10:58 AM EDT, 07/23/2024 (MT Newswires) -- Triple Flag Precious Metals ( TFPM ) said Tuesday that Sheldon Vanderkooy will succeed Shaun Usmar as CEO and director.

The appointment will take effect following the departure of Usmar, who is stepping down to assume a new leadership role with a major diversified mining company.

The transition is expected to be finalized in the fourth quarter.

Vanderkooy is a founding member of the Triple Flag team since its inception in 2016.

"I am proud to have been part of Triple Flag's growth from a startup in the royalty and streaming space to a significant player with sector-leading [gold equivalent ounces] growth and a track record of strong shareholder returns under Shaun's leadership," Vanderkooy said. "I am highly committed to continue creating shareholder value through increasing [net asset value] per share and cash flow per share."

Triple Flag maintained its Outperform rating and C$26 price target at National Bank of Canada following the news.

The bank said Tuesday that while it views Vanderkooy as being "capable to step into" the CEO role as he has been involved with every deal completed by Triple Flag, it does expect to see some weakness in Triple Flag's trading over the coming days.

National expects the departure of Usmar, who is well regarded throughout the industry and a significant shareholder (holding near 1.48 mln shares of TFPM), will "lead to some erosion of the premium multiple ascribed to TFPM over intermediate peers".

Also, National said it continues to see further consolidation of the industry, and it had previously viewed TFPM as a logical consolidator of the Intermediate sector. But it added: "Should we see some multiple deterioration related to the departure of Mr. Usmar as CEO, we would expect to see the company continue to harvest growth within its portfolio and add additional smaller-scale royalty and streaming opportunities which may somewhat deteriorate our near-term outlook."

Triple Flag's share price fell more than 1% at last look to near $21.60 on the TSX.

Price: 21.55, Change: -0.26, Percent Change: -1.19