Q2 2024 Activities Update

Trident Royalties PLC

08 August 2024

 

8 August 2024

Trident Royalties Plc

("Trident" or the "Company")

Q2 2024 Activities Update

Trident Royalties Plc (AIM: TRR, OTC: TDTRF), the diversified mining royalty company, is pleased to provide an update on its activities during the quarter ended 30 June 2024.

HIGHLIGHTS

·      On 13 June 2024, it was announced that the boards of directors of Deterra Global Holdings Pty Ltd ("Bidco") and Trident Royalties Plc reached an agreement on the terms and conditions of a recommended all-cash offer by Bidco for the entire issued and to be issued share capital of Trident (the "Offer"). The Offer is being effected by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (the "Scheme") and is subject to the terms and conditions set out in the shareholder circular relating to the Scheme published by Trident on 4 July 2024 (the "Scheme Document"). Under the terms of the Offer, each Trident shareholder will be entitled to receive 49 pence in cash for each Trident share.¹ Bidco is a direct wholly owned subsidiary of Deterra Royalties Limited ("Deterra").¹

·      The Offer represents a 42% premium to the closing price per Trident share of 34.5 pence on 23 April 2024 (being the date prior to the submission of Deterra's first non-binding, conditional proposal), and values Trident's entire issued and to be issued share capital at approximately £144 million.¹

·      On 26 July 2024, Trident announced the results of the Court Meeting (as defined in the Scheme Document) and General Meeting (as defined in the Scheme Document) held in connection with the Offer. At the Court Meeting, the requisite majorities of Scheme Shareholders (as defined in the Scheme Document) voted in favour of the resolution to approve the Scheme. At the General Meeting, the requisite majority of Trident shareholders voted to pass the special resolution proposed at the General Meeting.²

·      As of 7 August 2024, the Company had an unaudited net debt position of US$22.8 million, with quarterly receipts of US$2.65 million in Q2.

Royalty / Stream (US$M)	Q2 2024	Q1 2024	% Change	Q2 2023
Gold offtake portfolio	2.25	1.52	48%	1.15
Koolyanobbing iron ore royalty*	0.20	0.47	-57%	0.29
Mimbula copper royalty**	0.12	0.06	100%	0.75
Lincoln gold royalty***	0.08	0.15	-50%	0.15
Total	2.65	2.20****	20%	2.34

     * Calculated using Reserve Bank of Australia FX rates: 30 June 2023 (0.6630), 28 March 2024 (0.6532), and 28 June 2024 (0.6624)

     ** Reflects the step-down in royalty rate following the conclusion of the minimum payment schedule of US$5M in Q2 2023

     *** Reflects the sale of 50% of the royalty in Q1

     **** Excludes the $0.78m proceeds from the partial sale of the Lincoln Gold royalty

Adam Davidson, Chief Executive Officer of Trident commented:

"It's with mixed emotions that I note the approval by shareholders of the sale of Trident Royalties. While I had full confidence in Trident's ability to continue to grow and add value to the portfolio, I'm pleased to have delivered a great outcome for investors, with a 145% shareholder return since our IPO in 2020.

I would like to take this opportunity to thank some of the key supporters of Trident that were integral to the inception of the strategy and supported us as we grew the business from one royalty, to over 20 assets. They all worked tirelessly to grow Trident from a simple concept, to one of the best performing royalty companies over its lifespan.

I would also like to thank shareholders for their consistent and steadfast support. I consider it the personal highlight of my career to have been entrusted with your capital. I hope to have the opportunity to work with many of you again soon."

References

1:             Source: Trident Royalties announcement dated 13 June 2024

                ( https://polaris.brighterir.com/public/trident/news/rns/story/rmdp89r )

2:             Source: Trident Royalties announcement dated 26 July 2024

                ( https://polaris.brighterir.com/public/trident/news/rns/story/rgppk7r )

Competent Person's Statement

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. Mr O'Reilly is a Principal Consultant working for Mining Analyst Consulting Ltd which has been retained by Trident to provide technical support. In relation to the mineral resource estimates, the company confirms that the material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed, and it is not aware of any new information or data that materially affects the estimates.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

** Ends **

Contact details:

Trident Royalties Plc Adam Davidson / Richard Hughes	www.tridentroyalties.com [phone] / [phone]
Grant Thornton (Nominated Adviser) Colin Aaronson / Samantha Harrison / Elliot Peters	www.grantthornton.co.uk [phone]
Liberum Capital Limited (Joint Broker) Scott Mathieson / Cara Murphy	www.liberum.com [phone]
Stifel Nicolaus Europe Limited (Joint Broker) Callum Stewart / Ashton Clanfield	www.stifelinstitutional.com [phone]
Tamesis Partners LLP (Joint Broker) Richard Greenfield	www.tamesispartners.com [phone]
St Brides Partners Ltd (Financial PR & IR) Susie Geliher / Charlotte Page	www.stbridespartners.co.uk [phone]

About Trident

Trident is a growth-focused diversified mining royalty and streaming company, providing investors with exposure to a mix of base battery, precious, and bulk metals.

Key highlights of Trident's strategy include:

·	Building upon a royalty and streaming portfolio which broadly mirrors the commodity exposure of the global mining sector (excluding fossil fuels) with a bias towards production or near-production assets, differentiating Trident from the majority of peers which are exclusively, or heavily weighted, to precious metals;
·	Acquiring royalties and streams in resource-friendly jurisdictions worldwide, while most competitors have portfolios focused on North and South America;
·	Targeting attractive small-to-mid size transactions which are often ignored in a sector dominated by large players;
·	Active deal-sourcing which, in addition to writing new royalties and streams, will focus on the acquisition of assets held by natural sellers such as: closed-end funds, prospect generators, junior and mid-tier miners holding royalties as non-core assets, and counterparties seeking to monetise packages of royalties and streams which are otherwise undervalued by the market;
·	Maintaining a low-overhead model which is capable of supporting a larger scale business without a commensurate increase in operating costs; and
·	Leveraging the experience of management, the board of directors, and Trident's adviser team, all of whom have deep industry connections and strong transactional experience across multiple commodities and jurisdictions.

The acquisition and aggregation of individual royalties and streams is expected to deliver strong returns for shareholders as assets are acquired on terms reflective of single asset risk compared with the lower risk profile of a diversified, larger scale portfolio. Further value is expected to be delivered by the introduction of conservative levels of leverage through debt. Once scale has been achieved, strong cash generation is expected to support an attractive dividend policy, providing investors with a desirable mix of inflation protection, growth and income.

Forward-looking Statements

This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Trident provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Trident believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Mining exploration and development is an inherently risky business. In addition, factors that could cause actual events to differ materially from the forward-looking information stated herein include any factors which affect decisions to pursue mineral exploration on the relevant property and the ultimate exercise of option rights, which may include changes in market conditions, changes in metal prices, general economic and political conditions, environmental risks, and community and non-governmental actions. Such factors will also affect whether Trident will ultimately receive the benefits anticipated pursuant to relevant agreements. This list is not exhaustive of the factors that may affect any of the forward‐looking statements. These and other factors should be considered carefully and readers should not place undue reliance on forward-looking information.

Third Party Information

As a royalty and streaming company, Trident often has limited, if any, access to non-public scientific and technical information in respect of the properties underlying its portfolio of royalties and investments, or such information is subject to confidentiality provisions. As such, in preparing this announcement, the Company often largely relies upon information provided by or the public disclosures of the owners and operators of the properties underlying its portfolio of royalties, as available at the date of this announcement.

 

END