In this episode we chat to Adam Davidson, CEO of Trident Resources, a diversified mining royalty and streaming company, providing investors with exposure to a mix of base and precious metals, bulk materials (excluding thermal coal) and battery metals. 

Adam came through the US Marine Corps into the financial sector and worked for a number of equity funds before joining Trident. We talk about royalties and streaming within the mining finance world, and why investors would prefer exposure to this type of arrangement compared to equity.

KEY TAKEAWAYS

• Royalties are an upfront cash consideration to mining companies in exchange for a percentage of their revenue from an agreed asset.
• Royalty can be a non-dilutive source of financing for those struggling to raise equity. Also, it only begins paying out when the project begins performing.
• There is much opportunity to be had in consolidating royalties in the non-precious space, as they presently don’t have a natural home.
• Because royalties are essentially built from cash-flowing assets, you can easily approach debt providers and obtain leverage against that portfolio.

BEST MOMENTS

‘Royalties tend to have their day as they ebb and flow’

‘You get an extra kicker in terms of returns’

’This is a good time to deploy capital’

‘It’s going to be a buyer’s market for the foreseeable future'  

VALUABLE RESOURCES

Adam Davidson LinkedIn - https://www.linkedin.com/in/afdavidson/

Trident Resources - https://www.tridentresources.co.uk

ABOUT THE HOST

Rob Tyson is an established recruiter in the mining and quarrying sector and decided to produce the “Dig Deep” The Mining Podcast to provide valuable and informative content around the mining industry. He has a passion and desire to promote the industry and the podcast aims to offer the mining community an insight to peoples experiences and careers covering any mining discipline, giving the listeners helpful advice and guidance on industry topics.

Rob is the Founder and Director of Mining International Ltd, a leading global recruitment and headhunting consultancy based in the UK specialising in all areas of mining across the globe from first world to third world countries from Africa, Europe, Middle East, Asia and Australia. We source, headhunt and discover new and top talent talent through a targeted approach and search methodology and have a proven track record in sourcing and positioning exceptional candidates into our clients organisation in any mining discipline or level. Mining International provides a transparent, informative and trusted consultancy service to our candidates and clients to help them develop their careers and business goals and objectives in this ever-changing marketplace.

 

CONTACT METHOD

[email protected]

https://www.linkedin.com/in/rob-tyson-3a26a68/

www.mining-international.org

https://twitter.com/MiningConsult

https://www.facebook.com/MiningInternational.org

https://www.youtube.com/channel/UC69dGPS29lmakv-D7LWJg_Q?guided_help_flow=3