12/8/2023 0 Comments Cash flow 202 onlineIn each case, the use of deferred consideration enabled Trident to optimise our deployment of capital and align our interest in achieving cash flow from these assets with milestone payments to the vendor. Each of these assets has a clear pathway to production and is a key asset to the relevant operator. Since the start of the year, we completed three transactions, all pre-production assets: La Preciosa (silver), Dandoko (gold) and Paradox (lithium). The cash flow from this royalty, at current lithium prices, should exceed $30 million per annum. The project is on track to be the largest lithium producer in North America within the next three years. In addition, General Motors announced a $650 million equity investment in the project with an accompanying offtake agreement. During the period, we saw the United States Federal Court confirm the validity of the permitting process for the project and the commencement of construction on site. One of our cornerstone assets, Thacker Pass, is an excellent example of a pre-production asset that is advancing towards production. As these assets move to production and generate cashflow, the risks diminish and we can expect an enhanced valuation reflected in our share price. Some of the best acquisition opportunities are pre-production royalties. But as our portfolio expands, our intention is to have a balanced portfolio of assets reflecting the broader mining sector. We have a strong balance sheet, which enables us to take advantage of opportunities in this market.Īs we build our portfolio, we may be 'overweight' in certain minerals for a period of time. As mentioned in our 2022 Annual Report, our priorities for 2023 are to further reduce our cost of capital (as this directly improves our competitiveness) and deploy capital for value. Our strategy remains unchanged delivering significant shareholder returns through value accretive transactions across precious, base, battery and bulk materials. I should like to thank Paul for his guidance as Chairman. This is my first statement as Chairman, taking over from Paul Smith at our Annual General Meeting in June. Over the same period, the FTSE All Share Precious Metals and Mining Index fell 9.0%, and the AIM All Share Index fell 9.4%. A decline in the share price is disappointing but reflects the generally cautious market sentiment around growth. In the six months to 30 June 2023, the price of Trident shares declined by 9.0%, to close the period at 45.5 pence. St Brides Partners Ltd (Financial PR & IR) Stifel Nicolaus Europe Limited (Joint Broker) Mr O'Reilly is a Principal Consultant working for Mining Analyst Consulting Ltd which has been retained by Trident to provide technical support.Īll figures in US$ unless otherwise statedĬolin Aaronson / Samantha Harrison / Samuel Littler The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, MIMMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. It has been a solid start to the year and the Board and I eagerly anticipate sharing further updates as the year progresses." All three transactions have enhanced the diversity of our portfolio and are set to contribute to our growing cash flow. The La Preciosa transaction completed during the period was then swiftly followed by two deals post-period. "Trident has continued to see material advancements at several key assets, with permitting decisions resulting in the commencement of construction at the Thacker Pass Lithium Project.
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