TIDMTRR
RNS Number : 5074A
Trident Royalties PLC.
30 September 2020
30 September 2020
Trident Royalties Plc
Interim Results
Trident Royalties Plc ("Trident" or the "Company") (AIM:TRR,
FSX:5KV), the growth-focused mining royalty and streaming company,
is pleased to present its interim financial statements to
shareholders for the six months ended 30 June 2020.
The Interim Results for the period ended 30 June 2020 are set
out in full below and are available on the Company's website,
www.tridentroyalties.com .
HIGHLIGHTS
-- Admitted to AIM on 2 June 2020 having raised GBP16 million
(c. US$20 million), representing the largest equity placing
associated with any new listing in any sector across the London
markets in over three months, during a time of COVID-19 related
lockdown restrictions
-- Board of Directors strengthened with the addition of Al
Gourley as a non-executive director in May 2020 and Helen Pein as a
non-executive director in September 2020.
-- Since AIM admission, Trident has announced five transactions
comprising a total of eight royalties:
o A 1.5% Free On Board revenue royalty over part of the
producing Koolyanobbing Iron Ore Operation in Western
Australia;
o A 1.25% Gross Revenue Royalty over the Mimbula copper mine and
associated tailings dumps in the Zambian Copperbelt, which is
currently ramping up production (royalty rate drops to 0.3% upon
repayment of the initial acquisition cost, and then further drops
to 0.2% once the royalty has been paid on 575,000 tonnes of
copper);
o A variable gold price royalty over production from the
development stage Spring Hill Gold Project* in Australia's Northern
Territories;
o A portfolio of four gold royalties over exploration and
development stage projects* - including projects operated by proven
explorers / developers such as Calidus Resources and Novo Resources
- in Western Australia; and
o A 1.5% Net Smelter Return royalty over the +1 million ounce
Lake Rebecca Gold Project* in Western Australia.
-- The Company continues to review a compelling pipeline of
assets spanning various geographies and mining commodities, lending
credence to the opportunity available to Trident.
* subject to FIBR approval in Australia.
** Ends **
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
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.
Contact details:
Trident Royalties Plc www.tridentroyalties.com
Adam Davidson +1 (757) 208-5171
Grant Thornton UK LLP (Nominated www.grantthornton.co.uk
Adviser) +44 020 7383 5100
Colin Aaronson / Seamus Fricker
-------------------------
Tamesis Partners LLP (Financial www.tamesispartners.com
Adviser and Joint Broker) +44 203 882 2868
Richard Greenfield
-------------------------
Shard Capital Partners LLP (Joint www.shardcapital.com
Broker) +44 207 186 9927
Erik Woolgar / Isabella Pierre
-------------------------
Yellow Jersey (Public Relations) www.yellowjerseypr.com
Charles Goodwin +44 7747 788 221
-------------------------
CEO STATEMENT
The Company had a transformative first half of 2020, achieving a
number of significant milestones during the period including the
change of investing policy and admission to the AIM Market of the
London Stock Exchange ("AIM"), the successful completion of a GBP16
million equity fundraise, the strengthening of the Board with the
appointment of high-calibre non-executive directors, and - perhaps
most importantly - the announcement of initial royalty acquisitions
to formally launch Trident as a diversified, growth-oriented mining
royalty and streaming company.
Admission to Trading on AIM
On 25 March 2020, Trident announced that it was seeking to be
admitted to trading on the AIM Market, considered to be a more
suitable market for a rapidly growing royalty and streaming
company. The Company successfully cancelled its shares from the
Official List (standard segment) of the Main Market and was
admitted to AIM on 2 June 2020. The AIM admission was coupled with
the completion of a successful raise of GBP16 million (c. US$20
million) which was well supported by both existing and new
shareholders, providing Trident with the necessary capital to
execute on its strategy.
Royalty Acquisitions
Immediately following admission, on 3 June 2020 Trident
announced the completion of its acquisition of a 1.5% Free On Board
revenue royalty covering part of the producing Koolyanobbing Iron
Ore Operation in Western Australia. The Koolyanobbing Iron Ore
Operation is operated by Mineral Resources Limited, a
well-established ASX listed iron ore producer, and provides Trident
with immediate cash flow from a significant and expanding iron ore
asset located in the iron ore hub of Western Australia. The royalty
payment for the second quarter of 2020 amounted to A$903,215
(US$632,250), an increase of 67% from the first quarter 2020
payment, due to strong iron ore prices and the continued ramp-up of
operations at Koolyanobbing.
