Triple Flag Precious Metals Corp. (TFPM) Stock Analysis

Triple Flag Precious Metals (TFPM) benefits from several durable competitive advantages in the precious metals streaming and royalty sector. First, its portfolio is highly diversified—over 230 assets, with 30+ currently producing—reducing dependence on any single mine or operator. No asset exceeds 26% of net asset value, and 90% of revenue is sourced from mining-friendly jurisdictions in Australia and the Americas, mitigating geopolitical risk.

TFPM’s business model is asset-light, with minimal exposure to operating and capital costs. This enables industry-leading margins: trailing twelve-month operating margin is 57%, and net margin is 59%, both above most direct peers. For comparison, Franco-Nevada and Wheaton Precious Metals report similar gross margins, but TFPM’s recent revenue growth (32% in 2024) and cash flow per share growth outpaced the group.

The company’s disciplined capital allocation is a further edge. Since inception, TFPM has deployed $2.8 billion, with a track record of accretive acquisitions—recently adding the Arthur royalty (1% NSR on a 16Moz Nevada gold project) and the Arcata silver stream. Management and board own over $100 million in shares, aligning interests with shareholders.

TFPM’s main threats are its smaller scale versus Franco-Nevada and Wheaton, and lack of operational control over underlying mines. However, its focus on high-quality jurisdictions, robust balance sheet (net cash, $1B liquidity), and consistent dividend growth position it as a credible, lower-risk compounder in the sector.