Tribeca’s Buyback and Dividend Signal Confidence Amid Persistent NTA Discount

Strong Turnaround in Financial Performance

Tribeca Global Natural Resources Limited (ASX – TGF) has reported a robust turnaround for the year ended 30 June 2025, posting a net profit after tax of $5.02 million compared to a loss of $9.59 million in the prior year. This marks a significant recovery driven primarily by gains in the precious metals sector, alongside positive contributions from uranium and oil and gas investments.

The company’s revenue from ordinary activities surged to over $20 million, reflecting a volatile but opportunity-rich environment where investors sought refuge in commodities like gold amid geopolitical uncertainties.

Capital Management Initiatives to Close NTA Discount

Despite the improved portfolio performance, Tribeca continues to trade at a discount to its net tangible assets (NTA), which rose modestly to $2.09 per share from $2.00 the previous year. To address this valuation gap, the Board has declared a fully franked dividend of $0.05 per share and announced an on-market share buyback program of up to 10% of outstanding shares, commencing 10 September 2025 and expected to run for up to 12 months.

The buyback is designed to be accretive to NTA, representing a strategic use of capital aimed at enhancing shareholder value amid ongoing market volatility.

Portfolio Highlights and Investment Strategy

Tribeca’s investment manager highlighted two key equity investments that materially contributed to performance – Spartan Resources and Discovery Silver. Spartan Resources, an ASX-listed precious metals company, was acquired at an early stage and subsequently bought out by Ramelius Resources at a premium, delivering over 6% contribution to returns. Discovery Silver, a TSX-listed company, also added over 5% to performance, benefiting from the investment manager’s longstanding relationship with its management team.

The company’s strategy remains focused on an active long/short approach, leveraging deep sector expertise to capitalize on market volatility and structural demand growth in commodities critical to energy transition and electrification.

Positive Sector Outlook Amid Global Shifts

Looking ahead, Tribeca is optimistic about the resources sector. The Chairperson noted that China’s recent expansionary policies and rising commodity prices, especially copper nearing all-time highs, validate the company’s bullish stance. Supply constraints and geopolitical tensions are expected to sustain commodity price strength, with governments increasingly prioritizing access to critical minerals.

While market volatility is anticipated to persist, Tribeca plans to use dips to build positions in undervalued, high-quality miners, positioning the portfolio to benefit from long-term structural trends.

Board Changes and Governance

In governance news, Director Bruce Loveday, a foundational board member since inception and former Chairperson, has announced his retirement ahead of the 2025 Annual General Meeting. His departure marks the end of a significant chapter for Tribeca, with the Board expressing gratitude for his leadership during volatile market periods.

The company’s financial statements were audited by Ernst & Young with no significant issues noted, underscoring robust governance and compliance standards.