Royalty Holder.……............Triple Flag
Revenue………............……..…..….$25m
Mine Life...………......................6 years
Commodity………………...............Silver
Operator........................Minera Milpo

#10 Triple Flag

New York-based hedge fund Elliott Management is best known for holding Argentina to ransom over its government bonds, seizing a boat owned by the navy, to remind Argentina's president that its debt remained unpaid.

Now, Elliott is getting into the sleepier business of metal streaming, poaching Barrick Gold's former finance director, Shaun Usman, to lead a new $1bn vehicle, Triple Flag.

Usman has told Bloomberg that he wants to get up to “cruising altitude... as quickly as possible”, striking his first deal in December. Triple Flag paid $250m for a silver stream over the Cerro Lindo zinc mine, Peru, one of the world's largest zinc mines, which is owned by a Brazilian conglomerate. The deal looks pricey: at spot prices, the IRR is roughly negative, according to analysts at Dundee Capital, “but exploration is expected to improve returns”.

Triple Flag says it is “primarily” focused on royalties and streams, suggesting it could stray into debt and equity deals. Either way, Elliott will want a 'money event' at Triple Flag in three to five years, so could either list the business, or shop its assets around to larger streaming groups.

 

 

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