So I educated myself a little more about Royalty companies and here's how I think the valuation could have been made for the Red Chris 1% NSR transaction.

From Royal Gold's last financial statement:

"Approximately $116.1 million and $48.9 million was allocated to production stage and exploration stage royalty interest, respectively, as of September 30,"

When discounting the Red Chris PFS cash flows (copper at $3.30 US and gold at $1500 US) by 3.2%, I get close to the 116.1M US valuation.

When increasing the copper & gold prices by 20%, which is more in line with the SPOT price, a 5% discount gets me close to the 116.1M US valuation.

The remaining $48.9M US was the valuation allocated for exploration upside.

When applying the same logic to our stream our cash flows (copper at $3.25 US and gold at $1500), a 3.2% discount gives me a possible valuation around $750M US + exploration potential for our 25%.

IMO

MoneyK