Royalty trusts are a bridge between the banks and finacially stressed companies.
Royalty trusts can always get financing because their principal asset is a gross overriding royalty on the production of inground reserves. They get paid before anyone else, even the banks.
Often for this reason banks don;t want them there. But if the banks leave the field is open.
Royalty trusts are constantly looking for accretive assets which means assets that are returning more than what the trust itself is returning.That means 4 to 5 %
whereby the importance of the before tax NPV value of reserves
For Painted Pony the NPV 10% value is 3.2 Billion dollars , the NPV 5% value is 5.7 Billion dollars
Bank debt is 148 Million dollars
Painted pony woul need to give up royalties on between 2.5 % and 5% of their reserves in order to replace all their bank debt.
This is a much better alternative than land sales
I hope Pat Ward is listening if he wants a chance to keep his job and gain back his dignity