On 29 June 2020, Trident announced the acquisition of a Gross
Revenue Royalty over the producing Mimbula copper mine and
associated tailings dumps located in the Zambian Copperbelt. The
royalty rate drops down from 1.25% to 0.3% upon repayment upon
receipt of aggregate royalty payments of US$5,000,000, being the
consideration for the royalty and then further drops down to 0.2%
once royalty has been paid on 575,000 tonnes of copper. Mimbula is
an attractive long-life copper asset operated by an experienced
team, which is currently ramping up production. The royalty came
into effect on 1 July 2020, with the inaugural quarterly payment
expected shortly. The Mimbula copper royalty provides Trident
investors with long-term exposure to an attractive commodity,
sourced from an operation with compelling economics.
On 14 July 2020, Trident acquired, subject to Australia's
Foreign Investment Review Board ('FIRB') approval, a variable gold
price royalty (A$13.30 per ounce of gold at current gold price,
equivalent to approximately 0.5% Gross Revenue Royalty) over
production from the Spring Hill Gold Project located in Australia's
Northern Territories and operated by PC Gold Pty Ltd. Spring Hill
is located in a highly prospective region and contains a current
gold resource with significant expansion potential, as well as the
potential to fast-track to production through processing via
existing nearby infrastructure.
On 28 August 2020, Trident acquired, subject to FIRB approval, a
portfolio of gold royalties over exploration and development stage
projects in Australia. The royalty portfolio comprises the
following royalties:
-- Talga Talga - 1.5% Net Smelter Return
-- Warrawoona - 1.5% Net Smelter Return
-- Mosquito Creek - 1.5% Net Smelter Return
-- Bulfinch - 1.0% Net Smelter Return
The royalty package hosts several development and advanced stage
exploration projects operated by proven explorers / developers and
have the potential to benefit from resource upgrades, in addition
to future gold production. Two of the underlying projects are being
actively advanced by the project operators and we expect material
newsflow related to the projects over the coming 12 months.
Finally, on 24 September 2020, Trident acquired, subject to FIRB
approval, a 1.5% Net Smelter Return royalty on the Lake Rebecca
Gold Project in Western Australia. Lake Rebecca is a
one-million-ounce development stage project operated by Apollo
Consolidated Limited ("Apollo"), a well-funded operator. Apollo is
currently conducting a large-scale exploration programme that has
the potential to significantly increase, as well as upgrade, the
current resource inventory with impressive post-resource
intercepts. The operator expects to commence project construction
in 18-24 months, which would indicate first gold production in
2023. Trident sees Lake Rebecca as a future cornerstone asset,
providing long-life exposure to precious metals production from a
solid asset located in a tier one mining jurisdiction.
Pipeline of attractive opportunities
The Lake Rebecca royalty represented Trident's fifth announced
transaction (for a total of eight royalties) in the space of four
months since admission to trading on AIM, demonstrating the
strength of the pipeline of opportunities available to the Company.
In line with its strategy to rapidly establish Trident as a
diversified royalty and streaming company, Trident continues to
progress discussions with multiple parties with regards to the
potential acquisition of additional royalties and streams.
These opportunities span various geographies and commodities in
the precious, base, battery and bulk commodity sectors and across
the asset lifecycle. We are extremely heartened by the breadth and
depth of opportunities that we are seeing, which bodes well for the
successful execution of our strategy.
Strengthening the Board
During the period, Trident continued to strengthen the Board and
in May 2020, welcomed Al Gourley as a non-executive director. Mr.
Gourley is the London Managing Partner of Fasken Martineau, an
international law firm, where his practice focuses on finance and
asset transactions in the natural resource industry. He has served
as a director of several TSX, TSX-V and AIM mining and mineral
exploration companies, including a company that was acquired by
Franco-Nevada for its gold royalty on the Newmont Ahafo Mine in
Ghana.
In September 2020, we further strengthened the Board with the
appointment of Helen Pein. Helen is a highly experienced economic
geologist with a career that has spanned over 30 years and
encompasses multiple commodities and geographies. During her
career, Helen has been part of the executive teams directly
responsible for the discovery and evaluation of a number of
world-class mineral deposits. These include the Burnstone, Buzwagi
and Tulawaka gold mines, the Corridor Sands and Kwale mineral sands
deposits and the Bisie Tin mine.
