2 May 2024
Trident
Royalties Plc
("Trident" or
the "Company")
2023
Full Year Results
Trident Royalties Plc (AIM: TRR, OTC: TDTRF), the diversified mining royalty company, today announces
its full year results for the year ended 31 December 2023.
The Annual Report and Accounts for the year
ended 31 December 2023 and Notice of the 2023 Annual
General Meeting will be made available to download from the
Company's website at www.tridentroyalties.com in
due course.
Chairman's Statement
The last year
has been challenging for the global
financial industry: in 2022, geopolitical tensions rose with a war
in Ukraine and then, in 2023, war broke out in the Middle East.
Both have potential for escalation, as we have seen with the recent
attacks on ships in the Red Sea. Grant Shapps, the UK Defence
Secretary, described the world as moving from a post-war period to
a pre-war period where "combined threats risk tearing apart the
rules-based international order."
Within the mining industry, we
experience these rising geopolitical tensions through an ever-
shrinking field on which it is prudent to invest.
Twenty years ago, China, India and
Russia were open for foreign resource investment, but this is no
longer the case. In the last ten years, large parts of Africa have
been effectively closed to Western investment with military coup
d'etats in Sudan, Guinea, Burkina Faso, Niger, Mali, Gabon and
Chad. In more recent years, several Central and South American
governments have been elected by a populace more sceptical of the
mining industry with Panama, in 2023, choosing to permanently close
its world-class Cobre Panama Mine in the face of political
protests.
Taking these factors into account,
the supply side of our industry is going to face increasing
challenges whether from regulatory delays, community dissent or
events of expropriation. The Mining Journal's World Risk Report
amply demonstrates this where the number of mining jurisdictions
that are considered high risk has increased from 18 to 36 in the
last five years. We can expect commodity prices to rise over time
due to these difficulties, as well as the entirely appropriate, but
ever-increasing, costs associated with developing mines in serenity
with modern community, environmental, safety and other
standards.
For most investors in junior
mining companies, the height of the rising wall is believed too
high to scale. Many junior mining companies have seen their shares
descend in value over time in the face of repeated (and dilutive)
capital raises, delays in permitting, changing commodity prices,
political interference, capricious litigation and project
expropriation. It is therefore unsurprising that, of the junior
mining companies listed on the TSX Venture Exchange and AIM
markets, approximately 60% and 35% of them, respectively, have a
market cap of less than US$10m.
What does this mean for Trident
Royalties?
First and foremost, it means that
Trident is likely to have more and more opportunities to help
provide a capital solution to our counterparties in the resource
industry. Second, we must continue to be selective about which
projects to back. In 2023, we demonstrated our screening process by
filtering out all but four material projects that received Board
approval for investment; namely, two royalties in the USA (copper
and lithium), one in Mexico (silver), one in Mali
(gold).
The decision to invest in our Mali
asset was taken after extensive deliberation. We considered a range
of factors, but ultimately concluded that the risk was justified on
the basis of (i) the long term presence of the operator (B2 Gold)
in Mali, (ii) the size of the operator; (iii) the importance of the
Fekola mine to the operator's business (circa 600k oz per annum),
(iv) the potential for near-term cash flow; (v) exploration upside,
and (vi) the linkage of a substantial part of the consideration to
royalty receipts.
We can assure our shareholders
that we will continue to exercise prudence in our decision making.
Trident has a strong and effective board, as well as a highly
competent management team. The Board meets regularly, including the
CEO and CFO, to consider and debate investment opportunities and
strategy. The Board has a broad diversity of opinion, skills and
experience, and is always conscious of its responsibility, as a
fiduciary, to our shareholders.
We continue to maintain our
strategy of building a diversified portfolio of royalties, which
broadly mirrors the commodity exposure of the global mining
sector and where
the asset owner demonstrates a commitment to safe, efficient,
cost-effective operations where ESG impacts are managed in a
responsible manner. Over time, our business model will lead to our
investors being exposed to a diversified range of commodities and a
balanced exposure to geopolitical risks. Over time, our portfolio
will also mature and eventually underpin a dividend when we can
reliably predict strong cash flows from long-life assets. As
previously stated, the Board recognises the importance of returning
cash to its shareholders.
Since listing in 2020 with a
single royalty, we have made good progress on this journey with our
portfolio now consisting of 21 assets, of which 12 are cash
flowing. In tandem, we have been able to progressively reduce our
cost of capital, most recently transitioning our debt funding to a
revolving credit facility, significantly lowering borrowing costs
and increasing balance sheet flexibility. This improves our
competitive positioning for asset acquisitions and will enhance
returns to shareholders.
Finally, I would like to add my
thanks to our shareholders and long-term supporters throughout a
difficult year.
We believe that the next
few years will be very exciting and I look
forward to reporting on our progress.
Chief Executive Officer's Statement
2023 saw Trident capitalise on the
wider economic landscape of softer equity markets by pursuing an
aggressive acquisition strategy which added to the scale and
diversification of the portfolio. Our objective of acquiring and
aggregating value accretive royalties has been yielding results as
evidenced in increasing revenue returns totalling US$11.0m in 2023,
and we are confident in future revenue growth as portfolio assets
either expand or advance into production.
Due to weak equity markets, 2023
saw mine operators increasingly seek alternative sources of
financing leading to a total of four material acquisitions in the
year. In the first half of 2023, we acquired royalties over the La
Preciosa Silver Project, while in the latter part of the year, we
announced transactions over the Paradox Lithium Project, the Antler
Copper Project and the Dandoko Gold Project, further bolstering our
exposure to lithium, copper and gold.
In addition to the growth of the
portfolio through acquisitions, we have seen material organic
growth as several key assets progress through project milestones.
At the beginning of 2023, we confirmed the completion of a sale of
several pre-production gold royalties acquired shortly after
listing in 2020, in exchange for cash proceeds of up to US$15.55m,
crystalising a 140% ROI. This strengthened our cash position and
the value unlocked by this transaction supported our objective to
successfully reduce our cost of capital through a restructuring of
our existing debt facility. Other key acquisitions made shortly
after listing in 2020 have now had time to mature, with the
royalties over the Koolyanobbing Iron Ore Mine and the Mimbula
Copper Mine having fully recovered their initial acquisition costs
by mid-2023, with further mine life remaining at both
projects.
One of Trident's cornerstone
assets, our portfolio of gold offtakes, performed well across 2023,
delivering increased year-on-year revenues across all four quarters
buoyed by strong gold prices and volatility. With the Greenstone
Gold Project targeting first production in H1 2024, we expect the
growth in ounces delivered to Trident to continue into 2024. At
Thacker Pass, we were delighted to note favourable court rulings at
the start of the year allowing the project, the largest known
lithium resource in North America, to commence construction. The
project reaffirmed its status as a Tier 1 asset, with the operator
Lithium Americas announcing it had secured US$650m in funding from
General Motors and recently announcing it has received a
conditional commitment from the U.S. Department of Energy for a
US$2.26 billion loan under the Advanced Technology Vehicles
Manufacturing Loan Program.
As Thacker Pass advances through
the construction phase, we have looked to increase our interaction
with North American investors and were pleased to be admitted to
trading on the OTC market allowing us to increase accessibility and
strengthen our engagement with US investors. This strategy was
further strengthened with two further acquisitions over royalties
located in the US in 2023 and is a focus for 2024.
Following the completion of
several deals in the latter half of the year, we were able to
further reduce our cost of capital with a new debt facility which
also provides greater flexibility in managing our cash and
increases our potential borrowing capacity. By lowering our cost of
capital, we have directly increased our competitiveness with
regards to making new acquisitions.
I would like to thank our
shareholders for their continued support throughout a difficult
year for equity markets across the sector. I stand confident in our
investment strategy and believe that the material organic growth we
are seeing across our portfolio, as well our active acquisition of
value-accretive royalties, will continue to drive long-term revenue
growth and deliver shareholder returns.
Operational Review
Lithium
Lithium's primary use is in the
manufacture of batteries, supporting the transition away from
fossil fuels and enabling vehicle manufacturers across all
industries to electrify their fleets in order to meet stringent net
zero carbon emission targets.
Governments globally have brought
in legislation to accelerate the transition to EVs, including
Europe and UK's targets to ban the sale of petroleum powered cars.
This rapid transition has resulted in an increase in demand for
lithium batteries. As well as uses in electric vehicles, lithium is
also used in mobile phones, laptops and other electronic
devices.
Trident is exposed to lithium
through its acquisition of 60% of a royalty over the Thacker Pass
Lithium Project in Nevada, which is the largest known lithium
resource in the USA. Trident has also secured the right to acquire
an indirect 1.5% Gross Revenue Royalty over the Sonora Lithium
Project, Mexico and holds a 2.5% NSR over the Paradox Basin Project
in the USA.
Copper
Due to copper's electrical and
thermal conductivity, it is used in most electrical systems
including the battery and wiring required for the charging of
electric vehicles. EVs require up to four times more copper than
traditional petrol or diesel vehicles, and renewable energy systems
use up to six times more copper than fossil fuel systems therefore
global demand for copper has significantly increased.
The development of electric
transport, electricity transmission grids and renewable power
generation is forecasted to have pushed global demand for copper up
to 55Mt/year by 2040[1].
Trident is exposed to copper
through its royalty over the advanced Pukaqaqa Asset in Peru, the
Antler Project in USA, and the producing Mimbula Mine in
Zambia.
Mineral Sands
Mineral sands, also commonly known
as 'heavy mineral sands', contain concentrated amounts of
economically important minerals such as zircon and titanium
minerals, including rutile and ilmenite.
Mineral sands are used most
frequently in household products such as suncream, inks, paints and
tiles but are also used in medical devices, welding materials,
purification systems as well as other industrial uses.
Trident has exposure to minerals
sands through its acquisition of a 0.25% Free on Board royalty over
the Kwale Mineral Sands Project in Kenya.
Iron Ore
Iron ore is the essential
component of the global iron and steel industries with 98% of mined
iron ore being used in the production of steel.
The construction and transport
industries are reliant on the iron ore and steel industry, and it
is critical to the development of energy infrastructure such as the
production of wind turbines.
Trident is exposed to iron ore
through its 1.5% Free on Board royalty over certain tenements at
the Koolyanobbing Iron Ore Mine in Australia.
Silver
As well as the traditional
investment into this precious metal as a hedge against inflation,
silver due to its conductivity, is now a key component in
electrical systems including solar panels and those used in
electric vehicles such as automatic braking, power steering and
navigation systems. The increase in demand for electric vehicles
and the move to autonomous driving vehicles has significantly
increased the global demand for silver.
Trident is exposed to silver
through its 1.25% NSR Royalty and 2.00% GVR Royalty over certain
tenements at the La Preciosa Project in Mexico.
Gold
Gold offers investors a hedge
against inflation and in 2023 the global gold price increased by
13%. Trident holds a portfolio of gold offtake contracts over 10
mines. An offtake contract is a contract in which the operator
agrees to sell, and the purchaser agrees to buy, refined gold
produced from the mine over which the offtake is granted. Offtake
returns are driven by the direction and volatility of gold prices
but like royalties are not impacted by operator capex or operating
costs.
The key commercial terms of the
contract are stated in the table below. A positive margin can
normally be made on the resale of the gold. The average margin is
typically larger during periods of increased volatility and
higher/rising gold prices.
Trident also hold a 1% NSR royalty
over the Dandoko Gold Project, operated by B2 Gold in Mali, and a
1.5% NSR over the Lincoln Gold Mine, USA.
Further details of the Group's
investments are provided on its website at
www.tridentroyalties.com.
Gold Offtakes, worldwide
Trident has a portfolio of gold
offtake contracts, comprising of offtake contracts over 10 mines
across six countries. The details of the offtake contracts
are outlined below.
Asset(s)
|
Operator
|
Country
|
Status
|
Quotation period
|
Contract Key Terms
|
Los Filos
|
Equinox Gold
|
Mexico
|
Production
|
6 Days
|
Offtake on 50% of all refined gold
production,
up to cap of 1,100,000 ounces of
refined gold
|
Eagle
|
Victoria Gold
|
Canada
|
Production
|
7 Days
|
Offtake on 25% of all refined gold
production,
up to cap of 1,111,500 ounces of
refined gold
|
Blyvoor
|
Blyvoor Gold
|
South Africa
|
Production
|
8 Days
|
Offtake on 100% of all refined
gold production (after
deduction of streamed ounces), up
to cap of 2,700,000
ounces of refined gold
|
RDM, Fazenda & Santa
Luz
|
Equinox Gold
|
Brazil
|
Production
|
6 Days
|
Offtake on 35% of all refined gold
production, up to a cap of 658,333 ounces of refined
gold.
|
Bonikro
|
Allied Gold
|
Cote d'Ivoire
|
Production
|
6 Days
|
Offtake on 50% of all refined gold
production
(after deduction of streamed
ounces), no cap
|
i-80 Gold
|
i-80 Gold
|
USA
|
Production
|
7 Days
|
Offtake on 100% of refined gold
production subject to an annual ounce cap
|
Sugar Zone
|
Silver Lake Resources
|
Canada
|
Construction/
Restart
|
7 Days
|
Offtake on 80% of the gold doré
produced at Silver Lake Resources' Sugar Zone Gold Mine up to
961,250 delivered ounces
|
Greenstone
|
Equinox Gold
|
Canada
|
Construction
|
6 Days
|
Offtake on 100% of refined gold
production, up to cap of 58,500 ounces per year through March 2027.
If annual production cap not achieved in 2024-25, then Trident is
paid US$23.50/oz on any shortfall
|
The gold offtake portfolio
continued to develop as several projects continued to ramp up, and
exploration activities were completed across various assets in the
portfolio. Quarterly revenue increased across all four quarters and
the gold offtakes portfolio generated US$6.9m in revenue this year,
an increase of 12.8%, in comparison to 2022 in which US$6.1m in
revenue was received.
Post period end, Trident completed
the acquisition of a further incremental offtake at the Sugar Zone
Gold Mine resulting in Trident holding three offtakes over the
project for a combined 80% of the gold doré produced up to 961,250
delivered ounces.
The outlook for the offtake
portfolio is strong heading into 2024 with the commencement of
production at Greenstone expected in H1 2024 expected to deliver
increased ounces, alongside the potential for increased production
from Blyvoor, i-80 Gold and Santa Luz. Sugar Zone is expected to
benefit from the merger between Red 5 and Silver Lake Resources,
providing a larger operator with a stronger balance sheet to
support the recommencement of production in due course.
Producing Royalties
Koolyanobbing, Australia - Iron
ore
Key facts
· Location: Australia
· Operator: Mineral Resources Ltd (ASX: MIN)
· Commodity: Iron ore
· Mine
Type: Open pit, Direct Ship Ore
· Stage: Production
· Royalty: 1.5% Free on Board
· Total Reserves & Resources:
o 9.3Mt @ 59.9% Fe Reserves (Deception Pit)
o 19.5Mt @59.9% Fe Resources (Deception Pit)
o 40.8Mt @ 58.2% Fe Reserves (Yilgarn)
o 108.6Mt @ 56.8% Fe Resources (Yilgarn)
Trident owns a 1.5% Free on Board
revenue royalty covering part of the producing Koolyanobbing Iron
Ore Operation in Western Australia. The royalty is over tenements
which cover part of the Deception Pit and all of the Claw Pit at
Koolyanobbing.
