Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
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Silver nearly $28 now.
On 15 May 2023, Trident announced the acquisition of royalty assets 1 comprising:
· 1.25% net smelter return royalty covering the Gloria and Abundancia veins at La Preciosa;
· 2.00% gross value return royalty covering all other areas of La Preciosa;
· US$8.75 million milestone payment, payable to Trident within 12 months of first silver production at La Preciosa.
La Preciosa comes to production shortly. Looks like TRR is " in the right place at the right time" again. No wonder we've seen multiple director share purchases recently.
There is a small seller dipping 100k shares into the mix. Suites me as it’s affording an opportunity to average in atm.
Usual caveats
Trek
Now again full ask paid. Buying pressure is rising and finally Mms will have to let it go north
I bought in here today after trawling a few good plays the weekend.
I hold ECOR at 76p which led me here.
Similar model, low cost base and now price of gold and copper has moved up it hits bottom line and not in sp atm. Us lithium will take care of itself.
Will add more later
Usual caveats
Trek
Topped up again.
I bought some more yesterday. i started at 50k, not enough shares, went down until i could get a live bid at 30k worth so there aren't many available on the live bid when you want them
The Directors clearly believe this is very undervalued. There have been 8 Director purchases this year with 5 of them in March. The current recovery in commodity prices particularly gold, which TRR has much of its current income from, will soon start to show in its financial statements. TRR is very undervalued and it’s time for that to correct.
I can see this marching upwards to beyond 60p in the nexts few months and this certainly is undervalued based on guaranteed future successful royalties which provide major revenue.
BRV Capricorn
A friend just pointed me to this .. interesting read up... like you @Fincent, I sort of question where the dividend was. But it seems still quite early (perhaps a year or two away yet on first glance). But their website rather makes the strategy clear:
https://tridentroyalties.com/about/strategy
"Trident believes that the acquisition and aggregation of individual royalties and streams has the potential 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, including diversity as to geography (lowering geopolitical risks) and commodity exposure.
Once scale has been achieved, the Company expects strong cash generation to support an attractive dividend policy, providing investors with a desirable mix of inflation protection (through exposure to commodities), capital growth and income, with returns enhanced through conservative levels of leverage."
I thought the same and asked a few about this before buying in and thinking was a few years yet as everything is going into buying more. understood the dynamic and bought more. at what point does a business switch? in some respects i dont care, i guess based on income needed. i like this share, i'm going to watch, buy more over a longer period of time and have it as a income stream when the divi eventually starts
Could it be that this royalty company does not pay a dividend?
I own some of these, some Ecora shares, and some Duke shares.
Ecora are at a large discount to NAV but pay a dividend, their share price is now going up - shareholders buying in now are being paid to hold them and making a gain as the NAV closes.
Whilst not in the commodities royalty sector, Duke paid a dividend from the start. Their CEO explained at an early stage that he did not feel the company's growth would be held back by returning some of the trading cash to shareholders. That seems to have held true and shareholders have been rewarded for their investment from the beginning. Despite the rise in interest rates the share price has held up well and the dividend now provides a pretty good yield.
Both these other companies provide possible examples of why a dividend could be important to the share price of a royalty company. Trident only promises a dividend in the future.
@ slowandsteady... everytime I check the sp and the info as you have perfect ly laid out below I have this expression 🤔....
So gold stocks & PM royalty stocks are up c. 30% over the past 5 weeks.
LAC & most lithium stocks have almost doubled over the same period.
And yet Trident is flat over the past 5 weeks!
To add to the mystery, most smaller PM royalty stocks trading at a discount to NAV are outperforming the royalty sector.
Trident is trading at around the biggest discount to NAV of the entire royalty sector! Most derisked NAV calculations for the stock are around a quid or just below. And its NAV will have increased of late thanks to the gold price rally.
Can anyone solve this Trident Royalties whodunnit, or rather, whyitunderperfoming?
With Gold at a ATH and Lithium rising nicely, expect the SP to recover.
Copper. USd/lb. $417.20. Up $10.15 as of just now Afternoon of 3-4-2024.
