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Renegade Gold Inc V.RAGE

Alternate Symbol(s):  TGLDF

Renegade Gold Inc. is a Canada-based company, which is engaged in the business of acquisition, exploration and development of mineral properties located in the Red Lake Mining District of Northern Ontario. Its principal business activity is the exploration and evaluation of mineral assets. The Company holds over 1,200 square kilometers of property in the Red Lake gold district of Ontario, including key areas adjacent to Evolution’s Red Lake Mine, Kinross’ Great Bear Project, West Lake Gold Mine’s Madsen Mine and First Mining Gold’s Springpole Project. It holds a 100% interest in the Newman Todd properties (the NT Project). Its Red Lake Gold Property is a 16,900 hectares (ha) land package strategically located between the Madsen Mine, Kinross’ Dixie Project, and Evolution Mining’s Red Lake mines. Its Confederation Belt Property covers 57,000 ha and spans 65 kilometers (km). The Sidace Project is located 28 km northeast of Red Lake, at the northern extent of the Red Lake Greenstone Belt.


TSXV:RAGE - Post by User

Bullboard Posts
Comment by HappyInvestingon Feb 12, 2016 3:13pm
214 Views
Post# 24553787

RE:RE:Excellent news - all cylinders firing nicely!

RE:RE:Excellent news - all cylinders firing nicely!I believe it does, as the Government likley owns 10% of the shares of the BF subsidiary.  The free carry is NOT a royalty on top line revenue.  Any royalties are built into top cash costs and all-in susustaining costs.   As an example, the government of Eritrea owns 40% of the shares of Nevsun's subsidiary in that country that operates the mine.  As a result, 40% of aftertax profits are dividended out to Nevsun and to the Eritrean government.  I'm pretty sure TGM has it set up in Burkina Faso as well.

That said, I did make a mistake in the earlier calcuation.  I forgot to deduct the 20,000 oz that TGM has to deilver to the streamers each year, beginning Mar 31, 2016.  For those 20,000 ounces, they only get paid 20% of the spot gold price, and the streamers keep the 80%.  So the top line revenues in my earlier calc are reduced somewhat, but only on those 20,000 oz.  If you work through the calcs, it reduces the per share cash flow to $0.11 to $0.12 CAN per share based on 400 million shares.   Still a pretty good number for a junior producer currently trading at 33 cents. 


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