Outlook
Commodity markets continued to strengthen in Q3, with a
generally positive outlook for the remainder of the year. Given our
current royalty portfolio, we are particularly pleased to note that
iron ore, copper and gold have performed exceptionally well. In
addition, continued uncertainty in the financial and capital
markets presents an opportunity to Trident, as we are well
positioned to act as both an acquirer of existing royalties, and
writer of new royalties and streams. In summary, we have had a very
active year thus far - with the highlight being the rapid addition
of such compelling asset to Trident's royalty portfolio. The
Company is in an enviable position as it remains well capitalised
to continue to execute on its strategy.
On a final note, I would like to extend my gratitude to our
directors, employees, consultants and our advisers for their
pivotal roles in supporting the successful listing on AIM. I would
also like to take the opportunity to thank our shareholders for
their continued support during this time of transition and look
forward to reporting on our continued progress.
Adam Davidson
Chief Executive Officer
30 September 2020
Condensed Consolidated Statement of Comprehensive Income
for the six-months ended 30 June 2020
*re-stated
Six months Six months
ended ended
30 June 30 June
2020 2019
Notes Unaudited Unaudited
US$ US$
--------------------------------------------- ------ ------------ -----------
Revenue 948,677 -
Cost of Sales (591,427) -
Gross profit 357,250 -
--------------------------------------------- ------ ------------ -----------
Administrative expenses 3 (588,552) (138,844)
Listing expenses (856,241) -
--------------------------------------------- ------ ------------ -----------
Operating loss (1,087,543) (138,844)
Interest income 20,985 -
--------------------------------------------- ------ ------------ -----------
Loss before taxation (1,066,558) (138,844)
Income tax (139,821) -
--------------------------------------------- ------ ------------ -----------
Loss for the period attributable to
owners of the parent (1,206,379) (138,844)
--------------------------------------------- ------ ------------ -----------
Other comprehensive income
Items that may be subsequently reclassified
to profit or loss:
Exchange losses arising on translation
of foreign operations 10,085 (28,646)
--------------------------------------------- ------ ------------ -----------
Other comprehensive income for the
period, net of tax 10,085 (28,646)
--------------------------------------------- ------ ------------ -----------
Total Comprehensive income for the
period attributable to the owners of
the parent (1,196,294) (167,490)
--------------------------------------------- ------ ------------ -----------
Earnings per share:
Basic and diluted earnings per share
(U.S. cents) 5 (3.49) (0.63)
--------------------------------------------- ------ ------------ -----------
*The comparative shown for the Group is that of the parent
Company which is re-stated for the change in presentation currency.
Further details are included in note 2.
Condensed Consolidated Statement of Financial Position
As at 30 June 2020
Re-stated*
30 June 30 June 31 December
2020 2019 2019
Notes Unaudited Unaudited Audited
US$ US$ US$
------------------------------- ------ ------------ ----------- ------------
Non-current assets
Intangible assets 4,333,574 - -
------------------------------- ------ ------------ ----------- ------------
Total non-current assets 4,333,574 - -
------------------------------- ------ ------------ ----------- ------------
Current assets
Trade and other receivables 7 779,596 6,919 10,872
Cash and cash equivalents 19,825,867 4,641,655 4,134,842
------------------------------- ------ ------------ ----------- ------------
Total current assets 20,605,463 4,648,574 4,145,714
------------------------------- ------ ------------ ----------- ------------
Total assets 24,939,037 4,648,574 4,145,714
------------------------------- ------ ------------ ----------- ------------
Current liabilities
Trade and other payables 8 2,427,047 28,953 44,107
Corporation tax payable 109,947 - -
Total current liabilities 2,536,994 28,953 44,107
------------------------------- ------ ------------ ----------- ------------
Non-current liabilities
Deferred tax liability 36,412 - -
------------------------------- ------ ------------ ----------- ------------
Total non-current liabilities 36,412 - -
------------------------------- ------ ------------ ----------- ------------
Total liabilities 2,573,406 - -
------------------------------- ------ ------------ ----------- ------------
Equity attributable to owners
of the parent
Share Capital 9 1,311,390 316,475 327,850
Share Premium 9 23,256,663 4,620,542 4,786,618
Foreign exchange reserve (12,199) 3,059 (22,458)
Share based payments reserve 6,735
Retained Earnings (2,196,958) (320,455) (990,403)
------------------------------- ------ ------------ ----------- ------------
Total capital and reserves 22,365,631 4,619,621 4,101,607
------------------------------- ------ ------------ ----------- ------------
Total equity and liabilities 24,939,037 4,648,574 4,145,714
------------------------------- ------ ------------ ----------- ------------
*The comparative at 30 June 2019 shown for the Group is that of
the parent Company which is re-stated for the change in
presentation currency. Further details are included in note 2.
