GREY:TCEGF - Post by User
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Fullplateon Jul 25, 2018 11:14pm
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Post# 28368752
RE:Two corrections.....
RE:Two corrections.....Drool, Terraco owns a 3% NSR of a total 7%, from what I understand. It’s not a sliding scale.
Look at the Terraco news release from May 16, 2016, which highlights the deal with Waterton. It discusses the sale of Moonlight, the retention of the 2% Moonlight NSR, the $7 million of cash received from Waterton, and the 5-year debenture issued to Waterton for an additional $14 million (the source of the funds to exercise the option to purchase the NSR’s).
It’s a complicated deal with a lot of moving parts. There are a little less than 3 years left on the debenture. Waterton will be forced to act in some manner by mid-year 2021. Let’s hope the market moves sooner than that. If not, at least we know that Waterton can’t drag out a decision for too long. They are approaching the mid-point of the 5 years.
Other comments:
As frustrating as it is to wait without news and to endure a ridiculously low share price, I feel better by making small purchases of shares when I have a few dollars left over from other stock sales and purchases.
The type of risk from holding Terraco is different and less than from exploration or operating junior PM miners, which allows me to hold a higher percentage in one company than I would otherwise. I also think that the leverage to a much higher gold price, relative to the risk we investors take, is about as good as you will find anywhere else. And that’s why I invest in this sector to begin with. I am more confident that we will see multiples of today”s PM prices within a long-term investment time frame than I am of any of the mainstream analysts predictions of market behavior short or long term. That’s not to say this is not a risky investment, but it is a better way to diversify risk than holding companies that are very similar. We are all in the same boat here, and I wish us all success.