(Kitco News) – You need dedicated teams with staying power to drive meaningful supply in beaten down markets, noted Shaun Usmar, founder and CEO of Triple Flag Precious Metals.
In early March Usmar spoke to Kitco Mining at PDAC 2024 in Toronto, Canada.
Usmar was asked about the underappreciated copper markets. He said that the incentive price needs to be higher for serious investment to flow into the space, but management teams that are willing to work through downturns are key.
“[People] continue to underestimate the need for staying power and the time it takes from successful exploration in order to actually deliver first pounds of copper out of any investment opportunity,” said Usmar.
Triple Flag Precious Metals (TSX:TFPM) is a precious metals-focused, royalty and streaming company. The company has a portfolio of 32 producing assets and 41 in development. Usmar said the company has achieved a compound annual growth rate of more than 20% since 2017, and the company now sits at a $2.6 billion market cap.
Triple Flag is forecasting an attributable royalty revenue and stream sales of 105,000 to 115,000 gold equivalent ounces in 2024.
Within Triple Flag’s portfolio, Usmar highlighted Northparkes in Australia, which he says is about a quarter of the company’s net asset value. Output is set to increase at the mine.
“They’re entering into E31-E31 North, which is a high gold grade zone, so you’ll see a material increase in gold and silver.”
Usmar underlined alignment between management and shareholders.
“The key thing that underlines this is that we’ve got a lot of insider ownership,” said Usmar.
Coverage is sponsored by UEC (Uranium Energy Corp.), URC (Uranium Royalty Corp.) and GoldMining.
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