Trident Royalties PLC (AIM:TRR) hailed its most significant quarter to date at the end of 2021 as the number of producing assets within the portfolio increased by 350%, with royalty payments “poised for substantial increase” this year.
In an update on its fourth quarter to end-December, the group said it received royalty payments of US$375,000 from its Mimbula copper royalty, while a nominal payment was received from the Koolyanobbing iron ore mine as material tonnage was mine but held for sale in the current quarter.
As of 31 January 2022, Trident's unaudited cash balance was roughly US$17.2mln, which does not include Q4 royalty receipts.
Trident expects a major increase in the first quarter of 2022 after completing the acquisition this month of a portfolio of producing gold offtake streams from Orion Resource Partners for US$69.75mlm, as well as the purchase of an indirect 1.5% gross royalty over the Sonora lithium project in Mexico.
Furthermore, the minimum payment schedule (MPS) under Mimbula royalty agreement increases to US$500,000 per quarter in 2022 and US$750,000 per quarter for the first two quarters of 2023.
And finally, following slight delays due to Covid-related supply chain issues, Trident said the California-based Lincoln gold project anticipates pouring first gold in the current quarter.
Chief executive Adam Davidson said: “This has been Trident's most significant quarter to date and sets the company up for what I am convinced will be an exciting year to come.
“The number of producing assets within the portfolio increased by 350% in the quarter - increasing not only the scale but, importantly, the diversification of our portfolio. With the support of existing and a number of new blue-chip shareholders as well as a significantly improved debt facility, we have gained direct exposure to high-quality producing assets, adding to our precious metals exposure while complementing the existing base and battery metals exposure within our portfolio.”
On Sonora, he said construction was already underway at this 19-year initial mine life project, which if completed, is expected to add to cash generation in the latter part of next calendar year, “with revenue visibility for many years to come”.
He added: "We are gaining scale with 21 assets now in the portfolio, nine of which are generating cash. Importantly, within the portfolio a number of assets are approaching key milestones which provides the potential for near-term material organic growth without the need to deploy additional capital. With a team well versed in sourcing and completing high return transactions, we are in prime position to continue to grow the size and quality of our asset base during 2022."