RE:RE:RE:RE:Treaty Creek ownership structure limits Tudor's options...Larry60 wrote: tuo and amk are laughing. good for them
rockport1 wrote: @Olympia2 Yes, could also be done as a share deal. However, I agree valuing the carried interest is not straightforward. Since most of my TC holdings are in TUO, I would prefer TUD to carry the load as long as possible. Free ride. Plus Teuton's NSR would have significant value as TC moves closer to actual production.
Actually Teuton is the one laughing the loudest. How do you value at 1% NSR on Treaty Creek. If they prove up a mineable 15 miilion ounces, that NSR is worth an undiscounted U$225 million @ $1500 gold, and $300 million at $2000 per ounce. Of course discounting required at your pleasure.
In any case, if they produce a million ounces a year, at $2000 per ounce, that is essentially a $20 million a year NSR in perpetuity. Of course, that assumes they continue to discover additional and/or find ways to expand the resource. Likely scenario once the mine starts in that geology.