Triple Flag Precious Metals Corp

TSX:TFPM

Earnings Call Analysis

Strong Growth and Strategic Acquisitions Propel Triple Flag Forward

Triple Flag reported strong performance, achieving record first-half sales and a 25% increase in cash flow per share year-over-year. The company is on track to meet its 2024 GEO sales guidance of 105,000-115,000 ounces. North Park continues to drive growth with higher open pit grades, and new acquisitions like Tamarac and Agbaou add further value. Triple Flag expects long-term growth, targeting 135,000-145,000 GEOs by 2028. The company's disciplined capital allocation has enabled a 5% increase in dividends, reflecting robust cash flows and a strong balance sheet. Leadership transitions are proceeding smoothly, ensuring continued success.

Strong Q2 Performance and Record Growth

In the second quarter of 2024, Triple Flag reported robust sales of 27,000 gold equivalent ounces (GEOs). This performance not only marks a significant increase compared to previous quarters but also sets the company on track to achieve its annual sales guidance of between 105,000 and 115,000 ounces for the year. The North Park asset continues to be a standout performer, with a notable 25% year-over-year growth in cash flow per share, primarily due to improved open pit grades.

Exciting Future Prospects at North Park

Looking ahead, the company anticipates further growth, projecting sales of 135,000 to 145,000 GEOs by 2028. An exciting development includes the potential for high-grade production from a new sublevel cave at the E8 mine, following the conclusion of open pit mining. This focus on organic growth underscores Triple Flag’s commitment to long-term value creation.

Strategic Acquisitions and Capital Allocation Discipline

In the recent months, Triple Flag has maintained a strong pace of strategic acquisitions, including a royalty interest in the Tamarac project and new gold streams on the Agbaou and Monogram mines. The management emphasized disciplined capital allocation, especially during a period of strong precious metal prices. In line with this, Triple Flag announced its third consecutive annual dividend increase of 5% since its listing in 2021, showcasing the company’s strong financial health and shareholder focus.

Leadership Stability and Organizational Growth

The CEO transition appears to be proceeding well, with current CEO Shaun Usmar and CFO Sheldon Vanderkooy guiding the company effectively. The promotion of internal candidates to key positions reflects the management's commitment to nurturing talent within the organization. This stability in leadership is expected to facilitate continued operational success.

M&A Pipeline and Market Considerations

Sheldon Vanderkooy noted a robust pipeline for acquisitions, particularly in the $100 million to $300 million range, which remains the sweet spot for the company. While there are larger potential deals in the market, the company remains focused on ensuring that any transaction provides tangible value to shareholders. The company actively seeks both larger and smaller transactions to enhance its asset base while avoiding potential pitfalls associated with risky investments.

Conclusion: A Strong Position for Investors

Overall, Triple Flag is demonstrating a strong operational performance amidst nearly cyclical highs in gold and silver prices. Its consistent sales growth, disciplined capital acquisitions, and commitment to shareholder value position it strongly for the future. Investors can take confidence in the company's ability to navigate the intricacies of the mining sector while providing consistent returns.

Earnings Call Transcript 2024-Q2

[Operator]

Thank you for standing by. My name is Bailey, and I will be your conference operator today. At this time, I would like to welcome everybody to the Triple Flag Q2 2024 Results Conference Call. All lines have been placed on mute to prevent any background noise. [Operator Instructions] I would now like to turn the call over to Shaun Usmar, CEO. You may begin.

[Shaun Usmar, executive]

Thanks, Bailey. Good morning, everyone, and thank you for joining us to discuss Triple Flag's Second Quarter of 2024 Results. Today, I'm joined by our CFO, Sheldon Vanderkooy and our Senior Vice President of Corporate Development, James Dendle.

Triple Flag delivered another strong performance in Q2, with sales of 27,000 GEOs. This has resulted in a record result for triple flag in the first half of the year and places us firmly on track to achieve our 2024 GEO sales guidance of 105,000 to 115,000 ounces. Our flagship asset, North Park continues to deliver quarter-on-quarter growth in GEOs due to higher open pit grades. This has underpinned year-over-year growth of 25% in cash flow per share.

