GREY:ALARF - Post by User
Comment by
Capharnaumon Mar 08, 2018 10:59am
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Post# 27683040
RE:RE:RE:Unsustainable dividend?
RE:RE:RE:Unsustainable dividend?digitel wrote: Eventually you are going to lose them and have to replace them with equity royalty deals.
Yeah but they usually make a higher return (IRR) when a partner leaves (say 25%) which means they have extra money to allocate. Let's say they had $40M deployed at 15% and in the end receive $50M when the partner sells, then they could setup a $40M @ 15% + $10M common shares without having an effect on the divy.
They are not dumb, they know they need cashflow to maintain and grow the dividend. The will not go into common shares if it affects that.