**The comparative at 31 December 2019 shown for the Group has
been re-stated for the change in presentation currency. Further
details are included in note 2.
The financial statements were approved and authorised for issue
by the Board on 30 September 2020.
James Kelly
Director
Condensed Consolidated Statement of Changes in Equity
Foreign Share
exchange based
Share reserve payments Retained
Share capital Premium reserve Earnings Total
US$ US$ US$ US$ US$ US$
-------------- ------------ ---------- ---------- ------------ ------------
1 January 2019 (re-stated*) 318,585 4,651,348 2,019 - (184,841) 4,787,111
Loss for the period - - - - (138,844) (138,844)
Other Comprehensive
loss for the period (2,110) (30,806) 1,040 - 3,230 (28,646)
-------------- ------------ ---------- ---------- ------------ ------------
Total Comprehensive
loss for the period (2,110) (30,806) 1,040 - (135,614) (167,490)
-------------- ------------ ---------- ---------- ------------ ------------
Balance at 30 June
2019 316,475 4,620,542 3,059 - (320,455) 4,619,621
-------------- ------------ ---------- ---------- ------------ ------------
Loss for the period - - - - (665,758) (665,758)
Other Comprehensive
income for the period 11,375 166,076 (25,517) - (4,190) 147,744
-------------- ------------ ---------- ---------- ------------ ------------
Total Comprehensive
loss for the period 11,375 166,076 (25,517) - (669,948) (518,014)
Balance at 31 December
2019 327,850 4,786,618 (22,458) - (990,403) 4,101,607
-------------- ------------ ---------- ---------- ------------ ------------
Loss for the period - - - - (1,206,381) (1,206,381)
Other Comprehensive
income for the period - - 10,259 - (174) 10,085
-------------- ------------ ---------- ---------- ------------ ------------
Total Comprehensive
income for the period - - 10,259 - (1,206,381) (1,196,296)
-------------- ------------ ---------- ---------- ------------ ------------
Transactions with
owners:
Issue of share capital 1,022,882 19,434,759 - - 20,457,641
Share capitalisation (39,342) 39,342 - - -
Share issue expenses - (1,004,056) - - (1,004,056)
Issue of share options - - - 6,735 - 6,735
-------------- ------------ ---------- ---------- ------------ ------------
Total transactions
with owners, recognised
directly in equity 983,540 18,470,045 - 6,735 - 19,460,320
Balance at 30 June
2020 1,311,390 23,256,663 (12,199) 6,735 (2,196,958) 22,365,631
-------------- ------------ ---------- ---------- ------------ ------------
*The comparative shown for the Group is that of the parent
Company which is re-stated for the change in presentation currency.
Further details are included in note 2.
Condensed Consolidated Statement of Cash Flows
for the six-month period ended 30 June 2020
Six months Six months
to to
30 June 30 June
2020 2019
US$ US$
---------------------------------------- ------------ -----------
Cash flows from Operating Activities
Loss before taxation (1,066,558) (138,844)
Adjustments for:
Amortisation 591,427
Finance income (20,985) -
Share based payments 6,735 -
Unrealised foreign exchange movements 34,450 -
---------------------------------------- ------------ -----------
Net cashflow from operating activities
before changes in working capital (454,931) (138,844)
Increase in payables 317,802 28,542
Increase in receivables (768,725) 2,851
------------------------------------------ ------------ -----------
Net cash used in operating activities (905,854) (107,451)
------------------------------------------ ------------ -----------
Investing activities
Purchase of intangible assets (2,887,450) -
Interest received 20,985 -
---------------------------------------- ------------ -----------
Net cash flow from investing
activities (2,866,465) -
---------------------------------------- ------------ -----------
Cash flows from financing activities
Issue of ordinary shares 20,457,641 -
Cost of share issue (1,004,056) -
Net cash generated from financing
activities 19,453,585
------------------------------------------ ------------ -----------
Net increase/(decrease) in cash
and cash equivalents during the
period 15,681,266 (107,451)
Cash at the beginning of period 4,134,842 4,777,690
Effect of exchange rate changes
on re-translation of cash 9,759 (28,584)
------------------------------------------ ------------ -----------
Cash and cash equivalents at
the end of the period 19,825,867 4,641,655
------------------------------------------ ------------ -----------
Notes to the financial statements
1. GENERAL INFORMATION
Trident Royalties Plc is a company incorporated and domiciled in
the United Kingdom. The Company is a public limited company, which
is listed on the AIM market of the London Stock Exchange and the
Frankfurt Stock Exchange. The address of the registered office is 2
Stone Buildings, Lincoln's Inn, London, WC2A 3TH.
