Trident Royalties' new US$40 million credit facility should result in result in interest savings of up to US$1.3 million per annum plus giving scope for future acquisition through the accordion, says Stifel.
“The expanded debt facility, combined with cash of roughly US$18 million as of year-end, could enable Trident to pursue more transformational acquisitions with clearer visibility on near-term revenue,” said the broker.
Elsewhere, the Sonora royalty continues to face challenges, adds the broker.
“We had already excluded Sonora from our estimates but previously ascribed US$45.8 million of value to the royalty.
“As such, extending the long-stop date and maintaining exposure to any potential upside remaining as decisions are rendered on the tenure of the royalty and project concessions appears sensible.”