Triple Flag secures $440M gold stream on Australia's Ravenswood mine

Triple Flag Precious Metals (NYSE:TFPM) announced that its wholly owned subsidiary, Triple Flag International, has entered into a definitive agreement to acquire a gold stream on the producing Ravenswood Gold Mine in Queensland, Australia.

The streaming company will pay an upfront cash consideration of $440 million, establishing a major cash-flowing cornerstone to its precious metals portfolio and boosting its long-term production outlook.

Under the terms of the structural agreement, Triple Flag has secured the right to purchase 5.50% of payable gold from the Ravenswood operation.

The stream rate will automatically step down to 3.75% after the delivery of 194,200 ounces of gold, and will contract further to 2.50% once cumulative deliveries reach 253,000 ounces.

Triple Flag will make ongoing cash payments to the mine operators equivalent to 10% of the prevailing spot gold price for each ounce delivered during the first tier, increasing to 20% of the spot gold price for all subsequent deliveries.

The immediate transaction profile is backed by guaranteed near-term volume protections.

The stream includes target cumulative quarterly delivery thresholds running from the third quarter of 2026 through the second quarter of 2028.

This multi-year mechanism guarantees total deliveries of 22,928 ounces over the initial 24-month window, materializing as quarterly physical deliveries of approximately 2,300 to 3,300 ounces of gold, subject to an overarching quarterly cap of 8% of the mine's actual total output.

The massive capital allocation directly reflects the institutional tier of the underlying asset.

Jointly owned by private equity firm EMR Capital and Golden Energy and Resources (GEAR), the Ravenswood open-pit operation stands as one of the 10 largest gold mines in Australia by ore reserves.

Current proven and probable ore reserves sit at 147 million tonnes at 0.61 grams per tonne, containing 2.8 million ounces of gold, alongside an additional 1 million ounces labeled as inferred resources.

The operating partners have deployed over A$830 million ($570 million) in expansion capital since 2020 to build an 8.6 million tonnes per annum conventional carbon-in-leach mill facility.