Trident Royalties PLC (AIM:TRR) chief executive Adam Davidson told investors that the company has continued to generate good momentum over the past 12 months, as the company released an activities report for the quarter ended 31 December 2022.
“We finished 2022 with our best operational quarter since inception,” Davidson said in the statement. “Q4 2022 saw record royalty receipts of US$3.5mln, 46% higher than the previous quarter and a ninefold year-on-year increase."
He added: “There has also been significant progress across the portfolio. Mimbula continues to develop into a meaningful copper operation, recently producing first cathode and with the operator raising in excess of US$135m across 2022 to support development and future expansion plans. Legal hearings for appeals at both Thacker Pass and Sonora were held in early January, with decisions expected in the coming months.
“We remain encouraged by progress at both, which moves us towards achieving meaningful battery metal exposure and transforming the portfolio and future cashflows.”
In the report, required for its listing in Australia, Trident detailed record quarterly royalty receipts of US$3.5mln from its exposure to gold, copper, mineral sands, and iron ore, a 46% quarter-on-quarter increase and a ninefold increase over the same period in 2021.
The company's total royalty receipts for 2022 reached US$13.8mln, an eightfold increase over the previous year.
As of January 27, 2023, Trident had a cash balance of US$21.8mln, providing a solid foundation for future acquisitions. The cash balance is expected to increase further upon completion of an asset sale of a portfolio of pre-production gold royalties for up to US$15.8mln.
Davidson commented: “Commodity demand requires capital investment, and with traditional equity and debt markets currently unfavourable to many operators, royalties are likely to fill part of this funding gap.
“Having built a very strong balance sheet over the past year, Trident is well placed to be part of this. We have a solid core portfolio and are assessing a wide range of opportunities. We look forward to reporting on progress during what is likely to be a key year for the company."