Is anyone doing the mathHi all
Trying to figure out what will be left after costs royalties and debt. I keep hearing there will be 100m FCF per year but I don't think that will be the case because if it was, the IRR would be off the charts. AISC per year is about 120m. Revenue w gold at 1350 and copper at 2.50 = 200 million. so 80m fcf but...
Royal gold gets 25% of production @ 25% of spot price (or 337/oz @ 1350 GP). until 525k oz delivered. That would take 20 or so years. after that RG gets 12.5% of gold produced for the next 5 or so
so revenue = 63k oz @ 1350 = 85m
+ 21k oz @ 337 = 7m
+ 35m lbs @ 2.50 = 87m
total rev = 180m - 120 aisc = 60m
A lot more shares will be in play with the financing agreements as well by 2019 plus interest that has to be pd.
this is a crude picture. has anyone else taken a stab at what wil be left for shareholders?
DN