Triple Flag Precious Metals Corp. (TFPM) has announced a definitive agreement to acquire Orogen Royalties for approximately C$421 million. Under this arrangement, Triple Flag will purchase all issued and outstanding shares of Orogen at C$2.00 per share. This total consideration involves around C$171.5 million in cash, C$171.5 million in Triple Flag shares, and shares of a newly formed entity valued at about C$78 million.
The new entity, known as Orogen Spinco, will be led by Paddy Nicol, CEO of Orogen, and will retain all of Orogen’s mineral interests aside from the 1.0% Expanded Silicon NSR royalty. Following Orogen Spinco’s public introduction, Triple Flag plans to invest C$10 million to acquire an approximate 11% stake in the company. Post-acquisition, Orogen shareholders are expected to own roughly 3% of Triple Flag.
Triple Flag will cover the cash component of the deal through its existing $700 million credit facility. The acquisition offers Triple Flag a key asset in the form of a 1.0% NSR royalty on the Expanded Silicon project, located in Nevada—a prolific gold mining region. This opportunity aligns with Triple Flag's strategy to capitalize on the growth potential of gold assets in top-tier regions, especially as the Expanded Silicon project is managed by the leading operator AngloGold Ashanti plc (AU, Financial).
This transaction not only aims to enhance Triple Flag’s asset portfolio but also introduces a strategic partnership with Orogen Spinco, expanding participation in exploration-stage royalties and further resource discovery potential. Triple Flag's CEO, Sheldon Vanderkooy, expressed optimism about the value creation and future growth this acquisition represents.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Anglogold Ashanti PLC (AU, Financial) is $39.50 with a high estimate of $42.00 and a low estimate of $35.00. The average target implies an downside of 8.27% from the current price of $43.06. More detailed estimate data can be found on the Anglogold Ashanti PLC (AU) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Anglogold Ashanti PLC's (AU, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Anglogold Ashanti PLC (AU, Financial) in one year is $36.80, suggesting a downside of 14.54% from the current price of $43.06. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Anglogold Ashanti PLC (AU) Summary page.
