$3,440,000 = Lamêlée Iron Ore 43,000,000 shares X 8 cents.
$3,030,042 = Champion Iron Mine 11,018,333 shares X 27.5 cents.
$2,559,250 = Argex Titanium 4,412,500 shares X 58 cents.
$400,000 = KWG Resources 10,000,000 shares X 4 cents.

$9,429,292 = Total – Lamêlée + Champion + Argex + KWG.
$7,040,000 = Fancamp Market Capitalization.
Negative $2,389,292 = Fancamp – not counting our four major security holdings.

Some of our securities have holding periods. On April 30th, the date of our annual financial statements, approximately half of our securities were immediately “marketable” (worth $4,540,959 at that time). In addition, our cash balance was $1,233,292 on April 30th.

KWG promotes Koper Lake as its flagship property. KWG is required to spend $8 million on exploration and pay Fancamp an additional $16.4 million to earn 80% of the project.

We have NSR agreements with all four of our major partner companies (on top of long-shot NSR agreements with others). The NSR returns probably will wind up exceeding (by a wide margin) the value of the securities we hold.

I realize estimating future NSRs is far from an exact science. But at least Market Equities Research Group lays out the rough ballpark figures and gives us the general idea (regarding two of the four major projects that we farmed out). On page 8 of their 18 page Fancamp Exploration report of April 15th, so far as just Lamêlée alone, “Although early stage, the 43-101 resource estimate provides an indication of what the royalty value may ultimately be under a production scenario.”

The accompanying Market Equities chart (on the same page) gives $15 million as the estimated annual royalties and estimates $300 million as the royalties for the life of the Lamêlée project. Later in the report (on page 16), under the same kind of “production scenario,” the Lac La Blanche Project at Argex is estimated to pay Fancamp annual royalties of $3.5 million in years one and two and $7 million annually thereafter. The estimated payout is $160 million for the life of the La Blanche Project.

Adding together the Lamêlée and Argex NSRs, we get the very rough estimate of somewhere between $18.5 million and $22 million of annual royalties. If we were to include the Champion and KWG royalties (leaving out the long-shots), obviously our receipts would be higher (possibly much higher).

Of course, on top of our financial holdings, there are the properties still under our direct control. Our 46.72% interest in Magpie is not a subject that can be well-covered briefly. But I will mention, in passing, it’s hard to argue that such a humongous deposit of Titanium, Chromium, Vanadium, and Iron (together with successful advanced metallurgical testing) is worth less than tens of billions. You get well up into the billions by applying 2% of the spot market prices to the in-situ tonnages.

When you compare the number $7,040,000 ($7.04 million) to the number $7,040,000,000 ($7.04 billion) the difference is not a factor of ten. The difference is not a factor of one hundred. To balance the numbers, you need to divide the second number by one thousand to arrive at our market cap, the first number.

Of particular interest to me are Fancamp’s copper properties (not including the gold properties) in Southeastern Quebec (south of the St. Lawrence, close to Maine). Leaving out every single other thing about Fancamp, I’m convinced those copper properties alone are easily worth more than our $7.04 million market cap.