Triple Flag (TFPM) Q1 2026 Earnings Transcript

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DATE

Wednesday, May 6, 2026 at 9 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Sheldon Vanderkooy
• Chief Financial Officer — Eban Bari
• Chief Operating Officer — James Dendle

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TAKEAWAYS

• Gold Equivalent Ounces (GEOs) Sold -- Over 30,000 GEOs were sold, representing a new company record for the quarter.
• Adjusted EBITDA -- $129 million was reported, setting a quarterly record for the company.
• Operating Cash Flow Per Share -- $0.55, with year-over-year growth of 67% in this metric.
• Adjusted EBITDA Growth -- Increased by 82% year over year.
• Dividend Policy -- The dividend has increased annually by approximately 5% at mid-year since IPO, with management committed to ongoing sustainability across price cycles.
• Balance Sheet -- The company exited the quarter with $144 million in cash, no debt, and over $1 billion in available liquidity.
• M&A Activity -- Over $100 million deployed during the quarter, including $23 million for a 3% gross revenue royalty on the Gunnison copper project in Arizona.
• New Royalty Acquisition -- The Gunnison royalty covers a project designed for approximately 125 million pounds of annual copper cathode production, totaling roughly 3.2 billion pounds over 21 years.
• Hope Bay Development -- Construction decision on Hope Bay, where Triple Flag holds a 1% NSR royalty, is expected later this month, with projected production of 400,000 to 425,000 ounces of gold per year.
• Portfolio Asset Growth -- Beta Hunt’s mill expansion to 2.6 million tons per annum is approved, with potential to reach 4 million tons; Fosterville targets a 65% throughput increase for higher output over the next three years.
• Guidance and Outlook -- Management reaffirmed 2026 guidance and the 2030 goal of 140,000 to 150,000 GEOs.
• Buyback Program -- NCIB remains opportunistic, with share repurchases evaluated based on market valuation and capital allocation priorities.
• Transaction Pipeline -- Current transaction focus is mostly precious metals, in “good jurisdictions,” with deal sizes typically ranging from $100 million to less than $500 million.
• Australia Exposure -- Australia is the company’s largest single country concentration; Triple Flag is currently active in that market as well as others globally.
• Gunnison Stream Option -- An option exists to fund an additional $65 million to double the stream rate; the project operator may instead pay $35 million to terminate this option, with no impact to the existing royalty or stream.

SUMMARY

Triple Flag Precious Metals (NYSE:TFPM) delivered record financial and operational results driven by increased gold and silver prices, expansion of the asset portfolio, and disciplined capital allocation. Management highlighted forthcoming production and milestone events at strategic growth assets, particularly Hope Bay and North Parks, positioning the company for expanded long-term organic growth. Decisions regarding the Gunnison stream expansion payment may further enhance cash resources and future flexibility.

• James Dendle stated the Kemess asset’s January 2026 PEA mine plan represents only 47% of total indicated and inferred resource tonnes, allowing for future potential production upside.
• North Parks saw several recent growth projects approved, including a planned mill expansion study to at least 10 million tons per annum, with management currently studying this over the next year.
• Sheldon Vanderkooy said, “we view our shares as being undervalued.” when asked about the outlook for opportunistic buybacks under the NCIB program.
• For post-2030 growth, management cited organic production upside across Arthur, Kemess, Hope Bay, and North Parks, each operated by established industry partners in top jurisdictions.
• Hope Bay’s 80-kilometer greenstone belt comprises over 90 identified exploration targets, providing potential multi-decade asset life according to company commentary.

INDUSTRY GLOSSARY

• GEO (Gold Equivalent Ounce): A standardized unit that converts production from multiple metals (such as gold, silver, copper) into the gold equivalent, based on prevailing commodity prices.
• NSR (Net Smelter Return) Royalty: A royalty calculated as a percentage of gross revenue from mine production, after deducting smelting and refining costs.
• NCIB (Normal Course Issuer Bid): A share buyback program that permits a company to repurchase its own shares on the open market within regulatory limits.
• PEA (Preliminary Economic Assessment): An early-stage technical and economic study assessing the potential viability of a mineral project prior to more detailed feasibility work.

