RE:RE:Teuton NSR tracking for Friday, April 26, 2024 (weekly) Since we have no idea of when mine production would begin, or at what production levels, I think it would be folly to use an NPV. Too many variables to consider. That's why this is just a simple number that folks can apply their own assumptions to.
It is not conservative in that I use zero discount for a future value. If you think the minable ounces will increase from today's resource, then it could be conservative. It does only include the gold ounces only, excluding copper and silver. It also only includes current indicated resource, excluding inferred ounces. Oh, and it excludes all other deposits other than Goldstorm.
The point being, the NSR could eventually be of signficant value. If this became a multi-generational mine producing a million ounces per year, the NSR would stream over $20 million a year at $2000/ounce NSR net. This would continue for the life of mine, which would be several decades.
NineLives wrote: Good work on that in discounted price for TUO's nsr.
That would be one large payoff over the course of mining the deposit.
In financial circles they work on present day value, which if TUO was taken over could equate (before mining) to 20% of that NSR value.
Add that in with all the properties TUO owns, plus the shares in other companies and cash on hand and the fact shares are very tightly held then it would be $4 plus easy for a reasonable priced buyout, Then again there's no guarantee any bid would be accepted by voting shareholders. It's all very interesting and dynamic.