The Company was initially formed to undertake an acquisition of
a controlling interest in a company or business with the objective
of operating the acquired business and implementing an operating
strategy to generate value for its shareholders through operational
improvements as well as potentially through additional
complementary acquisitions following the acquisition.
On 25 March 2020, the Group launched its new strategy as a
diversified mining royalty and streaming company together with the
announcement that it had entered into a binding sale and purchase
agreement to acquire a 1.5% free on-board revenue royalty on an
iron ore asset in Australia.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of
these financial statements are set out below. The policies have
been consistently applied throughout the period, unless otherwise
stated.
Basis of preparation
The condensed interim financial statements have been prepared in
accordance with the requirements of the AIM Rules for Companies. As
permitted, the Company has chosen not to adopt IAS 34 "Interim
Financial Statements" in preparing this interim financial
information. The condensed interim financial statements should be
read in conjunction with the annual financial statements for the
year ended 31 December 2019, which have been prepared in accordance
with International Financial Reporting Standards (IFRS) as adopted
by the European Union.
The financial information set out in this interim report does
not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. The Company's statutory financial statements
for the period ended 31 December 2019, prepared under International
Financial Reporting Standards (IFRS), have been filed with the
Registrar of Companies. The auditor's report on those financial
statements was unqualified and did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of
the business. The key risks that could affect the Company's medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Company's 2019
Annual Report and Financial Statements, a copy of which is
available on the Company's website. The key financial risks are
liquidity risk, credit risk, interest rate risk and fair value
estimation.
Critical accounting estimates
The preparation of condensed interim financial statements
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the end of the
reporting period. Significant items subject to such estimates are
set out in the Company's 2019 Annual Report and Financial
Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
Going Concern
The Directors, having made appropriate enquiries, consider that
adequate resources exist for the Company to continue in operational
existence for the foreseeable future and that, therefore, it is
appropriate to adopt the going concern basis in preparing the
interim financial statements for the six months ended 30 June
2020.
Except as described below, the same accounting policies,
presentation and methods of computation have been followed in these
condensed interim financial statements as were applied in the
preparation of the Group's annual financial statements for the year
ended 31 December 2019.
Intangible assets
Royalty arrangements
Royalty arrangements which are identified and classified as
intangible assets are initially measured at cost, including any
transaction costs.
Upon commencement of production at the underlying mining
operation intangible assets are amortised on a straight-line basis
over the life of the mine. Amortisation rates are adjusted on a
prospective basis for all changes to estimates of the life of
mine.
Revenue recognition
The revenue of the Group comprises mainly royalty income. It is
measured at the fair value of the consideration received or
receivable after deducting discounts, value added tax and other
sales tax. The royalty income becomes receivable on extraction and
sale of the relevant minerals, and once able to be reliably
measured, the revenue is recognised.
Foreign currency
Translation into presentation currency
The Company's functional currency changed from British pound
(GBP) to US Dollars (US$) on 1 January 2020. For the comparative
period the Company's functional currency was British pounds. The
Group presents its financial information in US Dollars (US$). The
functional currency of TRR Services LLC and TRR Services Australia
Pty Ltd is US$ and AUD respectively.
The following exchange rates were used in the retranslation of
these financial statements.