The royalty provides Trident with
cash flow from a producing iron ore asset operated by an
established mining company in a worldclass jurisdiction. Following
the Q2 2023 royalty payment Trident has now fully recovered its
investment into the asset.
During the year Trident received
US$1.88m (2022: US$1.55m) in royalty income.
Mimbula, Zambia -
Copper
Key facts
· Location: Zambia
· Operator: Moxico Resources Plc (private)
· Commodity: Copper
· Mine
Type: Open Pit
· Stage: Production
· Royalty: Gross Revenue Royalty 0.3%
· Total Reserves and Resources
• 93.7Mt @ 0.97% Total Copper ("TCu") Resources
• 67.5Mt @ 0.92% TCu Reserves
Trident held a 1.25% GRR over all
copper produced from the Mimbula Mine in Zambia, operated by Moxico
Resources PLC. In Q2 2023 Trident recovered its investment in full
and following the end of the Minimum Payment Schedule the GRR
decreased to 0.3%, with a subsequent decrease to 0.2% once the
royalty has been paid on 575,000 tonnes of copper.
Moxico during the year has
successfully ramped up production and capacity is expected to
double in 2024 with the full Phase 2 expansion to 56,000 tonnes
expected to commence in mid-2025.
During the year Trident received
US$1.6m (2022: US$2.0m) of payments from Mimbula, the decrease in
royalty payments was expected due to the conclusion of the minimum
payment schedule.
Kwale, Kenya - Mineral
Sands
Key facts
· Location: Kenya
· Operator: Base Resources (ASX:BSE)
· Commodity: Mineral Sands
· Mine
Type: Open Pit
· Stage: Production
· Royalty: 0.25% Free on Board
· Total Reserves and Resources
• 21Mt
@ 2.2% Heavy Mineral ("HM") Reserves
• 184Mt @ 1.5% HM Resources
Trident acquired a 0.25% Free on
Board royalty over the Kwale Mineral Sands Project with an
effective acquisition date of 1 October 2022. Kwale commenced
production in 2013, with operator Base Resources extending the
scheduled mine life to the end of 2024.
Royalties Advancing towards Production
Thacker Pass, USA -
Lithium
Key facts
· Location: USA
· Operator: Lithium Americas Corp. (NYSE/TSX:LAC)
· Commodity: Lithium
· Mine
Type: Open pit
· Stage: Construction
· Royalty: 60% interest in a 1.75% gross revenue royalty (1.05%
net to Trident), assuming the buyback is completed, as detailed
below
· Total Reserves: 3.7m tonnes of Lithium Carbonate Equivalent
("LCE") at 3,160ppm Li
In 2021 Trident acquired a 60%
interest in a GRR over the Thacker Pass Lithium Project for
US$28.0m. This project is the largest known lithium deposit in
North America and the operator Lithium Americas is targeting 80,000
tonnes per annum of battery-quality lithium carbonate production
capacity in two phases of 40,000 tonnes per annum. Phase 1
production is expected to commence in 2027.
Thacker Pass is a critical asset
in the USA's development of its own critical minerals supply chain.
Thacker Pass entered the construction phase this year after several
key permitting decisions were reached. An appeal relating to the
issuance of the Record of Decision for Thacker Pass was dismissed
by the US District Court, District of Nevada subject to minor
additional work which was successfully completed in May 2023. This
decision was subsequently appealed to the 9th U.S.
Circuit Court of Appeals, which rejected the arguments the
opponents had put forth in their appeal and ruled that the U.S.
Bureau of Land Management, which approved Thacker Pass, had acted
"reasonably and in good faith".
In February 2023, General Motors
invested US$650m toward project development and entered into a
10-year offtake agreement to purchase Phase 1 production to support
production of up to 1 million electric vehicles per
year.
In March 2024, Lithium
Americas received a conditional
commitment from the U.S. Department of Energy for
a US$2.26 billion loan under the Advanced Technology
Vehicles Manufacturing Loan Program for financing the construction
of the processing facilities at Thacker Pass.
La Preciosa, Mexico -
Silver
Key facts
· Location: Mexico
· Operator: Avino Silver & Gold mines Ltd
(TSX:ASM)
· Commodity: Silver
· Mine
Type: Underground
· Stage: Construction
· Royalty: 1.25% NSR and 2.00% gross value return
royalty
· Total Resources: 137Moz Ag Equivalent - Indicated 17.4Mt @
202 g/t Ag Eq & Inferred 4.4Mt @ 170 g/t Ag Eq
In May 2023 Trident acquired a
1.25% NSR Royalty over the area covering the Gloria and Abundancia
veins and a 2.00% GVR Royalty over the surrounding area at the La
Preciosa Silver Project in Mexico. Additionally, Trident is
entitled to a milestone payment of US$8.75m from the operator Avino
Silver and Gold Mines ("Avino") within 12 months of first
production. The milestone payment may be paid up to 50% in shares
of Avino. Avino intends to begin processing stockpiled material
from La Preciosa in H1 2024 at its mill, before commencing
production from fresh ore in 2024. Avino intends to ramp up annual
silver production from La Preciosa to circa 3 million ounces by
2027, increasing to 3.5 million ounces in 2028. With a current
total Mineral Resource estimate of 120Moz of silver and 224,000
ounces of gold, La Preciosa is expected to be a long-life asset
with further expansion potential.
Gaining exposure to silver was a
strategic decision for Trident, as silver has the characteristics
of a precious metal as well as an increasingly significant
industrial use due to its usage in electrical systems in EVs and
solar panels.
Antler, USA - Copper
Key facts
· Location: USA
· Operator: New World Resources Ltd (ASX:NWC)
· Commodity: Copper, Zinc
· Mine
Type: Underground
· Stage: Advanced
· Royalty: 0.90% NSR Royalty
· Total Reserves: 11.4Mt @ 4.1%
Cu-Equivalent
Trident acquired in Q4 2023 a
0.90% NSR royalty over the current tenement package which covers
the entire Antler Copper Project, including the copper-zinc Antler
deposit and five named exploration targets. The Royalty also
includes a 0.45% NSR royalty over any ground subsequently acquired
by New World within 5km of the Project Area Royalty
boundary.
The Antler Project has a JORC
(2012) Compliant Mineral Resource estimate of 11.4Mt @ 4.1%
Cu-equivalent for approximately 467,000 tonnes of Cu-equivalent. An
Enhanced Scoping Study published in May 2023 outlined a
13-year mine life with average annual production
of 32,700 tonnes copper equivalent.
A Pre-Feasibility Study on the
Project is expected in Q4 2024, with commencement of
pre-construction development works targeted for Q1 2025. Together
with Trident's investment and a recent AUD$5m investment from a
leading mining private equity firm, New World is well funded to
advance through the remainder of its planned feasibility studies.
Trident considers there to be significant upside potential, with
New World concurrently targeting exploration opportunities across
its land holdings.
Paradox Basin, USA -
Lithium
Key facts
· Location: USA
· Operator: Anson Resources Ltd (ASX:ASN)
· Commodity: Lithium, Bromine
· Mine
Type: Brine
· Stage: Advanced
· Royalty (sliding scale NSR): 2.50% NSR
Royalty
· Total Resources:
o Indicated Resource of 366,737t of LCE and 1.91Mt of
Bromine
o Inferred Resource of 1.14Mt of LCE and 5.70Mt of
Bromine
In August 2023 Trident acquired a
2.50% NSR royalty over projects owned by Anson Resources in the
Paradox Basin in Utah, USA including the Paradox Lithium Project
and the Green Lithium River Project. Trident will also be entitled
to 2.00% of the net sales proceeds of any projects at which point
the royalty would no longer apply to the sold asset. The Paradox
Lithium Project is an advanced stage lithium brine project,
targeting use of direct lithium extraction.
In October 2023 the operator
announced a 45% increase in the JORC (2012) Compliant Mineral
Resource to 1.504Mt of Lithium Carbonate Equivalent (LCE) and
7.61Mt of Bromine and the strategic acquisition of the Green Energy
Lithium project directly adjacent to Paradox.
Dandoko, Mali - Gold
Key facts
· Location: Mali
· Operator: B2Gold Corporation Limited (TSX:BTO)
· Commodity: Gold
· Mine
Type: Open pit
· Stage: Advanced
· Royalty: 1% NSR Royalty
· Total Resources:
o Indicated 7.95Mt @ 1.33g/t Au, for 400Koz Au
o Inferred 1.55Mt @ 0.79g/t Au, for 34Koz Au
In September 2023 Trident acquired
a 50% interest in a 2% net smelter return royalty over the Dandoko
Gold Permit owned by B2 Gold Corporation Limited.
Dandoko is located 25km from
B2Gold's largest operating asset, the Fekola Mine. B2 Gold have
stated they believe the metallurgical characteristics of
mineralisation at Dandoko are similar to Fekola and will be
amenable to processing at Fekola.
B2Gold has completed a study
confirming the potential for near-term production by trucking
saprolite material to Fekola. The company has budgeted US$79m to
facilitate Phase 1 saprolite mining from the Anaconda and Dandoko
areas. Of the budgeted US$79m, US$16m has been allocated for haul
road construction to Fekola from the Anaconda and Dandoko
projects.
B2Gold is also currently advancing
an engineering study of the 'Fekola Regional Development Plan' to
assess the potential for a new, standalone 4Mtpa processing
facility located at Anaconda, with Resources from Anaconda and
Dandoko forming the basis for the engineering study. Fulfilment of
this plan will permit more substantial production in the medium
term.
Pukaqaqa, Peru - Copper
Key facts
· Location: Peru
· Operator: Nexa Resources SA (TSX:NEXA)
· Commodity: Copper, Molybdenum
· Mine
Type: Open pit
· Stage: Exploration
· Royalty (sliding scale NSR): Three royalties
· Total Resources: 349.1Mt @ 0.40% Cu
Trident holds a portfolio of three
royalties over the Pukaqaqa Copper project, an advanced stage
copper molybdenum asset located in Peru and operated by
South-American focused Nexa Resources. The Pukaqaqa Project has NI
43-101 compliant Measured and Indicated Resources of 309Mt at 0.41%
Cu (approximately 1.26m tonnes of contained copper), with an
additional Inferred Resource of 40.1Mt at 0.34% Cu (for 136,340
tonnes contained copper and related molybdenum credits).
The most recent technical report
contemplates an open-pit mining operation to feed a 30,000
tonne-per-day processing plant to produce copper and molybdenum
concentrates over an initial 19-year mine life.
Lincoln, USA - Gold
Key facts
· Location: California, USA
· Operator: Seduli Holdings Pty (private)
· Commodity: Gold
· Mine
Type: Underground
· Stage: Production
· Royalty: 1.5% net smelter return royalty (over down dip
extension zone)
· Total Resource: 958Kt @ 9.29g/t Au for 286koz gold
Trident acquired a 1.5% NSR gold
royalty covering the entire Lincoln gold project in California. The
royalty includes a 5-mile area of interest which spans the majority
of the exploration area. The royalty is fully secured by the
project assets and reduces to a 0.75% NSR in perpetuity once the
royalty has paid US$3m.
The Lincoln Gold Mine is the only
permitted project and processing plant on the Californian Mother
Lode, providing it with significant leverage to aggressively
explore and acquire additional tenure for further
upside.
Despite achieving first gold pour
in H1 2022, the operator Seduli Holdings Pty, suspended production
operations to undertake resource expansion activities. Trident
agreed to provide various waivers in relation to its security
position in exchange for the implementation of a minimum payment
schedule which will replace the revenue expected from Stage
1.
During the year Trident received
US$0.60m of payments from Lincoln under the minimum payment
schedule.
Sonora, Mexico -
Lithium
Key facts
· Location: Mexico
· Operator: Ganfeng Lithium (SEHK:1772)
· Commodity: Lithium
· Mine
Type: Open pit
· Stage: Advanced
· Royalty: 50% interest in a 3.0% indirect gross revenue
royalty (1.5% net to Trident)
· Total Reserves: 244Mt @ 3,480ppm - 4,515kt LCE
In 2022 Trident announced that
Sonoroy, a 50%-held joint venture between Trident and Marmottes
Capital Limited, entered into an agreement to acquire a 3.0% Gross
Revenue Royalty (1.5% attributable to Trident) over the Sonora
Lithium Project. The terms of the agreement were the long-stop date
to complete the acquisition of the royalty is the earlier of 31
January 2025, or the date which is six months after the first
royalty payment.
However, Bacanora Minerals Ltd.
have pursued legal action against the validity of the royalty.
Subsequently, in September the General Directorate of Mines in
Mexico issued a formal decision that nine lithium
concessions, which comprise the Sonora Lithium Project, were
cancelled. Gangfeng have indicated that they believe that its
Mexican subsidiaries have complied with their obligations as
required by Mexican law, and therefore have filed administrative
review recourses before the Secretary of Economy.
The conditions requiring Trident
to provide funding in respect of Sonoroy to enable it to complete
the acquisition remain at Trident's discretion and includes a
provision that, at the time of funding, no changes in Mexico's
regulatory regime materially affects the Sonora project and that
ongoing litigation regarding the royalty is favourably resolved. If
Trident elects to exit the joint venture, the repayment date of an
initial loan made by Trident to Sonoroy of US$2.5m is due six
months from notification of termination of the Sale and Purchase
Agreement or Joint Venture Agreement. Trident will continue to
monitor the situation carefully but currently intends to maintain
its rights in respect of the asset. The long stop date to complete
the transaction has been extended to 31 December 2026.
2023 Financial Review
During 2023, Trident made
significant progress across many areas of the business. The gold
offtake portfolio continued to mature, with increasing production
volumes and a 13% increase in cash flows. Looking forward, the
commissioning of the Greenstone mine in Canada and developments at
other assets should provide further growth in offtake revenues in
2024. An important milestone was achieved with the Koolyanobbing
and Mimbula royalty investments, as the initial capital outlay was
recovered during 2023, approximately three years after the initial
investments.
The proceeds from the sale of the
Australian gold royalty portfolio, were successfully redeployed
during 2023 into a number of new assets, further enhancing the
scale and diversity of the portfolio. We look forward to near term
cash flow from the La Preciosa silver deposit in Mexico and
positive project developments at the Antler, Paradox Basin and
Dandoko projects.
The evolution of the Group's
capital structure continued during 2023, with the announcement of a
new revolving credit facility with BMO and CIBC, two leading
financiers in the mining sector. The new facility provides several
benefits; materially lowering interest costs, providing additional
capacity with an accordion feature to increase the facility to
US$60m and reducing ongoing standby costs, as the facility is
revolving and can be drawn as required. Trident is well positioned
with a diverse portfolio of royalty assets, combined with a strong
balance sheet to pursue future growth opportunities.
