As an investor new to Helium investing, this raises questions. See chart below -> as much as I like the prospectiveness of the BNL assets, I do not like the size of royalties they will have to pay once they become a producer and bring in revenue. Using the 90% likely producing assets case below, the royalty payout rate (once they are producing) is 38.1%. I assume this is an offset to taxes?
Questions:It is not necessarily a negative for the business to focus on fattening up for a sell, but I would be monitoring the business carefully for dilution and G&A expenses going forward to make sure they are taking the 'develop to sell' path in a shareholder-friendly manner.
- Is this royalty commitment normal vs comparable producing businesses?
- Is this royalty net of tax or is tax added on to this? Or, are there tax credits for such?
- Is this business competitive overall with its cost structure relative to comparable businesses?
- Would this make the business more focused on fattening up the asset to sell it to a bigger player (with no intention to actually produce in the future)?
Which way are they going?![]()
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- Royalty overheads and what industry norms are to compare this too?
Royalty overheads and what industry norms are to compare this too?
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Last
0.6¢ |
Change
0.000(0.00%) |
Mkt cap ! $11.66M |
Open | High | Low | Value | Volume |
0.6¢ | 0.6¢ | 0.5¢ | $8.098K | 1.405M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
7 | 1361022 | 0.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
0.6¢ | 8061876 | 17 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
7 | 1361022 | 0.005 |
14 | 5363121 | 0.004 |
33 | 15219908 | 0.003 |
11 | 7400506 | 0.002 |
6 | 25100025 | 0.001 |
Price($) | Vol. | No. |
---|---|---|
0.006 | 8061876 | 17 |
0.007 | 5261019 | 11 |
0.008 | 2025000 | 5 |
0.009 | 7877526 | 10 |
0.010 | 4155003 | 4 |
Last trade - 16.10pm 30/08/2024 (20 minute delay) ? |
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