Trident Royalties. - 67% increase in Koolyanobbing royalty payment
67% increase in Koolyanobbing royalty payment
Q2 Activities Update
Completion of re-listing and admission onto AIM,
· Successful cancellation of shares from the Official List (standard segment) and the Main Market of the
· Completion of a successful placing to raise gross proceeds of
· Commencement of trading on
Q2 royalty payment received from royalty over Koolyanobbing
· Iron ore royalty payment for the second quarter of 2020 is
· Increased payment a result of strong iron ore prices, as well as continued ramp-up of operations at Koolyanobbing;
· Iron ore price increased significantly over the quarter, rising 19% from
Acquisition of an immediately cash generative copper royalty over
· Structured as a gross revenue royalty ("GRR") of 1.25%, decreasing to 0.3% upon
· The GRR is subject to a minimum payment schedule which guarantees that a minimum of
· The asset is currently ramping-up production, having sold its first
· Copper was one of the best performing commodities during Q2 increasing from
Transaction completed early in Q3, with strong pipeline
· Subsequent to quarter-end, Trident has executed on the acquisition of the Spring Hill royalty, a strategically located development-stage gold asset in
· Indicative of the strength of the pipeline, Trident currently has 15 active NDAs under which it is reviewing a range of opportunities across the breadth of commodities including base and precious metals, as well as battery minerals;
· Pipeline opportunities include assets located in the
Strong balance sheet to support future acquisitions
· When accounting for the
· This substantial cash balance, when coupled with projected revenues from two cash generative royalties and an ability to offer vendors publicly tradeable equity in Trident, supports significant capacity for future acquisitions;
· In addition, Trident continues to advance debt discussions as a means to unlock additional funding capacity and provide shareholders with levered returns.
"We are very pleased with Trident's progress over the second quarter of 2020. In a short period of time, we have executed on the AIM listing and
The conclusion of the Mimbula royalty acquisition toward the end of the quarter was also a welcome addition to the portfolio. Mimbula is a long-life copper asset with favourable production and cost profiles. The royalty was sourced during a period of weak copper prices and will provide exposure to a commodity which has risen to over
Competent Person's Statement
The technical information contained in this disclosure has been read and approved by Mr
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
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Trident is a growth-focused diversified mining royalty and streaming company, aiming to provide investors with exposure to a mix of base and precious metals, bulk materials (excluding thermal coal) and battery metals.
Key highlights of Trident's strategy include:
· Constructing a royalty and streaming portfolio to broadly mirror the commodity exposure of the global mining sector (excluding thermal coal) 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
· 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.
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 has relied 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.
This information is provided by RNS, the news service of the
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