Even though the royalty deal effectively caps the royalty the US$ option exercise price of US$25M is nothing to get excited about.
Assume that BTR is able to mine 100% of the current Measured + Indicated + Inferred resource of 443Koz (which is highly unlikely) that would translate in total royalty revenue of ~US$23M (443,000 x 1,750 x 3%). If you subtracted ounces that do not make it into the mine plan, recoveries of ~90%, time value of money as well as execution risk) the actual royalty revenue NPV would be far below US$23M. BTR would need to substantially increase the resource or have a much higher gold price for this ever to make sense. In the meantime Stone Resources banks a handy A$300K for a substantially "out of the money" option. That BTR got to and agreed to US$25M is very surprising.
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Last
1.7¢ |
Change
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Mkt cap ! $97.49M |
Open | High | Low | Value | Volume |
1.6¢ | 1.7¢ | 1.6¢ | $29.5K | 1.839M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
16 | 12643798 | 1.6¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
1.7¢ | 13939068 | 18 |
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No. | Vol. | Price($) |
---|---|---|
16 | 12643798 | 0.016 |
47 | 19618429 | 0.015 |
20 | 5205929 | 0.014 |
8 | 4919377 | 0.013 |
9 | 6268337 | 0.012 |
Price($) | Vol. | No. |
---|---|---|
0.017 | 13939068 | 18 |
0.018 | 7541292 | 19 |
0.019 | 6157559 | 7 |
0.020 | 4754105 | 9 |
0.021 | 2022800 | 2 |
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