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TRR has 8 Gold off takes & 1 gold Royalty, which is the Lincoln Gold Royalty, all on producing mines & bringing in good cash to TRR & of course, there is also the Avino Silver and Gold Mines Ltd. Mexico Silver mine which is in Construction which TRR has Royalty etc on.
Gold has just opened in Asian markets and has gone ballistic Up 50 points at 2121. Let’s see how it’s doing when the UK market opens but it looks as if TRR should have a good start to the month with all its gold royalties.
The Feb contract closed at $2091 on Friday which is new ATH
I also hold Legal & General Gold Mining ETF & Vaneck Junior Gold Miners ETF
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Chief Financial Officer Richard Hughes buys 200,000 shares at 32.13 pence, worth £64,260, on Wednesday. He is now interested in 800,000 shares.
I don't really listen to many people/investors on these boards but Cacher & Mullins58 I do have time for, as I know they are real & Present investors in TRR etc. I follow my own investing instinct and take responsibility for my own judgments. Good & bad. Good Informative Posts needed & when needed Informative Criticism.
Ped , I will try to remember next time. ATB
Proves the market worth of this business and more importantly the execution that they can get a lower rate in today credit market.
PS - Mullins any chance you can add a description to the posts you title RNS, eg, RNS - Credit Facility
New Low-Cost Revolving Credit Facility
Trident Royalties Plc (AIM: TRR, OTC: TDTRF) is pleased to announce that it has entered into a commitment letter with BMO Capital Markets and CIBC for a new US$40 million revolving credit facility (the "RCF"), with an option to increase the facility to US$60 million via an accordion feature. The proceeds will be applied to retire the existing US$40 million secured debt facility provided by Macquarie Bank Limited.
The key terms of the new RCF are:
- US$40 million senior secured revolving credit facility;
- Additional US$20 million accordion feature, allowing further debt capacity, subject to certain conditions;
- Interest coupon of SOFR plus 2.5 - 4.5% (depending on leverage ratios), resulting in interest savings of up to US$1.3 million per annum if fully drawn, relative to current SOFR plus 5.75% rate1;
- Revolving facility, with flexibility to be drawn and repaid, with the undrawn portion only subject to a standby fee of 0.88% - 1.58% per annum, providing further savings relative to the current fully drawn term facility;
- Three-year term, with a one-year extension option.
Closing and drawdown of the RCF are expected in early Q1 2024 and are subject to the execution of definitive documentation and related security, and other conditions customary for a financing of this nature. Net debt currently stands at approximately US$21 million, post completion of the Antler acquisition.
Adam Davidson, Chief Executive Officer of Trident commented:
"This refinancing marks a key step in Trident's evolution, as we develop our capital structure by introducing a flexible lower-cost debt facility which has the potential to expand to support future acquisitions. Lowering our cost of capital directly improves our competitiveness, increasing our ability to deploy capital to drive value accretive growth. We are delighted to have the support of both BMO and CIBC, who are leading financiers to the sector and share our long-term vision for building a substantial diversified mining royalty business."
Https://www.mining.com/web/global-ev-mandates-would-require-388-new-mines-fraser-institute/
I am in SSL - KRR - ARTG & SKE .
Same MS. I have a good sized position in SSL. Similarly TFPM and OR. I see value in the mid tier precious metals royalty space.
Cacher & Brockwl i couldn't of explained it any better. & Cacher I am also a long term holder of SSL.
Thanks for clarifications, I've gone back over RNSs and think these are the key paragraphs;
14/4/22 - Trident has also secured a guarantee from Premier Gold Mines Limited (a subsidiary of Equinox) that the original annual offtake cap of 58,500 ounces will be delivered in full in 2024 and 2025, when Greenstone is expected to be operating. Any shortfall in deliveries will be compensated at a rate of US$23.50 per ounce.
13/12/21 - The acquired offtake contracts provide 'royalty-like' exposure with returns driven by the gold price, volatility, production profile and exploration success. Over the last 10 years, the weighted average calculated margin of the acquired offtake contracts would be approximately equivalent to an 1.33%. The illustrative returns and revenues set out in this announcement are based on that rate and a gold price of US$1,800/oz. Over the last 15 years the NSR equivalent would be approximately 1.56%. Between February 2020 and June 2021, under Orion's ownership, the acquired contracts have delivered an NSR equivalent return of approximately 1.7%.
Interestingly the 13 Dec RNS also introduced the 36p Primary Bid offer to pay for this, an absolute screaming bargain at 33p now IMHO
GLA
Should read 7-10 days, sorry.
That's right. Trident pay the lowest gold price over a pre-agreed period (usually 7-20 days), then sell it on at spot. Offtake contracts are a margin game, and Trident outsource the buying and selling to a trading house.
If memory serves me correctly, Greenstone should pay Trident around $1.5m per annum.
If you want a nice chunky royalty exposure to Greenstone, you'll need to buy Sandstorm.
Offtake agreements aren't the same as pure royalties.
They are just an agreement to BUY the produce at a pre agreed price.
Trident would then sell it on at a profit hopefully.
It should be a nice earner, but nothing like what you are thinking.
£117m per annum would be nice, Pedrobull, but please note the words "up to" in the statement "Trident owns an off take for 100% of the gold produced up to 58.5koz per year .....". This suggests that the final figure may be, or even may likely be, less, or even substantially less, than this upper limit. Time will tell of course but I will keep my fingers crossed.
Thanks MS.
So on this basis "Trident owns an off take for 100% of the gold produced up to 58.5koz per year at Equinox Gold’s Mercedes Gold Mine and Greenstone Gold Project until March 1, 2027."
if Gold sells at $2k per ounce is this 58.5K x $2K = $117M per annum?
Lets hope they start full production soon given it only runs until sometime in 2027 hopefully calendar year end
Adam Davidson, Chief Executive Officer of Trident commented:
"The Antler Royalty is a substantial addition to our business and represents the fifth royalty acquired by Trident in 2023. Antler is an exciting polymetallic deposit and provides Trident with exposure to a highly attractive suite of future-facing base metals, including copper and zinc. The recently announced mining rights acquisition by New World highlights the significant potential for further growth in the resource and mine life.
"We are excited to add another royalty to the Trident portfolio and continue to see significant deal flow and opportunities for further value accretive growth."
Equinox Gold’s Greenstone Project: 96% Complete, Commissioning Underway. https://www.equinoxgold.com/news/equinox-golds-greenstone-project-96-complete-commissioning-underway/