Royalty and Offtake Transactions
The Group acquired the following
royalties during the year:
· La
Preciosa silver royalties in Mexico (1.25% NSR Royalty over the
Gloria and Abundancia veins and a 2.00% GVR Royalty over the
surrounding area) and a U$8.75m milestone payment, acquired for
US$8m (US$7m on completion and a further US$1m upon receipt of the
milestone payment);
· Dandoko gold project in Western Mali (1% NSR Royalty)
acquired for total consideration of US$6.25m (US$3.75m upfront and
a further US$2.5m as production linked milestone
payments);
· Paradox Basin lithium project in the USA (2.5% NSR Royalty)
acquired for total consideration of US$10m (US$1.5m upfront and a
further US$8.5m as production linked milestone
payments);
· Antler copper project in the USA (0.9% NSR Royalty covering
the Antler deposit and five named exploration areas and a 0.45% NSR
Royalty over a wider area) acquired for total consideration of
A$11m; and
· Kwale mineral sands project in Kenya (0.25% FOB
Royalty).
In addition, on 22
February 2023 the Group
completed the sale of several pre-production exploration stage gold
royalties over assets in Australia for cash proceeds of up
to US$15.55m.
Statement of Financial Position
Royalty intangible assets at 31
December 2023, consist of US$104.98m cost, less US$5.36m
amortisation and additions of US$28.41m relating
to new acquisitions and US$6.73m relating to the reclassification
of Mimbula as a royalty intangible asset, resulting in a
total net book value of US$134.76m representing
the Thacker Pass, Pukaqaqa, Koolyanobbing, Mimbula and Lincoln
projects together with the acquisitions outlined.
The royalty financial instrument
representing the fair value of the Mimbula royalty was reclassified
as a royalty intangible asset in July 2023, following completion of
the minimum payment schedule. The royalty financial instrument had
been classified as fair value through profit and loss with the fair
value gains and losses recognised
in 'revaluation of royalty financial assets' line
item in the income statement. The value at the beginning of
the financial year was US$7.65m, US$1.50m royalty income was
received in during H1 and a fair value increase of US$0.58m was
recognised in the income statement, resulting in a value of
US$6.73m at reclassification.
Trade and other receivables
totalling US$9.81m
(2022: US$10.40m) includes US$5.87m receivable from Macquarie bank
relating to gold offtake trades which settled after the year end,
US$0.57m in respect of Q4 2023 royalty income due from
Koolyanobbing and Mimbula receivable after the
year-end. Other receivables also include US$2.50m in
respect of the Sonora lithium project cash deposit, treated as an
interest free loan.
Trade and other payables
totalling US$2.20m
(2022: US$2.28m) consisted predominantly of US$0.99m payables
relating to the gold received under the offtake contracts, which
had been sold but not yet settled with the operators, trade
payables, social security and taxation and accruals with all
amounts within agreed payment terms.
At the year-end the net gold
receivable amount was US$4.88m.
Deferred contingent consideration
of US$8.19m represents contingent payments to the vendors of the La
Preciosa, Paradox and Dandoko assets based on the operators meeting
certain production targets. The amounts have been discounted
and treated as non-current liabilities, given managements'
assessment of when the projects will become operational and the
targets achieved.
Total cash at the end of the year
was US$3.25m (US$8.13m including the net gold trading receivables)
and total debt was US$30.00m.
Total net assets increased to
US$108.56m during the year from US$104.87m at 31 December 2022
largely due to acquisitions outlined.
Statement of Comprehensive Income and
EBITDA
The Group reported a gross profit
of US$4.16m (2022: US$2.99m) from reported net revenues of US$9.52m
(2022: US$7.85m). The increase in net revenue was from the
gold offtake portfolio, Koolyanobbing and Lincoln. The fair value
gain on the Mimbula was US$0.58m (2021: US$2.19m) predominantly due
to the payment of the minimum payment schedule in lieu of the mine
currently in ramp up and therefore not materially depreciating in
value.
A profit on disposal of US$6.94m
was made on sale of Australian pre-production gold royalties - with
gross proceeds of US$14.30m. The Group made a foreign
exchange gain totalling US$0.02m (2022: US$1.01m loss). Finance
charges totalled US$3.55m including US$4.48m in interest payments
to Macquarie Bank and US$1.28m gain relating to amortised finance
arrangement fees and warrant charges and other finance charges.
Profit after taxation was US$2.39m (2022: US$3.68m loss) and
basic earnings per share of 0.82c (2022: 1.28c loss).
The Group generated net revenue
from its gold offtake portfolio of US$6.88m (2022: US$6.07m),
US$1.87m (2022: US$1.43m) at Koolyanobbing, US$0.60m (2022:
US$0.35m) from Lincoln and US$0.17m (2022: $Nil) from other assets.
The amortisation charge was US$5.37m (2022: US$4.86m) and total
Group overheads of US$5.27m (2022: US$4.67m) including US$0.41m
(2022: $0.47m) non-cash share-based payments and other charges;
resulting in an operating loss of US$1.11m (2022: US$1.67m).
The gold offtakes, Koolyanobbing and Mimbula assets are amortised
on a unit of production basis over the life of the
assets.
EBITDA and Adjusted EBITDA
The below table summarises EBITDA
and adjusted EBITDA:
|
|
Year ended 31 December
2023
|
Year
ended 31 December 2022
|
|
|
US$'000
|
US$'000
|
Profit/(loss) after tax
|
|
2,392
|
(3,684)
|
Income tax
|
|
1,411
|
(945)
|
Amortisation
|
|
5,365
|
4,857
|
Finance costs net of finance
income
|
|
2,631
|
6,002
|
EBITDA
|
|
11,799
|
6,230
|
Net foreign exchange
losses
|
|
(23)
|
1,007
|
Income from financial instrument
through profit and loss
|
|
1,500
|
2,000
|
Revaluation of royalty financial
assets
|
|
(578)
|
(2,193)
|
Share-based payments charge and
other non-cash items
|
|
408
|
474
|
Profit on disposal of intangible
asset
|
|
(6,944)
|
(1,862)
|
Adjusted EBITDA
|
|
6,162
|
5,656
|
The following table shows total
royalty receipts for the period for royalty intangible assets, net
offtake interests, disposals and financial assets:
|
|
Year ended 31 December
2023
|
Year
ended 31 December 2022
|
|
|
US$'000
|
US$'000
|
Royalty interests
|
|
2,643
|
1,780
|
Offtake interests (net
proceeds)*
|
|
6,878
|
6,070
|
Royalties due or received from
royalty financial assets
|
|
1,500
|
2,000
|
Proceeds from Mercedes gold
offtake amendment - (gross)
|
|
-
|
3,706
|
Proceeds from the Australian gold
royalties sale - (gross)
|
|
14,300
|
-
|
|
|
25,321
|
13,556
|
* Offtake
interests
An offtake contract is a contract
pursuant to which the operator agrees to sell, and the purchaser
(Trident) agrees to buy, refined gold produced from the mine or
mines over which the offtake is granted. The key commercial terms
include those relating to the amount of gold to be purchased, the
duration of the contract, and the payment terms. Trident has the
right to purchase gold at the lowest reference price in a defined
quotation period, which is typically 6-8 days. The revenue
from these contracts is disclosed net of the purchase costs in the
income statement. Net proceeds comprises gross offtake revenue of US$522.0m less purchase costs of
US$515.1m.
Cashflow and Borrowings
Net cash decreased in the period
by US$13.33m (2022: US$28.37m). Financing outflows were
US$14.74m (2022: US$30.06 inflow) resulting from the repayment of
US$10m of the Macquarie Bank facility and financing costs;
US$3.28m (2022: US$54.90m) was invested into acquiring royalty
assets, after allowing for proceeds received from asset sales, cash
from royalty financial assets and finance income, as noted above,
and US$4.69m generated (2022: US$3.53m used) in operating
activities.
During 2023 the net gold trading
receivable decreased by US$0.24m to US$4.88m. Depending on the
timing and settlement of gold trades and the payments to operators,
this figure fluctuates and can be a receivable or payable item. The
Group had a separate US$5.00m short term overdraft facility with
Macquarie Bank to provide funding for the gold trading receivable
over the 2-day settlement period if required. A similar US$2.00m
overdraft facility has been arranged with CIBC, alongside the new
revolving credit facility and the Macquarie overdraft was
terminated upon the refinancing.
The cash figure (excluding the net
gold trading receivable) at 31 December 2023 was US$3.25m (31
December 2022: US$16.58m) with the majority held in US dollars with
HSBC Bank plc and Macquarie Bank Limited. On 19 February 2024, Trident entered
into a new fully secured US$40m revolving credit facility with an
option to increase the facility to US$60m via an accordion feature
with BMO Capital Markets and CIBC. The proceeds are to be applied
to retire the existing US$40m secured debt facility
provided by Macquarie Bank Limited.
Taxation
During the period the Group paid
US$0.34m (2022: US$Nil) in respect of tax due. A deferred tax
asset was recognised totalling US$1.49m (2022: US$2.01m) primarily
in relation to taxable losses incurred in the Company and US
subsidiaries. Following the sale of the Australian gold royalties
outlined above, the deferred tax losses held in the Australian
subsidiary were used during the year; resulting in a deferred tax
debit to the income statement of US$1.97m (2022: US$0.68m
credit).
Consolidated Statement of Comprehensive
Income
for the year ended 31 December
2023
Continuing operations
|
Notes
|
|
Year ended
31 December 2023
|
Year ended
31 December 2022
|
|
|
|
US$'000
|
US$'000
|
|
|
|
|
|
Royalty and offtake related
revenue
|
3
|
|
9,521
|
7,850
|
Amortisation of royalty intangible
assets
|
12
|
|
(5,365)
|
(4,857)
|
Gross profit
|
|
|
4,156
|
2,993
|
|
|
|
|
|
Administrative expenses
|
4
|
|
(5,267)
|
(4,667)
|
Operating loss
|
|
|
(1,111)
|
(1,674)
|
|
|
|
|
|
Revaluation of royalty financial
assets
|
13
|
|
578
|
2,193
|
Profit on disposal of intangible
assets
|
14
|
|
6,944
|
1,862
|
Finance income
|
7
|
|
915
|
241
|
Other finance costs
|
8
|
|
(3,546)
|
(6,244)
|
Net foreign exchange
gains/(losses)
|
|
|
23
|
(1,007)
|
|
|
|
|
|
Profit/(loss) before taxation
|
|
|
3,803
|
(4,629)
|
Income tax
|
9
|
|
(1,411)
|
945
|
Profit/(loss)/profit attributable to owners of the
parent
|
|
|
2,392
|
(3,684)
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
Items that may be subsequently
reclassified to profit and loss:
|
|
|
|
|
Exchange gains on translation of
foreign operations
|
|
|
36
|
141
|
Other comprehensive income for the period, net of
tax
|
|
|
36
|
141
|
Total comprehensive income/(loss) attributable to owners of
the parent
|
|
|
2,428
|
(3,543)
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
Basic and diluted earnings/(loss)
per share (U.S. cents)
|
10
|
|
0.82
|
(1.28)
|
Consolidated Statement of Financial
Position
As at 31 December 2023
|
Notes
|
|
31 December 2023
|
31 December
2022
|
|
|
|
US$'000
|
US$'000
|
Non-current assets
|
|
|
|
|
Royalty intangible
assets
|
12
|
|
134,755
|
104,975
|
Royalty financial assets at fair
value through profit and loss
|
13
|
|
-
|
7,653
|
Deferred tax asset
|
9
|
|
1,489
|
2,005
|
Total non-current assets
|
|
|
136,244
|
114,633
|
|
|
|
|
|
Current assets
|
|
|
|
|
Trade and other
receivables
|
17
|
|
9,805
|
10,398
|
Cash and cash
equivalents
|
18
|
|
3,248
|
16,577
|
|
|
|
13,053
|
26,975
|
Assets classified as held for
sale
|
14
|
|
-
|
6,750
|
Current assets
|
|
|
13,053
|
33,725
|
Total assets
|
|
|
149,297
|
148,358
|
Current liabilities
|
|
|
|
|
Trade and other
payables
|
19
|
|
2,203
|
2,277
|
Current tax liabilities
|
|
|
225
|
-
|
Borrowings
|
21
|
|
5,064
|
6,775
|
Total current liabilities
|
|
|
7,492
|
9,052
|
Non-current liabilities
|
|
|
|
|
Contingent
consideration
|
20
|
|
8,188
|
408
|
Borrowings
|
21
|
|
23,814
|
31,576
|
Derivative financial
liability
|
21
|
|
607
|
2,452
|
Deferred tax liability
|
9
|
|
637
|
-
|
Total non-current liabilities
|
|
|
33,246
|
34,436
|
Total liabilities
|
|
|
40,738
|
43,488
|
Net assets
|
|
|
108,559
|
104,870
|
|
|
|
|
|
Equity attributable to owners of the parent
|
|
|
|
|
Share Capital
|
22
|
|
3,855
|
3,835
|
Share Premium
|
22
|
|
107,220
|
106,387
|
Share-based payments
reserve
|
23
|
|
919
|
511
|
Foreign exchange
reserve
|
|
|
295
|
259
|
Retained Earnings
|
|
|
(3,730)
|
(6,122)
|
Total equity
|
|
|
108,559
|
104,870
|
Consolidated Statement of Changes in Equity
For the year ended 31 December
2023
|
Share capital
|
Share premium
|
Share based payments reserve
|
Foreign exchange reserve
|
Retained earnings
|
Total
|
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
Balance at 1 January
2021
|
3,307
|
87,046
|
403
|
118
|
(2,804)
|
88,070
|
|
|
|
|
|
|
|
Loss for the year
|
-
|
-
|
-
|
-
|
(3,684)
|
(3,684)
|
Other comprehensive
income:
|
|
|
|
|
|
|
Exchange gains on translation of
foreign operations
|
-
|
-
|
-
|
141
|
-
|
141
|
Total comprehensive
income
|
-
|
-
|
-
|
141
|
(3,684)
|
(3,543)
|
|
|
|
|
|
|
|
Transaction with owners in their
capacity as owners:
|
|
|
|
|
|
|
Issue of share capital
|
528
|
19,613
|
-
|
-
|
-
|
20,141
|
Share issue costs
|
-
|
(272)
|
-
|
-
|
-
|
(272)
|
Share-based payment
charge
|
-
|
-
|
108
|
-
|
366
|
474
|
Total transactions with owners
recognised directly in equity
|
528
|
19,341
|
108
|
-
|
366
|
20,343
|
Balance at 31 December
2022
|
3,835
|
106,387
|
511
|
259
|
(6,122)
|
104,870
|
|
|
|
|
|
|
|
Profit for the year
|
-
|
-
|
-
|
-
|
2,392
|
2,392
|
Other comprehensive
income:
|
|
|
|
|
|
|
Exchange gains on translation of
foreign operations
|
-
|
-
|
-
|
36
|
-
|
36
|
Total comprehensive
income
|
-
|
-
|
-
|
36
|
2,392
|
2,428
|
|
|
|
|
|
|
|
Transaction with owners in their
capacity as owners:
|
|
|
|
|
|
|
Issue of share capital
|
20
|
833
|
-
|
-
|
-
|
853
|
Share-based payment
charge
|
-
|
-
|
408
|
-
|
-
|
408
|
Total transactions with owners
recognised directly in equity
|
20
|
833
|
408
|
-
|
-
|
1,261
|
Balance at 31 December
2023
|
3,855
|
107,220
|
919
|
295
|
(3,730)
|
108,559
|
Consolidated Statement of Cash Flows
for the year ended 31 December
2023
|
Notes
|
Year to
31 December 2023
|
Year to
31 December 2022
|
|
|
US$'000
|
US$'000
|
Cash flow from Operating
Activities
|
|
|
|
Profit/(loss) before
taxation
|
|
3,803
|
(4,629)
|
Revaluation of royalty financial
assets
|
13
|
(578)
|
(2,193)
|
Profit on sale of intangible
asset
|
14
|
(6,944)
|
(1,862)
|
Finance income
|
7
|
(915)
|
(241)
|
Other finance costs
|
8
|
3,546
|
6,244
|
Net foreign exchange
losses
|
|
37
|
1,442
|
Amortisation of royalty intangible
asset
|
12
|
5,365
|
4,857
|
Share-based payments
charge
|
|
408
|
474
|
Net cash generated before changes in working
capital
|
|
4,722
|
4,092
|
Movement in payables
|
|
(60)
|
1,424
|
Movement in receivables
|
|
62
|
(9,048)
|
Net cash generated/(used) in operating activities before
tax
|
|
4,724
|
(3,532)
|
Corporate income tax
paid
|
|
(34)
|
-
|
Net cash generated/(used) in operating
activities
|
|
4,690
|
(3,532)
|
Cash flows from investing activities
|
|
|
|
Payments for acquisition of
royalty intangible assets1
|
12
|
(19,485)
|
(60,518)
|
Net cash received from sale of
intangible assets
|
14
|
13,292
|
3,528
|
Cash received from royalty
financial assets
|
13
|
2,000
|
1,875
|
Finance income
|
7
|
915
|
215
|
Net cash used in investing activities
|
|
(3,278)
|
(54,900)
|
Cash flows from financing activities
|
|
|
|
Issue of share capital
|
22
|
-
|
6,438
|
Share issue costs
|
22
|
-
|
(272)
|
Proceeds from
borrowings
|
21
|
-
|
40,000
|
Repayment of borrowings
|
21
|
(10,000)
|
(10,000)
|
Issue costs of credit
facility
|
|
-
|
(1,576)
|
Finance costs
|
8
|
(4,742)
|
(4,529)
|
Net cash (used)/generated from financing
activities
|
|
(14,742)
|
30,061
|
Net (decrease) in cash and cash
equivalents during the year
|
|
(13,330)
|
(28,371)
|
Cash at the beginning of year
|
18
|
16,577
|
45,637
|
Effect of foreign exchange rate on
cash and cash equivalents
|
|
1
|
(689)
|
Cash and cash equivalents at the end of the
year
|
18
|
3,248
|
16,577
|
1 During 2023, non-cash consideration of US$0.75m in shares and
$8.19m of contingent consideration were recognised in relation to
the acquisition of royalty intangible assets. See note 12 for
further details.
