Triple Flag Precious Metals Corp. 2026 Q2 Earnings Call

Thank you for joining us to discuss Triple Flag's second quarter 2026 results. With me on the call this morning are Eban Bari, our Chief Financial Officer, and James Dendle, our Chief Operating Officer. This quarter marks a milestone for our company. Triple Flag is entering its second decade. 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 6 months in the history of our company. Q2 was another strong quarter. We sold nearly 29,000 GEOs. We generated $117 million of adjusted EBITDA. We delivered operating cash flow per share of $0.54, up from $0.38 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 2 weeks, we announced 3 important developments. First, we reached a settlement agreement with Steppe Gold that fully resolves all our outstanding disputes. We received all obligations and arrears on signing. We have secured guaranteed 6 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, with first deliveries received in July of this year.

Third, on the strength of these 2 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. Its growth plans continue to advance, including a mill expansion study to 10 million tons per annum. 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.

We are pleased to announce our fifth consecutive annual increase of our dividend since we listed in 2021, which now equates to an annualized dividend of $0.24 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 Eban to discuss our financial results for Q2 2026.

Thank you, Sheldon. As Sheldon highlighted, we had a very strong quarter, with portfolio producing 28.7 thousand GEOs, resulting in the first half of nearly 59,000 GEOs. This puts Triple Flag on track to achieve our increased 2026 guide. Across the chart, adjusted EPS were up 62%, 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. Our dividend has now been increased to $0.24 on an annualized basis, up 4% from prior dividends.

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, 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, we will continue to be opportunistic. Lastly, I would like to comment on our balance sheet. Despite deploying $440 million on Ravenswood acquisition, $20 million on share buybacks in our normal first dividend. We exited the quarter with over $1.1 billion of available liquidity. We funded Ravenswood with cash on hand and drawings from our revolving credit facility, given the cash-generating power of our business with over $100 million worth of operating cash flow this quarter alone, we expect to repay this facility rapidly during 2027 based on current metal prices.

Overall, a strong balance sheet, robust operating cash flows, and total liquidity over $1.1 billion gives us the capital to continue deploying dollars into creative 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.

Thank you, Ivan. Starting with Ravenswood, where we hold a 5.5% gold stream. The mine is Queensland's largest gold mine and a top 10 Australian gold mine by ore 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 four million ounces of gold since discovery. Upstream generates cash flow immediately, with the first deliveries having commenced in Q3. Second, the asset offers attractive scale to 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, 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 known 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. Their company study contemplates 6,000 tons a day underground operation, producing 400,000 to 435,000 ounces of gold per year over an initial 11-year life mine. First 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-kilometer greenstone belt with 700,000 meters of drilling planned over the next five years. This includes drilling at the Boston deposit, which is not included in the PEA and is located 50 kilometers south of the current deposit. Hope Bay has the potential to develop into a multi-decade district scale mining camp. 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 for 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 in 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 into 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 tons, providing upside for further ounces to be included in an upcoming PFS in mid-2027. As I mentioned, we expect Kemess to commence production in 2030 with a ramp-up thereafter. Finally, Northparkes is Triple Flag's largest asset.

Numerous growth projects have recently been approved by Evolution Mining, which will unlock value from world-class copper and gold endowments that 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 from not only the 625 million tons 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 will now pass it back to Shun.

Thank you, James. Our business model generates shareholder value through reinvesting our robust cash flows into accretive additions to the portfolio.