RE:Don't forget the NSR NSR is much closer to the price of gold, effectively if you used the actual price of gold, you wouldn’t be far out.
Read this article for some info on NSR.
To your general point, this royalty could be a very sweet deal at current prices. :)
https://www.franco-nevada.com/our-assets/terms-explained/default.aspx captainpooby wrote: Remember the net smelter royalty?
Think about this:
( I'm using US dollars)
Say for a minute there are 10M oz of gold
now say cost to mine and smelt one ounce is $500 and gold sells for $1500 oz 1500-500 = $1000
10,000,000 x $1000 = $10,000,000,000
the royalty is 2%
.02 x 10,000,000,000 = $200,000,000
there are 50,000,000 shares of GBR
$200,000,000 / 50,000,000 = $4.00 per share royaly over the life of the mine.
the price of a share in US dollars as I type is $5.38
$ 5.25 - $4.00 = $1.25
Now imagine there is 20,000,000 oz. If you do that math, your NSR id $8.00. Now, any shares you buy are effectively free plus you get paid $3.75 for each share you buy.
Am I missing something? Is my math wrong?