Triple Flag Precious Q2 2026 Earnings Call: Complete Transcript

Triple Flag Precious (NYSE: TFPM ) held its second-quarter earnings conference call on Thursday. Below is the complete transcript from the call. This content is powered APIs. For comprehensive financial data and transcripts, visit View the webcast at Summary Triple Flag Precious reported a strong Q2 2026, with 29,000 GEOs sold, $117 million in adjusted EBITDA, and a 42% increase in operating cash flow per share year-over-year.

The company announced a settlement with StepGold, a $440 million acquisition of a gold stream on Ravenswood Gold mine, and increased 2026 GEO guidance to 100-110,000 ounces. Strategic growth initiatives include mine developments at Hope Bay and Northparkes, and feasibility work at Arthur, supporting long-term growth beyond 2030. 24 per share and repurchased $20 million of shares, emphasizing shareholder returns. 1 billion in liquidity, positioning it for future growth opportunities.

Management highlighted the robust cash flow and strategic acquisitions as drivers for ongoing shareholder value creation. Full Transcript OPERATOR (Angela) Ladies and gentlemen, thank you for standing by. My name is Angela and I will be your conference operator today. At this time I would like to welcome everyone to the Triple Flag Precious second quarter 2026 conference call.

I'd like to remind everyone that this call is being recorded and that all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question, press star one again.

Thank you. I would now like to turn the call over to Mr. Sheldon van der Koy, Chief Executive Officer and Director. Please go ahead.

Sheldon van der Koy, Chief Executive Officer and Director Thank you, Angela, and thank you for joining us to discuss Triple Flag Precious second quarter 2026 results. With me on the call this morning are Iban Bari, our Chief Financial Officer, and James Dendel, our Chief Operating Officer. This quarter marks a milestone for our company. Triple Flag is entering its second decade, and we are doing so with the strongest organic growth profile in our history and a clear track record of compounding shareholder value.

H1 was the strongest six months in the history of our company. Q2 was another strong quarter. 38 in Q2 of last year. This represents 42% growth in cash flow per share, with our high-margin, top-line exposure to gold and silver prices translating directly into per share cash flow.

June was a milestone month for Triple Flag. In the span of two weeks, we announced three important developments. First, we reached the settlement agreement with StepGold that fully resolves all our outstanding disputes. We received all obligations and arrears on signing, and we have secured guaranteed fixed gold deliveries over the next 10 years along with long-term exposure to production from the Ato mine.

We initially invested $28 million in Step and have already received over $60 million of returns to date in addition to the over 34,000 ounces of gold to be delivered over the next 10 years. Second, we announced and closed the acquisition of a $440 million gold stream on the Ravenswood Gold mine in Queensland, Australia. This is a cornerstone addition to our portfolio that delivers immediate cash flow from a large-scale, long-life, low-cost operation. The first deliveries were received in July of this year.

And third, on the strength of these two developments, we increased our 2026 GEO guidance to 100 to 110,000 ounces and raised our 2030 outlook to 150 to 160,000 GEOs. Q2 was also a fantastic quarter for demonstrating the organic growth driven by mine development and mine life extension. In May, Agnico Eagle announced a positive construction decision at Hope Bay, a milestone that we have pointed to for several quarters and one that firmly anchors our growth beyond 2030 outlook. At Northparkes, the E48 sublevel cave is ramping up and its growth plans continue to advance, including a mill expansion study to 10 million tons per annum.

And at Arthur, feasibility work and drilling are underway on a world-class greenfield deposit following the pre-feas released earlier this year. Finally, an important part of our capital allocation strategy remains returns to shareholders. 24 per share. Additionally, we repurchased $20 million of shares in the open market during the quarter, taking advantage of the opportunity presented by the markets.

I will now turn it over to Ivan to discuss our financial results for Q2 2026. Iban Bari, Chief Financial Officer Thank you, Sheldon. 7 thousand GEOs, resulting in the first half of nearly 59,000 GEOs. This puts Triple Flag Precious on track to achieve our increased 2026 guidance.

Across the chart, adjusted EPS were up 63%, adjusted EBITDA was up 54%, and most importantly, cash flow per share was up 42% year over year. Operating cash flow per share is the metric that most directly compounds to shareholders over time, and our strong margins ensure that higher metal prices flow directly through to our shareholders. This strong cash flow generation continues to support all our capital allocation priorities. We view a progressively growing dividend as a core part of our capital allocation strategy and one that's sustainable across all metal prices.

