RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Rights being offer for Great Bear RoyaltiesIvorygull wrote: goldman88 wrote: Whats the purpose of buying more royalty shares? presently we have approx. 14 million and we get 2% royalty . If we have 28 million we still have the same 2 % royaly so you get half the payout as you would get for 14 million .
I'll probably be wrong saying this but I believe this would be why....
Net Smelter Return (NSR) is the net revenue that the owner of a mining property receives from the sale of the mine's metal/non metal products less transportation and refining costs. As a royalty it refers to the fraction of net smelter return that a mine operator is obligated to pay the owner of the royalty agreement. I think you are looking at the market cap of Great Bear Royalties, which is not the same thing.
Feel free to correct me all of you who know a hell of a lot more than I do.
So if there was say 100,000 ozs produced per year and the price of gold was $1700 US but we got dinged say $700 per oz for the transportation and refining costs, that would be 100,000 x $1000 US.
$100,000,000 US x 2% =$2,000,000 US or $
2,649,616.75 Can $2,649,616.75 / 13 m shares (round number) = 20 cents per share.
If you owned 1000 shares before the rights and the NSR starts you'd get $200
If you used all your rights and doubled what you have, you'd get $400
If you had even more shares....well I think you'll get the picture.