RE:15.5 million US for 1%… valuation?Management appear to be targetting 50,000 tonnes per year of production. At $10,000 per tonne and it all comes from this royalty zone, at 1% that result in royalty payments of $5M per year. Importantly all future dated and contingent on having an operating mine in place. These figures are just guesses.
If copper goes up, so does the royalty payment, but at least it is aligned and it is seems to be simply replacing a royalty that already existed. Is it worth trading $15million when needed in 2022 in exchange for potential payments of $5M a year for perhaps 10 years starting in maybe 2026 and only once commercial production is in place? I think so given the alternatives. I think it's better than 10% dilution at beaten up share prices and all the noise that goes with that like warrants and broker commissions. I also think that it is a big vote of confidence from a 2 billion dollar royalty company that this project will produce in the foreseeable future. Very happy with it.