GREY:ADEXF - Post by User
Comment by
goldvanities1on Mar 09, 2013 7:08am
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Post# 21103827
RE: RE: RE: RE: RE: RE: News Review
RE: RE: RE: RE: RE: RE: News Review Altius's current 25% equity stake in Alderon, and 3% royalty on production, was developed for exploration and development costs of roughly $2 million. Whatever happens to ADV Altius has only risked $2 million of their treasury. If ADV blows up and doesn't become a mine Altius is out $2 million. If ADV becomes a mine Altius has a royalty worth $500 million to $1 billion, and an equity stake which will be cashed out before production. Just look at the Altius stock price. Low risk, high reward. The market is rewarding their business model.
If Roche Bay JV deal doesn't move forward then AXI has to go out of business. The weight of the $10 million XinXing debenture (which XinXing could have converted into AXI shares but has not) and the $1 million annual royalty payments due to Roche Bay plc make sure that AXI can't just wait it out a few years.