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TORONTO--(BUSINESS WIRE)--Nov 7, 2022--
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 2022 and declared a dividend of US$0.05 per common share to be paid on December 15, 2022. Unless otherwise stated, all dollar amounts are expressed in US dollars.
“Our results from the third quarter of 2022 were broadly in-line with expectations and we are expecting our full-year GEOs sales to be towards the low end of our guidance range of 88,000 – 92,000 GEOs” commented Shaun Usmar, CEO. “Our portfolio has delivered year-over-year GEOs increases in gold streams and royalties to date. Silver GEOs have lagged, however, primarily due to changes in delivery timing from Cerro Lindo. Cerro Lindo is producing silver in concentrate in-line with our expectations for 2022, however a combination of a higher gold-silver ratio and changes in the quotational period associated with offtake contracts have impacted timing of our stream deliveries by several months on average. This points to a short-term timing impact in contrast to the robust underlying operational performance of the mine and portfolio as a whole. Our asset margins remain strong at 90%, our cash costs of $165 per GEO remain low, and our production base is diversified across 15 producing assets.With nearly 90% of our assets situated in the lowest half of their respective industry cost curves, our mining partners are well-positioned to weather inflationary pressures and the current volatile commodity price environment.
“We are also pleased to announce that during the quarter, shares of Triple Flag began trading on the New York Stock Exchange under the ticker TFPM, which is the same ticker under which we trade on the Toronto Stock Exchange. We enjoyed ringing the opening bell at the New York Stock Exchange on October 21, a recording of which you can view through our social media. This listing is another step in Triple Flag’s value-creation journey that we are happy to have achieved.”
Q3 2022 Financial Highlights
GEOs Sold by Commodity, Revenue by Commodity, and Financial Highlights Summary Tablea
Three Months Ended September 30
Nine Months Ended September 30
($ thousands except GEOs, Asset Margin, Cash Costs per GEO, and per share numbers)
2022
2021
2022
2021
GEOs 1
Gold
11,918
10,154
33,587
30,529
Silver
6,134
9,439
21,368
29,643
Other
1,471
1,153
4,188
2,825
Total
19,523
20,746
59,143
62,997
Revenue
Gold
20,605
18,171
61,205
54,981
Silver
10,605
16,891
39,159
53,363
Other
2,544
2,064
7,635
5,087
Total
33,754
37,126
107,999
113,431
Net Earnings
12,815
5,128
39,626
32,146
Net Earnings per Share
0.08
0.03
0.25
0.22
Adjusted Net Earnings 2
13,258
13,714
43,583
44,155
Adjusted Net Earnings per Share 2
0.09
0.09
0.28
0.30
Operating Cash Flow
25,356
29,455
81,655
91,018
Operating Cash Flow per Share
0.16
0.19
0.52
0.63
Adjusted EBITDA 3
26,054
29,549
84,655
94,605
Asset Margin 4
90%
91%
91%
91%
Cash Costs per GEO 5
165
166
169
162
Corporate Updates
Q3 2022 Portfolio Updates
Australia:
Latin America:
North America:
Rest of World:
Conference Call Details
Triple Flag has scheduled an investor conference call at 10:00 a.m. ET (7:00 a.m. PT) on Tuesday, November 8, 2022, to discuss the results reported in today’s earnings announcement. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company’s website at: www.tripleflagpm.com. Participants will be able to ask questions via the telephone dial-in.
Date and Time:
November 8 th, 2022, at 10:00 a.m. ET (7:00 a.m. PT)
Live Webcast:
Dial-In Details:
Toll-Free (U.S. & Canada): +1 (888) 330-2384
International: +1 (647) 800-3739
Conference ID: 4548984
Replay (Until November 22 nd ):
Toll-Free (U.S. & Canada): +1 (800) 770-2030
International: +1 (647) 362-9199
Conference ID: 4548984
Mr. James Dendle, Vice President, Evaluations & Investor Relations, is a “qualified person” as such term is defined under National Instrument 43-101 and has reviewed and approved the technical information disclosed in this news release.
