Canaccord Genuity (TSX:CF, LSE:CF) analysts have maintained their ‘Hold’ rating and price target of C$18 for Triple Flag Precious Metals (TSX:TFPM) Corp after the miner reported record 4Q and full-year gold equivalent ounce (GEO) sales.
Triple Flag’s Toronto-listed shares are currently trading at about C$18.85.
In a note to clients, the analysts wrote that Triple Flag reported record fourth quarter GEO sales of 25.4koz, 15% ahead of their estimate of 22.1koz and up 30% quarter-over-quarter.
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Triple Flag’s full-year GEO sales were also a record at 84.6koz, ahead of the 83.6koz sold in 2021, but falling short of the company’s guidance of 88koz to 92koz, the analysts noted.
“Management was guiding to the low end of guidance and notes that over 3,850 GEOs were impacted by timing differences, including 1,850 GEOs impacted by the increased quotational period settlements at Cerro Lindo, 900 GEOs related to rail and shipping delays due to weather at Northparkes (which were delivered on January 6th) and 1,100 GEOs linked to slight delays in settlements at Buriticá and ATO (400oz of which were received in the first week of January),” the analysts wrote.
Triple Flag’s proposed US$600 million acquisition of Maverix Metals Inc (TSX:MMX), announced in November 2022, “continues to make sense to us,” the analysts added.
They noted that the acquisition would see Triple Flag gain increased scale, diversification, a stronger balance sheet, and increased trading liquidity.
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