I would love to buy TRR IF they would be clear on their equity issuance or dilution. Waiting for value is no problem but if as soon as it emerges and the price starts to move you get diluted by new shares it slashes your prospective returns. It’s clear they want to grow the business and issue shares and I just feel they would be more successful at that if they provided some clarity and ground rules
Hi Colin, my understanding of TRR's overarching strategic objective is to become another Royalty major - so issuing shares would be part of that to fund expansion. Issuing shares can be dilutive but the cash and/or corresponding assets get added to the Net Asset Value so it is not always dilutive. In fact, the theory is that further issues support accretive purchases which mean a bigger pie for all, and in theory are never dilutive. Also if TRR grows and in time is valued the same way as a major, then it will have multi bagged for its investors.
The question for TRR is whether you buy in to that narrative.
I couldn't decide between Ecora and Trident so I took a moderate position in both. Am down 25% or so to date on Ecora (bought a while ago) and around break even on TRR, but have had some decent dividends from Ecora. I like the high copper exposure Ecora has, so happy to hold for the long term and see what happens.
Also have a small holding of Duke as I liked the concept and have been reinvesting the generous dividends, probably around break even on that too (excluding the dividends). Even though the share price has gone nowhere, a 9% return from the yield is still pretty decent considering neither the UK market nor the economy have been firing on all cylinders over the past couple of years...
Mark, I think you make a really pertinent point at the end of your post - to stand still and yield 9% in such an unloved/static environment is actually quite impressive. I'd happily sit patiently on such awaiting the rebate/realisation/upside.
Thanks for the article on the royalty/streaming co's. Perhaps its also worth considering Wheaton Precious Metals (WPM), which has a London listing. It is more precious metals focused than Franco Nevada, which I hadn't realised also contains some O&G exposure. Wheaton is focused on gold, silver, palladium and a smidgen of cobalt, it pays a modest dividend of c. 1%, so is pure play option on those precious metals working with mines in "safe" jurisdictions. I have held both WPM since it listed in London and DUKE for over 4 years.
Thanks for that ... As a long term holder of #Duke ... I really appreciate your view as a non holder ... There is value here and I'm happy with a circa 9% income whilst I wait for it to be realised ... Also have a smidgeon of #Kav which despite much dissolution looks like it might of at last found something
Hi OB, hope you are well. I have almost zero direct exposure to gold/nickel/copper etc (although I have recently took, and will soon gain a greater position courtesy of BSE in uranium) , so that's why your focus, and considerations here are so valuable to me, and having no exposure to any of the stocks you mention, but having a long term view, the long term potential/nature of 'royalties' appeals to me, so I thank you for your highlighting/considerations here. It probably won't surprise you that my preference is DUKE, as I do like an income whilst patiently waiting for true value to materialise.
Hi Damien, I'm good thanks - hope you are enjoying the long bank holiday weekend.
I'll be writing about BSE soon - I am very excited about Toliara - particularly their monazite - as well as the uranium holdings via the Energy Fuels take over. I've had a smallish position in BSE for about 4 years and their capital return policy has been excellent (it's returned over 100% of the purchase price). Losing the UK listing is a slight hassle and UUUU (Energy Fuels) has lost money and pays no dividend. Could all that change? My article will seek to explore this.
I bought into UUUU directly on the day of the announcement, with zero understanding of uranium mkts/stocks (fast learning!) purely because I took the stance that if UUUU as a (uranium) business marked time, it would be a facilitator to even greater profits on Tolliaria. As good as BSE is/has been, I feel the best is yet to come. If their discipline and delivery permeates to UUUU, well that could deliver fireworks.
I would love to buy TRR IF they would be clear on their equity issuance or dilution. Waiting for value is no problem but if as soon as it emerges and the price starts to move you get diluted by new shares it slashes your prospective returns. It’s clear they want to grow the business and issue shares and I just feel they would be more successful at that if they provided some clarity and ground rules
Hi Colin, my understanding of TRR's overarching strategic objective is to become another Royalty major - so issuing shares would be part of that to fund expansion. Issuing shares can be dilutive but the cash and/or corresponding assets get added to the Net Asset Value so it is not always dilutive. In fact, the theory is that further issues support accretive purchases which mean a bigger pie for all, and in theory are never dilutive. Also if TRR grows and in time is valued the same way as a major, then it will have multi bagged for its investors.
The question for TRR is whether you buy in to that narrative.
I couldn't decide between Ecora and Trident so I took a moderate position in both. Am down 25% or so to date on Ecora (bought a while ago) and around break even on TRR, but have had some decent dividends from Ecora. I like the high copper exposure Ecora has, so happy to hold for the long term and see what happens.
Also have a small holding of Duke as I liked the concept and have been reinvesting the generous dividends, probably around break even on that too (excluding the dividends). Even though the share price has gone nowhere, a 9% return from the yield is still pretty decent considering neither the UK market nor the economy have been firing on all cylinders over the past couple of years...
Mark, I think you make a really pertinent point at the end of your post - to stand still and yield 9% in such an unloved/static environment is actually quite impressive. I'd happily sit patiently on such awaiting the rebate/realisation/upside.
Thanks for the article on the royalty/streaming co's. Perhaps its also worth considering Wheaton Precious Metals (WPM), which has a London listing. It is more precious metals focused than Franco Nevada, which I hadn't realised also contains some O&G exposure. Wheaton is focused on gold, silver, palladium and a smidgen of cobalt, it pays a modest dividend of c. 1%, so is pure play option on those precious metals working with mines in "safe" jurisdictions. I have held both WPM since it listed in London and DUKE for over 4 years.
It's a valid point and I'll add WPM in to the article.
Thanks for that ... As a long term holder of #Duke ... I really appreciate your view as a non holder ... There is value here and I'm happy with a circa 9% income whilst I wait for it to be realised ... Also have a smidgeon of #Kav which despite much dissolution looks like it might of at last found something
Ecora has cut it's dividends.
I did read the 25%-35% of FCF but hadn't spotted the cut so thank you Deep - have amended the article.
Don't think this offer fairly values the comlany as it now is, or fairly compensates shareholders for the risk and journey
https://www.proactiveinvestors.co.uk/companies/news/1049739/trident-royalties-agrees-144m-takeover-by-aussie-peer-1049739.html?viewSource=TwitterUK
Hi OB, hope you are well. I have almost zero direct exposure to gold/nickel/copper etc (although I have recently took, and will soon gain a greater position courtesy of BSE in uranium) , so that's why your focus, and considerations here are so valuable to me, and having no exposure to any of the stocks you mention, but having a long term view, the long term potential/nature of 'royalties' appeals to me, so I thank you for your highlighting/considerations here. It probably won't surprise you that my preference is DUKE, as I do like an income whilst patiently waiting for true value to materialise.
Hi Damien, I'm good thanks - hope you are enjoying the long bank holiday weekend.
I'll be writing about BSE soon - I am very excited about Toliara - particularly their monazite - as well as the uranium holdings via the Energy Fuels take over. I've had a smallish position in BSE for about 4 years and their capital return policy has been excellent (it's returned over 100% of the purchase price). Losing the UK listing is a slight hassle and UUUU (Energy Fuels) has lost money and pays no dividend. Could all that change? My article will seek to explore this.
I bought into UUUU directly on the day of the announcement, with zero understanding of uranium mkts/stocks (fast learning!) purely because I took the stance that if UUUU as a (uranium) business marked time, it would be a facilitator to even greater profits on Tolliaria. As good as BSE is/has been, I feel the best is yet to come. If their discipline and delivery permeates to UUUU, well that could deliver fireworks.