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Overview

Trident Royalties (AIM:TRR) is targeting a royalty & streaming portfolio to broadly mirror the commodity exposure of the global mining sector, with a production bias versus the majority of its peer group which is exclusively, or heavily weighted, to precious metals. The aim is to have a portolio evenly split between precious metals, base metals and bulk/ battery metals, across a range of mining-friendly jurisdictions worldwide, while most other royalty and streaming companies have portfolios weighted towards mining assets located in North and South America.

Producing royalties and streams can deliver strong and predictable cash flows, which can be leveraged through debt to enhance returns to equity and can underpin eventual dividend returns to shareholders. In this regard, the Company has entered into an exclusive mandate letter with Tribeca Global Resources Credit in relation to the arranging, underwriting and raising of an acquisition debt facility of up to approximately US$10 million

The Company’s first royalty acquisition, expected to complete shortly, is a 1.5% free on board royalty over part of the producing Koolyanobbing Iron Ore Operation in Western Australia, operated by Mineral Resources Limited (ASX: MIN, market capitalisation approx. US$2.5 billion), providing exposure to an immediately cash generative royalty over an established asset which is currently undergoing a production increase.

www.tridentroyalties.com

Directors

  • Adam Davidson (CEO): 10yrs natural resources experience, formerly with PE Group Resource Capital Funds
  • Mark Potter (NED): 14yrs mining experience. Current CIO of Metal Tiger & ex CIO of Anglo Pacific Group
  • Albert Gourley (NED): Managing Partner of Fasken Martineau
  • Peter Bacchus (NED): Current Chair & CEO of Bacchus Capital

Financials

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P&L31 Dec 2021
US$~000
31 Dec 2020
US$~000
Revenue831,668
(Amortisation of royalty intangibleassets)(21)(1,193)
Gross Profit62475
Profit/ (Loss) before tax(4,401)(1,654)
Balance Sheet31 Dec 2021
US$~000
31 Dec 2020
US$~000
Cash & Cash Equivalents45,6376,971
Total Assets100,25326,430
Total Liabilities12,183921
Net Assets88,07025,509

Major Shareholders

Directors

  • Albert Gourley – 3.7%
  • James Kelly – 0.3%
  • Adam Davidson – 0.1%
  • Mark Potter – 0.1%

Other

  • Regal Funds Management Pty Ltd – 10.81%
  • LIM Asia Special Situations Master Fund Ltd – 8.93%
  • Orion Mine Finance – 8.84%
  • Ponderosa Investments (WA) Pty Limited – 5.54%
  • Amati – 4.82%
  • Tribeca Investment Partners Pty Ltd – 4.23%

Media Coverage

Investor’s Chronicle (9th May 2022): “Profiting from high commodity prices and inflation”

“A commodity royalty group has reported record results that prompted analysts to upgrade their forecasts.”

“First-quarter results from commodity royalty group Trident Royalties (TRR:48p) highlight the substantial progress the group has made in the past 12 months. Having made four royalty acquisitions in 2021, and subsequently completed the US$69.75mn (£56.4mn) acquisition of offtakes covering seven producing gold mines operated by five counterparties across six countries, Trident now has 22 investments of which 12 are producing income. In the latest three-month period, Trident realised profits of $1.6mn from its gold offtake portfolio, $0.5mn from its Mimbula copper royalty in Zambia and A$0.2mn from its Koolyanobbing iron ore royalty in Western Australia.”

 

Macro Indicators

Australian Mining: Mining achieves record tax, royalty payments  (May 2020)

Australia’s minerals sector has paid $39.3 billion in company taxes and royalties in the 2018-19 financial year, a record high for the sector. This marks an increase of $8 billion from the previous year.

The increase was in line with revenue growth that reflected continued higher production and strong commodity prices, according to a Deloitte Access Economics report commissioned by the Minerals Council of Australia (MCA).

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