Trident Royalties PLC on Monday turned to an annual loss in 2021 as it reported smaller revaluation gains and higher costs.

Trident posted a pretax loss of $4.4 million, swinging from a profit of $1.7 million in 2020. Royalty revenue dropped to $83,000 in 2021 from $1.7 million the year before, the London-based mining royalty and streaming company reported.

It posted a £1.5 million gain from the revaluation of royalty financial assets, down from £2.5 million in 2020.

It reported ‘other finance costs’ of £1.7 million, surging from £20,000.

The company added four investments in 2021, including a $69.8 million acquisition of a portfolio of gold offtake contracts from funds managed by Orion Resource Partners which it completed in January 2022. Orion is an alternative investment management firm that says it has $8.6 billion under management.

‘We entered 2022 with a portfolio capable of immediate and meaningful cash generation as well as substantial future optionality,’ Trident Chair Paul Smith said.

However, 2022 has seen weaker markets than 2021, which was a ‘very strong year for financial markets,’ Smith explained. Regarding 2022, ‘Covid in China and the Ukrainian war have had a demonstrably negative impact on real demand globally,’ he added.

‘We can expect continued volatility and pressure on the underlying economy over the course of the year,’ Chair Smith said.

Despite not issuing dividends for 2021, the firm intends to write a dividend policy during 2022, Trident explained.

Trident Royalties shares were 3.9% lower at 50.00 pence each in London on Monday morning.

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