TIDMTRR
RNS Number : 6380H
Trident Royalties PLC
31 July 2023
31 July 2023
Trident Royalties Plc
("Trident" or the "Company")
Q2 2023 Activities Update
Trident Royalties Plc (AIM: TRR, OTCQX: TDTRF), the diversified
mining royalty company, is pleased to provide an update on its
activities during the quarter ended 30 June 2023.
HIGHLIGHTS
-- Quarterly receipts of US$2.34 million from exposure to gold,
copper, and iron ore. A year-on-year increase of 18% over Q2
2022.
-- Several key initiatives undertaken in the quarter, including
the $8 million acquisition of a near-production silver royalty,
admission to trading on the OTCQX in the U.S., and significant
advancements within the royalty portfolio.
-- Post quarter-end, further validation of the environmental
standing of the Thacker Pass lithium project was received with the
rejection of arguments to the 9(th) U.S. Circuit Court of Appeals
regarding an appeal of the approval of Thacker Pass, noting that
the U.S. Bureau of Land Management, which approved the project, had
acted "reasonably and in good faith".
-- Trident held cash of c. US$29 million as of 28 July 2023,
providing a strong platform for further acquisitions.
Royalty / Stream Q2 2023 (US$M) Q2 2022 (US$M) % Change
Koolyanobbing iron
ore royalty* 0.29 0.45 -35%
-------------------------- -------------------------- --------------------
Mimbula copper royalty 0.75 0.50 50%
-------------------------- -------------------------- --------------------
Lincoln gold royalty 0.15 - -
-------------------------- -------------------------- --------------------
Gold offtakes portfolio 1.15 1.03 12%
-------------------------- -------------------------- --------------------
Total 2.34 1.98** 18%
-------------------------- -------------------------- --------------------
*Reserve Bank of Australia for 30 June 2023 (0.6630) and 30 June
2022 (0.6889)
** Excludes Premier Gold Offtake amendment included in 2022.
Adam Davidson, Chief Executive Officer of Trident commented:
"Trident has enjoyed another positive quarter which saw
significant progress at key assets, as well as the announcement of
a new acquisition. Completion of the La Preciosa acquisition, an
attractive long-life silver asset in Mexico, provides Trident with
exposure to a new commodity well positioned to benefit from the
energy transition and further adds to the diversity of Trident's
portfolio.
"The dismissal of the appeal of approval of the Thacker Pass
lithium project further validates the robustness of the
environmental standing of the project and reaffirms the importance
of the asset for US battery manufacturing. Trident undertook a site
visit to Thacker Pass during the quarter and was impressed both by
the calibre of the operating team and progress achieved to
date.
"The existing portfolio continues to generate cash, and our
balance sheet is in a strong position to act on a robust pipeline
of prospective transactions. Royalties have a particular attraction
to operators at present, as both debt and equity become more
relatively expensive. We look forward to providing updates as the
year progresses."
Portfolio Update:
La Preciosa Silver Royalty Transaction (1)
-- Trident acquired two royalties and an associated US$8.75
million milestone payment from Coeur Mining Inc. over the La
Preciosa Silver Project in Mexico.
-- La Preciosa is one of the largest undeveloped primary silver
resources in Mexico, being advanced by Avino Silver & Gold
Mines, which operates the Avino mine and mill located 19km from La
Preciosa.
-- Avino intends to begin processing stockpiled material from La
Preciosa in late-2023 at its existing mill, before commencing
production from fresh ore in 2024, with the intent of ramping
production to circa 3.5 million ounces by 2028.
-- In consideration, Trident paid US$7 million in cash, and a
further US$1 million in cash or shares upon receipt of the US$8.75
million milestone payment, which is payable by Avino 12-months from
first silver production at La Preciosa.
Thacker Pass Lithium Project (2,3)
-- Lithium Americas Corp., operator of Thacker Pass, announced
early works at Thacker Pass are progressing, including water
pipelines, construction ponds, site fencing and access roads. Major
earthworks are expected to commence in H2 2023 and support the
target to commence lithium production in the second half of
2026.
Koolyanobbing Iron Ore Project (4)
-- Following receipt of the Q2 payment, Trident has now fully
recovered its investment in the royalty.
-- Lower royalty proceeds for the quarter based on lower
production tonnage, iron ore price and AUD exchange rate. Lower
tonnage for the quarter reflects typical variation in the mining
sequencing as the royalty does not cover the entirety of the
Deception deposit.
Mimbula Copper Project
-- Following receipt of the Q2 payment, Trident has now fully
recovered its investment in the royalty and as a result, the
royalty rate will adjust to 0.30% of gross revenue.
-- Trident will retain life-of-mine exposure to Mimbula, which
recently announced first cathode production, and previously noted
the completion of a Bankable Feasibility Study contemplating an
expanded 56,000 tpa alongside a capital raise of US$135 million to
progress development of the project.
Offtakes Gold Portfolio
-- Gold deliveries increased by 34% year-over-year in the
quarter, from 55,186 gold ounces in Q2-2022 to 65,261 in Q2-2023.
Stronger deliveries were offset by a reduction in both spot gold
price and volatility across Q2. The net result was a 12%
year-over-year increase in quarterly revenue.
OTCQX in the U.S. (Ticker: TDTRF)(5)
-- Trident's Ordinary Shares were approved to trade on the OTCQX
Market in the U.S., with the first trades having occurred
post-quarter end. The cross-trading of Trident's shares will
provide enhanced investor benefits, including easier trading access
for investors located in the U.S., and greater liquidity due to a
broader geographic pool of potential investors.
