Canaccord Genuity has upgraded its price target for Triple Flag Precious Metals, a Canada-based precious metals royalty and streaming company, following the firm's recent settlement with Mongolian gold miner Steppe Gold. The settlement, announced last week, resolves a long-running dispute over royalty payments related to the Boroo gold mine in Mongolia, removing a significant source of uncertainty for Triple Flag investors.
Analysts at Canaccord raised their target price for Triple Flag shares to C$26.00 from C$24.00, maintaining a 'buy' rating. They noted that the settlement not only clears the legal overhang but also strengthens Triple Flag's balance sheet and positions it for future acquisitions. The company will receive a lump-sum payment from Steppe Gold and retain ongoing royalty rights on the mine's expanded operations.
Triple Flag shares rose 1.8% on the Toronto Stock Exchange following the upgrade, outperforming the broader materials sector. The stock has gained roughly 12% year-to-date, buoyed by a strong gold price environment and improved operational clarity. For UK investors with exposure to precious metals through exchange-traded funds or pension funds holding North American equities, the upgrade signals a reduced risk profile for the royalty and streaming model.
The precious metals royalty sector has become increasingly popular among income-focused investors globally, as it offers exposure to gold and silver prices without the operational risks of mining. Triple Flag's portfolio includes over 130 assets across the Americas, Australia, and Africa. Analysts believe the Steppe Gold settlement could pave the way for further consolidation in the sector, with Triple Flag well-capitalised to pursue new streaming deals.
However, some market observers caution that the gold price remains the primary driver for royalty companies. Should gold retreat from current levels near $2,350 per ounce, Triple Flag's shares could face headwinds regardless of company-specific developments. Canaccord's upgrade is seen as a vote of confidence in management's ability to navigate legal challenges and deliver long-term shareholder value.
Source: Canaccord Genuity research note, Triple Flag Precious Metals press release