Strategy

Trident plans to rapidly establish itself as a diversified mining royalty and streaming company, providing investors with exposure to a mix of base and precious metals, bulk materials (excluding thermal coal) and battery metals.

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Key highlights of Trident’s strategy include:

  • Constructing a royalty and streaming portfolio to broadly mirror the commodity exposure of the global mining sector 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 resources-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;
  • 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 an attractive mix of inflation protection, growth and income.

Royalties & Streams

Trident believes that royalty and streaming assets represent a highly attractive investment opportunity.

Royalties and streams typically earn a percentage of turnover from the production of commodities, providing direct exposure to commodity prices without direct exposure to operating and other expenses, and therefore have a lower risk profile than mining equities.

Capital and exploration expenditure by operators often benefit a royalty or stream holder by extending mine lives, increasing production rates and progressing development assets towards production without cost or dilution to the holder.

Producing royalties and streams tend to deliver strong cash returns which can be leveraged through relatively lower cost debt and can underpin dividend returns to shareholder.