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DATE

Thursday, August 7, 2025, at 9 a.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — Sheldon Vanderkooy
  • Chief Financial Officer — Eban Bari

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TAKEAWAYS

  • Gold Equivalent Ounces (GEOs) Sold-- Nearly 29,000 GEOs were sold in Q2 2025, contributing to a record adjusted EBITDA of $76 million and operating cash flow of $0.38 per share.
  • Operating Margin-- Operating margins consistently exceeded 90% in Q2 2025, highlighting cost discipline in the gold and silver price environment.
  • First-Half GEO Production-- Over 57,000 GEOs were produced in the first half of 2025, which management states keeps the company on track for its 2025 sales guidance of 105,115 GEOs for the year.
  • Dividend Increase-- Annualized dividend was raised to $0.23 per share, representing a 5% increase on an annualized basis; this marks the fourth consecutive annual dividend increase since listing in 2021.
  • Balance Sheet-- The company exited the quarter with zero debt.
  • Recent Acquisitions-- Four new assets were added in 2025: a royalty at the Johnson Camp copper mine in Arizona, interests in the Tre Cervatas lithium project in Argentina, and royalties in the Arcata and Azuca silver mines in Peru.
  • Arthur Gold Project-- The company acquired a 1% NSR royalty on the Nevada-based Arthur Gold Project, previously known as the expanded Silicon Project, which management describes as having "exceptional long-term growth potential."
  • Beta Hunt/Fletcher Zone Update-- A maiden resource of 2.3 million ounces was declared at Fletcher Zone in Q2 2025, nearly doubling Beta Hunt's known resource base. Triple Flag holds 4.75% total royalty exposure at Beta Hunt.
  • Revenue Composition-- All revenues derived from precious metals, with roughly two-thirds from gold; 90% of revenue was generated from assets located in Australia and the Americas.
  • Major Contributors-- North Park produced a record quarter due to processing higher open-pit grades from stockpile ore; Cerro Lindo revenues benefited from a rapid increase in silver prices.
  • Upcoming Catalysts-- Management highlighted anticipated production startups at Johnson Camp Mine, Arcata, and Tre Cervatas, and development milestones at E48 sublevel cave (North Parks), Coney, Hope Bay, and Arthur projects.
  • ATO Stream Receivable-- There is approximately $8 million outstanding in arrears on the Steppe Gold stream, which is subject to an ongoing legal dispute, but management does not view this as material for 2025 guidance.

SUMMARY

Triple Flag(TFPM 7.47%) achieved record GEO sales, adjusted EBITDA, and operating cash flow per share, while maintaining a strong balance sheet and increasing its annual dividend. The company expanded its portfolio by securing royalties in new and development-stage assets, including exposure to the Nevada-based Arthur Gold Project and additional interests in North and South American operations. Management stated that its 2025 guidance remains intact even if no additional ounces are received from the ATO stream, clarifying the immateriality of the legal dispute with Steppe Gold to near-term performance.

  • Management uses operating cash flow per share as their primary performance metric.
  • There was specific mention of the company's post-acquisition integration success, with assets from the Mavericks Metals acquisition now contributing as significant revenue drivers.
  • Management stated that future M&A and royalty/stream pipeline activity would remain focused on precious metals in the Americas and Australia, with lithium or battery metals considered only opportunistically.
  • Upcoming company events include a three-year outlook to be delivered in September and an initial Fletcher Zone reserve estimate expected in Westgold's fiscal year ending June 30, 2026.
  • Vanderkooy emphasized, "even if we don't get a single ounce from ATO, I'm still comfortable with our guidance for 2025."

INDUSTRY GLOSSARY

  • NSR (Net Smelter Return) Royalty: A royalty calculated as a percentage of the net revenue from the sale of minerals produced at a mine, after deducting certain allowable costs related to smelting and refining.
  • GEO (Gold Equivalent Ounce): A unit of measurement used by precious metals companies to standardize production and sales of multiple metals as if they were equivalent to gold, typically based on current market pricing ratios.
  • Tuck-in Acquisition: A relatively small strategic acquisition completed to supplement or complement a company's existing portfolio, often focused on assets close to production or within the same geographic region.

