Q4 2023 Activities Update

Trident Royalties Plc (AIM: TRR, OTC: TDTRF), the diversified mining royalty company, is pleased to provide an update on its activities during the quarter ended 31 December 2023.

HIGHLIGHTS

• Quarterly receipts of US$3.2 million from exposure to gold, copper, and iron ore, a 63% increase from Q3 2023, driven principally by seasonally higher deliveries from the gold offtake portfolio.
• Excluding the Mimbula copper royalty, receipts were slightly above Q4 2022. Mimbula concluded a minimum payment schedule in Q2 2023 following full recovery of Trident’s initial investment. Trident retains a 0.3% gross revenue royalty over Mimbula, which is continuing its ramp-up as noted in more detail below.
• The Company delivered several key undertakings during the quarter, including:
  • Acquisition of a net smelter return royalty over the advanced stage, high-grade copper-zinc Antler deposit in Arizona, USA, being advanced by ASX-listed New World Resources1;
  • Entered into a commitment letter with BMO Capital Markets and CIBC for a new, lower-cost US$40 million revolving credit facility, which is expected to close in Q1 2024. If fully drawn, the facility would deliver interest savings of up to US$1.3 million per annum.2
• As of 31 December 2023, the Company had an unaudited net debt position of US$22 million.

Adam Davidson, Chief Executive Officer of Trident commented:

“We enjoyed a solid finish to the year with an attractive royalty acquisition, excellent progress within our existing portfolio, and the announcement of a significant debt refinancing which materially lowers our cost of capital.

Against the backdrop of an increasingly complex and volatile geopolitical environment, our diversified portfolio – with exposure to gold, lithium, copper, silver, and other commodities – continues to demonstrate its value. In particular, our gold offtake assets again benefited from elevated volatility in gold prices.

Asset level developments across the portfolio continue to enhance the value and cash generation potential of Trident. The commencement of production at the Greenstone gold project is expected to deliver up to 58.5koz of additional gold to Trident over the course of 2024. Construction activities continue to progress at the Thacker Pass lithium project, whilst on-going ramp-up and recently completed equipment upgrades are expected to double capacity at the Mimbula copper project in 2024. We also expect the first payment from our La Preciosa silver royalty, as the operator announced in January that it anticipates commencing the processing of surface stockpiles following the signing of a long-term land use agreement with the local communities for the development of the project.

“In our 2022 Annual Report we highlighted the significance of reducing our cost of capital to our business. During the quarter, we announced a new debt facility with global lenders BMO Capital Markets and CIBC. The new facility provides greater flexibility in managing our cash, increases our potential borrowing capacity to US$60 million, and delivers a lower cost of capital to the business. The support of institutions such as BMO and CIBC, leading financiers to the sector, validates our existing portfolio and the opportunity that exists.”

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