New Risk • Aug 30
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 83% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (83% accrual ratio). Shareholders have been substantially diluted in the past year (31% increase in shares outstanding). Revenue is less than US$1m. Announcement • Aug 25
Trident Resources Corp Commences Airborne Magnetic And Radiometric Geophysical Survey Over Reindeer Gold Property Trident Resources Corp. announced the commencement of an airborne magnetic and radiometric geophysical survey over the underexplored Reindeer Gold Project in the La Ronge Gold Belt (LRGB) of Northern Saskatchewan. The fixed-wing low level tight drape high resolution radiometric and aeromagnetic survey began on August 17th and will continue for the next few weeks. The Reindeer survey represents an important component of Trident’s broader district-scale exploration strategy in the La Ronge Gold Belt. Across its strategic 98,700-hectare land position within the LRGB, the Company is using geophysical surveys, surface sampling, prospecting and focused drilling to identify and systematically advance high-priority gold targets. Trident’s properties cover prospective geological structures associated with past-producing gold mines, established deposits and numerous documented mineral occurrences, providing multiple opportunities for new discoveries and the expansion of known mineralized systems. The Reindeer Property comprises 29,300 hectares near the intersection of highways 102 and 905, the two main arteries that connect the important industry of northeastern Saskatchewan to the populated centres to the south. The Property straddles the highly prospective boundary between the La Ronge and Kisseynew lithostructural domains, a compelling exploration target that defines the focus of Trident’s exploration strategy within the LRGB. There are multiple documented precious and base metal occurrences within the boundaries of the early-stage exploration Property. The 6,600-line km airborne survey will be completed by Special Projects Inc., a company that specializes in low altitude surveys that produce high-quality data for use in the mineral exploration industry. Trident intends to utilize high-resolution aeromagnetic data to identify geologic structures that have the potential to host orogenic gold deposits. These structures exert a first order control on all known gold deposits and occurrences throughout the LRGB. The radiometric data will assist in delineating different lithologies and when combined with the aeromagnetic data will help define targets for subsequent ground-truthing and future drilling. While the airborne survey advances early-stage exploration at Reindeer, drilling and field exploration are also underway at Trident’s Contact Lake and Preview target areas at the flagship and more advanced Contact Lake Gold Project. The 20,000-metre summer drill program at Contact Lake is almost halfway done and continues to return encouraging visual indications of mineralization with final geochemical assays pending. Concurrently, Trident is conducting a comprehensive soil sampling and prospecting program across Contact Lake and the adjacent Preview project area, located approximately 2.5 kilometres to the southeast along a parallel shear structure. The program is expected to comprise approximately 9,000 soil samples and is designed to identify and refine targets for future drilling. Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CA$3.63, the stock trades at a trailing P/E ratio of 18.2x. Average trailing P/E is 15x in the Metals and Mining industry in Canada. Total returns to shareholders of 707% over the past three years. 
