Triple Flag buys royalty on Argentine lithium project

Published 12/19/2024, 08:06 PM
TFPM
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The forward-looking statements in this article are based on management's expectations, estimates, and projections and are subject to risks and uncertainties that could cause actual results to differ materially. These statements are based on information available as of the date of this release and are not guarantees of future performance. For investors seeking deeper insights, InvestingPro offers exclusive access to detailed financial metrics, Fair Value calculations, and comprehensive analysis of TFPM's performance relative to its peers, helping you make more informed investment decisions. For investors seeking deeper insights, InvestingPro offers exclusive access to detailed financial metrics, Fair Value calculations, and comprehensive analysis of TFPM's performance relative to its peers, helping you make more informed investment decisions. The Tres Quebradas project, owned by Zijin Mining Group Co., Ltd., is a high-grade lithium brine asset with a multi-decade reserve life and significant resource upside.

The transaction, expected to close in the first quarter of 2025, secures Triple Flag a royalty that extends over all mineral properties of the project. Zijin acquired Tres Quebradas in 2022 for $770 million and has invested over $600 million in its development. The project is fully permitted, and Phase 1 construction is underway, targeting an annual production capacity of 20,000 tonnes of battery-grade lithium carbonate.

Royalty revenue from Phase 1 is anticipated to commence in the second half of 2025, with a projected ramp-up to a steady-state of approximately 1,000 gold equivalent ounces per year over three years. There is also potential for Zijin to expand production capacity to between 40,000 and 60,000 tonnes of lithium carbonate in Phase 2.

Sheldon Vanderkooy, CEO of Triple Flag, expressed satisfaction with the acquisition, noting it as a counter-cyclical opportunity to deploy capital in a large mining project. He also highlighted the growing relationship with Zijin, a significant producer of precious, base, and critical metals.

Tres Quebradas, located in Catamarca, Argentina, was discovered in 2015 and is designed to produce battery-grade lithium carbonate with low impurities. The asset is well-positioned within Argentina's lithium industry, which ranks fourth globally in production and second in mineral resource endowment.

The forward-looking statements in this article are based on management's expectations, estimates, and projections and are subject to risks and uncertainties that could cause actual results to differ materially. These statements are based on information available as of the date of this release and are not guarantees of future performance. For investors seeking deeper insights, InvestingPro offers exclusive access to detailed financial metrics, Fair Value calculations, and comprehensive analysis of TFPM's performance relative to its peers, helping you make more informed investment decisions.

The forward-looking statements in this article are based on management's expectations, estimates, and projections and are subject to risks and uncertainties that could cause actual results to differ materially. These statements are based on information available as of the date of this release and are not guarantees of future performance.

This news article is based on a press release statement and does not represent an endorsement of the company or its claims.

In other recent news, Triple Flag Precious Metals Corp. announced record sales and a strong operational performance in its third-quarter earnings call for 2024. With nearly 30,000 gold equivalent ounces (GEOs) sold, the company is on track to hit the upper range of its annual production guidance. A significant increase in operating cash flow per share was noted, primarily due to high gold prices and stable margins. The company's CFO, Eban Bari, highlighted a net debt of $11 million along with a robust adjusted EBITDA, indicating strong liquidity for future investments.

Triple Flag Precious Metals Corp. also recently joined the S&P/TSX Composite Index, a move expected to enhance its market visibility. The firm's core operations are mainly focused on Australia, complemented by opportunities in Latin America. In terms of future expectations, Triple Flag anticipates achieving the upper half of its 2024 production guidance and has nearly $690 million available for future capital deployment. The company's CEO, Sheldon Vanderkooy, expressed optimism about the firm's performance in the upcoming quarters and into 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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