The Conversation (0)
Trident Royalties Maximizing Returns with Strategic Portfolio, CEO Says
May. 28, 2024 12:55PM PST
Resource Investing News “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.
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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.
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