Document:

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.

 

    43Exhibit 4.3

 

 

 

Management’s Discussion
and Analysis of

Triple Flag Precious
Metals Corp.

 

For the three months
and year ended December 31, 2021

 

(Expressed in United
States Dollars)

 

    

     

    

 

MANAGEMENT’S DISCUSSION
AND ANALYSIS OF

FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

 

This
Management’s Discussion and Analysis (‘‘MD&A’’) is intended to help the reader understand Triple
Flag Precious Metals Corp. (‘‘TF Precious Metals’’), its operations, financial performance and the present
and anticipated future business environment. This MD&A, which has been prepared as of February 22, 2022, should be read in conjunction
with the audited consolidated financial statements of TF Precious Metals for the years ended December 31, 2021 and 2020 (the “Annual
Financial Statements”), which have been prepared in accordance with International Financial Reporting Standards as issued by
the International Accounting Standards Board (IFRS). Certain notes to the Annual Financial Statements are specifically referred to in
this MD&A. All amounts in this MD&A are in U.S. dollars unless otherwise indicated. References to “US$”, “$”
or “dollars” are to United States dollars, references to “C$” are to Canadian dollars and references to “A$”
are to Australian dollars. In this MD&A, all references to ‘‘Triple Flag’’, the ‘‘Company’’,
 ‘‘we’’, ‘‘us’’ or ‘‘our’’ refer to TF Precious Metals together
with its subsidiaries, on a consolidated basis.

 

This
MD&A contains forward-looking information. Forward-looking information is necessarily based on a number of opinions, estimates and
assumptions that we considered appropriate and reasonable as of the date such statements are made, are subject to known and unknown risks,
uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be
materially different from those expressed or implied by such forward-looking information, including but not limited to the risk factors
described in the ‘‘Risk Factors” section of the Company’s final long form prospectus dated May 19, 2021, available
on SEDAR at  www.sedar.com, as supplemented by the Company’s annual information form (“AIF”) as
filed from time to time and available on SEDAR at www.sedar.com. There can be no assurance that such forward-looking information will
prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly,
users should not place undue reliance on forward-looking information, which speaks only as of the date made. See ‘‘Forward-Looking
Information’’.

 

Use of Non-IFRS Financial
Performance Measures

 

We use the following non-IFRS
financial performance measures in this MD&A:

 

		·	Gold
                                            Equivalent Ounces (“GEOs”)

 

		·	Adjusted
                                            Net Earnings and Adjusted Net Earnings per Share

 

		·	Adjusted
                                            EBITDA

 

		·	Free
                                            Cash Flow

 

		·	Asset
                                            Margin

 

		·	Total
                                            Margin

 

		·	Cash
                                            Costs and Cash Costs per GEO

 

For
a detailed description of each of the non-IFRS financial performance measures used in this MD&A and a detailed reconciliation to
the most directly comparable measure under IFRS please refer to the Non-IFRS Financial Performance Measures section of this MD&A.
The non-IFRS financial performance measures set out in this MD&A are intended to provide additional information to investors and
do not have any standardized meaning under IFRS, and therefore may not be comparable to other issuers, and should not be considered in
isolation or as a substitute for measures of performance prepared in accordance with IFRS.

 

    1

     

    

 

	Table of
    Contents	 
	Company Overview	3
	Market Overview	5
	Financial and Operating
    Highlights	6
	Guidance	9
	Sustainability Initiatives	10
	Portfolio of Streaming
    and Royalty Interests	12
	Key Developments	14
	Operating Assets –
    Performance	17
	Development Stage Assets	20
	Portfolio of Investments	21
	Financial Condition
    Review	22
	Liquidity and Capital
    Resources	29
	Quarterly Information	30
	Commitments and Contingencies	31
	Risk and Risk Management	33
	Internal Controls over
    Financial Reporting	34
	Public Securities Filings
    and Regulatory Announcements	35
	IFRS Critical Accounting
    Policies and Accounting Estimates	35
	Non-IFRS Financial Performance
    Measures	40
	Forward-Looking Information	44
	Technical and Third-Party Information	45

 

    2

     

    

 

Company Overview

 

Triple
Flag is a gold-focused streaming and royalty company offering bespoke financing solutions to the metals and mining industry. Our mission
is to be a sought-after, long-term funding partner to mining companies throughout the commodity cycle, while generating attractive returns
for our investors.

 

From our
inception in 2016 to our position now as an emerging senior streaming and royalty company, we have invested in excess of $1.7 billion
of capital and systematically developed a long-life, low-cost, high-quality diversified portfolio of streams and royalties providing
exposure primarily to gold and silver.

 

5-Year Performance

 

 

 

    3

     

    

 

 

 

1GEOs,
adjusted EBITDA and adjusted net earnings as presented above are non-IFRS financial performance measures with no standardized meaning
under IFRS and, therefore, may not be comparable to similar measures presented by other issuers. For further information and a detailed
reconciliation of each non-IFRS measure to the most directly comparable IFRS measure, see ‘‘Non-IFRS Financial Performance
Measures’’ in this MD&A.

 

We currently
have 79 assets, consisting of 9 streams and 70 royalties. These investments are tied to mining assets at various stages of the mine life
cycle.

 

	Asset Count	 	 	 
	Producing	 	 	15	 
	Development & Exploration	 	 	64	 
	Total	 	 	79	 

 

Our portfolio
is underpinned by a stable base of cash flow generating streams and royalties and is designed to grow intrinsically over time through
exposure to potential mine life extensions, exploration success, new mine builds and throughput expansions. In addition, we are focused
on further enhancing portfolio quality by executing accretive investments to grow the scale and quality of our portfolio of precious
metal streams and royalties. We believe we have a differentiated approach to deal origination and due diligence, increasing the applicability
of stream and royalty financing to an underserved mining sector, expanding the application of this form of financing through bespoke
deal generation for miners while creating a high-quality, gold-focused portfolio of streams and royalties for our investors. We focus
on ‘‘per share’’ metrics with the objective that accretive new investments are pursued with careful management
of the capital structure to effectively compete for quality assets without incurring long-term financial leverage.

 

For a discussion of key trends
and factors affecting our results of operations and financial position, see ‘‘Market Overview’’.

 

    4

     

    

 

Market
Overview

 

The market prices of gold and
silver are primary drivers of our profitability and ability to generate free cash flow.

 

The following
tables set forth the average gold and silver prices, and the average exchange rate between the Canadian and U.S. dollars, for the periods
indicated.

 

	 	 	Three months
    ended December 31	 	 	Year ended
    December 31	 
	Average Metal Prices/Exchange Rates	 	2021	 	 	2020	 	 	2021	 	 	2020	 
	Gold
    (US$/oz)1	 	 	1,795	 	 	 	1,874	 	 	 	1,799	 	 	 	1,770	 
	Silver
    (US$/oz)2	 	 	23.33	 	 	 	24.39	 	 	 	25.14	 	 	 	20.55	 
	Exchange
    rate (US$/C$)3	 	 	1.2603	 	 	 	1.3030	 	 	 	1.2535	 	 	 	1.3415	 

 

1Based
on the London Bullion Market Association (“LBMA”) PM fix.

2Based on the LBMA
fix. 

3Based
on Bank of Canada daily average exchange rate.

 

Gold

 

The market
price of gold is subject to volatile price movements over short periods of time and can be affected by numerous macroeconomic factors
including, but not limited to, the value of the U.S. dollar; the sale or purchase of gold by central banks and financial institutions;
interest rates; inflation or deflation; global and regional supply and demand; and global political and economic conditions. The market
price of gold is a significant contributor to the performance of our gold streams and royalty portfolio.

 

During
the three months ended December 31, 2021, the gold price ranged from $1,753 to $1,865 per ounce, averaging $1,795 per ounce for the period,
a 4% decrease from the same period in the prior year. During the year ended December 31, 2021, the gold price ranged from $1,684 to $1,943
per ounce, averaging $1,799 per ounce for the period, a 2% increase from the prior year. At December 31, 2021, the gold price was $1,806
per ounce (based on the most recent LBMA PM fix). The average gold price fluctuated during the fourth quarter of 2021, ending slightly
down as new variants of the COVID-19 virus weighed on investors. Investors anticipate the U.S. Central Bank will begin withdrawing pandemic-era
support for the economy and increasing interest rates in the coming year to fend off inflation risks amidst an improvement in the unemployment
rate and near forty -year highs in the Consumer Price Index being experienced towards the end of 2021. Also, during the quarter, physically
backed gold exchange traded funds (“ETFs”) saw global net outflows of $891 million across all regions.

 

Silver

 

The market
price of silver is also subject to volatile price movements. Silver, often considered a proxy for gold with a high level of correlation
to the metal, is predominantly used in industrial applications and silver demand is also correlated to the Industrial Index. A rebound
of manufacturing activity is expected to have a positive effect on silver as silver has many uses. The market price of silver is driven
by factors similar to those influencing the market price of gold, as stated above. The market price of silver is a significant contributor
to the performance of our silver streams.

 

During
the three months ended December 31, 2021, the silver price ranged from $21.81 to $25.27 per ounce, averaging $23.33 per ounce for the
period, a 4% decrease from the same period in the prior year. During the year ended December 31, 2021, the silver price ranged from $21.53
to $29.59 per ounce, averaging $25.14 per ounce for the period, a 22% increase from the prior year. At December 31, 2021, the silver
price was $23.09 per ounce (based on the LBMA fix). Similar to gold, silver was influenced by U.S. Federal Reserve policy, exchange traded
fund flows, COVID-19, and fluctuating investor demand.

 

Currency Exchange Rates

 

We are
subject to minimal currency fluctuations as all our revenue and cost of sales are denominated in U.S. dollars, with the majority of general
administration costs denominated in Canadian dollars. Given that general administration costs are not significant for us, movements in
the exchange rate between Canadian and U.S. dollars do not have a significant impact on our results. We do not have any hedging programs
in place for our non-U.S. dollar expenses given that the impact of currency fluctuation is insignificant.

 

    5

     

    

 

Financial
and Operating Highlights

 

Three months and year ended
December 31, 2021 compared to three months and year ended December 31, 2020

 

	($ thousands except GEOs, per share	 		 	 		 
	metrics, asset margin, total	 	 	Three
                                            months ended December 31	 	 	 	Year
                                            ended December 31	 
	margin, cash costs per GEO)	 	 	2021	 	 	 	2020	 	 	 	2021	 	 	 	2020	 
	IFRS measures:	 			 	 	 	 	 	 			 	 	 	 	 
	Revenue	 	$	36,990	 	 	$	41,999	 	 	$	150,421	 	 	$	112,588	 
	Gross Profit	 	 	20,651	 	 	 	22,723	 	 	 	83,253	 	 	 	50,098	 
	Depletion	 	 	13,056	 	 	 	15,832	 	 	 	53,672	 	 	 	53,231	 
	Net Earnings	 	 	13,381	 	 	 	53,955	 	 	 	45,527	 	 	 	55,565	 
	Net Earnings per Share (“EPS”)	 	 	0.09	 	 	 	0.40	 	 	 	0.31	 	 	 	0.48	 
	Operating Cash Flow	 	 	28,997	 	 	 	30,721	 	 	 	120,015	 	 	 	84,377	 
	Operating Cash Flow per Share	 	 	0.19	 	 	 	0.23	 	 	 	0.81	 	 	 	0.73	 
	Non-IFRS
    measures1:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	GEOs	 	 	20,605	 	 	 	22,409	 	 	 	83,602	 	 	 	63,059	 
	Adjusted Net Earnings	 	 	13,409	 	 	 	17,060	 	 	 	57,563	 	 	 	24,406	 
	Adjusted Net Earnings per Share (“Adjusted EPS”)	  	  	0.09 	  	  	  	 0.13	  	  	  	0.39 	  	  	  	 0.21	  
	Adjusted EBITDA	 	 	28,880	 	 	 	36,735	 	 	 	123,485	 	 	 	96,157	 
	Free Cash Flow	 	 	28,997	 	 	 	30,721	 	 	 	120,015	 	 	 	84,377	 
	Asset Margin	 	 	91	%	 	 	92	%	 	 	91	%	 	 	92	%
	Total Margin	 	 	78	%	 	 	87	%	 	 	82	%	 	 	85	%
	Cash Costs per GEO	 	 	159	 	 	 	154	 	 	 	161	 	 	 	147	 
	Acquisition of Mineral Interests	 	$	5,015	 	 	$	495	 	 	$	51,263	 	 	$	729,682	 

  

1GEOs,
adjusted net earnings, adjusted net earnings per share, adjusted EBITDA, free cash flow, asset margin, total margin and cash costs per
GEO as presented above and in the following discussion are non-IFRS financial performance measures with no standardized meaning under
IFRS and therefore may not be comparable to similar measures presented by other issuers. For further information and a detailed reconciliation
of each non-IFRS measure to the most directly comparable IFRS measure, see ‘‘Non-IFRS Financial Performance Measures’’
in this MD&A.

 

Three months ended December
31, 2021 compared to three months ended December 31, 2020

 

Revenue
was $37.0 million, a decrease of 12% from $42.0 million for the same period in the prior year due to $3.5 million lower revenue due to
lower volume from streams and royalties, $1.1 million lower revenue due to lower gold prices and $1.1 million lower revenue due to lower
silver prices, partially offset by $0.7 million higher revenue due to higher diamond prices. Lower revenue from streams and royalties
was driven by lower stream deliveries from the ATO stream due to ongoing COVID-19-related supply chain impacts, lower stream deliveries
from the Buriticá gold stream, largely due to the buyback of the gold stream at the end of December 2020 and lower metal sales
from the Northparkes gold and silver stream due to the timing of metal sales, partially offset by higher sales volume from the Cerro
Lindo silver stream and the Renard diamond stream.

 

Gross profit
was $20.7 million, a decrease of 9% from $22.7 million for the same period in the prior year. The decrease was driven by lower gross
profit from the ATO and Buriticá streams due to lower deliveries, lower gross profit from the Northparkes stream due to the timing
of metal sales and lower gold and silver prices, partially offset by higher gross profit from the Cerro Lindo silver stream due to higher
stream deliveries and higher gross profit from the Renard diamond stream due to higher stream deliveries and higher diamond prices.

 

    6

     

    

 

Depletion
was $13.1 million, a decrease of 18% from $15.8 million for the same period in the prior year. The decrease was largely driven by lower
depletion from the ATO and Buriticá streams due to lower metal sales and lower depletion from the Northparkes stream due to the
timing of metal sales, partially offset by higher depletion from the Renard diamond stream due to higher stream sales.

 

Net earnings
was $13.4 million, compared to $54.0 million for the same period in the prior year. Net earnings for the same period in the prior year
included a one-time $30.9 million gain on disposition of the Buriticá gold stream. Lower net earnings in 2021 were also driven
by lower gross profit across the portfolio, lower mark to market gains from equity investments, higher general administration costs driven
by increased public company costs, higher business development costs and expenditures on sustainability initiatives and higher income
taxes, partially offset by lower finance costs.

 

Operating
cash flow was $29.0 million, a decrease of 6% from $30.7 million for the same period in the prior year. The decrease was due to lower
cash flows from streams and royalties, higher general administration and business development costs as well as higher expenditures on
sustainability initiatives, partially offset by lower net cash taxes paid and higher working capital adjustments.

 

We sold
20,605 GEOs, a decrease of 8% from 22,409 GEOs sold for the same period in the prior year. The decrease was largely due to lower GEOs
from the ATO gold and silver stream due to lower deliveries, lower GEOs from Buriticá due to lower deliveries and lower GEOs from
Northparkes due to the timing of metal sales. This was partially offset by higher GEOs from the Cerro Lindo silver stream and the Renard
diamond stream due to higher deliveries.

 

Adjusted
net earnings was $13.4 million, compared to $17.1 million for the same period in the prior year. Key adjusting items included a $60 thousand
mark to market gain on equity investments, and $87 thousand of income tax on the adjustments. Key adjusting items for the same period
in the prior year included a $30.9 million gain on disposition from the Buriticá gold stream, a $6.3 million mark to market gain
on equity investments and $326 thousand of income tax on the adjustments.

 

Adjusted
EBITDA was $28.9 million, a decrease of 21% from $36.7 million for the same period in the prior year. The decrease was due to lower adjusted
EBITDA from streams and royalties, higher general administration and business development costs as well as higher expenditures on sustainability
initiatives.

