Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
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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/
Equinox hits commissioning milestone at one of the largest gold mines in Canada. Equinox Gold reported today that its Greenstone gold project in Ontario is 96% complete, with pre-commissioning activities ongoing in most of the main process plant areas and wet commissioning underway in select areas. 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.
Article 7
British / Mexican
ARTICLE 7
Expropriation 1. Investments of investors of either Contracting Party shall not be nationalised or expropriated, either directly or indirectly through measures having effect equivalent to nationalisation or expropriation (“expropriation”) in the territory of the other Contracting Party except for a public purpose, on a non-discriminatory basis, in accordance with due process of law and against compensation.
2. Such compensation shall amount to the fair market value of the expropriated investment immediately before the expropriation or before the subsequent expropriation became public knowledge; shall include interest at a normal commercial rate until the date of payment; shall be made without delay, be effectively realisable and be freely transferable. Valuation criteria shall include the going concern value, asset value including declared tax value of tangible property, and other criteria, as appropriate, to determine the fair market value.
3. The investor affected shall have a right, under the law of the Contracting Party making the expropriation, to prompt review, by a judicial or other independent authority of that Contracting Party, of his or its case and of the valuation of his or its investment in accordance with the principles set out in this Article. A
Chinese / Mexican
1. Neither Contracting Party may expropriate or nationalize an investment either directly or indirectly through measures tantamount to expropriation or nationalization (“expropriation”), except
(a) for a public purpose;
(b) on a non-discriminatory basis;
(c) in accordance with due process of law; and
(d) on payment of compensation in accordance with paragraph 2 below.
2. Compensation shall:
(a) be equivalent to the fair market value of the expropriated investment immediately before the expropriation occurred. The fair market value shall not reflect any change in value because the intended expropriation had become publicly known earlier;
(b) be paid without delay;
(c) include interest at a commercially reasonable rate, from the date of expropriation until the date of actual payment; and
(d) be fully realizable and freely transferable. 3. Without prejudice to the provisions set forth in Chapter III Section One, an investor whose investment is expropriated, shall have the right to a prompt review of its case by a court or by any other competent authority, pursuant to the applicable
I wouldn't write off Sonora,
KDNC appear to be using a British / Mexican trade agreement that is near identical to the one I believe Ganfeng are:
Cadence Minerals (AIM/Aquis: KDNC) advises that the Company and its subsidiary REM Mexico Limited ("REMML") have issued a Request for Consultations and Negotiations ("Request") to the Government of Mexico under the United Kingdom-Mexico Bilateral Investment Treaty ("BIT").
The Request concerns the purported revocation of the mining concessions for the Sonora Lithium Project (the "Project") by the Mexican General Directorate of Mines as announced by Cadence on 31 August 2023, and related acts and omissions by Mexico. The affected concessions include those granted to Mexilit S.A. de CV ("Mexilit") and Minera Megalit S.A. de CV ("Megalit"), these being joint venture companies in which Cadence holds a 30% stake through REMML.
In their Request, Cadence and REMML have identified various BIT obligations that have been breached by Mexico, including Mexico's obligation not to unlawfully expropriate the investments of UK investors such as Cadence and REMML and its obligation to treat such investments fairly and equitably.
Ganfeng's dispute agreement:
https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/759/download
The agreement Cadence minerals are disputing:
https://assets.publishing.service.gov.uk/media/5a74ba5ae5274a3cb2866b4c/6860.pdf
http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=311428233803936219
Yes MS, Sonora is just an option for TRR at the moment. Personally I've written off the chances of that coming to fruition, so if it does that'll be an exceptional bonus for Trident.
Excellent presentation from Adam on the IMC platform - the video is linked below.
https://youtu.be/UxbFMiVS7vI?si=vmME7cfPkAxkslGe
Regarding Sonora Lithium. TRR has only paid a $2 Million refundable deposit for option to buy Royalty etc. TRR has option to go forward with investment at any time up till 2025 , or can decide to withdraw from deal at any time up till 2025 at no financial cost + TRR gets $2 Million deposit back. TRR management protected the company and its cash on this potential project because it is in Mexico,with new Government. Hope it advances but if not TRR does not lose any cash. I like the other great Lithium assets TRR has in USA. 1 of which is in construction , also is a tier 1 company.
Sonora Lithium Investment Update
Request for treaty negotiations with Mexico
Cadence Minerals (AIM/Aquis: KDNC) advises that the Company and its subsidiary REM Mexico Limited ("REMML") have issued a Request for Consultations and Negotiations ("Request") to the Government of Mexico under the United Kingdom-Mexico Bilateral Investment Treaty ("BIT").
The Request concerns the purported revocation of the mining concessions for the Sonora Lithium Project (the "Project") by the Mexican General Directorate of Mines as announced by Cadence on 31 August 2023, and related acts and omissions by Mexico. The affected concessions include those granted to Mexilit S.A. de CV ("Mexilit") and Minera Megalit S.A. de CV ("Megalit"), these being joint venture companies in which Cadence holds a 30% stake through REMML.
In their Request, Cadence and REMML have identified various BIT obligations that have been breached by Mexico, including Mexico's obligation not to unlawfully expropriate the investments of UK investors such as Cadence and REMML and its obligation to treat such investments fairly and equitably.
In accordance with Article 10 of the BIT, Cadence and REMML have requested consultations and negotiations with Mexico with a view to resolving the dispute amicably. The BIT provides for disputes to be resolved by international arbitration if they cannot be resolved by consultation and negotiation.
Cadence and REMML have engaged leading international law firm Clifford Chance as counsel for the BIT process. The Clifford Chance team representing Cadence and REMML specialise in mining-related investment treaty arbitration cases.
Cadence CEO Kiran Morzaria commented: "The team at Clifford Chance have many years of experience in mining-related investment treaty arbitration, and have successfully resolved similar cases in the past. With their guidance, we are hopeful that a constructive solution can be reached through consultations and negotiations with Mexico under the BIT. "
IMO only. No. The workforce at the mine is apparently 100% Mexican. Avino operates the Avino silver mine and mill 19km from their in construction La Preciosa silver mine. Avino silver mine and mill is already producing concentrates which are sold to Samsung C&T U.K. Ltd. Avino intends to begin processing stockpiled material from La Preciosa in late H2 2023 at its mill, before commencing production from fresh ore in 2024.
The Royalty Assets comprise:
1.25% net smelter return royalty (the "NSR Royalty") covering the Gloria and Abundancia veins;
2.00% gross value return royalty (the "GVR Royalty") covering all other areas of La Preciosa; and
US$8.75 million milestone payment (the "Milestone Payment"), payable within 12 months of first silver production at La Preciosa.
Anyone else on the live Investor Meet just now?
Interesting graph on how successful Franco Nevada have been in the gold market.
TRR focus is different in that they are focussing on diversified royalties; Precious, Industrial and the "green" battery markets.
60% of the NAV is in Tier1 jurisdictions Canada, USA & Australia so low risk.
41% Lithium
32% Gold
19% Copper
6% Silver
2% Iron ore
Https://www.mining.com/web/exxon-to-start-lithium-production-for-evs-in-the-us-by-2027/
Is this at risk of government interference/nationalisation i wonder?