great posts Thanks for great background info. Typically, when a royalty deal is done, there is a specific forecast about the timing of when mining begins and when cash flow starts to the royalty holder. Also, specific tonnage is disclosed.
So, for illustration, you could predict that cash flow of $10m would begin in 2016 and that a plant expansion would double this in 2019. Cash flow varies with commodity prices but we could use today's price for quick reference.
In the case of Entree Gold we seem to be dealing with a plain black box. We know not what is in it.
When will it begin .. not so clear but maybe 2016
How much flow in early years ..... nobody has a clue. Rio Tinto is the operator and Mongolia is the real boss
How much cash flow in 2018 and later ..... nobody has a clue
Even so, it could turn out ok for SND. There is no basis to be positive or negative.
Fortunately SND did not bet the farm on this deal. They should have bet nothing but at least it is only ~5% of assets
Thanks everybody
Mat