Vulcan Minerals Inc V.VUL

Royalty

[MoneyK]

I read that the 3% royalty for Great Atlantic is based on the net production?

Is this based on revenue or profit?  Not quite clear if it's a NSR or something else.

Thank you.

MoneyK

[Copperking102]

Hey: NSR's are almost always based on net production of the commodity. Here it sez production so I would assume it's what's being shipped. During 2021, Atlas Salt raised equity to complete a feasibility study on the Great Atlantic salt deposit project. A request for proposals to carry out that feasibility study was released on April 23, 2021 to qualified engineering/geological firms

[MoneyK]

If its a NSR, thats usually based on something close to revenues. That only could be worth more than current market cap one day! IMO. MoneyK

[MoneyK]

Royal Gold paid $165M for a 1% NSR at Red Chris. Not sure how this compares with the 3% great atlantic NSR, but eventually, 8M tons would generate a lot of revenues! IMO. MoneyK

[wreckhouse]

So i look up SLR Consulting and while at it I came across SLR Investment that pays .1367cents a month or 31% divy . BCRNW

[Copperking102]

Red Moon /Atlas was a subsidiary company of Vulcan when its structure was formed as a public company. The 3% royalty on SALT's production was and is payable to VUL. Useualy when a NSR is negotiated with a company who has an option on a property, a buyout clause is established. Here, because at the time it, Red Moon, was a subsidiary, that, to my knowledge was left open-ended. So assuming Salt

[wreckhouse]

Vulcan having their fingers in a few others , one day they could pay a divy without doing any related work . Will today be the day we get a double digit increase ? I think the word is getting out there on these two undervalued company's  VULCAN----SALT . BCRNW

[MoneyK]

Fully agree! If they would pay $160M US for the NSR, that would give them a 10% dividend year over year. @5% thats double the price tag with still some upside to 8--10M tons. NSR's are usually not based on 100% of revenues, but it should be pretty close. Thats why im trying to understand if its a NSR or based on net profit. Not the same thing. IMO MoneyK