Full Conference Call Transcript

Sheldon Vanderkooy: Good morning, everyone, and thank you for joining us to discuss Triple Flag Precious Metals Corp.’s first quarter 2026 results. With me on the call this morning are Eban Bari, our chief financial officer, and James Dendle, our chief operating officer. Triple Flag Precious Metals Corp. is off to a record start in 2026, with Q1 representing the strongest quarter in the company's history across every key metric. This includes over 30 thousand GEOs, $129 million of adjusted EBITDA, and operating cash flow per share of $0.55. These are all quarterly records.

The Q1 result is a straightforward demonstration of the model working as intended: high-margin, top-line exposure to higher gold and silver prices translating into per share cash flow growth of 67% year over year. On the transaction front, we kicked off 2026 by unlocking the high-grade E44 gold deposit at North Parks, which was not previously included in Evolution’s life of mine plan.

Triple Flag Precious Metals Corp. will receive guaranteed minimum deliveries from E44 over seven years starting in 2030, which aligns with Evolution’s approved plans for a block cave at E22 and a potential mill expansion to 10 million tons per annum, all of which position North Parks as a clear growth asset for Triple Flag Precious Metals Corp. Then in March, we acquired a 3% gross revenue royalty on the Gunnison copper project in Arizona for $23 million. James will walk you through the details. This is an asset that fits precisely within our strategy of highly accretive transactions for projects in mining-friendly jurisdictions, in this case, the United States.

For our existing portfolio, our assets are performing ahead of our expectations. Hope Bay’s construction decision is expected later this month, with a production profile of at least 400 thousand ounces per year. The mill at Beta Hunt has been approved for expansion to 2.6 million tons per annum with further potential growth to 4 million tons per annum. Kone’s oxide circuit remains on track for production later this year. Fosterville is planning a 65% throughput increase that will boost production over the next three years. And Last Arthur’s feasibility work, permitting submission, and drilling are underway on what AngloGold sees as a world-class deposit that will continue to grow for decades to come.

Our first quarter performance, as well as the underlying achievements made by the assets within our portfolio, have us on track to deliver our 2026 guidance and our 2030 outlook of 140 to 150 thousand GEOs. I will now turn it over to Eban to discuss our financial results for Q1 2026.

Eban Bari: Thank you, Sheldon. As Sheldon highlighted, Q1 was a record quarter on every line item. Adjusted earnings were up, adjusted EBITDA was up 82%, and most importantly, cash flow per share was up 67% year over year. Operating cash flow per share is the metric that most directly compounds shareholder value over time. This strong cash flow generation continues to support all of our capital allocation priorities, given our high-margin business, including shareholder returns and external growth opportunities. We aim to pay a progressively growing dividend that is sustainable across all metal prices, and we have increased our dividend every year since IPO by about 5% mid-year.

We will continue to assess the right pace of further increases against the broader growth and capital deployment opportunity set. In addition to our dividend, we have an active NCIB and, as always, will buy back shares in the open market on an opportunistic basis. We have a pristine balance sheet and exited the quarter with $144 million of cash, no debt, and over $1 billion of liquidity available. This gives us meaningful flexibility to continue executing on accretive growth opportunities while funding our progressive dividend and buying back shares when warranted. With that, I will turn it over to James to walk you through Hope Bay, Gunnison, and our growth expectations beyond 2030.

James Dendle: Thanks, Eban. We hold a 1% NSR royalty on Hope Bay, which is one of the most exciting development assets in our portfolio. We expect a meaningful development in the next several weeks. The asset is an 80-kilometer greenstone belt in Nunavut, with over 90 regional exploration targets identified across the property. Our royalty covers well over 1 thousand square kilometers. AMECO’s unparalleled operating capabilities are essential in ensuring the successful development and operation for projects at this scale and remoteness.

