RBC Capital Markets maintained the sector perform rating and US$40 price target for Triple Flag Precious Metals (TFPM.TO).
TFPM announced the acquisition of a US$440 million gold stream on the Ravenswood gold mine in Queensland, Australia, and increased its 2030 outlook by 7% to a range of 150,000 to 160,000 gold equivalent ounces. The previous guidance was 140,000 to 150,000 GEO.
RBC noted a positive impact and calculated base rate case returns of a 2% internal rate of return and 10% three-year cash yield, utilizing reserves and spot gold prices.
"The transaction is 8% accretive to near-term CFPS and adds diversification, but reduces NAVPS by 2% if assuming strictly base case reserves," the bank said.
TFPM's share price gained 4.5% to C$42.63 on the Toronto Stock Exchange at last look Monday.
Price: $42.64, Change: $+1.86, Percent Change: +4.56%