven by improved
recoveries from finer crushing, higher tonnes stacked and increased
processed grade.
- Buriticá (100% silver stream, fixed ratio to gold):
Sales from Buriticá in Q3 2024 were 1,834 GEOs. Throughout 2024,
Buriticá was able to maintain steady operations; however, due to
the ongoing presence of illegal miners, certain areas of the mine
were avoided as a precautionary measure. The mine site continues to
engage closely with the surrounding community on illegal mining
with support by national institutions including the National Police
of Colombia.
North America:
- Young-Davidson (1.5% NSR gold royalty): Royalties from
Young-Davidson in Q3 2024 equated to 711 GEOs. In September 2024,
Alamos narrowed production guidance for 2024 to 180 to 190 thousand
ounces of gold, and reiterated 2025 and 2026 guidance of 180 to 195
thousand ounces of gold for each year.
- Florida Canyon (3.0% NSR gold royalty): Royalties from
Florida Canyon in Q3 2024 equated to 454 GEOs. The previously
announced acquisition of Florida Canyon Gold Inc. by Integra
Resources remains scheduled to close in November 2024.
- Gunnison and Johnson Camp Mine (3.5% to 16.5% copper
stream and 1.5% GR copper royalty): On May 15, 2024, Nuton LLC, a
Rio Tinto venture, announced that it elected to proceed to Stage 2
of a two-stage work program on the use of copper heap leach
technologies for primary sulphide mineralization at Excelsior
Mining’s 100%-owned Johnson Camp Mine (“JCM”) property in Arizona.
Triple Flag owns a 1.5% GR copper royalty on JCM, which is also
within the coverage area of the Company’s separate oxide copper
stream on Excelsior’s flagship Gunnison property. In October 2024,
Excelsior announced that all permits to commence operations at JCM
has been received. This follows the commencement of construction at
JCM in August 2024. First Nuton copper production continues to be
expected in the first half of 2025. The site has an existing and
fully operational SXEW processing plant. Revenue from JCM will be
used to pay back the costs of Stage 2 at Nuton and the fulfillment
of royalty and stream obligations, as well as other project costs.
Under a 2023 Preliminary Economic Assessment, JCM is currently
designed to produce 492 million pounds of copper over a 21-year
mine life based on conventional open pit mining.
- Hope Bay (1.0% NSR gold royalty): Exploration drilling
during the third quarter of 2024 returned strong results in the
Patch 7 area of the Madrid deposit, including 18.3 g/t gold over
16.4 meters and 16.8 g/t gold over 27.3 meters. This area continues
to show excellent continuity as well as grades and thicknesses
greater than average for the Madrid deposit. Agnico Eagle expects
that the 2024 drilling in this area should increase mineral
resources and upgrade the mineral resource classification at
year-end. Further drilling in the fourth quarter of 2024 will be
supported by a newly constructed, 2.3 kilometer surface exploration
track that connects the nearby Madrid infrastructure with Patch 7.
Agnico Eagle highlighted that this track could be used for
potential future development of the Patch 7 area. Agnico Eagle
expects to report results from an internal technical evaluation by
early 2026, including an evaluation on whether to retrofit the
existing Doris mill or build a new mill closer to Madrid.
- South Railroad (2.0% NSR gold and silver royalty,
partial coverage): In October 2024, Orla announced permitting and
construction timelines for the 100%-owned South Railroad heap leach
project located in Nevada. A record of decision for the project is
expected in mid-2026, with first gold pour in 2027. Separately,
Orla is expected to complete a 23,000-meter drill program at South
Railroad in 2024. This program is aimed at testing potential
extensions of known oxide zones, including at the Dark Star deposit
within Triple Flag’s royalty coverage area. Recent assays are
encouraging, highlighting the oxide and sulphide growth potential
of Dark Star, including 0.67 g/t Au over 45.7 meters.
