RE:RE:Royalty Spin-co?Hi WT,
From a growth perspective I happen to like the mixed model because we are still picking up properties and developing the most promising ones for when the market (eventually) turns around.
Why is that an "either or or" thing?! A Royalty -SpinCO would allow both. GMX is at ALL TIME LOWS! for yrs not falling.
Its easy: Spin-out the existing Royalties + a 0,25%0,5% NSR on all other projects owned and not subjected to 3rd party rights to "GMX Royalty Co"
then you have a GMX operationg Co , valued at maybe 5mm or so
AND
a GMX Royalty CO owning more than 60 Royalty rights and very likely a 20+mm marketcap
So an immidiate 100+% return to investors and a much cleaner structure.
In addition GMX Operatin/Exploration Co could grant to GMX Royalty Co a right to buy at fair value, any additional Royalties generated by GMX Op CO.
The other thing I like about the mixed model is that we don't have to pay multiple different CEOs and there is synergy in the administrative endeavors. The other side of that coin is that maybe the current executive and board are spreading themselves a bit too thin.
Quiete the opposite is true! GMX Royalty Co could be chared fees from GMX Op CO for common management. A pure Royalty Co only need 1 Person! An accountant. Roylties are very simple - get the ceques out of your mailbos.
=== Dividend possible.
chrs
Teatime