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Bullboard - Stock Discussion Forum GraniteShares Gold Trust BAR

The investment seeks to reflect generally the performance of the price of gold. The Shares are intended to constitute a simple and costeffective means of making an investment similar to an investment in gold.

ARCA:BAR - Post Discussion

GraniteShares Gold Trust > trouble with business model is cost of debt to carry
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Post by drunk@noon on Jun 20, 2021 1:11pm

trouble with business model is cost of debt to carry

the project vs return on asset isn't that large when you have to finance at 6% plus interest rates. Though in constant dilution for equity and it doesn't make that much sense with such a small spread between cost of holding projects and the cost of financing them.
i.e the spread between reoccuring rev from projects-costs of building and maintianing projects and the cost of financing these projects is a stream which you then apply a NPV.
Comment by alleyesonme on Jun 20, 2021 2:22pm
Disagree. Tax equity pays for a portion of the project. The remaining debt is carried as project level debt for 25 years. The repayment is calculated at a high rate like 6 or 8%. 25% of the recurring revenue pays project debt, maintenance, insurance. The remainder is gross profit. The costs of development is paid from the project level debt upon completion as a developer fee. This doesn't take ...more  
Comment by BCdude on Jun 21, 2021 3:30pm
Nicely explained, Alleysonme.
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