24 on an annualized basis, up 4% from the prior dividend. I'm proud that we've increased our dividend every year since our IPO. On buybacks, we have said that we view our shares as being undervalued, and we acted on that view this quarter, repurchasing $20 million worth of shares in the open market. The NCIB remains an active part of our shareholder return strategy, and we will continue to be opportunistic.

Lastly, I would like to comment on our balance sheet. 1 billion of available liquidity. We funded Ravenswood with cash on hand and drawings from our revolving credit facility, and given the cash-generating power of our business, with over $100 million of operating cash flow this quarter alone, we expect to repay this facility rapidly during 2027 based on current metal brands. 1 billion gives us the capital to continue deploying dollars into accretive opportunities to drive future growth for the benefit of our shareholders.

With that, I will turn it over to James to walk you through Ravenswood, Hope Bay, and our growth pipeline. James Dendel, Chief Operating Officer Thank you, Ivan. 5% gold stream, the mine is Queensland's largest gold mine and a top-10 Australian gold mine by reserves. There are several attributes we particularly like about this transaction.

First, this is a producing, proven operation. Ravenswood has been in continuous production since 1987 and has produced a lot of gold. The gold stream generates cash flow immediately, with the first deliveries having commenced in Q3. Second, the asset offers attractive scale, mine life, and costs.

The expansion, completed in 2023, supports growth in annual production to more than 200,000 ounces, with the operation ramping towards that level by 2028 while sitting in the lower half of the global cost curve. Third, the mineral endowment is extensive and the exploration is compelling. Since 2020, roughly 800,000 ounces of reserve additions have outpaced 600,000 ounces of depletion, with multiple in-pit and near-mine targets adjacent to the Buck Reef West and Southfield pits. Turning to Hope Bay, we hold a 1% NSR royalty on this Agnico Eagle project in Nunavut.

In late May, Agnico Eagle announced a positive construction decision. The accompanying study contemplates a 6,000 tonnes per day underground operation producing 400 to 435,000 ounces of gold per year over an initial 11-year life. Mine host production is expected in 2030. What makes Hope Bay particularly exciting is what the initial plan leaves out.

The 11-year mine life incorporates only about half of the declared mineral resource—55% of the measured and indicated and 48% of the inferred. Beyond that, Agnico has over 90 regional targets across a highly prospective 80-kilometre greenstone belt, with 700,000 metres of drilling planned over the next five years. This includes drilling up the Boston deposit, which is not included in the PEA and is located 50 kilometres south of the producing deposits.

Hope Bay has the potential to develop into a multi-decade, district-scale mining camp, and Agnico's decades of proven Arctic operating experience and established logistics routes make them the ideal operator to realize its potential. Finally, I want to discuss some of the assets that will drive further growth beyond our 2030 outlook. This should provide a clear view to our shareholders of what will become core paying assets to Triple Flag. Arthur, Kemess, Hope Bay, and Northparkes are world-class, long-life assets located in established mining jurisdictions.

At Arthur, a pre-feasibility study was released in February, forming the basis of permitting to commence 2027. The current nine-year life of mine is the beginning of a much longer life. AngloGold has described the study as the top of the iceberg, noting that Arthur is a marquee asset that will anchor AngloGold's portfolio in the 2050s. At Kemess, Triple Flag holds a 100% silver stream.

The 2026 PEA supports a large-scale copper-gold-silver operation reaching production by 2031, leveraging existing brownfield infrastructure and permits from previous mining operations. The PEA mine plan represents only 47% of the total resource tonnes, providing upside for further ounces to be included in an upcoming PFS in mid-2027. As I mentioned, we expect Hope Bay to commence production in 2030 with a ramp-up thereafter. And finally, Northparkes and Triple Flag's large asset there.

Numerous growth projects have recently been approved by Evolution which will unlock value for a world-class copper and gold mine. These include the E22 block cave, the E44 gold open pit with minimum delivery guarantees, and most importantly a potential mill expansion to at least 10 million tons per annum, the latter two of which are currently being studied over the next year. We believe that the mill expansion is the optimal path to unlock value for not only the 625 million tonnes of total current resources, but other prospective underexplored targets that could materially add to the production profile with increased scale and processing optionality.

Taken together, these four assets are diversified across long-life, district-scale systems in Nevada, British Columbia, Nunavut, and Australia, and they are all operated by high-quality counterparties, representing the foundation for further organic growth beyond 2030. I'll now pass it back to Sheldon. Sheldon van der Koy, Chief Executive Officer and Director Thank you, James. Our business model generates shareholder value through reinvesting our robust cash flows into accretive additions to the portfolio.