- Fenn-Gib (1.0% to 1.5% NSR gold and silver royalty):
Fenn-Gib is a 100%-owned gold deposit that straddles the Pipestone
fault in Northern Ontario, operated by Mayfair Gold. Conceptually,
the deposit is currently designed to be mined by bulk tonnage, open
pit methods. An updated resource was released in September 2024 of
181 million tonnes grading 0.74 g/t Au at 4.3 million ounces in the
indicated category and 8.9 million tonnes grading 0.49 g/t Au at
141 thousand ounces. A pre-feasibility study remains underway.
Rest of World:
- Impala Bafokeng (70% gold stream): Sales from Impala
Bafokeng in Q3 2024 were 1,381 GEOs. Development of the asset’s
value driver, Styldrift, remains ongoing with a steady ramp-up
expected to deliver improved efficiencies given current market
conditions. During the third quarter of 2024, Impala Platinum
Holdings Limited (“Implats”) commenced a restructuring process to
rationalize and optimize labor deployment across corporate and
operational functions. The integration of processing facilities
across the Western Limb operations of Impala Rustenburg and Impala
Bafokeng has started, resulting in improved plant availability and
recovery. Implats expects monthly milled throughput of 230 thousand
tonnes at Styldrift by the end of its 2027 fiscal year.
- Agbaou (2.5% NSR gold royalty and 3.0% gold stream):
Sales from our royalty interest on Agbaou equated to 164 GEOs in Q3
2024. Sales from our stream interest on Agbaou were 1,339 GEOs,
including 1,202 GEOs related to the period from January 1, 2024, to
August 14, 2024. The current exploration program at Agbaou is the
largest in the asset’s operating history. During the third quarter
of 2024, 8,003 meters were drilled at Agbaou, focused on the North
Pit Extension and Agbaou South.
- Bonikro (3.0% gold stream): Sales from Bonikro in Q3
2024 were 2,036 GEOs, including 1,890 GEOs related to the period
from January 1, 2024, to August 14, 2024. Ongoing exploration at
Bonikro is focused on the Oume and Hire targets, with a total of
20,582 meters drilled in the third quarter of 2024.
- Koné (2.0% NSR gold royalty, partial coverage): In July
2024, Montage Gold Corp. ("Montage") announced that the 100%-owned
Koné gold project in Côte d'Ivoire was fully permitted. In August
2024, Montage completed a C$180 million brokered private placement
to advance the Koné project, which included a new strategic
investment by Zijin Mining in exchange for a 9.9% ownership
interest. Additionally, the Lundin family increased their ownership
interest in Montage to 19.9% from approximately 18% previously. In
October 2024, Montage announced it has secured a $825 million
financing package with Wheaton Precious Metals and Zijin Mining to
fully advance Koné to production. Pro-forma liquidity available to
Montage is now approximately $970 million versus initial capital of
$712 million as per the January 2024 definitive feasibility study
for Koné.
- ATO (25% gold stream and 50% silver stream): Sales from
the ATO streams in Q3 2024 were 1,591 GEOs. On August 1, 2024, the
previously announced merger of Steppe Gold and Boroo Gold was
completed. The completion of this acquisition has established
Steppe Gold as the largest gold producer in Mongolia, providing
further financial strength, asset diversification and scale.
Commissioning of the ATO Phase 2 Expansion project remains on track
for the first half of 2026. On March 15, 2024, Triple Flag entered
into an agreement with Steppe Gold to acquire a prepaid gold
interest. Under the terms of the agreement, the Company made a cash
payment of $5 million to acquire the prepaid gold interest, which
provides for the delivery of 2,650 ounces of gold that will be
delivered by Steppe Gold over five months. Triple Flag expects the
August and September deliveries under the prepaid gold interest to
be received by the end of the fourth quarter of 2024.
- Prieska (0.8% GR royalty and 84% gold and silver stream,
fixed ratio): Orion Minerals Limited (“Orion Minerals”) is
advancing mine scheduling and design work for the fully permitted
Prieska copper and zinc project. The updated feasibility study is
expected to be completed in early 2025.
Conference Call Details
A conference call and live webcast presentation will be held on
November 6, 2024, starting at 9:00 a.m. ET (6:00 a.m. PT) to
discuss these results. The live webcast can be accessed by visiting
the Events and Presentations page on the Company’s website at:
www.tripleflagpm.com. An archived version of the webcast will be
available on the website for one year following the webcast.
