Trident Royalties PLC (AIM:TRR) received the first cash from a portfolio of gold revenue streams it acquired from Orion Resources earlier this week for close to US$70mln.
Royalty specialist Trident acquired 1,858 ounces of gold, which it subsequently sold for a margin of $30.68/oz, generating cash of US$57,000.
That equates to a NSR (net smelter royalty) equivalent margin of 1.69% for the batch, which it said was well above its long term base case assumption.
The portfolio comprises offtake deals for seven producing gold mines operated in six countries and is expected to generate cashflow of 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 and to average US$6.3mln annually from 2027 to 2035.
Adam Davidson, Trident’s chief executive, said: "It is pleasing to note that deliveries to Trident under the contracts have now commenced, with this delivery being the first of multiple deliveries and regular sales expected to occur on a weekly basis going forward.
"The acquisition of the portfolio provides Trident with immediate revenue, underpinned by a portfolio of high-quality producing gold projects which significantly enhance the scale and diversification of Trident's revenue base.”