References
1: Source: Trident Royalties announcement dated 15 May 2023
(
https://polaris.brighterir.com/public/trident/news/rns/story/xzj8glw
http://www.ganfenglithium.com/ir_en.html
https://polaris.brighterir.com/public/trident/news/rns/story/xo1pnmr
)
2: Source: Trident Royalties announcement dated 18 May 2023
(
https://polaris.brighterir.com/public/trident/news/rns/story/r778ojr
)
3: Source: Trident Royalties announcement dated 19 July 2023
(
https://polaris.brighterir.com/public/trident/news/rns/story/ryj879r
)
4: Source: Mineral Resources Ltd. Announcement dated 26 July 2023
(
https://s3.ap-southeast-2.amazonaws.com/assets.mineralresources.com.au/app/uploads/2023/07/26100505/FY23-Q4-Quarterly-Activities-Report.pdf
)
5: Source: Trident Royalties announcement dated 5 April 2023
(
https://polaris.brighterir.com/public/trident/news/rns/story/xle8z7w
)
Competent Person's Statement
The technical information contained in this disclosure has been
read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, MIMMM,
FGS), who is a qualified geologist and acts as the Competent Person
under the AIM Rules - Note for Mining and Oil & Gas Companies.
Mr O'Reilly is a Principal Consultant working for Mining Analyst
Consulting Ltd which has been retained by Trident to provide
technical support.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014 which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
** Ends **
Contact details:
Trident Royalties Plc www.tridentroyalties.com
Adam Davidson / Richard Hughes +1 (757) 208-5171 / +44 7967
589997
Grant Thornton (Nominated Adviser) www.grantthornton.co.uk
Colin Aaronson / Samantha Harrison +44 020 7383 5100
/ Samuel Littler
------------------------------
Liberum Capital Limited (Joint Broker) www.liberum.com
Scott Mathieson / Cara Murphy +44 20 3100 2184
------------------------------
Stifel Nicolaus Europe Limited (Joint www.stifelinstitutional.com
Broker) +44 20 7710 7600
Callum Stewart / Ashton Clanfield
------------------------------
Tamesis Partners LLP (Joint Broker) www.tamesispartners.com
Richard Greenfield +44 20 3882 2868
------------------------------
St Brides Partners Ltd (Financial www.stbridespartners.co.uk
PR & IR) +44 20 7236 1177
Susie Geliher / Catherine Leftley
------------------------------
About Trident
Trident is a growth-focused diversified mining royalty and
streaming company, providing investors with exposure to a mix of
base battery, precious, and bulk metals.
Key highlights of Trident's strategy include:
-- Building upon a royalty and streaming portfolio which broadly
mirrors the commodity exposure of the global mining sector
(excluding fossil fuels) with a bias towards production or
near-production assets, differentiating Trident from the
majority of peers which are exclusively, or heavily weighted,
to precious metals;
-- Acquiring royalties and streams in resource-friendly jurisdictions
worldwide, while most competitors have portfolios focused
on North and South America;
-- Targeting attractive small-to-mid size transactions which
are often ignored in a sector dominated by large players;
-- Active deal-sourcing which, in addition to writing new royalties
and streams, will focus on the acquisition of assets held
by natural sellers such as: closed-end funds, prospect generators,
junior and mid-tier miners holding royalties as non-core
assets, and counterparties seeking to monetise packages of
royalties and streams which are otherwise undervalued by
the market;
-- Maintaining a low-overhead model which is capable of supporting
a larger scale business without a commensurate increase in
operating costs; and
-- Leveraging the experience of management, the board of directors,
and Trident's adviser team, all of whom have deep industry
connections and strong transactional experience across multiple
commodities and jurisdictions.
The acquisition and aggregation of individual royalties and
streams is expected to deliver strong returns for shareholders as
assets are acquired on terms reflective of single asset risk
compared with the lower risk profile of a diversified, larger scale
portfolio. Further value is expected to be delivered by the
introduction of conservative levels of leverage through debt. Once
scale has been achieved, strong cash generation is expected to
support an attractive dividend policy, providing investors with a
desirable mix of inflation protection, growth and income.
Forward-looking Statements
This news release contains forward -- looking information. The
statements are based on reasonable assumptions and expectations of
management and Trident provides no assurance that actual events
will meet management's expectations. In certain cases, forward --
looking information may be identified by such terms as
"anticipates", "believes", "could", "estimates", "expects", "may",
"shall", "will", or "would". Although Trident believes the
expectations expressed in such forward -- looking statements are
based on reasonable assumptions, such statements are not guarantees
of future performance and actual results or developments may differ
materially from those projected. Mining exploration and development
is an inherently risky business. In addition, factors that could
cause actual events to differ materially from the forward-looking
information stated herein include any factors which affect
decisions to pursue mineral exploration on the relevant property
and the ultimate exercise of option rights, which may include
changes in market conditions, changes in metal prices, general
economic and political conditions, environmental risks, and
community and non-governmental actions. Such factors will also
affect whether Trident will ultimately receive the benefits
anticipated pursuant to relevant agreements. This list is not
exhaustive of the factors that may affect any of the forward --
looking statements. These and other factors should be considered
carefully and readers should not place undue reliance on
forward-looking information.
Third Party Information
As a royalty and streaming company, Trident often has limited,
if any, access to non-public scientific and technical information
in respect of the properties underlying its portfolio of royalties
and investments, or such information is subject to confidentiality
provisions. As such, in preparing this announcement, the Company
often largely relies upon information provided by or the public
disclosures of the owners and operators of the properties
underlying its portfolio of royalties, as available at the date of
this announcement.
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END
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