Trident Royalties aiming to continue 'blistering pace' of acquisitions

Episode 102 | 13 December 2023 | Length: 00:17:54

Adam Davidson

Adam Davidson

The fifteen acquisitions that Trident Royalties Plc (LON:TRR) has made in just over three years has been described as a “blistering pace” by its chief executive Adam Davidson. 

Positioned in the resource sector, Trident acquires royalties in mining companies, and in doing so is entitled to a percentage of generated revenue.

“The mining royalty sector is not tiny,’ says Davidson. “It’s $80 billion in aggregate market cap of mining companies around the world.”

While other royalty companies focus mainly on gold, Davidson realised there was a gap in the market for “a multibillion-dollar market cap diversified mining royalty company that’s got iron ore and copper and zinc as well as gold.”

Trident is building a pure diversified royalty business. This year it’s made five acquisitions across copper, gold, silver, and mineral sands and Davidson is wanting to add nickel and zinc to the portfolio. 

“We’re trying to come up with an index fund style exposure. You can get your exposure to real assets to mining commodities through your holding and Trident because we get a royalty exposure across the whole depth and breadth of the sector.”

With a robust register of institutional shareholders, the board is in alignment with its investors with directors buying shares when they can.  The ultimate ambition according to Davidson is to build more scale within the portfolio and announce an inaugural dividend “when we can put in place a policy that’s progressive.”

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