RE: Smart or not Smart The money flowing immediately makes a difference to the NPV. SLW can borrow the $ and use the cash flow to fund the loan. I do not know much about Mt Milligan. Teatime's figures show that Royal Gold has higher margins on the stream but Randy Smallwood stressed on BNN that the deal has a lot of upside potential. And there is something to be said for safety. If you own your own home outright it is easy to get a credit card at 4%. If you have a mittfull of college loans and no long job history you might be paying 19%. Without getting into a conversation on bank gouging the better credit risk gets the better rate.
That being said the SLW margins on this deal seem a lot smaller than what we are used to seeing but they are still making money on the deal. Randy did not say they were going to do an equity raise for this deal when asked on BNN but I wonder if that is his intention.
Bob