Excellent news that the AJM 2nd stage DFS was positive.
The mine life will be 13yrs at 440kt per year.
The total gross revenue is expected to be $4.4B (see below)
Even if we were to say 70% of the pit lies within the 1231 tenement, this would mean gross rev of:
$4.4B x 70% = $3.08B
Gross royalties would be:
$3.08B x 5% = $154M or 1.7c per share
A discount rate of 5% per annum would still give total royalty valuation of about 1.2c.
This does not yet include the Southern ridge drilling results that mainly focussed within the 1231 tenement that could increase the life even further of the mine.
AGO Price at posting:
3.1¢ Sentiment: Buy Disclosure: Held
