GREY:RNKLF - Post by User
Comment by
goldhunter11on Mar 14, 2019 1:30pm
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Post# 29486416
RE:Royalties on beta hunt mine
RE:Royalties on beta hunt mine arh...,
Do you know if RNX still have 8.5M shares of Maverix? If you do please provide a link.
GH11
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arh0070 wrote: I did a little digging and discovered that RNX sold 2% royalty on gold and 1.5 % on nickel from the beta hunt mine in jan/feb 2017 .The price was 5,000,000 plus 8.5 million shares in maverix (then worth 40cents) .Also included in the price was a 3.25 %royalty on the florida canyon mine then owned by rye patch gold (now merged with Alio gold) which is producing about 50,000 ounces of gold per year .SO that puts a value on the beta hunt royalty of about 4 million if you ascribe 50%of the value to the producing florida canyon mine .In the last quarter maverix made somewhere between 4-7million from the total royalty .I cant go any further back to discover when they bought the other royalties .So maverix got a great deal ,which is why it has gone up6 fold since it closed that transaction .Its now owned 35%by Newmont so the big guys must like Maverix management .Clearly the RNX booster club doesnt care about details like this but it is very important since the royalties are taken off the top and markedly affect the profitability of the beta hunt ,indeed maverix gets paid even if the mine looses money as long as it is making gold or nickel .So this increases the bar for the beta hunt and it will need to find a lot of high grade gold to be profitable .If it does it will mean that Maverix will make out like a bandit .