TIDMTRR
RNS Number : 4077S
Trident Royalties PLC
06 November 2023
6 November 2023
Trident Royalties Plc
("Trident" or the "Company")
Q3 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 30 September 2023.
HIGHLIGHTS
-- Quarterly receipts of US$1.94 million from exposure to gold, copper, and iron ore.
-- Excluding the Mimbula copper royalty, where a minimum payment
schedule concluded in Q2 2023 following full recovery of capital,
receipts increased by 18% quarter-on-quarter. Trident retains a
perpetual gross revenue royalty over Mimbula.
-- Several key undertakings during a very active quarter for the Company, including:
-- The acquisition of an advanced stage lithium royalty in the
U.S., which immediately benefited from a 45% increase in Mineral
Resource estimate announced shortly after acquisition;
-- The acquisition of a major gold exploration royalty in Mali
operated by industry leader B2Gold, the royalty covers a
significant exploration tenure which hosts an existing gold
resource and is within trucking distance of B2Gold's operating
Fekola mine, which produced almost 600koz of gold in 2022;
-- Significant advancements within the existing portfolio, set
out in more detail below, which includes significant ramp-up
activities at the Mimbula Copper Project, the release of the second
tranche of funding by General Motors toward construction at the
Thacker Pass Lithium Project, and continued development across the
gold offtake portfolio which has steadily increased in
year-over-year production and revenue.
-- Trident held cash of circa US$25.6 million as of 3 November
2023, providing a strong platform for further acquisitions.
Royalty / Q3 2023 Q2 2023 % Change Q3 2022
Stream (US$M) (US$M) (US$M)
Gold offtakes
portfolio 1.40 1.15 22% 1.31
--------------------- --------------------- -------------------- ----------------------
Koolyanobbing
iron ore
royalty* 0.33 0.29 14% 0.40
--------------------- --------------------- -------------------- ----------------------
Mimbula copper
royalty** 0.06 0.75 -92% 0.50
--------------------- --------------------- -------------------- ----------------------
Lincoln gold
royalty 0.15 0.15 0.0% 0.17
--------------------- --------------------- -------------------- ----------------------
Total 1.94 2.34 -17% 2.38
--------------------- --------------------- -------------------- ----------------------
*Reserve Bank of Australia for 29 September 2023 (0.66458) and
30 September 2022 (0.6502)
** Reflects the step-down in royalty rate and conclusion of the
minimum payment schedule as US$5m has been received
Adam Davidson, Chief Executive Officer of Trident commented:
"This has been another solid quarter for Trident, with two new
transactions, good progress within our existing portfolio, and
solid revenue generation. In the uncertain geopolitical
environment, our diversified exposure has demonstrated its value,
with our gold offtake revenue benefiting from higher gold prices
and volatility. Our gold exposure will benefit further during the
first half of 2024, with first gold expected at Equinox's
Greenstone Project, alongside ramping of production at other
assets.
"We continued to build our portfolio during the quarter with the
acquisition of new royalties over the Paradox Lithium Project and
the Dandoko Gold Project. Both projects have the potential to
become significant contributors to revenue over the short to
medium-term. With the conclusion of the minimum payment schedule at
Mimbula, Trident now has direct exposure to the project which is
maintaining its positive ramp-up towards becoming a mid-tier copper
producer. The Thacker Pass Lithium Project continues to reaffirm
its status as a Tier 1 operation following the separation of
Thacker into its own business unit, providing a rationalised
structure for potential U.S. government transition material
funding.
"Against the backdrop of weak equity markets and higher interest
rates, we continue to see good levels of potential deal flow across
a range of commodities and jurisdictions. With three material
transactions since May, 2023 is shaping up to be another year of
solid delivery for Trident. With cash in hand, and a maturing
portfolio of high-quality assets, Trident is well positioned to
continue to build into the diversified royalty company of
choice."
Portfolio Update:
Paradox Lithium Royalty Transaction (1, 2)
-- In September, Trident acquired a 2.5% net smelter return
royalty over projects owned by Anson Resources Ltd. in the Paradox
Basin in Utah, USA. The Royalty covers Anson's flagship Paradox
Lithium Project.
-- Anson released a Definitive Feasibility Study for Paradox in
September 2022 outlining Phase 1 operations producing an initial
13,074 tonnes per annum of Lithium Carbonate (Li(2) CO(3) ) for the
first 10 years of a 23-year operation.
-- Anson is well-funded to continue rapidly progressing Paradox,
with A$38.6 million in cash-on-hand as of 30 June 2023.
-- Subsequent to quarter-end, Anson announced a 45% increase in
its JORC 2012 compliant Mineral Resource estimate at Paradox (to a
total contained 1.504Mt Lithium Carbonate Equivalent) (2) ,
directly benefiting Trident's royalty.
Dandoko Gold Royalty Transaction (3)
-- Trident acquired an effective 1% net smelter return royalty
over Dandoko Gold Project permit area in western Mali, owned and
operated by B2Gold Corporation Limited.
