Rye Patch Gold RPMGD

Nice mention in Aureport.com

[orfeos]

RH: Rye Patch Gold Corp. (RPM:TSX.V; RPMGF:OTCQX), which is in Nevada. The main thing that caught my eye is it has a 3.4% net smelter royalty on Coeur Mining Inc.'s (CDM:TSX; CDE:NYSE) Rochester mine. Given where commodity prices are today, that has given Rye Patch about $45 million a year in revenue, which it can then use across its exploration projects. Rye Patch's main project, Lincoln Hill, is right next to the Rochester mine. It's scoped out as a small-scale operation, only about $30 million to build. It has an attractive internal rate of return because while it is low grade, it does have a low strip ratio, so the economics hold up in today's gold price environment. "The economics of Rye Patch Gold Corp.'s Lincoln Hill project hold up in today's gold price environment." Additionally, Rye Patch has several other exploration properties that are starting to look more interesting, including some in the Cortez Trend. Garden Gate Pass looks like it falls along strike of Barrick Gold Corp.'s (ABX:TSX; ABX:NYSE) recent Goldrush discovery, which is a little more than 8 million ounces (8 Moz) at 11.5 g/t. Being along strike of that makes Garden Gate Pass a pretty important exploration target, as is the Patty project, a joint venture with Rye Patch, Barrick and McEwen Mining Inc. (MUX:TSX; MUX:NYSE) in roughly the same area. Rye Patch is following all of these recent discoveries of high grade along the Cortez Trend, in addition to the project that it already has. https://www.theaureport.com/pub/na/lithium-x-is-not-alone-profiling-this-marketplace-darling-and-others-in-the-sweet-spot

[upupandaway7]

I wish the royalty was $45 million a year. I don't have the actuals but think the royalty is about 5 to 6 million a year until the cap is reach another few years from now. Still an attractive sum of money for a junior stock with time to establish a nice gold and silver portfolio.

[awacs1]

Upandaway, you are correct. The royalty last year was $6.2 Cdn and will be about the same this year with the  stream terminating in about three years. I like much of what I see in RPM but I get the sense that the royalty stream has muted the enthusiasm of management. They are in a comfortable pew and do not really need to push too hard. I would like to see a challenge mounted at the AGM to

[ukermann]

Hello to all: I thought I read somewhere that the royalty being paid for the Rochester property was leveraged to the price of both silver and gold. I think it doubles if and when silver hits $25 bucks. Anybody know the facts? Collecting $6 mill vs $12 mill is quite the difference.

[ukermann]

So I went to the Court web page to examine the Rochester results for this last Q reported, and they make the following statement: • In 2016, Rochester is expected to produce 4.8 - 5.3 million ounces of silver and 48,000 - 55,000  ounces of gold at costs applicable to sales per silver equivalent ounce1 of $11.25 - $12.25 (based on  a 60:1 equivalence So extending those projected

[ukermann]

Should read: So I went to the Couer web page....

[pipefit2]

Correct.  Rye Patch's royalty check rises and falls with price of silver and gold.  They are entitled to a set number of ounces.  The only questions are when those ounces get produced, and at what prices are they sold.