 

Free cash
flow was $29.0 million, a decrease of 6% from $30.7 million for the same period in the prior year. The decrease reflected lower operating
cash flow.

 

Asset margin
was 91%, compared to 92% for the same period in the prior year. This was driven by an increase in the proportion of revenue from streams
with lower margins, partially offset by an increase in the proportion of revenue from royalties, as a percentage of overall revenue,
compared to streams. Royalties typically generate nearly a 100% margin.

 

Total margin
was 78%, compared to 87% for the same period in the prior year. Lower total margin was driven by lower asset margin, higher general administration
costs driven by increased public company costs, higher business development costs and higher expenditures on sustainability initiatives.

 

Cash costs
per GEO was $159, compared to $154 for the same period in the prior year. The increase is largely due to higher proportion of streams
with higher ongoing payments, partially offset by lower market prices.

 

Acquisitions
of mineral interests was $5.0 million, compared to $0.5 million for the same period in the prior year. Acquisitions in 2021 included
$4.9 million for the Chilean royalty portfolio acquisition and $0.1 million stream funding for the Pumpkin Hollow gold and silver stream.
Acquisitions in 2020 largely related to $0.3 million of funding for the Pumpkin Hollow gold and silver stream.

 

    7

     

    

 

Year ended December 31, 2021
compared to the year ended December 31, 2020

 

Revenue
was a yearly record of $150.4 million, an increase of 34% from $112.6 million for the prior year due to $12.4 million of revenue from
new stream agreements, $13.3 million higher revenue due to higher volume from existing streams and royalties, $10.6 million higher revenue
due to higher silver prices, and $1.7 million higher revenue due to higher diamond prices. Revenue from new stream agreements was driven
by stream deliveries from the Northparkes gold and silver stream, which was acquired in July 2020. Higher revenue from existing streams
and royalties was driven by higher sales volumes from the Cerro Lindo and RBPlat streams due to higher deliveries and stream deliveries
from the Buriticá and Gunnison streams, which both entered production in December 2020, partially offset by lower stream deliveries
from the ATO stream due to ongoing COVID-19-related supply chain impacts and lower attributable royalty ounces largely driven by lower
production at Fosterville.

 

Gross profit
was $83.3 million, an increase of 66% from $50.1 million in the prior year. The increase was driven by the full-year impact of gross
profit of $7.1 million from new stream agreements and higher gross profit of $26.0 million from existing streams and royalties. Gross
profit of $7.1 million from new stream agreements was driven by the Northparkes stream, which was acquired in July 2020. Higher gross
profit of $26.0 million from existing streams and royalties was due to higher gross profit from the Cerro Lindo silver stream driven
by higher silver volume at higher silver prices, stream deliveries from the Buriticá and Gunnison streams, higher gold sales volume
from the RBPlat gold stream at higher gold prices and higher gross profit from royalties driven by higher gold prices, partially offset
by lower sales volume from the ATO stream due to lower deliveries.

 

Depletion
was $53.7 million, within our full-year 2021 guidance, an increase of 1% from the $53.2 million in the prior year. The increase was driven
by higher depletion from the Northparkes gold and silver stream, which was acquired in July 2020, higher depletion from the RBPlat stream
due to higher deliveries and stream deliveries from the Buriticá and Gunnison streams, which both entered production in December
2020, partially offset by lower depletion from the ATO stream due to lower deliveries and lower depletion from the Fosterville royalty
due to lower attributable royalty ounces.

 

Net
earnings were $45.5 million, compared to net earnings of $55.6 million in the prior year. Net earnings in the prior year included a one-time
gain on disposition of $30.9 million from the Buriticá gold stream as well as impairment charges of $7.9 million related to the
Renard stream. Higher net earnings excluding the impact of one-time gain and impairment charges, as compared to the prior year, was driven
by higher gross profit across the portfolio and lower finance costs, partially offset by higher mark to market losses from equity investments,
higher general administration costs driven by increased public company costs, higher business development costs, IPO readiness costs
for a U.S. listing that was not pursued, higher expenditures on sustainability initiatives as well as loss on sale of derivatives.

 

Operating
cash flow was a yearly record of $120.0 million, an increase of 42% from $84.4 million in the prior year. The increase was due to higher
cash flows from streams and royalties, higher working capital adjustments and lower net cash taxes paid, partially offset by higher general
administration and business development costs, IPO readiness costs as well as higher expenditures on sustainability initiatives.

 

In the
year ended December 31, 2021, we sold 83,602 GEOs, a yearly record, which exceeds our revised full-year 2021 guidance, and an increase
of 33% from 63,059 GEOs sold for the prior year. Record GEOs were due to higher GEOs from Cerro Lindo and RBPlat due to higher deliveries,
higher GEOs from the Northparkes and Buriticá streams, both of which began deliveries in the latter half of 2020, as well as higher
GEOs from the Renard stream which was impacted by a shutdown as a result of COVID-19 during part of the prior year. This was partially
offset by lower GEOs from the ATO gold and silver stream due to lower deliveries and lower GEOs from the Fosterville royalty due to lower
production.

 

Adjusted
net earnings was a yearly record of $57.6 million, compared to $24.4 million in the prior year. Key adjusting items included a $10.8
million mark to market loss on equity investments, $0.7 million of IPO readiness costs related to a potential U.S. listing that was not
pursued, $0.3 million loss related to closing out the interest rate swap, as well as $0.3 million of income tax on the adjustments. Key
adjusting items in the prior year included a $7.9 million charge related to impairment of our investment in Renard as well as a $6.4
million mark to market gain on equity investments and $1.7 million of income tax recovery on the adjustments.

 

    8

     

    

 

Adjusted
EBITDA was a yearly record of $123.5 million, an increase of 28% from $96.2 million in the prior year. The increase was driven by adjusted
EBITDA from new stream deliveries, higher adjusted EBITDA from existing streams and royalties, partially offset by higher general administration
and business development costs as well as higher expenditures on sustainability initiatives.

 

Free
cash flow was a yearly record of $120.0 million, an increase of 42% from $84.4 million in the prior year. The increase reflected higher
operating cash flow.

 

Asset
margin was 91%, compared to 92% in the prior year. This was driven by a lower proportion of revenue from royalties (which typically generate
close to a 100% margin), partially offset by an increase in proportion of revenue from streams with higher margins.

 

Total
margin was 82%, compared to 85% in the prior year. Lower total margin was driven by lower asset margin, higher general administration
and business development costs and higher expenditures on sustainability initiatives.

 

Cash
costs per GEO was $161, compared to $147 in the prior year. The increase is largely due to higher gold and silver market prices compared
to the prior year.

 

Acquisitions
of mineral interests was $51.3 million, compared to $729.7 million in the prior year. Acquisitions included $45.8 million of funding
for the IAMGOLD royalty portfolio including capitalized costs, $4.9 million of funding for the Chilean royalty portfolio and $0.5 million
stream funding for the Pumpkin Hollow gold and silver stream. Acquisitions in 2020 largely related to $554.0 million of funding, including
capitalized costs towards the Northparkes gold and silver stream, $145.0 million of funding for the RBPlat gold stream as well as $30.0
million funding for the Nevada Copper stream amendment and royalty acquisition.

 

Guidance

 

For 2021,
our GEOs exceeded our revised guidance and were within our original guidance. Depletion was within our original and revised guidance
ranges.

 

In October
2021, we revised our 2021 guidance from 83,000 – 87,000 GEOs to 80,000 – 83,000 GEOs due to lower production from ATO. ATO’s
gold production had been negatively impacted by COVID-19-related supply disruptions of key reagents. Relatively high rates of COVID-19
cases in Mongolia resulted in robust restrictions for certain goods at the Mongolia-China border, causing supply disruptions at ATO,
representing a deferral of production from 2021 to 2022.

 

	 	 	Original Guidance	 	 	Revised Guidance	 	 	2021	 
	 	 	2021	 	 	Q3 2021	 	 	Actual	 
	GEOs	 	 	83,000
                                            – 87,000	 	 	 	80,000
                                            – 83,000	 	 	 	83,602	 
	Depletion ($ thousands)	 	 	53,000
                                            – 57,000	 	 	 	52,000
                                            – 54,000	 	 	 	53,672	 

 

Our outlook
on stream and royalty interests is based on publicly available forecasts of the owners or operators of properties on which we have stream
and royalty interests. When publicly available forecasts on properties are not available, we obtain internal forecasts from the owners
or operators, or use our own best estimate. We conduct our own independent analysis of this information to reflect our expectations based
on an operator’s historical performance and track record of replenishing Mineral Reserves and the operator’s publicly disclosed
guidance on future production, the conversion of Mineral Resources to Mineral Reserves, timing risk adjustments, drill results, our view
on opportunities for mine plan optimization and other factors. We may also make allowances for the risk of uneven stream deliveries to
factor in the potential for timing differences risking the attainment of public guidance ranges.

 

    9

     

    

 

Sustainability Initiatives

 

We believe
strong sustainable performance is critical to the long-term success of our organization, the mining industry and host communities. Investing
in the pursuit of sensible best practices is simply good business for a long-term-focused organization, where we can help enhance the
privilege to operate of our mining partners and assist their efforts for decarbonization as a capital provider, while sustaining the
carbon neutral status of the ounces associated with our investing activities for our investors. We believe that strong Environmental,
Social and Governance (“ESG”) performance helps ensure that the mines and projects we invest in are developed and
operated responsibly to protect worker health, safety and the environment; social impacts are identified, managed and mitigated; human
rights are respected; and benefits accrue to local communities and a broad range of stakeholders.

 

Our ESG approach is two-pronged:

 

		1.	We
                                            promote portfolio quality by investing in streams and royalties on mines and projects where
                                            our due diligence determines that our counterparties demonstrate strong ESG management and
                                            performance. Strong ESG performance by our partners helps ensure our investments enjoy the
                                            privilege to operate with their host communities and governments over the long term, which
                                            protects our business and shareholders.

		2.	We
                                            contribute to a responsible and sustainable mining ecosystem through our own practices, actions
                                            and community investments, and by exerting influence across our portfolio and the broader
                                            mining ecosystem. We aim to lead by example and to share our experience and networks to support
                                            sustainable mining.

 

We support
decarbonization and the transition to a low- carbon economy and are committed to maintaining carbon-neutral operations by purchasing
carbon offsets to offset our carbon footprint. We have achieved carbon neutrality since our inception in 2016 by offsetting our annual
carbon footprint through the purchase of accredited, third-party carbon offsetting projects. On this basis, we have purchased verified
carbon offsets for each year between 2016 and 2020. We define our carbon footprint broadly as consisting of not only the greenhouse gas
emissions associated with our direct business activities, but also including our share of the emissions associated with production of
our attributable metals production by our counterparties, to the point of saleable metals. We determine such emissions under Scope 1,
2 and 3 (defined as categories 6, 7 and 15 of the GHG Protocol of the World Business Council for Sustainable Development). Such third-party
emissions are calculated annually based on disclosure by the owners or operators of mines in which we have stream and royalty interests
and third-party data provided by Skarn Associates, a metals and mining ESG research company. Our objective is to achieve a consistent,
verifiable and science-based approach to the quantification of our carbon footprint relating to our direct corporate activities and to
our streaming and royalty interests.

 

We do not
invest in oil and gas or coal, and we prioritize our non-core, non-precious metal activities in green metals like copper, nickel and
related metals that will create the electrification infrastructure needed for the green economy of our future. Although we do not operate
any mining assets, we believe we can make a positive impact as capital providers to the sector by investing in streams and royalties
on mines and projects where ESG is prioritized and managed conscientiously by our counterparties. Our investment in a due diligence process
includes an extensive assessment of our counterparties’ governance, environmental, health and safety management practices and local
stakeholder engagement and social performance.

 

When conducting
due diligence, we engage with experienced ESG practitioners that complement our considerable team experience and capabilities in this
area, who understand and can apply sound judgment about the potential materiality of short- and long-term risks so that we can avoid
investing in projects that adversely impact the environment and local stakeholders. For example, we do not invest in any opportunities
that involve riverine tailings disposal, child labour or forced labour as our strictest decision-making criteria, but there are many
situations where we have and will continue to decline to bid in processes where our due diligence identifies unacceptable levels of risk,
particularly in the areas of tailings storage, corrupt business practices, labour and community relations.

 

Post-acquisition,
we work collaboratively with counterparties to monitor ESG performance and engage in constructive dialogue on a range of ESG aspects
to evaluate how they are being managed, opportunities for improvement and whether new or evolving ESG issues have arisen.

 

    10

     

    

 

In South
Africa, Royal Bafokeng Platinum (“ RBPlat”) is the first community-owned company to be listed on the Johannesburg
Stock Exchange. RBPlat’s stated objectives include leaving a legacy of economic value that is aligned to the Royal Bafokeng Nation
30-year Master Plan. This aims to create an environment in which people can live with dignity, and have access to health, education and
recreation facilities and employment opportunities that will allow them to maximize their abilities and talents. Concurrent with execution
of the RBPlat stream agreement, we complemented RBPlat’s bursary programs by establishing an annual scholarship program, allocating
$100,000 each year to fully support the education of 8 post-secondary students across the varied geology and engineering disciplines
from communities adjacent to the RBPlat operations. Over the life of the program, we expect the total number of students supported will
exceed 50. This will, in many cases, also provide them with the opportunity for employment at the mine site during school breaks and
upon completion of their program. In the 2020 inaugural year, we supported 6 students through their academic studies. Of the 4 students
that graduated at the end of the academic year, 2 have accepted positions with RBPlat at the Styldrift mine. In 2021, we supported 9
students through their academic studies, 1 has recently graduated and the remaining 8 will continue their studies in 2022 in addition
to a further intake of 5 new students.

 

In
Australia, in connection with the execution of the Northparkes gold and silver stream agreement, we committed to provide community investments
around the Northparkes mine. We reached an agreement with Northparkes to invest A$50,000 annually for scholarships (4
each year starting in 2021), community initiatives, and recreational sports programs in the communities surrounding the mine. These investments
are aligned with priorities identified by the communities and are awarded following an application and selection process led by a panel
of community and company representatives.

 

With the
COVID-19 pandemic altering the landscape for much of 2020, we sought out other opportunities to affect positive change not only for our
employees, but also for our local communities and those communities around our mining partners specifically in South Africa and Australia.
Here are some examples of the opportunities we participated in:

 

	·	Connecting
                                            portfolio company participants to share best practices early on and throughout the pandemic;
	 	 

		·	Proactively
                                            assessing, monitoring and supplementing our own team’s health and wellbeing programs
                                            and offerings; offering access for all employees to high-quality health services, ongoing
                                            employment engagement initiatives, introducing a new employee assistance program (“EAP”)
                                            and providing easy access to all the tools, equipment, furnishings and services to comfortably
                                            work remotely for the duration;

 

		·	Providing
                                            support, along with our employees and Board members, to local charities;

 

	·	Providing
                                            $200,000 of additional funding to RBPlat to create a remote learning initiative in rural
                                            communities in South Africa, benefitting over 700 students and teachers, providing the infrastructure,
                                            tools, equipment and ongoing support to continue learning safely during the pandemic. We
                                            believe that this is a robust and thorough program that will outlast the pandemic;
	 	 

		·	Donating
                                            and participating in a leadership capacity to the Children’s Make-A-Wish Canada Trees
                                            of Joy Event; and

 

		·	Providing
                                            A$2,500 to purchase coffee vouchers from local businesses for distribution to front-line
                                            workers in the Parkes and Forbes Shires surrounding the Northparkes mine and more than doubling
                                            our community investment initiative grant to A$22,000 to support the purchase of 4 portable
                                            grandstands, two for each of Parkes and Forbes Shires, making community events accessible.

 

To commemorate
the new National Day for Truth and Reconciliation in Canada (September 30) instituted to honour the children, survivors, families and
communities affected by residential schools, we partnered with Stornoway Diamond Corporation’s (“Stornoway”)
Renard mine in Northern Quebec to announce a new scholarship program for students at the local Voyageur Memorial School of Mistissini
(a high school). Five scholarships will be awarded at the end of the school year to students who have particularly distinguished themselves.
To further mark the day, our employees also participated in packing 75 back packs full of school supplies that were distributed at the
elementary school adjacent to the mine property.

