RE:NSRGalazym31, that's an interesting look at the NSR. However, you did not include one of the main drivers in any per share calcuation for a post production NSR. In this case, the dilution required to cover TUO's 20% of the pre production/capital costs.
For every C$1 billion in capital costs, TUO's contribution will be $200 million. How many shares will be issued to cover that cost? At C$4.00/sh, that would require a 50 million share financing.
Thus IF capital costs were only C$1billion, it would mean 100 million TUO shares outstanding and a halving of your $7.20/sh to $3.60.
You can plug in your own estimates of pre-production costs and per share value to estimate how many shares will be issued. Of course, they could also look to other forms of financing, but that complication is not the point of this exercise.
As a high-range reference, Seabridge's KSM PFS 2016/PEA 2020 demonstrates an initial capital outlay of about US$5 billion. Of course, Treaty Creek is likely to be far less, although how much less is clearly unknown at this point.
Anyway, fun with numbers. I've been going through many backs-of-envelopes lately!
Galaxym31 wrote: posted October 17, 2020 01:19 pm by Galaxym31 (229) 20 million oz. Au , 1% NSR = 200 000 oz. over 20 years = 10000 oz. x 2400.00 CND $ = 24 million CDN divided by 50 million shares = .48 x 15 EPS = 7.20 S/P in Canadian $ .
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