Live Webcast:
https://events.q4inc.com/attendee/349088597
Dial-In Details:
Toll-Free (U.S. & Canada): +1 (888)
330-2384
International: +1 (647) 800-3739
Conference ID: 4548984, followed by #
key
Replay (Until November 20):
Toll-Free (U.S. & Canada): +1 (800)
770-2030
International: +1 (647) 362-9199
Conference ID: 4548984, followed by #
key
About Triple Flag Precious Metals
Triple Flag is a pure play, precious-metals‐focused streaming
and royalty company. We offer bespoke financing solutions to the
metals and mining industry with exposure primarily to gold and
silver in the Americas and Australia, with a total of 235 assets,
including 16 streams and 219 royalties. These investments are tied
to mining assets at various stages of the mine life cycle,
including 30 producing mines and 205 development and exploration
stage projects, and other assets. Triple Flag is listed on the
Toronto Stock Exchange and New York Stock Exchange, under the
ticker “TFPM”.
Qualified Person
James Lill, Director, Mining for Triple Flag Precious Metals and
a “qualified person” under NI 43-101 has reviewed and approved the
written scientific and technical disclosures contained in this
press release.
Forward-Looking Information
This news release contains “forward-looking information” within
the meaning of applicable Canadian securities laws and
“forward-looking statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995,
respectively (collectively referred to herein as “forward-looking
information”). Forward-looking information may be identified by the
use of forward-looking terminology such as “plans”, “targets”,
“expects”, “is expected”, “budget”, “scheduled”, “estimates”,
“outlook”, “forecasts”, “projection”, “prospects”, “strategy”,
“intends”, “anticipates”, “believes” or variations of such words
and phrases or terminology which states that certain actions,
events or results “may”, “could”, “would”, “might”, “will”, “will
be taken”, “occur” or “be achieved”. Forward-looking information in
this news release includes, but is not limited to, statements with
respect to the Company’s annual and five-year guidance, the payment
of a quarterly dividend, operational and corporate developments for
the Company, developments in respect of the Company’s portfolio of
royalties and streams and related interests and those developments
at certain of the mines, projects or properties that underlie the
Company’s interests, strengths, characteristics, the conduct of the
conference call to discuss the financial results for the third
quarter of 2024, and our assessments of, and expectations for,
future periods (including, but not limited to, the long-term sales
outlook for GEOs). In addition, any statements that refer to
expectations, intentions, projections or other characterizations of
future events or circumstances contain forward-looking information.
Statements containing forward-looking information are not
historical facts but instead represent management’s expectations,
estimates and projections regarding possible future events or
circumstances.
The forward-looking information included in this news release is
based on our opinions, estimates and assumptions in light of our
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that we
currently believe are appropriate and reasonable in the
circumstances. The forward-looking information contained in this
news release is also based upon a number of assumptions, including
the ongoing operation of the properties in which we hold a stream
or royalty interest by the owners or operators of such properties
in a manner consistent with past practice; the accuracy of public
statements and disclosures made by the owners or operators of such
underlying properties; and the accuracy of publicly disclosed
expectations for the development of underlying properties that are
not yet in production. These assumptions include, but are not
limited to, the following: assumptions in respect of current and
future market conditions and the execution of our business
strategies; that operations, or ramp-up where applicable, at
properties in which we hold a royalty, stream or other interest
continue without further interruption through the period; and the
absence of any other factors that could cause actions, events or
results to differ from those anticipated, estimated, intended or
implied. Despite a careful process to prepare and review the
forward-looking information, there can be no assurance that the
underlying opinions, estimates and assumptions will prove to be
correct. Forward-looking information is also subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking information. Such risks, uncertainties and other
factors include, but are not limited to, those set forth under the
caption “Risk and Risk Management” in our management’s discussion
and analysis in respect of the third quarter of 2024 and the
caption “Risk Factors” in our most recently filed annual
information form, each of which is available on SEDAR+ at
www.sedarplus.ca and on EDGAR at www.sec.gov. In addition, we note
that mineral resources that are not mineral reserves do not have
demonstrated economic viability and inferred resources are
considered too geologically speculative for the application of
economic considerations.