 

We are
highly committed to diversity, inclusion and high ethical standards. We believe that having a diverse Board of Directors and management
team offers a breadth and depth of perspectives that enhances the Company’s performance. We value diversity of abilities, experience,
perspective, education, gender, background, race and national origin. On our Board, 29% identify as female, including both the Chair
of the Board and the Chair of the Audit Committee. Of our executive officers, 29% identify as members of under-represented social groups,
and 29% identify as female, while 46% of our total workforce identify as members of under-represented social groups.

 

    11

     

    

 

We are
an active member of the United Nations Global Compact (“ UNGC”). In continuing to seek to strengthen our ESG networks
and stakeholder engagement practices, we are reviewing a number of international ESG initiatives, leadership organizations and industry
associations to see where we can best contribute and derive value through meaningful engagement. Our diverse portfolio, active portfolio
management, long-term financial leverage philosophy to our balance sheet and our robust investment due diligence processes are also critical
elements of our risk management approach.

 

We published
our inaugural ‘Sustainability Report’ in September 2021 and will continue to report on an annual basis going forward. The
Sustainability Report also satisfies our annual obligation to report on our Communication on Progress (CoP) for continued engagement
and our commitment to the UNGC.

 

Portfolio
of Streaming and Royalty Interests

 

The following
tables present our revenue and GEOs sold by asset for the periods indicated. GEOs are based on stream and royalty interests and are calculated
on a quarterly basis by dividing all revenue from such interests for the quarter by the average gold price during that quarter. The gold
price is determined based on the LBMA PM fix. For periods longer than one quarter, GEOs are summed for each quarter in the period.

 

Three months and year ended
December 31, 2021 compared to three months and year ended December 31, 2020

 

	 	 	Three months
    ended December 31	 	 	Year ended
    December 31	 
	Revenue ($000s)	 	2021	 	 	2020	 	 	2021	 	 	2020	 
	Streaming Interests	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cerro Lindo	 	$	11,419	 	 	$	9,788	 	 	$	55,140	 	 	$	35,235	 
	Northparkes	 	 	6,772	 	 	 	9,096	 	 	 	26,797	 	 	 	11,675	 
	RBPlat	 	 	3,417	 	 	 	3,974	 	 	 	14,564	 	 	 	10,711	 
	Buriticá	 	 	2,159	 	 	 	4,783	 	 	 	7,922	 	 	 	4,783	 
	Renard	 	 	2,283	 	 	 	811	 	 	 	6,903	 	 	 	2,700	 
	ATO	 	 	1,755	 	 	 	3,770	 	 	 	6,096	 	 	 	14,636	 
	Pumpkin Hollow	 	 	244	 	 	 	541	 	 	 	1,143	 	 	 	835	 
	Gunnison	 	 	239	 	 	 	-	 	 	 	706	 	 	 	-	 
	 	 	$	28,288	 	 	$	32,763	 	 	$	119,271	 	 	$	80,575	 
	Royalty Interests	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fosterville	 	$	5,838	 	 	$	5,993	 	 	$	18,570	 	 	$	21,764	 
	Young-Davidson	 	 	1,206	 	 	 	1,207	 	 	 	5,067	 	 	 	3,758	 
	Dargues	 	 	642	 	 	 	787	 	 	 	3,121	 	 	 	1,874	 
	Henty	 	 	340	 	 	 	565	 	 	 	1,881	 	 	 	2,127	 
	Stawell	 	 	291	 	 	 	272	 	 	 	956	 	 	 	842	 
	Eagle River	 	 	209	 	 	 	196	 	 	 	810	 	 	 	805	 
	Hemlo	 	 	176	 	 	 	216	 	 	 	745	 	 	 	843	 
	 	 	$	8,702	 	 	$	9,236	 	 	$	31,150	 	 	$	32,013	 
	Total	 	$	36,990	 	 	$	41,999	 	 	$	150,421	 	 	$	112,588	 

 

	 	 	Three months
    ended December 31	 	 	Year ended
    December 31	 
	Revenue ($000s)	 	2021	 	 	2020	 	 	2021	 	 	2020	 
	Gold	 	$	19,054	 	 	$	26,932	 	 	$	74,035	 	 	$	69,452	 
	Silver	 	 	15,414	 	 	 	14,256	 	 	 	68,777	 	 	 	40,436	 
	Other	 	 	2,522	 	 	 	811	 	 	 	7,609	 	 	 	2,700	 
	Total	 	$	36,990	 	 	$	41,999	 	 	$	150,421	 	 	$	112,588	 

 

    12

     

    

 

	 	 	Three months
    ended December 31	 	 	Year ended
    December 31	 
	GEOs (ounces)	 	2021	 	 	2020	 	 	2021	 	 	2020	 
	Streaming Interests	 	 		 	 	 		 	 	 		 	 	 		 
	Cerro Lindo	 	 	6,361	 	 	 	5,222	 	 	 	30,651	 	 	 	20,174	 
	Northparkes	 	 	3,772	 	 	 	4,853	 	 	 	14,886	 	 	 	6,204	 
	RBPlat	 	 	1,903	 	 	 	2,120	 	 	 	8,096	 	 	 	6,022	 
	Buriticá	 	 	1,203	 	 	 	2,552	 	 	 	4,403	 	 	 	2,552	 
	Renard	 	 	1,272	 	 	 	433	 	 	 	3,838	 	 	 	1,564	 
	ATO	 	 	977	 	 	 	2,011	 	 	 	3,380	 	 	 	8,033	 
	Pumpkin Hollow	 	 	136	 	 	 	288	 	 	 	635	 	 	 	462	 
	Gunnison	 	 	133	 	 	 	-	 	 	 	392	 	 	 	-	 
	 	 	 	15,757	 	 	 	17,479	 	 	 	66,282	 	 	 	45,011	 
	Royalty Interests	 	 		 	 	 		 	 	 		 	 	 		 
	Fosterville	 	 	3,253	 	 	 	3,198	 	 	 	10,327	 	 	 	12,278	 
	Young-Davidson	 	 	672	 	 	 	645	 	 	 	2,817	 	 	 	2,132	 
	Dargues	 	 	358	 	 	 	420	 	 	 	1,735	 	 	 	1,031	 
	Henty	 	 	190	 	 	 	301	 	 	 	1,046	 	 	 	1,202	 
	Stawell	 	 	162	 	 	 	146	 	 	 	531	 	 	 	473	 
	Eagle River	 	 	115	 	 	 	105	 	 	 	450	 	 	 	456	 
	Hemlo	 	 	98	 	 	 	115	 	 	 	414	 	 	 	476	 
	 	 	 	4,848	 	 	 	4,930	 	 	 	17,320	 	 	 	18,048	 
	Total	 	 	20,605	 	 	 	22,409	 	 	 	83,602	 	 	 	63,059	 

  

	 	 	Three months ended December 31	 	 	Year ended December 31	 
	GEOs (ounces)	 	2021	 	 	2020	 	 	2021	 	 	2020	 
	Gold	 	 	10,614	 	 	 	14,370	 	 	 	41,143	 	 	 	38,548	 
	Silver	 	 	8,586	 	 	 	7,606	 	 	 	38,229	 	 	 	22,947	 
	Other	 	 	1,405	 	 	 	433	 	 	 	4,230	 	 	 	1,564	 
	Total	 	 	20,605	 	 	 	22,409	 	 	 	83,602	 	 	 	63,059	 

 

For the
three months ended December 31, 2021, GEOs sold was 20,605 ounces, a decrease of 8% from 22,409 ounces sold for the same period in the
prior year. The decrease was largely due to lower GEOs from the ATO gold and silver stream due to lower deliveries, lower GEOs from Buriticá
due to lower deliveries and lower GEOs from Northparkes due to timing of sales. This was partially offset by higher GEOs from the Cerro
Lindo silver stream and the Renard diamond stream due to higher deliveries.

 

For the
year ended December 31, 2021, GEOs sold was 83,602 ounces, a yearly record, which exceeds our full-year 2021 revised guidance issued
in October 2021 and was an increase of 33% from the previous record of 63,059 ounces sold in the prior year. Record GEOs were due to
higher GEOs from Cerro Lindo and RBPlat due to higher deliveries, higher GEOs from full-year contributions from the Northparkes and Buriticá
streams, both of which began deliveries in the latter half of 2020, as well as higher GEOs from the Renard stream, which was impacted
by a shutdown as a result of COVID-19 during part of the prior year. This was partially offset by lower GEOs from the ATO gold and silver
stream due to lower deliveries and lower GEOs from the Fosterville royalty due to lower production.

 

    13

     

    

 

Key
Developments

 

Since December 31, 2021

 

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 (the “Beaufor Royalty”) for C$6.75 million. 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$4.5 million in consideration for increasing the royalty rate to 2.75% and eliminating the step-down.

 

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 $4.5 million. The Company acquired
its royalty on the Tamarack project for $5 million in March 2019. The transaction will be recorded during the first quarter of 2022.

 

On December
3, 2021, we acquired 5 million common shares of Talon Metals (“Talon Shares”) for C$413,000 pursuant to exercising
our 5 million common share purchase warrants (the “Talon Warrants”). Subsequent to year-end, we sold 5 million Talon
Shares for C$3.7 million. The disposition will be recorded during the first quarter of 2022.

 

For the year ended December
31, 2021

 

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 our financial statements.

 

Acquisition of Chilean Royalty
Portfolio

 

On December
21, 2021, we 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 $4.9
million. 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 million
for the Aster 2 royalty and $4 million for each of the Aster 3 and Helada royalties.

 

Automatic Share Purchase
Plan

 

In December
2021, we established 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 our common shares under the
NCIB program at times when we would ordinarily not be permitted to purchase our 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 Toronto
Stock Exchange (“TSX”), applicable securities laws and the terms of the ASPP.

 

    14

     

    

 

Normal Course Issuer Bid

 

In October
2021, we 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 for $1.7 million.

 

Dividend Reinvestment Plan

 

In October
2021, we announced that we 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 in November 2021.

 

Initial Public Offering

 

We closed
our initial public offering (“IPO”) on May 26, 2021. We 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 $245.1 million.

 

IAMGOLD Royalty Portfolio
Purchase

 

On January
12, 2021, we 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, we entered into an amendment agreement with IAMGOLD,
pursuant to which we agreed to acquire a royalty portfolio consisting of 34 royalties on various exploration and development properties
for an aggregate acquisition price of $45.7 million. The acquisition of 33 royalties for $35.7 million 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 thousand were capitalized at the acquisition date.

 

For the year ended December
31, 2020

 

Buriticá Gold Stream
Buyback

 

On
September 22, 2020, we 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, we received a cash payment of $78.0 million, calculated
as $80 million less adjustments based on gold ounces delivered to us during the fourth quarter of 2020 and recorded a gain of $30.9 million
on disposition of the Buriticá gold stream. The Buriticá silver stream remains unaffected and is not subject to any reduction.

 

Credit Facility Amendment

 

On September
21, 2020, we increased the existing four-year Credit Facility from $400 million to $500 million, with an additional uncommitted accordion
of $100 million, for a total availability of up to $600 million. 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. For more information on the Credit Facility, see ‘‘Liquidity and Capital Resources
 — Credit Facility’’ below.

 

    15

     

    

 

 

Northparkes Gold and Silver Stream

 

On July 10, 2020, we entered into an agreement
with China Molybdenum Co., Ltd. (“CMOC”) and certain of its subsidiaries, 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, we paid an upfront cash advance amount
of $550 million to a subsidiary of 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 us, and 27% of payable gold production thereafter. In addition, we 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 us, 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 million 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.

 

Nevada Copper Amendment

 

On March 27, 2020, we entered into an agreement
with Nevada Copper consisting of several components totaling $35 million in near-term funding and a contingent payment of $5 million.
The first component was a stream amendment whereby Triple Flag International Ltd. (“TF International”) agreed to advance
an additional deposit of $15 million to Nevada Copper, bringing the total amount of funding for the Pumpkin Hollow underground stream
to $85 million. As consideration for the additional advance of $15 million, 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 us on delivery of gold and silver from 10% to 5% of
the relevant spot price. The first $10 million was funded on May 1, 2020 and the balance is being funded through re-investment of 50%
of the first $10 million of 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 as a mineral interest.

 

The second component of the agreement was the
purchase of a 0.7% NSR royalty on the open pit portion of the Pumpkin Hollow copper project for $17 million, which was paid on March
27, 2020. The third component of the agreement was the purchase of a 2% NSR royalty on the Tedeboy Area for $3 million and a contingent
payment of $5 million. The $3 million was paid on March 27, 2020 and the remaining contingent payment of $5 million 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.

 

RBPlat Gold Stream

 

On October 13, 2019, we entered into an agreement
with RBPlat, a company headquartered in South Africa and listed on the JSE, 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 the RBPlat PGM Operations in exchange for an upfront cash advance amount of $145 million and ongoing payments of 5% of spot gold price
for each ounce of gold delivered under the agreement. Under the terms of the agreement, we will receive 70% of the payable gold until
261,000 ounces are delivered, and 42% of 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%, we 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 thousand. The transaction
closed on January 23, 2020.

 

    16

     

    

 

Stornoway Working Capital Facility

 

On March 24, 2020, Stornoway suspended operations
following the order by the Quebec Government public health authorities as a measure to combat the COVID-19 pandemic. Renard remained
on care and maintenance following the lifting of this Government order effective April 15, 2020. 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 million (up to C$3.75 million for Triple Flag) in a senior secured working capital
facility, resulting in our attributable portion of the working capital facility increasing from C$2.6 million to C$6.35 million, of which
C$0.78 million (net of repayments of C$1.43 million) has been advanced as of December 31, 2021.

 

Operating Assets – Performance

 

Our business is organized into a single operating
segment, consisting of acquiring and managing precious metals and other high-quality streams and royalties. Our chief operating decision-maker,
the CEO, makes capital allocation decisions, reviews operating results and assesses performance.

 

Asset Performance — Streams (producing)

 

1.      Cerro
Lindo (Operator: Nexa Resources)

 

Under the stream agreement with Nexa, we receive
65% of payable silver produced from the Cerro Lindo mine until 19.5 million ounces have been delivered and 25% thereafter. At December
31, 2021, 10.1 million ounces of silver had been delivered under the stream agreement with Nexa since inception.

 

Under the stream agreement, Nexa delivered 523,465
ounces of silver for the three months ended December 31, 2021, a 33% increase from the same period in the prior year. We sold 489,271
ounces of silver received from the Cerro Lindo stream for the three months ended December 31, 2021, a 24% increase from the same period
in the prior year, driven by higher deliveries during the period. GEOs sold were 6,361 for the three months ended December 31, 2021,
compared to 5,222 for the same period in the prior year, largely driven by increased deliveries which were sold during the period.

 

For the year ended December 31, 2021, Nexa delivered
2,257,666 ounces of silver, a 38% increase from the prior year as COVID-19 disruptions to production impacted deliveries in the prior
year. We sold 2,223,472 ounces of silver received from the Cerro Lindo stream for the year ended December 31, 2021, a 26% increase from
the prior year. GEOs sold were 30,651 for the year ended December 31, 2021, compared to 20,174 for the prior year driven by increased
sales and a lower ratio of gold prices to silver prices.

 

2.      RBPlat
PGM Operations (Operator: RBPlat)

 

Under the stream agreement with RBPlat, we receive
70% of the payable gold until 261,000 ounces are delivered, and 42% of payable gold thereafter on the RBPlat PGM Operations. RBPlat made
its first deliveries to us in January 2020. At December 31, 2021, 14,174 ounces of gold had been delivered under the stream agreement
with RBPlat since inception. For the three months ended December 31, 2021, we sold the 1,919 ounces of gold delivered by RBPlat under
the stream agreement, a 9% decrease from the ounces delivered and sold for the same period in the prior year. The decrease in metal sales
was driven by lower deliveries. GEOs sold were 1,903 for the three months ended December 31, compared to 2,120 for the same period in
the prior year.

 

For the year ended December 31, 2021, we sold
the 8,093 ounces of gold delivered by RBPlat under the stream agreement, a 33% increase from the ounces delivered and sold in the prior
year. The increase in metal sales was driven by higher deliveries. GEOs sold were 8,096 for the year ended December 31, 2021, compared
to 6,022 for the prior year.

