Exhibit 4.2


 





 


Consolidated
Financial Statements of

Triple Flag Precious Metals Corp.


 


For
the years ended December 31, 2021 and 2020


 


(Expressed
in United States Dollars)


 




     


     


    



 


 


Independent
auditor’s report


 


To
the Shareholders of Triple Flag Precious Metals Corp.


 




Our
opinion


 


In
our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position
of Triple Flag Precious Metals Corp. and its subsidiaries (together, the Company) as at December 31, 2021 and 2020, and its financial
performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued
by the International Accounting Standards Board (IFRS).


 


What
we have audited 


 


The
Company’s consolidated financial statements comprise:


 


		•	the
consolidated balance sheets as at December 31, 2021 and 2020;



 


		•	the
consolidated statements of income for the years then ended;



 


		•	the
consolidated statements of comprehensive income for the years then ended;



 


		•	the
consolidated statements of cash flows for the years then ended;



 


		•	the
consolidated statements of changes in equity for the years then ended; and



 


		•	the
notes to the consolidated financial statements, which include significant accounting policies and other explanatory information.



 


Basis
for opinion


 


We
conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards
are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section
of our report.


 


We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


 


Independence 


 


We
are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated
financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.


 


PricewaterhouseCoopers
LLP 


PwC
Tower, 18 York Street, Suite 2600, Toronto, Ontario, Canada M5J 0B2


T: +1 416 863 1133, F: +1 416 365 8215


 


“PwC”
refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.


 



    1


     


    

 


 





Key
audit matters


 


Key
audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the consolidated
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.


 





	Key
    audit matter	 	How
    our audit addressed the key audit matter
	 	 	 
	Assessment
                                    of indicators of impairment and impairment reversal of mineral interests

         

        Refer
        to note 3 - Significant accounting policies, note 4 - Critical judgements and estimation uncertainties, and note 12 -
        Impairment and impairment reversal to the consolidated financial statements.

         

        The
        carrying value of mineral interests amounted to $1,225 million as at December 31, 2021. Management assesses at the end
        of each reporting period whether there are any indicators that the carrying value of mineral interests may not be recoverable
        or that an impairment loss previously recognized should be reversed or partially reversed (together, impairment indicators).
        If impairment indicators exist, management shall estimate the recoverable amount of the asset. Management applies significant
        judgment in assessing whether impairment indicators exist. These include amongst others significant adverse changes to:
        (i) cost considerations, (ii) current and forecasted commodity prices, (iii) industry or economic trends, and (iv) relevant
        operators’ information.

         

        We
considered this a key audit matter due to (i) the significance of the carrying values of the mineral interests, (ii) the significant
judgment made by management in assessing whether impairment indicators exist, and (iii) a high degree of auditor judgment, subjectivity
and effort in performing procedures to evaluate audit evidence related to management’s assessment of impairment indicators. 
	 	Our
        approach to addressing the matter included the following procedures, among others:

         

        •   Evaluated the reasonableness of management’s assessment of impairment indicators related to significant adverse
        changes to: (i) cost considerations, (ii) current and forecasted commodity prices, (iii) industry or economic trends,
        and (iv) relevant operators’ information, by considering:

         

        –
            current and past performance of mineral interests when compared to expected performance;

         

        –
            external         market and industry data;

         

        –
            operators         of mineral interests’ publicly disclosed relevant information; and 

         

        –
            evidence         obtained in other areas of the audit.

         

	 	 	 








    2


     


    





 


Other
information 


 


Management
is responsible for the other information. The other information comprises the Management’s Discussion and Analysis.


 


Our
opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.


 


In
connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified
above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements
or our knowledge obtained in the audit, or otherwise appears to be materially misstated.


 


If,
based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.


 







Responsibilities
of management and those charged with governance for the consolidated financial statements


 


Management
is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS, and
for such internal control as management determines is necessary to enable the preparation of consolidated financial statements
that are free from material misstatement, whether due to fraud or error.


 


In
preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.


 


Those
charged with governance are responsible for overseeing the Company’s financial reporting process.


 


Auditor’s
responsibilities for the audit of the consolidated financial statements


 


Our
objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing
standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.


 



    3


     


    




 


As
part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:


 


		•	Identify
                                         and assess the risks of material misstatement of the consolidated financial statements,
                                         whether due to fraud or error, design and perform audit procedures responsive to those
                                         risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
                                         for our opinion. The risk of not detecting a material misstatement resulting from fraud
                                         is higher than for one resulting from error, as fraud may involve collusion, forgery,
                                         intentional omissions, misrepresentations, or the override of internal control.



 


		•	Obtain
                                         an understanding of internal control relevant to the audit in order to design audit procedures
                                         that are appropriate in the circumstances, but not for the purpose of expressing an opinion
                                         on the effectiveness of the Company’s internal control.



 


		•	Evaluate
                                         the appropriateness of accounting policies used and the reasonableness of accounting
                                         estimates and related disclosures made by management.



 


		•	Conclude
                                         on the appropriateness of management’s use of the going concern basis of accounting
                                         and, based on the audit evidence obtained, whether a material uncertainty exists related
                                         to events or conditions that may cast significant doubt on the Company’s ability
                                         to continue as a going concern. If we conclude that a material uncertainty exists, we
                                         are required to draw attention in our auditor’s report to the related disclosures
                                         in the consolidated financial statements or, if such disclosures are inadequate, to modify
                                         our opinion. Our conclusions are based on the audit evidence obtained up to the date
                                         of our auditor’s report. However, future events or conditions may cause the Company
                                         to cease to continue as a going concern.



 


		•	Evaluate
                                         the overall presentation, structure and content of the consolidated financial statements,
                                         including the disclosures, and whether the consolidated financial statements represent
                                         the underlying transactions and events in a manner that achieves fair presentation.



 


		•	Obtain
                                         sufficient appropriate audit evidence regarding the financial information of the entities
                                         or business activities within the Company to express an opinion on the consolidated financial
                                         statements. We are responsible for the direction, supervision and performance of the
                                         group audit. We remain solely responsible for our audit opinion.



 


We
communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.


 


We
also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.


 





    4


     


    




 


From
the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public interest benefits of such communication.


 


The
engagement partner on the audit resulting in this independent auditor’s report is Marelize Barber.


 


/s/PricewaterhouseCoopers
LLP


 


Chartered
Professional Accountants, Licensed Public Accountants


 


Toronto,
Ontario 


February
22, 2022


 



    5


     


    




Triple
Flag Precious Metals Corp.


Consolidated
Balance Sheets


 











	As
    at December 31 ($US thousands)	 	2021	 	 	2020	 
	ASSETS	 			 	 			 
	Cash
    and cash equivalents (Note 7)	 	$	40,672	 	 	$	20,637	 
	Amounts
    receivable and prepayments (Note 8)	 	 	7,024	 	 	 	9,404	 
	Inventory
    (Note 9)	 	 	1,372	 	 	 	-	 
	Loans
    receivable (Note 10)	 	 	9,688	 	 	 	-	 
	Income
    tax receivable	 	 	-	 	 	 	954	 
	Investments
    (Note 11)	 	 	13,672	 	 	 	27,577	 
	Current
    assets	 	 	72,428	 	 	 	58,572	 
	 	 	 	 	 	 	 	 	 
	Mineral
    interests (Note 12)	 	 	1,225,233	 	 	 	1,228,720	 
	Loans
    receivable (Note 10)	 	 	-	 	 	 	5,814	 
	Other
    assets (Note 14)	 	 	3,151	 	 	 	5,819	 
	Deferred
    income tax (note 23)	 	 	2,597	 	 	 	1,994	 
	Non-current
    assets	 	 	1,230,981	 	 	 	1,242,347	 
	 	 	 	 	 	 	 	 	 
	TOTAL
    ASSETS	 	$	1,303,409	 	 	$	1,300,919	 
	 	 	 	 	 	 	 	 	 
	LIABILITIES
    AND EQUITY	 	 	 	 	 	 	 	 
	Liabilities	 			 	 	 	 	 
	Amounts
    payable and other liabilities (Note 15)	 	$	4,730	 	 	$	3,329	 
	Lease
    obligation - current (Note 16)	 	 	270	 	 	 	252	 
	Income
    tax payable	 	 	334	 	 	 	538	 
	Current
    liabilities	 	 	5,334	 	 	 	4,119	 
	 	 	 	 	 	 	 	 	 
	Long-term
    debt (Note 17)	 	 	-	 	 	 	275,000	 
	Lease
    obligation - non current (Note 16)	 	 	857	 	 	 	1,126	 
	Deferred
    income tax (Note 23)	 	 	2,434	 	 	 	1,400	 
	Derivative
    liability	 	 	-	 	 	 	331	 
	Other
    non-current liabilities	 	 	162	 	 	 	-	 
	Non-current
    liabilities	 	 	3,453	 	 	 	277,857	 
	 	 	 	 	 	 	 	 	 
	Shareholders’
    equity	 	 		 	 	 	 	 
	Share
    capital (Note 24)	 	 	1,253,013	 	 	 	1,009,151	 
	Retained
    earnings	 	 	40,298	 	 	 	10,035	 
	Accumulated
    other comprehensive loss	 	 	-	 	 	 	(243	)
	Other	 	 	1,311	 	 	 	-	 
	 	 	 	1,294,622	 	 	 	1,018,943	 
	 	 	 	 	 	 	 	 	 
	TOTAL
    LIABILITIES AND SHAREHOLDERS’ EQUITY	 	$	1,303,409	 	 	$	1,300,919	 





 


The
accompanying notes form an integral part of these consolidated financial statements.


 


Approved
by the Board of Directors


 


	(s) Shaun Usmar	 	(s) Susan Allen




 


	Shaun Usmar, Director	Susan Allen, Director



 







    6


     


    

Triple
Flag Precious Metals Corp.


Consolidated
Statements of Income


 





	For the
    years ended December 31 ($US thousands, except per share information)	 	2021	 	 	2020	 
	Revenue
    (Note 28)	 	$	150,421	 	 	$	112,588	 
	 	 	 	 	 	 	 	 	 
	Cost of sales	 	 		 	 	 		 
	Cost of sales excluding
    depletion	 	 	13,496	 	 	 	9,259	 
	Depletion	 	 	53,672	 	 	 	53,231	 
	Gross
    profit	 	 	83,253	 	 	 	50,098	 
	 	 	 	 	 	 	 	 	 
	General administration
    costs (Note 18)	 	 	12,213	 	 	 	7,394	 
	IPO readiness costs	 	 	670	 	 	 	-	 
	Sustainability initiatives	 	 	855	 	 	 	58	 
	Business development
    costs	 	 	771	 	 	 	119	 
	Impairment charges
    (Note 13)	 	 	-	 	 	 	7,864	 
	Operating
    income	 	 	68,744	 	 	 	34,663	 
	 	 	 	 	 	 	 	 	 
	Gain on disposition
    of mineral interests (Note 12)	 	 	-	 	 	 	30,926	 
	(Decrease) Increase
    in fair value of investments (Note 11)	 	 	(10,786	)	 	 	6,447	 
	Finance costs, net
    (Note 19)	 	 	(5,673	)	 	 	(9,860	)
	Loss on derivatives
    (Note 26)	 	 	(297	)	 	 	-	 
	Foreign currency translation
    loss	 	 	(25	)	 	 	(16	)
	Other
    (expenses) income	 	 	(16,781	)	 	 	27,497	 
	 	 	 	 	 	 	 	 	 
	Earnings before income
    taxes	 	 	51,963	 	 	 	62,160	 
	Income tax expense
    (Note 23)	 	 	(6,436	)	 	 	(6,595	)
	Net
    earnings	 	$	45,527	 	 	$	55,565	 
	 	 	 	 	 	 	 	 	 
	Earnings
    per share - basic and diluted (Note 31)	 	$	0.31	 	 	$	0.48	 





  


The
accompanying notes form an integral part of these consolidated financial statements.    


 




    7


     


    

Triple
Flag Precious Metals Corp. 


Consolidated
Statements of Comprehensive Income


 


	For the years ended December 31 ($US thousands)	 	2021	 	 	2020	 
	Net earnings	 	$	45,527	 	 	$	55,565	 
	Other comprehensive income (loss)	 	 	 	 	 	 	 	 
	Items that may be reclassified subsequently to profit or loss:	 	 	 	 	 	 	 	 
	Unrealized gain (loss) on derivative designated as cash flow hedge	 	 	34	 	 	 	(331	)
	Unrealized tax (expense) recovery on derivative designated as cash flow hedge	 	 	(9	)	 	 	88	 
	Realized loss on derivative designated as cash flow hedge	 	 	297	 	 	 	-	 
	Realized tax (recovery) on derivative designated as cash flow hedge	 	 	(79	)	 	 	-	 
	Total other comprehensive income (loss)	 	 	243	 	 	 	(243	)
	Total comprehensive income	 	$	45,770	 	 	$	55,322	 



 


The
accompanying notes form an integral part of these consolidated financial statements. 


 




    8


     


    

Triple
Flag Precious Metals Corp. 