-- Dandoko was the flagship asset of ASX-listed Oklo Resources,
which was acquired by B2Gold in September 2022 for A$91.3 million.
For 2023, B2Gold has budgeted US$63 million for Fekola Regional
development area (which primarily includes the Anaconda area and
Dandoko permit).
-- Dandoko is located 25km from B2Gold's operating Fekola mine.
Fekola is B2Gold's largest asset, targeting production of 580-610
Koz at US$565-$625/oz cash cost for FY2023.
-- B2Gold has stated that it believes the metallurgical
characteristics of mineralisation at Dandoko are similar to Fekola
and will be amenable to processing at Fekola.
Thacker Pass Lithium Project (4, 5)
-- Lithium Americas announced that at its Annual General
Meeting, shareholders overwhelmingly approved the separation of the
company into Lithium Americas (Argentina) Corp. and Lithium
Americas Corp., with the reorganisation completing on 3 October
2023. Thacker Pass is held within Lithium Americas Corp.
-- Following the separation, the second tranche of General
Motor's US$650 million investment into the new Lithium Americas
Corp occurred and General Motors is now the largest shareholder,
holding approximately 9.4% of Lithium Americas Corp. shares. The
new structure may also help in obtaining U.S. government assistance
for transition material funding.
-- As previously noted, all permits for construction have been
issued and Lithium Americas has commenced Phase 1 construction,
with a H2 2023 construction budget of US$145 million(8) , targeting
first production in H2 2026.
Gold Offtakes Portfolio
-- Gold deliveries increased by 10% year-over-year in the
quarter, from 65,865 gold ounces in Q3 2022 to 72,642 in Q3 2023.
Stronger deliveries were offset by a reduction in both spot gold
price and volatility across Q3. The net result was a 7%
year-over-year increase in quarterly revenue.
-- Various global geopolitical and macroeconomic factors
emerging in October 2023 have led to an increase in gold price and
volatility, both of which positively impact the gold offtakes.
Mimbula Copper Project (6, 7)
-- Royalty proceeds decreased as expected with the conclusion of
the Minimum Payment Schedule upon Trident fully recovering its
investment in Q2 2023, with the royalty rate adjusting to 0.3% of
gross revenue. The project continues to perform well.
-- Mimbula Phase 1 project of 10,000 tonnes of copper cathode
per annum was officially opened by His Excellency Hakainde
Hichilema, President of the Republic of Zambia, in March 2023.
-- A bankable feasibility study for Phase 2 of the Mimbula
Copper Project, to expand operations to 56,000 tonnes per annum was
completed in August 2022.
-- Early works for Mimbula Phase 2 continue to progress with the
design engineering for the long lead time items, construction of
project offices and electrowinning circuit ("EW") foundations
completed.
-- The initial part of Mimbula Phase 2, consisting of the
construction of the first half of the EW, is planned to be
implemented during the second half of 2023, and first production
from the expanded EW capacity is expected shortly thereafter.
-- Moxico currently anticipates that full production from
Mimbula Phase 2 will commence early-2025.
Koolyanobbing Iron Ore Project
-- Royalty proceeds increased from the previous quarter based on
higher production tonnage but lower iron ore price and AUD exchange
rate. Production tonnage for the quarter reflected typical
variation in the mining sequencing as the royalty does not cover
the entirety of the Deception deposit. Trident fully recovered its
investment in the royalty following the Q2 2023 royalty
payment.(6)
References
1: Source: Trident Royalties announcement dated 4 September 2023
(
https://polaris.brighterir.com/public/trident/news/rns/story/rgz8ljw
)
2: Source: Trident Royalties announcement dated 18 October 2023
(
https://polaris.brighterir.com/public/trident/news/rns/story/xo8gg1w
)
3: Source: Trident Royalties announcement dated 21 August 2023
(
https://polaris.brighterir.com/public/trident/news/rns/story/rnogonw
)
4: Source: Lithium Americas Corp. announcement dated 3 October 2023
( h
ttps://lithiumamericas.com/files/doc_news/Lithium-Americas-Closes-Separation-to-Create-Two-Leading-Lithium-Companies-2023.pdf
)
5: Source: Trident Royalties announcement dated 18 May 2023
(
https://polaris.brighterir.com/public/trident/news/rns/story/r778ojr
)
6: Source: Trident Royalties announcement dated 31 July 2023
(
https://polaris.brighterir.com/public/trident/news/rns/story/rgze1jw
)
7: Source: Moxico Resources PLC corporate website
(
https://www.moxicoresources.com/projects/republic-of-zambia/operations
)
8: Source: Lithium Americas corporate presentation, October 2023
(
https://lithiumamericas.com/investor/events-and-presentations/default.aspx
)
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
/ Enzo Aliaj
------------------------------
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 / Zoe Briggs
------------------------------
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDNKNBPCBDDBDK
(END) Dow Jones Newswires
November 06, 2023 02:00 ET (07:00 GMT)
Trident Royalties (LSE:TRR)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Trident Royalties (LSE:TRR)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024