 

    17

     

    

 

3.       ATO
(Operator: Steppe Gold Limited)

 

Under the stream agreement with Steppe Gold,
we receive 25% of the payable gold until 46,000 ounces of gold have been delivered and thereafter 25% of payable gold subject to an annual
cap of 7,125 ounces, and 50% of the payable silver until 375,000 ounces of silver have been delivered and thereafter 50% of payable silver
subject to an annual cap of 59,315 ounces produced from the ATO mine in Mongolia. ATO commenced gold production at the end of March 2020
and made its first deliveries to us in May 2020. At December 31, 2021, 11,133 ounces of gold and 18,102 ounces of silver had been delivered
under the stream agreement with Steppe Gold since inception.

 

For the three months ended December 31, 2021,
we sold the 843 ounces of gold and 10,372 ounces of silver delivered to the company, a 57% decrease and 505% increase from the same period
in the prior year, respectively. GEOs sold were 977 for the three months ended December 31, 2021, compared to 2,011 for the same period
in the prior year.

 

For the year ended December 31, 2021, we sold
the 3,199 ounces of gold and 11,247 ounces of silver delivered by Steppe Gold during the year, a 60% decrease and 64% increase from the
prior year, respectively. GEOs sold were 3,380 for the year ended December 31, 2021, compared to 8,033 for the prior year.

 

Production at ATO was impacted by COVID-19-related
reagent supply disruptions during the three months and year ended December 31, 2021.

 

4.       Northparkes
(Operator: CMOC)

 

Under the stream agreement with CMOC, we receive
54% of the payable gold until an aggregate of 630,000 ounces have been delivered, and thereafter 27% of payable gold, and 80% of the
payable silver produced until an aggregate of 9 million ounces of silver have been delivered to us, and 40% of the silver thereafter
for the remainder of the life of the mine. CMOC made its first delivery in September 2020. At December 31, 2021, 18,224 ounces of gold
and 303,237 ounces of silver had been delivered under the stream agreement with CMOC since inception.

 

For the three months ended December 31, 2021,
CMOC delivered 4,110 ounces of gold and 68,212 ounces of silver to the Company. We sold 2,922 ounces of gold and 68,212 ounces of silver
received from CMOC for the three months ended December 31, 2021. This compares to 3,922 ounces of gold and 68,262 ounces of silver delivered
and sold in the same period in the prior year. GEOs sold were 3,772 for the three months ended December 31, 2021 as compared to 4,853
for the same period in the prior year.

 

For the year ended December 31, 2021, CMOC delivered
13,247 ounces of gold and 210,503 ounces of silver to the Company compared to 4,977 ounces of gold and 92,734 ounces of silver for the
prior year. We sold 12,059 ounces of gold and 210,503 ounces of silver for the year ended December 31, 2021, compared to 4,977 ounces
of gold and 92,734 ounces of silver in the prior year. The increase reflects the full-year impact of metal deliveries from Northparkes
in 2021 as compared to the prior year, which reflected six months of deliveries. GEOs sold were 14,886 for the year ended December 31,
2021 compared to 6,204 for the prior year.

 

5.      Buriticá (Operator:
Zijin Mining)

 

In March 2019, we acquired a gold and silver
stream on the Buriticá project for an aggregate price of $100 million. On March 4, 2020, Continental Gold (the original operator
of the Buriticá project) was acquired by Zijin Mining.

 

Under the stream agreement, we were to receive
2.1% of payable gold and 100% of payable silver based on a fixed silver-to-gold ratio of 1.84 over the life of the asset. On September
22, 2020, the Company received an irrevocable notice from the operator, Zijin Mining, to exercise the buyback option it had on the gold
stream. On December 29, 2020, the Company received a cash payment of $78.0 million, calculated as $80 million less adjustments based
on gold ounces delivered to the Company during the fourth quarter of 2020 and recorded a gain of $30.9 million on disposition of the
gold stream. The Buriticá silver stream remains unaffected.

 

First doré from Buriticá was produced
from commissioning ore in the second quarter of 2020 and delivered to the Company in October 2020. Buriticá declared commercial
production in December 2020.

 

    18

     

    

 

For the three months ended December 31, 2021,
we sold 93,741 ounces of silver delivered under the agreement, an 8% decrease from the same period in the prior year, driven by lower
production. We sold the 1,169 ounces of gold delivered under the agreement in the same period in the prior year. GEOs sold were 1,203
compared to 2,552 for the same period in the prior year.

 

For the year ended December 31, 2021, we sold
318,939 ounces of silver delivered under the agreement, a 212% increase from the prior year, due to the full-year impact of silver deliveries
as compared to the prior year, which reflected three months of deliveries. GEOs sold were 4,403 compared to 2,552 for the prior year.

 

6.      Pumpkin Hollow (Operator:
Nevada Copper)

 

Under the original terms
of the stream agreement with Nevada Copper, we provided an upfront cash payment of $70 million to Nevada Copper and were to make ongoing
payments of 10% of the spot gold price for each ounce of gold and 10% of the spot silver price for each ounce of silver purchased. Under
the original terms, we were entitled to purchase 90% of streamed gold and silver production determined by certain ratios of payable copper
produced from the underground portion of the Pumpkin Hollow project over its life-of-mine. In March 2020, the stream was amended whereby
total funding for the Pumpkin Hollow stream was increased to $85 million. As consideration for the additional advance of $15 million,
the parties agreed to increase the stream rate for streamed gold and silver to 97.5% from 90% and reduce the ongoing payments due by
us on delivery of gold and silver from 10% to 5% of the relevant spot price.

 

On December 16, 2019, Nevada Copper reported
that it had commenced production at Pumpkin Hollow and it delivered first metal to us under the agreement in March 2020. On April 6,
2020, Nevada Copper announced that it had suspended copper production temporarily at Pumpkin Hollow as a result of COVID-19-related restrictions.
On August 24, 2020, Nevada Copper announced that it had restarted its milling operations at its underground project at Pumpkin Hollow.

 

For the three months ended December 31, 2021,
we sold 107 ounces of gold and 2,063 ounces of silver delivered under the agreement, a 53% decrease in both silver and gold from the
same period in the prior year, driven by lower production. GEOs sold were 136 compared to 288 for the prior year.

 

For the year ended December 31, 2021, we sold
501 ounces of gold and 9,655 ounces of silver delivered under the agreement. This compares to 378 ounces of gold and 7,287 ounces of
silver in the prior year. GEOs sold were 635 for the year ended December 31, 2021, compared to 462 for the prior year.

 

7.      Gunnison (Operator:
Excelsior)

 

Under the stream agreement with Excelsior, we
are entitled to receive a percentage of the refined copper produced from the Gunnison mine over its life of mine ranging 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 mine’s production capacity increases, as well as the option to increase our stream participation percentage by paying
an additional deposit following a positive construction decision with respect to an expansion. On March 26, 2020, Excelsior announced
that it had temporarily suspended construction activities at the Gunnison mine as a result of COVID-19-related restrictions. On August
12, 2020, Excelsior announced re-commencement of injection and recovery activities into a limited number of wells, and on January 28,
2021, Excelsior announced the first sale of copper cathode from the Gunnison mine and began deliveries during the second quarter of 2021.

 

    19

     

    

 

For the three months and year ended December
31, 2021, we sold 54,035 and 163,188 pounds of copper delivered under the agreement, respectively. GEOs sold were 133 and 392 for the
three months and year ended December 31, 2021, respectively.

 

Asset Performance — Royalties (Producing)

 

1.      Fosterville Gold Mine
(Operator: Kirkland Lake Gold)

 

We own a 2% NSR royalty interest in Kirkland
Lake Gold’s Fosterville mine in Australia. On January 17, 2022, Kirkland Lake Gold reported fourth quarter and full-year 2021 production.
For the three months ended December 31, 2021, Fosterville processed 153,124 tonnes of ore, at an average grade of 22.3 g/t Au and average
recovery of 98.6%, resulting in gold production of 108,156 ounces, compared to 164,008 ounces produced in the same period in the prior
year. Lower gold production resulted from lower ore processed and lower average grade. For the year ended December 31, 2021, Fosterville
processed 677,899 tonnes of ore, a 14% increase from the prior year, resulting in gold production of 509,601 ounces, compared to 640,467
ounces in the prior year. Lower gold production resulted from lower average grade, partially offset by the increase in tonnes processed.

 

GEOs earned were 3,253 and 10,327 for the three
months and year ended December 31, 2021, respectively, compared to 3,198 and 12,278 in the prior year.

 

2.      Young-Davidson Gold
Mine (Operator: Alamos Gold)

 

We own a 1.5% NSR royalty interest in Alamos
Gold’s Young-Davidson mine in Canada. On January 17, 2022, Alamos Gold Inc. (‘‘Alamos Gold’’) reported
fourth quarter production results. For the three months ended December 31, 2021, Young-Davidson processed 7,861 tonnes per day (“tpd”),
at an average grade of 2.47 g/t Au and a recovery of 91%, resulting in gold production of 51,900 ounces, an 8% increase from the same
period in the prior year. For the year ended December 31, 2021, Young-Davidson processed 7,899 tpd, at an average grade of 2.31 g/t Au
and a recovery of 91%, resulting in gold production of 195,000 ounces, a 43% increase from the prior year.

 

GEOs earned for the three months and year ended
December 31, 2021 were 672 and 2,817, respectively, compared to 645 and 2,132 for the prior year.

 

Development Stage Assets

 

Kemess Project (Operator: Centerra Gold Inc.)

 

In May 2018, we entered into a silver purchase
and sale agreement for a 100% silver stream, subject to a fixed ratio floor of 5.5755 ounces of silver for each 1,000 pounds of payable
copper produced from the Kemess underground area, subject to fixed payable metal percentages for copper and silver, in exchange for an
initial upfront deposit of $45 million, payable in stages, following the public announcement of a construction decision, plus a payment
equal to 10% of the average five-day silver market price for each ounce of silver purchased.

 

The Kemess project is a brownfield project located
in British Columbia approximately 430 kilometres northwest of Prince George. The project is 100% owned by Centerra and includes the Kemess
underground deposit, the Kemess East deposit, and the existing infrastructure of the former Kemess South mine. Currently, the Kemess
site is in care and maintenance with on-site activities focused on surface preparation work for future construction activities should
Centerra decide to proceed with development. The public announcement of the construction decision will trigger our funding obligation
and commencement of payments, as outlined in the “Contractual Obligations and Commitments” section of this MD&A.

 

    20

     

    

 

Portfolio of Investments

 

Our assets include a portfolio of shares and
warrants of publicly-traded companies. We rarely, but occasionally, invest in companies as part of our acquisition of a stream, royalty
or other similar interest. These investments are reflected within current assets on the consolidated financial statements. We may, from
time to time, and without further notice except as required by law, increase or decrease our investments at our discretion.

 

The following table includes our investments as of December 31, 2021:

 

	 	 	Number of shares	 	 	Number of	 	 	Original Cost	 	 	Fair Value	 
	Company	 	held	 	 	warrants
    held	 	 	($ thousands)	 	 	($ thousands)	 
	Excelsior
    Mining Corp.1	 	 	13,818,977	 	 	 	3,500,000	 	 	 	10,000	 	 	 	4,571	 
	GoldSpot
    Discoveries Corp.2	 	 	6,444,786	 	 	 	-	 	 	 	1,953	 	 	 	4,711	 
	Talon
    Metals Corp.3	 	 	5,000,000	 	 	 	-	 	 	 	322	 	 	 	2,397	 
	Nevada
    Copper Corp.4	 	 	2,500,000	 	 	 	1,500,000	 	 	 	10,033	 	 	 	1,389	 
	Steppe
    Gold Ltd.5	 	 	580,000	 	 	 	4,380,000	 	 	 	895	 	 	 	604	 

 

	1.	Pursuant
                                            to an amending agreement dated December 22, 2021, the exercise price of the Excelsior Warrants
                                            was amended from C$1.50 to C$0.54. The Excelsior Warrants were out of the money at December
                                            31, 2021.

	2.	During
                                            2021, the Company sold 803,900 common shares at an average sale price of C$1.05 per share.

	3.	On
                                            December 3, 2021, we acquired 5,000,000 Talon Shares for C$413,000, subsequent to exercising
                                            the Talon Warrants. Subsequent to year-end, we sold 5,000,000 Talon Shares for C$3.7 million.
                                            The disposition will be recorded during the first quarter of 2022.

	4.	On
                                            September 3, 2021, Nevada Copper Corp. announced implementation of a 10:1 consolidation of
                                            outstanding common shares. Pursuant to the share consolidation, common share purchase warrants
                                            are exercisable to acquire one common share of Nevada Copper at a purchase price of C$2.25
                                            per common share and expire on March 27, 2025 (the “Nevada Copper Warrants”).
                                            The Nevada Copper Warrants were out of the money at September 30, 2021.

	5.	Includes
                                            2,080,000 common share purchase warrants, each of which is exercisable to acquire one common
                                            share of Steppe Gold at a purchase price equal to the initial public offering price, expiring
                                            May 22, 2023 (the “Steppe Warrants”). Also includes 2,300,000 unit purchase warrants,
                                            each of which is exercisable to acquire: (i) one common share of Steppe Gold and (ii) one
                                            warrant exercisable to acquire one common share of Steppe Gold for a purchase price of C$2.00
                                            per unit, expiring September 15, 2022 (the “Steppe Unit Warrants”). On March
                                            4, 2021 the Company sold 1,500,000 common shares at an average sale price of C$2.3501 per
                                            share.

 

The following table includes our investments as of December 31, 2020:

 

	 	 	Number of shares	 	 	Number of	 	 	Original Cost	 	 	Fair Value	 
	Company	 	held	 	 	warrants
    held	 	 	($ thousands)	 	 	($ thousands)	 
	Excelsior
    Mining Corp.1	 	 	13,818,977	 	 	 	3,500,000	 	 	 	10,000	 	 	 	12,582	 
	Nevada
    Copper Corp.2	 	 	2,500,000	 	 	 	1,500,000	 	 	 	10,033	 	 	 	3,006	 
	Steppe
    Gold Ltd.3	 	 	2,080,000	 	 	 	4,380,000	 	 	 	3,209	 	 	 	8,033	 
	GoldSpot Discoveries Corp.	 	 	7,248,686	 	 	 	-	 	 	 	2,196	 	 	 	2,276	 
	Talon
    Metals Corp.4	 	 	-	 	 	 	5,000,000	 	 	 	-	 	 	 	1,680	 

 

	1.	Includes
                                            the Excelsior Warrants; out of the money at December 31, 2020.

	2.	Includes
                                            the Nevada Copper Warrants; out of the money at December 31, 2020. These have been updated
                                            to reflect the impact of the 10:1 share consolidation announced on September 3, 2021.

	3.	Includes
                                            2,080,000 Steppe Warrants. Also includes 2,300,000 Steppe Unit Warrants.

	4.	Includes
                                            the Talon Warrants.

 

    21

     

    

 

Financial Condition Review

 

Summary Balance Sheet

 

The following table presents summarized consolidated balance
sheet information as at December 31, 2021 and 2020:

 

	 	 	As at	 	 	As at	 	 	As at	 
	($ thousands)	 	December
    31, 2021	 	 	December
    31, 2020	 	 	December
    31, 2019	 
	Cash and cash equivalents	 	$	40,672	 	 	$	20,637	 	 	$	10,768	 
	Other current assets	 	 	31,756	 	 	 	37,935	 	 	 	33,848	 
	Non-current assets	 	 	1,230,981	 	 	 	1,242,347	 	 	 	613,342	 
	Total assets	 	$	1,303,409	 	 	$	1,300,919	 	 	$	657,958	 
	Current liabilities	 	$	5,334	 	 	$	4,119	 	 	$	3,801	 
	Long-term debt	 	 	-	 	 	 	275,000	 	 	 	57,000	 
	Other non-current liabilities	 	 	3,453	 	 	 	2,857	 	 	 	3,536	 
	Total liabilities	 	 	8,787	 	 	 	281,976	 	 	 	64,337	 
	Total shareholders’ equity	 	 	1,294,622	 	 	 	1,018,943	 	 	 	593,621	 
	Total liabilities and equity	 	$	1,303,409	 	 	$	1,300,919	 	 	$	657,958	 

 

Total assets were $1,303.4 million as
at December 31, 2021, compared to $1,300.9 million as at December 31, 2020. Our asset base primarily consists of non-current assets such
as mineral interests, which consist of our interests in streams and royalties. Our asset base also includes other current assets which
generally include receivables, metal inventory and equity interests in various mining companies with which we have a stream or royalty
interest. The nominal increase in total assets from December 31, 2020 was driven by an increase in cash balances from operating cash
flows generated as well as addition of streams and royalties during 2021 as we continued to grow through acquisitions, partially offset
by a decrease in fair value of our equity interests due to a decline in market prices.

