Stockbroker Liberum kicked off coverage of Trident Royalties with a ‘buy’ recommendation, claiming it is in the “right place [at the] right time.”
Trident offers investors diversified commodity exposure, without the miners’ cost inflation, and is a key funding source for junior miners said the broker.
The current upturn in the mining capex cycle is being led by the juniors rather than the majors, according to analyst Ben Davis.
“Hence, Trident is in an excellent position to benefit from both structural ‘greening’ and a cyclical lift,” Davis added.
He added that no mining equity offers the same rates of growth for the same risk profile hence a 65p price target – a 44% premium on Tuesday afternoon’s price of 45.2p.