Company Statement of Financial Position
As at 31 December 2023
|
Notes
|
|
31 December 2023
|
31 December
2022
|
|
|
|
US$'000
|
US$'000
|
Non-current assets
|
|
|
|
|
Investment in
subsidiaries
|
15
|
|
113
|
113
|
Royalty intangible
asset
|
12
|
|
6,685
|
-
|
Royalty financial assets at fair
value through profit and loss
|
13
|
|
-
|
7,653
|
Amount due from subsidiary
undertakings
|
16
|
|
99,704
|
90,553
|
Deferred tax asset
|
9
|
|
323
|
221
|
Total non-current assets
|
|
|
106,825
|
98,540
|
|
|
|
|
|
Current assets
|
|
|
|
|
Trade and other
receivables
|
17
|
|
3,615
|
4,041
|
Cash and cash
equivalents
|
18
|
|
1,667
|
9,537
|
Current assets
|
|
|
5,282
|
13,578
|
Total assets
|
|
|
112,107
|
112,118
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
Trade and other
payables
|
19
|
|
486
|
322
|
Current liabilities
|
|
|
486
|
322
|
|
|
|
|
|
Non-current Liabilities
|
|
|
|
|
Derivative financial
liability
|
21
|
|
607
|
2,452
|
Total liabilities
|
|
|
1,093
|
2,774
|
Net assets
|
|
|
111,014
|
109,344
|
|
|
|
|
|
Equity
|
|
|
|
|
Share Capital
|
22
|
|
3,855
|
3,835
|
Share Premium
|
22
|
|
107,220
|
106,387
|
Share-based payments
reserve
|
23
|
|
919
|
511
|
Foreign exchange
reserve
|
|
|
(23)
|
(23)
|
Retained Earnings
|
|
|
(957)
|
(1,366)
|
Total equity
|
|
|
111,014
|
109,344
|
Company Statement of Changes in Equity
For the year ended 31 December
2023
|
Share capital
|
Share premium
|
Share based payments reserve
|
Foreign exchange reserve
|
Retained losses
|
Total
|
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
Balance at 1 January
2022
|
3,307
|
87,046
|
403
|
(23)
|
(412)
|
90,321
|
|
|
|
|
|
|
|
Loss for the year
|
-
|
-
|
-
|
-
|
(1,320)
|
(1,320)
|
Total comprehensive income for the
year
|
-
|
-
|
-
|
-
|
(1,320)
|
(1,320)
|
|
|
|
|
|
|
|
Issue of share capital
|
528
|
19,613
|
-
|
-
|
-
|
20,141
|
Share issue costs
|
-
|
(272)
|
-
|
-
|
-
|
(272)
|
Share options lapsed
|
-
|
-
|
(366)
|
-
|
366
|
-
|
Share-based payment
charge
|
-
|
-
|
474
|
-
|
-
|
474
|
Total transactions with owners
recognised directly in equity
|
528
|
19,341
|
108
|
-
|
366
|
20,343
|
Balance at 31 December
2022
|
3,835
|
106,387
|
511
|
(23)
|
(1,366)
|
109,344
|
|
|
|
|
|
|
|
Profit for the year
|
-
|
-
|
-
|
-
|
409
|
409
|
Total comprehensive income for the
year
|
-
|
-
|
-
|
-
|
409
|
409
|
|
|
|
|
|
|
|
Issue of share capital
|
20
|
833
|
-
|
-
|
-
|
853
|
Share-based payment
charge
|
-
|
-
|
408
|
-
|
-
|
408
|
Total transactions with owners
recognised directly in equity
|
20
|
833
|
408
|
-
|
-
|
1,261
|
Balance at 31 December
2023
|
3,855
|
107,220
|
919
|
(23)
|
(957)
|
111,014
|
Company Statement of Cash Flows
for the year ended 31 December
2023
|
Notes
|
Year to
31 December 2023
|
Year to
31 December 2022
|
|
|
US$'000
|
US$'000
|
Cash flows from operating
activities
|
|
|
|
Profit/(loss) before
taxation
|
|
332
|
(1,364)
|
Revaluation of royalty financial
asset
|
13
|
(578)
|
(2,193)
|
Finance income
|
|
(463)
|
(113)
|
Intercompany interest
received
|
|
(250)
|
(831)
|
Other finance
(income)/costs
|
8
|
(1,645)
|
1,694
|
Net foreign exchange
losses/(gains)
|
|
(5)
|
127
|
Amortisation of royalty intangible
asset
|
|
64
|
-
|
Share-based payments
charge
|
|
408
|
474
|
Net cash used before changes in working
capital
|
|
(2,137)
|
(2,206)
|
Increase in payables
|
|
249
|
86
|
Increase in receivables
|
|
(272)
|
(2,154)
|
Net cash used in operating activities before
tax
|
|
(2,160)
|
(4,274)
|
Corporate income tax
paid
|
|
-
|
-
|
Net cash used in operating activities
|
|
(2,160)
|
(4,274)
|
Cash flows from investing activities
|
|
|
|
Cash received from royalty
financial asset
|
13
|
2,000
|
1,875
|
Finance income
|
|
463
|
113
|
Net foreign exchange
gains
|
|
-
|
7
|
Loans granted to subsidiary
undertakings
|
16
|
(22,994)
|
(28,696)
|
Loan repayments from subsidiary
undertakings
|
16
|
14,817
|
-
|
Net cash used in investing activities
|
|
(5,714)
|
(26,701)
|
Cash flows from financing activities
|
|
|
|
Issue of share capital
|
22
|
-
|
6,438
|
Share issue costs
|
22
|
-
|
(272)
|
Net cash generated from financing
activities
|
|
-
|
6,166
|
Net decrease in cash and cash
equivalents during the year
|
|
(7,874)
|
(24,809)
|
Cash at the beginning of year
|
|
9,537
|
34,480
|
Effect of foreign exchange rate on
cash and cash equivalents
|
|
4
|
(134)
|
Cash and cash equivalents at the end of the
year
|
|
1,667
|
9,537
|
Notes to the financial statements
1. GENERAL INFORMATION
Trident Royalties plc is a company
incorporated and domiciled in the United Kingdom. The Company is a
public limited company, which is listed on AIM of the London Stock
Exchange, incorporated and domiciled in England and Wales. The
address of the registered office is 6th Floor 60
Gracechurch Street, London, United Kingdom, EC3V 0HR.
2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
The principal accounting policies
applied in the preparation of these financial statements are set
out below. The policies have been consistently applied throughout
the year presented, unless otherwise stated.
Basis of preparation
The Group's consolidated financial
statements and the Parent Company financial statements have been
prepared in accordance with UK-adopted international accounting
standards and the requirements of the Companies Act
2006.
The financial statements have been
prepared under the historical cost convention except for financial
assets at fair value through profit and loss account, contingent
consideration and financial derivative liabilities which are
measured at fair value. The principal accounting policies adopted
are set out below. The Group financial statements are presented in
US Dollars (US$) and rounded to the nearest thousand.
The preparation of the Group
financial statements in conformity with IFRS requires the use of
certain critical accounting estimates. It also requires management
to exercise its judgement in the process of applying the Group's
accounting policies. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates
are significant to the consolidated financial statements are
explained below.
Going Concern
The financial position of the
Group and cash flows as at 31 December 2023 are set out
above. The Group meets its day-to-day working capital and
other funding requirements with its current cash, raised through
equity placings, proceeds from the disposal of assets and revenue
from its cash generating royalties. The Group actively manages its
financial risks as set out in note 24 and operates Board-approved
financial policies, that are designed to ensure that the Group
maintains an adequate level of headroom and effectively mitigates
financial risks.
On the basis of current financial
projections (at least 12 months from the date of approval of the
financial statements), the Directors have a reasonable expectation
that the Group has adequate resources to continue in operational
existence, and meet its liabilities as they fall due, for the
foreseeable future. Accordingly, the Directors consider it
appropriate to adopt the going concern basis in preparing these
financial statements.
Standards, interpretations and amendments to published
standards not yet effective
The Directors have considered
those standards and interpretations, which have not been applied in
the financial statements, that are in issue but not yet effective
and do not consider that they will have a material impact on the
future results of the Group or Company.
Basis of consolidation
The consolidated financial
statements present the results of the Company and its subsidiaries
as if they formed a single entity. Intercompany transactions and
balances between group companies are therefore eliminated in
full.
At 31 December 2023, the
consolidated financial statements combine those of the Company with
those of its subsidiaries. Subsidiaries are entities over which the
Group has control. Control is achieved when the Group is exposed,
or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its
power over the investee.
Generally, there is a presumption
that a majority of voting rights result in control. To support this
presumption and when the Group has less than a majority of the
voting or similar rights of an investee, the Group considers all
relevant facts and circumstances in assessing whether it has power
over an investee, including:
· The
contractual arrangement with the other vote holders of the
investee;
· Rights arising from other contractual arrangements;
and
· The
Group's voting rights and potential voting rights
The Group re-assesses whether or
not it controls an investee if facts and circumstances indicate
that there are changes to one or more of the three elements of
control. Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. They are deconsolidated from
the date that control ceases. Assets, liabilities, income and
expenses of a subsidiary acquired or disposed of during the year
are included in the Group financial statements from the date the
Group gains control until the date the Group ceases to control the
subsidiary.
Investments in subsidiaries are
accounted for at cost less impairment within the Company financial
statements. Where necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies used in
line with those used by other members of the Group
Segment Reporting
Operating segments are reported in
a manner consistent with the internal reporting provided to the
chief operating decision maker which is considered to be the
Board.
Foreign currency
Transactions entered into by Group
entities in a currency other than the currency of the primary
economic environment in which they operate (their "functional
currency") are recorded at the rates ruling when the transactions
occur. Foreign currency monetary assets and liabilities are
translated at the rates ruling at the reporting date.
Exchange differences arising on the retranslation of unsettled
monetary assets and liabilities are recognised immediately in
profit or loss.
Exchange gains and losses arising
on the retranslation of monetary financial assets are treated as a
separate component of the change in fair value and recognised in
profit or loss. Exchange gains and losses on non-monetary OCI
financial assets form part of the overall gain or loss in OCI
recognised in respect of that financial
instrument.
Translation into presentation
currency
The Group presents its financial
information in US Dollars (US$), which is the functional currency
of the Group and Company. The functional currency of all the
Company's subsidiaries is US$ except for TRR Services Australia Pty
Ltd which has an AUD functional currency.
· Assets and liabilities for each financial reporting date
presented (including comparatives) are translated at the closing
rate of that financial reporting period.
· Income and expenses for each income statement (including
comparatives) is translated at exchange rates at the dates of
transactions. For practical reasons, the Company applies average
exchange rates for the period.
· All
resulting changes are recognised as a separate component of
equity.
· Equity items are translated at exchange rates at the dates of
transactions.
The following exchange rates were
used in the retranslation of these financial statements.
|
At 31 December 2023
|
At 31 December 2022
|
US$/AUD closing rate at financial
reporting date
|
0.6812
|
0.6806
|
US$/AUD average exchange rate
during the reporting period
|
0.6737
|
0.6926
|
Intangible assets
Royalty arrangements
Royalty arrangements which are
identified and classified as intangible assets are initially
measured at cost, including any transaction costs, less provision
for impairment where required.
Upon commencement of production at
the underlying mining operation intangible assets are amortised on
a units of production basis matching the depletion of the ore body
over the life of the mine. Amortisation rates are adjusted on a
prospective basis for all changes to estimates of the life of mine
reserves.
Impairment
At each reporting date, the Group
reviews the carrying amounts of its intangible assets to determine
whether there is any indication that those assets are impaired. If
such an indication is identified, the recoverable amount of the
asset is estimated in order to determine the extent of any
impairment. The recoverable amount is the higher of fair value
(less costs of disposal) and value in use. In assessing value in
use, the estimated cash flows are discounted to their present value
using a pre-tax discount rate. If the recoverable amount of the
asset is estimated to be less than its carrying value, the carrying
amount of the asset is reduced to its recoverable amount. An
impairment loss is also recognised in the income statement. Should
an impairment loss subsequently reverse, the carrying amount of the
asset is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does not exceed
the carrying amount that would have been determined had no
impairment been recognised. A reversal of an impairment loss is
also recognised in the income statement.