 

Total liabilities were $8.8 million as
at December 31, 2021, compared to $282.0 million as at December 31, 2020. Total liabilities consist largely of amounts payable and accrued
liabilities, deferred tax liabilities and lease obligations. The decrease in total liabilities from December 31, 2020 largely reflects
repayment of the Credit Facility from proceeds of the IPO in May 2021 as well as from cash flows generated subsequent to the IPO.

 

Total shareholders’ equity as at
December 31, 2021 was $1,294.6 million, compared to $1,018.9 million as at December 31, 2020. The increase in shareholders’ equity
from 2020 largely included $245.1 million net proceeds from the IPO, as well as income generated during the period net of dividends paid.

 

Shareholders’
Equity

 

	As at December 31, 2021	 	 	Number
    of shares	 
	Common shares	 	 	 	156,036,737	 

 

	As at December
    31, 2020	 	 	 	Number
                                            of shares	 
	Common
    shares	 	 	 	135,903,392	 

 

We closed our IPO on May 26, 2021. We 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. The Company declared and paid its inaugural dividend of $0.0475 per share in the third quarter of 2021 and
in the fourth quarter, the Company declared and paid a dividend of $0.0475 per share.

 

    22

     

    

 

In October 2021, the Company established
an NCIB program. As at December 31, 2021, the Company had purchased 155,978 of its common shares under the NCIB for $1.7 million.

 

As at February 22, 2022, [156,024,365]
common shares are issued and outstanding and stock options are outstanding to purchase a total of 1,517,910 common shares.

 

Comprehensive Income

 

Comprehensive income consists of net
earnings or loss, together with certain other economic gains and losses, which, collectively, are described as ‘‘other comprehensive
income (loss)’’ or ‘‘OCI’’ and excluded from the statement of income (loss). OCI includes realized
and unrealized gains/losses from derivative contracts (interest rate swaps) designated as cash flow hedges. For the three months ended
December 31, 2021, other comprehensive income was nil. For the year ended December 31, 2021, other comprehensive income was $243 thousand
on an after-tax basis, consisting of $25 thousand unrealized gains (after-tax) as well as $218 thousand realized losses (after-tax) from
closing out the interest rate swap contracts designated as cash flow hedges. Realized losses of $218 thousand (after-tax) were reclassified
into income upon closing out the interest rate swap contracts, leaving a balance of nil in accumulated other comprehensive income (“AOCI”)
at December 31, 2021.

 

    23

     

    

 

Condensed Consolidated Statements of Income (Loss)

 

Three months and year ended December 31, 2021 compared to three
months and year ended December 31, 2020

 

The following table presents summarized consolidated
statements of income (loss) information for the three months and year ended December 31, 2021 and 2020:

 

	 	 	Three
months ended	 	 	Year
ended	 
	 	 	December
31	 	 	December
31	 
	($
thousands except share and per share information)	 	2021	 	 	2020	 	 	2021	 	 	2020	 	 	2019	 
	Revenue	 	$	36,990	 	 	$	41,999	 	 	$	150,421	 	 	$	112,588	 	 	$	59,148	 
	Cost of
sales	 	 	16,339	 	 	 	19,276	 	 	 	67,168	 	 	 	62,490	 	 	 	46,954	 
	Gross
profit	 	 	20,651	 	 	 	22,723	 	 	 	83,253	 	 	 	50,098	 	 	 	12,194	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	General
administration costs	 	 	4,178	 	 	 	1,846	 	 	 	12,213	 	 	 	7,394	 	 	 	7,595	 
	IPO
readiness costs	 	 	-	 	 	 	-	 	 	 	670	 	 	 	-	 	 	 	3,416	 
	Sustainability
initiatives	 	 	421	 	 	 	20	 	 	 	855	 	 	 	58	 	 	 	-	 
	Business
development costs	 	 	328	 	 	 	54	 	 	 	771	 	 	 	119	 	 	 	128	 
	Impairment
charges	 	 	-	 	 	 	-	 	 	 	-	 	 	 	7,864	 	 	 	32,142	 
	Operating
income (loss)	 	 	15,724	 	 	 	20,803	 	 	 	68,744	 	 	 	34,663	 	 	 	(31,087	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gain
on disposition of mineral interest	 	 	-	 	 	 	30,926	 	 	 	-	 	 	 	30,926	 	 	 	-	 
	Increase
(decrease) in fair value of investments	 	 	60	 	 	 	6,306	 	 	 	(10,786	)	 	 	6,447	 	 	 	1,939	 
	Finance
costs, net	 	 	(602	)	 	 	(2,737	)	 	 	(5,673	)	 	 	(9,860	)	 	 	(8,378	)
	Loss
on derivatives	 	 	-	 	 	 	-	 	 	 	(297	)	 	 	-	 	 	 	-	 
	Foreign
currency translation (loss)	 	 	(1	)	 	 	(11	)	 	 	(25	)	 	 	(16	)	 	 	(17	)
	Other
(expenses) income	 	 	(543	)	 	 	34,484	 	 	 	(16,781	)	 	 	27,497	 	 	 	(6,456	)
	Earnings
(loss) before income taxes	 	 	15,181	 	 	 	55,287	 	 	 	51,963	 	 	 	62,160	 	 	 	(37,543	)
	Income
tax expense	 	 	(1,800	)	 	 	(1,332	)	 	 	(6,436	)	 	 	(6,595	)	 	 	(3,851	)
	Net
earnings (loss) from continuing operations	 	 	13,381	 	 	 	53,955	 	 	 	45,527	 	 	 	55,565	 	 	 	(41,394	)
	Net
earnings from discontinued operations	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	27,641	 
	Net
earnings (loss)	 	$	13,381	 	 	$	53,955	 	 	$	45,527	 	 	$	55,565	 	 	$	(13,753	)
	Weighted
average shares outstanding	 	 	156,158,978	 	 	 	135,903,392	 	 	 	148,025,464	 	 	 	115,456,471	 	 	 	82,646,413	 
	Earnings
(loss) from continuing operations per share – basic and diluted1	 	$	0.09	 	 	$	0.40	 	 	$	0.31	 	 	$	0.48	 	 	$	(0.50	)
	Earnings
(loss) from discontinued operations per share – basic and diluted1	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	0.33	 
	Earnings
per share – basic and diluted1	 	$	0.09	 	 	$	0.40	 	 	$	0.31	 	 	$	0.48	 	 	$	(0.17	)

 

1We
have no dilutive instruments as at December 31, 2021, 2020 and 2019.

 

Three months ended December 31, 2021 compared to three months ended
December 31, 2020

 

Revenue was $37.0 million, a decrease of 12%
from $42.0 million for the same period in the prior year due to $3.5 million lower revenue due to lower volume from streams and royalties,
$1.1 million lower revenue due to lower gold prices and $1.1 million lower revenue due to lower silver prices, partially offset by $0.7
million higher revenue due to higher diamond prices. Lower revenue from streams and royalties was driven by lower stream deliveries from
the ATO stream due to ongoing COVID-19-related supply chain impacts, lower stream deliveries from the Buriticá gold and silver
streams, largely due to the buyback of the gold stream at the end of December 2020 and lower volume of metal sold from the Northparkes
gold and silver stream due to the timing of metal sales, partially offset by higher sales volume from the Cerro Lindo silver stream and
the Renard diamond stream.

 

    24

     

    

 

Market gold price and gold
sales volume for our streams were $1,795 per ounce and 5,792 ounces, respectively, compared to $1,874 per ounce and 9,412 ounces, respectively,
in the prior year. Market silver price and silver sales volume were $23.33 per ounce and 664 thousand ounces, respectively, compared
to $24.39 per ounce and 572 thousand ounces, respectively, in the prior year. Market gold price and attributable royalty ounces were
$1,795 per ounce and 5,008 ounces, respectively, compared to $1,874 per ounce and 4,986 ounces, respectively, for the same period in
the prior year.

 

Cost of sales primarily represented the price
of metals acquired under the stream agreement as well as the depletion expense for streams and royalties, both of which are calculated
based on units of metal sold or attributable royalty ounces. Cost of sales was $16.3 million (including depletion) from streams and royalties,
compared to $19.3 million (including depletion) from streams and royalties for the same period in the prior year. The decrease in cost
of sales for the three months ended December 31, 2021 was due to cost of sales associated with lower metal deliveries from streams, partially
offset by higher attributable ounces from royalties.

 

Gross profit was $20.7 million, a decrease of
9% from $22.7 million for the same period in the prior year. The decrease was driven by lower gross profit from the ATO and Buriticá
streams due to lower deliveries, lower gross profit from the Northparkes stream due to the timing of metal sales and lower gold and silver
prices, partially offset by higher gross profit from the Cerro Lindo silver stream due to higher stream deliveries and higher gross profit
from the Renard diamond stream due to higher stream deliveries and higher diamond prices.

 

General administration costs were $4.2 million,
compared to $1.8 million for the same period in the prior year. General administration costs for the three months ended December 31,
2021 included employee costs, office, insurance and other expenses, professional services, and amortization of $2.6 million, $1.1 million,
$392 thousand and $100 thousand, respectively, compared to $1.1 million, $324 thousand, $342 thousand and $100 thousand, respectively,
for the same period in the prior year. Higher costs for the three months ended December 31, 2021 were largely due to higher employee
costs driven by share based payments granted to employees and directors upon completion of the IPO and higher office, insurance and other
expenses driven by various public company costs, including directors’ and officers’ liability insurance costs.

 

Business development costs were $328 thousand,
compared to $54 thousand for the same period in the prior year. Business development costs represent ongoing business development costs
incurred throughout the year in connection with the engagement of third-party service providers, net of costs capitalized, and costs
reimbursed from our counterparties.

 

Sustainability initiatives represent costs incurred
to acquire carbon offsets to counter our carbon footprint, which consists of not only the greenhouse gas emissions associated with our
direct business activities, but also includes our share of emissions associated with production of our attributable metals production
by our counterparties, to the point of saleable metals. Sustainability initiatives also includes partial funding of a bursary program
in South Africa, community investments around the Northparkes mine as well as various social initiatives, including donations. For the
three months ended December 31, 2021, expenditures on various sustainability initiatives were $421 thousand, compared to $20 thousand
for the same period in the prior year. The increase was driven by one-time funding of $200 thousand to RBPlat to create a remote learning
initiative in rural communities in South Africa as well as scholarships and other contributions at numerous mine site communities where
we have streams.

 

Movements in fair value of investments were a
$60 thousand increase, compared to $6.3 million increase for the same period in the prior year. This was due to a nominal increase in
market prices of our equity investments in the current period compared to a higher increase in market prices of our equity investments
in the same period in the prior year.

 

Finance costs, net was $ 602 thousand compared
to $2.7 million for the same period in the prior year. The finance costs largely reflect interest charges and standby fees on the Credit
Facility, net of interest earned on cash balances. Lower finance costs were driven by lower interest charges on debt, which was fully
repaid during the third quarter of 2021, partially offset by higher standby charges driven by the lower outstanding debt balance.

 

Gain on disposition of mineral interests in the
prior year of $30.9 million represents a gain in disposition of the Buriticá gold stream.

 

    25

     

    

 

Income tax expense was $1.8 million, compared
to $1.3 million for the same period in the prior year. The increase in income tax expense was driven by higher income tax associated
with our Australian royalties compared to the same period in the prior year.

 

Net earnings was $13.4 million, compared to $54.0
million for the same period in the prior year. Net earnings for the same period in the prior year included $30.9 million gain on disposition
of the Buriticá gold stream. Lower net earnings in 2021 were also driven by lower gross profit across the portfolio, lower mark
to market gains from equity investments, higher general administration costs driven by public company costs, higher business development
costs and expenditures on sustainability initiatives and higher income taxes, partially offset by lower finance costs.

 

Year ended December 31, 2021 compared to year ended December 31,
2020

 

Revenue was $150.4 million, an increase of 34%
from $112.6 million for the prior year due to $12.4 million of revenue from new stream agreements, $13.3 million higher revenue due to
higher volume from existing streams and royalties, $10.6 million higher revenue due to higher silver prices, and $1.7 million higher
revenue due to higher diamond prices. Revenue from new stream agreements was driven by stream deliveries from the Northparkes gold and
silver stream, which was acquired in July 2020. Higher revenue from existing streams and royalties was driven by higher sales volumes
from the Cerro Lindo and RBPlat streams due to higher deliveries, stream deliveries from the Buriticá and Gunnison streams, which
both entered production in December 2020, partially offset by lower stream deliveries from the ATO stream due to ongoing COVID-19-related
supply chain impacts and lower attributable royalty ounces largely driven by lower production at Fosterville.

 

Market gold price and gold sales volume for our
streams were $1,799 per ounce and 23,853 ounces, respectively, compared to $1,770 per ounce and 20,538 ounces, respectively, in the prior
year. Market silver price and silver sales volume were $25.14 per ounce and 2,774 thousand ounces, respectively, compared to $20.55 per
ounce and 1,979 thousand ounces, respectively, in the prior year. Market gold price and attributable royalty ounces were $1,799 per ounce
and 17,584 ounces, respectively, compared to $1,770 per ounce and 18,106 ounces, respectively, in the prior year.

 

Cost of sales primarily represented the price
of metals acquired under the stream agreement as well as the depletion expense for streams and royalties, both of which are calculated
based on units of metal sold or attributable royalty ounces. Cost of sales was $67.2 million (including depletion) from streams and royalties,
compared to $62.5 million (including depletion) from streams and royalties in the prior year. The increase in cost of sales for the year
ended December 31, 2021 was due to cost of sales associated with higher metal deliveries from streams, partially offset by lower cost
of sales from royalties due to lower attributable ounces from royalties, largely at Fosterville.

 

Gross profit was $83.3 million, an increase of
66% from $50.1 million in the prior year. The increase was driven by gross profit of $7.1 million from new stream agreements and higher
gross profit of $26.0 million from existing streams and royalties. Gross profit of $7.1 million from new stream agreements was driven
by the Northparkes stream, which was acquired in July 2020. Higher gross profit of $26.0 million from existing streams and royalties
was due to higher gross profit from the Cerro Lindo silver stream driven by higher silver volume at higher silver prices, stream deliveries
from the Buriticá and Gunnison streams, higher gold sales volume from the RBPlat gold stream at higher gold prices, higher gross
profit from royalties driven by higher gold prices, partially offset by lower sales volume from the ATO stream due to lower deliveries.

 

General administration costs were $12.2 million,
compared to $7.4 million in the prior year. General administration costs for the year ended December 31, 2021 included employee costs,
office, insurance and other expenses, professional services, and amortization of $8.4 million, $2.4 million, $1.1 million and $399 thousand,
respectively, compared to $5.1 million, $772 thousand, $1.1 million and $399 thousand, respectively, in the prior year. Higher costs
for the year ended December 31, 2021 were largely due to higher employee costs driven by share based payments granted to employees and
directors upon completion of the IPO and higher office, insurance and other expenses driven by various public company costs, including
directors’ and officers’ liability insurance costs, partially offset by lower professional service expenses.

 

    26

     

    

 

Sustainability initiatives represent costs incurred
to acquire carbon offsets to counter our carbon footprint, which consists of not only the greenhouse gas emissions associated with our
direct business activities, but also includes our share of emissions associated with production of our attributable metals production
by our counterparties, to the point of saleable metals. Sustainability initiatives also includes partial funding of a bursary program
in South Africa, community investments at Northparkes, as well as various social initiatives, including donations. For the year ended
December 31, 2021, expenditures on sustainability initiatives were $855 thousand, compared to $58 thousand in the prior year. The increase
was driven by expenditures incurred this year to acquire carbon offsets to counter our carbon footprint since inception, one-time funding
of $200 thousand to RBPlat to create a remote learning initiative in rural communities in South Africa as well as scholarships and other
contributions at numerous mine site communities where we have streams.

 

Business development costs were $771 thousand,
compared to $119 thousand in the prior year. Business development costs represent ongoing business development costs incurred throughout
the year in connection with the engagement of third-party service providers, net of costs capitalized, and costs reimbursed from our
counterparties.

