GREY:HRIVF - Post by User
Comment by
espressostrettoon Nov 08, 2009 12:33pm
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Post# 16465188
RE: RE: Tidbits from Royal Gold financials
RE: RE: Tidbits from Royal Gold financialsLooks like above $430/oz, the royalty rate is the avg monthly rate divided by 100.
So at an average rate of $1,000 they get 10%. It moves onto a lower deal rate once they pay them $35M or mine 804,402 oz--the latter option out of the picture given the price of gold. Assuming a fixed average gold price of $1,000, it will take 202,000 oz to reach the $35M. At 20-25k a quarter, HRG moves to the 2.75% fixed royalty around Q3 2010 or Q1 2011.
Just my quick analysis, I am not well read on this royalty or royalties in general.