A technical evaluation update and a construction decision are expected by Agnico in May, which will highlight the 6 thousand tonnes per day operation with the potential to be a 400 thousand to 425 thousand ounce per year gold producer. Hope Bay’s exploration potential is also significant in areas such as Patch 7 and Madrid, but also at the geological potential to support a multi-decade district across the broader 80-kilometer belt. As Sheldon mentioned, in late March we completed the acquisition of a third-party 3% gross revenue royalty on the Gunnison copper project in Arizona for $23 million, which is strongly accretive on a per share basis. There are a few things that we particularly like about this transaction.

First, it is an existing royalty on a large-scale U.S. copper project that is designed to be mined and processed using conventional methods. The updated PEA released in February supports approximately 125 million pounds of annual copper cathode production, totaling roughly 3.2 billion pounds over a 21-year life of mine. Second, the location is genuinely top tier. The project sits on a combination of private and state land in Arizona, which we expect to help streamline permitting, with on-site power, rail, and water infrastructure already in place. Domestic U.S. copper production is a strategic priority in the current environment, and Gunnison is positioned to deliver into this need.

Finally, I want to discuss the growth that our portfolio is expected to deliver beyond 2030. Outside of our formal outlook, Arthur, Kemess, Hope Bay, and North Parks represent world-class, long-life assets located in the most established mining jurisdictions. They provide substantial growth potential beyond our 2030 outlook. At Arthur, a pre-feasibility study was released in February to drive the commencement of permitting in 2027. The current mine plan has been described by Anglo as the top of the iceberg, and they further noted that Arthur is a marquee asset that will anchor the portfolio into the 2050s. We are very excited about the development trajectory and potential of this tier-one gold asset.

At Kemess, Triple Flag Precious Metals Corp. holds a 100% silver stream. The January 2026 PEA supports a large-scale copper-gold-silver operation reaching production by 2031, leveraging existing brownfield infrastructure and permits from previous mining operations. Notably, the PEA mine plan represents only 47% of the total indicated and inferred resource tonnes, providing further upside potential for subsequent economic studies. Hope Bay I have already covered, but its place in this discussion is worth noting: a potential 400 thousand to 425 thousand ounce per year producer with district-scale exploration upside along the 80-kilometer belt and a construction decision expected this month. Finally, North Parks is Triple Flag Precious Metals Corp.’s largest asset.

Numerous growth projects have been recently approved, which will unlock value from a world-class copper-gold district, including the E22 block cave, the E44 gold open pit with minimum guaranteed deliveries, and, most importantly, a potential mill expansion to at least 10 million tons per annum, which is currently being studied over the next year. We believe that the mill expansion is the optimal path forward to unlock value from not only the 575 million tons of current measured and indicated resource inventory, but other prospective and underexplored targets that could materially add to the potential production profile associated with the improved scale and processing optionality at North Parks.

Taken together, these four assets are diversified across long-life, district-scale systems in Nevada, British Columbia, Nunavut, and Australia. They are all operated by high-quality counterparties and represent the foundation for further organic growth beyond 2030. I will now pass back to Sheldon for closing remarks.

Sheldon Vanderkooy: Thank you, James. We had a record start to the year, and we are positioned to achieve our 2026 guidance. We saw record growth in operating cash flow per share and delivered transactions that will benefit our shareholders for decades to come. Beyond 2030, Triple Flag Precious Metals Corp. shareholders can expect significant additional GEO growth from long-life, district-scale assets, including at North Parks, Arthur, Kemess, and Hope Bay. Overall, Triple Flag Precious Metals Corp. is exceptionally well positioned to deliver long-term organic value to our shareholders from a diverse portfolio of producing and development assets. Our balance sheet remains pristine.

