TSX- and NYSE-listed gold-focused, emerging senior streaming and royalty company Triple Flag Precious Metals sold 19 523 gold-equivalent ounces (GEO) in the third quarter, down slightly from the 20 746 GEO sold in the corresponding period in 2021.

Of this, gold comprised 11 918 GEOs and silver 6 134 GEOs.

This resulted in revenue of $33.8-million, down from the $37.1-million of the third quarter of 2021, while cash costs were $165/GEO – broadly in line with the same period in 2021.

As such, the company declared a quarterly dividend of $0.05 a share, payable on December 15.

However, Triple Flag’s third-quarter net earnings of $12.8-million were higher than the net earnings of $5.1-million from the corresponding 2021 period; equating to adjusted net earnings of $13.3-million, compared with $13.7-million in the third quarter of 2021.

As such, the company’s operating cash flow in the period was $25.4-million, down from the $29.5-million of the third quarter of 2021.

Adjusted earnings before interest, taxes, depreciation and amortisation in the period were $26.1-million, down from the $29.5-million of the corresponding 2021 period.

“Our results from the third quarter were broadly in line with expectations and we are expecting our full-year GEO sales to be towards the low end of our guidance range of 88 000 GEO to 92 000 GEO,” says CEO Shaun Usmar.

“Our portfolio has delivered year-on-year GEO increases in gold streams and royalties to date,” he adds.

However, Usmar notes that silver GEOs have lagged, primarily as a result of changes in delivery timing from Cerro Lindo, which is producing silver in concentrate in line with Triple Flag’s expectations for this year.

Nonetheless, he says a combination of a higher gold/silver ratio and changes in the quotational period associated with offtake contracts have impacted the timing of Triple Flag’s stream deliveries by several months on average.

“This points to a short-term timing impact in contrast to the robust underlying operational performance of the mine and portfolio as a whole.

“Our asset margins remain strong at 90%, our cash costs of $165/GEO remain low, and our production base is diversified across 15 producing assets,” says Usmar.

He explains that, with almost 90% of its assets situated in the lowest half of their respective industry cost curves, Triple Flag’s mining partners are well-positioned to weather inflationary pressures and the current volatile commodity price environment.

In terms of loan facilities, Triple Flag, on September 22, extended the maturity of the $500-million credit facility by three years to August 30, 2026, and increased the uncommitted accordion from $100-million to $200-million, for a total availability of up to $700-million.

Under the amendment, the London Inter-Bank Offered Rate benchmark interest rate was replaced by the Secured Overnight Financing Rate; while all other significant terms of the credit facility remain unchanged.

Triple Flag’s streaming assets are located in South Africa, Australia, the US, Canada, Mongolia, Colombia and Peru.