Copper is up and well over the $400 marke. As of this afternoon 3rd of April 2024. Copper USd/lb. $413.30 . up $6.25.
In Production. Mimbula Copper Royalty.
Trident owns a 1.25% Gross Revenue Royalty (“GRR”) over all copper produced from the Mimbula Mine in Zambia, which is operated by Moxico Resources Plc.
IMO TRR has brilliant management . The company's PR and keeping present & future investors well informed through very regular interviews and video are 2nd to none.
Advanced stage Antler Copper Royalty.
Trident owns a 0.90% net smelter return royalty (‘NSR Royalty’) over the Antler Copper Project, operated by New World Resources, located in Arizona, USA.
Equinox Gold Los Filos Gold Off take....Trident owns an off-take for 50% of the gold produced at Equinox Gold’s Los Filos Gold Mine up to 1,100,000 delivered ounces.
Equinox Gold RDM Gold Off take...Trident owns an off take for 35% of the gold produced at Equinox Gold’s Santa Luz, Riacho Dos Machados (“RDM”), and Fazenda Mines up to 658,333 delivered ounces.
Equinox Gold Fazenda Gold Offtake... Trident owns an off take for 35% of the gold produced at Equinox Gold’s Santa Luz, Riado Dos Machados (“RDM”), and Fazenda Mines up to 658,333 delivered ounces.
Allied Gold Offtake...Trident owns an off take for 50% of the gold produced at Allied Gold’s Bonikro Mine with no production or time cap on delivered ounces.
Blyvoor Gold Off take...Trident owns Gold off take for 100% of the gold produced, less any applicable streams, at Blyvoor Gold’s Blyvoor Gold Mine up to 2,700,000 million delivered ounces.
Victoria Gold Offtake
Trident owns Gold off take for 25% of the gold produced at Victoria Gold’s Eagle Gold Mine up to 1,111,500 million delivered ounces.
i-80 Gold Off take...Trident owns an off take for a fixed number of ounces of gold produced from i-80’s Ruby Hill, McCoy Cove & Granite Creek. Trident is entitled to delivery of 37,500 oz of gold per annum in 2022 - 2023, with 40,000 oz per annum due between 2024 – 2028.
Lincoln Gold Royalty...Trident owns a 1.5% Net Smelter Royalty (“NSR”) covering the entire Lincoln Gold Project which sits in the centre of the Californian Mother Lode which has historically produced over 13Moz of gold including 3.4Moz from areas directly covered by the NSR.
In Construction.
Equinox Gold Greenstone Offtake...Trident owns an off take for 100% of the gold produced up to 58.5koz p.a. at Equinox Gold’s Mercedes Gold Mine and Greenstone Gold Project until March 1, 2027.
La Preciosa Silver Royalty...Trident owns a 1.25% net smelter return royalty ('NSR Royalty') and 2.00% gross value return royalty ('GVR Royalty') over the La Preciosa Silver-Gold Project in Mexico, which is operated by Avino Silver and Gold Mines. Trident is also entitled to a milestone payment of US$8.75 million within 12 months of first production.
RNS this morning announcing more Director buys this time CEO Adam buying 51500 shares taking his holding to 550000 shares.
Apparently during April 2024, the Australian company Seduli Holdings is going to list on Australian Stock Exchange. The company owns the Lincoln Gold Mine in California USA . TRR has NSR which also includes a 5-mile area of interest which spans the majority of the Mother Lode. The NSR is fully secured by the project assets and reduces to a 0.75% NSR in perpetuity once the royalty has paid US$3M. This mine has a very high grade & is open at depth. I like those 2 words (Mother Load). I am happy to have an interest in this company through TRR. Will be interesting in seeing this company and mine grows into a significant asset.
More Director purchases is a positive sign. The Chairman has bought more following his purchase earlier in the week and the CFO has also purchased.
Great to see the confidence shown by the BOD 👍👍
Most of the deals showing as sells are actually buys .
I think there's plenty to like about this company..very surprised the sp is where it is but I am in no rush.
On top of an existing stake of around £2.6 million. Strong.
Wow, director buys nearly £126k worth of shares. Very nice, big confidence.