| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 0.30 | -99 |
| Graham Formula | 0.20 | -100 |
Trident Royalties Plc (LSE: TRR.L) is a London-based diversified mining royalty and streaming company focused on acquiring and managing royalties across a range of commodities, including precious and base metals. Operating in key mining jurisdictions such as the UK, Australia, the US, Zambia, and Peru, Trident provides investors with exposure to mining cash flows without the operational risks associated with direct mining operations. The company, founded in 2018 and rebranded from Trident Resources Plc in 2020, leverages its expertise in royalty financing to build a high-margin, low-cost portfolio. As part of the Basic Materials sector, Trident plays a crucial role in the mining value chain by offering alternative financing solutions to miners while generating stable, long-term revenue streams. With a market cap of approximately £142 million, Trident Royalties is positioned as a nimble player in the growing royalty and streaming industry, appealing to investors seeking inflation-resistant assets with scalable growth potential.
Trident Royalties presents an attractive investment opportunity for those seeking exposure to mining cash flows with lower operational risk. The company’s diversified royalty portfolio across multiple commodities and jurisdictions mitigates single-asset risk, while its scalable business model benefits from rising commodity prices. With a beta of 0.404, Trident exhibits lower volatility compared to traditional mining equities, making it a potential hedge in volatile markets. However, the lack of dividends may deter income-focused investors, and reliance on third-party mining operations introduces counterparty risk. The negative capital expenditures (-£19.5 million) suggest aggressive portfolio expansion, which could strain liquidity if not managed prudently. Investors should weigh the growth potential against execution risks and commodity price sensitivity.
Trident Royalties operates in a niche segment dominated by larger players like Franco-Nevada and Wheaton Precious Metals. Its competitive advantage lies in its agility to secure smaller, high-growth royalty deals that may be overlooked by giants. The company’s diversified approach across commodities (gold, lithium, copper) reduces dependency on any single metal, unlike some peers focused solely on precious metals. However, Trident’s relatively small scale limits its ability to compete for large-scale royalty deals, and its portfolio lacks the tier-one assets held by industry leaders. The company’s UK base provides access to European capital markets but may limit visibility among North American investors, where most royalty firms are headquartered. Trident’s low-cost structure and lean operations allow it to maintain healthy margins, but its growth depends heavily on securing new royalties in competitive markets. The lack of streaming agreements—a higher-margin segment—puts Trident at a disadvantage compared to peers with more streaming-heavy portfolios.