Consolidated
Statements of Cash Flows


 





	For the years ended December 31 ($US thousands)	 	2021	 	 	2020	 
	Operating activities	 	 	 	 	 	 	 	 
	Net earnings	 	$	45,527	 	 	$	55,565	 
	Adjustments for the following items:	 	 	 	 	 	 	 	 
	Depletion of mineral interests	 	 	53,672	 	 	 	53,231	 
	Amortization (Note 18)	 	 	399	 	 	 	399	 
	Impairment charges (Note 13)	 	 	-	 	 	 	7,864	 
	Gain on disposition of mineral interests (Note 12)	 	 	-	 	 	 	(30,926	)
	Decrease (increase) in fair value of investments (Note 11)	 	 	10,786	 	 	 	(6,447	)
	Stock option expense	 	 	1,311	 	 	 	-	 
	Income tax expense	 	 	6,436	 	 	 	6,595	 
	Finance and other costs	 	 	6,412	 	 	 	10,390	 
	Operating cash flow before working capital and taxes	 	 	124,543	 	 	 	96,671	 
	Income taxes paid	 	 	(5,303	)	 	 	(7,340	)
	Change in working capital (Note 30)	 	 	775	 	 	 	(4,954	)
	Operating cash flow	 	 	120,015	 	 	 	84,377	 
	 	 	 	 	 	 	 	 	 
	Investing activities	 	 	 	 	 	 	 	 
	Acquisition of mineral interests	 	 	(51,263	)	 	 	(729,682	)
	Proceeds on disposition of mineral interests (Note 12)	 	 	-	 	 	 	78,028	 
	Proceeds on sale of investments, net (Note 11)	 	 	3,118	 	 	 	-	 
	Net cash used in investing activities	 	 	(48,145	)	 	 	(651,654	)
	 	 	 	 	 	 	 	 	 
	Financing activities	 	 	 	 	 	 	 	 
	Proceeds from long-term debt (Note 17)	 	 	44,000	 	 	 	328,000	 
	Repayments of long-term debt (Note 17)	 	 	(319,000	)	 	 	(110,000	)
	Proceeds from share issuance (Note 24)	 	 	263,761	 	 	 	370,000	 
	Share issue costs (Note 24)	 	 	(18,646	)	 	 	-	 
	Normal course issuer bid purchase of common shares (Note 24)	 	 	(1,679	)	 	 	-	 
	Dividends paid (Note 24)	 	 	(14,838	)	 	 	-	 
	Repayments of lease obligation (Note 16)	 	 	(258	)	 	 	(218	)
	Payments of interest on lease obligation (Note 16)	 	 	(81	)	 	 	(89	)
	Payments of interest on long-term debt	 	 	(5,094	)	 	 	(9,721	)
	Debt issue costs and other	 	 	-	 	 	 	(844	)
	Net cash (used in) from financing activities	 	 	(51,835	)	 	 	577,128	 
	Effect of exchange rate changes on cash and cash equivalents	 	 	-	 	 	 	18	 
	Increase in cash and cash equivalents during the year	 	 	20,035	 	 	 	9,869	 
	Cash and cash equivalents at beginning of the year	 	 	20,637	 	 	 	10,768	 
	Cash and cash equivalents at end of the year	 	$	40,672	 	 	$	20,637	 





 


The
accompanying notes form an integral part of these consolidated financial statements. 


 




    9


     


    

Triple
Flag Precious Metals Corp. 


Consolidated
Statements of Changes in Equity


 


	($US
    thousands, except share information)	 	Common
    Shares	 	 	Share
    Capital	 	 	Retained
    Earnings (Deficit)	 	 	Accumulated
    Other Comprehensive Income (Loss)	 	 	Other	 	 	Total	 
	At
    January 1, 2020	 	 	97,915,712	 	 	$	639,151	 	 	$	(45,530	)	 	$	-	 	 	$	-	 	 	$	593,621	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuance
    of shares (Note 24)	 	 	37,987,680	 	 	 	370,000	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	370,000	 
	Net
    earnings	 	 	-	 	 	 	-	 	 	 	55,565	 	 	 	-	 	 	 	-	 	 	 	55,565	 
	Other
    comprehensive loss	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(243	)	 	 	-	 	 	 	(243	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance
    at December 31, 2020	 	 	135,903,392	 	 	$	1,009,151	 	 	$	10,035	 	 	$	(243	)	 	$	-	 	 	$	1,018,943	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	At
    January 1, 2021	 	 	135,903,392	 	 	$	1,009,151	 	 	$	10,035	 	 	$	(243	)	 	$	-	 	 	$	1,018,943	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Issuance
    of shares, net of issuance costs (Note 24)	 	 	20,289,323	 	 	 	245,115	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	245,115	 
	Normal
    course issuer bid purchase of common shares	 	 	(155,978	)	 	 	(1,253	)	 	 	(426	)	 	 	-	 	 	 	-	 	 	 	(1,679	)
	Stock-based
    compensation	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,311	 	 	 	1,311	 
	Net
    earnings	 	 	-	 	 	 	-	 	 	 	45,527	 	 	 	-	 	 	 	-	 	 	 	45,527	 
	Dividends
    paid	 	 	-	 	 	 	-	 	 	 	(14,838	)	 	 	-	 	 	 	-	 	 	 	(14,838	)
	Other
    comprehensive income	 	 	-	 	 	 	-	 	 	 	-	 	 	 	243	 	 	 	-	 	 	 	243	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance
    at December 31, 2021	 	 	156,036,737	 	 	$	1,253,013	 	 	$	40,298	 	 	$	-	 	 	$	1,311	 	 	$	1,294,622	 



 


The
accompanying notes form an integral part of these consolidated financial statements. 


 




    10


     


    


Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 






  


1.
Nature of operations


 


Triple
Flag Precious Metals Corp. (“TF Precious Metals”) was incorporated on October 10, 2019 under the Canada
Business Corporations Act. TF Precious Metals is domiciled in Canada and the address of its registered office is 161 Bay Street,
Suite 4535, Toronto, Ontario, M5J 2S1, Canada.


 


The
consolidated financial statements of TF Precious Metals for the years ended December 31, 2021 and 2020 comprises TF Precious Metals
and its wholly owned subsidiaries (together the “Company” or “Triple Flag”).


 


The
Company is a gold-focused streaming and royalty company. The revenues are generated from a diversified portfolio of properties
in Australia, Canada, Colombia, Mongolia, Peru, South Africa and the United States.


 


2.
Basis of presentation


 


These
consolidated financial statements of TF Precious Metals and its subsidiaries have been prepared in accordance with International
Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”) under the
historical cost convention, as modified by certain financial assets. Certain comparative figures have been reclassified to conform
to current year presentation. These consolidated financial statements were authorized for issuance by the Board of Directors of
TF Precious Metals on February 22, 2022.


 


3.
Summary of significant accounting policies


 


The
significant accounting policies summarized below have been applied consistently to all periods presented in these consolidated
financial statements.


 


	a.	Consolidation
                                         principles



 


The
consolidated financial statements incorporate the financial statements of TF Precious Metals and its wholly owned subsidiaries:
Triple Flag International Ltd. (“TF International”), TF R&S Canada Ltd., TF Australia Holdings Ltd. and
Triple Flag USA Royalties Ltd.


 


Subsidiaries
are fully consolidated from the date on which the Company acquires control. Control is defined as an investor’s power over
an investee with exposure, or rights, to variable returns from the investee and the ability to affect the investor’s returns
through its power over the investee. Subsidiaries are included in the consolidated financial results of the Company from the effective
date of acquisition up to the effective date of disposition or loss of control. The financial statements of the subsidiaries are
prepared for the same reporting period as the parent Company, using consistent accounting policies. Balances, transactions, revenues
and expenses between the parent and its subsidiaries are eliminated on consolidation.


 


The
principal subsidiaries of the Company and their geographic locations at December 31, 2021 were as follows:


 


	Entity	 	Location	 	Ownership	 
	Triple Flag International Ltd.	 	Bermuda	 	100	%
	TF R&S Canada Ltd.	 	Canada	 	100	%
	TF Australia Holdings Ltd.	 	Canada	 	100	%
	Triple Flag USA Royalties Ltd.	 	United States	 	100	%



 




    11


     


    





Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 






 





	b.	Foreign
                                         currency



 


The
presentation and functional currency of the Company is the United States dollar (“USD”). The functional currency
of each of the subsidiaries is the currency of the primary economic environment in which the entity operates. Due to the following
factors, the functional currency of each entity is USD:



 


		•	the
                                         revenues are based on commodities that are actively traded and denominated in USD;






		•	the
                                         cash component of cost of sales is linked to commodity prices that are denominated in
                                         USD;






		•	the
                                         capital management strategy is aimed at keeping most of the Company’s cash balances
                                         in USD;






		•	the
                                         capital is raised in USD; and






		•	the
                                         investments are made predominantly in USD.



 


Foreign
currency transactions are translated into the entity’s functional currency using the exchange rate prevailing on the dates
of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated
statements of income and comprehensive income. Non-monetary assets and liabilities, arising from transactions denominated in foreign
currencies, are translated at the historical exchange rates prevailing at each transaction date.


 


	c.	Cash
                                         and cash equivalents



 


Cash
and cash equivalents include cash on hand and short-term deposits with original maturities of 90 days or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.


 


	d.	Inventory



 


Precious
metals delivered under a precious metal purchase and sale agreement are recorded as inventory on the date of delivery. The amount
recognized as inventory comprises the ongoing cash payments made by the Company pursuant to the agreement and the capitalized
depletion associated with the respective metal delivered. Inventory is valued at the lower of cost and net realizable value and
cost is determined on the first-in first-out basis.


 


	e.	Mineral
                                         interests



 


General


 


Mineral
interests represent stream agreements for which settlement is called for in the delivery of a percentage of production of precious
metal from a mine and royalty agreements. The major categories of the Company’s interests are producing mines and development
or exploration projects. Producing assets are those that generate revenue from operations for the Company or are expected to generate
revenue within the next year. Development stage projects are those that are not yet producing, but where, in management’s
view, the technical feasibility and commercial viability of extracting Mineral Resources are identifiable. Exploration stage assets
represent interests on projects where technical feasibility and commercial viability of extracting Mineral Resources are not demonstrable.
Mineral interests for producing and development stage assets are recorded at cost and capitalized as tangible assets with finite
lives in accordance with IAS 16, Property, Plant and Equipment. They are subsequently measured at cost less accumulated
depletion and accumulated impairment charges. Exploration stage projects are recorded and capitalized in accordance with IFRS
6 Exploration for and Evaluation of Mineral Resources (“IFRS 6”).


 


The
cost of the mineral interest comprises the purchase price and any costs directly attributable to acquiring the interest. In the
event that an acquisition contains more than one commodity, the fair value of an allocation to each commodity is based on the
discounted expected and modelled relative cash flows from each commodity in the stream arrangement over the life of the streams.


 


The
acquisition costs of recoverable resources, which comprise Mineral Reserves and Mineral Resources whereby Mineral Resources are
expected to be converted to Mineral Reserves based on judgment and historical conversion rates achieved by the mine operator (“converted
resources”), are recorded as a depletable asset on the acquisition date.


 




    12


     


    





Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 






  


The
Company uses the following criteria in its assessment of technical feasibility and commercial viability: 


 


		•	Geology
                                         and Mineral Resources: assessment of the location, quantity, grade or quality, continuity
                                         and other geological characteristics of a mineral deposit, the basis of estimates and
                                         interpretations from specific geological evidence and knowledge, including sampling.






		•	Mineral
                                         Reserves: consideration of all relevant modifying factors pertinent to Mineral Resources
                                         to determine Mineral Reserves; these include, but are not restricted to, mining, processing,
                                         metallurgical, infrastructure, economic, marketing, legal, environmental, social and
                                         governmental factors.






		•	Technical
                                         studies: the status and extent of technical studies, specifically, feasibility, preliminary
                                         feasibility and preliminary economic assessments, within the context of the foregoing.



 


On
acquisition of a mineral interest, an allocation of its fair value is attributed to the exploration potential of the mineral interest.
The value associated with exploration potential is the value beyond proven and probable reserves and converted resources at acquisition
and is classified as non-depletable until such time as it is transferred to the depletable category. Updated Mineral Resources
and Mineral Reserves information obtained from the operators of the properties is used to assess the amount to be converted from
non-depletable interest to depletable interest. If the cost of a mineral interest includes any contingent consideration, the contingent
consideration is measured at fair value on the date of the acquisition and included in the cost of the mineral interest. Subsequent
changes in fair value of the contingent consideration are recorded against the cost of the mineral interest acquired.


 


Depletion


 


Mineral
interests in producing mines are depleted based on deliveries of precious metal under the stream agreement or payment of royalties
under royalty agreements over the Company’s attributable share of total estimated recoverable resources to be produced at
the mine. The life of the mineral properties is estimated using life of mine (“LOM”) models specifically
associated with the mineral properties which include Mineral Reserves and Mineral Resources, whereby Mineral Resources are expected
to be converted to Mineral Reserves based on judgment and historical conversion rates achieved by the mine operator. Where LOM
models are not available for a mineral property, the Company uses publicly available information related to the mineral interest
to estimate the life of the property and portion of Mineral Resources that the Company expects to be converted into Mineral Reserves.
Where LOM models and publicly available Mineral Reserves and Mineral Resources statements are not available, depletion is based
on the Company’s best estimate of the volumes to be delivered under the contract. The Company relies on information it is
entitled to under contracts with operators and/or public disclosures for information on Mineral Reserves and Mineral Resources
from the operators of the producing mineral interests. Any changes to depletion rates are accounted for prospectively as a change
in estimate.


 


Depletion
for development and exploration stage projects does not begin until revenue generating activities begin.


 


Impairment


 


Management
assesses at the end of each reporting period whether there are any indicators that the carrying value of mineral interests may
not be recoverable or that an impairment loss previously recognized should be reversed or partially reversed (together, impairment
indicators). If impairment indicators exist, management shall estimate the recoverable amount of the asset. Management applies
significant judgment in assessing whether impairment indicators exist. These include, amongst others, significant adverse changes
to: (i) cost considerations, (ii) current and forecasted commodity prices, (iii) industry or economic trends, and (iv) relevant
operators’ information.


 


The
carrying values of mineral interests are reviewed for impairment when events or changes in circumstances indicate the carrying
value may not be recoverable. Management considers each precious metal purchase and sale agreement or royalty agreement to be
a separate cash generating unit, which is the lowest level for which cash inflows are largely independent of those of other interests
in accordance with IAS 16, Impairment of Assets.


 




    13


     


    





Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 



 


Where
impairment indicators are identified, an asset’s carrying amount is written down to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.


 


The
recoverable amount of the asset is the greater of its fair value less cost of disposal (“FVLCD”)
and value in use (“VIU”). In determining the recoverable amount, the Company focuses on the FVLCD
as this will generally be greater than or equal to the VIU. The best evidence of FVLCD is the value obtained from an active market
or binding sale agreement. Where neither exists, FVLCD is based on the best information available to reflect the amount the Company
could receive for the cash generating unit in an arm’s length transaction. Where appropriate, the Company uses VIU, which
is calculated using the present value of future cash flows expected to be derived from an asset. Impairment charges are included
in the “Impairment charges” line within the consolidated statements of income and comprehensive income.


 


An
impairment charge is reversed if there is an indication that an impairment charge recognized in prior periods may no longer exist
or may have decreased since the impairment charge was recognized. Impairment charges can be reversed only to the extent that the
recoverable amount exceeds the carrying amount that would have been determined had no impairment been recognized previously.


