Post by Shylockreturnson Nov 27, 2021 4:38pm
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Post# 34172628
No risk?
No risk?On the present version of KWN (King World News) E.B. Tucker strongly plugs Metalla Royalties and royalty streamers in general and comes just shy of stating they have no risk because someone else is bearing the cost of gold production and will into the multiple-decade future. He further states that "this is an asset that checks all the boxes I am concerned about right now." Of course, MTA is his company, which may introduce some degree of bias.
https://kingworldnews.com/e-b-tucker-11-27-2021/
But is that truly the case?
If we look at the late, great Ely Gold Royalties, it was humming along just fine until management decided they wanted onto the NY Board (you can speculate why yourself) and to accomplish that end Ely was morphed into GROY, which stock has since not done particularly well. We can only speculate where Ely's price may have been now had it been allow to continue in its former iteration as Ely.
So, I disagree there is no risk in respect to cost containment in a gold royalty streamer.
Any construct which depends upon human management making decisions has the risk of the honesty and capability of that particular royalty. Ely is a case in point in which the risk was management. And there are other potential risks besides management.
Now, I am not saying Metalla or any other gold royalty streamer is an Ely or E.B. a Wasser but I do believe any gold-based revenue-generating mechanism is subject to its own particular foibles just as it is subject to its variable capability to create revenue.
Omitted in E.B.'s interview is also comment on the potential leverage of the shares of the junior gold exploration companies compared to the gold royalty streamers wherein a five cent share may become worth fifty dollars. How likely is the price of MTA to run from nine dollars to $9,000.00??! I believe the probability of the former exceeds that of the latter.
He does recognize the shares but finds them inferior in his opinion to the royalty streamers. I disagree with this also.
But to each his own.
Regardless, great good fortune to all.