We're also excited about the opportunity for further value creation that evolution is demonstrated in only 8 short months as the operator of North parks. Most notably, the opportunity for high-grade production from a new sublevel cave at the well-established E8 mine after the completion of high-grade open pit mining is an exciting development that we're watching closely. Looking ahead, Triple Flag's organic growth profile remains strong and well positioned to deliver long-term value with expected sales of 135,000 to 145,000 GEOs in 2028.

On the deal front, we've also maintained a solid pace of accretive acquisitions over the past month with an additional royalty interest in the Tamarac project operated by TallerMetals as well as new gold streams on the Agbaou and Monogram mines operated by Allied Gold. Ultimately, we remain disciplined towards capital allocation during this period of strong precious metal prices and are pleased to announce that the performance of our business has provided the basis for our third consecutive annual increase of our dividend by 5% since we listed in 2021.

Finally, the CEO transition has gone extremely well. Sheldon is running the day-to-day with the team in a seamless fashion, which is one of the clear benefits of the choice of the funding internal candidate who is well regarded by the market and team alike. Our full organizational picture has now also been set. I might departure in Q4 of this year, Eban Bari will become Chief Financial Officer; and James Dendle will become Chief Operating Officer. The promotion of V-band and James is a testament to the leadership and expertise as core members of Triple Flag high-performing team.

Eban has been with triple-play for 6 years, serving as VP of Finance and responsible for all finance functions, including financial reporting, tax and treasury. James, who many of you know well, so in triple flag in 2017, Petacorporate development function is a talented resource geologist by training that has worked across the globe with SRK in its former life. These promotions reflect Triple Flag's commitment to developing and creating growth opportunities for internal talent, a multiyear succession plan in action and showcases that our true competitive advantage has always been our exceptional team.

Furthermore, we are pleased to have Fraser Cunningham recently joined the team as Managing Director of Triple Flag International based in Bermuda. Fraser has a long history with Triple Flag, previously as an investment banker with Scotiabank and Bank of America, having advised us on our 2021 IPO and 2020 acquisition of North Park. Fraser brings tremendous deal experience, networks and leadership to the deep time pool that exists at the company. We're excited to welcome Fraser to Triple Flag. I'll now turn it over to Sheldon to discuss our financials for the second quarter of 2024.

[Sheldon Vanderkooy, executive]

Thank you, Shaun. We had a strong first quarter with a portfolio producing over 27,000 GEOs and record first half GEOs of just under 55,000 ounces. This puts us right on track to achieve our 2024 guidance. Cerro Lindo and North parks continue to be the 2 largest contributors to Q2 revenues, with Cerro Lindo receiving a strong benefit from the rise in silver prices and North Park showing year-over-year growth due to the higher gold grades realized.

Strong production and strong gold and silver prices resulted in record levels of revenue and adjusted EBITDA that are significantly higher than the prior year period. Most notably, operating cash flow per share increased 25% when compared to the prior year period, which is the metric that I am most focused on. The streaming and royalty model is working as it should, with higher prices resulting in more cash flow to shareholders and not being consumed by capital expenditures or operating margin compression. I am also pleased that our dividend has been increased to $0.22 per share annually, up 5%. We have increased our dividend every year since our IPO in 2021, and it is my intention that we will continue this track record going forward.

I view growing dividends as a core part of our capital allocation strategy. Lastly, I'd like to comment on our balance sheet. We are excited the quarter with a small net cash position. Our portfolio generates robust cash flows, which allows for deployment into new asset additions, dividends and share buybacks and repayment of debt. Through the course of 2023 and the first half of 2024, we repaid debt taken on in connection with the Maverick acquisition. We acquired cash flowing royalties on Agbaou install, all while increasing our dividend and buying back shares. Our cash flow outlook combined with nearly $640 million of current available liquidity gives us the financial capacity to deploy further capital for future per share growth as well as deliver higher shareholder returns.

Turning now to Slide 6. I am very pleased with our continuing record of production growth. We are right on track for 2024 guidance, which will represent our seventh consecutive year of production growth. We are also well positioned for longer-term growth. We expect our portfolio to deliver 2028 sales of 135,000 to 145,000 GEOs, a significant increase over current levels. This is despite the removal of Pumpkin Hollow and Mass mine from our outlook.