 


Exploration
stage projects are assessed for impairment whenever indicators of impairment exist in accordance with IFRS 6. An impairment loss
is recognized when the asset’s carrying value exceeds its recoverable amount, which is the higher of FVLCD and VIU. When
exploration stage projects are reclassified (to either development stage or producing stage), the project is tested for impairment.
Any resulting impairment charge is recognized in consolidated statements of income and comprehensive income.


 


	f.	Property
                                         and equipment



 


Property
and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that
are directly attributable to the acquisition of an asset. Subsequent costs are included in the asset’s carrying amount or
recognized as a separate asset, as appropriate, only when it is probable that future economic benefit associated with the item
will flow to the Company and the cost can be measured reliably. The carrying amount of a replaced asset is derecognized when replaced.


 


Depreciation
is calculated to amortize the cost of the property and equipment less their residual values over their estimated useful lives
using the straight-line method and following periods by major categories:


 


	Leasehold
    improvements	Lease
    term
	Furniture
    and office equipment	3
    - 5 years
	Right-of-use
    asset	Lease
    term




  


Residual
values, method of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate. Gains and losses
on disposals of property and equipment are determined by comparing the proceeds with the carrying amount of the asset and are
included as part of other gains (losses) in the consolidated statements of income and comprehensive income.


 


	g.	Intangibles



 


Intangibles
comprise the initial software and configuration cost of the Company’s ERP system. Definite lived intangible assets acquired
separately are initially recognized at cost. The cost of assets acquired separately includes directly attributable costs to bring
the asset to its intended use.


 


Subsequent
to initial recognition, the intangible asset is carried at cost less accumulated amortization and accumulated impairment losses.
The amortization of the computer software is recorded on a straight-line basis over the estimated useful life of 5 years.


 




    14


     


    


Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 






  


	h.	Borrowing
                                         costs



 


General
and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying
assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. As of December
31, 2021 and 2020, the Company has not identified any qualifying assets.


 


Other
borrowing costs are expensed in the period in which they are incurred.


 


	i.	Income
                                         taxes



 


Income
tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in the consolidated statements of
income and comprehensive income except to the extent that they relate to a business combination, or items recognized directly
in equity.


 


Current
tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or substantively
enacted at the reporting date.


 


Deferred
tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes.


 


Deferred
tax is not recognized for: 


 


		•	temporary
                                         differences on the initial recognition of assets or liabilities in a transaction that
                                         is not a business combination and that affects neither accounting nor taxable profit
                                         or loss; and






		•	temporary
                                         differences related to investments in subsidiaries, associates and jointly controlled
                                         entities to the extent that the Company is able to control the timing of the reversal
                                         of the temporary differences and it is probable that they will not reverse in the foreseeable
                                         future.



 


Deferred
tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted
or substantively enacted at the reporting date.


 


Deferred
tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and tax assets,
and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend
to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.


 


A
deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it
is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed
at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.


 


	j.	Revenue
                                         recognition



 


Revenue
comprises revenues from the sale of commodities received and revenues directly earned from royalty, stream and other similar interests.
Revenue is measured at the fair value of the consideration received or receivable for the sale of precious metals and/or receipt
of mineral royalties in the ordinary course of the Company’s activities.


 


For
streaming interests, gold, silver and diamonds acquired from the mine operator under stream arrangements are sold by the Company
to external customers through a third-party broker. The Company recognizes revenue from these sales when control over the commodity
transfers to the customer. The Company transfers control over the commodity on the date the commodity is delivered to the customer’s
account, which is the date that title to the commodity and the risks and rewards of ownership transfer to the customer and the
customer is able to direct the use of and obtain substantially all of the benefits from the commodity. The transaction price for
these sales is fixed at the delivery date based on the spot price for the commodity, and payment of the transaction price is generally
due immediately when control has been transferred.


 






    15


     


    





Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 






  


For
royalty interests, the commodities are sold by the mine operator to its customers under contracts that are established for the
mining property on which the royalty interest is held. The Company recognizes revenue from these sales when control over the commodity
transfers from the mine operator to its customer. The transfer of control occurs when the mine operator delivers the commodity
to the customer, and at that point, the risk and rewards of ownership transfers to the customer and the Company has an unconditional
right to payment under the royalty agreement. Revenue from the royalty arrangement is measured at the transaction price agreed
in the royalty arrangement with the operator of each mining property. The transaction price is the percentage of gross revenues
associated with the commodity sold less contractually allowable costs, if any, per the terms of the royalty arrangement. In some
instances, the Company will not have access to sufficient information to make a reasonable estimate of revenue and, accordingly,
revenue recognition is deferred until management can make a reasonable estimate. Differences between estimates and actual amounts
are adjusted and recorded in the period that the actual amounts are known.


 


	k.	Cost
                                         of sales excluding depletion



 


Cost
of sales excluding depletion is recorded at the price paid to the operator under the relevant purchase agreement.


 


	l.	Financial
                                         instruments



 


Initial
recognition and measurement


 


Financial
assets and financial liabilities are recognized on the Company’s consolidated balance sheets when the Company has become
a party to the contractual provisions of the instrument.


 


Financial
instruments are recognized initially at fair value. After initial recognition, non-derivative financial instruments are classified
and measured as described below. Transaction costs associated with financial instruments are amortized over the term of the instrument.


 


Classification
and subsequent measurement


 


Financial
assets


 


On
initial recognition, a financial asset is classified as measured at: amortized cost; fair value through other comprehensive income
(“FVOCI”) — debt investment; and fair value through profit and loss (“FVTPL”).
The classification depends on the Company’s business model for managing the financial assets and the contractual terms of
the cash flows.


 


Financial
assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business
model for managing financial assets.


 


		a)	Debt
                                         instrument



 


A
financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as FVTPL: 


 


		•	the
                                         asset is held within a business model whose objective is to hold assets to collect contractual
                                         cash flows; and






		•	the
                                         contractual terms of the financial asset give rise on specified dates to cash flows that
                                         are solely payments of principal and interest on the principal amount outstanding.



 


Interest
income, foreign currency translation gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition
is recognized in profit or loss.


 




    16


     


    





Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 






 


Financial
assets measured at amortized cost includes cash and cash equivalents, amounts receivable (excluding sales taxes and prepayments)
and notes receivable (included in other assets).


 


Receivables
are amounts due from customers for goods sold or services performed in the ordinary course of business. They are all due for settlement
within 45 days and are therefore classified as current. Amounts receivable are recognized initially at the amount of consideration
that is unconditional, unless they contain significant financing components, in which case they are recognized at fair value.
The Company holds the receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently
at amortized cost using the effective interest method.


 


Financial
assets that are held for collection of contractual cash flows (where the contractual cash flows represent solely payments of principal
and interest) and for selling, are measured at FVOCI. Financial assets that do not meet the criteria for amortized cost or FVOCI
are measured at FVTPL.


 


		b)	Equity
                                         instrument



 


The
Company measures all equity instruments at FVTPL. Changes in the fair value of financial assets at FVTPL are recognized in “Increase
(decrease) in fair value of investments” in the statements of income and comprehensive income. Equity instruments
include equity investment and warrants.


 


Financial
liabilities


 


On
initial recognition, a financial liability is classified as measured at amortized cost or FVTPL. Financial liabilities are not
reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing
financial liabilities.


 


Amounts
payable and other liabilities, lease obligation and long-term debt are accounted for at amortized cost.


 


Impairment


 


The
Company recognizes loss allowances for expected credit losses (“ECLs”) on financial assets measured
at amortized cost.


 


The
Company applies the simplified approach permitted by IFRS 9 — Financial Instruments (“IFRS 9”)
for receivables, which requires lifetime ECLs to be recognized from initial recognition of the receivables. Loss allowances for
financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. In order to measure the
ECLs, receivables have been grouped based on shared credit risk characteristics and the days past due.


 


Receivables
are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery
include, among others, the failure of a debtor to engage in a repayment plan with the group, and a failure to make contractual
payments for a period of greater than 120 days past due. Impairment losses on receivables are presented as net impairment losses
within operating income. Subsequent recoveries of amounts previously written off are credited against the same line item.


 


Derecognition


 


Financial
assets


 


The
Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers
the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership
of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and
rewards of ownership and it does not retain control of the financial asset.


 




    17


     


    





Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 






 


Financial
liabilities


 


The
Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire. The Company also
derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially
different. In this case, a new financial liability based on the modified terms is recognized at fair value. The difference between
the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognized
in profit or loss.


 


	m.	Derivative
                                         instruments and hedge accounting



 


Derivative
instruments are recorded at fair value on the balance sheet, classified based on contractual maturity. Derivative instruments
are classified as hedges of fair value of recognized assets or liabilities or firm commitments (“fair value hedges”),
hedges of highly probable forecasted transactions (“cash flow hedges”) or non-hedge derivatives.
Derivatives designated as either a fair value or cash flow hedge that are expected to be highly effective in achieving offsetting
changes in fair value or cash flows are assessed on an ongoing basis to determine that they actually have been highly effective
throughout the reporting periods for which they were designated. Derivative assets and derivative liabilities are shown separately
in the balance sheet unless there is a legal right to offset and intent to settle on a net basis.


 


Cash
flow hedges


 


Derivatives
designated as a cash flow hedge that are expected to be highly effective in achieving offsetting changes in cash flows are assessed
on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for
which they were designated. The effective portion of changes in the fair value of derivatives that are designated and qualify
as cash flow hedges is recognized in other comprehensive income (“OCI”). The gain or loss relating
to the ineffective portion is recognized in the consolidated statements of income. Amounts accumulated in OCI are transferred
to the consolidated statements of income in the period when the forecasted transaction impacts earnings. When the forecasted transaction
that is hedged results in the recognition of a non-financial asset or a non-financial liability, the gains and losses previously
deferred in equity are transferred from equity and included in the measurement of the initial carrying amount of the asset or
liability. When a derivative designated as a cash flow hedge expires or is sold and the forecasted transaction is still expected
to occur, any cumulative gain or loss relating to the derivative that is recorded in OCI at that time remains in OCI and is recognized
in the consolidated statements of income when the forecasted transaction occurs. When a forecasted transaction is no longer expected
to occur, the cumulative gain or loss that was recorded in OCI is immediately transferred to the consolidated statements of income.


 


	n.	Related
                                         party transactions



 


Parties
are considered related if one party has the ability, directly or indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating decisions. Parties are also considered related if they are subject
to common control. A transaction is considered a related party transaction when there is a transfer of resources or obligations
between related parties.


 


	o.	Earnings
                                         per share



 


Earnings
per share is calculated by dividing net earnings by the weighted average number of common shares outstanding for the period. Diluted
earnings per share reflect the potential dilution that could occur if additional common shares are assumed to be issued that entitle
their holders to obtain common shares in the future. For stock options, the number of additional shares for inclusion in diluted
earnings per share calculations is determined using the treasury stock method. Under this method, stock options, whose exercise
price is less than the average market price of the common shares, are assumed to be exercised and the proceeds are used to repurchase
common shares at the average market price for the period. The incremental number of common shares issued under stock options
and repurchased from proceeds is included in the calculation of diluted earnings per share. The Company had no dilutive instruments
as at December 31, 2021 and 2020. In the event of a share consolidation or share split, the calculation of basic and diluted earnings
per share is adjusted retrospectively for all periods presented.


 






    18


     


    





Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 



  


	p.	Segment
                                         reporting



 


The
Company’s business is organized and reported as a single operating segment, consisting of acquiring and managing precious
metals and other high-quality streams and royalties. The Company’s chief operating decision-maker, the Chief Executive Officer
(“CEO”), makes capital allocation decisions, reviews operating results and assesses performance.


 


	q.	Share-based
                                         payments



 


The
Company offers equity-settled (Stock Option Plan (“SOP”)), cash-settled (Restricted Share Units (“RSU”),
and Deferred Share Units (“DSU”)) awards to certain employees, officers and directors of the Company.


 


Equity-settled
awards are measured at fair value using the Black-Scholes model with market-related inputs as of the date of the grant. The cost
is recorded over the vesting period of the award and recorded in general administration costs with the corresponding entry recorded
in equity. Equity-settled awards are not re-measured subsequent to the initial grant date.


 


The
Company uses the accelerated method (also referred to as ‘graded’ vesting) for attributing stock option expense over
the vesting period. Stock option expense incorporates an expected forfeiture rate which is estimated based on a number of factors,
including historical forfeiture rates and expectations of future forfeiture rates. The Company make adjustments if the actual
forfeiture rate differs from the expected rate.


 


Cash-settled
awards are measured at fair value initially using the market value of the underlying shares at the date of the grant of the award
and are required to be re-measured to fair value at each reporting date until settlement. The cost is then recorded over the vesting
period of the award. This expense, and any changes in the fair value of the award, is recorded in general administration costs.
The cost of cash-settled awards are recorded within liabilities until settled.


 


Stock
option plan


 


Under
the Company’s SOP, certain employees and officers may purchase common shares at an exercise price determined by the Board,
which may not be less than the fair market value of a common share (being the volume weighted average trading price of the common
shares on the Toronto Stock Exchange (“TSX”) on the five trading days immediately prior to the applicable date
on which the stock option is granted). The grant date is the date when the details of the award, including the number of options
granted to the individual and the exercise price, are approved and communicated to the employee. Stock options vest equally over
three years and have a 7 year expiry. The SOP arrangement has graded vesting terms. The cost of the instruments issued under the
SOP is calculated using the Black-Scholes model. The cost is adjusted by the expected forfeiture rate which is estimated based
on historical forfeiture rates and expectations of future forfeiture rates. The Company makes adjustments if the actual forfeiture
rate differs from the expected rate.


 


Restricted
share units


 


Under
the Company’s RSU plan, certain employees and officers are granted RSUs where each RSU has a value equal to one common share.
The RSUs have a 36-month cliff vesting period and are settled in cash 36 months after the grant date. Additional RSUs are credited
to reflect dividends paid on common shares over the vesting period. A liability for RSUs is measured at fair value on the grant
date and is subsequently adjusted for changes in fair value. The liability is recognized on a straight-line basis over the vesting
period, with a corresponding charge to employee costs, as a component of general and administration costs.