Although we have attempted to identify important risk factors
that could cause actual results or future events to differ
materially from those contained in the forward-looking information,
there may be other risk factors not presently known to us or that
we presently believe are not material that could also cause actual
results or future events to differ materially from those expressed
in such forward-looking information. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such information. Accordingly, readers should not place undue
reliance on forward-looking information, which speaks only as of
the date made. The forward-looking information contained in this
news release represents our expectations as of the date of this
news release and is subject to change after such date. We disclaim
any intention or obligation or undertaking to update or revise any
forward-looking information whether as a result of new information,
future events or otherwise, except as required by applicable
securities laws. All of the forward-looking information contained
in this news release is expressly qualified by the foregoing
cautionary statements.
Cautionary Statement to U.S. Investors
Information contained or referenced in this press release or in
the documents referenced herein concerning the properties,
technical information and operations of Triple Flag has been
prepared in accordance with requirements and standards under
Canadian securities laws, which differ from the requirements of the
U.S. Securities and Exchange Commission (“SEC”) under subpart 1300
of Regulation S-K (“S-K 1300”). Because the Company is eligible for
the Multijurisdictional Disclosure System adopted by the SEC and
Canadian Securities Administrators, Triple Flag is not required to
present disclosure regarding its mineral properties in compliance
with S-K 1300. Accordingly, certain information contained in this
press release may not be comparable to similar information made
public by U.S. companies subject to reporting and disclosure
requirements of the SEC.
Technical and Third-Party Information
Triple Flag does not own, develop or mine the underlying
properties on which it holds stream or royalty interests. As a
royalty or stream holder, Triple Flag has limited, if any, access
to properties included in its asset portfolio. As a result, Triple
Flag is dependent on the owners or operators of the properties and
their qualified persons to provide information to Triple Flag and
on publicly available information to prepare disclosure pertaining
to properties and operations on the properties on which Triple Flag
holds stream, royalty or other similar interests. Triple Flag
generally has limited or no ability to independently verify such
information. Although Triple Flag does not believe that such
information is inaccurate or incomplete in any material respect,
there can be no assurance that such third-party information is
complete or accurate.
Endnotes
Endnote 1: Gold Equivalent Ounces (“GEOs”)
GEOs are a non-IFRS measure that is based on stream and royalty
interests and calculated on a quarterly basis by dividing all
revenue from such interests for the quarter by the average gold
price during such quarter. The gold price is determined based on
the LBMA PM fix. For periods longer than one quarter, GEOs are
summed for each quarter in the period. Management uses this measure
internally to evaluate our underlying operating performance across
our stream and royalty portfolio for the reporting periods
presented and to assist with the planning and forecasting of future
operating results. GEOs are intended to provide additional
information only and do not have any standardized definition under
IFRS Accounting Standards and should not be considered in isolation
or as a substitute for measures of performance prepared in
accordance with IFRS Accounting Standards. The measures are not
necessarily indicative of gross profit or operating cash flow as
determined under IFRS Accounting Standards. Other companies may
calculate these measures differently. The following table
reconciles GEOs to revenue, the most directly comparable IFRS
Accounting Standards measure:
Three months ended
Nine months ended
September 30
September 30
($ thousands, except average gold price
and GEOs information)
2024
2023
2024
2023
Revenue
73,669
49,425
194,778
152,285
Average gold price per ounce
2,474
1,928
2,296
1,930
GEOs
29,773
25,629
84,759
78,844
Endnote 2: Adjusted Net Earnings and Adjusted Net Earnings
per Share
Adjusted net earnings is a non‑IFRS financial measure, which
excludes the following from net earnings:
- impairment charges, write-downs, and reversals, including
expected credit losses;
- gain/loss on sale or disposition of assets/mineral
interests;
- foreign currency translation gains/losses;
- increase/decrease in fair value of investments;
- non-recurring charges; and
- impact of income taxes on these items.