This 2028 outlook reflects the assumptions listed on the slide. These include the development of the E48 sublevel cave at Northpark, Phase 2 production from ATO, first Newton copper production at Johnson Camp Mine and the development of assets such as SK Creek, Wookey, KONE and Prieska as well as many others.

Turning now to Slide 7. We continue to highlight our asset diversification; precious metals focus and a portfolio which derives over 85% of its revenue from Australia and the Americas. Our Q2 revenues were 100% derived from gold and silver. I want to highlight that we have meaningful silver exposure, representing 40% of Q2 revenues and reflecting strong performance at Cerro Lindo and Buritica.

Silver has great potential in today's environment and represent significant upside for us going forward. Our shareholders invest in us for gold and silver exposure. Gold today is trading at over $2,400. It is a fantastic time to be invested in precious metals. Increases to the gold price will translate directly into increased cash flows for our shareholders. I'm very pleased with the charts on Slide 8. We Strong production and strong gold prices are delivering record revenues and most importantly, record cash flows. The model is working as it should. Fundamental to our model are the sustained 90% asset margins, which inflate us from margin compression and CapEx overruns.

There is an ongoing debate about the stickiness of inflation in the broader economy. Our model insulates us from inflationary pressures and provides consistent high margins and, therefore, dependable cash flows. I expect the per share cash flow increases to continue for years into the future as we deliver on our 2028 growth outlook and look for additional opportunities to deploy free cash flow into accretive acquisitions to the benefit of our shareholders. Over to you, James.

[James Dendle, executive]

Thank you, Shell. On parts is a key asset for Triple Flag, providing tremendous optionality through growth across different tier flexibility across all bodies and discovery potential across the properties. In the near term, 31 open pits continue to deliver high gold growth, driving both meaningful quarter-on-quarter and year-over-year growth. In Q2, the processed gold growth from 31 was 0.34 grams a tonne higher than the $0.28 per tonne in Q1 and above the 0.15 grams per tonne average from 2021 to 2023.

In the medium term, mining of the E48-sublevel care is expected to contribute to a steadier production profile at North Park versus the previous mat plan following the depletion of the E31 pets through to the commissioning of the E22 underground. In the longer term, first production from E42 is expected to be 2029, and studies are being advanced to optimize development of this ore body, assessing blockade and sublevel cave methods or hybrid poach.

Evolution has announced the discovery of the major Tom and E51 deposits at a shallow depth adjacent to the E26 deposits 4 kilometers from the plant. Intersections include 180 meters at 0.97% copper and 0.13 gram per tonne gold at Majoro and 142 meters of 0.88% copper and 0.14 grams per tonne gold at E51. Interestingly, these deposits offer a potential for extraction, independent of the underground materials handling system and drilling is ongoing. We could not be more pleased with Evolution's optimization work to enhance the future in North Park.

Turning to our new streams. I'm also pleased to announce the acquisition of 3% gold streams on the Agbaou and Bartaco mines operated by Allied Gold and Cotoirefor total cash consideration of $53 million, with minimum deliveries through to 2027 of at least 6,000 gold equivalent ounces per annum on a combined basis. Upon close, these assets add immediately cash flow and notably are expected to achieve full payback within the minimum delivery period through 2027 in the current gold price environment. Closing is expected by late August 2024.

Allison is an experienced operator. This has demonstrated value creation through exploration investments in as short time as a public company with further synergy potential being advanced by combining Agbaou crone into a single complex. Triple Flag has an existing 2.5% net smelter resumed royalty on ag band, which we acquired around a year ago, and we know the team and the asset well.

Our streams cover the existing mining and exploration licenses for Adam Bonikro, were an extensive $16.5 million exploration program is being executed in 2034. Ultimately, Allied is targeting a production rate of 180,000 to 200,000 ounces per annum and a great 10-year mine life from the combined complex. We look forward to working with Allied as an operating partner for years to come on packable growth. Back to you, Shaun.

[Shaun Usmar, executive]

Thanks, James. This is likely the last set of results. I'll present a CEO Triple Flag. I started the business in May 2016 with nothing more than the undertaking of a great financial partner in Elliott Management, perfectly embody to moxis ready, the driving force will hand this journey. We shared an appreciation of many advantages of the streaming and royalty business model and a vision of what value could be created by applying this model to an underserved mining sector.