 




    19


     


    





Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 






  


Deferred
share units


 


Under
the Company’s DSU plan, Directors must receive a specified portion of their basic annual retainer in the form of DSUs, with
the option to elect to receive all of their annual retainer in the form of DSUs. Each DSU has the same value as one common share
of Triple Flag. DSUs must be retained until the Director leaves the Board. Following an eligible Director ceasing to hold all
positions with the Company, the Director will receive a payment in cash at the fair market value of the common shares represented
by his or her DSUs on the Director’s elected redemption date. Additional DSUs are credited to reflect dividends paid on
common shares. A liability for DSUs is measured at fair value on the grant date and is subsequently adjusted for changes in fair
value. The liability is recognized on a straight-line basis over the vesting period, with a corresponding charge to employee costs,
as a component of general administration costs.


 


	r.	Sustainability
                                         initiatives



 


Sustainability
initiatives represent costs the Company incurs on various Environmental, Social and Governance (“ESG”) activities.
This includes acquiring carbon offsets to counter the Company’s carbon footprint, which consists of greenhouse gas emissions
associated with its direct business activities, as well as its share of emissions associated with the production of attributable
metal to the point of saleable metals by its counterparties. Sustainability initiatives also include funding of bursary programs
for post -secondary students in South Africa and local community programs in Australia, as well as various social initiatives,
including donations. These costs are expensed in the statement of income as they are incurred.


 


4.
Critical accounting estimates and judgments


 


The
preparation of consolidated financial statements in accordance with IFRS requires management to make judgments, estimates and
assumptions that affect the application of the Company’s accounting policies, which are described in Note 3, the reported
amounts of assets and liabilities and disclosure of commitments at the date of the consolidated financial statements, and the
reported amounts of revenues and expenses during the reporting period. The determination of estimates requires the exercise of
judgment based on various assumptions and other factors such as historical experience, current and expected economic conditions.
Actual results could differ from those estimates.


 


Management’s
estimates and underlying assumptions are reviewed on an ongoing basis. Any changes or revisions to estimates and underlying assumptions
are recognized in the period in which the estimates are revised and in any future periods affected.


 


The
key sources of estimation uncertainty and judgments used in the preparation of these consolidated financial statements that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities and earnings within the
next financial year, are discussed below:


 


COVID-19
Pandemic


 


The
coronavirus (“COVID-19”) was characterized as a global pandemic by the World Health Organization
on March 11, 2020, and developed rapidly, with a significant number of cases. Several operating and development projects in the
mining industry were impacted and continue to be impacted due to the COVID-19 pandemic and the duration and full financial impact
of COVID-19 is not known at this time. On October 13, 2021, Steppe Gold announced that continuing high rates of COVID-19 in Mongolia
had caused supply disruptions at the ATO mine. While these delays are considered to be temporary and resulted in an effective
pause to production, mining and stacking on the heap leach phase continued uninterrupted, representing a deferral of production
from the second half of 2021 to 2022.


 




    20


     


    


Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 



 


COVID-19
and efforts to contain it continue to have an effect on commodity prices and capital markets and if the operation or development
of a mining project in which the Company holds a stream or royalty interest and from which it receives or expects to receive significant
revenue is suspended and remains suspended for an extended period of time, it may have a material adverse impact on the Company’s
profitability, results of operations, and financial condition. As at December 31, 2021, no other mines or development projects
where the Company holds streams or royalties had suspended operations. We continue to monitor the impact of the COVID-19 pandemic
and the emergence of new strains of the virus.


 


Triple
Flag delivered $120,015 in operating cash flow for the year ended December 31, 2021. At December 31, 2021, Triple Flag had $40,672
in cash, and $600,000 available for drawing under the Credit Facility (including the accordion), providing the Company with sufficient
liquidity to manage through this period of uncertainty.


 


Management
exercised significant judgment in determining the impact of COVID-19 on the Company’s consolidated financial statements,
including with respect to financial risks, liquidity, the assessment of going concern, life of mine estimates, impairment triggers
and carrying values of the Company’s mineral interests and amounts receivable (largely, royalties receivable). Management
concluded that there was no material impact from COVID-19 on its financial results at this time.


 


Mineral
Reserves, Mineral Resource estimates and depletion


 


Mineral
interests represent agreements for which settlement is called for in the payment of royalties or the multi-year delivery with
reference to a percentage of production from a mine. Mineral interests comprise a large component of the Company’s assets
and, as such, any change in the Mineral Resources and Mineral Reserves estimates of the properties to which the interests relate
may have a significant effect on the Company’s consolidated financial statements. The estimation of Mineral Resources and
Mineral Reserves is applied in estimating future deliveries under the agreement and determines rates of depletion and recoverability
of the carrying value of the mineral interests.


 


In
assessing the Company’s estimates of Mineral Resources and Mineral Reserves for a specific property, the Company assesses
public disclosures of Mineral Resources and Mineral Reserves released by the operators and, if available, the associated mine
plan to estimate total expected deliveries under the agreement.


 


The
estimation of recoverable Mineral Resources and Mineral Reserves in respect of each agreement is generally based upon factors
such as: 


 


		•	estimates
                                         of mine operating costs;






		•	foreign
                                         exchange rates and commodity prices;






		•	terms
                                         for offtake agreements;






		•	future
                                         development costs; and






		•	geological
                                         interpretation of drill results and judgments made in estimating the size and grade of
                                         the ore body.



 


The
Company estimates exploration potential based on:


 





		•	the
                                         size of the land package applicable to the agreement;






		•	the
                                         cost and intensity of exploration programs proposed by the mine operator;






		•	geological
                                         structures; and






		•	ore
                                         body continuity and assessment of geotechnical limits.



 


These
assumptions are, by their nature, subject to interpretation and uncertainty.


 


The
estimates of Mineral Resources and Mineral Reserves may change based on additional knowledge gained subsequent to the initial
assessment. Changes in the estimates of Mineral Resources and Mineral Reserves may materially impact the recorded amounts of depletion
and the assessed recoverability of the carrying value of royalty and stream interests.


 





    21


     


    


Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 



 


Impairment


 


The
Company has assessed whether there are any impairment indicators (or reversal of impairment) for the Company’s mineral interests
as at December 31, 2021 and concluded that there are no indicators of impairment or reversal of impairment.


 


Income
taxes


 


The
interpretation and application of existing tax laws, regulations and rules in Australia, Bermuda, Canada, Colombia, Mongolia,
Peru, South Africa, the United Kingdom and the United States, or any of the other potential countries in which mineral interests
are located or where commodities are sold, requires judgment. The likelihood that tax positions taken will be sustained upon examination
by applicable tax authorities is based on facts and circumstances of the relevant tax position considering all available evidence.
Differing interpretation of these laws, regulations or rules could result in an increase in the Company’s taxes, governmental
charges, duties or impositions.


 


Business
combinations


 


The
assessment of whether an acquisition meets the definition of a business or is considered the acquisition of an asset is an area
of key judgment. If deemed to be a business combination, applying the acquisition method to business combinations requires each
identifiable asset and liability to be measured at its acquisition date fair value. The excess, if any, of the fair value of consideration
over the fair value of the net identifiable assets acquired is recognized as goodwill. The determination of the acquisition date
fair values often requires management to make assumptions and estimates about future events. The assumptions and estimates with
respect to determining the fair value of assets acquired and liabilities assumed, that of mineral interests and other properties
in particular, generally require a high degree of judgment and include estimates of Mineral Resources and Mineral Reserves acquired,
future metal prices, discount rates and reserve/resource conversion. Changes in the judgments made or in any of the assumptions
or estimates used in determining the fair value of acquired assets and liabilities could impact the amounts assigned to assets
and liabilities.


 


5.
Adoption of accounting policies


 


New
accounting standards effective in 2021


 


The
Company adopted the following accounting standards and amendments to accounting standards, effective January 1, 2021:


 


Interbank
Offered Rates (“IBOR”) Reform and its effects on Financial Reporting


 


In
August 2020, the IASB issued Interest Rate Benchmark Reform – Phase 2 (“Phase 2”), which amends IFRS
9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments:
Disclosures. On January 1, 2021, the Company adopted the amendments to hedging relationships and financial instruments retrospectively.
Comparative amounts have not been restated, and there was no impact on the accumulated reserves amounts in accumulated other comprehensive
income (“AOCI”) on adoption.


 


The
Phase 1 amendments, disclosed in the financial statements for the year ended December 31, 2020, provided temporary relief from
applying specific hedge accounting requirements to hedging relationships directly affected by IBOR reform. The reliefs had the
effect that IBOR reform should not generally cause hedge accounting to terminate prior to contracts being amended. However, hedge
ineffectiveness, if any, continued to be recorded in the income statement. Furthermore, the amendments set out triggers for when
the reliefs would end, which included the uncertainty arising from interest rate benchmark reform no longer being present.


 





    22


     


    


Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 






 


The
Phase 2 amendments address issues arising during interest rate benchmark reform, including specifying when the Phase 1 amendments
will cease to apply, when hedge designations and documentation should be updated, and when hedges of the alternative benchmark
rate as the hedged risk are permitted.


 


At
January 1, 2021, the Company adopted the following hedge accounting reliefs provided by Phase 2 of the amendments:


 


Hedge
accounting 


When
the Phase 1 amendments cease to apply, the Company will amend its hedge designation to reflect changes which are required by IBOR
reform, but only to make one or more of these changes: 


 


		•	designating
                                         an alternative benchmark rate as a hedged risk;






		•	amending
                                         the description of the hedged item, including the description of the designated portion
                                         of the cash flows being hedged; or






		•	amending
                                         the description of the hedging instrument.



 


These
amendments to the hedge documentation did not require the Company to discontinue its hedge relationships. The Company has not
made any amendments to its hedge documentation in the reporting period relating to IBOR reform.


 


The
Company had previously applied hedge accounting on its pay-fixed receive-float interest rate swap to hedge the LIBOR rate on $150,000
of its Credit Facility, which was terminated on May 28, 2021. Refer to Note 26.


 


Long-term
debt 


The
Company currently has an undrawn Credit Facility that is carried at amortized cost and its interest charges can vary with the
LIBOR rate if the Company elects to do so. When the decision is made to replace LIBOR in the Credit Facility with an alternative
benchmark rate, the Company will assess the impact on its financial statements, including relevant disclosures.


 


As
at January 1, 2021, the Company has applied the practical expedients offered under Phase 2 of the amendments to its $275,000 of
long-term debt measured at amortized cost. Phase 2 of the amendments require that, for financial instruments measured using amortized
cost measurement, changes to the basis for determining the contractual cash flows required by interest rate benchmark reform are
reflected by adjusting their effective interest rate and no immediate gain or loss is recognized.


 


New
accounting standards issued but not yet effective


 


Certain
new accounting standards and interpretations have been published that are not mandatory for the current period and have not been
early adopted. These standards are not expected to have a material impact on the Company’s current or future reporting periods.


 


6.
Key developments


 


	a.	Gunnison
                                         Stream Amendment



 


On
December 22, 2021, the Company and Excelsior Mining Corp., including its subsidiaries (“Excelsior”), agreed
to an amendment of the Stream Agreement between the Company and Excelsior, thereby helping facilitate certain transactions. Pursuant
to the amendment, the Company and Excelsior agreed to remove Excelsior’s buydown option and concurrently agreed to re-price
Triple Flag’s 3.5 million common share purchase warrants to C$0.54 per common share (from the prior exercise price of C$1.50
per common share). This amendment was reflected in our results for the year ended December 31, 2021, and did not have a material
impact on the Company’s financial statements.


 





    23


     


    


Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 



 


	b.	Acquisition
                                         of Chilean Royalty Portfolio



 


On
December 21, 2021, the Company entered into an agreement with Azufres Atacama SCM to acquire 2% NSR royalties on each of the Aster
2, Aster 3 and Helada properties that are proximal to Gold Fields Limited’s (“Gold Fields”) Salares Norte
project in Chile for $4,900. These properties cover prospective exploration ground that Gold Fields has been exploring. The Salares
Norte project is currently under construction with anticipated first production in 2023. The royalties include buydown provisions
that would reduce the amount of each NSR royalty from 2% to 1%. The amount to be received by the Company if the buydown provisions
are exercised would be $2,000 for the Aster 2 royalty and $4,000 for each of the Aster 3 and Helada royalties. The acquisition
of the royalties has been recorded as mineral interests.


 


	c.	Automatic
                                         Share Purchase Plan



 


In
December 2021, in connection with the NCIB, the Company entered into an automatic share purchase plan (“ASPP”)
with the designated broker responsible for the normal course issuer bid (“NCIB”) program. The ASPP is intended
to allow for the purchase of its common shares under the NCIB at times when the Company would ordinarily not be permitted to purchase
its common shares due to regulatory restrictions and customary self-imposed blackout periods. Pursuant to the ASPP, prior to entering
into a blackout period, the Company may instruct the designated broker to make purchases under the NCIB in accordance with the
terms of the ASPP. Such purchases will be made by the designated broker in its sole discretion based on parameters established
by us prior to the blackout period in accordance with the rules of the TSX, applicable securities laws and the terms of the ASPP.
The ASPP was implemented effective as of January 1, 2022.


 


	d.	Normal
                                         Course Issuer Bid



 


In
October 2021, the Company established an NCIB program. Under the program, the Company may acquire up to 2,000,000 of its common
shares from time to time in accordance with the NCIB procedures of the TSX. Repurchases under the NCIB program are authorized
until October 13, 2022. Daily purchases will be limited to 8,218 common shares, representing 25% of the average daily trading
volume of the common shares on the TSX for the period from May 20, 2021 to October 5, 2021, being 32,872 common shares, except
where purchases are made in accordance with the “block purchase exemption” of the TSX rules. All common shares that
are repurchased by the Company under the NCIB program will be cancelled. As at December 31, 2021, the Company had purchased 155,978
of its common shares under the NCIB, which have been cancelled.


 


	e.	Dividend
                                         Reinvestment Plan



 


In
October 2021, Triple Flag announced that it had implemented a Dividend Reinvestment Plan (the “DRIP”). Participation
in the DRIP is optional and will not affect shareholders’ cash dividends, unless they elect to participate in the DRIP.
At the company’s discretion, reinvestment will be made by acquiring common shares from the open market or issuing shares
from Treasury. The plan is effective for dividends declared by the Company, beginning with dividends declared November 2021.