At At At
30 June 30 June 31 December
2020 2019 2019
-------------------------------------- --------- --------- -------------
US$/GBP closing rate at financial
reporting date n/a 1.2659 1.3114
-------------------------------------- --------- --------- -------------
US$/GBP average exchange rate during
the reporting period n/a 1.2944 1.2656
-------------------------------------- --------- --------- -------------
US$/AUD closing rate at financial
reporting date 0.6884 n/a 0.6948
-------------------------------------- --------- --------- -------------
US$/AUD average exchange rate during
the reporting period 0.6577 n/a 0.6839
-------------------------------------- --------- --------- -------------
The interim financial information is for the six months ended 30
June 2020. The comparative figures are for the six-months ended 30
June 2019 and 31 December 2019. As the Company incorporated two
subsidiaries in the second half of 2019 the comparative figures for
the six-months ended 30 June 2019 are that of the Company. The
interim financial report has been approved by the Board on 30
September 2020.
The interim financial information is presented in US Dollars
Changes in accounting policy and disclosures
(a) Accounting developments during 2020
The International Accounting Standards Board (IASB) issued
various amendments and revisions to International Financial
Reporting Standards and IFRIC interpretations. The amendments and
revisions were applicable for the period ended 30 June 2020 but did
not results in any material changes to the financial statements of
the Group or Company.
The following standards were adopted by the Group during the
year:
-- IFRS 3 (Amendments) - Business Combinations (effective 1 January 2020)
-- IAS 1 (Amendments) - Presentation of Financial Statements (effective 1 January 2020)
-- IAS 8 - Accounting policies, Changes in Accounting Estimates (effective 1 January 2020)
(b) New standards, amendments and interpretations in issue but
not yet effective or not yet endorsed and not early adopted
Standard Effective date
-------- -------------------------------------------------------- ----------------
IAS 1 Classification of liabilities as current or non-current 1 January 2023*
Various Annual improvements to IFRS Standards 2018-2020 1 January 2022*
(*) Subject to EU endorsement
The Group is evaluating the impact of the new and amended
standards above. The Directors believe that these new and amended
standards are not expected to have a material impact on the Group's
results or shareholders' funds
3. ADMINISTRATIVE EXPENSES
Six months to Six months
30 June 2020 to
US$ 30 June 2019
US$
----------------------------------- ---------------- ---------------
Employee benefit expense 364,201 50,678
Advertising and marketing 54,610 233
Stock Exchange fees 8,959 9,291
Audit and tax 46,995 29,124
Legal fees 44,494 1,553
Other professional fees 160,755 40,898
Royalty acquisition due diligence 342,897 -
Foreign exchange gains (480,648) -
Other operating expenses 46,289 7,067
----------------------------------- ---------------- ---------------
Total administrative expenses 588,552 138,844
----------------------------------- ---------------- ---------------
4. ROYALTY INTANGIBLE ASSETS
As at As at
30 June 2020 30 June 2019
US$ US$
-------------------------------------- --------------- --------------
At the beginning of the period - -
Acquisition of Koolyanobbing Royalty 4,952,656 -
Amortisation (591,427) -
Foreign exchange (27,655)
-------------------------------------- --------------- --------------
At the end of the period 4,333,574 -
-------------------------------------- --------------- --------------
On 3 June 2020 the Group acquired a significant, cash generative
mining royalty to acquire a 1.5% free on-board revenue royalty
covering part of the producing Koolyanobbing Iron Ore Operation in
Western Australia for a total consideration of A$7.0 million. In
addition, A$194,423 of directly attributable costs were capitalised
to bring the total cost of the acquisition to A$7,194,424
(US$4,952,656).
Per the agreement the consideration was payable in two tranches:
A$4 million less the Q1 2020 royalty income of A$539,310 was paid
on 2 June 2020 and A$3.0 million is payable on the twelve-month
anniversary plus one day of the first tranche. The tranche two
payment will be secured against the royalty. (the "Acquisition").
Under the terms of the Acquisition, cashflow attributable to the
royalty from 1 January 2020 will be for the benefit of Trident.
On 21 September 2020 it was agreed to pay the second tranche
earlier in return for a discount of A$350,000. The discounted
second tranche consideration of A$2,650,000 is to be paid by 25
September 2020.
5. LOSS PER SHARE
Basic earnings per share is calculated by dividing the loss
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the period.
Six months
to
Six months to 30 June
30 June 2020 2019
US$ US$
Loss from continuing operations attributable
to equity holders of the company (1,206,379) (138,844)
Weighted average number of ordinary shares
in issue 34,538,462 22,000,000
---------------------------------------------- ---------------- -----------
US cents US cents
Basic and fully diluted loss per share
from continuing operations (3.49) (0.63)
---------------------------------------------- ---------------- -----------
6. DIVIDS
There were no dividends paid or proposed by the Company in
either period.
