Trident Royalties Share Discussion Threads

[the skipper] 22/3/2021 23:42

The question in my mind is whether Orion will now dump the 2.4m consideration shares into the market as there seem to be no 'orderly market' provisions relating to their disposal. We will find out soon enough I guess.

[the deacon] 22/3/2021 20:33

Should have a quarterly update in May

[r2oo] 22/3/2021 19:52

Yea watched that earlier today.I really like this company and the CEO. I am heavily invested into APF already but I like the idea of getting into a fledgling royalty company.Think I'll wait for a dip.When are next results out?

[the deacon] 22/3/2021 17:30

https://youtu.be/cwuzpsyw9XMGood interview. Another copper royalty very close

[the deacon] 22/3/2021 17:05

Choose whichever is most applicable. Sophisticated investor?

[wassapper] 22/3/2021 16:47

They are presentign this Wed 24th

[r2oo] 22/3/2021 16:45

What did you selSelect as investor type?InstitutionalSelf certified sophisticated investorCertified high net worth investorsJournalist??

[the deacon] 22/3/2021 16:24

I am. I've been in since the IPO. I'm a big fan of the mining royalty model, and hold many others - such as Anglo Pacific, Sandstorm, Osisko and a few more.I've been impressed with what I've seen of the management here so far. Building a good looking portfolio. I'd like to see them pick up a few more paying royalties, but the pipeline is starting to look very good.

[r2oo] 22/3/2021 16:20

Thanks Are you in on Trident yet?Mining royalty companies seem to do very well and I like the CEO after watching several interviews on YouTube. He has the experience to make this company very profitable indeed.I like that they have a plan to diversify across multiple commodities.

[the deacon] 22/3/2021 16:14

No, you can just go ahead and register on their research hub

[r2oo] 22/3/2021 16:10

Thanks DeaconIs it behind a paywall?

[the deacon] 22/3/2021 16:01

Pop onto the Tamesis website and register for access to their research. They've done some great analysis and valuation info on TRR.

[wassapper] 22/3/2021 14:52

Probably best to join one of the online investor presentations to hear the story and maybe ask a direct question. It is a fair one.

[r2oo] 22/3/2021 14:14

So how do you value a stock like this with very limited historical financial data?How do I know if I'm overpaying or not?

[1savvyinvestor] 19/3/2021 23:13

At by least with such small allocations we won't see huge sell trades going through !!!! Lol. It's put company on peoples radar though. - so one to watch . My allocation is disable!! £300 worth!!

[deadly] 19/3/2021 13:11

scaled back over 75%

[longshanks] 19/3/2021 12:03

'Heavily oversubscribed'They closed early, so hopefully they won't scale back the retail requests too much

[swanvesta] 19/3/2021 10:26

Looks good to me!

[bagpuss67] 19/3/2021 07:52

Subscribed to the placing. Looks good. A nice diversification from my other royalty holding.

[the skipper] 07/2/2021 20:33

New presentation on website and featured in UK Investor email this weekend, so it might bring in some new blood here:

[the skipper] 01/2/2021 22:08

Two excellent updates today and metal prices on a tear. I’m therefore a little disappointed with today’s rise, but it only got going after lunch so perhaps the news is starting to reach a wider audience.

[the skipper] 27/1/2021 23:04

Further to my post yesterday I have now obtained a copy of Shard’s research note. It runs to 34 pages so I can’t post it all on here but here’s their summary:

“Spearing value in the diversified royalty space

Trident Royalties plc is a relatively new royalty and streaming company focused on building a diversified portfolio of royalty assets to broadly mirror the mining sector. Unlike the majority of other royalty companies which are focused on gold/silver in the Americas, Trident’s aim is to unearth value with low-cost acquisitions across multiple commodities in tier 1 and lower risk mining jurisdictions. Acquisition of the Pukaqaqa royalty marks the 6th transaction since listing on AIM in June 2020 reflecting the company’s fast-paced growth strategy.


* Reflect the sector. Trident's aim is to construct a portfolio that broadly mirrors the commodity exposure of the mining sector. This is in stark contrast to the majority of North American-listed royalty peers that are focused on Au/Ag in North and Latin America. Trident has a substantial pipeline of transaction opportunities with numerous NDAs covering base, precious, bulks, battery and industrial metals spread throughout Australia, Europe, Africa, North and Latin America. Opportunities are primarily focused on Tier 1 mining jurisdictions and lower-risk emerging markets. We calculate that c.83% of all revenue generated by royalty companies in our database last year was attributable solely to precious metals and so Trident has an unrivalled opportunity to become the go-to diversified royalty platform.

* Unearthing value. With a broader investment mandate, Trident can target attractive small to mid-sized transactions in the royalty space which are often overlooked in a sector dominated by large players, who struggle to source new deals of sufficient scale to move the needle. Trident can be fleet of foot and we see compelling opportunities for the company in Australia, Africa and Europe over a wide range of commodities.

*Disciplined growth. The royalty/streaming model has the entire mining sector to play within and as we have discovered, it’s a bit of wormhole. The upfront payment model of royalties means that how much to pay or what not to invest in, are equally important considerations. It’s about casting a wide search net, relentless DD, disciplined capital allocation and being cognizant of equity dilution. Trident’s approach is reassuringly restrained. The company’s acquisitions to date have all had low valuation entry points and careful allocation of cash or equity. This is in contrast to some of the punchy recent transactions in the royalty space.

* Positioned for the big build. Trident has secured two immediately cash generative royalty assets. With cash already flowing and low overhead costs, the company is well funded to deploy its cash and mandated debt facility to build the portfolio towards critical mass. We expect steady news flow with each new royalty acquisition providing an opportunity for a value re-rating. Already, TRR’s share price is up 100% since IPO in June 2020.

*Leveraging the “A” team or more aptly the “PE” team considering the strong mining private equity credentials and track record of Trident’s board and management. Deep industry knowledge and connections along with the ability to view deals from a PE perspective are fundamental prerequisites that give Trident the edge to source and execute on high quality and low-entry valuation transactions.

* Valuation. We initiate on Trident with a 47p/sh short-term target price backed by an all-in NAV of $54.6m. Our TP is based on a weighted blend of NAV and a forward EV/EBITDA multiple. Our valuation implies that Trident is currently trading at 1.12x NAV, whereas we see more established mid-tier royalty peers trading at 1.5x-2.0x NAV. Our NAV represents a snapshot based on Trident’s current portfolio and we see considerable potential for value accretion as the company presses ahead with building multiple layers of long-life diversified royalties. Any increase in commodity prices would also produce a material boost. If we plug in flat-forward spot metal prices in lieu of our LT forecast, our TP would be 67p/sh.

* Trident is superbly positioned to exploit the gap in the royalty/streaming space. With producing cash-generative royalties already under its belt and an active pipeline of new opportunities, Trident is firmly pursuing an aggressive yet disciplined growth trajectory. Scale will bring higher royalty income, increased diversity and lower risk, the convergence of which should help unlock premium valuation multiples. In the current volatile markets, picking individual mining equities is challenging but Trident offers ground-floor entry into what looks likely to become a major royalty player in London. We have analysed the evolution of royalty peers and investing early appears to be the key. We see TRR’s current share price and value as unchallenging versus peers given the company is already a significant revenue generator.“

[the deacon] 27/1/2021 17:47

Added to my holding today. Base metal/broad commodity royalties should do very well over the next few years