 


	f.	Initial
                                         Public Offering



 


TF
Precious Metals closed its initial public offering (“IPO”) on May 26, 2021. TF Precious Metals sold an aggregate
of 19,230,770 treasury common shares at an offering price of $13.00 per share. On June 29, 2021, the underwriters of the IPO exercised
an over-allotment option granted to purchase a further 1,058,553 treasury common shares at the initial offering price of $13.00
per share. The common shares are listed on the Toronto Stock Exchange in both Canadian and U.S. dollars under the symbols TSX:
TFPM and TSX: TFPM.U, respectively. Total proceeds from the IPO, net of underwriter fees and various issue costs, were $245,115.


 





    24


     


    


Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 



 


	g.	IAMGOLD
                                         Royalty Portfolio Purchase



 


On
January 12, 2021, the Company entered into an agreement (the “IAMGOLD Agreement”) to purchase a royalty portfolio
from IAMGOLD Corporation and certain of its subsidiaries (together, “IAMGOLD”). On March 26, 2021, the Company
and IAMGOLD entered into an amendment agreement pursuant to which the Company agreed to acquire a royalty portfolio consisting
of 34 royalties on various exploration and development properties for an aggregate acquisition price of $45,667. The acquisition
of 33 royalties for $35,667 closed effective March 26, 2021. The acquisition of the remaining royalty, Antofagasta’s Polo
Sur project located in Chile, closed on April 16, 2021, following satisfaction of certain corporate actions in Chile. Transaction
costs incurred of $393 were capitalized at the acquisition date.


 


	h.	Buriticá
                                         Gold Stream — Exercise of Buyback Option



 


On
September 22, 2020, the Company received an irrevocable notice from the operator of the Buriticá mine, Zijin Mining, to
exercise the buyback option it had on the Buriticá gold stream. On December 29, 2020, the Company received a cash payment
of $78,028, calculated as $80,000 less adjustments based on gold ounces delivered to the Company during the fourth quarter of
2020 and recorded a gain of $30,926 on disposition of the gold stream. The Buriticá silver stream remains unaffected and
is not subject to any reduction.


 


	i.	Credit
                                         Facility Amendment



 


On
September 21, 2020, the Company increased the existing four-year Credit Facility from $400,000 to $500,000, with an additional
uncommitted accordion of $100,000, for a total availability of up to $600,000. Under the amendment, the applicable interest rate
margin under the facility was reduced by 25 basis points across all tiers. All other significant terms of the Credit Facility
remain unchanged, including maturity date, which remains at August 30, 2023.


 


	j.	Northparkes
                                         Gold and Silver Stream



 


On
July 10, 2020, the Company entered into an agreement with certain subsidiaries of China Molybdenum Co., Ltd. (“CMOC”),
to receive gold and silver deliveries determined by reference to gold and silver production of the Northparkes mine located in
New South Wales, Australia. Northparkes is currently owned 80% by CMOC and 20% by Sumitomo Corporation and Sumitomo Metal Mining
Co., Ltd. On July 17, 2020, TF International paid an upfront cash advance amount of $550,000 to CMOC, and will make additional
ongoing payments equal to 10% of the spot gold price at the time of delivery for each ounce delivered in exchange for gold deliveries
equal to 54% of Northparkes’ payable gold production until 630,000 ounces have been delivered to Triple Flag, and 27% of
payable gold production thereafter. In addition, the Company will make ongoing payments equal to 10% of the spot silver price
for silver deliveries equal to 80% of Northparkes’ payable silver production until 9,000,000 ounces have been delivered
to Triple Flag, and 40% of payable silver production thereafter, in each case for production within all concentrate shipments
following the July 1, 2020 effective date. Transaction costs incurred of $4,032 were capitalized at the acquisition date. The
parties have agreed to fixed payability factors of 93% for gold and 90% for silver. The stream has been recorded as a mineral
interest.


 


	k.	Nevada
                                         Copper Stream Amendment and Acquisition of Royalties



 


On
March 27, 2020, Triple Flag entered into an agreement with Nevada Copper Corp. (“Nevada Copper”) consisting
of several components totaling $35,000 in near-term funding and a contingent payment of $5,000. The first component was a stream
amendment whereby TF International would advance an additional deposit of $ 15,000 to Nevada Copper, bringing the total amount
of funding for the Pumpkin Hollow underground stream to $85,000. As consideration for the additional advance of $15,000, the parties
agreed to increase the stream rate for gold and silver to 97.5% from 90% and reduce the variable gold and silver price payable
by the Company on delivery of gold and silver from 10% to 5% of the relevant spot price. The first $10,000 was funded on May 1,
2020, and the balance is being funded through reinvestment of 50% of the first $10,000 cash flow
generated from the stream from May 1, 2020 onwards. Funding through reinvestment of cash flows generated is being recorded at
the funding date.


 





    25


     


    


Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 






 


The
second component of the agreement was the purchase of a 0.7% Net Smelter Return (“NSR”) royalty on the open
pit portion of the Pumpkin Hollow copper project for $17,000, which was paid on March 27, 2020. The third component of the agreement
was the purchase of a 2% NSR Tedeboy Area royalty for $3,000 and a contingent payment of $5,000. The $3,000 was paid on March
27, 2020 and remaining contingent payment of $5,000 will be funded upon commencement of commercial production. The additional
deposit and royalties have been recorded as mineral interests. The contingent payment will be recorded as a mineral interest at
the funding date.


 


	l.	Royal
                                         Bafokeng Platinum Limited Gold Stream



 


On
October 13, 2019, the Company announced an agreement with Royal Bafokeng Platinum Limited (“RBPlat”), a company
headquartered in South Africa and listed on the JSE (Johannesburg Stock Exchange), its direct and indirect subsidiaries Royal
Bafokeng Resources Proprietary Limited and Maseve Investments 11 Proprietary Limited, pursuant to which TF International agreed
to purchase a 70% gold stream on RBPlat’s Platinum Group Metals (“PGM”) operations in exchange for $145,000
and ongoing payments of 5% of the spot gold price for each ounce of gold delivered under the agreement. Under the terms of the
agreement, Triple Flag receives 70% of the payable gold until 261,000 ounces are delivered, and 42% of the payable gold thereafter.
The parties have agreed to a fixed payability ratio of 85%, and to a gold recovery floor mechanism whereby for the first 5 calendar
years commencing at closing, if gold recoveries at the RBPlat PGM processing facilities are less than 66%, the Company will be
entitled to receive an additional delivery of gold representing the amount of gold that would have been delivered in such year
had gold recoveries been 66%. Transaction costs include capitalized costs of $115. The transaction closed on January 23, 2020.


 


7.
Cash and cash equivalents


 


	As at December 31	 	2021	 	 	2020	 
	Bank balances	 	$	17,661	 	 	$	20,637	 
	Short-term deposits	 	 	23,011	 	 	 	-	 
	Total cash and cash equivalents	 	$	40,672	 	 	$	20,637	 



 


Cash
and cash equivalents include cash and money market investments with original maturities of less than 90 days.


 


8.
Amounts receivable and prepayments


 


	As at December 31	 	2021	 	 	2020	 
	Royalties receivable	 	$	6,313	 	 	$	8,945	 
	Prepayments	 	 	637	 	 	 	240	 
	Sales tax recoverable	 	 	74	 	 	 	219	 
	Total amounts receivable and prepayments	 	$	7,024	 	 	$	9,404	 



 


Royalties
receivable represents amounts that are generally collected within 45 days of quarter-end. Prepayments largely represent various
insurance programs that are in place.


 





    26


     


    


Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 



 


9.
Inventory


 


	As at December 31	 	2021	 	 	2020	 
	Gold credits1	 	$	938	 	 	$	-	 
	Silver credits2	 	 	434	 	 	 	-	 
	Total inventory	 	$	1,372	 	 	$	-	 



 


		1.	Represents 1,188 oz of gold (2020: nil), and includes
depletion of $727 at December 31, 2021 (2020: $nil).






		2.	Represents
34,194 oz of silver (2020: nil), and includes depletion of $352 at December 31, 2021 (2020: $nil).



 


Inventory
comprises unsold ounces of gold and silver credits acquired, all of which were sold in the month following year-end. Cost of sales
represents the value of inventory expensed during the year.


 


10.
Loans receivable


 


	As at December 31	 	2021	 	 	2020	 
	Bridge Financing - Stornoway Diamonds1,3	 	$	8,561	 	 	$	3,843	 
	Working Capital Facility - Stornoway Diamonds2,3	 	 	1,127	 	 	 	1,971	 
	Total loans receivable	 	$	9,688	 	 	$	5,814	 



 


		1.	Represents
a receivable under a bridge financing facility provided by certain secured lenders, including the Company, in June 2019 to Stornoway
and certain of its subsidiaries. The loan bears interest at 8.25% per annum which is calculated and compounded monthly and is
capitalized until repayment. The increase in the loan balance during the year ended December 31, 2021 represents additional funding
and interest accrued on the loan. The loan matures on April 30, 2022.






		2.	Represents
working capital financing initially provided to Stornoway in 2019. The loan bears interest at 12.5% which is calculated and compounded
monthly and is capitalized until repayment. The decrease in the loan balance during the year ended December 31, 2021 represents
a $1,108 repayment, partially offset by interest accrued on the loan. The loan matures on April 30, 2022.






		3.	The
Bridge Financing and Working Capital Facility rank senior to all other creditors of Stornoway.



 


11.
Investments


 


	As at December 31	 	2021	 	 	2020	 
	Equity investment in GoldSpot Discoveries Corp.1	 	$	4,711	 	 	$	2,276	 
	Equity investment and warrants in Excelsior Mining Corp.2	 	 	4,571	 	 	 	12,582	 
	Equity investment in Talon Metals Corp.3	 	 	2,397	 	 	 	1,680	 
	Equity investment and warrants in Nevada Copper Corp.4	 	 	1,389	 	 	 	3,006	 
	Equity investment and warrants in Steppe Gold Ltd.5	 	 	604	 	 	 	8,033	 
	Total investments	 	$	13,672	 	 	$	27,577	 



 


		1.	Includes
6.4 million common shares of GoldSpot Discoveries Corp. For the year ended December 31, 2021, 0.8 million shares were sold for
$678.






		2.	Includes
13.8 million Excelsior common shares and 3.5 million common share purchase warrants of Excelsior Mining Corp.






		3.	On
December 3, 2021, we acquired 5 million common shares of Talon Metals (“Talon Shares”) for C$413 pursuant to
exercising our 5 million common share purchase warrants. Subsequent to year-end, the Company sold 5 million Talon Shares for C$3,700.
The disposition will be recorded during the first quarter of 2022.






		4.	Includes
2.5 million common shares and 1.5 million common share purchase warrants of Nevada Copper Corp.






		5.	Includes
2.1 million common share purchase warrants, each of which is exercisable to acquire one common share of Steppe Gold Limited. Also
includes 2.3 million unit purchase warrants each of which is exercisable to acquire: (i) one common share of Steppe Gold, and
(ii) one common share purchase warrant of Steppe Gold. For the year ended December 31, 2021, 1.5 million shares of Steppe Gold
Ltd. were sold for $2,770.



 


Investments
comprise equity interests and warrants in publicly traded companies and have been recorded at fair value. The change in fair value
reported in the consolidated statements of income for the year ended December 31, 2021 was $10,786 loss (2020: $6,447 gain). The
fair value of the equity investments is classified as level 1 of the fair value hierarchy because the main valuation inputs used
are quoted prices in active markets, and the fair value of the warrants is classified as level 2 because one or more of the significant
inputs are based on observable market data. Refer to Note 26 for additional details.


 




    27


     


    




Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 









 


12.
Mineral interests


 


	December 31, 2021	 	Mineral Streams	 	 	Royalties	 	 	Total1	 
	Cost	 	 	 	 	 	 	 	 	 	 	 	 
	As at January 1, 2021	 	$	1,276,549	 	 	$	183,755	 	 	$	1,460,304	 
	Additions2	 	 	542	 	 	 	50,721	 	 	 	51,263	 
	As at December 31, 2021	 	$	1,277,091	 	 	$	234,476	 	 	$	1,511,567	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accumulated depletion and impairments	 	 	 	 	 	 	 	 	 	 	 	 
	As at January 1, 2021	 	$	(200,060	)	 	$	(31,524	)	 	$	(231,584	)
	Depletion	 	 	(44,446	)	 	 	(10,304	)	 	 	(54,750	)
	As at December 31, 2021	 	$	(244,506	)	 	$	(41,828	)	 	$	(286,334	)
	Carrying value	 	$	1,032,585	 	 	$	192,648	 	 	$	1,225,233	 





 


	December 31, 2020	 	Mineral Streams	 	 	Royalties	 	 	Total1	 
	Cost	 	 	 	 	 	 	 	 	 	 	 	 
	As at January 1, 2020	 	$	614,207	 	 	$	163,517	 	 	$	777,724	 
	Additions3	 	 	709,444	 	 	 	20,238	 	 	 	729,682	 
	Disposals4	 	 	(47,102	)	 	 	-	 	 	 	(47,102	)
	As at December 31, 2020	 	$	1,276,549	 	 	$	183,755	 	 	$	1,460,304	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accumulated depletion and impairments	 	 	 	 	 	 	 	 	 	 	 	 
	As at January 1, 2020	 	$	(154,294	)	 	$	(18,034	)	 	$	(172,328	)
	Depletion	 	 	(37,902	)	 	 	(13,490	)	 	 	(51,392	)
	Impairment charges5	 	 	(7,864	)	 	 	-	 	 	 	(7,864	)
	As at December 31, 2020	 	$	(200,060	)	 	$	(31,524	)	 	$	(231,584	)
	Carrying value	 	$	1,076,489	 	 	$	152,231	 	 	$	1,228,720	 




 


	1.	Includes
                                         $1,081,063 (2020: $1,105,174) of depletable mineral interest and $144,170 (2020: $123,546)
                                         of non-depletable mineral interest.






	2.	Reflects
                                         acquisition of IAMGOLD royalty portfolio and Nevada Copper Stream reinvestment funding.
                                         See Note 6 for further details.






