https://www.businesswire.com/news/home/20210811005778/en/Royal-Gold-Acquires-Royalty-on-World-Class-Red-Chris-Mine%EF%BB%BF
Royal Gold paid $165M US for a 1% NSR, which is roughly based on around 92% of the revenues.
Based on our conservative PEA for SC:
- Estimated revenues (LOM): 353Mlbs CuEq x $3.25 US = 1.15B US
- 1.15B US x 92% = 1.06B US
Our 25% is expected to generate $88M US (351.2M x 25%) of profit per year (LOM) once capex is paid. $88M US against 1.06B US of applicable revenues per year (LOM) is about equivalent to a 8.3% NSR.
From my calculation, at today metal prices, projected SC revenues are ahead 15% vs. the projected Red Chris revenues.
Do the math!
IMO.
MoneyK