With the company approaching 9 years of execution and delivery, I'm proud of what we've built together, and I'm forever grateful for the opportunity afforded to me. We've got from obscurity to become the fourth largest precious metal streaming and royalty company in the sector. And with these latest results, we delivered a strong start to 2024 with record performance in the first half, which puts us nicely on track to achieving our guidance of 105,000 to 115,000 GEOs for 2024. This would represent our eighth consecutive projected year of record growth for our business and build on the 34% CAGR in operating cash flow, this team has already delivered over the past 7 years.

I'm not aware of any competitor having replicated this delivery, certainly under similar conditions and time frames. Our job is to allocate capital and create value for our stakeholders through rational risk taking in pursuit of growing value per share. I'm proud of our track record, which is on full display on an absolute and relative basis and stacks up favorably on objective metrics. We've not been flawless as our disappointment at Pumpkin Hollow and mass indicates this quarter. but this relates to 2 of our 236 assets, where the portfolio overall continues to deliver. No portfolio only has winners and the overall portfolio performance continues to shine through.

GEO guidance this year is nearly 40% ahead of our intermediate peers. And we remain the only competitor amongst our seniors and intermediates to be on track to deliver growth from our portfolio this year versus the prior year. We remain commercially well placed to maximize value for our investors while forecasting continued robust growth through to 2028 and beyond from our existing portfolio. With our ample firepower of roughly USD 640 million in available pro forma liquidity, making our active deal pipeline fully actionable and cash flow for more than 30 assets.

Triple Flag is diversified and well positioned to benefit from the current constructive metal price environment as we continue our interest. Ernest. Well, I'm proud of our objective of financial and deal-making achievements, I'm particularly proud of how we've got about delivering those results. As a relatively new company, this is perhaps best demonstrated by a second ranking by Sustainalytics of 118 global companies covered in the precious metals sector, contributed millions of dollars to support our mining partners sustainability priorities to enhance the privilege to operate.

Help give back to the mining sector's future through many scholarship programs we've granted to Tale students and done so while maintaining our carbon neutrality since our inception. But the true asset I've helped develop a triple flag this past 88 years is our team and the exceptional talent and depth of experience it contains. This team has delivered the deals, the growth, manage the risks, nurture our stakeholder relationships, cultivated our deal pipeline, delivered the largest TSX mining IPO in 8 years and delivered growth in value, both financial and social as large investors in triple flag themselves.

I'll miss the mall, this truly is the secret source, our competitive advantage, along with the inclusive of carrying NDP analytical, highly engaged culture that drives our performance. Taking our new challenges the CEO of Vales metals would not have been possible if the business was not performing well and with our business on track to deliver our year of record growth in our balance sheet in pristine condition and our underperforming assets cleaned up, while our core assets continued to deliver strongly during tons of robust commodity prices, Kivits is a good time.

An equally important requirement was to provide the Board with strong succession possibilities. We've committed significant time, money and resources in developing our internal talent depth over the past few years while delighting strong external talent alternatives. As the largest individual shareholder, I'm grateful to the Board for acting decisively in appointing Sheldon as my successor and know he is the right choice to lead this team into an even better future as someone who joined me on this journey from a second week has helped deliver every deal and has a perfect cocktail of integrity, great commercial acumen and importantly, has the respect and support of the team that will be leading.

He's been my right hand and business partner for the past 8.5 years, and I'm proud of what he's achieved in his personal and professional growth. The transition is accordingly proceeding seamlessly, and Shavin is already running the company on a day to debt basis. I expect he'll formally take over by the end of the quarter as I transition to my new role. I'd also like to think that Sheldon and the Board made excellent decisions in appointing Eban Bari, as CFO; and James Dendle as the CEO, effective on my departure.

They've been with the company for many years, are deeply talented, our culture barriers and are respected in mind by the teammates and our mining partners alike. Given worked with me at Barrick and the senior finance capacity and offers depth and experience well beyond the scale of this organization. And James has been involved since our first deal in 2016, as Depalo resource geologist and leader that has worked around the world and have successfully led our corporate development capabilities and IR function through a successful IPO and beyond.

