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GOLDBROOK VENTURES INC V.GBK



TSXV:GBK - Post by User

Comment by sulphides63on Dec 12, 2011 7:42pm
277 Views
Post# 19315191

RE: Questions for AGM

RE: Questions for AGM My scared little child. Everything will be ok. Let me explain, the terms of the deal state that 80% of the profit gets put towards paying back the JJ contribution. So lets use a base case and assume they can generate a profit of $200 million per year. So $160 million gets paid back to the JJ contribution. That means $40 million gets split 75/25. 25% of $40 million is $10 million/year. Discount the cash flows over the life of the mine and GBK will have a value significantly higher than today's price. Keep in mind, their other JV and land and blue sky. And the fact that Xstrata replaced reserves every year since mining. And what you have is a nice old little royalty company that just mints money. Get it? Why would JJ want to pay GBK money for the next 50 years? And when the JJ contribution gets paid off then 25% of $200 million is $50 million per year. It's ok to be afraid, follow the brave and the wise.
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