About Triple Flag
Triple Flag is a pure play, gold-focused, emerging senior 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 80 assets, including 9 streams and 71 royalties. These investments are tied to mining assets at various stages of the mine life cycle, including 15 producing mines and 65 development and exploration stage projects. Triple Flag is listed on the Toronto Stock Exchange and New York Stock Exchange, under the ticker “TFPM”.
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”). [NTD: US references should be included in all press releases going forward.] 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”. Our assessments of, and expectations for, future periods (including, but not limited to, our 2022 guidance and long-term production outlook for GEOs, our dividend policy, and our outlook for the mining sector), are considered forward-looking information. 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 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 Factors” in our annual information form as filed from time to time on SEDAR at www.sedar.com. For clarity, 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 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.
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 or 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 and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures are not necessarily indicative of gross profit or operating cash flow as determined under IFRS. Other companies may calculate these measures differently. The following table reconciles GEOs to revenue, the most directly comparable IFRS measure.
2022
($ thousands, except average gold price and GEOs information)
Three months
ended September 30
Three months
ended June 30
Three months
ended March 31
Nine months
ended September 30
Revenue
33,754
36,490
37,755
Average gold price per ounce
1,729
1,871
1,877
GEOs
19,523
19,507
20,113
59,143
2021
($ thousands, except average gold price and GEOs information)
Three months
ended September 30
Three months
ended June 30
Three months
ended March 31
Nine months
endedSeptember 30
Revenue
37,126
40,939
35,366
Average gold price per ounce
1,790
1,816
1,794
GEOs
20,746
22,537
19,714
62,997
Endnote 2: Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) per Share
Adjusted net earnings (loss) is a non‑IFRS financial measure, which excludes the following from net earnings (loss):
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 (loss) is a useful measure of our performance because impairment charges, gain/loss on sale or disposition of assets/mineral interests, foreign currency translation gains/losses, increase/decrease in fair value of assets/investments and non-recurring charges (such as IPO readiness costs) 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 (loss) 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 (loss) is intended to provide additional information only and does not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measures are not necessarily indicative of gross profit or operating cash flow as determined under IFRS. Other companies may calculate these measures differently. The following table reconciles adjusted net earnings to net earnings, the most directly comparable IFRS measure.
Reconciliation of Net Earnings to Adjusted Net Earnings
($ thousands, except share and
Three months ended
September 30
Nine months ended
September 30
per share information)
2022
2021
2022
2021
Net earnings
$12,815
$5,128
$39,626
$32,146
Gain on disposal of mineral interests
-
-
(2,099)
-
Loss on derivatives
-
-
-
297
Foreign currency translation losses
136
46
289
24
Decrease in fair value of investments
522
8,945
5,014
10,846
Increase in fair value of prepay
(215)
-
(215)
-
IPO readiness costs 1
-
-
-
670
Income tax effect
-
(405)
968
172
Adjusted net earnings
$13,258
$13,714
$43,583
$44,155
Weighted average shares outstanding - basic
155,970,318
156,192,715
156,003,665
145,284,500
Net earnings per share
$ 0.08
$ 0.03
$ 0.25
$ 0.22
Adjusted net earnings per share
$ 0.09
$ 0.09
$ 0.28
$ 0.30
1 Reflects charges related to a potential U.S. listing that was not pursued.
Endnote 3: Adjusted EBITDA
Adjusted EBITDA is a non‑IFRS financial measure, which excludes the following from net earnings:
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, gain/loss on sale or disposition of assets/mineral interests, foreign currency translation gains/losses, increase/decrease in fair value of assets/investments 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, with the exception that these amounts are adjusted to remove any impact of income tax expense as they do not affect adjusted EBITDA. 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 and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Adjusted EBITDA is not necessarily indicative of operating profit or operating cash flow as determined under IFRS. Other companies may calculate adjusted EBITDA differently. The following table reconciles adjusted EBITDA to net earnings, the most directly comparable IFRS measure.
