Triple Flag posts record Q2 sales, shares active

Triple Flag Precious Metals Corp. [TFPM-TSX, TFPM.U-TSX] shares were active Tuesday after the company reported its production numbers for the second quarter of 2021.

The company reported second quarter gold equivalent ounce (GEO) sales of 22,500 ounces and revenue of $40.9 million.

Triple Flag shares advanced on the news, rising 0.64% or 10 cents to $15.60 on volume of 2.47 million. The shares are currently trading in a 52-week range of $16.46 and $14.69.

Triple Flag is a gold-focused streaming and royalty company offering bespoke financing solutions to the metals and mining sector. It aims to be a sought after, long term funding partner to mining companies throughout the commodity cycle.

Since the company’s inception in 2016, the company has assembled a diversified portfolio of streams and royalties, offering exposure primarily to gold and silver in the Americas and Australia.

Triple Flag is anticipating GEO sales of 83,000 to 87,000 ounces this year, a target that a Scotiabank analyst described as conservative.

“Our gold equivalent ounces sold in the second quarter were a new record for our business, increasing by 40% compared to the second quarter of 2020, while revenue increased by 48% over the same period,” said Shaun Usmar, Triple Flag’s founder and CEO.

Triple Flag recently completed an initial public offering that raised US$250 million from the sale of 19.23 million shares at an offering price of US$13 per share. That does not include additional proceeds from the shares sold by the IPO underwriters who were granted an over-allotment option to sell an additional 2.9 million shares at US$13 per share.

If the over-allotment option had been exercised in full, it would have generated additional proceeds of US$37.5 million. However, the underwriters elected to purchase 1.06 million shares to cover over-allotment options.

“With the successful completion of our initial public offering (IPO) during the quarter, which was the largest TSX-listed mining IPO since 2012 by size and market capitalization, and the largest precious metals IPO globally by market capitalization globally since 2008, Triple Flag is poised to continue its growth,” he said.

The company has 75 assets, including nine streams and 66 royalties. These investments are tied to mining assets at various stages of the mining cycle, including 15 producing mines and 60 development and exploration stage projects.

The company reported that with proceeds of its initial public offering, it has repaid its revolving credit line in full and is now debt free.

Triple Flag is scheduled to announce its second quarter financial results on August, 11, 2021.