Triple Flag Precious Metals (TFPM) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $63.6M with 27,192 GEOs sold, up 2% year-over-year, supporting 2024 guidance of 105,000–115,000 GEOs and projecting 135,000–145,000 GEOs by 2028.

• Operating cash flow reached $49.4M, up 21% year-over-year, with a 25% increase in cash flow per share.

• Net loss of $111.4M for Q2 2024, driven by $141.8M in impairment charges related to Nevada Copper and Moss streams; adjusted net earnings were $26.3M, up 42% year-over-year.

• Announced accretive acquisitions, including a $53M gold stream on Agbaou and Bonikro and an $8M royalty interest in Tamarack.

• Leadership transition underway: Sheldon Vanderkooy to become CEO in Q4 2024, with new CFO and COO appointments.

Financial highlights

• Q2 2024 revenue: $63.6M (Q2 2023: $52.6M); GEOs sold: 27,192 (Q2 2023: 26,616); gross profit: $38.9M (Q2 2023: $26.9M).

• Adjusted EBITDA: $53.0M (Q2 2023: $42.1M); adjusted net earnings: $26.3M ($0.13/share) vs. $18.6M ($0.09/share) in Q2 2023.

• Operating cash flow: $49.4M ($0.25/share), up from $40.9M ($0.20/share) year-over-year.

• Asset margin: 92% (Q2 2023: 91%); gross profit margin: 61% (Q2 2023: 51%).

• Dividend increased by 5% to $0.055 per share quarterly ($0.22 annualized), third consecutive annual increase.

Outlook and guidance

• 2024 GEOs sales guidance reaffirmed at 105,000–115,000; 2028 outlook raised to 135,000–145,000 GEOs, driven by Northparkes, ATO Phase II, and new streams.

• H2 2024 expected to benefit from higher-grade Northparkes ore.

• Guidance incorporates development of new and existing assets, including E48 sub-level cave at Northparkes and projects like Eskay Creek and Hope Bay.

• New gold streams on Agbaou and Bonikro expected to deliver minimum annual stream deliveries through 2027, with exposure to mine life extension and exploration upside.