Assets held for sale
Non-current assets classified as
held for sale are measured at the lower of carrying amount and fair
value less costs to sell.
Non-current assets are classified
as held for sale if their carrying amount will be recovered through
a sale transaction rather than through continuing use. This
condition is regarded as met only when the sale is highly probable,
and the asset is available for immediate sale in its present
condition. Management must be committed to the sale which should be
expected to qualify for recognition as a completed sale within one
year from the date of classification.
Investments
Investment in subsidiaries are
recorded at cost less provision for impairment.
Taxation
The tax expense represents the sum
of the tax currently payable and deferred tax.
Current tax
Current tax is calculated at the
tax rates (and laws) that have been enacted or substantively
enacted in the countries in which the Group operates by the
Statement of Financial Position date and is based on taxable profit
or loss for the year.
Deferred tax
Deferred tax is the tax expected
to be payable or recoverable on differences between the carrying
amounts of assets and liabilities in the financial statements and
the corresponding tax bases used in the computation of taxable
profit or loss and is accounted for using the balance sheet
liability method. Deferred tax liabilities are generally
recognised for all taxable temporary differences and deferred tax
assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible
temporary differences can be utilised. Such assets and
liabilities are not recognised if the temporary difference arises
from the initial recognition of goodwill or from the initial
recognition (other than in a business combination) of other assets
and liabilities in a transaction that affects neither the tax
profit nor the accounting profit.
Deferred tax is calculated at the
tax rates that are expected to apply in the year when the liability
is settled, or the asset is realised. Deferred tax is charged
or credited in the income statement, except when it relates to
items charged or credited directly to equity, in which case the
deferred tax is also dealt with in equity. Deferred tax assets and
liabilities are offset when there is a legally enforceable right to
set off current tax assets against current tax liabilities and when
they relate to income taxes levied by the same taxation authority
and the Group intends to settle its current tax assets and
liabilities on a net basis.
Current and deferred tax for the year
Current and deferred tax are
recognised in profit or loss, except when they relate to items that
are recognised in other comprehensive income or directly in equity,
in which case, the current and deferred tax are also recognised in
other comprehensive income or directly in equity
respectively.
Share-based payments
The fair value of the employee
services received in exchange for the grant of the options is
recognised as an expense. The total amount to be expensed is
determined by reference to the fair value of the options granted,
excluding the impact of any non-market service and performance
vesting conditions. Non-market and performance vesting conditions
are included in assumptions about the number of options that are
expected to vest. The total amount expensed is recognised over the
vesting period, which is the period over which all of the specified
vesting conditions are to be satisfied. At each reporting date, the
entity revises its estimates of the number of options that are
expected to vest based on the non-market vesting conditions. It
recognises the impact of the revision to original estimates, if
any, in profit and loss, with a corresponding adjustment to
equity.
Financial Instruments
Financial instruments comprise
cash and cash equivalents, borrowings, financial assets and
liabilities, derivative financial liabilities and equity
instruments. Financial assets and financial liabilities are
recognised when the Group becomes a party to the contractual
provisions of the financial instrument and comprise trade and other
receivables and trade and other payables respectively.
Cash and cash equivalents
Cash and cash equivalents comprise
cash at hand and current and deposit balances at banks.
Borrowings
Interest bearing debt facilities
are initially recognised at fair value, net of directly
attributable transaction costs. Transaction costs are recognised in
the income statement on a straight-line basis over the term of the
facility.
Trade and other receivables
Trade and other receivables are
accounted for under IFRS 9 using the expected credit loss model and
are initially recognised at fair value and subsequently measured at
amortised cost less any allowance for expected credit
losses.
Impairment provisions for
receivables from related parties and loans to related parties are
recognised based on a forward-looking expected credit loss
model.
Royalty financial assets at fair value through profit and
loss
Royalty financial assets are
recognised or derecognised on completion date where a purchase or
sale of the royalty is under a contract, and are initially measured
at fair value, including transaction costs.
All of the Group's royalty
financial assets have been classified as at fair value through
profit and loss ("FVTPL").
The royalty financial assets at
FVTPL are measured at fair value at the end of each reporting
period, with any fair value gains or losses recognised in the
'revaluation of royalty financial assets' line item of the income
statement. Fair value is determined in the manner described in note
13.
Trade and other payables
Trade and other payables are
recognised initially at their fair value and subsequently measured
at amortised cost using the effective interest method.
Contingent consideration
Contingent consideration is
initially recognised at its fair value based on the expected future
cash flows. After initial recognition the contingent consideration
is remeasured at the end of each reporting period with any gains or
losses recognised in the royalty intangible asset balance on the
balance sheet.
Warrant liability at fair value through profit and
loss
The warrant liability is initially
measured at fair value, including transaction costs. The
liability is measured at fair value at the end of each reporting
period, with any gains or losses recognised as other finance costs
in the income statement. Fair value is determined by the
calculation described in note 21.
Equity instruments and reserves description
An equity instrument is any
contract that evidences a residual interest in the assets of the
Company after deducting all of its liabilities. Equity instruments
issued by the Company are recorded at the proceeds received net of
direct issue costs.
Ordinary shares are classified as
equity.
Deferred shares are classified as
equity but have restricted rights such that they have no economic
value.
Share capital account represents
the nominal value of the ordinary and deferred shares
issued.
The share premium account
represents premiums received on the initial issuing of the share
capital. Any transaction costs associated with the issuing of
shares are deducted from share premium, net of any related income
tax benefits.
Share based payment reserve
represents equity-settled share-based employee remuneration until
such share options are exercised.
Foreign exchange reserve
represents
· differences arising on the opening net assets retranslation
at a closing rate that differs from opening rate; and
· differences arising from retranslating the income statement
at exchange rates at the dates of transactions at average rates and
assets and liabilities at the closing rate.
Retained earnings include all
current and prior period results as disclosed in the Statement of
Comprehensive Income.
Revenue recognition
The revenue of the Group comprises
mainly royalty income. It is measured at the fair value of the
consideration received or receivable after deducting discounts,
value added tax and other withholding tax. The royalty income
becomes receivable on extraction and sale of the relevant
underlying commodity, and by determination of the relevant royalty
agreement.
Trident adopts IFRS 15 revenue
from contracts with customers ("IFRS 15") - except in the case of
the offtake contract revenue. The strict legal interpretation of
IFRS 15 deems Trident to be principal in the transaction (and not
agent) and accordingly should disclose revenue and costs
gross. However, management considers that the substance of
these instruments (and revenue and cost) is such that Trident will
always sell the gold within the quotation period, does not intend
to hold gold for long term trading and will not make a gross
loss. As a result of the above judgement, revenue in the
income statement is stated net. The gross revenue, and related
costs, are disclosed in note 3 - Business and Geographical
Reporting.
Interest income is accrued on a
time basis, by reference to the carrying value and at the effective
interest rate applicable.
Provisions
Provisions are recognised when the
Group has a present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources will be
required to settle the obligation, and a reliable estimate can be
made of the amount of the obligation. The Group's estimate in
respect of contingent consideration that may be payable following
the acquisition of Royalty Intangible Assets, is capitalised as an
asset acquisition cost. The value of the provision is determined by
the amounts deemed payable by management at the balance sheet
date.
Critical accounting estimates and
judgements
The preparation of the financial
statements in conformity with IFRS requires the use of estimates
and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the
reported amounts of expenses during the reporting period. Although
these estimates are based on management's best knowledge of the
amounts, events or actions, actual results ultimately may differ
from these estimates.
Estimates and judgements are
continually evaluated and are based on historical experience and
other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
Critical accounting judgements
Classification of royalty arrangements: initial recognition
and subsequent measurement
The Directors must decide whether
the Group's royalty arrangements should be classified
as:
· Intangible assets in accordance with IAS 38 Intangible
Assets; or
· Financial assets in accordance with IFRS 9 Financial
Instruments
The Directors use the following
selection criteria to identify the characteristics which determine
which accounting standard to apply to each royalty
arrangement:
Type 1 - Intangible assets:
Royalties, are mainly classified as intangible assets by the Group.
The Group considers the substance of a simple royalty to be
economically similar to holding a direct interest in the underlying
mineral asset. Existence risk (the commodity physically existing in
the quantity demonstrated), production risk (that the operator can
achieve production and operate a commercially viable project),
timing risk (commencement and quantity produced, determined by the
operator) and price risk (returns vary depending on the future
commodity price, driven by future supply and demand) are all risks
which the Group participates in on a similar basis to an owner of
the underlying mineral licence. Furthermore, in a royalty
intangible, there is only a right to receive cash to the extent
there is production and there are no interest payments, minimum
payment obligations or means to enforce production or guarantee
repayment. These are accounted for as intangible assets under IAS
38.
Type 2 - Financial royalty assets
(royalties with additional financial protection): In certain
circumstances where the risk is considered too high, the Group will
look to introduce additional protective measures. This has taken
the form of minimum payment terms. Once an operation is in
production, these mechanisms generally fall away such that the
royalty will display identical characteristics and risk profile to
the intangible royalties; however, it is the contractual right to
enforce the receipt of cash which results in these royalties being
accounted for as financial assets under IFRS 9.
Accounting
classification
|
Substance of contractual
terms
|
Accounting treatment
|
Examples
|
Royalty intangible assets and
offtake interests
|
Simple royalty with
no right to receive cash other
than through a royalty related to production
An offtake contract is a contract
where an operator agrees to sell, and the purchaser agrees to buy,
refined metal produced from the mine or mines over which the
offtake is granted. The key commercial terms include those relating
to the amount of metal to be purchased, the delivery mechanics, and
the payment terms.
|
· Investment is presented as an intangible asset and carried at
cost less accumulated amortisation and any impairment
provision
· Royalty
or offtake income is recognised as revenue in the income
statement
· Intangible asset is assessed for indicators of impairment at
each period end
|
· Koolyanobbing
· Thacker
Pass
· Lincoln
gold
· Sugar
Zone offtake
· Equinox
Gold offtake
· Allied
Gold offtake
· Blyvoor
Gold offtake
· i80
Gold offtake
· Victoria Gold offtake
· Mimbula
· Kwale
· La
Preciosa
· Dandoko
· Paradox
· Antler
|
Royalty financial
instruments
|
Royalty arrangement with a
contractual right to receive cash (e.g. through a minimum payment
profile)
|
· Financial asset is recognised at fair value on the balance
sheet
· Fair
value movements taken through the income statement
(FVTPL)
· Royalty
income is not recognised as revenue in the income statement and
instead reduces the fair value of the asset
|
· Mimbula
(till 1st July 2023)
|
The Directors are cognisant that
the Lincoln gold royalty is subject to a minimum payment schedule
and is classified as a Royalty intangible asset. The classification
decision was arrived at having considered that the minimum payment
schedule was introduced as an amendment to the original royalty
agreement in order to assist the operator with the progression of
the asset development and with the intention to revert to a
standard royalty arrangement upon commencement of production. The
classification will be reviewed at each reporting date.
Gold offtake revenue recognition
The Directors have decided that
Trident acts as an agent in the gold offtake transaction and
accordingly should disclose revenue and costs net. The strict legal
interpretation of IFRS 15 deems Trident to be the principal.
However, the Directors consider that the substance of these
instruments (and revenue and cost) is such that Trident will always
sell the gold within the quotation period, does not intend to hold
gold for long term trading and will not make a gross loss. As
a result of the above judgement, revenue in the income statement is
stated net. Further details are disclosed in note 3 - Business and
Geographical Reporting.
Going concern
The Group and Company financial
statements have been prepared on a going concern basis as the
Directors have assessed the Group's and Company's ability to
continue in operational existence for the foreseeable future. The
operations are currently being funded through existing cash
reserves and royalty income.
The financial statements do not
include the adjustments that would result if the Group or Company
were not to continue as a going concern. See Going Concern section
for more details.
Loans to subsidiaries
Loans to subsidiaries have a
carrying value at 31 December 2023 of US$99.7m (2021: US$90.6m).
The Directors have assessed the carrying value, in accordance with
the IFRS 9 Expected Credit Loss model and consider it to be equal
to fair value on the basis that the loans will be recovered from
the subsidiaries as they generate cash flow from their underlying
investments in royalty assets. In the event that the
underlying value of the royalty asset becomes impaired, and the
loans are not considered to be recoverable, an impairment charge
will then be recognised in the Statement of Comprehensive
Income.
Key sources of estimation uncertainty
Assessment of fair value of royalty arrangements held at fair
value
The Mimbula royalty was held at
fair value until its reclassification as a royalty intangible
asset. Fair value was determined based on discounted cash flow
models (and other valuation techniques) using assumptions
considered to be reasonable and consistent with those that would be
applied by a market participant. The determination of assumptions
used in assessing fair values is subjective and the use of
different valuation assumptions could have a significant impact on
financial results.
In particular, expected future
cash flows, which are used in discounted cash flows models, are
inherently uncertain and could materially change over time. They
are significantly affected by a number of factors including
commodity prices, exchange rate changes and reserves and resources
and timing/likelihood of mines entering production if not already
generating income.
The key assumptions relating to
the Group's royalty financial asset classified as fair value
through profit or loss is set out in note
13.
Impairment review of intangible assets
Intangible assets are assessed for
indicators of impairment at each reporting date with the assessment
considering variables such as the production profiles, production
commissioning dates where applicable, forecast commodity prices and
guidance from the mine operators.
Where indicators are identified,
the starting point for the impairment review will be to measure the
expected future cash flows from the royalty arrangement should the
project continue/come into production. A pre-tax nominal discount
rate is applied to the future cash flows. The discount rate of each
royalty arrangement is specific to the underlying project, making
reference to the risk-free rate of return expected on an investment
with the same time horizon as the expected mine life, together with
the country risk associated with the location of the operation.
Changes in discount rate are most sensitive to changes in the
risk-free rate, country risk premiums and the expected mine
life.
The outcome of this net present
value calculation is then risk weighted to reflect management's
current assessment of the overall likelihood and timing of each
project coming into production and royalty income arising. This
assessment is impacted by news flow relating to the underlying
operation in the year, in conjunction with management's assessment
of the economic viability of the project based on commodity price
projections.
Amortisation
The Group's amortisation policy is
based on a depletion method using units of production. Management
regularly review the life of its assets, the amortisation rates and
methodology, and amortisation rates may be adjusted for changes to
the estimates.
3. BUSINESS AND GEOGRAPHICAL REPORTING
The Group's chief operating
decision maker is considered to be the Executive Board. The
Executive Board evaluates the financial performance of the Group by
reference to its diversified portfolio - split between precious,
bulk, battery and base metal assets - its reportable
segments.
The following individual royalty
arrangements are aggregated into the reportable
segments:
Precious: Lincoln Gold Mine, Gold
Offtake Contracts, La Preciosa, Dandoko
Bulk: Koolyanobbing,
Kwale
Battery Metals: Thacker Pass,
Paradox
Base: Mimbula, Pukaqaqa,
Antler
Below is a summary of the Group's
results, assets and liabilities by reportable segment as presented
to the Executive Board. Operating profit/(loss) is stated before
revaluation of royalty financial instruments, one off costs,
finance income and expense foreign exchange gains and
taxation.
