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Trident Royalties Maximizing Returns with Strategic Portfolio, CEO Says
“When you have a royalty of our project, it's an unbelievable position. So if an operator goes out there and raises more equity, we applaud that. That's more money going into the project,” said Trident Royalties CEO Adam Davidson.
Trident Royalties (LSE:TRR,OTCQB:TDTRF) holds a net 1.05 percent gross revenue royalty over the Thacker Pass lithium project, which was recently granted a conditional loan commitment of US$2.26 billion by the US Department of Energy. According to CEO Adam Davidson, Thacker Pass royalty receipts are expected to impact Trident’s revenue dramatically.
“People invest in mining equities because 80+ percent of mines that are built extend their life or expand the production profile. But we still get exposure to that, obviously getting exposure to their revenue. If they extend the mine life, we still get that upside. So it's a nice blend of being in this slightly more protected position,” he said.
“If we were a mining company, we'd probably have (one) single project, maybe not even in production yet. As a royalty company, we've got 21 assets spread around the globe, with multiple commodities. So on top of the instruments being de-risked relative to equity (and) the business model itself, Trident as a company is this low-risk profile relative to a mining company.”
Thacker Pass royalty receipts include $10.5 million generated per year at Phase 1 production, with a potential increase to $21 million per year at Phase 2.
Watch the full interview with Trident Royalties CEO Adam Davidson above.
Disclaimer: This interview is sponsored by Trident Royalties (LSE:TRR,OTCQB:TDTRF). This interview provides information which was sourced by the Investing News Network (INN) and approved by Trident Royalties in order to help investors learn more about the company. Trident Royalties is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Trident Royalties and seek advice from a qualified investment advisor.
This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.
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