	3.	Reflects
                                         acquisition of Northparkes gold and silver stream, RBPlat gold stream, Nevada Copper
                                         Stream amendment and acquisition of royalties. See Note 6 for further details.






	4.	Reflects
                                         disposition of Buriticá gold stream which resulted in a gain of $30,926. See Note
                                         6 for further details.






	5.	Reflects
                                         impairment charges taken for the Renard stream. See Note 13 for further details.



 


13.
Impairment of Streams, Royalties and other interests


 


In
accordance with the Company’s accounting policy, non-current assets are tested for impairment or impairment reversals when
events or changes in circumstances suggest that the carrying amount may not be recoverable or is understated. Impairments in the
carrying value of each cash-generated unit (“CGU”) are measured and recorded to the extent that the carrying
value of each CGU exceeds its estimated recoverable amount, which is the higher of fair value less costs of disposal (“FVLCD”)
and value-in-use (“VIU”), which is generally calculated using an estimate of future discounted cash flows.


 


For
the years ended December 31, 2021 and 2020, the Company reviewed all of our assets for indicators of impairment or reversal of
impairment for the Company’s mineral interests and concluded there were no indicators of impairment or reversal of impairment,
except as noted below.


 


In
September 2020, the Stornoway board approved a restart plan and Renard re-commenced production on September 1, 2020. Further to
this restart plan, the shareholders of Stornoway increased the working capital facility by up to C$30,000 (up to C$3,750 for Triple
Flag) in a senior secured working capital facility, resulting in the Company’s attributable portion of the working
capital facility increasing from C$2,600 to C$6,350, of which C$780 (net of repayments of C$1,430) has been advanced as of December
31, 2021.


 





    28


     


    



Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 









 


In
March 2020, in light of COVID-19, the Government of Quebec ordered a shutdown of all mining activities in Quebec and on April
15, 2020, lifted the ban. Concurrent with the initial order, Stornoway Diamonds Corporation (“Stornoway”),
the owner and operator of the Renard mine, shut down all mining activities and put Renard on care and maintenance. When the government
shutdown order was lifted, Stornoway decided to extend the care and maintenance period of its operations due to depressed diamond
market conditions. The Company concluded that all of the above were triggering events. As a result, management performed an impairment
assessment for the diamond stream investment as at March 31, 2020, resulting in an impairment of $7,864.


 


The
stream investment in Renard was written down to its estimated recoverable amount of $13,739. The Company estimated the recoverable
amount in accordance with the VIU model on a discounted cash flows basis and using a Monte Carlo simulation with discrete diamond
pricing and restart scenarios. The different scenarios considered changes in the key assumptions used to project the forecast
cash flows that are subject to risk and uncertainty including: (1) diamond prices, and (2) an estimate as to when Renard will
resume production. The main valuation inputs used were the cash flows expected to be generated by the sale of diamonds from the
Renard diamond stream over the estimated life of the Renard diamond mine, based on expected long-term diamond prices per carat,
a real discount rate of 8.25% and weighted probabilities of different restart scenarios. The Company also performed a sensitivity
analysis for the real discount rate. A 1% increase in discount rate would have resulted in an additional impairment charge of
$640, while holding all other assumptions constant.


 


14.
Other assets


 


	As at December 31	 	2021	 	 	2020	 
	Deferred charges – Credit Facility1	 	$	1,805	 	 	$	2,888	 
	Right-of-use asset2	 	 	929	 	 	 	1,177	 
	Leasehold improvements3	 	 	354	 	 	 	449	 
	Furniture and fixtures4	 	 	58	 	 	 	85	 
	Intangible asset5	 	 	5	 	 	 	35	 
	Deferred charges – Other6	 	 	-	 	 	 	1,185	 
	Total other assets	 	$	3,151	 	 	$	5,819	 



 


		1.	Represents
costs associated with issuance and amendment of the Credit Facility. These costs are being amortized as a component of interest
over the life of the Credit Facility.






		2.	Represents
the asset that was recognized upon adoption of IFRS 16. It relates to a 7-year lease entered into by the Company for a term which
commenced on October 1, 2018 and is being amortized over the remaining life of the lease.






		3.	Represents
costs incurred to get lease space ready for use and are being amortized over the lease term.






		4.	Acquired
in 2019 and are being amortized over 5 years.






		5.	Includes
initial software and configuration cost of the Company’s ERP system, which is being amortized over 5 years.






		6.	Represents
expenses relating to the IPO as at December 31, 2020. Of these costs, $670 relating to a U.S. listing on IPO were expensed for
the year ended December 31, 2021, as the U.S. listing on IPO was not pursued. The balance was recorded in equity upon successful
completion of the IPO.



 


15.
Amounts payable and other liabilities


 


	As at December 31	 	2021	 	 	2020	 
	Accrued liabilities1	 	$	3,223	 	 	$	2,103	 
	Amounts payable	 	 	147	 	 	 	775	 
	Accrued interest2	 	 	496	 	 	 	451	 
	Share-based payments (Note 22)	 	 	864	 	 	 	-	 
	Total amounts payable and other liabilities	 	$	4,730	 	 	$	3,329	 



 


		1.	Accrued
liabilities include accruals for annual short-term incentive and services performed, both of which are expected to be paid subsequent
to year-end.






		2.	Accrued
interest represents standby charges accrued on the Credit Facility.



 






    29


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 






 


16.
Lease obligation


 


	As at December 31	 	2021	 	 	2020	 
	At January 1	 	$	1,378	 	 	$	1,572	 
	Repayments	 	 	(258	)	 	 	(218	)
	Foreign exchange difference	 	 	7	 	 	 	24	 
	At December 31	 	$	1,127	 	 	$	1,378	 
	 	 	 	 	 	 	 	 	 
	Lease obligation - current	 	$	270	 	 	$	252	 
	Lease obligation - non-current	 	 	857	 	 	 	1,126	 
	At December 31	 	$	1,127	 	 	$	1,378	 




 


17.
Long-term debt


 


	As at December 31	 	2021	 	 	2020	 
	Long-term debt – beginning of year	 	$	275,000	 	 	$	57,000	 
	Revolving Credit Facility drawdown	 	 	44,000	 	 	 	328,000	 
	Repayments	 	 	(319,000	)	 	 	(110,000	)
	Long-term debt	 	$	-	 	 	$	275,000	 



 


Revolving
Credit Facility


 


The
Credit Facility is to be used for general corporate purposes and investments in the mineral industry, including the acquisition
of mineral interests and other assets. The Credit Facility is secured by the Company’s assets, present and future (including
mineral interests and other assets).


 


Advances
under the Credit Facility can be drawn as follows: 


 


		•	Base
rate loans with interest payable monthly at the greater of: (a) the aggregate of (i) the Federal Funds Effective Rate and (ii)
1/2 of 1.0% per annum and (b) the Base Rate Canada, plus between 0.75% and 1.75% per annum (December 31, 2020: 0.75% and 1.75%
per annum) depending upon the Company’s leverage ratio; or






		•	LIBOR
loans for periods of 1, 2, 3 or 6 months with interest payable at a rate of LIBOR, plus between 1.75% and 2.75% per annum (December
31, 2020: 1.75% and 2.75% per annum), depending on the Company’s leverage ratio.



 


As
at December 31, 2021, the Credit Facility was fully repaid (December 31, 2020: $275,000). Finance costs, net for the year ended
December 31, 2021 were $6,342 (2020: $10,300), including interest charges, the impact of the pay-fixed receive-float interest
rate swap and standby fees. Standby fees range from 0.39% to 0.62% per annum (2020: 0.39% to 0.675% per annum) depending on the
Company’s leverage ratio even if no amounts are outstanding under the Credit Facility. The Credit Facility includes covenants
that require the Company to maintain certain financial ratios, including the Company’s leverage ratios. As at December 31,
2021, all such ratios and requirements were met.


 


On
April 30, 2020, the Company entered into a pay-fixed receive-float interest rate swap to hedge the LIBOR rate on $150,000 of the
Credit Facility. The swap was terminated on May 28, 2021. Refer to Note 26 for additional details.


 






    30


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 









 


18.
General administration costs


 


	For the years ended December 31	 	2021	 	 	2020	 
	Employee costs1	 	$	8,401	 	 	$	5,109	 
	Office, insurance and other expenses	 	 	2,352	 	 	 	772	 
	Professional services	 	 	1,061	 	 	 	1,114	 
	Amortization	 	 	399	 	 	 	399	 
	Total general administration costs	 	$	12,213	 	 	$	7,394	 




 


		1.	Includes
share-based compensation expense of $2,337 (2020: $nil).



 


19.
Finance costs, net


 


	For the years ended December 31	 	2021	 	 	2020	 
	Interest expense - long-term debt	 	$	6,342	 	 	$	10,300	 
	Interest expense - lease obligation	 	 	81	 	 	 	90	 
	Interest income - other	 	 	(750	)	 	 	(530	)
	Total finance costs, net	 	$	5,673	 	 	$	9,860	 



 


20.
Commitments and contingencies


 


Commitments


 


Mineral
interests


 


The
following table summarizes the Company’s commitments to make per unit cash payments for metal to which it has the contractual
right pursuant to the metal purchase and sale agreement: 


	Mineral interest	 	Commodity	 	Inception date	 	Attributable
 volume
purchased
	 	Per unit cash payment	 	Term
	Cerro Lindo	 	Silver	 	Dec. 20, 2016	 	65%(1)	 	10% of monthly average	 	Life of mine
	Altan Tsagaan Ovoo	 	Gold	 	Aug. 11, 2017	 	25%(2)	 	17% of spot	 	Life of mine
	Altan Tsagaan Ovoo	 	Silver	 	Aug. 11, 2017	 	50%(3)	 	17% of spot	 	Life of mine
	Renard	 	Diamond	 	Nov. 29, 2017	 	4%	 	Lesser of 40% of achieved
sales price or $40	 	Life of mine
	Pumpkin Hollow	 	Gold	 	Dec. 21, 2017	 	97.5%(4)	 	5% of spot	 	Life of mine
	Pumpkin Hollow	 	Silver	 	Dec. 21, 2017	 	97.5%(4)	 	5% of spot	 	Life of mine
	Gunnison	 	Copper	 	Oct. 30, 2018	 	16.5%(5)	 	25% of spot	 	Life of mine
	Buriticá	 	Silver	 	Mar. 15, 2019	 	100%(6)	 	5% of spot	 	Life of mine
	RBPlat	 	Gold	 	Jan. 23, 2020	 	70%(7)	 	5% of spot	 	Life of mine
	Northparkes	 	Gold	 	Jul. 10, 2020	 	54%(8)	 	10% of spot	 	Life of mine
	Northparkes	 	Silver	 	Jul. 10, 2020	 	80%(9)	 	10% of spot	 	Life of mine



 


		1.	65%
of payable silver produced from Cerro Lindo until 19.5 million ounces have been delivered and 25% thereafter.






		2.	25%
of gold from ATO until 46,000 ounces of gold have been delivered and thereafter 25% of gold subject to an annual cap of 7,125
ounces.






		3.	50%
of silver from ATO until 375,000 ounces of silver have been delivered and thereafter 50% of silver subject to an annual cap of
59,315 ounces.






		4.	Streamed
gold is to be based on a fixed gold-to-copper ratio (being 162.5 ounces of gold for each million pounds of payable copper over
the life of the asset) multiplied by a 97.5% gold stream percentage and streamed silver is to be based on a fixed silver-to-copper
ratio (being 3,131 ounces of silver for each million pounds of payable copper over the life of the asset) multiplied by a 97.5%
silver stream percentage.






		5.	The
stream percentage of refined copper produced from the Gunnison mine ranges from 3.5% to 16.5% depending on the Gunnison mine’s
total production capacity, with the stream percentage starting at 16.5% and decreasing as the Gunnison project’s production
capacity increases. Triple Flag has the option to increase its stream participation percentage by paying an additional deposit
of an amount up to US$65 million.






		6.	The
streamed silver is to be based on a fixed silver-to-gold ratio of 1.84 over the life of the asset.






		7.	70%
of payable gold produced until 261,000 ounces have been delivered and 42% thereafter.






		8.	54%
of payable gold produced until 630,000 ounces have been delivered and 27% thereafter.






		9.	80%
of payable silver produced until 9,000,000 ounces have been delivered and 40% thereafter.



 






    31


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 









 


Contingencies


 


		i.	Kemess
Project



 


On
May 16, 2018, Triple Flag entered into a silver purchase and sale agreement in relation to silver production from the Kemess project.
In exchange for an upfront deposit of $45,000 and ongoing payments of 10% of the average five-day silver market price for each
ounce of silver purchased, Triple Flag will receive 100% of the payable silver produced at the mine, subject to a fixed ratio
floor of 5.5755 ounces of silver for each 1,000 pounds of copper produced from the Kemess underground area and fixed payable metal
percentages for copper and silver. The upfront deposit is to be paid in four instalments: $10,000 upon a construction decision,
$10,000 on the first anniversary of the initial payment, and two $12,500 payments on the following two anniversaries.


 


Funding
of the upfront deposit is subject to certain closing conditions, including the public announcement by Centerra Gold Inc. of a
construction decision. To date, no construction decision has been announced.


 


		ii.	Hemlo
Royalty supplemental payment



 


The
Company has contingent payments due in respect of the Hemlo royalty, which was acquired as part of the royalty portfolio purchased
from Centerra Gold Inc. For each 100,000 ounces of gold produced by the Hemlo mine in excess of 675,000 ounces, the Company is
required to make payments of C$50. The Company has incurred C$300 since acquiring the royalty.


 


		iii.	Eagle
River Royalty supplemental payment



 


The
Company has contingent payments due in respect of the Eagle River royalty, which was acquired as part of the royalty portfolio
purchased from Centerra Gold Inc. For each 50,000 ounces of gold produced by the Eagle River mine in excess of 207,000 ounces,
the Company is required to make payments of C$50. The Company has incurred C$300 since acquiring the royalty.


 


		iv.	Nevada
Copper Stream Amendment and Acquisition of Royalties



 


Under
the stream amendment, the Company agreed to re-invest 50% of the first $10,000 of cash flow generated from the stream from May
1, 2020 onwards. At December 31, 2021, the Company has funded $837. Pursuant to the purchase of a 2% NSR royalty on the Tedeboy
Area, a contingent payment of $5,000 will be funded upon commencement of commercial production.