Full Conference Call Transcript

Sheldon Vanderkooy: Thank you, Kathleen. Good morning, everyone, and thank you for joining us to discuss Triple Flag's 2025 results. Today, I'm joined by our CFO, Eban Bari. Triple Flag achieved another record quarter in Q2. Sales of nearly 29,000 GEOs drove record adjusted EBITDA of $76 million and most importantly, record operating cash flow of $0.38 per share. Given our strong margins that consistently exceed 90%, these record results demonstrate Triple Flag's ability to realize higher per share cash flows in today's strong gold and silver price environment. This strong performance has also positioned us well to deliver our 2025 guidance of 105,115 ounces over the balance of the year.

On the deal front, we have maintained a solid pace of accretive acquisitions during the first half of 2025. Most of these transactions have focused on tuck-in investments into near-term production starts, including the Tre Cervatas Lithia mine in Argentina, the Arcata and Azuca silver mines in Peru, as well as the newly announced additional 1.5% gross revenue royalty on the Johnson Camp copper mine in Arizona. All of these three acquisitions are expected to deliver first revenue in the 1% NSR royalty on the world-class Arthur Gold Project located in Nevada, formerly known as the expanded Silicon Project.

Operated by AngloGold Ashanti, this project offers exceptional long-term growth potential underpinned by a rapidly expanding resource base and significant exploration upside. This asset represents tremendous value for our shareholders, and I would like to thank the Triple Flag and Origin teams for their hard work and dedication in completing this transaction. We are very excited about the Arthur project. AngloGold's CEO made quite positive statements about Arthur last week, and I think that our shareholders are really going to benefit from our exposure to this project in the future.

Turning back to organic growth, the most powerful and value-driving aspect of the royalty and streaming model is the free carried optionality that Triple Flag has on our assets, as our operators continue to search for new exploration discoveries, replace reserves, and expand their assets. Triple Flag has 4.75% exposure to Westgold's Beta Hunt mine in Australia. In Q2, Westgold declared a maiden resource for the Fletcher Zone of 2.3 million ounces. This nearly doubles the total resource base at Beta Hunt, with significant exploration potential at depth and along strike.

Westgold's rapid progress from the announcement of the initial discovery target at the Fletcher Zone last September to the declaration of a maiden resource in June is a testament to the quality and embedded value within our portfolio. I'll touch more on the Fletcher Zone later on in the presentation. Finally, an important pillar of our capital allocation strategy remains returns to shareholders. We are pleased to announce our fourth consecutive annual increase of our dividend since we listed in 2021. I will now ask Eban to discuss our financials for 2025.

Eban Bari: Thank you, Sheldon. As noted, we had a very strong second quarter with the portfolio producing nearly 29,000 GEOs, resulting in a record first half of over 57,000 GEOs. This puts Triple Flag right on track to achieve our 2025 sales guide. These strong volumes were delivered amid the backdrop of record precious metals prices as well as continuing strong margins. Accordingly, we are pleased to highlight that operating cash flow per share, the single most important metric we focus on as a company, has increased by over 50% year over year to a new quarterly record. We view a progressively growing dividend as a core part of our capital allocation strategy.

Our dividend has been increased to 23¢ US on an annualized basis, up 5% from the prior dividend. I'm proud that we have increased our dividend every year since our IPO. Lastly, I'd like to comment on our balance sheet. We exited the quarter with zero debt. And even with the capital deployed early in Q3 for the '3 at current metal price. Overall, a clean and strong balance sheet, robust operating cash flows, and total liquidity available of nearly a billion dollars gives us the capital to continue to deploy dollars into accretive opportunities to drive future growth for the benefit of shareholders. Moving ahead, we highlight three key aspects where investments exist that remain unchanged.

