Triple Flag Acquires Ravenswood Gold Stream for $440M
Triple Flag Precious Metals announces that its wholly owned subsidiary, Triple Flag International, has entered into an agreement to acquire a gold stream on the producing Ravenswood Gold Mine in Queensland, Australia for upfront cash consideration of $440M. With the addition of Ravenswood, the company increased its 2030 outlook to 150,000 to 160,000 GEOs, from 140,000 to 150,000 GEOs."Key Terms and Transaction Highlights: Immediate cash flow and enhanced gold exposure from Queensland's largest gold mine, underpinned by target gold deliveries for two years; With the recent A$830M investment complete and the asset capitalized to continue its ramp-up, annual production at the Ravenswood Mine is expected to be over 200,000 ounces of gold by 2028. Ravenswood Mine produced 134,000 ounces of gold in 2025. As per the Wood Mackenzie total cash and sustaining capital gold cost curve estimate for 2026, the life of mine average cost at the Ravenswood Mine ranks in the first half of the cost curve. Triple Flag has the right to purchase 5.50% of payable gold from the Ravenswood Mine under the Stream. The Stream rate steps down to 3.75% after 194,200 ounces of gold has been delivered, and then to 2.50% after 253,000 ounces of gold has been delivered. Triple Flag will make ongoing payments of 10% of the spot gold price for each ounce delivered until 194,200 ounces has been delivered, and 20% of the spot gold price thereafter. The Stream is subject to target cumulative quarterly gold deliveries starting in the third quarter through to the second quarter of 2028, inclusive. Over this period, these target cumulative quarterly gold deliveries total 22,928 ounces and will result in quarterly deliveries of approximately 2,300 to 3,300 ounces of gold, subject to a quarterly cap of 8% of actual production during each quarter. The Stream rate is subject to a 25% buydown option that is exercisable upon a change of control transaction for the Ravenswood Mine occurring within 48 months of the closing of the Stream in exchange for consideration that is dependent on the gold price and when the buydown is exercised. The Stream rate is subject to a separate, one-time 15% discretionary buydown option after 67,030 ounces of gold is delivered within a 30-day window in exchange for consideration set at the greater of: 33,060 ounces multiplied by the spot gold price at the time, capped at approximately $198.7M; or $92.4M. The obligations and interests under the Stream will be secured and registered in favor of Triple Flag following Foreign Investment Review Board approval. Triple Flag holds a right of first offer on new streams and royalties on the Ravenswood Mine. Closing is expected in June. The transaction is expected to be funded from available capital, including cash on hand of $144M as of March 31, as well as a $1B credit facility plus a $300M accordion facility.
