Observations from Collin Kettell interview An interesting take from the interview with Pallisade Gold’s Collin Kettell was that NFG shares amount to over 90% in value of Pallisades assets.
Furthermore, the tax cost of these investments are only cents per share and therefore, following a potential sale of NFG shares, almost the entire proceeds will be taxable.
In the light of the above:-
- Pallisade may be encouraged to seek a lower up front capital payment if a sale of NFG were to be considered, combined with a high long term NSR.
- In this way Pallisade’s initial tax bill will be lower and it will in effect become a Royalty company.
- As a Royalty company, the share value will be multiples of PE valuation, in comparison to a mining company.
- Moreover, the capital gains tax on the sale of royalty company shares may be a more advantageous route in order to personally realise money.