8 August
2024
Trident Royalties
Plc
("Trident" or the
"Company")
Q2 2024 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 June 2024.
HIGHLIGHTS
· On 13
June 2024, it was announced that the boards of directors of Deterra
Global Holdings Pty Ltd ("Bidco") and Trident Royalties Plc
reached an agreement on the terms and conditions of a recommended
all-cash offer by Bidco for the entire issued and to be issued
share capital of Trident (the "Offer"). The Offer is being effected by
means of a Court-sanctioned scheme of arrangement under Part 26 of
the Companies Act 2006 (the "Scheme") and is subject to the terms
and conditions set out in the shareholder circular relating to the
Scheme published by Trident on 4 July 2024 (the "Scheme Document"). Under the terms of
the Offer, each Trident shareholder will be entitled to receive 49
pence in cash for each Trident share.1 Bidco is a direct
wholly owned subsidiary of Deterra Royalties Limited ("Deterra").1
· The
Offer represents a 42% premium to the closing price per Trident
share of 34.5 pence on 23 April 2024 (being the date prior to the
submission of Deterra's first non-binding, conditional proposal),
and values Trident's entire issued and to be issued share capital
at approximately £144 million.1
· On 26
July 2024, Trident announced the results of the Court Meeting (as
defined in the Scheme Document) and General Meeting (as defined in
the Scheme Document) held in connection with the Offer. At the
Court Meeting, the requisite majorities of Scheme Shareholders (as
defined in the Scheme Document) voted in favour of the resolution
to approve the Scheme. At the General Meeting, the requisite
majority of Trident shareholders voted to pass the special
resolution proposed at the General Meeting.2
· As of
7 August 2024, the Company had an unaudited net debt position of
US$22.8 million, with quarterly receipts of US$2.65 million in
Q2.
|
Royalty / Stream
(US$M)
|
Q2 2024
|
Q1 2024
|
% Change
|
Q2 2023
|
|
Gold
offtake portfolio
|
2.25
|
1.52
|
48%
|
1.15
|
|
Koolyanobbing iron ore royalty*
|
0.20
|
0.47
|
-57%
|
0.29
|
|
Mimbula
copper royalty**
|
0.12
|
0.06
|
100%
|
0.75
|
|
Lincoln
gold royalty***
|
0.08
|
0.15
|
-50%
|
0.15
|
|
Total
|
2.65
|
2.20****
|
20%
|
2.34
|
* Calculated using Reserve Bank of
Australia FX rates: 30 June 2023 (0.6630), 28 March 2024 (0.6532),
and 28 June 2024 (0.6624)
** Reflects the step-down in royalty
rate following the conclusion of the minimum payment schedule of
US$5M in Q2 2023
*** Reflects the sale of 50% of the
royalty in Q1
**** Excludes the $0.78m proceeds
from the partial sale of the Lincoln Gold royalty
Adam Davidson, Chief Executive Officer of Trident
commented:
"It's with mixed emotions that I note the approval by
shareholders of the sale of Trident Royalties. While I had full
confidence in Trident's ability to continue to grow and add value
to the portfolio, I'm pleased to have delivered a great outcome for
investors, with a 145% shareholder return since our IPO in
2020.
I
would like to take this opportunity to thank some of the key
supporters of Trident that were integral to the inception of the
strategy and supported us as we grew the business from one royalty,
to over 20 assets. They all worked tirelessly to grow Trident from
a simple concept, to one of the best performing royalty companies
over its lifespan.
I
would also like to thank shareholders for their consistent and
steadfast support. I consider it the personal highlight of my
career to have been entrusted with your capital. I hope to have the
opportunity to work with many of you again
soon."
References
1:
Source: Trident Royalties announcement dated 13 June
2024
(
https://polaris.brighterir.com/public/trident/news/rns/story/rmdp89r
)
2:
Source: Trident Royalties announcement dated 26 July
2024
(
https://polaris.brighterir.com/public/trident/news/rns/story/rgppk7r
)
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. In relation to the mineral
resource estimates, the company confirms that the
material assumptions and technical parameters
underpinning the estimates in the relevant market announcements
continue to apply and have not materially changed, and
it is not aware of any new information or data
that materially affects the estimates.
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
Adam Davidson / Richard
Hughes
|
www.tridentroyalties.com
+1 (757)
208-5171 / +44 7967 589997
|
|
Grant Thornton (Nominated
Adviser)
Colin Aaronson / Samantha Harrison /
Elliot Peters
|
www.grantthornton.co.uk
+44 020
7383 5100
|
|
Liberum Capital Limited (Joint
Broker)
Scott Mathieson / Cara
Murphy
|
www.liberum.com
+44 20
3100 2184
|
|
Stifel Nicolaus Europe Limited
(Joint Broker)
Callum Stewart / Ashton
Clanfield
|
www.stifelinstitutional.com
+44 20
7710 7600
|
|
Tamesis Partners LLP (Joint
Broker)
Richard Greenfield
|
www.tamesispartners.com
+44 20
3882 2868
|
|
St Brides Partners Ltd (Financial PR
& IR)
Susie Geliher / Charlotte
Page
|
www.stbridespartners.co.uk
+44 20
7236 1177
|
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.