Triple Flag Precious Metals Corp. · TSX:TFPM

Triple Flag Precious Metals — Q4 2021 Earnings Presentation

24 slides from Triple Flag Precious Metals's earnings presentation, Feb 23, 2022

  1. Slide 1: An Emerging Senior Streaming and Royalty Company

    AN EMERGING SENIOR STREAMING AND ROYALTY COMPANY February 23, 2022 2021 Results Presentation TSX:TFPM (C$) | TSX:TFPM.U (US$)

  2. Slide 2: Cautionary Statements

    CAUTIONARY STATEMENTS This presentation does not constitute an offer to sell or a solicitation of an offer to purchase any security in any jurisdiction Forward-Looking Information This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws. Forw

  3. Slide 3: Cautionary Statements (Cont'd)

    CAUTIONARY STATEMENTS (CONT’D) Technical and Third Party Information Except where otherwise stated, the disclosure in this presentation relating to properties and operations on the properties in respect of which Triple Flag holds stream, royalty or other similar interests is based on information pub

  4. Slide 4: Cash Flow Business

    2021 RESULTS CASH FLOW BUSINESS Listed on the TSX in 2021 79 Assets US$2.1B US$641M US$123M Streams and Royalties Market Cap 1 Available Liquidity 3 2021 Adjusted EBITDA 84 koz 26% 1.4% US$120M 2021 GEOs 2 GEOs CAGR Since 2017 4 Dividend Yield 1 2021 Free Cash Flow 1) Based on share price as at Febr

  5. Slide 5: 2021 Highlights

    2021 RESULTS 2021 HIGHLIGHTS STRONG CASH FLOW COMPETITIVE DIVIDEND  $120M operating cash flow and $123M adjusted EBITDA  US$0.19/sh annualized dividend yielding 1.4% 2  42% increase in operating cash flow and 28% increase in  Focused on growing dividend over time adjusted EBITDA, compared to 202

  6. Slide 6: Top Tier Metrics

    2021 RESULTS TOP TIER METRICS Producing Assets Bottom Half of Cost Curve 90% 90% 83% 88% Portfolio compares 87% 85% attractively across all key Broker Research NAV 72% 75% 75% 58% metrics to the senior and 52% 42% 40% intermediate peers 36% Seniors Intermediates TFPM #1 #2 #3 #4 #5 #6 TFPM #1 #2 #3

  7. Slide 7: Attractive Valuation

    2021 RESULTS ATTRACTIVE VALUATION Rerate potential to senior peers P/NAV P/CF2022E Dividend Yield 28.0x 1.4% 2.5x 1.4% 1.4% 22.1x 1.2% 2.0x 2.0x 1.1% 0.9% 16.8x 16.5x 0.9% 15.3x 15.4x 14.8x 1.3x 1.2x 1.2x 1.1x #1 #2 #3 #4 #5 #6 #1 #2 #3 #4 #5 #6 #1 #2 #3 #4 #5 #6 Seniors Source: Analyst consensus es

  8. Slide 8: 2021 Highlights: Strong financial results from diversified portfolio

    2021 RESULTS 2021 HIGHLIGHTS Strong financial results from diversified portfolio $ thousands, except GEOs, per share metrics, asset margin and cash costs per GEO Q4 2021 Q4 2020 2021 2020 Gold Equivalent Ounces (GEOs) 1,2 20,605 22,409 83,602 63,059 Revenue $36,990 $41,999 $150,421 $112,588 Net earn

  9. Slide 9: Strong Free Cash Flow

    2021 RESULTS STRONG FREE CASH FLOW Operating Cash Flow Free Cash Flow 1 Net Earnings and Gross Profit Margin and (US$M) (US$M) Adjusted EBITDA 2 Asset Margin 3 (US$M) (% of revenue) $120 $120 $123 91% 92% 91% 89% 87% $96 $84 $84 $56 55% $48 $46 44% $32 $34 $40 $39 $27 $28 $27 $28 21% ($0) 6% ($14) 3

  10. Slide 10: Consistent High Margins

    2021 RESULTS CONSISTENT HIGH MARGINS Inflation resistant business with 91% asset margin realized in Q4 2021 Margin 1 (US$/GEO) Cash Cost/GEO and Asset Margin/GEO (US$/oz) $1,909 $1,874 $1,794 $1,816 $1,790 $1,795 << Average Gold Price $1,711 High margin business with no $1,751 $1,720 $1,643 $1,648 $

  11. Slide 11: Pure Play Precious Metals

    2021 RESULTS PURE PLAY PRECIOUS METALS 2021 revenue breakdown Commodity Asset Type Geography Other Rest of 5% World 14% Royalties Australia 21% 34% North America 10% Gold 49% Silver 46% Streams Latin 79% America 42% Pure play precious metals streaming and royalty business TSX:TFPM (C$) | TSX:TFPM.U