 


21.
Related party transactions


 


The
Company’s related parties are its key management personnel, its directors, as well as Triple Flag Mining Elliott and Management
Co-Invest LP (“Co-Invest”) and Triple Flag Co-Invest Luxembourg Investment Company S.ar.l (“Luxco”).
Co-Invest and Luxco together own a majority of the issued and outstanding common shares of the Company, and are controlled by
certain investment funds advised by Elliott Investment Management L.P. and its affiliates.


 






    32


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 












 


Compensation
for key management personnel of the Company was as follows:


 


	For the years ended December 31	 	2021	 	 	2020	 
	Salaries and short-term employee benefits1	 	$	6,064	 	 	$	5,109	 
	Share-based payments2	 	 	2,337	 	 	 	-	 
	 	 	$	8,401	 	 	$	5,109	 



 


		1.	Includes
salary, benefits and bonuses earned in the period.






		2.	Represents
stock options, restricted share units, and deferred share units.



 


22.
Stock-based compensation


 


Stock
options


 


Under
the Company’s SOP, certain employees and officers may purchase common shares at an exercise price determined by the Board,
which may not be less than the fair market value of a common share (being the closing price of a common share on the TSX on the
last trading day immediately prior to the applicable date on which the stock option is granted). Stock options vest equally in
annual instalments over three years and have a 7 year expiry.


 


At
December 31, 2021, 1,517,910 (2020: nil) stock options were granted and outstanding. The options are expected to expire 7 years
after the grant date with an exercise price equal to the offering price of $13.00 per share. The options were valued using the
Black-Scholes model and incorporated several key assumptions which include volatility of 31%, expected dividend yield of 1.5%,
option life of 4.5 years, forfeiture rate of 10% and risk-free rate of 0.50%. The options will vest one-third on each of the following
three anniversaries of the grant date.


 


The
expected volatility assumptions have been developed taking into consideration historical volatility of comparable peer companies.
Expected life of the option is derived from the option valuation model, factoring in vesting and expiry of the options. Forfeitures
have also been factored in based on historical forfeiture rates. The risk-free rate is based on the U.S. Treasury yield curve
in effect at the time of the grant.


 


Compensation
expense for stock options was $1,311 in 2021 (2020: $nil) and is presented as a component of general administration costs. No
options were exercised or were available to be exercised in 2021.


 


Employee
Stock Option Activity


 


	 	 	2021	 
	 	 	Shares	 	 	Average price	 
	At January 1	 	 	-	 	 	$	-	 
	Granted	 	 	1,517,910	 	 	 	13	 
	At December 31	 	 	1,517,910	 	 	$	13	 



 


Stock
Options Outstanding


 


	 	 	 	Outstanding	 	 	Exercisable	 
	Exercise price	 	 	Shares	 	 	Average
price	 	 	Average life
(years)	 	 	Intrinsic
 value1
	 	 	Shares	 	 	Average
price	 	 	Intrinsic
 value1
	 
	$	13	 	 	 	1,517,910	 	 	$	13	 	 	 	6.4	 	 	$	-	 	 	 	-	 	 	$	-	 	 	 	-	 



 


		1.	Based
on the closing market share price on December 31, 2021 of USD $12.



 


As
at December 31, 2021, there was $2,286 (2020: $nil) of total unrecognized compensation cost relating to stock options. The Company
expects to recognize this cost over a weighted average period of 0.8 years.


 






    33


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 






 





Restricted
share units


 


During
the year ended December 31, 2021, 69,217 RSUs (2020: nil) were awarded to employees and officers of the Company. The RSUs will
vest in full on the third anniversary of the grant date. Included in the Company’s stock-based compensation expense is an
amount of $162 (2020: $nil) relating to RSUs. As at December 31, 2021, there was $669 (2020: $nil) of total unrecognized non-cash
stock-based compensation expense relating to unvested RSUs granted, which is expected to be recognized over a weighted average
period of 2.4 years.


 


Deferred
share units


 


During
the year ended December 31, 2021, 72,000 DSUs were granted to its non-executive independent directors under the DSU Plan (2020:
nil). No DSUs were redeemed or available to be redeemed during the year. The DSUs vested on December 31, 2021. The mark-to-market
adjustment recorded for the year ended December 31, 2021 in respect of the DSU Plan resulted in a decrease in the DSU liability
of $72 (2020: $nil). The value of the DSU liability as at December 31, 2021 was $864 (2020: $nil).


 


23.
Income Taxes


 


a.
      Income tax expense


 


	For the years ended December 31	 	2021	 	 	2020	 
	Current income tax expense	 	$	6,092	 	 	$	9,165	 
	Deferred tax expense	 	 	344	 	 	 	(2,570	)
	Income tax expense	 	$	6,436	 	 	$	6,595	 




 


	For the years ended December 31	 	2021	 	 	2020	 
	Tax expense related to continuing operations	 	 	 	 	 	 	 	 
	Current	 	 	 	 	 	 	 	 
	Canada	 	$	-	 	 	$	709	 
	International	 	 	6,092	 	 	 	8,456	 
	 	 	 	6,092	 	 	 	9,165	 
	Deferred	 	 	 	 	 	 	 	 
	Canada	 	 	289	 	 	 	(1,453	)
	International	 	 	55	 	 	 	(1,117	)
	 	 	 	344	 	 	 	(2,570	)
	Income tax expense	 	$	6,436	 	 	$	6,595	 



 






    34


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 









 


A
reconciliation between income tax expense and the product of accounting profit multiplied by the Company’s weighted average
tax rate applicable to profits of the consolidated entities is provided below:


 


	For the years ended December 31	 	2021	 	 	2020	 
	Earnings before income taxes	 	$	51,963	 	 	$	62,160	 
	 	 	 	 	 	 	 	 	 
	At 26.5% statutory rate	 	$	13,770	 	 	$	16,472	 
	Tax effects of:	 	 	 	 	 	 	 	 
	Income/expenses not taxed	 	 	(52	)	 	 	10	 
	Prior year true-up	 	 	776	 	 	 	402	 
	Temporary difference subject to Initial Recognition Exemption	 	 	1,003	 	 	 	1,768	 
	Differences in foreign statutory tax rates	 	 	(8,737	)	 	 	(13,159	)
	Impact of foreign exchange on deferred tax balance	 	 	(284	)	 	 	1,114	 
	Other	 	 	(40	)	 	 	(12	)
	Income tax expense	 	$	6,436	 	 	$	6,595	 



 


b.       Deferred
income tax


 


The
significant components of deferred income tax liabilities as at December 31, 2021 and 2020, respectively, are as follows:


 


	Summary of Deferred Income Tax Assets and Liabilities	 	 	 	 	 	 
	 	 	 	 	 	 	 
	For the years ended December 31	 	2021	 	 	2020	 
	Deferred tax assets	 	 	 	 	 	 	 	 
	Non-capital loss carryforwards	 	$	11,589	 	 	$	9,620	 
	Stream and other assets	 	 	252	 	 	 	248	 
	 	 	 	11,841	 	 	 	9,868	 
	Deferred tax liabilities	 	 	 	 	 	 	 	 
	Royalties	 	 	(11,678	)	 	 	(9,274	)
	 	 	 	163	 	 	 	594	 
	Classification	 	 	 	 	 	 	 	 
	Non-current assets	 	 	2,597	 	 	 	1,994	 
	Non-current liabilities	 	 	(2,434	)	 	 	(1,400	)
	 	 	$	163	 	 	$	594	 




 


	Movement in Net Deferred Taxes	 	 	 	 	 	 
	 	 	 	 	 	 	 
	For the years ended December 31	 	2021	 	 	2020	 
	Balance, beginning of the year	 	$	595	 	 	$	(2,063	)
	Recognized in profit and loss	 	 	(344	)	 	 	2,570	 
	Recognized in other comprehensive income	 	 	(88	)	 	 	88	 
	Balance, end of year	 	$	163	 	 	$	595	 



 


Changes
in deferred tax assets and liabilities have been recorded in net income for all periods presented.


 






    35


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 












 


Non-Capital
Losses


 


Non-capital
losses (“NCLs”) generated in Canada that are not utilized will expire in a period of 20 years from the date
of incurrence. As a result, the current non-capital loss balance has losses that expire between 2039 to 2041, as follows:


 


	Year of Expiry	 	 	2039	 	 	2040	 	 	2041	 	 	Total	 
	NCLs	 	 	$	24,323	 	 	$	8,156	 	 	$	11,336	 	 	$	43,814	 



 


24.
Shareholders’ equity


 


Share
capital


 


The
Company is authorized to issue an unlimited number of common and preferred shares. At December 31, 2021, the share capital comprises
156,036,737 common shares with no par value.


 


	 	 	Number of

                                                                                common shares
	 	 	Amount	 
	Balance at December 31, 2019	 	 	97,915,712	 	 	$	639,151	 
	Additional shares issued from Treasury	 	 	37,987,680	 	 	 	370,000	 
	Balance at December 31, 2020	 	 	135,903,392	 	 	$	1,009,151	 
	Additional shares issued from Treasury	 	 	20,289,323	 	 	 	245,115	 
	Normal course issuer bid purchase of common shares	 	 	(155,978	)	 	 	(1,679	)
	Balance at December 31, 2021	 	 	156,036,737	 	 	$	1,252,587	 



 


On
July 15, 2020, the Company issued 37,987,680 common shares to Triple Flag Mining Aggregator s.à r.l. (“Aggregator”),
a company existing under the laws of Luxembourg and owned by certain investment funds advised by Elliott Investment Management
L.P. and its affiliates, for an aggregate subscription price of $370,000 and Aggregator transferred such shares to Luxco on July
24, 2020.


 


During
the second quarter of 2021, the Company issued 20,289,323 shares pursuant to the IPO, including the over-allotment option, for
gross proceeds of $263,761 ($245,115 net of underwriter fees and various issue costs of $18,646).


 


In
October 2021, Triple Flag established a NCIB program. For the year ended December 31, 2021, the Company purchased 155,978 of its
common shares under the NCIB for $1,679.


 


In
December 2021, in connection with the NCIB, the Company entered into an ASPP with the designated broker responsible for the NCIB.
The ASPP is intended to allow for the purchase of its common shares under the NCIB at times when the Company would ordinarily
not be permitted to purchase its common shares due to regulatory restrictions and customary self-imposed blackout periods. The
ASPP is in effect from January 1, 2022 until March 31, 2022.


 


Dividends


 


In
2021, we declared and paid dividends in United States dollars totaling $14,838 (2020: $nil). For the year ended December 31, 2021,
no shares were issued from treasury for participation in the DRIP.


 






    36


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 









 


25.
Capital management


 


The
Company’s primary objective with respect to its capital management is to ensure that it has sufficient cash resources to
maintain its ongoing operations, meet contractual obligations under stream agreements with respect to mineral interests and facilitate
debt repayments.


 


The
Company manages its capital structure and makes adjustments in light of changes in its economic and operating environment and
the risk characteristics of the Company’s assets. For effective capital management, the Company implemented planning, budgeting
and forecasting processes to help determine the funds required to ensure the Company has the appropriate liquidity to meet its
operating and growth objectives. The Company ensures that there is access to sufficient funds to meet its short-term business,
operating and financing requirements, taking into account its anticipated cash flows from operations and its holdings of cash
and cash equivalents.


 


As
at December 31, 2021, the Company expects its capital resources and projected future cash flows from operations will be sufficient
to support its normal operating requirements on an ongoing basis. Refer to the liquidity risk section of Note 26 for further discussion
of the availability of funds to the Company.


 


The
Company is not subject to material externally imposed capital requirements and is in compliance with all its covenants under its
Credit Facility (refer to Note 17) as at December 31, 2021.


 


26.
Financial instruments


 


The
Company’s financial instruments include cash and cash equivalents, amounts receivable (excluding sales taxes and prepayments),
investments and loans receivable, amounts payable and other liabilities, lease obligations and long-term debt.


 


The
Company applies all of the requirements of IFRS 9 for its financial instruments. The approach in IFRS 9 is based on how an entity
manages its financial instruments and the contractual cash flow characteristics of the financial asset. IFRS 9 introduced a single
expected credit loss impairment model, which is based on changes in debt or credit quality since initial recognition.


 


IFRS
9 applies an expected credit loss model to evaluate financial assets for impairment. The Company’s financial assets which
are subject to credit risk include cash and cash equivalents, amounts receivable (excluding sales taxes and prepayments), and
loans receivable. The amounts receivable (excluding sales taxes and prepayments) are carried at amortized cost and had a carrying
value of $6,313 as at December 31, 2021 (December 31, 2020: $8,945). Considering the current turnover and credit risk associated
with the amounts receivable (excluding sales taxes and prepayments) and loans receivable, the application of the expected credit
loss model did not have a significant impact on the Company’s financial assets, because the Company determined that the
expected credit losses on its financial assets were nominal.


 


To
provide an indication about the reliability of the inputs used in determining fair value, the Company classifies its financial
instruments into the three levels prescribed under the accounting standards. The fair value hierarchy establishes three levels
to classify the inputs to valuation techniques used to measure fair value. Refer to Note 11 for additional details on investments
that are measured at fair value.