7. TRADE AND OTHER RECEIVABLES
At 30 June At 30 June At 31 December
2020 2019 2019
US$ US$ US$
---------------------------- ------------- ------------- -----------------
Royalty income receivable 621,775 - -
Prepayments 5,353 6,919 10,823
Indirect taxes recoverable 152,468 - 49
---------------------------- ------------- ------------- -----------------
779,596 6,919 10,872
---------------------------- ------------- ------------- -----------------
Due to the short-term nature of the current receivables, their
carrying amount is considered to be an approximate of their fair
value.
8. TRADE AND OTHER PAYABLES
At 30 June At 30 June At 31 December
2020 2019 2019
US$ US$ US$
------------------------- ------------- ------------- -----------------
Trade payables 313,829 470 4,632
Deferred acquisition
cost 2,065,206
Other taxation & social
security 6,305 - 7,346
Accrued expenses 41,661 28,483 32,129
2,427,047 28,953 44,107
------------------------- ------------- ------------- -----------------
Trade payables and accruals principally comprise amounts
outstanding for trade purchases and ongoing costs. The Company has
financial risk management policies in place to ensure that all
payables are paid within the pre-agreed credit terms. The Directors
consider that the carrying amount of trade payables approximates to
their fair value.
The deferred acquisition cost relates to the second tranche of
A$3,000,000 to be paid for the acquisition of the Koolyanobbing
Royalty. On 21 September 2020 it was agreed with the seller to
discount the second tranche payment to A$2,650,000 in exchange for
paying it by the 25 September 2020, earlier than originally agreed.
See note 4 and note 11 for more details.
9. SHARE CAPITAL AND SHARE PREMIUM
Company Number of Number Share Share
ordinary of deferred capital premium
shares of shares US$ US$
1p of 1p
-------------------------------------- ------------ ------------- ---------- ------------
At 30 June 2019 22,000,000 3,000,000 316,475 4,620,542
Difference arising on re-translation
of opening balances at period
end rate - - 11,375 166,075
At 31 December 2019 22,000,000 3,000,000 327,850 4,786,618
-------------------------------------- ------------ ------------- ---------- --------------
Share issue - placing 80,000,000 - 1,004,056 19,077,064
Share issue - advisor shares 1,500,000 - 18,826 357,695
Share issue expenses (1,004,056)
Cancellation of deferred shares (3,000,000) (39,342) 39,342
At 30 June 2020 103,500,000 - 1,311,390 23,256,663
-------------------------------------- ------------ ------------- ---------- --------------
The deferred shares have restricted rights such that they have
no economic value.
On 2 June 2020
80,000,000 shares were issued for 20 pence per share to
institutional and other investors ("Placing")
1,500,000 shares were issued to the joint bookrunners in payment
for the adviser fee in relation to the Placing
3,000,000 deferred shares were bought back from the proceeds of
the Placing and were subsequently cancelled
10. SHARE BASED PAYMENTS
Share options
During the period the Company issued share options as part of
the remuneration to Adam Davidson, a Director, to enable him to
purchase Ordinary shares in the Company. Shares options were also
granted to Tyron Rees a Senior Manager of the Company. Under IFRS 2
"Share-based Payments", the Company determines the fair value of
the options issued to Directors and employees as remuneration and
recognises the amount as an expense in the statement of income with
a corresponding increase in equity.
At 30 June 2020, the Company had outstanding options to
subscribe for Ordinary shares as follows:
Option exercise price Number Vesting date Expiry date Fair value
of options of individual
granted option
GBP
----------------------- ------------ ------------- ------------ ---------------
GBP0.20 1,041,666 2 June 2021 2 June 2030 0.0620
GBP0.24 1,041,667 2 June 2022 2 June 2030 0.0565
GBP0.28 1,041,667 2 June 2023 2 June 2030 0.0511
Total granted during
the year 3,125,000
----------------------- ------------ ------------- ------------ ---------------
In the period ended 30 June 2019 and the year ended 31 December
2019 no share options were granted.
