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Triple Flag sees higher royalties

Toronto-listed streaming and royalty firm Triple Flag Precious Metals Corp sees increased sales this year and to 2027.
Triple Flag sees higher royalties Triple Flag sees higher royalties Triple Flag sees higher royalties Triple Flag sees higher royalties Triple Flag sees higher royalties

Triple Flag expects more from Northparkes

The firm expects attributable royalty income and stream sales to total 90,000-95,000 gold equivalent ounces (GEOs) this year, up from 83,602 GEOs last year. 

This is based on commodity prices of US$1,800/oz gold, US$23.50/oz silver, US$4.20/lb copper and US$110/carat for diamonds for the rest of this year.  

Sales are expected to be weighted towards the back end of 2022. the firm said.

Sales of 20,000-21,000 GEOs are forecast for the first quarter of 2022. 

The firm's income is split 50-55% on gold, 40-45% on silver and the remainder on copper and diamonds. 

Production over the five-year period ending in 2027 is expected to average 110,000 GEOs a year, up 5,000 GEOs a year from earlier guidance. 

This is mainly based on production growth from its interests at the Northparkes copper-gold mine in Australia, the Buriticá gold mine in Colombia, the Pumpkin Hollow copper mine in Nevada, the Gunnison copper project in Arizona and the Dargues gold mine in Australia, and the resumption of leaching at the Altan Tsagaan Ovoo gold mine in Mongolia. 

The 5,000 GEOs per annum increase, compared to the 2021 outlook for the five-year period ending in 2026, is due to the addition of ore feed from Northparkes E31 open pit.

This is expected to allow Northparkes to fully utilize the 7.6 million tonne a year processing capacity earlier than originally expected. Processing of E31 ore is expected to commence in 2023, Triple Flag said.

Northparkes in operated by China Molybdenum in New South Wales.

The firm last month bought a 2.75% net smelter returns royalty on Monarch Mining Corporation's  Beaufor Mine gold project in Quebec for a total cash consideration of C$11.25 million. 

Shares in the firm on the Toronto Stock Exchange were unchanged at C$16.90.