Management uses this measure internally to evaluate our
underlying operating performance for the reporting periods
presented and to assist with the planning and forecasting of future
operating results. Management believes that adjusted net earnings
is a useful measure of our performance because impairment charges,
write-downs, and reversals, including expected credit losses,
gain/loss on sale or disposition of assets/mineral interests,
foreign currency translation gains/losses, increase/decrease in
fair value of investments, and non-recurring charges do not reflect
the underlying operating performance of our core business and are
not necessarily indicative of future operating results. The tax
effect is also excluded to reconcile the amounts on a post-tax
basis, consistent with net earnings. Management’s internal budgets
and forecasts and public guidance do not reflect the types of items
we adjust for. Consequently, the presentation of adjusted net
earnings enables users to better understand the underlying
operating performance of our core business through the eyes of
management. Management periodically evaluates the components of
adjusted net earnings based on an internal assessment of
performance measures that are useful for evaluating the operating
performance of our business and a review of the non-IFRS measures
used by industry analysts and other streaming and royalty
companies. Adjusted net earnings is intended to provide additional
information only and does not have any standardized definition
under IFRS Accounting Standards and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS Accounting Standards. The measures are not
necessarily indicative of gross profit or operating cash flow as
determined under IFRS Accounting Standards. Other companies may
calculate these measures differently. The following table
reconciles adjusted net earnings to net earnings, the most directly
comparable IFRS Accounting Standards measure.
Reconciliation of Net Earnings to Adjusted Net Earnings
Three months ended
Nine months ended
September 30
September 30
($ thousands, except share and per share
information)
2024
2023
2024
2023
Net earnings (loss)
$
29,649
$
(6,041
)
$
(64,364
)
$
26,527
Impairment charges and expected credit
losses1
—
28,081
148,034
28,081
Loss on disposal of mineral interests2
—
—
—
1,000
Foreign currency translation (gain)
loss
(10
)
327
(105
)
275
(Increase) decrease in fair value of
investments
(35
)
1,919
1,731
1,988
Income tax effect
7
(3,871
)
(6,179
)
(3,617
)
Adjusted net earnings
$
29,611
$
20,415
$
79,117
$
54,254
Weighted average shares outstanding –
basic
201,456,258
201,839,092
201,282,930
198,589,730
Net earnings (loss) per share
$
0.15
$
(0.03
)
$
(0.32
)
$
0.13
Adjusted net earnings per share
$
0.15
$
0.10
$
0.39
$
0.27
- Impairment charges and expected credit losses for the nine
months ended September 30, 2024, are largely due to impairments
taken on the Nevada Copper stream and related interests as well as
impairments taken on the Moss stream and related interests.
Impairment charges and expected credit losses for the three and
nine months ended September 30, 2023, are largely due to
impairments taken on the Renard Mine and related interests,
operated by the Stornoway Diamond Corporation.
- Loss on disposal of mineral interests for the nine months ended
September 30, 2023 represent the loss on the Eastern Borosi NSR due
to a buyback exercised by the operator.
Endnote 3: Adjusted EBITDA
Adjusted EBITDA is a non‑IFRS financial measure, which excludes
the following from net earnings:
- income tax expense;
- finance costs, net;
- depletion and amortization;
- impairment charges, write-downs, and reversals, including
expected credit losses;
- gain/loss on sale or disposition of assets/mineral
interests;
- foreign currency translation gains/losses;
- increase/decrease in fair value of investments;
- non-cash cost of sales related to prepaid gold interests and
other; and
- non‑recurring charges
Management believes that adjusted EBITDA is a valuable indicator
of our ability to generate liquidity by producing operating cash
flow to fund working capital needs, service debt obligations and
fund acquisitions. Management uses adjusted EBITDA for this
purpose. Adjusted EBITDA is also frequently used by investors and
analysts for valuation purposes, whereby adjusted EBITDA is
multiplied by a factor or ‘‘multiple’’ that is based on an observed
or inferred relationship between adjusted EBITDA and market values
to determine the approximate total enterprise value of a
company.