Namely, top-tier assets, precious metals focus, and a portfolio which is predominantly centered in Australia and the Americas. North Parks and Fairwindow continue to be the two largest contributors to revenue. North Park had a record quarter due to processing of higher open pit grades from stockpile ore while Cerro Lindo received strong benefit from the rapid rise in silver prices towards the end of the quarter. Overall, revenues derived 100% from precious metals with roughly two-thirds from gold. This pure play exposure ranks amongst the highest in the sector and offers investors exposure to the many favorable tailwinds for both gold and silver.

Finally, our portfolio is predominantly located in mining-friendly jurisdictions, a key criteria we look to expand our portfolio through acquisition. In Q2, 90% of our revenue was derived from assets in Australia and The Americas. I will now turn it over to Sheldon to discuss Beta Hunt and the new maiden resource at the Fletcher Zone.

Sheldon Vanderkooy: Thank you, Eban. Beta Hunt is an underground gold mine located in Western Australia and operated by Westgold. We have several gold royalty interests on the asset, including a 3.25% on gross revenue, and a 1.5% NSR. These royalties were acquired through our acquisition of Mavericks Metals in early 2023, and last quarter represented our third largest source of revenue. The positive news flow from this asset has been meaningful over the past year. In addition to exploration success currently anchored by the Fletcher Zone maiden resource, Westgold is advancing an expansion project for the asset to achieve consistent mine throughput of 2 million tons per annum.

With the declaration of a maiden resource of 2.3 million ounces at Fletcher Zone, nearly doubled the previous resource base at Beta Hunt, there is also now scope for further expansion potential above 2 million tons per annum. This is particularly important as the Fletcher Zone is located only 50 meters from the Western Flank system, which is currently the main source of ore at Beta Hunt. This maiden resource was achieved from only one kilometer of a known two-kilometer strike, highlighting the potential for upside at Beta Hunt. The resource is also open at depth.

Given the significant discovery, we look forward to seeing how the Fletcher Zone will ultimately be optimized within an expanded Beta Hunt operation by Westgold. Several catalysts are upcoming, which should provide a preview of the near-term future, including a three-year company-wide outlook in September, and an initial reserve for the Fletcher Zone in Westgold's fiscal year 2026. To close, I'd like to state that we had a strong first half in 2025, and are well positioned to achieve 2025 guidance over the remainder of the year. We saw robust growth in operating cash flow per share, and delivered both tuck-in and large-scale transactions that will benefit our shareholders for decades to come.

Triple Flag has a strong track record of GEO growth, and we look forward to seeing the delivery of several catalysts across our portfolio. These include the commencement of production at Johnson Camp Mine, Arcata, and Tre Cervatas, as well as development progress with the E48 sublevel cave at North Parks, and at the Coney, Hope Bay, and Arthur projects. I'd also like to specifically call out some positive news announced by our operators yesterday. Centerra announced that it will rapidly advance its Nevada Goldfield project. Triple Flag holds a 5% royalty on the Gemfield deposit, which accounts for approximately 80% of Goldfield production. Talend Metals also announced very interesting drill results on its Minnesota Tamarac project.

These results are within our royalty coverage. Looking ahead, our transaction pipeline remains very robust, and we are excited by the significant opportunity ahead for our business to deliver further value. Kathleen? Please open the floor to questions.

Operator: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press 1 on your telephone keypad to raise your hand and join the queue. If you are called upon to ask your question and listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, please press 1 to join the queue. Your first question comes from the line of Josh Wolfson of RBC Capital Markets. Line is now open.

Josh Wolfson: Yes. Thank you very much. First question is just on Gunasan. You know, the royalty additional purchase here looks to be done at a very attractive price. You know, sub three times cash flow based on what the company's guidance is. I'm just wondering, from the overall royalty, you know, what should we be expecting as a steady state production that too is estimated? Thank you.

