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AMREP Corp T.AXR


Primary Symbol: AXR

AMREP Corporation, through its subsidiaries, is a holder of land, developer of real estate and homebuilder in New Mexico. The Company operates through two business segments: land development and homebuilding. The land development segment offers for sale both developed and undeveloped real property to national, regional and local homebuilders, commercial and industrial property developers and others. Activities conducted or arranged by the Company include land and site planning, obtaining governmental and environmental approvals (entitlements), installing utilities and storm drains, ensuring the availability of water service, building or improving roads necessary for land development and constructing community amenities. The homebuilding segment offers a variety of home floor plans and elevations at different prices and with varying levels of options and amenities to meet the needs of homebuyers. The Company focuses on selling single-family detached and attached homes.


NYSE:AXR - Post by User

Comment by roberto146on Aug 03, 2020 12:41pm
183 Views
Post# 31357744

RE:RE:RE:RE:RE:Is this company hedged at all?

RE:RE:RE:RE:RE:Is this company hedged at all?Angel: In case you missed it, the Jun 24 news release regarding new streaming agreement (Not hedge, and also Not royalties; this is a streaming agreement for the 50 million USF development funds advanced to Alexco from Wheaton about 12 years ago, substantially secured by AXU assets, and modified several times since):
https://stockhouse.com/news/press-releases/2020/06/24/alexco-moves-forward-to-production-at-keno-hill
Payment by Wheaton to Alexco for 25% of silver production from Keno Hill.
(First 2 years, if 8 million oz total production, of which 2 million oz to Wheaton)
In the case of today's 24 dollar silver, payment to AXU for the first two years or 2 million oz would be 2.40/oz USF, or about 3.36/oz Canadian.
[90 - ((24 -15) *10) = 90%-90% =0% of spot (but adjust to minimum 10%) * 24.00 = 2.40 USF.]
and
For 30 dollar silver, Wheaton pays 3.00 USF or say 4.20 CDN.
For 20 dollar silver, Wheaton pays 8.00 USF or say 11.20 CDN
And for 10 dollar silver, Wheaton pays 90% of spot or 9.00 USF or say 12.60 CDN.
(Note that maximum and minimum payments are 90% and 10% of spot. Below 15 spot invokes max 90%, above 24 invokes minimum 10%).

I believe this accurately represents the current payment agreement. All these agreements except the first one have been a little complicated.
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