 






    37


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 









 


The
carrying value of amounts receivable (excluding sales taxes and prepayments), cash and cash equivalents, investments, loans receivable,
amounts payable and other liabilities, and long-term debt approximate their fair value. Financial assets and financial liabilities
as at December 31, 2021 and December 31, 2020 were as follows:


 


	As at December 31, 2021	 	FVTPL	 	 	Financial
Assets
 at
amortized cost
	 	 	Financial

                                                                              Liabilities
 at
amortized cost
	 
	Cash and cash equivalents	 	$	-	 	 	$	40,672	 	 	$	-	 
	Amounts receivable (excluding sales taxes and prepayments)	 	 	-	 	 	 	6,313	 	 	 	-	 
	Investments	 	 	13,672	 	 	 	-	 	 	 	-	 
	Loans receivable	 	 	-	 	 	 	9,688	 	 	 	-	 
	Amounts payable and other liabilities	 	 	-	 	 	 	-	 	 	 	4,730	 
	Total	 	$	13,672	 	 	$	56,673	 	 	$	4,730	 




 

	As at December 31, 2020	 	FVTPL	 	 	Financial Assets
at amortized cost	 	 	Financial

                                                                               Liabilities
at amortized cost
	 
	Cash and cash equivalents	 	$	-	 	 	$	20,637	 	 	$	-	 
	Amounts receivable (excluding sales taxes and prepayments)	 	 	-	 	 	 	8,945	 	 	 	-	 
	Investments	 	 	27,577	 	 	 	-	 	 	 	-	 
	Loans receivable	 	 	-	 	 	 	5,814	 	 	 	-	 
	Amounts payable and other liabilities	 	 	-	 	 	 	-	 	 	 	3,329	 
	Long-term debt	 	 	-	 	 	 	-	 	 	 	275,000	 
	Total	 	$	27,577	 	 	$	35,396	 	 	$	278,329	 



 


Derivative
Financial Instruments


 


In
the normal course of business, the Company’s assets, liabilities and forecasted transactions, as reported in US dollars,
are impacted by various market risks. The time frame and manner in which the Company manages those risks varies for each item
based upon the assessment of the risk and available alternatives for mitigating risk. For some of these particular risks, the
Company believes that derivatives are an appropriate way of managing the risk. The Company uses derivatives as part of the risk
management program to mitigate risk. The derivatives used meet hedge effectiveness criteria and are designated in a hedge accounting
relationship.


 


Derivatives
are designated as hedges of highly probable forecasted transactions (“cash flow hedges”), referred
to as “accounting hedges”. Hedges that are expected to be highly effective in achieving offsetting changes
in cash flows are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial
reporting periods for which they were designated.


 


On
April 30, 2020, the Company entered into a pay-fixed receive-float interest rate swap (“the swap”) to hedge
the LIBOR rate on $150,000 of its Credit Facility. The swap had been designated as a cash flow hedge, as it converted the floating
rate debt to fixed. Through the swap, interest on $150,000 of the balance outstanding under the facility was fixed at 0.315% plus
the applicable margin, depending on the Company’s leverage ratio. On May 28, 2021, the Company paid $297 to terminate the
swap, in conjunction with partial repayment of the Credit Facility. As a result, the Company discontinued hedge accounting and
released a loss of $297 ($218 loss net of tax) from AOCI.


 






    38


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 



 





27.
Financial risk exposure and risk management


 


The
Company is exposed in varying degrees to certain financial risks by virtue of its activities. The overall financial risk management
program focuses on preservation of cash flows by reducing exposure to risks posed by the uncertainties and volatilities of financial
markets. The Company is exposed to the following types of risk and manages them as follows:


 


		a.	Currency
risk



 


As
the Company evaluates potential mining interests across the globe some of the Company’s financial instruments and transactions
are denominated in currencies other than the US dollar. The fluctuation of the US dollar in relation to different currencies will
consequently have an impact upon the expenses and profitability of the Company and may also affect the value of the Company’s
assets.


 


To
mitigate this risk, the Company maintains the majority of its cash balances in US dollars and purchases of foreign currencies
are made only as and when required, at the prevailing spot price to fund corporate activities and facilitate payments.


 


		b.	Interest
rate risk



 


Interest
rate risk is the risk that the fair value of a financial instrument or cash flows associated with the instrument will fluctuate
due to changes in market interest rates.


 


The
only liability subject to interest is the Credit Facility which bears a variable interest rate when drawn. The undrawn Credit
Facility is subject to standby charges linked to interest rates. An increase of 1% in the interest rates would have resulted in
a decrease in net income of $353 (2021: $1,259). The Company has used interest rate swaps to mitigate some of its exposure to
interest rate risk in 2020 and 2021. Refer to Note 26 for details.


 


		c.	Credit
risk



 


Credit
risk is the risk of a financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligation. Credit risk arises principally from the Company’s royalty receivables, cash and cash equivalents
and short-term investments.


 


The
Company’s metals received from the various mineral interests are sold to a third-party broker and have limited credit risk.


 


The
Company receives royalty payments on a quarterly basis and the risk associated with collection of royalties are minimal since
the royalty payments are from mines that generally generate cash flows.


 


In
the case of other receivables of financing facilities, the Company performs either a credit analysis or ensures that it has sufficient
guarantees in case of a non-payment by the third party to cover the net book value of the note receivable.


 


The
Company manages counterparty credit risk, in respect of cash and cash equivalents, by maintaining bank accounts with highly rated
U.S. and Canadian banks. As at December 31, 2021, the Company’s cash and cash equivalents are maintained with U.S. and Canadian
banks with a minimum of an A1/P1 rating.


 






    39


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 












 


		d.	Liquidity
risk



 


Liquidity
risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company finances its
operations through a combination of operating cash flows, short-term and long-term debt. The Company primarily uses funds generated
from operating activities to fund operational expenses and interest and principal payments on its borrowings. The Company continuously
monitors and reviews its actual and forecasted cash flows and manages liquidity risk by maintaining adequate cash and cash equivalents
and by utilizing access to undrawn credit facilities.


 


The
Company believes its cash on hand and estimated cash flow from royalties and the sales of metal credits will be sufficient to
fund its anticipated operating cash requirements for the next twelve months.


 


Below
is a maturity analysis of the Company’s financial liabilities, and contractual obligations:


 


	As at December 31, 2021	 	Total	 	 	Less than one
year	 	 	One to three
years	 	 	After three
years	 
	Amounts payable and other liabilities	 	$	4,730	 	 	$	4,730	 	 	$	-	 	 	$	-	 
	Lease obligation	 	 	1,127	 	 	 	270	 	 	 	609	 	 	 	248	 
	Total contractual obligations	 	$	5,857	 	 	$	5,000	 	 	$	609	 	 	$	248	 




 

	As at December 31, 2020	 	Total	 	 	Less than one
year	 	 	One to three
years	 	 	After three
years	 
	Amounts payable and other liabilities	 	$	3,329	 	 	$	3,329	 	 	$	-	 	 	$	-	 
	Lease obligation	 	 	1,378	 	 	 	225	 	 	 	552	 	 	 	601	 
	Derivative liability	 	 	331	 	 	 	-	 	 	 	331	 	 	 	-	 
	Long-term debt	 	 	275,000	 	 	 	-	 	 	 	275,000	 	 	 	-	 
	Total contractual obligations	 	$	280,038	 	 	$	3,554	 	 	$	275,883	 	 	$	601	 



 


		e.	Commodity
price risk



 


The
profitability of the Company’s operations and mineral interests relates primarily to the market price and outlook of gold
and silver.


 


Commodity
prices historically have fluctuated widely and are affected by numerous factors outside of the Company’s control, including,
but not limited to, industrial, residential and retail demand, forward sales by producers and speculators, levels of worldwide
production, short-term changes in supply and demand due to speculative or hedging activities, macro-economic variables, geopolitical
events and certain other factors related specifically to gold (including central bank reserves management).


 


To
the extent that the price of commodities increases over time, the fair value of the Company’s mineral interests will increase
and cash flows will improve; conversely, declines in the price of a commodity will reduce the fair value of mineral interests
and cash flows. A protracted period of depressed prices could impair the Company’s operations and acquisition opportunities,
and significantly erode shareholder value.


 


An
increase (decrease) of 10% in the price of gold and silver, the Company’s two largest net revenue sources, would have resulted
in an increase (decrease) of net income from continuing operations of approximately $6,399 ($ 6,399) and $6,229 ($6,229), respectively.
The Company does not use derivatives to mitigate its exposure to commodity price risk.


 






    40


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 









 


28.
Revenue


 


Revenue
is comprised of the following:


 


	For the years ended December 31	 	2021	 	 	2020	 
	Streaming Interests	 	 	 	 	 	 	 	 
	Silver	 	$	68,777	 	 	$	40,436	 
	Gold	 	 	42,885	 	 	 	37,439	 
	Other	 	 	7,609	 	 	 	2,700	 
	Royalty Interests	 	 	31,150	 	 	 	32,013	 
	Total revenues	 	$	150,421	 	 	$	112,588	 



 


Stream
and royalty interest revenues were mainly earned from the following mineral interests:


 


	For the years ended December 31	 	2021	 	 	2020	 
	Streaming Interests	 	 	 	 	 	 	 	 
	Cerro Lindo	 	$	55,140	 	 	$	35,235	 
	Northparkes	 	 	26,797	 	 	 	11,675	 
	RBPlat	 	 	14,564	 	 	 	10,711	 
	Buriticá	 	 	7,922	 	 	 	4,783	 
	Renard	 	 	6,903	 	 	 	2,700	 
	Altan Tsagaan Ovoo	 	 	6,096	 	 	 	14,636	 
	Pumpkin Hollow	 	 	1,143	 	 	 	835	 
	Gunnison	 	 	706	 	 	 	-	 
	 	 	$	119,271	 	 	$	80,575	 
	Royalty Interests	 	 	 	 	 	 	 	 
	Fosterville	 	$	18,570	 	 	$	21,764	 
	Young-Davidson	 	 	5,067	 	 	 	3,758	 
	Dargues	 	 	3,121	 	 	 	1,874	 
	Henty	 	 	1,881	 	 	 	2,127	 
	Stawell	 	 	956	 	 	 	842	 
	Eagle River	 	 	810	 	 	 	805	 
	Hemlo	 	 	745	 	 	 	843	 
	 	 	$	31,150	 	 	$	32,013	 
	Total revenues	 	$	150,421	 	 	$	112,588	 



 




    41


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 









 


29.
Segment disclosure


 


The
Company’s business is organized into one single operating segment, consisting of acquiring and managing precious metal and
other high-quality streams and royalties. The Company’s chief operating decision-maker, the CEO, makes capital allocation
decisions, reviews operating results and assesses performance.


 


Geographic
revenues from the sale of metals and diamonds received or acquired from streams and royalties is determined by the location of
the mining operations giving rise to the stream or royalty interest.


 


For
the years ended December 31, 2021 and 2020, stream and royalty revenues were mainly earned from the following jurisdictions:


 


Revenue
by Geography


 


	For the years ended December 31	 	2021	 	 	2020	 
	Peru1	 	$	55,140	 	 	$	35,235	 
	Australia2	 	 	51,325	 	 	 	38,282	 
	South Africa1	 	 	14,564	 	 	 	10,711	 
	Canada3	 	 	13,525	 	 	 	8,106	 
	Colombia1	 	 	7,922	 	 	 	4,783	 
	Mongolia1	 	 	6,096	 	 	 	14,636	 
	United States1	 	 	1,849	 	 	 	835	 
	Total revenues	 	$	150,421	 	 	$	112,588	 



 


		1.	All
revenue from streams.






		2.	Includes
revenue from streams for the year ended December 31, 2021 of $26,797 (2020: $11,675), revenues from royalties for the year ended
December 31, 2021 of $24,528 (2020: $26,607).






		3.	Includes
revenue from streams for the year ended December 31, 2021 of $6,903 (2020: $2,700), revenues from royalties for the year ended
December 31, 2021 of $6,622 (2020: $5,406).



 


For
the years ended December 31, 2021 and 2020, non-current assets were located in the following jurisdictions:


 


	As at December 31	 	2021	 	 	2020	 
	Australia	 	$	587,208	 	 	$	604,160	 
	United States	 	 	172,902	 	 	 	170,257	 
	South Africa	 	 	135,722	 	 	 	141,156	 
	Canada	 	 	125,546	 	 	 	111,188	 
	Peru	 	 	116,974	 	 	 	140,187	 
	Colombia	 	 	50,718	 	 	 	52,368	 
	Mongolia	 	 	20,861	 	 	 	23,031	 
	Other	 	 	21,050	 	 	 	-	 
	Total non-current assets	 	$	1,230,981	 	 	$	1,242,347	 



 




    42


     


    

Triple
Flag Precious Metals Corp. 


Notes
to the Consolidated Financial Statements


 


For
the years ended December 31, 2021 and 2020 


(Expressed
in thousands of United States dollars, unless otherwise indicated, except share and per share information)


 









 


30.
Changes in working capital


 


	As at December 31	 	2021	 	 	2020	 
	(Increase) decrease in amounts receivable	 	$	2,380	 	 	$	(968	)
	Increase in other assets	 	 	1,185	 	 	 	(1,185	)
	Decrease (Increase) in inventory 1	 	 	(293	)	 	 	228	 
	Loans receivable2	 	 	(3,872	)	 	 	(3,017	)
	(Decrease) Increase in amounts payable and other liabilities	 	 	1,375	 	 	 	(12	)
	Change in working capital	 	$	775	 	 	$	(4,954	)



 


		1.	Excludes
depletion.






		2.	Reflects
increase in receivables from Stornoway Diamonds.



 


31.
Earnings per share - basic and diluted


 


	For the years ended December 31	 	2021	 	 	2020	 
	Net earnings	 	$	45,527	 	 	$	55,565	 
	Weighted average shares outstanding	 	 	148,025,464	 	 	 	115,456,471	 
	Earnings per share - basic and diluted(1)	 	$	0.31	 	 	$	0.48	 



 


		1.	The
Company has no dilutive instruments as at December 31, 2021 or earlier periods.



 


32.
Subsequent events


 


Beaufor
Royalty


 


On
February 4, 2022, the Company entered into a royalty purchase agreement with a third party to acquire a 2% net smelter returns
royalty (with a milestone-based stepdown to 1%) on the Beaufor mine for C$6,750. In connection with this transaction, the Company
entered into a binding agreement with Monarch Mining Corporation (“Monarch”) to provide Monarch with additional
funding of C$4,500 in consideration for increasing the royalty rate to 2.75% and eliminating the stepdown.


 


Talon
Royalty Buydown and Disposition of Equity Interest


 


On
February 15, 2022, Talon Nickel (USA) LLC (“Talon”) exercised its right to reduce the royalty rate under the
Tamarack royalty agreement from 3.5% to 1.85% of Talon’s interest in the Tamarack Project in exchange for a payment of $4,500.
Triple Flag acquired its royalty on the Tamarack Project for $5,000 in March 2019. The transaction will be recorded during the
first quarter of 2022.


 


On
December 3, 2021, the Company acquired 5 million common shares of Talon Metals for C$413 pursuant to exercising 5 million common
share purchase warrants. Subsequent to year-end, the Company sold 5 million Talon Shares for C$3,700. The disposition will be
recorded during the first quarter of 2022.


 



    43