Royal Nickel Corp. RNKLF

RE:RE:RE:RE:RE:MMX owns a full 7,5% Royalty on all Gold at Beta Hunt

[Teatimenow]

marben100 wrote: Thanks for the info, teatime, which is correct. RNC's annual report says:

Existing royalty obligations at Beta Hunt are (i) Consolidated Minerals, 3% of payable nickel (at a nickel price under A$17,500/t) or 5% (at a nickel price of A$17,500 or greater) until total royalty payments reach A$16 million; (ii) Western Australian state government, 2.5% of recovered gold and nickel; (iii) Maverix Metals Inc., 1.5% of payable nickel less allowable deductions, 6% of recovered gold and 1.5% of recovered gold less allowable deductions; and (iv) Pala, 2.25% royalty on future Beta Hunt nickel production commencing April 1, 2019.

Now let's think about this... suppose RNC produces $200m of gold p.a. - a big uplift on current production, so that's $15m p.a. to MMX's bottom line - nice but not massive relative to MMX's market cap. of C$442m. Think I'll stick with RNC with a market cap. of still only C$158m and which would benefit from the lion's share of the profits from such a production increase.

Mark

MMX has 9 other produing assets and is fairly valued at this 400mm without 7,5% royalty on Beta Hunt, so Beta Hunt is the wild card.
https://maverixmetals.com/assets/overview/

So your comparison lacks. Then you need to consider that a royalty does recieve a hugh premium.
Look up the takeover of Osisiko gold by yamana and agnico eagle fpr 3.9billion
the then spun-off 5% royalty was valued approx 1 billion by the market on that single asset...