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Triple Flag acquires Maverix Metals creating new streaming and royalty firm

Published by
Global Mining Review,

Triple Flag Precious Metals Corp. and Maverix Metals Inc. have announced that they have entered into a definitive agreement in which Triple Flag will acquire all of the issued and outstanding common shares of Maverix pursuant to a plan of arrangement, positioning Triple Flag as the leading emerging senior streaming and royalty company.

The Transaction will combine two complementary portfolios of predominantly gold and silver streams and royalties, creating a company that will:

  • Deliver increased scale and enhanced diversification, with 29 paying assets and 228 assets overall.
  • Feature gold and silver assets in good mining jurisdictions: by net asset value (NAV), 93% of the portfolio comprises precious metals and 82% is located in the Americas and Australia.
  • Strengthen Triple Flag’s already-robust organic growth pipeline in gold equivalent ounces (GEOs).
  • Target tangible pre-tax synergies of around US$7 million annually.

This combination – which is expected to be accretive on a NAV-per-share and cash-flow-pershare basis – represents a continuation of each company’s focus on building a pure play portfolio of high-quality, precious metals streaming and royalty assets, located in good mining jurisdictions and in the hands of responsible operators. The combined company will benefit from the strong cash flows of the resulting high-margin, high-growth, inflation-resilient, and diversified portfolio. The combination with Maverix will also diversify Triple Flag’s portfolio and shareholder base while providing a significant and immediate increase in GEOs, building on Triple Flag’s 26% CAGR in GEOs since 2017 and providing further opportunities to grow.

Shaun Usmar, Founder and CEO of Triple Flag said:

“This transaction creates the world’s leading gold-focused emerging senior streaming and royalty company, bringing together two complementary portfolios in a compelling combination. Triple Flag’s portfolio, with a strategic emphasis on larger, cash-generating assets, with more than 90% by NAV associated with producing mines, is complemented by Maverix’s highly diversified portfolio of 148 royalties and streams, with paying assets equating to around 60% of NAV. The combination builds on Triple Flag’s 26% compound annual growth rate in GEOs over the past five years, increasing from 84 koz in 2021 to an expected average of over 140 koz over the next five years, before factoring in the additional organic growth potential from the significant portfolio of exploration and development stage assets. Our liquidity position of over US$600 million and strong cash generation from the combined portfolio’s 90% cash margins, provide the ability to pursue further valuable growth through acquisitions and compete for the best opportunities in the sector. The combination is expected to be immediately accretive to Triple Flag’s net asset value and cash flow per share, while targeting US$7 million in annual pre-tax synergies. Both sets of shareholders will benefit from our enhanced scale, diversification, growth outlook and trading liquidity.”

Geoff Burns, founder and Chair of Maverix, said:

“The merger of Maverix and Triple Flag represents that rare opportunity to combine the best with the best. Since their respective inceptions, roughly 6.5 years ago, both companies have steadfastly stuck to their objectives of building pure play precious metals streaming and royalty companies, while simultaneously exercising prudent financial discipline. The increased scale of the combined company, with its highly complementary portfolios and a knowledgeable and supportive shareholder base, will provide real competitive advantages and should attract a premium valuation, to the benefit of both sets of shareholders. The industrial logic behind this combination is inescapable.”

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