Trident Royalties PLC (AIM:TRR) said it will "look at the possibility of an appropriate dividend policy" as it completed the acquisition of a portfolio of producing gold offtake streams from Orion Resource Partners for US$69.75mln.
The acquisition is expected to provide immediate cash flow, amounting to approximately US$13.3mln in 2022, as ramp-up and expansions occur at the Blyvoor and Los Filos gold mines respectively.
This is expected to increase to US$14.3mln per year between 2023 and 2026. From 2027 to 2035 it expects average annual revenue of US$6.3mln
"The completion of this transaction marks the biggest milestone achievement to date for Trident, increasing our number of producing assets by 350%,” said Adam Davidson, chief executive of Trident.
“When coupled with our existing assets, the addition of a portfolio of offtakes over seven producing mines located in six countries materially increases Trident's scale and diversification. Now, not only do we provide diversified exposure to lithium, copper, gold and iron ore, but we do so with a portfolio underpinned by assets which provide investors with visibility on sustainable, well diversified cash flows far into the future.
"With this, we can now look at the possibility of an appropriate dividend policy in due course which will seek to provide regular returns on investment to our shareholders.”
The portfolio comprises offtakes covering seven producing gold mines operated in six countries.
Trident's entire portfolio now encompasses a total of 20 assets, nine of which are delivering cash flow.
Trident has drawn a US$40mln secured debt facility with Macquarie Bank to part-fund the acquisition and to retire the previous US$10mln Tribeca debt facility.