Triple Flag Precious Metals (TSX: TFPM) has lifted its production guidance for the year after resolving a drawn out dispute with Steppe Gold (TSX: STGO), with the settlement delivering a fresh batch of metal and locking in a decade of guaranteed gold.
The streaming and royalty company now expects production of 100,000 to 110,000 gold equivalent ounces in 2026, up from a prior range of 95,000 to 105,000. The bump follows the receipt of metal that Steppe owed under arrangements that had fallen into arrears, along with fixed deliveries scheduled for the back half of the year.
Under the settlement, Steppe handed over 1,946 ounces of gold and 15,618 ounces of silver to clear all outstanding obligations tied to its stream agreement. A further 1,650 ounces of gold settled what was owed under a separate gold prepay arrangement, and another 500 ounces of gold changed hands as a fee for amending the stream.
“We are pleased to announce a settlement agreement with Steppe, in which Triple Flag has received all obligations in arrears,” said Chief Executive Officer Sheldon Vanderkooy. “Looking ahead, we have secured fixed gold deliveries over the next ten years from Steppe that are guaranteed, as well as long-term exposure to gold production from the ATO mine.”
The reworked stream sets out a fixed delivery schedule rather than one tied directly to output. Between the third quarter of this year and the end of 2036, Steppe will deliver a cumulative 34,770 ounces of gold on a declining quarterly schedule, with no buy-down provisions in place.
From the start of 2037, the arrangement shifts back to a production linked model. Triple Flag will then be entitled to gold equal to 1.5% of the prior quarter’s output from the ATO mine, capped at 500 ounces per quarter, with no step downs or buydown provisions.
The obligations remain secured by the ATO mine and backed by a parent guarantee from Steppe. As part of the deal, Steppe subsidiary Boroo Gold LLC layered on an additional corporate guarantee covering the fixed deliveries.
Triple Flag Precious Metals last traded at $37.49 on the TSX.
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