The following information is relevant in the determination of
the fair value of options granted 27 May 2020:
Option exercise price GBP0.20 GBP0.24 GBP0.28
------------------------------ -------------- -------------- --------------
Fair value of one option,
GBP 0.0620 0.0565 0.0511
Option pricing model Black-Scholes Black-Scholes Black Scholes
used
Weighted average share
price at grant date,
GBP 0.20 0.20 0.20
Weighted average contractual
life, years 10 10 10
Expected volatility,% 56.37% 50.94% 46.52%
Expected dividend growth
rate,% 0% 0% 0%
Risk-free interest rate
(5 year bond),% 0.01% 0.01% 0.01%
------------------------------ -------------- -------------- --------------
Calculation of volatility involves significant judgement by the
Directors due to the absence of the historical trading data for the
Company at the date of the grant. Volatility number above was
estimated based on volatilities of 3 similar listed companies
operating in the same sector.
Share-based remuneration expense related to the share options
granted during the reporting period is included in the
administration expenses line in the consolidated income statement
in the amount of US$6,736 (30/6/2019: Nil).
11. POST PERIOD- EVENTS
Mimbula Royalty
In July 2020 the Group acquired from Moxico Resources plc a
staged Gross Revenue Royalty ("GRR") over production from the
operating Mimbula copper mine and associated stockpiles located in
Zambia's prolific Copperbelt Province. The GRR is being acquired in
exchange for a cash consideration of US$5.0 million. Trident is
entitled to royalty payments on production commencing from 1 July
2020 and extending in perpetuity.
Spring Hill Royalty
In July 2020 the Group entered into a binding agreement with
Thor Mining Plc ("Thor"), to acquire Thor's variable price gold
royalty ("SH Royalty") over production from the Spring Hill Gold
Project ("Spring Hill") located in Australia's Northern Territory
and operated by private group PC Gold Pty Ltd. The SH Royalty is
being acquired in exchange for a staged consideration of cash
and/or equity with a total consideration of A$1.0 million (the "SH
Transaction"), of which A$400,000 is payable upon completion of the
SH Transaction and the balance following the satisfaction of
certain production milestones from Spring Hill. This transaction is
conditional on receiving FIRB approval.
Talga Royalty Package
In August 2020 the Group entered into a binding agreement with
Talga Resources Limited ("Talga"), to acquire a package of existing
gold royalties (the "Royalty Package") covering four projects
located in the prospective Pilbara and Yilgarn regions of Western
Australia, Australia. The Royalty Package is being acquired for a
total consideration of A$800,000 (approximately US$575,000) (the
"Talga Transaction"), comprised of A$250,000 in cash and A$550,000
in new ordinary shares in Trident. Completion of the Talga
Transaction is conditional on FIRB approval by 31 March 2021, or
such later date as the parties may agree ("Completion"). If
Completion does not occur by this date, then the Talga Transaction
will not proceed.
Koolyanobbing Royalty
On 21 September 2020 the Group entered into a binding agreement
with Fe Limited (ASX:FEL) for the early payment of the A$3,000,000
second tranche of the consideration for the Koolyanobbing royalty
acquisition, in exchange for a A$350,000 discount. The discounted
second tranche consideration of A$2,650,000 was paid on 25
September 2020.
Lake Rebecca Royalty
On 24 September 2020 the Group entered into binding agreement
with a privately held Australian company, to acquire an existing
gold royalty (the "LR Royalty") over tenement E28/1610, which hosts
the entirety of the million ounce Lake Rebecca Gold Project,
currently owned and operated by ASX-listed Apollo Consolidated
Limited in Western Australia. The LR Royalty is being acquired for
a total consideration of A$8,000,000 (approximately US$5,633,520),
comprised of A$7,000,000 in cash and A$1,000,000 in new ordinary
shares in Trident. This transaction is conditional on receiving
FIRB approval.
COVID-19
The outbreak of the coronavirus pandemic during the reporting
period is considered to be a non-adjusting event. As outlined in
note 2, the Group and Company are continuing to report on a going
concern basis.The unknown length of the outbreak is a source of
uncertainty and the Board will continue to monitor events and to
provide updates as the situation develops.
About Trident
Trident is a growth-focused diversified mining royalty and
streaming company, aiming to provide investors with exposure to a
mix of base and precious metals, bulk materials (excluding thermal
coal) and battery metals.
Key highlights of Trident's strategy include:
-- Constructing a royalty and streaming portfolio to broadly
mirror the commodity exposure of the global mining sector
(excluding thermal coal) 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.
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END
IR SEFFUUESSEEU
(END) Dow Jones Newswires
September 30, 2020 02:00 ET (06:00 GMT)
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