 

Movements in fair value of investments were a
$10.8 million decrease, compared to a $6.4 million increase in the prior year. This was due to significant decreases in market prices
of our equity investments.

 

Finance costs, net was $5.7 million compared
to $9.9 million in the prior year. The finance costs largely reflect interest charges and standby fees on the Credit Facility, net of
interest earned on cash balances. Lower finance costs were driven by lower interest charges on debt, which was fully repaid during the
third quarter, partially offset by higher standby charges driven by the lower outstanding debt balance.

 

Gain on disposition of mineral interests in the
prior year of $30.9 million represents gain on disposition of the Buriticá gold stream.

 

Loss on derivatives was $297 thousand compared
to nil in the prior year. Subsequent to the IPO, the Company repaid its Credit Facility and closed out the interest rate swap, resulting
in a loss of $297 thousand. The Company has no hedge contracts at this time.

 

Income tax expense was $6.4 million, compared
to $6.6 million in the prior year. The decrease in income tax expense was driven by tax recoveries from mark to market losses on equity
investments, combined with lower income tax associated with our Australian royalties compared to the same period in the prior year.

 

Net earnings was $45.5 million, compared to net
earnings of $55.6 million in the prior year. Net earnings in the prior year was driven by a gain on disposition of $30.9 million from
the Buriticá gold stream. Net earnings in the current year as compared to the prior year was driven by higher gross profit across
the portfolio, lower impairment charges and lower finance costs, partially offset by higher mark to market losses from equity investments,
higher general administration costs driven by public company costs, higher business development costs, IPO readiness costs for a U.S.
listing that was not pursued, various expenditures on sustainability initiatives as well as loss on sale of derivatives.

 

    27

     

    

 

Condensed Statements of Cash Flows

 

Three months and year ended December 31, 2021 compared to three
months and year ended December 31, 2020

 

The following table presents summarized consolidated
statements of cash flow information for the three months and year ended December 31, 2021 and December 31, 2020.

 

	 	 	Three months
ended December 31	 	 	Year ended
December 31	 
	($ thousands)	 	2021	 	 	2020	 	 	2021	 	 	2020	 
	Operating cash flow before working capital and taxes	 	$	29,686	 	 	$	36,833	 	 	$	124,543	 	 	$	96,671	 
	Income taxes paid	 	 	(1,039	)	 	 	(2,994	)	 	 	(5,303	)	 	 	(7,340	)
	Change in working capital	 	 	350	 	 	 	(3,118	)	 	 	775	 	 	 	(4,954	)
	Operating cash flow	 	 	28,997	 	 	 	30,721	 	 	 	120,015	 	 	 	84,377	 
	Net Cash (used in) from investing activities	 	 	(5,310	)	 	 	77,533	 	 	 	(48,145	)	 	 	(651,654	)
	Net Cash (used in) from financing activities	 	 	(9,724	)	 	 	(99,486	)	 	 	(51,835	)	 	 	577,128	 
	Effect of exchange rate changes on cash and cash equivalents	 	 	4	 	 	 	42	 	 	 	-	 	 	 	18	 
	Increase in cash during the period	 	 	13,967	 	 	 	8,810	 	 	 	20,035	 	 	 	9,869	 
	Cash and cash equivalents at beginning of period	 	 	26,705	 	 	 	11,827	 	 	 	20,637	 	 	 	10,768	 
	Cash and cash equivalents at end of period	 	$	40,672	 	 	$	20,637	 	 	$	40,672	 	 	$	20,637	 

 

Three months ended December 31, 2021 compared to three
months ended December 31, 2020

 

Operating cash flow was $29.0 million,
a decrease of 6% from $30.7 million for the same period in the prior year. The decrease was due to lower cash flows from streams and
royalties, higher general administration and business development costs as well as expenditures on sustainability initiatives, partially
offset by lower net cash taxes paid and higher working capital adjustments.

 

Net cash used in investing activities
was $5.3 million, compared to net cash from investing activities of $77.5 million for the same period in the prior year. Net cash used
in investing activities in 2021 largely included $4.9 million of funding for the Chilean royalty portfolio acquisition, $115 thousand
of stream funding for the Pumpkin Hollow gold and silver stream and $322 thousand paid to exercise the Talon Warrants. Net cash from
investing activities in 2020 included $78 million from the disposition of the Buriticá gold stream, partially offset by $256 thousand
of stream funding for the Pumpkin Hollow gold and silver stream and $238 thousand of capitalized costs for the IAMGOLD royalty portfolio
acquisition.

 

Net cash used in financing activities
was $9.7 million, compared to $99.5 million for the same period in the prior year. Net cash used in financing activities in 2021 largely
consisted of dividend payments of $7.4 million, $1.7 million paid to purchase shares under the NCIB program as well as interest payments
of $541 thousand. Net cash used in financing activities in 2020 largely consisted of $97 million in debt repayments and $2.4 million
in interest payments on long-term debt.

 

Year ended December 31, 2021 compared to year ended December
31, 2020

 

Operating cash flow was $120.0 million,
an increase of 42% from $84.4 million in the prior year. The increase was due to higher cash flows from streams and royalties, lower
net cash taxes paid and higher working capital adjustments, partially offset by higher general administration and business development
costs, IPO readiness costs as well as various expenditures on sustainability initiatives.

 

Net cash used in investing activities
was $48.1 million, compared to net cash used of $651.7 million in the prior year. Net cash used in investing activities in 2021 included
$45.8 million of funding for the IAMGOLD royalty portfolio, including $155 thousand of capitalized costs, $4.9 million of funding for
the Chilean royalty portfolio acquisition, $0.5 million stream funding for the Pumpkin Hollow gold and silver stream, $322 thousand paid
to exercise the Talon Warrants, partially offset by $3.4 million of proceeds from the sale of 803,900 GoldSpot shares and 1.5 million
Steppe Gold shares. Net cash used in investing activities in 2020 largely related to $554.0 million of funding including capitalized
costs towards the Northparkes gold and silver stream, $145.0 million of funding for the RBPlat gold stream as well as $30.0 million funding
for the Nevada Copper stream amendment and royalty acquisition.

 

    28

     

    

 

Net cash used in financing activities
was $51.8 million, compared to net cash from financing activities of $577.1 million in the prior year. Net cash used in financing activities
in 2021 largely consisted of long-term debt repayment and interest payments of $319.0 million and $5.1 million, respectively, $1.7 million
paid to purchase shares under the NCIB program as well as dividend payments of $14.8 million, partially offset by proceeds of $245.1
million from the IPO, including the over-allotment option, net of underwriting and other fees as well as $44 million in drawdowns from
the Credit Facility to fund the IAMGOLD royalty portfolio acquisition. Net cash from financing activities in 2020 largely consisted of
$370 million in proceeds from a share issuance as well as $328 million in drawdowns from the Credit Facility, both to fund the Northparkes
and RBPlat stream acquisitions, partially offset by long-term debt repayments and interest payments of $110 million and $9.7 million,
respectively.

 

Liquidity and Capital Resources

 

As of December 31, 2021, our cash and cash equivalents
were $40.7 million compared to $20.6 million as at December 31, 2020. Significant variations in the liquidity and capital resources during
the period are explained in the ‘‘Condensed Statements of Cash Flows’’ section of this MD&A.

 

Our primary uses of capital are to finance operations,
acquire new stream and royalty assets, general working capital and payment of dividends. Our objectives when managing capital are to
ensure that we will continue to have enough liquidity to achieve our acquisition growth strategy, finance working capital requirements
and provide returns to our shareholders. The timing of metal sales from inventory from our stream investments is based on commercial
considerations, including our assessment of market conditions and our financial requirements. We believe our cash on hand, estimated
cash flow from royalties, and the sales of metal credits will be sufficient to fund our anticipated operating cash requirements and payment
of dividends for the next twelve months and beyond.

 

Credit Facility

 

The Company currently has a Credit Facility of
$500 million with an additional uncommitted accordion of up to $100 million for a total availability of up to $600 million, maturing
on August 30, 2023. As at December 31, 2021, the Credit Facility balance was nil. Finance costs for the three months and year ended December
31, 2021 were $812 thousand and $6.3 million, respectively, including interest charges, the impact of the pay-fixed receive-float interest
rate swap and standby fees. This compares to finance costs of $2.8 million and $10.3 million in the three months and year ended December
31, 2020, respectively. The Credit Facility includes covenants that require us to maintain certain financial ratios including leverage
ratios as well as certain non-financial requirements. As at December 31, 2021, all such ratios and requirements were met. The Credit
Facility is used for general corporate purposes and investments in the mineral industry, including the acquisition of streams, royalties
and other similar interests.

 

Interest Rate Swap

 

On April 30, 2020, we entered into a
pay-fixed receive-float interest rate swap to hedge the LIBOR rate on $150 million of our 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 million of the balance outstanding
under the facility was fixed at 0.315% plus the applicable margin, depending on our leverage ratio. On May 28, 2021, we paid $297 thousand
to terminate the swap. As a result, we discontinued hedge accounting and released a loss of $297 thousand ($218 thousand loss net of
tax) from AOCI for the year ended December 31, 2021.

 

    29

     

    

 

	Quarterly Information1, 2

 

	 	 	2021
 	 	2020
 	 
	 	 	 	Q4	 	 	Q3	 	 	Q2	 	 	Q1	 	 	Q4	 	 	Q3	 	 	Q2	 	 	Q1	 
	GEOs3	 	 	20,605	 	 	20,746	 	 	22,537	 	 	19,714	 	 	22,409	 	 	12,821	 	 	16,115	 	 	11,714	 
	Cash
and cash equivalents	 	 	40,672	 	 	26,705	 	 	11,719	 	 	4,258	 	 	20,637	 	 	11,827	 	 	23,524	 	 	13,529	 
	Total
assets	 	 	1,303,409	 	 	1,297,722	 	 	1,306,368	 	 	1,309,596	 	 	1,300,919	 	 	1,344,019	 	 	807,909	 	 	807,518	 
	Revenues	 	 	36,990	 	 	37,126	 	 	40,939	 	 	35,366	 	 	41,999	 	 	24,470	 	 	27,575	 	 	18,544	 
	Cost of
sales	 	 	16,339	 	 	16,946	 	 	17,874	 	 	16,009	 	 	19,276	 	 	11,833	 	 	18,291	 	 	13,090	 
	Net
earnings (loss)	 	 	13,381	 	 	5,128	 	 	18,339	 	 	8,679	 	 	53,955	 	 	8,915	 	 	9,180	 	 	(16,485	)
	Earnings
(loss) per share (basic and diluted)	 	 	0.09	 	 	0.03	 	 	0.13	 	 	0.06	 	 	0.40	 	 	0.07	 	 	0.09	 	 	(0.17	)
	Operating
cash flow 	 	 	28,997	 	 	29,455	 	 	32,754	 	 	28,809	 	 	30,721	 	 	19,239	 	 	22,112	 	 	12,305	 
	Operating cash flow per share	 	 	0.19	 	 	0.19	 	 	0.23	 	 	0.21	 	 	0.23	 	 	0.15	 	 	0.23	 	 	0.13	 
	Adjusted
EBITDA3	 	 	28,880	 	 	29,549	 	 	34,959	 	 	30,097	 	 	36,735	 	 	20,619	 	 	23,508	 	 	15,295	 
	Average
gold price4	 	 	1,795	 	 	1,790	 	 	1,816	 	 	1,794	 	 	1,874	 	 	1,909	 	 	1,711	 	 	1,583	 
	Average
silver price5	 	 	23.33	 	 	24.36	 	 	26.69	 	 	26.26	 	 	24.39	 	 	24.26	 	 	16.38	 	 	16.90	 

 

	1	All
                                            amounts in thousands of U.S. dollars except for GEOs, per share information, and average
                                            gold and silver price.

	2	Sum
                                            of all the quarters may not add up to the annual total due to rounding.

	3	GEOs
                                            and adjusted EBITDA as presented above are non-IFRS financial performance measures with no
                                            standardized meaning under IFRS and therefore may not be comparable to similar measures presented
                                            by other issuers. For further information and a detailed reconciliation of GEOs and adjusted
                                            EBITDA to the most directly comparable IFRS measure, see ‘‘Non-IFRS Financial
                                            Performance Measures’’ in this MD&A.

	4	Based
                                            on the LBMA PM fix.

	5	Based
                                            on the LBMA fix.

 

Our financial results for the last several
quarters reflect significant growth in the business. Our asset base increased significantly as we continue to invest in additional streams
and royalties. In the fourth quarter of 2021, we completed the Chilean royalty acquisition for $4.9 million. In the third quarter of
2021, we repaid the remaining balance on our Credit Facility, leaving the Company debt-free. In the second quarter of 2021, we successfully
completed our IPO and paid down the majority of our Credit Facility, while achieving record GEOs and operating cash flow since inception.
In the first quarter of 2021, we entered into an agreement with IAMGOLD to purchase a royalty portfolio consisting of 34 royalties on
various exploration and development properties for $45.7 million.

 

In the fourth quarter
of 2020, we began receiving metal deliveries from the Buriticá stream, and we received a full quarter of gold and silver deliveries
from the Northparkes stream, achieving record quarterly revenues since inception. We also recorded a $30.9 million gain from the disposition
of the Buriticá gold stream. In the third quarter of 2020, we entered into a gold and silver purchase and sale agreement in respect
of the Northparkes mine in Australia for $550 million, and subsequently received the first gold and silver delivery from the Northparkes
stream. Our third-quarter 2020 results were negatively impacted by nearly two months of COVID-19-related disruptions at the Cerro Lindo
mine, and a month and a half disruption at RBPlat, resulting in lower deliveries from lower production. During the third quarter of 2020,
we also increased the maximum availability under the Credit Facility to $500 million. In the second quarter of 2020, we began receiving
first metal deliveries from the ATO mine. In the first quarter of 2020, we entered into an agreement with Nevada Copper consisting of
several components totaling $35 million in near-term funding. Also in the first quarter of 2020, we closed a gold purchase and sale agreement
in respect of the RBPlat PGM Operations in South Africa for $145 million and began receiving gold deliveries from RBPlat. We also recorded
a $7.9 million impairment charge on the Renard stream due to depressed diamond market conditions in light of the COVID-19 pandemic.

 

    30

     

    

 

  

Commitments
and Contingencies

 

From time
to time, we may be involved in disputes with other parties arising in the ordinary course of business that may result in litigation.
If we are unable to resolve these disputes favourably, it may have a material adverse impact on our financial condition, cash flow and
results of operations. We record a liability when it is probable that a loss has been incurred and the amount can be reasonably estimated.
We are not currently involved in any material legal proceedings.

 

Contractual Obligations
and Commitments

 

In the normal course of business,
we enter into contracts that give rise to commitments for future minimum payments.

 

Stream Agreements

 

As of December
31, 2021, we had significant commitments to make per-ounce cash payments for precious metals, copper and diamonds pursuant to the terms
of the metals purchase and sale agreements as detailed in the following table:

 

	 	 	 	 	 	 	 	 	Attributable	 	 	 	 	 
	Mineral interest	 	Commodity	 	Inception date	 	Unit	 	volume

    purchased	 	 	Per unit

    cash payment	 	Term
	Cerro Lindo	 	Silver	 	Dec. 20, 2016	 	Ounce	 	65	%	1	 	10% of monthly average	 	Life of mine
	ATO	 	Gold	 	Aug. 11, 2017	 	Ounce	 	25	%	2	 	17% of spot	 	Life of mine
	ATO	 	Silver	 	Aug. 11, 2017	 	Ounce	 	50	%	3	 	17% of spot	 	Life of mine
	Renard	 	Diamond	 	Nov. 29, 2017	 	Carat	 	4	%	 	Lesser of 40% of achieved sales price or $40	 	Life of mine
	Pumpkin Hollow	 	Gold	 	Dec. 21, 2017	 	Ounce	 	97.5	%	4	 	5% of spot	 	Life of mine
	Pumpkin Hollow	 	Silver	 	Dec. 21, 2017	 	Ounce	 	97.5	%	4	 	5% of spot	 	Life of mine
	Gunnison	 	Copper	 	Oct. 30, 2018	 	Pound	 	16.5	%	5	 	25% of spot	 	Life of mine
	Buriticá	 	Silver	 	Mar. 15, 2019	 	Ounce	 	100	%	6	 	5% of spot	 	Life of mine
	RBPlat	 	Gold	 	Oct. 13, 2019	 	Ounce	 	70	%	7	 	5% of spot	 	Life of mine
	Northparkes	 	Gold	 	Jul. 10, 2020	 	Ounce	 	54	%	8	 	10% of spot	 	Life of mine
	Northparkes	 	Silver	 	Jul. 10, 2020	 	Ounce	 	80	%	8	 	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 mine’s production capacity increases.
                                            We have the option to increase our stream participation percentage by paying an additional
                                            deposit of an amount up to $65 million.