  12. Slide 12: Robust Long-Term Production Outlook

    2021 RESULTS ROBUST LONG-TERM PRODUCTION OUTLOOK High-quality, sustainable production profile 5-Year Average 2 10-Year Average 2 60% Gold 105 koz GEOs 105 koz GEOs 30% Silver 10% Other Gold Equivalent Ounces (koz) 1 2022E – 2026E 2022E – 2031E 84 Northparkes Northparkes Cerro Lindo Cerro Lindo RBPla

  13. Slide 13: Medium- and Long-Term Catalysts / Near-Term Catalysts

    Diversified portfolio with near-term organic growth, exploration success and long-term optionality…  Northparkes E26 Lift 1 North Block Cave expected to commence production in Q1 2022  Cerro Lindo guiding for increased silver production in 2022E (3.9 – 4.1 Moz contained silver) 1  Buritica expand

  14. Slide 14: Core Producing Assets

    2021 RESULTS CORE PRODUCING ASSETS Diversified portfolio of producing assets underpinning portfolio Northparkes RBPlat Fosterville $550M Investment $145M Investment Portfolio Purchase Gold and Silver Stream Gold Stream Gold Royalty 2021 Revenue: $27M 2021 Revenue: $15M 2021 Revenue: $19M Long-life b

  15. Slide 15: Growth Assets

    2021 RESULTS GROWTH ASSETS Diversified portfolio of ramp-up, development and exploration projects including… ATO Phase II Pumpkin Hollow Tamarack $28M Investment $85M Investment $5M Investment Gold and Silver Stream Gold and Silver Stream Nickel, Cobalt, Copper Royalty Announced Phase II Expansion R

  16. Slide 16: Tamarack Case Study

    2021 RESULTS TAMARACK CASE STUDY Triple Flag identified the world-class nature of Tamarack and partnered with Talon at an early stage 2019 2022 World-class Nickel Initial $5M Resource with District $4.5M Investment by Scale Potential Received from Triple Flag Comprises 750 meters along the 18 km Tam

  17. Slide 17: Sustainability

    2021 RESULTS SUSTAINABILITY Superior ESG practices are core • ESG due diligence is foundational • Inaugural Sustainability Report published in September 2021 • Climate commitment and performance – Carbon-neutral since inception offsetting a total of 24,597 t of CO2 1 • $1M of Sustainability Initiati

  18. Slide 18: Robust Shareholder Base

    2021 RESULTS ROBUST SHAREHOLDER BASE Institutional and management ownership  TSX-listed TFPM (Canadian dollars); TFPM.U (US dollars)  Substantial management ownership  Robust institutional ownership 1  Elliott Investment Management L.P.  Manulife Asset Management  Fidelity Investments  Schrod

  19. Slide 19: Unlocking Value

    2021 RESULTS UNLOCKING VALUE Share price catalysts  Record 2021 GEOs up 33% over 2020 1  84 koz GEOs exceeding guidance of 80 – 83 koz  Continued growth in 2022E GEOs 1  Building on 26% CAGR from 2017 to 2021  Increased trading liquidity  Completion of ramp-up to design capacity  Buritica, Pu

  20. Slide 20: Q&A

    RBPlat Styldrift Mine Q&A TSX:TFPM (C$) | TSX:TFPM.U (US$) 20

  21. Slide 21: Appendix

    Buritica Appendix TSX:TFPM (C$) | TSX:TFPM.U (US$) 21

  22. Slide 22: Non-IFRS Measures

    APPENDIX NON-IFRS MEASURES 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): impairment charges; gain/loss on sale or disposal of assets/investments/mineral inte

  23. Slide 23: Reconciliation to IFRS Measures

    APPENDIX RECONCILIATION TO IFRS MEASURES Gold Equivalent Ounces (“GEOs”) Free Cash Flow Three months ended Year ended December 31 December 31 2021 ($ thousands) 2021 2020 2021 2020 ($ thousands, except average Year ended Operating cash flow $28,997 $30,721 $120,015 $84,377 gold price and GEOs inform

  24. Slide 24: Extensive Analyst Coverage

    APPENDIX EXTENSIVE ANALYST COVERAGE High-quality coverage with significant upside to analyst target prices Rating 12 Month Target Price BUY C$22.00 US$17.38 HOLD C$20.00 US$16.02 BUY C$19.00 US$14.97 HOLD C$19.00 US$15.00 BUY C$22.50 US$17.73 BUY C$19.00 US$14.99 BUY C$21.56 US$17.00 BUY C$22.00 US$

Triple Flag Precious Metals Corp. Common Shares — Q4 2021 Earnings Presentation on 6ix