RE:O'Brien: a Trojan horse since 2 years ?!?Question for tomorrow: What will happen to the Snowfield NSR's which Pretium owns?
On Dec 20, 2020 was announced that our Copper, Silver and Gold play "Snowfield" was sold to Seabridge. We received a joke price in cash of 100 m USD and said NSR Royalties rights = 15 % Net Smelter Royalties from the Snowfield Copper, Gold and Silver.
The Snowfield bookvalue at that time was US$232.1 million.
100 m USD received, means the 15 % NSR Royalties for Snowfield were valued with an intrinsic value of 132.1 million USD at that time, Dec 2020. (=>231.1 bookvalue minus 100 m USD cash received). Snowfield royalties would run not for some years but for decades (!) once the KSM - Snowfield project produces.
Since that time the price for copper has added roughly 33 %. Thus we can assume, that the value of the
Net Smelter Royalties is much higher now than at Dec. 2020. Let us say for example about 200 Million USD now.
What will happen to these old royalties rights? Are they given back to the PVG shareholders, for example each PVG share receives one right to participate on these 15 % Snowfield royalties ?
Would be roughly more than 1 USD value per share.
Or will these Snowfield NSR's go to Newcrest. So to speak as a generous little extra present from our beloved O`Brien to Newcrest besides
all our PVG gold which he gives away so generous into the hands of Newcrest ... ?
Tomorrows Webcast comes from RBC Capital Market. RBC Capital Market acts as official "financial adviser" for Newcrest in the "transaction" So I think it is the right place to ask and to answer such a question.
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Link to the PVG news release from Dec 20, 2020 ( a very special Christmas surprise from O`Brien to the shareholders and owners "Snowfield" at that time):
https://www.pretivm.com/news/news-release-details/2020/Pretivm-Closes-Sale-of-Snowfield-Property-to-Seabridge/default.aspx