We are debt free with over $140 million in cash and over $1 billion in available credit, providing us with substantial financial flexibility to continue pursuing accretive growth opportunities for the benefit of our shareholders. That concludes our prepared remarks. Operator, please open the floor to questions.

Operator: We will now open the call for questions. If you would like to ask a question at this time, simply press star followed by the number one on your telephone keypad. Your first question comes from the line of Sam Overwater with Scotiabank. Sam, please go ahead.

Sam Overwater: Good morning, everyone, and congratulations on another great quarter. Could you please walk us through an M&A and transaction outlook update—specifically the size of transactions that Triple Flag Precious Metals Corp. commonly engages, the mine life stage, the commodity, and any more information. Thank you.

Sheldon Vanderkooy: Certainly, Sam. I will take that. First of all, I am very pleased that we deployed over $100 million in Q1 on very good terms. There continue to be many opportunities, and I am confident we will manage to do more in 2026. With regard to what we are looking at, it is mostly precious, mostly good jurisdictions, and a range of sizes—certainly in that $100 million to sub-$500 million range—again, generally good jurisdictions that would be attractive for our shareholders.

Sam Overwater: Great, thank you. Just one more tag-on: What is the transactional outlook in Australia? Has Triple Flag Precious Metals Corp. been engaging any opportunities there?

Sheldon Vanderkooy: We really like Australia, of course. It is our single highest country concentration. We are active in Australia. We are also active in many other jurisdictions around the world.

Sam Overwater: Great. Thank you. That is all from me.

Operator: Again, if you would like to ask a question, press star followed by the number one on your telephone keypad. Our next question comes from the line of Brian MacArthur with Raymond James. Brian, please go ahead.

Brian MacArthur: Good morning. My question relates to the buyback on the Gunnison agreement, and there are two parts to it. The royalty part, I think, is clear to me. But can you just go through—I thought there was a $65 million stream expansion payment. Now you are talking about a termination for $35 million. Can you update me on exactly what is left and how the stream is working these days, please?

Sheldon Vanderkooy: Certainly, Brian. I will take that. The royalty buy-down option is pretty straightforward. To set the context, we wanted to provide a pathway, on a change of control, to have a lower royalty burden on the property, which we think could unlock value for all parties, and it is at an attractive price for Triple Flag Precious Metals Corp. With respect to the stream, we have an option to fund an additional $65 million and effectively almost double the stream rate. Instead of us funding $65 million to double the stream rate, they would pay $35 million to us in order to cancel that option on our part.

I do not think anyone values our expansion option right now, so $35 million would be a nice win for Triple Flag Precious Metals Corp.

Brian MacArthur: Right, so you would just get $35 million for that option, but the 3.5%, the 16.5%, that all stays in place. There is no change in step-downs or adjustments or anything. It is a pure payout of the option.

Sheldon Vanderkooy: Exactly. It is not a reduction in our current stream at all.

Brian MacArthur: Okay. Thanks very much, Sheldon. That is very clear.

Sheldon Vanderkooy: Thanks, Brian.

Operator: Your next question comes from the line of an analyst with Bank of America. Please go ahead.

Analyst: Hi, thanks for taking my question. I just had a question on the buyback program, which has been underutilized to date. Perhaps you could comment on why there has been little activity there relative to other companies with buyback programs, and what the outlook is going forward.

Sheldon Vanderkooy: Yes, thanks. We have always been opportunistic with respect to the NCIB and have shown a willingness to deploy on that from time to time. All I would say is we view our shares as being undervalued. Maybe I will stop there.

Analyst: Noted. Thank you very much.

Operator: There are no further questions at this time. I will now turn the call back over to Sheldon Vanderkooy for closing remarks.

Sheldon Vanderkooy: Thank you, everyone. I really appreciate your attendance. It has been a fantastic start to the year, and I think it is going to be a fantastic finish to the year as well. I appreciate your time.

Operator: This concludes today’s call. You may now disconnect.

Unknown Speaker: Thank you. Take care.

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