Ann: $18.8 Million Royalty Financing, page-26

Mathematically, this looks like a decent deal to me. Someone is paying $19m to enjoy a future 1% on achieved revenue. They would not do this unless confident of say sales of $4b- double their money- as a minimum. That speaks to their confidence of future production, and surely speaks to value, although, yes, margins are still an unknown. And yes, the company has to double the current resource as a hurdle to get some of that $19m, but that looks relatively easy based on last year’s efforts and we know there were discoveries not in the maiden MRE.

The value of the royalty skyrockets if revenue is high early- but so what, everyone is a winner….probably.

I have built a sizeable position. I am happy to sit and watch over the next four to six months. Hopefully it will be a great show!

I look forward to speaking with Dave up at Noosa in a few weeks at the Noosa Mining conference.

At $75m, the market cap makes no sense to me!
Interesting to see their plans for the other projects!!

GLT all.