In the past 18 months since the start of 2025 we've deployed over $900 million into new high quality streams and royalties. Trey Crabatis, Arcata and Azuka, Arthur Monera Florida, the Johnson Camp and Gunnison royalties, the North Parks E44 stream, and now Ravenswood. These are all high quality assets operated by high quality operating teams. The bulk of this capital has been deployed in Australia and the United States.

We are deployed on attractive returns for our shareholders. Triple Flag Precious shareholders will benefit from these portfolio additions for decades to come. I'd like to close by stepping back and looking at what Triple Flag Precious has created over its first decade. A portfolio of 242 streams and royalties, 36 of them producing with peer-leading exposure to Australia.

We remain firmly focused on generating shareholder value. We have increased our GEO production every year since our 2016 founding. We have increased our dividend every year since our 2021 IPO. We are active buyers of our own shares and management and the board remain founders and substantial owners of the company.

Looking forward, the picture is even stronger. We had a strong first half with robust growth in operating cash flow per share and we delivered $550 million of transactions that will benefit our shareholders for decades to come. Our increased guidance calls for 100 to 110,000 GEOs this year, growing to 150 to 160,000 GEOs in 2030 from a de-risked pipeline that James just walked you through. 1 billion of available liquidity to continue pursuing accretive opportunities over the remainder of the year and beyond.

That concludes our prepared remarks. Operator, please open the floor to questions. OPERATOR (Angela) 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 star one on your telephone keypad to raise your hand and enter the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening by a loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. And your first question comes from the line of Cosmos with CIBC.

Your line is now open. Cosmos Chiu, Analyst at CIBC Hi. Thanks Sheldon, Yvonne and James and congrats on a strong first half. Maybe my first question is on North Parks.

James, you kind of touched on it, but the E44 development study is expected by the end of June 2027. Still some time away, but is there any kind of progress or any kind of updates at least on that study that you can provide to us? James Dendel, Chief Operating Officer Yeah, obviously can't get too far ahead on the studies, but I think it's important to highlight there's a number of things happening at North Parks. Evolution has recently approved coarse particle flotation project and debottlenecking in the processing plant that opened up capacity.

And then the two big milestones or developments in conjunction with that. And one, the development of the E22 block cave, which is the next kind of frontier of mining at North Parks in conjunction with the expansion of the mill. And the base expansion of the mill is 10 million tonnes, but it could be higher than that. That's precisely what Evolution is studying at the moment.

So that work's ongoing and there's been capital allocated towards those studies. So we look forward to seeing the results of that next year. And then E44 is relatively straightforward from a study point of view. It's, you know, a reasonably well-defined pit that really requires, you know, ore mining and then treatment in conjunction with the other ore feeds.

So the study element of that is quite straightforward. So, you know, I think that the focal point for us will be seeing, you know, how big of an expansion is done at the mill next year. Cosmos Chiu, Analyst at CIBC Great, that's great to hear. Maybe, you know, sticking with Australia.

Ravenswood, good to see. You know, the first monthly delivery was received in July 2026. So can I take it that I guess Q3 is going to be a normal sort of quarter or is there still some kind of ramp up factors that, you know, we should be aware of? And as you mentioned during the acquisition presentation, a normal quarter will be 2,300 to 3,300, you know, GEOs per quarter.

So again, is it Q3 going to be a normal quarter or is there any factors that we should still consider? James Dendel, Chief Operating Officer Yeah, look, it will be ramping up because there are capital projects going on to open up the Sarsfield Lowland pits and then that scales up towards 200,000 ounces plus run rates up to 2028. During that period it'll be relatively normal, but there's a ramping profile for that asset. Cosmos Chiu, Analyst at CIBC Okay, maybe switching gears a little bit.

Sierra Lindo, it's been a great, you know, asset for Triple Flag Precious, but now there's been a step down that happened in April. You know, Sierra Lindo is one of your larger silver, you know, streams. I guess my question is, you know, with that sort of coming down and a bit of a, you know, decrease in silver at least contribution wise. Are you still happy, Sheldon, with your, you know, gold, silver, copper and other mix as it stands today?

Sheldon van der Koy, Chief Executive Officer and Director Yeah, thanks. Thanks, Kaz. Bottom line is we are happy. Like we're a precious metals company and we're always looking for high quality gold, high quality silver exposure and we think we have that in spades.

You know, we long anticipated the Sierra Lindo step down and, you know, and as you pointed out, hitting the step down is significant and Sierra Lindo remains a very substantial asset for Triple Flag Precious going forward. It's still going to be one of our largest contributors. There are no further step downs after this. You know, Sierra Lindo's even looking at putting new capital into that project.

So that's great. We benefit from that.