Sheldon Vanderkooy: Thanks, Josh. Yeah. So the Johnson Camp royalty, it's not a large amount in total. As you pointed out, it's a fairly small purchase price we have on that. Don't believe we're gonna be giving any, like, asset-specific guidance on that, but, you know, it's a little bit of incremental copper exposure. We think it's quite attractive. And I think as you noted, in addition to this, we picked up an additional 1.5%. We already held a 1.5%, and the Johnson Camp mine is also subject to the stream area, so we'll benefit in that way. But we're not giving asset by asset guidance.

Josh Wolfson: Okay. Got it. And then on each ATO and some of the additional disclosures here, I guess, you know, what would be the process here for Triple Flag to enforce their security on the stream? And then I'll follow-up, you know, how does that affect the operator's credit situation and their, I guess, their current restructuring process?

Sheldon Vanderkooy: Yeah. Thanks, Josh. Just wanna set the context for this, the skeptical disclosure that we had. The current amount of the arrears that STEP owes us is circa $8 million US. So it's not a tremendous amount of money, and STEP actually has over a $300 million Canadian market cap. So I believe that they're able to pay. Historically, we've had a very good relationship with the Step Gold management team. We actually made our initial investment in STEP in 2017. Our initial investment was $28 million. To date, we have realized over $50 million in cash flows from that investment. So it's been really lucrative for us. In '23 sorry. In July '25, '24. I'm getting mistaken up here.

Brew acquired a controlling interest in Step Gold, and the relationship changed. So Beru is a private mining company. It's based in Singapore. They're quite a successful group. They acquired Lagunas Norte asset from Barrick in '21, and they've done very well with that. And they acquired STEP in order to get access to the phase two development at ATO. Buru was well aware that the stream was in place when they acquired their interest in STEP. Parties related to Buru approached us and asked us about buying out our interest. We were not interested in that.

And the phase one oxides at ATO are coming to an end, and STEP is targeting phase two production in 2026 and '27, and that's based on their public disclosure. We didn't agree to the delivery halt. We do have a parent guarantee from Step Gold's, they are a producing gold company. According to their public disclosure, they've called for over 74,000 ounces of production in 2025. And there's value in the phase two project. To me, it's very clear there's value in phase two. The price of gold has increased significantly since Beru acquired its interest in STEP. So I don't wanna talk about the specifics of how, you know, things might be enforced.

I feel very comfortable with our position. We are in dialogue with STEP. They understand our position very clearly, and I really can't say anymore as it's a legal dispute.

Josh Wolfson: Got it. Thank you. And then maybe one last question on that. Is there any ability to quantify, I guess, what Triple Flag's assumed production from this asset is maybe in 2025 within the current guidance?

Sheldon Vanderkooy: Yeah. Again, I don't give asset by asset guidance, but I guess I'll say this. I feel very comfortable with our guidance for 2025. And even if we don't get a single ounce from ATO, I'm still comfortable with our guidance for 2025.

Josh Wolfson: Right. Thank you very much.

Operator: Your next question comes from the line of Fahad Tariq of Jefferies. Please go ahead.

Fahad Tariq: Maybe just looking ahead to 2026, it looks like production is declining mainly due to North Parks. The high-grade stockpiles deplete by the end of this year from E31. Then you also have a step down in the stream rate at Cerro Lindo. Can you just maybe walk through I know you wanna do asset by asset guidance, but maybe just at a high level, where could potential offsets come from to get to, you know, to offset some of the lower production at North Park since Cerro Lindo? Thanks.

Sheldon Vanderkooy: Yeah. Hi, Fahad. Like, as you noted, like, we'll get a better picture on where North Park is coming in as the year goes on. Evolution Mining has a June 30 year-end, and so we'll solidify what we're seeing from 2026, you know, as we get further into this year. And as you point out, Cerro Lindo does have a step down coming, which is really a testament to the success of that investment and still gonna be a quite a successful asset for us going forward. In terms of offsets, I mean, it's quite a robust portfolio profile going forward. I mean, one of the things I'd point to is the Arcata mine.

It should be coming on stream later this year. We also have, you know, the Johnson Camp mine coming online this year. We'll see some production from that. Existing portfolio, we are also seeing step-ups in production at a few other sources as well. But as you, kind of correctly pointed out, I said before, I don't wanna get into asset by asset specific guidance too much.

