Skeena Resources Ltd T.SKE

What ?

[templetooth2]

So Skeena thinks that 1/2% of the project's production is worth $17.5 million.

Simple arithmetic therefore leads you to the conclusion that 1 % might be worth $35 million.

So let's take a wild guess and assume 10 % might be worth $350 million. Are we following this so far?

Soooooooooooo, 100% would be $3.5 BILLION. Yes???

Meanwhile, in the market place today, the remaining 99.5% of the economic interest in the project is available at a market cap of 70 million shares X $7 Cdn (very approximately) or $490 million.

Sooooo, each 1/2% economic interest is being valued by the market at $490/198 = $2.47 million.

What?  Why are we paying $17.5 million for something the market says is worth one-seventh (1/7) that amount?????

Somebody quickly please explain? Did Walter Coles suddenly get seized by a brain fart/aneurism?
Am I missing something here?

[metalhead666]

This isn't correct. The NSR is on the gross amount of ore sold. So 4 million ounces at $1500 is 6 Billion...1/2% is $30 million....ir you assume $2000 over the whole mine life it's $8 billion gross and 1/2% is $40 million.....So buying back the royalty over the long term is a good deal.... I don't know for sure but I suspect that there was a time line on buying it back. A window to