Segmental information as at 31
December 2023:
|
Precious
|
Bulk
|
Battery metals
|
Base
|
Other
|
Total
|
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
Royalty and offtake related revenue
|
7,478
|
1,930
|
-
|
113
|
-
|
9,521
|
Amortisation of royalty intangible assets
|
(4,148)
|
(1,153)
|
-
|
(64)
|
-
|
(5,365)
|
Gross profit
|
3,330
|
777
|
-
|
49
|
-
|
4,156
|
Administrative expenses
|
-
|
-
|
-
|
-
|
(5,267)
|
(5,267)
|
Total segment operating profit/(loss)
|
3,330
|
777
|
-
|
49
|
(5,267)
|
(1,111)
|
|
|
|
|
|
|
|
Total segment assets
|
81,107
|
2,118
|
35,296
|
17,041
|
13,735
|
149,297
|
|
|
|
|
|
|
|
Total segment liabilities
|
(31,205)
|
-
|
-
|
-
|
(9,533)
|
(40,738)
|
|
|
|
|
|
|
|
Segmental information as at 31
December 2022:
|
Precious
|
Bulk
|
Battery metals
|
Base
|
Other
|
Total
|
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
US$'000
|
Royalty and offtake related
revenue
|
6,418
|
1,432
|
-
|
-
|
-
|
7,850
|
Amortisation of royalty intangible
assets
|
(3,796)
|
(1,061)
|
-
|
-
|
-
|
(4,857)
|
Gross profit
|
2,622
|
371
|
-
|
-
|
-
|
2,993
|
Administrative expenses
|
-
|
-
|
-
|
-
|
(4,667)
|
(4,667)
|
Total segment operating
result
|
2,622
|
371
|
-
|
-
|
(4,667)
|
(1,674)
|
|
|
|
|
|
|
|
Total segment assets
|
82,732
|
2,445
|
28,234
|
11,714
|
23,233
|
148,358
|
|
|
|
|
|
|
|
Total segment
liabilities
|
(40,081)
|
-
|
-
|
-
|
(3,407)
|
(43,488)
|
|
|
|
|
|
|
|
As at 31 December 2023, the Group
had received royalty income from the Gold Offtake portfolio and
Lincoln gold (precious segment), Koolyanobbing and Kwale (bulk
segment) and Mimbula (base segment). Additionally, a fair value
gain of US$0.6m (2022: US$2.2m) was recognised in the base segment
relating to the Mimbula asset for the period prior to its
reclassification as a Royalty intangible asset (see note
13).
US$6.9m (2022: US$6.1m) of the
precious revenue relates to net proceeds from gold offtake
contracts - gross revenue was US$522.0m (2022: US$446.1m) with
US$515.1m (2022: US$440.0m) costs.
4. ADMINISTRATIVE EXPENSES
|
Year ended 31 December 2023
US$'000
|
Year ended 31 December
2022
US$'000
|
Employee benefit expense (note
6)
|
3,309
|
2,946
|
Legal and professional
|
1,126
|
1,068
|
Other operating
expenses
|
832
|
653
|
Total operating expenses
|
5,267
|
4,667
|
5. AUDITOR REMUNERATION
During the year the Company
obtained the following services from the auditor:
|
Year ended 31 December 2023
US$'000
|
Year ended 31 December
2022
US$'000
|
Fees payable to the auditor for
the audit of the Group and Company
|
55
|
69
|
Total auditor's remuneration
|
55
|
69
|
|
|
|
Other assurance services pursuant
to legislation
|
-
|
-
|
Details of the Company's policy on
the use of auditors for non-audit services, the reasons why the
auditor was used rather than another supplier and how the auditor's
independence and objectivity are safeguarded are set out in the
Audit Committee Report.
6. EMPLOYEE BENEFIT EXPENSE
|
Group
|
Company
|
Group
|
Company
|
|
Year ended 31 December 2023
US$'000
|
Year ended 31 December 2023
US$'000
|
Year ended 31 December
2022
US$'000
|
Year ended 31 December
2022
US$'000
|
Directors' salary and
fees
|
1,617
|
1,014
|
1,185
|
585
|
Employee costs
|
1,051
|
68
|
1,103
|
455
|
Social security costs
|
233
|
115
|
184
|
90
|
Share based payments
|
408
|
408
|
474
|
474
|
Total employee benefit expense
|
3,309
|
1,605
|
2,946
|
1,604
|
Further disclosures in respect of
Directors' remuneration are included within the Directors'
Remuneration Report. The average number of employees
(including Directors) during the year was 9 (2022: 9).
7. FINANCE INCOME
|
Year ended 31 December 2023
US$'000
|
Year ended 31 December
2022
US$'000
|
Interest from bank
deposits
|
915
|
241
|
|
915
|
241
|
8. OTHER FINANCE COSTS
|
Year ended 31 December 2023
US$'000
|
Year ended 31 December
2022
US$'000
|
Interest paid
|
4,483
|
3,774
|
Amortisation of financing costs
(including warrant (credit)/charge)
|
(1,284)
|
2,220
|
Other finance charges
|
347
|
250
|
|
3,546
|
6,244
|
A fair value credit of US$1.6m
(2022: US$1.7m charge) relating to the outstanding warrants held in
the Company was recognised in the year.
9. INCOME TAX
|
Year ended 31 December
2023
US$'000
|
Year ended 31 December
2022
US$'000
|
Analysis of charge for year:
|
|
|
|
|
|
United Kingdom corporation
tax
|
-
|
-
|
Overseas taxation
|
258
|
84
|
Adjustments in respect of prior
years
|
-
|
-
|
Current tax expense
|
258
|
84
|
|
|
|
|
|
|
Deferred tax charge/(credit) in
current year
|
1,476
|
(1,317)
|
Adjustments in respect of prior
years
|
(323)
|
318
|
Effect of changes in tax
rates
|
-
|
(30)
|
Deferred tax
|
1,153
|
(1,029)
|
|
|
|
Income tax charge/(credit)
|
1,411
|
(945)
|
|
|
|
|
Year ended 31 December 2023
US$'000
|
Year ended 31 December
2022
US$'000
|
Factors affecting the tax charge
for the year:
|
|
|
Profit/(loss) before taxation
|
3,803
|
(4,629)
|
|
|
|
Tax on result calculated at UK
Corporation tax of 23.5% (2022: 19%)
|
894
|
(880)
|
Tax effects of:
|
|
|
Items non-taxable/deductible for
tax purposes:
|
|
|
Non-deductible expenses
|
47
|
107
|
Non-taxable income
|
-
|
-
|
|
|
|
Temporary and other
differences:
|
|
|
Foreign tax credits
|
34
|
83
|
Effect of differences between
local and UK tax rates
|
502
|
(420)
|
Prior year adjustment to current
and deferred tax
|
(323)
|
319
|
Deferred tax not
recognised
|
(100)
|
(27)
|
Remeasurement of deferred tax for
changes in tax rates
|
365
|
(127)
|
Other adjustments
|
(8)
|
-
|
Income tax
|
1,411
|
(945)
|
The Group is subject to taxation
in United Kingdom, USA and Australia with applicable tax rates of
25.00%, 21.00% and 30.00% respectively. The Group does not have any
unresolved tax matters or disputes with the tax authorities in the
jurisdictions in which it operates.
DEFERRED TAXATION
The following are the deferred tax
assets and liabilities recognised by the Group and the movements
during the year:
Group
|
Tax losses
|
Other
|
Total
|
|
US$000
|
US$000
|
US$000
|
|
|
|
|
At 1 January 2022
|
1,482
|
(439)
|
1,043
|
|
|
|
|
Credit/(charge) to income
statement
|
1,317
|
(289)
|
1,028
|
Exchange differences
|
-
|
(66)
|
(66)
|
31 December 2022
|
2,799
|
(794)
|
2,005
|
|
|
|
|
(Charge)/credit to income
statement
|
(2,521)
|
1,382
|
(1,139)
|
Exchange differences
|
-
|
(14)
|
(14)
|
At 31 December 2023
|
278
|
574
|
852
|
Analysed as:
|
|
|
|
Deferred tax asset
|
278
|
1,211
|
1,489
|
Deferred tax liability
|
-
|
(637)
|
(637)
|
The deferred tax asset
predominantly relates to the US subsidiaries. Based on the forecast
future cashflows for the royalty assets held by these subsidiaries
the losses are expected to be fully utilised, accordingly the
deferred tax asset has been recognised in full.
The deferred tax liability
principally relates to accelerated capital allowances in the
Australian subsidiary.
Company
|
Tax losses
|
Other
|
Total
|
|
US$000
|
US$000
|
US$000
|
|
|
|
|
At 1 January 2022
|
-
|
93
|
93
|
|
|
|
|
Credit to income
statement
|
-
|
128
|
128
|
|
|
|
|
At 31 December 2022
|
-
|
221
|
221
|
|
|
|
|
Credit to income
statement
|
-
|
102
|
102
|
|
|
|
|
At 31 December 2023
|
-
|
323
|
323
|
|
|
|
|
10. EARNINGS PER SHARE
Basic earnings per share is
calculated by dividing the loss attributable to equity holders of
the Company by the weighted average number of ordinary shares in
issue during the period.
NET PROFIT/(LOSS) ATTRIBUTABLE TO
SHAREHOLDERS
|
Year ended 31 December
2023
US$'000
|
Year ended 31 December
2022
US$'000
|
|
|
Profit/(loss)
|
2,392
|
(3,684)
|
The weighted average number of
shares in issue for the purpose of calculating basic and diluted
earnings per share and basic and diluted adjusted earnings per
share are as follows:
WEIGHTED AVERAGE NUMBER OF SHARES IN ISSUE
|
2023
|
2022
|
|
|
Basic number of shares
outstanding
|
291,749,788
|
288,853,068
|
Dilutive effect of Employee Share
Option Scheme
|
40,859
|
-
|
Diluted number of shares
outstanding
|
291,790,647
|
288,853,068
|
|
|
|
Earnings/(loss) per share -
basic
|
0.82 c
|
(1.28) c
|
Earnings/(loss) per share -
diluted
|
0.82 c
|
(1.28) c
|
The effect of the outstanding
warrants and options in respect of the prior year as disclosed
under note 23 would have been anti-dilutive (reducing the loss per
share) and accordingly is not presented.
In addition, the effect of the
issue of ordinary shares shortly after year end, would also have
been anti-dilutive, and accordingly is not considered. The issue,
however, may be dilutive in future periods.
11. DIVIDENDS
There were no dividends paid or
proposed by the Company in either period.
12. ROYALTY INTANGIBLE ASSETS
Group
|
Royalty
Interests
US$000s
|
Offtake
Interests
US$000s
|
Total
US$'000
|
Cost
|
|
|
|
At 1 January 2022
|
46,167
|
-
|
46,167
|
Acquisitions
|
-
|
74,018
|
74,018
|
Disposals
|
-
|
(1,833)
|
(1,833)
|
Reclassified as assets held for
sale
|
(6,750)
|
-
|
(6,750)
|
Exchange differences
|
(768)
|
-
|
(768)
|
At 31 December 2022
|
38,649
|
72,185
|
110,834
|
Acquisitions
|
28,406
|
-
|
28,406
|
Additions
|
18
|
-
|
18
|
Disposals
|
-
|
-
|
-
|
Reclassified from royalty financial assets
|
6,731
|
-
|
6,731
|
Exchange differences
|
4
|
-
|
4
|
At 31 December 2023
|
73,808
|
72,185
|
145,993
|
Accumulated Amortisation
|
|
|
|
At 1 January 2022
|
(1,267)
|
-
|
(1,267)
|
Amortisation
|
(1,062)
|
(3,795)
|
(4,857)
|
Disposal
|
-
|
166
|
166
|
Exchange differences
|
99
|
-
|
99
|
At 31 December 2022
|
(2,230)
|
(3,629)
|
(5,859)
|
Amortisation
|
(1,217)
|
(4,148)
|
(5,365)
|
Disposal
|
-
|
-
|
-
|
Exchange differences
|
(14)
|
-
|
(14)
|
At 31 December 2023
|
(3,461)
|
(7,777)
|
(11,238)
|
Net book value at 31 December
2022
|
36,419
|
68,556
|
104,975
|
Net book value at 31 December 2023
|
70,347
|
64,408
|
134,755
|
Company
|
Royalty
Interests
US$000s
|
Offtake
Interests
US$000s
|
Total
US$'000
|
Cost
|
|
|
|
At 1 January 2022 and 31 December
2022
|
-
|
-
|
-
|
Acquisitions
|
-
|
-
|
-
|
Additions
|
18
|
-
|
18
|
|
|
|
|
Reclassified from royalty financial assets
|
6,731
|
-
|
6,731
|
At 31 December 2023
|
6,749
|
-
|
6,749
|
Accumulated Amortisation
|
|
|
|
At 1 January 2022 and 31 December
2022
|
-
|
-
|
-
|
Amortisation
|
(64)
|
-
|
(64)
|
|
|
|
|
At 31 December 2023
|
(64)
|
-
|
(64)
|
Net book value at 31 December
2022
|
-
|
-
|
-
|
Net book value at 31 December 2023
|
6,685
|
-
|
6,685
|
Amortisation
Amortisation is charged on a units
of production basis (over initial estimated reserves) on those
assets in production. In the case of Koolyanobbing it is
estimated that circa 20% (2022:52%) of the original acquired
reserve remains.
Impairment
The royalty intangible assets are
reviewed for impairment indicators at each reporting date. In the
event that impairment indicators exist a full impairment review
will take place to determine whether the discounted future cash
flows exceed cost.
The sensitivity of the discounted
future cash flows to changes in management's key assumptions, such
as commodity prices and production rates, has been reviewed to
assess for indicators of impairment. It has been concluded that any
reasonable change in the key inputs would not result in a material
impairment.
Material acquisitions
La Preciosa
In May 2023 Trident acquired
royalties and a milestone payment over the La Preciosa Silver
Project in Mexico. The royalty assets comprise:
· 1.25%
net smelter return royalty covering the Gloria and Abundancia
veins;
· 2.00%
gross value return royalty covering all other areas of La Preciosa;
and
· US$8.75m milestone payment (the "Milestone Payment"), payable
within 12 months of first silver production at La
Preciosa.
In consideration, Trident paid
US$7m in cash on completion and will pay a further US$1m, in cash
or shares at Trident's election, upon receipt of the Milestone
Payment or other circumstances as set out in the SPA.
Dandoko
In September 2023 Trident acquired
a 50% interest in a 2% net smelter return royalty over the Dandoko
Gold Project in Western Mali, Africa. The total consideration was
US$6.25m comprising US$3m in cash and US$0.75m in Trident shares
paid on completion of the investment. Further consideration will be
paid on the following milestones:
· US$1.25m in cash on first royalty receipt from the royalty
area, and
· US$1.25m in cash on receipt of payment on 500,000 ounces gold
sold from the royalty area.
