GREY:RNKLF - Post by User
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NEWBIEVESTORon Dec 04, 2019 10:10pm
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Royalty fact check
Royalty fact check6% is a very high royalty on this very large mine. Andrewski’s estimate is fair, it will cost on the ball park of $30-$35 million CAD to buy out. Hopefully RNX is going to post a $10mil+ profit this quarter with the coarse finds and along with cash on hand should be able to afford the royalty with only 40-50 million shares issued.
Yes it’s a sting after continuously getting diluted but in the long run it’s best to do it now. Tonnage from BH will ramp up and grades will increase as higher grade stopes are reached. Along with the ore sorter, the potential from BH could be 150k/oz year by end of 2020. What will the royalty be worth then, AND in a bull gold environment? 6% of 150k is 9000oz possible $2k gold price is $18 million or $24 million CAD. The value of the royalty will be in the hundreds of millions.