Fahad Tariq: Okay. I appreciate that. And then maybe just second question and last one for me. On kind of deal flow and kind of what's in the pipe what you're seeing out there, if I It looks like there's you've done a couple of smaller deals on non-precious metals. There was the Arthur Gold that was a bit larger. You know, maybe talk through what you're seeing in the deal pipeline and just thoughts philosophically on even corporate M&A.

Sheldon Vanderkooy: Yeah. I'm gonna give you an answer, I think, which is pretty similar to what everyone else is saying, which is it's a really full pipeline. We continue to be active looking at many opportunities. It's a real mix of larger and smaller opportunities. I think our sweet spot remains in the $100 million to $300 million range, and we're definitely looking at some that fall even at the higher end of that range. We are looking at some opportunities that are below that range as well. And, you know, if we see a chance to add value, we'll certainly take advantage of that.

The pipeline right now is really focused on good jurisdictions that I think our shareholders would really like. I don't know what color I can give you really beyond that. You did ask about, like, corporate consolidation. In theory, I think in general, I'm quite in favor of consolidation, you know, and corporate M&A opportunities. We had a very successful experience with the Mavericks Metals acquisition. You know, I talked about Beta Hunt on the presentation. That was a Mavericks asset. Hope Bay has done really well. Kensington's done well. Kone has done really well out of that. So I think there's tremendous value opportunity for value there. So in general, we think that there's attractive opportunities.

Fahad Tariq: Okay. Great. Thank you.

Operator: Your next question comes from the line of Tanya Jakusconek of Scotiabank. Please go ahead.

Tanya Jakusconek: Good morning, everybody. Thank you for taking my question. Some have been already asked, so I'll just refine a few other points I need a clarification on. Just, on your pipeline, the $100 to $300 million range, I'm assuming it's all precious metals, but the lithium one was just an off. Would that be correct?

Sheldon Vanderkooy: Yeah. Hi, Tanya. Yeah. Predominantly, the pipeline is full of precious metals opportunity, and you're right. The lithium was very much an opportunistic investment where we thought we had a very attractive opportunity. So we're focused on lithium or battery metals.

Tanya Jakusconek: Okay. And would you say your $100 to $300 million, is that mainly development? Or are you looking at more nearer stage production portfolio, let's say?

Sheldon Vanderkooy: Again, it's a mix. There's actually probably a good number of actual producing opportunities in there.

Tanya Jakusconek: Okay. And would I assume also that the, you know, any screens that you're looking at would also involve equity investments and or debt participation as well?

Sheldon Vanderkooy: No. I wouldn't assume that at all. I think that's really specific opportunity by opportunity. Sort of thing. You know, we've been quite clear. We prefer to focus our investment dollars on streams and royalties. I think that's what our investors are looking for. We are open to it kind of in a fairly small portions on as needed basis. And, but that's certainly not our focus.

Tanya Jakusconek: Okay. And then my last question on the on just on this is the state jurisdictions that you've talked about. Some of the other opportunities we've seen lately have been in Africa. Is it safe to assume that you're still focusing on The Americas and Australia?

Sheldon Vanderkooy: Yeah. Definitely, the focus is Americas and Australia. You know, Africa, I think you have to distinguish between different jurisdictions, but, you know, the bulk of the pipeline is actually, Americas and Australia.

Tanya Jakusconek: Okay. Thank you so much for taking my questions.

Sheldon Vanderkooy: Thank you.

Operator: Once again, if you would like to ask a question, and there are no further questions at this time. I will now turn the conference back over to Sheldon Vanderkooy for closing remarks.

Sheldon Vanderkooy: Yes. Thank you, Kathleen, and thank you, everyone, for joining us. We feel we had a really great quarter, and we're looking forward to the balance of the year. Thank you all. Bye.

Operator: Ladies and gentlemen, that concludes today's call. Thank you everyone for joining. You may now disconnect.