Aim-listed mining royalty and streaming company Trident Royalties reports that it has generated its inaugural cash flow under the new gold offtake streams it acquired on January 11.
Trident acquired 1 858 oz of gold, which it subsequently sold for a margin of $30.68/oz at a realised gold price of $1 820/oz, resulting in total cash flow of $57 001 and a net smelter return equivalent margin of 1.69% for the batch.
This was well in excess of Trident's long-term base case assumption on acquisition of the portfolio of streams.
CEO Adam Davidson says the acquisition of the streams portfolio provides Trident with immediate revenue, underpinned by a portfolio of high-quality producing gold projects which significantly enhance the scale and diversification of Trident’s revenue base.
“It is pleasing to note that deliveries to Trident under the contracts have now commenced, with this delivery being the first of multiple deliveries and regular sales expected to occur on a weekly basis going forward,” he says.
Davidson adds that Trident is well positioned for future growth with nine cash flowing assets complementing its portfolio of advanced and development stage royalties, most notably the Thacker Pass lithium royalty.
“The combination of increased cash flow and our newly established debt facility, provide Trident with ample access to capital to pursue additional accretive transactions without the near-term requirement to access equity markets,” he says.