These are talent in the sector will benefit well into the future. I'd like to congratulate them both and look forward to watching them continue to grow, thrive and deliver for our shareholders, myself included. Finally, I'd like to end by thanking Elias, our incredible finding shareholder and partner for their trust and sustained support our Board for their guidance and leadership, our money partners for their partnership and commitment our investors for their trust with their money and our remarkable team for making it all possible.

There's been the privilege and I'll highlight my career so far, and I'll leave with the sensor sadness enjoy pride and excitement for the future. Thanks for the support and attention today. So with that, let's open it up to questions.

[Operator]

[Operator Instructions]. Your first question comes from the line of Mikel Abasolo.

[Mikel Abasolo, analyst]

My question, I actually have to. One is what is the basis of your expected gold and silver price for the future? What's the rationale behind that assumption of those 2 prices? And the second and more relevant question to me is about the impairment charges. I see that there hasn't been mentioned on your part about this, and it's not it's not disclosed first in the document. But I think it's I see that it's a large amount. I wanted to know what went wrong there, what was the fault and if there is any chance of reverting the loss or you think it's definitive loss.

[James Dendle, executive]

Mikel, thanks. I guess on the first point on gold and silver prices, look, I mean, doing the math on this is pretty easy when you look at the ounces on margins and translating it forward. We don't project forward gold prices or silver prices. For our investment decisions, we use a range of pricing. We'll look at consensus, we'll look at spot, we'll look at where investments start losing money because we understand that it is a dynamic environment.

And I think the important feature Hertogh, is we are structurally bullish gold and silver, particularly in a world where we see continued central bank money printing and currency devaluation. I've did a podcast fairly recently with Grant interest Rate Observer where we're going to this in some detail. So to the extent that's of interest, I direct you in that direction. On the impairments, look, firstly, I think if you look at certainly most analysts out there, this is something we've provided full disclosure on these underperforming assets in the case of Nevada Copper for years and a most recently.

I think the best way to think about that is we are not adjusting our guidance for this year. We'd already incorporated the underperformance into our views. We communicate those quite seriously. And just given sort of triggering events from an accounting point of view, the prudent thing to do is what we've done, which is recognize that. I'll ask Sheldon to perhaps comment further, but you'll see full disclosure in our MD&A and how we thought about it and also how Sheldon can comment on where we stack. I think there are many lessons. I think the first thing, when you look at mass is that was part of a portfolio of 114 assets that we acquired at a small premium when we acquired Maverix.

As you'd appreciate, when you buy the many assets, you have some underperformance. We recognize that, that was suffering before we went into that investment. We requested the team made sure it has sufficient working capital in this struggle. They continue to underperform. And I think the one lesson we've learned over the last 8.5 years is there's a point where you have to make sure you're not throwing good money after bad. It's an asset in this price environment that I think if it was properly capitalized and there was sort of good exploration, I think with other owners and a focus, there could be some interesting future in that asset, but we're not prepared to continue funding that.

So hence, the recognition. On Nevada copper, there's probably more time than we've got. So I think we've covered this in many years in the past. It's a copper asset in the United States with an underground mine that's near built and an open pit. They've been various owners over time, which could have taken and developed that. It is in a process at this stage, and we'll see where it gets to. But I think the prudent thing which we have done from an accounting point of view is to sort of fully reflect that write-down. Shaun, do you want to pick up on that or can you say anything else?

[Sheldon Vanderkooy, executive]

No, I'll speak to that, Shaun. This is Sheldon speaking. Yes. So both Punki Halo and the Mass mine, they're currently in insolvency processes. So we do have a prospect of recovery and the optimism we would like to think we will have it. But for financial reporting purposes, I think it's very important for us to be prudent and for us to be conservative.

The Pumpkin Hollow mine is in the Chapter 11 process in the United States, the most mines in the CCAA process in under Canadian insolvency proceedings. We are secured on both those assets, and so there is some prospects. But what we did is we wrote those down to 0. We thought it was very important because despite the fact that these represent properties in the United States, Mason, the case of mass, gold's at all-time highs, copper prices are robust. There's a lot of some capital there. And so I can see some recovery there. I don't want to hold out the hope publicly of that because these are inherently uncertain processes.

We thought being conservative was the right stance we wrote them down to 0, and that allows our investors and shareholders to understand that there can be no further bad news from these assets. And I've seen others in our sector take a similar stance with uncertain processes where they may be the prospect of recovery, but they going to 0, I think, gives a base and it's and you can be confident that there is no further financial statement exposure from these 2 assets for triple-play.

