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This deep value stock offers a 70% upside

It is trading on an unwarranted discount, even though it continues to pull off smart deals
September 4, 2023
  • $10mn acquisition of lithium smelter royalty in Utah
  • $6.25mn purchase of gold royalty in Mali
  • Uncertainty over Sonora lithium project

Commodity royalty group Trident Royalties (TRR:41p) has been ramping up its deal flow in recent months. The latest acquisition looks like one of the group’s smartest to date, the purchase of a 2.5 per cent net smelter royalty (NSR) over projects owned by Anson Resources (AU:ASN) in the Paradox Basin, Utah. The transaction includes Anson’s flagship lithium project.

Having released a definitive feasibility study in September 2022, outlining a Phase One operation producing an initial 13,074 tonnes of lithium carbonate for the first 10 years of a 23-year operation, Anson is targeting a final investment decision (FID) at the end of this year. Capital expenditure of $495mn is required to get the project up and running, but it will be eligible for financial support through the Inflation Reduction Act in the US.

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