Trident Royalties is rated a buy by Liberum, which sees 20% annual revenue through to 2028 and exposure to commodities without the miners’ cost inflation.
The broker is gloomy over the mining sector generally but sees specific companies, such as Trident, as having appeal.
“Royalty companies are a key funding source for junior miners, engaged in the delivery of base metals and battery inputs, needed in the global push to decarbonise.
“Right now, the upswing in the mining capex cycle is being led by the juniors rather than the majors.
“Hence, Trident is in an excellent position to benefit from both structural ‘greening’ and a cyclical lift.”
No junior miner offers the same growth profile, says Liberum, with catalysts over the next 12 the permitting of Thacker Pass and the outcome of the Sonora legal case pending Mexico nationalisation.
Buy with an upgraded target price of 75p is Liberum’s view.