[James Dendle, executive]

And Mikel, just in by just saying, look, the fundamental performance and the work this team does on the portfolio should be self-evident, both in terms of capital deployment, the yields we're generating, the cash flow that this is generating. We're building a portfolio, and that's what we've done with over 230 assets. So hopefully, that addresses your question.

[Operator]

Your next question comes from the line of Tanya with Scotia Bank.

[Tanya Jakusconek, analyst]

Congratulations, Shaun, on your new appointment and Sheldon and team on yours. I got a couple of questions. The first thing I'm just going to start is on the just some modeling questions. Just we are expecting a stronger second half. I think that's your guidance for the year. Can I just review we had talked about quarter-over-quarter improvement at North Park. Is that still what we're expecting, therefore, Q3 is going to be a bit lower than Q4 with Q4 being the best quarter overall for the company and a feel for that.

[Shaun Usmar, executive]

Okay. Well, first Tanya, thanks so much. It's good to share. I'm going to ask James to comment on that.

[James Dendle, executive]

Yes. Tanya, we don't provide asset-by-asset sort of quarterly guidance. But directionally, we've got a stronger Q3 than a slightly softer Q4 for North Park, which is what we're expecting right now. But obviously, those things do change with production scheduling and sketching and deliveries and shipments.

[Tanya Jakusconek, analyst]

Okay. So okay. So Q3 for North Park stronger than lower Q4. And then for the company as a whole, then should I be thinking as Q3 equals Q4 generally speaking?

[James Dendle, executive]

Tanya, I think it's portion the right. We don't provide quarterly guidance. I think we've tried to provide directional guidance, particularly as it relates to the big asset. There's a lot of moving pieces and the guidance rate we have is what we're on try to achieve.

[Tanya Jakusconek, analyst]

Okay. Maybe I'll move on then to just looking at the acquisition that you did last night or announced last night. Looking at that production profile that you the company has given and looking at what your guidance is using 1850 that you've given for like 2028 or 1900 thereabout, would you say the internal rate of return is in line with operating lines, which are generally in the 5% to 6% range. Would that be fair, James?

[Shaun Usmar, executive]

That thing significantly superior.

[James Dendle, executive]

Yes. Tanya, this is -- both mines are relatively not as a reserve life, but a long potential light beyond that. And you'll recall, we acquired a royalty on these on Agbaou at least about a year ago. And since acquiring that royalty, the mine life is increased dramatically. It's been a really good investment for us. And we expect the company to better ad in the mine life here. We see this as a much more robust return at content prices than you mentioned, partly driven by the fact the mine life on a reserve basis is shorter. But I think even with that, we think it would be more like double digits reset. And we think the minimum deliveries is strong this transaction.

[Tanya Jakusconek, analyst]

Okay. So you're thinking double-digit return on sort of the $1,900 gold price just on reserves alone? Or are you including some of the resources?

[James Dendle, executive]

So we have seen some of the resources convert. We've made modest assumptions based on our historical knowledge and current analysis of the property that some of the resource converts.

[Tanya Jakusconek, analyst]

Okay. So you do have some of the resource in there. Okay. No, that's helpful. And then finally...

[James Dendle, executive]

I think. And underappreciated with these assets is traditionally, Agbaou has been explored on the compensation area, which is basically the miles. There's a very large property around there, which is actually quite remarkable under its port. And while we're not especially pricing that into the transaction, I think it represents great upside for both us and Allied's part of the deal we really like, and I think that's supported by the amount of money that's going into exploration these promises spread out.

[Tanya Jakusconek, analyst]

Okay. And then just on the M&A pipeline or the deal pipeline that's out there. We've always talked about $100 million to $300 million range. But one of your competitors has talked about now the range is up from $100 million to $700 million. So maybe, James, if you can talk to us about whether you are seeing now larger deals, your deals have been under $100 million. So I'm just kind of thinking what's your sweet thought and what you're seeing out there?