Antler
In November 2023 Trident acquired
royalties which compromises of:
· 0.90%
net smelter return royalty covering Antler deposit and five named
exploration targets ("Project Area Royalty");
· 0.45%
net smelter return royalty covering royalty over any ground
subsequently acquired by New World within 5km of the
Project Area Royalty boundary.
In consideration, Trident paid
AUD$11m in cash.
Paradox
In September 2023 Trident acquired
a 2.50% net smelter royalty in the Paradox
Basin in Utah, USA. In consideration, Trident paid
US$1.5m on completion and will pay a further consideration on the
achievement of the following milestones:
· US$3.5m upon commencement of commercial production by
Anson at Paradox ('First Contingent Payment');
· US$5.0m on the second anniversary of the First Contingent
Payment
Reclassified from royalty financial asset
In July 2023 Trident's entitlement
to receive a minimum payment from the Mimbula Royalty ceased with
royalty payments being received thereafter. Consequently, the
Mimbula Royalty no longer meets the conditions to be classified as
royalty financial asset and has been reclassified as a royalty
intangible asset. See note 13 for further information regarding the
terms of the royalty.
13. ROYALTY FINANCIAL ASSETS
In July 2020 the Group acquired
the Mimbula Royalty from Moxico Resources plc a staged GRR over
production from the operating Mimbula copper mine and associated
stockpiles located in Zambia's prolific Copperbelt Province. The
GRR was acquired for cash consideration of US$5.00m. Trident is
entitled to royalty payments on production which commenced on 1
July 2020 and extend in perpetuity.
Until June 2023 Trident was
entitled to receive either a Minimum Payment ("MP") or a royalty
payment, whichever was higher. Thereafter, Trident would only
receive royalty payments. The royalty payments are calculated as a
percentage of the gross revenue derived from sale of finished
copper and copper concentrate. Per the terms of the agreement, the
royalty percentage is calculated as follows:
a. During the MP
period, 1.25% of gross revenue;
b. During the period
commencing on the day after the expiry of MP period and ending on
the date on which royalty payments have been made to Trident in
respect of a total aggregate quantity of no less than 575,000
tonnes of copper cathode or other finished copper product, 0.3% of
gross revenue; and
c. during the period
commencing on the day after the expiry of the MP period and
continuing for the duration of the agreement, 0.2% of gross
revenue.
Group and Company
Fair Value
|
2023
US$'000
|
2022
US$'000
|
At 1 January
|
7,653
|
7,461
|
Royalties due or
received
|
(1,500)
|
(2,000)
|
Revaluation of royalty financial
asset recognised in profit or loss
|
578
|
2,192
|
Reclassified to royalty financial
assets
|
(6,731)
|
-
|
At 31 December
|
-
|
7,653
|
On the 1 July 2023, following the
expiry of the minimum payment period the Mimbula royalty was
reclassified as a royalty intangible asset (see note
12).
14. ASSETS HELD FOR SALE
Group
|
2023
US$'000
|
2022
US$'000
|
At 1 January
|
6,750
|
-
|
Royalty intangible assets
reclassified as held for sale
|
-
|
6,750
|
Disposal
|
(6,750)
|
-
|
At 31 December
|
-
|
6,750
|
In December 2022 the Group agreed
to sell its pre-production gold royalties over Lake Rebecca, Spring
Hill and four other projects acquired as a portfolio from Talga
Resources to Franco-Nevada in exchange for cash proceeds of up to
US$15.8m. One early-stage royalty was
removed from the portfolio prior to closing and the transactions
proceeds were adjusted to be up to US$15.6m. Cash consideration of
US$14.3m ($13.3m net of transaction costs) was received in the year
with a further US$1.3m to be paid upon first production from the
Rebecca Gold Project. A profit on disposal of US$6.9m was
recognised in the year following the netting off of contingent
consideration (US$0.4m) attached to the Spring Hill royalty (see
note 20). The sale of these investments was completed in February
2023.
There were no assets held for sale in the Company (2022:
US$Nil).
15. INVESTMENTS IN SUBSIDIARIES
Company
|
|
US$'000
|
Cost
|
|
|
At 1 January 2022 and 1 January
2023
|
|
113
|
Investment in
subsidiary
|
|
-
|
At 31 December 2023
|
|
113
|
As at 31 December 2023 the Company
held interests in the following subsidiary and joint venture
companies:
Company
|
Country of registration
|
Proportion held
|
Registered Office
|
Nature of business
|
TRR Services, LLC
|
USA
|
100%
|
7233 S.Kellerman Way, Aurora, CO
80016
|
Service company
|
TRR Services Australia Pty
Limited
|
Australia
|
100%
|
Floor 2, 44A Kings Park Road, West
Perth, WA 6005
|
Service company
|
TRR Services Schweiz AG
|
Switzerland
|
100%
|
Grafenauweg 8, 6300 Zug
|
Service company
|
TRR Services UK Ltd
|
United Kingdom
|
100%
|
6th Floor 60 Gracechurch Street,
London, United Kingdom, EC3V 0HR
|
Service company
|
TRR Holdings LLC
|
USA
|
100%
|
251 Little Falls Drive,
Wilmington, DE 19808
|
Service company
|
TRR Offtakes LLC
|
USA
|
100%
|
251 Little Falls Drive,
Wilmington, DE 19808
|
Service company
|
Tiomin Peru S.A.C
|
Peru
|
100%
|
Parque las Leyendas MZA, 13
Lote,°902A Al Costado de Metro De La Av La Marina, Lima,
Peru
|
Dormant
|
TRR Sonora Limited
|
United Kingdom
|
100%
|
6th Floor 60 Gracechurch Street,
London, United Kingdom, EC3V 0HR
|
Dormant
|
Sonoroy Holdings
Limited
|
United Kingdom
|
50%
|
Lynton House 7-12 Tavistock
Square, London, England, WC1H 9BQ
|
Dormant
|
16. AMOUNT DUE FROM SUBSIDIARY UNDERTAKINGS
Company
|
2023
US$'000
|
2022
US$'000
|
Loans and contributions to
subsidiaries
|
99,704
|
90,553
|
|
99,704
|
90,553
|
During the year ended 31 December
2023 the maximum amount owed by the subsidiaries to the Parent
Company was US$99.7m (2022: US$90.6m). The related party loans are
unsecured, repayable upon demand and have a 6% interest rate where
applicable. The fair value of loans to subsidiaries is the same as
their carrying values stated above.
17. TRADE AND OTHER RECEIVABLES
|
Group
2023
US$'000
|
Company
2023
US$'000
|
Group
2022
US$'000
|
Company
2022
US$'000
|
Trade receivables
|
9,270
|
2,655
|
9,938
|
3,015
|
Prepayments and accrued
income
|
511
|
905
|
394
|
989
|
Current tax asset
|
-
|
-
|
29
|
-
|
Indirect taxes
recoverable
|
24
|
55
|
37
|
37
|
|
9,805
|
3,615
|
10,398
|
4,041
|
Due to the short-term nature of
the current receivables, their carrying amount is considered to be
approximate to their fair value.
18. CASH AND CASH EQUIVALENTS
|
Group
2023
US$'000
|
Company
2023
US$'000
|
Group
2022
US$'000
|
Company
2022
US$'000
|
Cash at bank and on
hand
|
3,248
|
1,667
|
16,577
|
9,537
|
All of the Company's cash and cash
equivalents are held in accounts which bear interest at floating
rates and the Directors consider their carrying amount approximates
to their fair value. Details of the credit risk associated
with cash and cash equivalents is set out in note 24.
19. TRADE AND OTHER PAYABLES
|
Group
2023
US$'000
|
Company
2023
US$'000
|
Group
2022
US$'000
|
Company
2022
US$'000
|
Trade payables
|
1,343
|
231
|
1,556
|
85
|
Other taxation and social
security
|
6
|
-
|
113
|
-
|
Accrued expenses
|
854
|
255
|
608
|
237
|
|
2,203
|
486
|
2,277
|
322
|
Trade payables and accruals
principally comprise amounts outstanding for trade purchases and
ongoing costs. The Company has financial risk management policies
in place to ensure that all payables are paid within the pre-agreed
credit terms. The Directors consider that the carrying amount of
trade payables approximates to their fair value.
20. CONTINGENT CONSIDERATION
Group
|
|
US$'000
|
At 31 December 2022
|
|
408
|
Additions
|
|
8,188
|
Disposal
|
|
(408)
|
At 31 December 2023
|
|
8,188
|
The brought forward Contingent
consideration relates to the acquisition of the Spring Hill royalty
which was sold on 23 February 2023. The 2023 additions relate to
three royalties; Dandoko US$1.83m, Paradox US$5.43m, La Preciosa
US$0.93m. The above amounts represent managements estimate of the
amounts due and their belief that the events that trigger payment
of the additional consideration will be met. See note 12 for
further information regarding the conditions attached to the
contingent payments. The amounts are discounted and expected to
fall due after more than one year.
21. BORROWINGS
Group
|
2023
US$'000
|
2022
US$'000
|
At 1 January
|
38,351
|
10,536
|
Repayment of debt
facility
|
-
|
(10,536)
|
Secured loan facility at amortised
cost
|
-
|
40,000
|
Prepayment of debt
facility
|
(10,000)
|
-
|
Other movements
|
527
|
(1,649)
|
At 31 December
|
28,878
|
38,351
|
On 1 July 2021 the Group entered
into a US$10m secured loan facility agreement with a syndicate
managed by Tribeca Investment Partners. The Facility was drawdown
on 3 August 2021 and repaid in full on 6 January 2022.
On 10 January 2022, a new fully
secured US$40m loan facility was entered into with Macquarie Bank
Limited. The facility had a 3-year term with interest charged
at 7.75% plus SOFR. On 23 February 2023, the facility was
restructured, with a one-year extension to December 2025 and a
reduction in the coupon to 5.75% plus SOFR (subject to maintaining
certain leverage ratios). On 29 November 2023, a US$ 10m prepayment
was made against the facility. Other movements includes non-cash
amortisation of US$0.53m (2021: US$0.81m) on the arrangement fees
of US$2.46m incurred on the Macquarie Bank facility in the prior
year which have been netted off against the borrowings in
accordance with IFRS 9 'Financial Instruments'. In the prior year's
Annual Report and Accounts the amortised arrangement fees were not
netted off against borrowings and were disclosed within the trade
and other receivables balance. This has resulted in a restatement
of the disclosed borrowings balance of $40.0m to $38.4m and a
reduction in the trade and other receivables balance from US$12.0m
to US$10.4m as at 31 December 2022.
Maturity analysis
Group
|
2023
US$'000
|
2022
US$'000
|
Amounts due within one
year
|
5,064
|
6,775
|
Amounts due after more than one
year
|
23,814
|
31,576
|
|
28,878
|
38,351
|
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET
DEBT
Group
|
2023
US$'000
|
2022
US$'000
|
Cash and cash
equivalents
|
3,248
|
16,577
|
Secured loan facility
|
(30,000)
|
(40,000)
|
Net debt
|
(26,752)
|
(23,423)
|
|
|
|
Net (decrease)/increase in cash
and cash equivalents in the year
|
(13,330)
|
(28,371)
|
Cash outflow/(inflow) from change
in secured loan facility
|
10,000
|
(29,464)
|
Exchange differences
|
1
|
(689)
|
Change in net debt resulting from
cash flows
|
(3,329)
|
(58,524)
|
Net debt at the start of the
year
|
(23,423)
|
35,101
|
Net debt at the end of the
year
|
(26,752)
|
(23,423)
|
The net gold receivable amount of
US$4.88m (2022: US$5.12m) is not included in the net debt
reconciliation shown above.
WARRANT LIABILITY
As part of the Tribeca facility,
3,500,000 share warrants to subscribe for shares in the Company
were issued exercisable at £0.5166 per share ('Tribeca Warrants').
The Tribeca Warrants expired on 2 August 2023.
As part of the Macquarie facility,
14,840,517 share warrants to subscribe for shares in the Company
were issued exercisable at £0.51 per share ('Macquarie Warrants').
The Macquarie Warrants were exercisable immediately on issue and
expired 36 months from drawdown. Following the restructuring of the
facility on the 23 February 2023, the expiry date was extended for
a further twelve months. As the US$ value of the Macquarie Warrant
exercise price is a variable amount they have been treated as a
derivative financial liability and are classified as fair value
through profit and loss. The inputs used to calculate the fair
value of the Warrants on initial recognition is shown in note
23.
Group and Company
Fair Value
|
|
US$'000
|
At 1 January 2023
|
|
2,452
|
Revaluation of derivative
financial asset recognised in profit or loss
|
|
(1,845)
|
At 31 December 2023
|
|
607
|
22. SHARE CAPITAL AND SHARE PREMIUM
Group and Company
|
Number of ordinary shares of 1p
|
Number of deferred shares of 1p
|
Share
capital
US$'000
|
Share
premium
US$'000
|
At 1 January 2022
|
251,592,413
|
-
|
3,307
|
87,046
|
Share issue - placing
|
13,118,057
|
-
|
179
|
6,259
|
Share issue - royalty
acquisitions
|
26,013,903
|
-
|
344
|
13,156
|
Share issue - non-executive
directors' fees
|
406,227
|
-
|
5
|
198
|
Share issue expenses
|
-
|
-
|
-
|
(272)
|
At 31 December 2022
|
291,130,600
|
-
|
3,835
|
106,387
|
Share issue - non-executive
directors' fees
|
174,366
|
-
|
2
|
101
|
Share issue - royalty
acquisitions
|
1,425,210
|
-
|
18
|
732
|
At 31 December 2023
|
292,730,176
|
-
|
3,855
|
107,220
|
Share issues during the year:
On 17 January 2023, 174,366
ordinary shares were issued at 49p per share in lieu of
non-executive directors' fees.
On 6 September 2023, 1,425,210
ordinary shares were issued at 42p as consideration for the
acquisition of the Dandoko royalty.
Shares issued subsequent to the year-end
On 2 January 2024, 349,206
ordinary shares were issued at 33p per shares to directors and
management of the Company.
23. SHARE BASED PAYMENTS
Share options
During 2023 and the previous year
share options were granted to Directors and Senior Management of
the Company. Under IFRS 2 "Share-based Payments", the Company
considers these to be equity settled share-based payments and
determines the fair value of the options issued to Directors and
employees as remuneration and recognises the amount as an expense
in the statement of income with a corresponding increase in
equity.