In addition to excluding income tax expense, finance costs net,
and depletion and amortization, adjusted EBITDA also removes the
effect of impairment charges, write-downs, and reversals, including
expected credit losses, gain/loss on sale or disposition of
assets/mineral interests, foreign currency translation
gains/losses, increase/decrease in fair value of investments,
non-cash cost of sales related to prepaid gold interests and other
and non-recurring charges. We believe these items provide a greater
level of consistency with the adjusting items included in our
adjusted net earnings reconciliation. We believe this additional
information will assist analysts, investors and our shareholders to
better understand our ability to generate liquidity from operating
cash flow, by excluding these amounts from the calculation as they
are not indicative of the performance of our core business and not
necessarily reflective of the underlying operating results for the
periods presented.
Adjusted EBITDA is intended to provide additional information to
investors and analysts and does not have any standardized
definition under IFRS Accounting Standards and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS Accounting Standards.
Adjusted EBITDA is not necessarily indicative of operating profit
or operating cash flow as determined under IFRS Accounting
Standards. Other companies may calculate adjusted EBITDA
differently. The following table reconciles adjusted EBITDA to net
earnings, the most directly comparable IFRS Accounting Standards
measure.
Reconciliation of Net Earnings to Adjusted EBITDA
Three months ended
Nine months ended
September 30
September 30
($ thousands)
2024
2023
2024
2023
Net earnings (loss)
$
29,649
$
(6,041
)
$
(64,364
)
$
26,527
Finance costs, net
1,499
539
4,172
3,117
Income tax expense (recovery)
1,272
(3,532
)
4,250
(540
)
Depletion and amortization
21,578
16,904
56,629
48,756
Impairment charges and expected credit
losses1
—
28,081
148,034
28,081
Loss on disposal of mineral interests2
—
—
—
1,000
Non-cash cost of sales related to prepaid
gold interests and other
9,494
1,728
14,130
12,209
Foreign currency translation (gain)
loss
(10
)
327
(105
)
275
(Increase) decrease in fair value of
investments
(35
)
1,919
1,731
1,988
Adjusted EBITDA
$
63,447
$
39,925
$
164,477
$
121,413
- Impairment charges and expected credit losses are largely due
to impairments taken on the Nevada Copper stream and related
interests as well as impairments taken on the Moss stream and
related interests.
- Loss on disposal of mineral interests for the nine months ended
September 30, 2023 represents the loss on the Eastern Borosi NSR
due to a buyback exercised by the operator.
Endnote 4: Gross Profit Margin and Asset Margin
Gross profit margin is an IFRS Accounting Standards financial
measure which we define as gross profit divided by revenue. Asset
margin is a non-IFRS financial measure which we define by taking
gross profit and adding back depletion and non-cash cost of sales
related to prepaid gold interests and other and dividing by
revenue. We use gross profit margin to assess profitability of our
metal sales and asset margin to evaluate our performance in
increasing revenue, containing costs and providing a useful
comparison to our peers. Asset margin is intended to provide
additional information only and does not have any standardized
definition under IFRS Accounting Standards and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS Accounting Standards.
The following table reconciles asset margin to gross profit margin,
the most directly comparable IFRS Accounting Standards measure:
Three months ended
Nine months ended
September 30
September 30
($ thousands except Gross profit margin
and Asset margin)
2024
2023
2024
2023
Revenue
$
73,669
$
49,425
$
194,778
$
152,285
Less: Cost of sales
(37,006
)
(23,616
)
(85,952
)
(76,656
)
Gross profit
36,663
25,809
108,826
75,629
Gross profit margin
50%
52%
56%
50%
Gross profit
$
36,663
$
25,809
$
108,826
$
75,629
Add: Depletion
21,492
16,811
56,368
48,479
Add: Non-cash cost of sales related to
prepaid gold interests and other
9,494
1,728
14,130
12,209
67,649
44,348
179,324
136,317
Revenue
73,669
49,425
194,778
152,285
Asset margin
92%
90%
92%
90%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241105527223/en/
Investor Relations: David Lee Vice President, Investor
Relations Tel: +1 (416) 304-9770 Email: ir@tripleflagpm.com
Media: Gordon Poole, Camarco Tel: +44 (0) 7730 567 938
Email: tripleflag@camarco.co.uk
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