Gold Price Participation Agreement – Commencing in September 2021, a gold price participation payment on 1,449 ounces per month to a total of 62,307 ounces. Payment is calculated based on the differential between the average LBMA Gold Price for the month subject to a minimum gold price of US$1,127 per ounce, and a gold reference price of US$1,100 per ounce;
Assuming the POG is at least $1127, on the first 1149 ozs each month the company makes approx $350 an oz regardless of the POG, and Sprott makes POG-$1100. This goes on until March 2025.
Over 12 months, sprott gets the majority of the profit of 13788 ozs. Interestingly, if EMRs costs go up, it does not affect how much sprott receives.
If the company hits 110K ozs annually, Sprott is getting around 10% of the gold profit.
EMR Price at posting:
$1.14 Sentiment: None Disclosure: Not Held
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