Proactive Investors - Analysts at Stifel have reacted well to Trident (LON:TRR)’s latest earnings, which showed a 45% year-on-year rise in royalty receipts in the first six months of the year.
It was “an eventful period highlighted by multiple transactions”, said analysts, specifically the sale of Australia-based pre-production gold royalties and royalty acquisitions with associated milestone payments off Coeur Mining (NYSE:CDE).
The royalties over the La Preciosa project provide Trident with exposure to one of the largest undeveloped primary silver resources in Mexico, noted analysts.
Stifel observed that post-interim momentum has persisted with subsequent acquisitions, including the Dandoko gold project in western Mali and the Paradox lithium project in Utah, which offer “potential for near-term revenue”.
Challenging equity and debt markets increased the attractiveness of royalty financing, noted analysts, giving Trident a buy rating with an 85p price target against a publication price of 46p.
Liberum analysts echoed the above sentiment, stating that Trident is in an “excellent position to sign more deals, with rising cost of finance making royalty financing increasingly attractive”.
Liberum also has a buy rating on Trident stock, with an 81p price target.