Three months ended
September 30
Nine months ended
September 30
($ thousands)
2022
2021
2022
2021
Net earnings
$12,815
$5,128
$39,626
$32,146
Finance costs, net
262
494
1,241
5,071
Income tax expense
1,624
1,334
5,036
4,636
Depletion and amortization
10,910
13,602
35,763
40,915
Gain on disposal of mineral interests
-
-
(2,099)
-
Loss on derivatives
-
-
-
297
Foreign currency translation loss
136
46
289
24
Decrease in fair value of investments
522
8,945
5,014
10,846
Increase in fair value of prepay
(215)
-
(215)
IPO readiness costs 1
-
-
-
670
Adjusted EBITDA
$26,054
$29,549
$84,655
$94,605
1 Reflects charges related to a U.S. listing that was not pursued.
Endnote 4: Gross Profit Margin and Asset Margin
Gross profit margin is an IFRS financial measure which we define as gross profit divided by revenue. Asset margin is a non-IFRS financial measure which we define by taking gross profit and adding back depletion and dividing by revenue. We use gross profit margin to assess profitability of our metal sales and use asset margin to evaluate our performance in increasing revenue and containing costs and providing a useful comparison to our peers. Asset margin is intended to provide additional information only and does not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The following table reconciles asset margin to gross profit margin, the most directly comparable IFRS measure:
($ thousands except Gross profit
Three months ended
September 30
Nine months ended
September 30
Margin and Asset margin)
2022
2021
2022
2021
Revenue
$33,754
$37,126
$107,999
$113,431
Cost of sales
14,034
16,946
45,453
50,829
Gross profit
19,720
20,180
62,546
62,602
Gross profit margin
58%
54%
58%
55%
Gross profit
$19,720
$20,180
$ 62,546
$ 62,602
Add: Depletion
10,817
13,502
35,481
40,616
30,537
33,682
98,027
103,218
Revenue
33,754
37,126
107,999
113,431
Asset margin
90%
91%
91%
91%
Endnote 5: Cash Costs and Cash Costs per GEO
Cash costs and cash costs per GEO are non-IFRS measures with no standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. Cash costs is calculated by starting with total cost of sales, then deducting depletion. Cash costs is then divided by GEOs sold, to arrive at cash costs per GEO. Cash costs and cash costs per GEO are only intended to provide additional information to investors and analysts and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Management uses cash costs and cash costs per GEO to evaluate our ability to generate positive cash flow from our portfolio of assets. Management and certain investors also use this information to evaluate the Company’s performance relative to peers who present this measure on a similar basis. The following table reconciles cash costs and cash costs per GEO to cost of sales, the most directly comparable IFRS measure:
($ thousands, except GEOs
Three months ended
September 30
Nine months ended
September 30
and cash costs per GEO)
2022
2021
2022
2021
Cost of sales
$14,034
$16,946
$45,453
$50,829
Less: Depletion
10,817
13,502
35,481
40,616
Cash costs
3,217
3,444
9,972
10,213
GEOs
19,523
20,746
59,143
62,997
Cash costs per GEO
165
166
169
162
a Results are unaudited.
b Triple Flag’s royalty relates to Talon Metals Corp.’s interest in the Tamarack project which is premised to reach 60% after full earn-in by Talon. Talon’s interest is currently at 51%.
View source version on businesswire.com:https://www.businesswire.com/news/home/20221107006114/en/
CONTACT: Inquiries:Investor Relations:
James Dendle
Vice President, Evaluations & Investor Relations
Tel: +1 (416) 304-9770
Email:ir@tripleflagpm.comMedia:
Gordon Poole, Camarco
Tel: +44 (0) 7730 567 938
Email:tripleflag@camarco.co.uk
KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: MINING/MINERALS NATURAL RESOURCES
SOURCE: Triple Flag Precious Metals Corp.
Copyright Business Wire 2022.
PUB: 11/07/2022 08:00 PM/DISC: 11/07/2022 08:02 PM
http://www.businesswire.com/news/home/20221107006114/en