[James Dendle, executive]

Tanya, I think our sweet side is remains the same as it has in our prior discussions at this point, the $100 million to $300 million range is a really good one for us. It's very easy for us to fund. It also would result in deals as meaningful scale in proportion to the size of the I think it's fair to say that all the large transactions seen by all the competitors, realistically, if somebody is getting a phone call on a $700 million deal, we're also getting full a $700 million deal. So there's probably some consistency across that end of transaction scale, which we're seeing, but there is some complexity in these deals, particularly at the larger end, and there's no guarantee that discussions that have involved transactions at the $500 million-plus mark actually come to book.

The late with the underlying cash parties. So we're optimistic that the pipeline looks good on those larger transactions, but it's very difficult to forecast the timing. There continues to be a number of smaller transactions to the market. I think this was a great addition in the immediate cash flow and it was available in the market to us, and we had a great insight to the assets. So we'll continue to add these sort of acquisitions where we can. I think the key is there's a large number of companies who start with capital. Some of those represent good opportunities, but some of those represent hazards. And really, it's avoiding the hazards with some of the smaller, more challenged situations. But we're seeing a strong pipeline, so we're pretty happy about it.

[Shaun Usmar, executive]

And Tanya, I'd just add that as you'd appreciate, with Sheldon James, given and others having sort of been at the decision-making table for the extent of this journey. I don't think and Sheldon can comment beyond but that you should expect any change in definition and sweet spot to discipline on value or capital allocation. And it's the point on the sweet spot, I would think if somehow we find another Northpark tomorrow, we have the capacity to do that. And you should expect that we would do just that, I would think.

[Tanya Jakusconek, analyst]

Okay. And then we're still seeing in precious metals, both on the development assets and producing assets, those are still that 100 million to 300 million deals? Are you still seeing the same thing?

[Sheldon Vanderkooy, executive]

Tanya, this is Sheldon. Yes. I think there's really been no real appreciable change in the pipeline over the course of the year. I don't want to just reiterate all of Jamie's points, but it's like it's a pretty deep pipeline. There are some of those like very large transactions out there. But as James said, you never it's hard to get visibility on what the percentages of those being realized and they might not come to the market at all, right? These are the decisions the operators are making and they're surveying their menu of choices. But there's also this deeper pipeline of smaller transactions, which also can represent really good value for us.

And I kind of point to the deal that we announced yesterday on Agbaou and [ Bartaco ]. I think these are really good transactions for us and a really good home for over $50 million of our capital. So if we could bring some more of those to book, that's good. But if we find something that's sizable and it benefits the value of shareholders, I think we're going to be hunting those down as well.

[Tanya Jakusconek, analyst]

And you'd be open this indication like you mentioned on the previous call.

[Sheldon Vanderkooy, executive]

For sure. It's of a certain size, we're certainly open this indication. And particularly, if there's a factor there that, for some reason, Leno don't want to be overweight in a portfolio, whether that's stage, some kind of aspect of the risk profile that you think on a risk return basis, it's attractive on a smaller size and but on a more heavy basis, it's not where you want to go. So we've had a good dialogue with a number of parties. I mean, we've seen examples of that in the market recently, where someone did partner or syndicate, and we're certainly open to any of those discussions. At the end of the day, we want to do its best for triple flag shareholders. That's our objective.

[Operator]

[Operator Instructions]. And there are no further questions at this time. I will hand the call back over to Mr. Sheldon Vanderkooy for closing remarks.

[Sheldon Vanderkooy, executive]

Really, thank you, and thanks, everybody, for your time and attention today and the questions. I'll just leave you, I think, where we started. I think what people say and what they do with the current side. And I think what you're seeing in this team is execution on what we've set out to do, manage a sensible portfolio, focus on shareholder value and when you start looking strongly at the actual track record, particularly coming into this year, at the time that coincides with near cyclical highs in gold and silver prices, you see the benefits.

I mean, with us being literally 1 of only 3 between the seniors and intermediates who hit guidance last year and were the only guys to indicate increases in our guidance for this year and be well on track with record performance in the first half of the year with a good balance sheet, more deals in the pipeline and underpinned with a really strong team. I think for our investors, that puts triple flag in an incredibly strong position. So with that, I just thank you all very much, and we look forward to more of this in the future with the Triple Flag team. So thanks very much, Bailey.

[Operator]

Thank you. This does conclude today's conference call. You may now disconnect.