Callinan Royalties Corporation CCNMF

Fundamental Analysis

[AARMY]

Let's look at the numbers. The obvious numbers. Let's also assume CAA has no exploration properties. Let's just pretend they have the NPI and the War Baby. Somebody please correct me if Im wrong. 42,000,000 shares outstanding HBM is currently profiting over $100 Million per quarter on the 777. (some beleive as high or higher then $120 Million per quarter) This number will be verified next week. Assume $100 Mill. 6.66% = $6.66 Million per quarter to Callinan. $26,640,000 per year to Callinan Conservatively speaking what do producing mining companies trade at? I think alot more then 1.5 times earnings!! I would say, conservatively most companies trade at least 5-8 times earnings. ($3-$5 per share) Let's also say management decides to pay half in a dividend. $13 Million in a dividend would pay over 0.30 cents per share per year. What do mining companies trade at in relation to their dividend?? Extremely conservative, I would say 10-15 times dividend. Again this put's us at $3-$4. It's really hard to say what the value of the extension of the 777 (WarBaby) would be worth? Guesses? $100 Million ++??? Im not sure. I would think alot of further drilling is required. I am not as bullish as most on metal prices. However, I do not beleive their is much downside from here. Supply and demand does suggest extremely strong support not much lower from here. If prices do fall 25% you will see that we should still be over $2.50. I realize the market is likely just waiting for the "facts" of a NR before it will react. But what could possibly come in the way of the above unfolding? We know HBM is out of tax losses. Yeah maybe they can weasel out of back pay, but going forward we are due to receive our money either this quarter or next. I would love to see somebody argue the above. Please, test my basic calculations. Somebody tell me Im wrong!! Even with lower metal prices Callinan is worth no less then $2.50 per share. Am I wrong???????