		6.	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 the payable gold until 261,000 ounces are delivered, and 42% thereafter.

		8.	54%
                                            of the payable gold produced from the Northparkes mine until 630,000 ounces have been delivered,
                                            and 27% thereafter; 80% of payable silver produced from the Northparkes mine until 9 million
                                            ounces have been delivered, and 40% thereafter.

 

    31

     

    

 

Investments in Stream and
Royalty Interests

 

As of December
31, 2021, we had commitments related to the acquisition of streams and royalties as detailed in the following table:

 

	Company	Project
    (Asset)	 	Payments	 	Triggering
    Event
	AuRico Metals Inc.	Kemess Project	 	$10 million	 	Positive construction decision
	 	 	 	$10 million	 	1st anniversary
	 	 	 	$12.5 million	 	2nd anniversary
	 	 	 	$12.5 million	 	3rd anniversary
	Nevada Copper Inc.	Pumpkin Hollow	 	$4.2 million	 	50% of cash
    flows generated from the stream from May 1, 2020 onwards
	 	 	 	 	 
	Nevada Copper Inc.	Tedeboy Area	 	$5 million	 	Payment contingent
    upon commencement of commercial production
	 	 	 	 	 
	 	 	 	 	 
	Stornoway Diamond Corporation	Renard	 	C$4.14 million	 	Working capital  funding
    request initiated from Stornoway
	DS McKinnon Holdings Limited	Hemlo Royalty	 	C$50,000	 	For each 100,000
    ounces of gold produced  by  the  Hemlo  mine  in excess of 675,000 ounces
	 	 	 	 	 
	154619 Canada Inc.	Eagle River Royalty	 	C$50,000	 	For each 50,000
    ounces of gold produced by the Eagle River mine in excess of 207,000 ounces
	 	 	 	 	 

  

We have
existing commitments, including with respect to the Kemess stream, Pumpkin Hollow stream, Tedeboy Area royalty, Renard diamond stream,
as well as Hemlo and Eagle River royalties, which are noted in the above table. These are expected to be funded from operating cash flow
over the next few years.

 

Contractual Obligations and
Commitments

 

	($ thousands)	 	Less than
    1 year	 	 	1–3
    years	 	 	3–5
    years	 	 	More than
    5 years	 	 	Total	 
	Lease1	 	 	270	 	 	 	609	 	 	 	248	 	 	 	-	 	 	 	1,127	 
	Lease
    Interest1	 	 	63	 	 	 	71	 	 	 	7	 	 	 	-	 	 	 	141	 
	Standby
    charges2	 	 	1,969	 	 	 	1,305	 	 	 	-	 	 	 	-	 	 	 	3,274	 
	 	 	$	2,302	 	 	$	1,985	 	 	$	255	 	 	$	-	 	 	$	4,542	 

 

		1.	We
                                            are committed to minimum amounts under long-term lease agreements for office space, which
                                            expire in 2025.

		2.	Represents
                                            standby charges on the Credit Facility, which matures on August 30, 2023.

 

Off-Balance Sheet Arrangements
or Commitments

 

We have not entered into any
off-balance sheet arrangements or commitments other than as set forth under ‘‘Contractual Obligations and Commitments’’.

 

    32

     

    

 

Contingencies

 

Contingencies
can be either possible assets or possible liabilities arising from past events which, by their nature, will be resolved only when one
or more future events, not wholly within our control, occur or fail to occur. The assessment of such contingencies inherently involves
the exercise of significant judgment and estimates of the outcome of future events. Refer to Note 20 to the Annual Financial Statements
for further details on the contingencies.

 

We are
not aware of any known trends, commitments (other than described above), events or uncertainties that will materially affect the Company.

 

Risk
and Risk Management

 

Overview

 

We are
in the business of rational risk-taking in pursuit of value creation. Effective risk management is core to the attainment of those often
competing priorities. The ability to deliver on our vision and strategic objectives depends on our ability to understand and effectively
respond to and mitigate the risks or uncertainties we face. To achieve this, we:

 

		·	Identify,
                                            assess and communicate our key risks;

 

		·	Integrate
                                            risk management into strategic priorities and plans;

 

	·	Incorporate procedures
                                            for managing risk into our decision-making processes so that we mitigate risks and minimize
                                            the uncertainty of achieving our objectives;
	 	 

		·	Combine
                                            careful due diligence, legal, financial and commercial structuring and oversight to identify,
                                            assess and manage risks on new deals and for existing assets in the portfolio;

 

		·	Maintain
                                            a structure to manage risk effectively and in a manner that seeks to maximize value creation;

 

		·	Monitor
                                            relevant controls on an ongoing basis to assess their effectiveness and ensure that they
                                            are complied with; and

 

		·	Provide
                                            assurance to the Chief Executive Officer (“CEO”) and the Audit Committee of the
                                            Board of Directors on the effectiveness of key control activities on a regular basis.

 

Board of Directors and
Audit Committee Oversight

 

We maintain
strong risk oversight practices at Triple Flag by clearly outlining responsibilities in the mandates of the Board and Audit Committee.
The Board’s mandate makes clear the responsibility for reviewing and discussing with management the processes used to assess and
manage risk, including the identification of the principal risks of the business and the implementation of appropriate systems to deal
with such risks. The Audit Committee assists the Board in overseeing the Company’s management of risks as well as the implementation
of policies and standards for monitoring such risks and monitoring and reviewing the Company’s financial position and risk management
programs. The Audit Committee also provides oversight focusing on financial and operational (e.g., cyber security, hedging practices,
etc.) risk exposures.

 

Management Oversight

 

Senior
management oversees a weekly team meeting to discuss various issues including, but not limited to, risks facing the organization. This
allows for the timely identification and mitigation of key risks that may prevent us from achieving our objectives, while fostering transparency.
We rely on ongoing broad management involvement and specific external expertise in key meetings on new deals, particularly at the moment
of committing capital, to equip us to make the most informed decisions possible and encourage contrarian and divergent perspectives to
challenge our views and analyses.

 

The following
subsections highlight some of our key sources of uncertainty and relevant risk mitigation activities. The occurrence of any of the risks
discussed below could materially adversely affect our business, prospects, financial condition, cash flow or share price. The list of
risk factors below is not exhaustive, and other risks and uncertainties that we do not presently consider to be material, or of which
we are not presently aware, may become important factors that affect our future financial condition and results of operations.

 

    33

     

    

 

Key Risk Factors

 

		·	Fluctuations
                                            in commodity prices;

 

		·	Passive
                                            nature of our investments – we have limited to no control over the operation of the
                                            properties in which we hold an interest, or an operator’s failure to perform or decision
                                            to cease or suspend operations;

 

		·	Our
                                            inability to control the budgeting, forecasting and planning capabilities of our portfolio
                                            asset mining partners requires us to apply judgment to compensate for potential biases in
                                            establishing forward-looking outlooks as we seek to set guidance for our investors;

 

		·	Revenue
                                            concentration – a significant portion of our revenue comes from a small number of operating
                                            properties within our portfolio, and adverse developments at these properties could have
                                            a more significant or lasting impact;

 

		·	The
                                            current COVID-19 pandemic, as well as similar pandemics and public health emergencies in
                                            the future;

 

		·	The
                                            impact of global financial conditions such as inflation and changes in U.S. dollar interest
                                            rates;

 

		·	Our
                                            liquidity profile, including level of indebtedness;

 

		·	Changes
                                            in governments, the intervention of governments, or other political or economic developments
                                            in the jurisdictions in which we do or may in the future carry on business;

 

		·	Changing
                                            or increasing regulatory requirements, including increasing taxes or other measures;

 

		·	Our
                                            ability to maintain appropriate internal control over financial reporting and disclosure;
                                            and

 

		·	Our
                                            reliance on information and plans, including mine plans, from counterparties that are based
                                            on estimates, including mineral reserves and resources.

 

For
additional information about these risks and others, see the “Risk Factors” section of the Company’s final long-form
prospectus dated May 19, 2021, available on SEDAR at  www.sedar.com, as supplemented by the Company’s AIF as filed from
time to time and available on SEDAR at www.sedar.com. Also see the “Cautionary Statement on Forward-Looking Information”
in this MD&A.

  

Internal
Controls over Financial Reporting

 

Management
is responsible for establishing and maintaining adequate internal control over financial reporting and disclosure controls and procedures.
Internal control over financial reporting is a framework designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements in accordance with IFRS. The Company’s internal control over financial reporting
framework includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in accordance with IFRS, and that receipts and expenditures of
the Company are being made only in accordance with the Company’s delegation of authority (“DOA”); and (iii)
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s
assets that could have a material effect on the Company’s consolidated financial statements.

 

Disclosure
controls and procedures form a broader framework designed to provide reasonable assurance that other financial information disclosed
publicly fairly presents in all material respects the financial condition, results of operations and cash flows of the Company. The Company’s
disclosure controls and procedures framework includes processes designed to ensure that material information relating to the Company
is made known to management by others within those entities to allow timely decisions regarding required disclosure.

 

    34

     

    

 

Together,
the internal control over financial reporting and disclosure controls and procedures frameworks provide internal control over financial
reporting and disclosure. Due to its inherent limitations, internal control over financial reporting and disclosure may not prevent or
detect all misstatements. Further, the effectiveness of internal control is subject to the risk that controls may become inadequate because
of changes in conditions, or that the degree of compliance with policies or procedures may change.

 

Management,
at the direction of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation
of internal control over financial reporting as of the end of the period covered by this report based on the framework and criteria established
in Internal Control – Integrated Framework (2013) as issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO). Based on that evaluation, management concluded that the Company’s internal control over financial reporting was effective
as at December 31, 2021.

 

The Chief
Executive Officer and Chief Financial Officer of the Company are responsible for overseeing internal controls over financial reporting
in order to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with IFRS. The Company’s internal control framework was designed based on the Committee of
Sponsoring Organizations of the Treadway Commission 2013 Framework.

 

There was
no change in the Company’s internal controls over financial reporting that occurred during the three months ended December 31,
2021, that has materially affected, or is reasonably likely to materially affect, the Company’s internal controls over financial
reporting.

 

Public
Securities Filings and Regulatory Announcements

 

Additional
information related to Triple Flag, including our final long-form prospectus dated May 19, 2021, as supplemented by the Company’s
annual information form (“AIF”) as filed from time to time, is available on SEDAR at  www.sedar.com. These
documents contain descriptions of certain of Triple Flag’s stream and royalty interests, as well as a description of risk factors
affecting the Company. For additional information, please see our website at www.tripleflagpm.com. The content of any website referred
to in this report is not incorporated by reference in, and does not form part of, this report.

 

IFRS
Critical Accounting Policies and Accounting Estimates

 

Management
has discussed the development and selection of our critical accounting estimates with the Audit Committee and Board of Directors, and
the Audit Committee has reviewed the disclosure relating to such estimates in conjunction with its review of this MD&A. The accounting
policies and methods we utilize determine how we report our financial condition and results of operations, and they may require management
to make estimates or rely on assumptions about matters that are inherently uncertain. The consolidated financial statements have been
prepared in accordance with IFRS as issued by the IASB under the historical cost convention, as modified by revaluation of certain financial
assets. Our significant accounting policies are disclosed in Note 3 to the Annual Financial Statements, including a summary of current
and future changes in accounting policies, also included in Note 3 of the Annual Financial Statements.

 

Summary of significant
accounting policies

 

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 retrospectively to hedging relationships and financial instruments.

 

    35

     

    

 

Comparative
amounts have not been restated, and there was no impact on the accumulated reserves amounts in 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.

 

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 million of
its Credit Facility, which was terminated on May 28, 2021. Refer to Note 17 of the Annual Financial Statements.

 

Long-term debt

 

The Company
currently has a 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 million 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.

 

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 our direct business activities, as well as our share of emissions associated with the production of attributable metal to the point
of saleable metals by our 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 (loss) as they are incurred.

 

    36

     

    

 

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 remeasured subsequent to the initial grant date.

 

We use
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. We 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 remeasured 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 is recorded within liabilities until settled.

 

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 our 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.

 

Critical Accounting Estimates
and Judgments

 

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.

 

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.

 

We delivered
$29.0 million and $120.0 million in operating cash flow for the three months and year ended December 31, 2021, respectively. At December
31, 2021, we had $40.7 million in cash, and $600 million available for drawing under the Credit Facility (including the accordion), providing
the Company with sufficient liquidity to manage through this period of uncertainty.

 

    37

     

    

 

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.

 

Impairment

 

Assessment
of impairment of mineral interests requires the use of judgment, assumptions and estimates of recoverable Mineral Resources and Mineral
Reserves, commodity prices, discount rates, market multiples and foreign exchange rates. Changes in any assumptions and estimates used
in determining the fair value of the mineral or royalty interest could materially impact the impairment analysis.

 

We performed
an impairment assessment during the three months ended March 31, 2020, resulting in an impairment charge being recognized in the consolidated
statements of income (loss) and comprehensive income (loss). Refer to Note 13 of the Annual Financial Statements for additional disclosures.
Future commodity prices, exchange rates, discount rates and other key assumptions used in our assessment are subject to greater uncertainty
given the current economic environment. Changes in any assumptions and estimates used in determining the fair value of the mineral interest
could materially impact the impairment analysis.

 

At December
31, 2020, we reviewed all of our assets for indicators of impairment or reversal and concluded no impairment charge (or impairment reversal)
was necessary.

 

As at December
31, 2021, we reviewed all of our assets for indicators of impairment or reversal and concluded no impairment charge (or impairment reversal)
was necessary.

 

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 our 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 our
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 interest.

 

In assessing
our estimates of Mineral Resources and Mineral Reserves for a specific property, we assess 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.

 

    38

     

    

 

We estimate 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 stream and royalty interests.

 

Income taxes

 

The interpretation
and application of existing tax laws, regulations and rules in Australia, Bermuda, Canada, Chile, 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 our 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
Mineral Reserve/Mineral 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.

 

Related Party Transactions

 

Our
related parties are our key management personnel, our directors as well as Triple Flag Mining Elliot and Management Co-Invest LP (“Co-Invest
LP”) and Triple Flag Co-Invest Luxembourg Investment Company S.àr.l (“Co-Invest Luxco”). Co-Invest LP and Co-Invest
Luxco together own a majority of the issued and outstanding common shares of the Company.

 

Total compensation
paid to key management personnel for the three months and year ended December 31, 2021 was $2.6 million and $8.4 million, respectively
(2020: $1.1 million and $5.1 million, respectively).

 

    39

     

    

 

Non-IFRS
Financial Performance Measures

 

Gold Equivalent Ounces
(“GEOs”)

 

GEOs are
a non-IFRS measure and are based on stream and royalty interests and are calculated on a quarterly basis by dividing all revenue from
such interests for the quarter by the average gold price during such quarter. The gold price is determined based on the London Bullion
Market Association (“LBMA”) PM fix. For periods longer than one quarter, GEOs are summed for each quarter in the period.
Management uses this measure internally to evaluate our underlying operating performance across our stream and royalty portfolio for
the reporting periods presented and to assist with the planning and forecasting of future operating results. GEOs are intended to provide
additional information only and does not have any standardized definition under IFRS and should not be considered in isolation or as
a substitute for measures of performance prepared in accordance with IFRS. The measures are not necessarily indicative of gross profit
or operating cash flow as determined under IFRS. Other companies may calculate these measures differently. The following table reconciles
GEOs to revenue, the most directly comparable IFRS measure.

