RE:Teuton's NSR valuationYoure 100% right. The NSR is extremely valuable. It will never get diluted either. It could end up being worth more than the equity e.g. look at Argonaut, at the end of the day the equity for the WHOLE project ended up being not that much larger than NPV of NSR a 1%,
When I fisrt bought TUO, you got the NSR for free and relative discount on their piece of TC. Now, you get TC and the rest of the assets, including NSR, for about $7M. A steal!!!!!!!!!!!!!
And the free ride to production decision is also huge. TUD has had to dilute 50% in past few years alone to fund the drilling. And their is a ton of work to do before a production decisionl. Could easily be $100 million or more.
TUO is the way forward. AMK a secondary choice. I still hold a little TUD for sentimental reasons!!! No rational reason not to dump/convert what I have remaining. But Im a sentimental kinda guy....
rockport1 wrote: Folks are discussing the value of Goldstorm's in the ground resource at $20 - $100 per ounce. However, what is neglected for Teuton is the value of the NSR. On Goldstorm, the Teuton NSR is 0.98%. For this exercise, just round up to 1.0% (yeah, shoot me).
If you take a 30 million ounce deposit, that would be a future value on 300,000 ounces of gold. At today's prices, the undiscounted future value is $600 million. Even if you assume half the current resource is minable, that is still $300 million, Again, at today's prices, that translates into a $20 per ounce valuation for the NSR alone for Teuton (using the full 30 million ounces). You can add this to the $20 to $100 per ounce market cap value you give to the deposit.
Of course, you can plug in different values for discounted time value, but the point is, the Teuton NSR is not insignificant, and potentially doubles the value of Goldstorm to Teuton relative to the other partners. On top of this, Teuton is given a free ride until a construction decision is made. Folks are advised to factor this in while selecting between which Treaty Creek partner to invest in.