RE:RE:Pros And Cons : Goliath vs THE BEAST (Goldboro)Shifty said
"You forgot to mention that apparently Nabairi will get a 6% net smelter royalty on the Goldboro project according to the news releases. Did you forget that?
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that was a big mistake on my part. it was a 0.6% NSR on Goldboro. For $6 million US? That seems extremely expensive unless they expect the mine to be up and running within the 24 months.
Suppose Goldboro could open up and produce 100 000 oz a year.
I will use $3000 Us price of gold, because it's a round number. It sounds expensive.
That is $300 million a year in sales. 1 year of paying 0.6 royalty. That is $1.8 million Us in royalties a year. So maybe it is not that expensive . Not if it's a 11 year mine. And they do need the money. The caveat... they have 24 months to buy this back.
I make mistakes.... i usually try to correct them. And I really like when others contribute.