 

	 	 	2021	 
	 	 	 	 	 	 	 	 	 	 	 	 	Year ended	 
	($ thousands, except average gold price and
    GEOs information)	 	Q4	 	Q3	 	Q2	 	 	Q1	 	 	December 31	 
	Revenue	 	36,990	 	37,126	 	40,939	 	 	35,366	 	 	 	 
	Average gold price per ounce	 	1,795	 	1,790	 	1,816	 	 	1,794	 	 	 	 
	GEOs	 	20,605	 	20,746	 	22,537	 	 	19,714	 	 	83,602	 

 

	 	 	2020	 
	 	 	 	 	 	 	 	 	 	 	 	 	Year ended	 
	($ thousands, except average gold price and
    GEOs information)	 	Q4	 	Q3	 	Q2	 	 	Q1	 	 	December 31	 
	Revenue	 	41,999	 	24,470	 	27,575	 	 	18,544	 	 	 	 
	Average gold price per ounce	 	1,874	 	1,909	 	1,711	 	 	1,583	 	 	 	 
	GEOs	 	22,409	 	12,821	 	16,115	 	 	11,714	 	 	63,059	 

 

Adjusted Net Earnings
(Loss) and Adjusted Net Earnings (Loss) per Share

 

Adjusted net earnings (loss)
is a non-IFRS financial measure, which excludes the following from net earnings (loss):

 

		·	impairment
                                            charges

 

		·	gain/loss
                                            on sale or disposition of assets/mineral interests

 

		·	foreign
                                            currency translation gains/losses

 

		·	increase/decrease
                                            in fair value of investments

 

		·	non-recurring
                                            charges; and

 

		·	impact
                                            of income taxes on these items

 

Management
uses this measure internally to evaluate our underlying operating performance for the reporting periods presented and to assist with
the planning and forecasting of future operating results. Management believes that adjusted net earnings (loss) is a useful measure of
our performance because impairment charges, gain/loss on sale or disposition of assets/mineral interests, foreign currency translation
gains/losses, increase/decrease in fair value of investments and non-recurring charges (such as IPO readiness costs) do not reflect the
underlying operating performance of our core business and are not necessarily indicative of future operating results. The tax effect
is also excluded to reconcile the amounts on a post-tax basis, consistent with net earnings. Management’s internal budgets and
forecasts and public guidance do not reflect the types of items we adjust for. Consequently, the presentation of adjusted net earnings
(loss) enables users to better understand the underlying operating performance of our core business through the eyes of management. Management
periodically evaluates the components of adjusted net earnings based on an internal assessment of performance measures that are useful
for evaluating the operating performance of our business and a review of the non-IFRS measures used by industry analysts and other streaming
and royalty companies. Adjusted net earnings (loss) is intended to provide additional information only and does not have any standardized
definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS. The measures are not necessarily indicative of gross profit or operating cash flow as determined under IFRS. Other companies
may calculate these measures differently. The following table reconciles adjusted net earnings to net earnings, the most directly comparable
IFRS measure.

 

    40

     

    

 

Reconciliation of Net Earnings to
Adjusted Net Earnings        

 

	 	Three months ended	 	Year
                                            ended	 
	($ thousands, except share and	 	December 31	 	 	December 31	 
	per share information)	 	2021	 	 	2020	 	 	2021	 	 	2020	 
	Net earnings	 	$	13,381	 	 	$	53,955	 	 	$	45,527	 	 	$	55,565	 
	Impairment charges	 	 	-	 	 	 	-	 	 	 	-	 	 	 	7,864	 
	Gain on disposal of mineral interests	 	 	-	 	 	 	(30,926	)	 	 	-	 	 	 	(30,926	)
	Loss on derivatives	 	 	-	 	 	 	-	 	 	 	297	 	 	 	-	 
	Foreign currency translation losses	 	 	1	 	 	 	11	 	 	 	25	 	 	 	16	 
	(Increase) decrease in fair value of investments	  	  	(60	) 	  	  	(6,306	)	  	  	10,786	  	  	  	 (6,447	)
	IPO
    readiness costs1	 	 	-	 	 	 	-	 	 	 	670	 	 	 	-	 
	Income tax effect	 	 	87	 	 	 	326	 	 	 	258	 	 	 	(1,666	)
	Adjusted net earnings	 	$	13,409	 	 	$	17,060	 	 	$	57,563	 	 	$	24,406	 
	Weighted average shares outstanding	 	 	156,158,978	 	 	 	135,903,392	 	 	 	148,025,464	 	 	 	115,456,471	 
	Net earnings per share	 	$	0.09	 	 	$	0.40	 	 	$	0.31	 	 	$	0.48	 
	Adjusted net earnings per share	 	$	0.09	 	 	$	0.13	 	 	$	0.39	 	 	$	0.21	 

 

1
Reflects charges related to a potential U.S. listing that was not pursued.

 

Free Cash Flow

 

Free cash flow is a non-IFRS
measure that deducts acquisition of other assets (excluding acquisition of mineral interests) from operating cash flow. Management believes
this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash. Free cash
flow is intended to provide additional information only and does not have any standardized definition under IFRS and should not be considered
in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative
of operating profit or operating cash flow as determined under IFRS. Other companies may calculate this measure differently. The following
table reconciles free cash flow to operating cash flow, the most directly comparable IFRS measure:

 

	 	 	Three months ended	 	 	Year ended	 
		 	December
    31	 	 	December
    31	 
	($ thousands)	 	2021	 	 	2020	 	 	2021	 	 	2020	 
	Operating cash flow	 	$	28,997	 	 	$	30,721	 	 	$	120,015	 	 	$	84,377	 
	Acquisition of other assets	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Free cash flow	 	$	28,997	 	 	$	30,721	 	 	$	120,015	 	 	$	84,377	 

  

Adjusted EBITDA

 

Adjusted EBITDA is a non-IFRS
financial measure, which excludes the following from net earnings:

 

		·	income
                                            tax expense

 

		·	finance
                                            costs, net

 

		·	depletion
                                            and amortization

 

		·	impairment
                                            charges

 

		·	gain/loss
                                            on sale or disposition of assets/mineral interests

 

		·	foreign
                                            currency translation gains/losses

 

		·	increase/decrease
                                            in fair value of investments; and

 

		·	non-recurring
                                            charges

 

Management believes that
adjusted EBITDA is a valuable indicator of our ability to generate liquidity by producing operating cash flow to fund working capital
needs, service debt obligations, and fund acquisitions. Management uses adjusted EBITDA for this purpose. Adjusted EBITDA is also frequently
used by investors and analysts for valuation purposes whereby adjusted EBITDA is multiplied by a factor or ‘‘multiple’’
that is based on an observed or inferred relationship between adjusted EBITDA and market values to determine the approximate total enterprise
value of a company.

 

    41

     

    

 

In addition
to excluding income tax expense, finance costs, net and depletion and amortization, adjusted EBITDA also removes the effect of impairment
charges, gain/loss on sale or disposition of assets/mineral interests, foreign currency translation gains/losses, increase/decrease in
fair value of investments and non-recurring charges. We believe these items provide a greater level of consistency with the adjusting
items included in our adjusted net earnings reconciliation, with the exception that these amounts are adjusted to remove any impact of
income tax expense as they do not affect adjusted EBITDA. We believe this additional information will assist analysts, investors and
our shareholders to better understand our ability to generate liquidity from operating cash flow, by excluding these amounts from the
calculation as they are not indicative of the performance of our core business and not necessarily reflective of the underlying operating
results for the periods presented.

 

Adjusted
EBITDA is intended to provide additional information to investors and analysts and does not have any standardized definition under IFRS
and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Adjusted EBITDA
is not necessarily indicative of operating profit or operating cash flow as determined under IFRS. Other companies may calculate adjusted
EBITDA differently. The following table reconciles adjusted EBITDA to net earnings, the most directly comparable IFRS measure.

 

	Reconciliation of Net Earnings to Adjusted EBITDA	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Three months ended	 	 	Year ended	 
		 	December
    31	 	 	December
    31	 
	($ thousands)	 	2021	 	 	2020	 	 	2021	 	 	2020	 
	Net earnings	 	$	13,381	 	 	$	53,955	 	 	$	45,527	 	 	$	55,565	 
	Finance costs, net	 	 	602	 	 	 	2,737	 	 	 	5,673	 	 	 	9,860	 
	Income tax expense	 	 	1,800	 	 	 	1,332	 	 	 	6,436	 	 	 	6,595	 
	Depletion and amortization	 	 	13,156	 	 	 	15,932	 	 	 	54,071	 	 	 	53,630	 
	Impairment charges	 	 	-	 	 	 	-	 	 	 	-	 	 	 	7,864	 
	Gain on disposal of mineral interests	 	 	-	 	 	 	(30,926	)	 	 	-	 	 	 	(30,926	)
	Loss on derivatives	 	 	-	 	 	 	-	 	 	 	297	 	 	 	-	 
	Foreign currency translation loss	 	 	1	 	 	 	11	 	 	 	25	 	 	 	16	 
	(Increase) decrease in fair value of investments	 	 	(60	)	 	 	(6,306	)	 	 	10,786	 	 	 	(6,447	)
	IPO
    readiness costs1	 	 	-	 	 	 	-	 	 	 	670	 	 	 	-	 
	Adjusted EBITDA	 	$	28,880	 	 	$	36,735	 	 	$	123,485	 	 	$	96,157	 

  

	1   Reflects
    charges related to a U.S. listing that was not pursued.	 	 	 	 	 

 

    42

     

    

 

Gross Profit Margin,
Asset Margin, and Total Margin

 

Gross
profit margin is an IFRS financial measure which we define as gross profit divided by revenue. Asset margin is a non-IFRS financial measure
which we define by taking gross profit and adding back depletion and dividing by revenue. Total margin is a non-IFRS financial measure
which we define as adjusted EBITDA divided by revenue. We use gross profit margin to assess profitability of our metal sales and use
asset margin and total margin in order to evaluate our performance in increasing revenue and containing costs and providing a useful
comparison to our peers. Both asset margin and total margin are intended to provide additional information only and do not have any standardized
definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS. The following table reconciles asset margin and total margin to gross profit margin, the most directly comparable IFRS measure:

 

	 	 	Three months ended	 	 	Year ended	 
	($ thousands except Gross profit	 	December
    31	 	 	December
    31	 
	margin, Asset margin, and Total margin)	 	2021	 	 	2020	 	 	2021	 	 	2020	 
	Revenue	 	$	36,990	 	 	$	41,999	 	 	$	150,421	 	 	$	112,588	 
	Cost of sales	 	 	16,339	 	 	 	19,276	 	 	 	67,168	 	 	 	62,490	 
	Gross profit	 	 	20,651	 	 	 	22,723	 	 	 	83,253	 	 	 	50,098	 
	Gross profit margin	 	 	56	%	 	 	54	%	 	 	55	%	 	 	44	%
	Gross profit	 	$	20,651	 	 	$	22,723	 	 	$	83,253	 	 	$	50,098	 
	Add: Depletion	 	 	13,056	 	 	 	15,832	 	 	 	53,672	 	 	 	53,231	 
	 	 	 	33,707	 	 	 	38,555	 	 	 	136,925	 	 	 	103,329	 
	Revenue	 	 	36,990	 	 	 	41,999	 	 	 	150,421	 	 	 	112,588	 
	Asset margin	 	 	91	%	 	 	92	%	 	 	91	%	 	 	92	%
	Gross profit	 	$	20,651	 	 	$	22,723	 	 	$	83,253	 	 	$	50,098	 
	Add: Depletion and amortization	 	 	13,156	 	 	 	15,932	 	 	 	54,071	 	 	 	53,630	 
	Less: Sustainability initiatives	 	 	421	 	 	 	20	 	 	 	855	 	 	 	58	 
	Less: Business development costs	 	 	328	 	 	 	54	 	 	 	771	 	 	 	119	 
	Less: General administration costs	 	 	4,178	 	 	 	1,846	 	 	 	12,213	 	 	 	7,394	 
	Adjusted EBITDA	 	 	28,880	 	 	 	36,735	 	 	 	123,485	 	 	 	96,157	 
	Revenue	 	 	36,990	 	 	 	41,999	 	 	 	150,421	 	 	 	112,588	 
	Total margin	 	 	78	%	 	 	87	%	 	 	82	%	 	 	85	%

 

Cash Costs and Cash
Costs per GEO

 

Cash
costs and cash costs per GEO are non-IFRS measures with no standardized meaning under IFRS and may not be comparable to similar measures
presented by other issuers. Cash costs is calculated by starting with total cost of sales, then deducting depletion. Cash costs is then
divided by GEOs sold, to arrive at cash costs per GEO. Cash costs and cash costs per GEO are only intended to provide additional information
to investors and analysts and should not be considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS.

 

Management
uses cash costs and cash costs per GEO to evaluate our ability to generate positive cash flow from our portfolio of assets. Management
and certain investors also use this information to evaluate the Company’s performance relative to peers who present this measure
on a similar basis. The following table reconciles cash costs and cash costs per GEO to cost of sales, the most directly comparable IFRS
measure:

 

	 	 	Three months ended	 	 	Year ended	 
	($ thousands, except GEOs	 	December
    31	 	 	December
    31	 
	and
    cash costs per GEO)	 	2021	 	 	2020	 	 	2021	 	 	2020	 
	Cost of sales	 	$	16,339	 	 	$	19,276	 	 	$	67,168	 	 	$	62,490	 
	Less: Depletion	 	 	13,056	 	 	 	15,832	 	 	 	53,672	 	 	 	53,231	 
	Cash costs	 	 	3,283	 	 	 	3,444	 	 	 	13,496	 	 	 	9,259	 
	GEOs	 	 	20,605	 	 	 	22,409	 	 	 	83,602	 	 	 	63,059	 
	Cash costs per GEO	 	 	159	 	 	 	154	 	 	 	161	 	 	 	147	 

 

    43

     

    

 

Forward-Looking
Information

 

This MD&A
contains “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information
may be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects”,
 “is expected”, “budget”, “scheduled”, “estimates”, “outlook”, “forecasts”,
 “projection”, “prospects”, “strategy”, “intends”, “anticipates”, “believes”,
or variations of such words and phrases or terminology which states that certain actions, events or results “may”, “could”,
 “would”, “might”, “will”, “will be taken”, “occur” or “be achieved”.
Our assessments of, and expectations for future periods described in this MD&A are considered forward-looking information. In addition,
any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain
forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s
expectations, estimates and projections regarding possible future events or circumstances.

 

The
forward-looking information included in this MD&A is based on our opinions, estimates and assumptions in light of our experience
and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently
believe are appropriate and reasonable in the circumstances. The forward-looking statements contained in this MD&A are also based
upon the ongoing operation of the properties in which we hold a stream, royalty or other similar interest by the owners or operators
of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or
operators of such underlying properties; and the accuracy of publicly disclosed expectations for the development of underlying properties
that are not yet in production. These assumptions include, but are not limited to, the following: assumptions in respect of current and
future market conditions and the execution of our business strategies, that operations, or ramp-up where applicable, at properties in
which we hold a royalty, stream or other interest, continue without further interruption through the period, and the absence of any other
factors that could cause actions, events or results to differ from those anticipated, estimated, intended or implied. Despite a careful
process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and
assumptions will prove to be correct. Forward-looking information is also subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed
or implied by such forward-looking information. Such risks, uncertainties and other factors include, but are not limited to, those set
forth under the caption “Risk Factors” in our final long-form prospectus dated May 19, 2021, available on SEDAR as supplemented
by our AIF as filed from time to time and available on SEDAR. For clarity, Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability and inferred resources are considered too geologically speculative for the application of economic considerations.

 

Although
we have attempted to identify important risk factors that could cause actual results or future events to differ materially from those
contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are
not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking
information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information,
which speaks only as of the date made. The forward-looking information contained in this MD&A represents our expectations as of the
date of this MD&A and is subject to change after such date. We disclaim any intention or obligation or undertaking to update or revise
any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable
securities laws. All of the forward-looking information contained in this MD&A is expressly qualified by the foregoing cautionary
statements.

 

    44

     

    

 

Technical
and Third-Party Information

 

Triple
Flag does not own, develop or mine the underlying properties on which it holds stream or royalty interests. As a royalty or stream holder,
Triple Flag has limited, if any, access to properties included in its asset portfolio. As a result, Triple Flag is dependent on the owners
or operators of the properties and their qualified persons to provide information to Triple Flag or on publicly available information
to prepare disclosure pertaining to properties and operations on the properties on which Triple Flag holds stream, royalty or other similar
interests. Triple Flag generally has limited or no ability to independently verify such information. Although Triple Flag does not believe
that such information is inaccurate or incomplete in any material respect, there can be no assurance that such third-party information
is complete or accurate.

 

    45

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