Trident Royalties PLC (AIM:TRR) said today that a federal decision expected next Thursday on the Thacker Pass lithium project could be “transformational” for its future cash generation prospects.
Adam Davidson, chief executive of Trident, said in a statement that approval of the project would have a “transformational effect on the company’s expected future cash generation”.
Trident owns 60% of a 1.75% gross revenue royalty stream in the project, according to its website, meaning it is poised to generate future income from its operations.
The lithium project is due to begin construction in the second half of this year if a federal permit is secured following an appeal process, Trident said. Thacker Pass is one of the largest lithium resources in the US being developed by Lithium Americas, which could supply lithium for use in electric vehicles produced by manufacturers such as Tesla.
In a quarterly trading update to the market, mining royalties company Trident said its royalty receipts rose to US$5.7mln in the second quarter, up from US$381,814 in the same period of last year.
Its royalties from iron ore and copper rose substantially year over year, after a “notable increase” in iron ore sales from a tenement at the Koolyanobbing Project in Western Australia.
The miner generated half a million dollars of copper royalties in the second quarter, up a third from US$375,000 in the equivalent part of 2021.
Iron ore royalties rose from US$6,814 in the second quarter of 2021 to US$448,847 in the recent quarter.
Its gold offtakes portfolio generated about £1mln of income in the three months to 30 June, less than US$1.6mln in the prior quarter, following the closure of the Mercedes Mine and volatility in the price of gold, but this was bolstered by a US$3.7mln one-off payment from the restructure of the Premier Gold Offtake. In addition, the Santa Luz mining project in Brazil, run by Equinox Gold (TSX:EQX), hit on its first gold.
"We are pleased to report another quarter of solid progress across our portfolio, underpinned by a fivefold increase in underlying revenue as compared to Q2 2021," Davidson said. “In addition to strong operator performance at key assets, we are particularly pleased with the refinement of the portfolio over the quarter, most significantly via the restructure of the Premier Gold Offtake and amendment to the Sonora lithium royalty transaction.”