OTCQX:GTBAF - Post by User
Comment by
Tminus1blkswanon May 17, 2020 12:57pm
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Post# 31039792
RE:Royalties
RE:RoyaltiesThe value of the royalty share would be at least the cash it was spun out with. The upside value potentual is much much more. I would argue that this would be a 500koz year operation. 500,000 x $1,600USD x 2% 13,000,000 shares = $1.23USD annual payout per spinco share. At a 5% discount factor over 20 years (implies 10Moz produced) the net present value when the mine STARTS production would be $15.33USD. What TODAY'S value is somewhere between 7cents and $15.33.