Portfolio Update: Los Filos Gold Offtake

Trident Royalties Plc (AIM:TRR), the diversified mining royalty company, is pleased to note Equinox Gold’s (“Equinox”) recent news release announcing an updated Feasibility Study for an expansion at its Los Filos Mine Complex (“Los Filos”). Trident holds an offtake agreement for 50% of all refined gold production up to a cap of 1,100,000 ounces from Los Filos (approx. 770,000 ounces remaining).*

HIGHLIGHTS

• ·The Feasibility Study contemplates the construction of a carbon-in-leach (“CIL”) processing plant beginning in H2 2023 to process higher grade ore from Los Filos’ six mines, commencing in mid-2024.** Trident notes that, while the Feasibility Study estimates are predicated on this timeline, Equinox has not yet approved the expansion.
• With construction of the CIL processing plant and continued development of the Bermejal Underground mine, the Feasibility Study outlines peak gold production averaging 360,000 ounces per year from 2025-2030, including production in excess of 400,000 ounces in 2025. By comparison, Equinox’s latest guidance for 2022 production at Los Filos is 155,000 to 170,000 ounces.***
• The expansion would extend the Los Filos mine life to 14.5 years at an all-in sustaining cost of US$1,081 per ounce of gold. The Feasibility Study calculates an NPV5% of US$625 million and an after-tax IRR of 26% at a gold price of US$1,675 per ounce.

Adam Davidson, Chief Executive Officer of Trident commented:

“Equinox continues to deliver on its growth plans with the release of this updated feasibility study, which highlights the tremendous potential at Los Filos. The potential expansion at Los Filos underscores the organic growth within Trident’s gold offtakes portfolio; which includes underlying assets such as Equinox’s Santa Luz mine, Blyvoor Gold, and i-80 Gold Corp’s Ruby Hill and Granite Creek projects. In addition to this organic growth, delivered at no incremental cost to Trident, we have an attractive pipeline of potential transactions which will deliver further significant value to shareholders.”

References

* Source: Trident Royalties announcement dated 13 December 2021

( https://polaris.brighterir.com/public/trident/news/rns/story/x52139x )

** Source: Equinox Gold announcement dated 19 October 2022

( https://equinoxgold.com/news/equinox-gold-announces-updated-feasibility-study-for-los-filos-expansion )

*** Source: Equinox Gold announcement dated 3 August 2022

( https://equinoxgold.com/news/equinox-gold-reports-second-quarter-2022-financial-and-operating-results )