At 31 December 2023, the Company
had outstanding options to subscribe for Ordinary shares as
follows:
Option exercise price
|
Expiry date
|
Vesting date
|
Fair value of individual option
|
At 01/01/2023
|
Issued
|
Expired or
lapsed
|
At 31/12/2023
|
£0.2000
|
02/06/2030
|
02/06/2021
|
£0.0630
|
1,041,666
|
-
|
-
|
1,041,666
|
£0.2400
|
02/06/2030
|
02/06/2022
|
£0.0608
|
1,041,667
|
-
|
-
|
1,041,667
|
£0.2800
|
02/06/2030
|
02/06/2023
|
£0.0605
|
1,041,667
|
-
|
-
|
1,041,667
|
£0.2965
|
20/12/2030
|
20/12/2022
|
£0.1260
|
200,001
|
-
|
-
|
200,001
|
£0.3558
|
20/12/2030
|
20/12/2023
|
£0.1180
|
200,000
|
-
|
-
|
200,000
|
£0.4551
|
20/12/2030
|
20/12/2024
|
£0.1060
|
199,999
|
-
|
-
|
199,999
|
£0.3700
|
20/04/2028
|
20/12/2024
|
£0.1068
|
510,000
|
-
|
-
|
510,000
|
£0.5000
|
01/02/2029
|
01/02/2023
|
£0.1010
|
1,280,000
|
-
|
-
|
1,280,000
|
£0.5000
|
01/02/2029
|
31/12/2023
|
£0.0910
|
1,280,000
|
-
|
-
|
1,280,000
|
£0.5000
|
01/02/2029
|
31/12/2024
|
£0.0830
|
1,280,000
|
-
|
-
|
1,280,000
|
£0.5000
|
01/02/2029
|
31/12/2025
|
£0.0740
|
1,280,000
|
-
|
-
|
1,280,000
|
£0.5000
|
01/02/2029
|
31/12/2026
|
£0.0650
|
1,280,000
|
-
|
-
|
1,280,000
|
£0.5000
|
20/09/2029
|
20/09/2023
|
£0.1690
|
320,000
|
-
|
-
|
320,000
|
£0.5000
|
20/09/2029
|
31/12/2023
|
£0.1610
|
320,000
|
-
|
-
|
320,000
|
£0.5000
|
20/09/2029
|
31/12/2024
|
£0.1510
|
320,000
|
-
|
-
|
320,000
|
£0.5000
|
20/09/2029
|
31/12/2025
|
£0.1440
|
320,000
|
-
|
-
|
320,000
|
£0.5000
|
20/09/2029
|
31/12/2026
|
£0.1310
|
320,000
|
-
|
-
|
320,000
|
£0.5550
|
13/03/2030
|
13/03/2025
|
£0.2620
|
-
|
333,333
|
-
|
333,333
|
£0.6600
|
13/03/2030
|
13/03/2026
|
£0.2311
|
-
|
333,333
|
-
|
333,333
|
£0.7700
|
13/03/2030
|
13/03/2029
|
£0.2502
|
-
|
333,334
|
-
|
333,334
|
|
|
|
|
12,235,000
|
1,000,000
|
-
|
13,235,000
|
On 13 March 2023, 1,000,000 share
options were granted to a senior manager, with time-based vesting
conditions. One third of the options will vest on 12 March 2025 and
then one-third at the end of each subsequent year thereafter until
all options have vested. The fair value of the share options was
determined using a Black Scholes model using the following
inputs:
Weighted average share price on
date of grant (£)
|
£0.555
|
£0.555
|
£0.555
|
Exercise price (£)
|
£0.555
|
£0.666
|
£0.777
|
Length (years)
|
7
|
7
|
7
|
Expected volatility,%
|
36%
|
36%
|
36%
|
Expected dividend growth
rate,%
|
0%
|
0%
|
0%
|
Risk-free interest rate (5-year
bond),%
|
3.65%
|
3.65%
|
3.65%
|
The share options granted in 2022
with a £0.50 exercise price are subject to two vesting conditions.
The options vest upon the occurrence of both the earliest vesting
date and upon the remuneration committee determining the Hurdle
volume-weighted average price less the total dividend per share
(excluding any tax credit) ("VWAP") has been achieved for at least
a period of 365 days consecutively at any time between the grant
date to the seventh anniversary of the grant date ("Performance
Period"). There are five hurdles and subsequent vesting dates, with
20% of the total options granted vesting once these are
achieved.
The fair value of the share
options was determined using a Monte Carlo model that can simulate
a range of possible outcomes. The Monte Carlo model uses a normal
distribution of outcomes and is capable of capturing the
market-based performance conditions which should be included in the
option fair value, by allowing the simulation of daily VWAP share
price. The Monte Carlo model used the following inputs:
Grant date
|
|
1
February 2022
|
20 September 2022
|
Weighted average share price on
date of grant
|
|
£0.409
|
£0.497
|
Exercise price
|
|
£0.50
|
£0.50
|
Expected volatility,%
|
|
36%
|
36%
|
Expected dividend growth
rate,%
|
|
0%
|
0%
|
Risk-free interest rate (5-year
bond),%
|
|
1.29%
|
3.24%
|
Share-based remuneration expense
related to the share options in issue and those granted during the
year is included in the administration expenses line in the
consolidated income statement in the amount of US$0.41m (2022:
US$0.47m).
Volatility was determined by
reference to historic share price data and comparison to peer
groups where historic data is limited to a short time
period.
Share warrants
On 11 January 2022, 14,840,517
share warrants to subscribe for shares in the Company were issued
to Macquarie Bank Limited. See note 20 for further
information.
Warrant exercise price
|
|
|
£0.51
|
Fair value of one option,
£
|
|
|
0.044
|
Option pricing model
used
|
|
|
Black Scholes
|
Weighted average share price at
grant date, £
|
|
|
0.352
|
Weighted average contractual life,
years
|
|
|
3
|
Expected volatility,%
|
|
|
35%
|
Expected dividend growth
rate,%
|
|
|
0%
|
Risk-free interest rate (5-year
bond),%
|
|
|
0.73%
|
The fair value on initial
recognition of the warrants was US$879,000. Subsequent
remeasurement of the warrants was determined using the Black
Scholes pricing model with reference to updated key inputs being
the share price of one ordinary share at 31 December and share
price volatility (calculated as the volatility of one ordinary
share over a period equivalent to the remaining expected term to
redemption). Following the restructuring of the facility on 23
February 2023, the expiry date of the warrants was extended for a
further 12 months to 31 December 2025.
24. FINANCIAL RISK MANAGEMENT
The Group's activities expose it
to a variety of financial risks which result from its operating and
investing activities; market risk (foreign currency exchange risk
and commodity price risk), liquidity risk, capital risk and credit
risk. These risks are mitigated wherever possible by the Group's
financial management policies and practices described below. The
Group's financial risk management is carried out by the finance
team led by the Chief Financial Officer and under policies approved
by the Board. Group finance identifies, evaluates and mitigates
financial risks in close co-operation with the Group's senior
management team.
Capital risk
The Group's objectives when
managing capital are:
· to
safeguard the Group's ability to continue as a going concern, so
that it continues to provide returns and benefits for
shareholders;
· to
support the Group's growth; and
· to
provide capital for the purpose of strengthening the Group's risk
management capability
The Group actively and regularly
reviews and manages its capital structure to ensure an optimal
capital structure and equity holder returns, taking into
consideration the future capital requirements of the Group and
capital efficiency, prevailing and projected profitability,
projected operating cash flows, projected capital expenditures and
projected strategic investment opportunities. Management
regards total equity as capital and reserves, for capital
management purposes. The Group is not subject to externally imposed
capital requirements.
Commodity price risk
The royalty portfolio exposes the
Group to commodity price risk through fluctuations in commodity
prices of its royalty investments particularly the prices of iron
ore, gold and copper. The Board consider that the strategy of the
Group to build a diversified portfolio of royalty assets that
mirrors the global natural resources sector is sufficient
mitigation with regard to the exposure to commodity price
risk. Prior to committing to royalty acquisitions the Board
obtain independent price forecasts to ensure that such investments
are priced in accordance with consensus pricing. The Group
does not hedge against commodity price movements.
Credit risk
Credit risk refers to the risk
that the Group's financial assets will be impaired by the default
of a third party (being non-payment within the agreed credit
terms). The Group is exposed to credit risk primarily on its cash
and cash equivalent balances as set out in note 18 and on its trade
and other receivable balances as set out in note 17. The Group's
credit risk is primarily attributable to its other receivables,
being royalty receivables. It is the policy of the Group to present
the amounts in the balance sheet net of allowances for doubtful
receivables, estimated by the Group's management based on prior
experience and the current economic environment. In certain cases,
the Group has the right to audit the reported royalty
income.
For banks and financial
institutions, only parties with a minimum credit rating of BBB are
accepted. The majority of cash is held with HSBC Bank plc in the UK
and Macquarie Bank Limited in Australia.
The Directors have considered the
credit exposures and do not consider that they pose a material risk
at the present time. The credit risk for cash and cash equivalents
is managed by ensuring that all surplus funds are deposited only
with financial institutions with high quality credit ratings. There
are currently no expected credit losses.
Liquidity risk
Liquidity risk relates to the
ability of the Group to meet future obligations and financial
liabilities as and when they fall due. The Group currently has
sufficient cash resources to pay the trade and other payables and
contingent consideration when they fall due. The table below
analyses the Group's financial liabilities, which will be settled
on a gross basis. The amounts shown are the contractual
undiscounted cash flows.
Future expected payments
|
|
|
Group
|
2023
US$'000
|
2022
US$'000
|
Trade and other payables within
one year
|
2,203
|
2,277
|
Contingent consideration due >
one year
|
12,000
|
408
|
Borrowings due within one
year
|
5,625
|
7,500
|
Borrowings due > one
year
|
24,375
|
32,500
|
The US$40m of borrowings, as at 31
December 2022 was restructured in February 2023, with the first
repayment not due until mid-2024. A prepayment of US$10m was made
in the year on the Macquarie Bank loan facility resulting in
undiscounted borrowings of US$30m as at 31 December 2023. The Group
has sufficient resources to service the borrowings and meet related
financial covenants.
Foreign exchange risk
The Group is exposed to foreign
exchange risk arising from currency exposures, primarily with
respect to the United States Dollar, British Pound (GBP) and the
Australian Dollar.
The following table highlights the
major currencies the Group operates in and the movements against
the US Dollar during the course of the year:
|
Average rate
|
Reporting spot rate
|
|
2023
|
2022
|
Movement
|
2023
|
2022
|
Movement
|
British Pound
|
1.25
|
1.23
|
(0.14)
|
1.27
|
1.21
|
(0.14)
|
Australian Dollar
|
0.69
|
0.69
|
(0.06)
|
0.68
|
0.68
|
(0.05)
|
The Group's exposure to foreign
currency risk based on US Dollar equivalent carrying amounts of
monetary items at the reported date:
|
2023
US$'000
|
2022
US$'000
|
|
US$
|
GBP
|
Other
|
US$
|
GBP
|
Other
|
Cash and cash
equivalents
|
2,863
|
20
|
365
|
15,383
|
280
|
914
|
Trade and other
receivables
|
8,730
|
-
|
517
|
9,436
|
-
|
486
|
Trade and other
payables
|
(1,415)
|
(485)
|
(293)
|
(1,585)
|
(321)
|
(259)
|
Contingent
consideration
|
(8,188)
|
-
|
-
|
-
|
-
|
(408)
|
Net exposure
|
1,990
|
(465)
|
589
|
23,234
|
(41)
|
733
|
The royalty financial asset held
in 2022 was denominated in US dollars.
The Group does not hedge against
foreign exchange movements.
Exchange rate sensitivity
The Group is mainly exposed to
foreign exchange risk on the cash balances and trade and other
payables denominated in currencies other than US$ as detailed
above. A +/- 10% change in the USD: GBP and USD: AUD rate and
the impact of a +/- 10% change on the exchange rates on the
translation of foreign subsidiaries into the Group's presentation
currency would result in the following changes:
|
|
2023
US$'000
|
|
2022
US$'000
|
|
Profit/(loss)
|
Equity
|
Profit/(loss)
|
Equity
|
British Pound
|
(7)
|
-
|
(32)
|
-
|
Australian Dollar
|
497
|
137
|
145
|
314
|
The sensitivity of the
profit/(loss) to movements in the Australian Dollar was impacted in
the year by the one-off profit on disposal of intangible assets in
the Australian subsidiary.
25. FINANCIAL INSTRUMENTS
The Group and Company held the
following investments in financial instruments:
|
Group
2023
US$'000
|
Company
2023
US$'000
|
Group
2022
US$'000
|
Company
2022
US$'000
|
Fair value through profit and loss
|
|
|
|
Royalty financial
assets
|
-
|
-
|
7,653
|
7,653
|
Cash and cash
equivalents
|
3,248
|
1,667
|
16,577
|
9,537
|
Financial assets at amortised cost
|
|
|
|
|
Trade and other
receivables
|
9,247
|
102,359
|
9,922
|
93,553
|
Financial liabilities at amortised cost
|
|
|
|
|
Trade and other
payables
|
2,193
|
485
|
2,165
|
321
|
Contingent
consideration
|
8,188
|
-
|
408
|
-
|
Borrowings
|
28,878
|
-
|
38,351
|
-
|
Financial liabilities at fair value through profit and
loss
|
|
|
|
|
Warrant liability
|
607
|
607
|
2,452
|
2,452
|
|
|
|
|
|
Trade and other receivables and
trade and other payables excludes all amounts considered to be
statutory arrangements (such as VAT recoverable and corporation
tax) and prepayments.
Fair value hierarchy
Prior to its reclassification on 1
July 2023, the Group and Company had one asset, the Mimbula
investment that was measured at fair value. Mimbula was recognised
as a royalty financial asset at fair value through profit and loss
totalling 2023: US$Nil (2022: US$7.65m). The asset was deemed
to be a level 3 asset under the fair value hierarchy criteria -
some of the inputs for the fair value determination were not based
on observable market data (mainly private resource
data).
26. RELATED PARTY TRANSACTIONS
During the year legal fees
totalling US$0.30m (2022: US$0.33m) were paid to Fasken Martineau
DuMoulin LLP ("Fasken") and its worldwide affiliates. Fasken is a
legal firm in which Al Gourley is a senior partner.
During the year the Group paid
US$0.05m (2022: US$0.01m) to Bacchus Capital Advisers Limited, for
the provision of office space and meeting facilities. Bacchus
Capital Advisers Limited is a company controlled by Peter
Bacchus.
There are no other related party
transactions, or transactions with Directors that require
disclosure except for the remuneration items disclosed in note 6.
The disclosures in note 6 include the compensation of key
management personnel as all employees are considered to be key. The
Company's related parties consist of its subsidiaries and the
transactions and amounts due from them are disclosed in note
15.
27. EVENTS OCCURRING AFTER THE REPORTING
DATE
On 2 January 2024, 349,206 shares
were issued at a price of 33 per Ordinary Share to certain
directors and members of the management team as part of the 2023
bonus awards.
In January 2024, the Company
completed the acquisition of an additional gold offtake contract
over the Sugar Zone mine in Canada, owned and operated by Silver
Lake Resources. The offtake contract covers 30% of gold dore
production from the mine.
On 19 February 2024,
the Company announced that, following the
announcement on 29 November 2023, it had signed the facility
agreement with BMO Capital Markets and CIBC for a new
fully secured US$40m revolving credit facility with an option to
increase the facility to US$60m via an accordion feature. The
proceeds are be to applied to retire the
existing US$40m secured debt facility provided
by Macquarie Bank Limited.
28.ULTIMATE CONTROLLING PARTY
The company does not have a single
controlling party.
** 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 / Enzo
Aliaj
|
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 / Isabelle Morris /
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.