RE: Being objective......If my rough estimate of selling a net Smelter Royalty were anywhere near correct, we'd get some nice up front cash to start the work.
This is my original post
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=28922030&l=0&r=0&s=NI&t=LIST
In it, I forgot to add the last payment of $15.16 million which would not earn interest at 4%., so the 160.4 million becomes about $175.6 million for a Royalty Company with a 5% Net Smelter royalty for a 10 year term.
If they paid $50 million up front on the potential $175.6 million, they'd get 13.4% annually on their up-front money over 10 years.
If they paid $60 million up front on the potential $175.6 million ,they'd get 11.3% annually on their up-front moneyover 10 years.
If they paid $70 million up front on the potential $175.6 million ,they'd get 9.6% annually on their
up-front money over 10 years.
The above are estimations and would differ materially after negotiations.