Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Interesting To See The Current Value ! Mr Potter May Have 2 Hats On When Participating In The Valuation !
Correct Taylot, the income stream from the Royalty (NSR) will materialise once production starts in 2023 on T3/A4. However, there is an embedded value in the uncapped Royalty which is reasonably straightforward to calculate. MMc alluded to an unsolicited offer for the Royalty in a recent interview. Predictably the offer was declined! This value will continue to grow as A4 is upgraded and new satellite discoveries are made. An estimate of the Royalty value should appear in the accounts for 2020 but will be fairly meaningless. It will increase substantially over the next few years.
Firstly, ignore everything that one2one and cashking post, they are the boards serial bull****ters.
Secondly I suggest going back through the thread, there are some excellent posts.
I assume you understand what the NSR is.. the T3 royalty is over the mine (and the immediate resource area) which Sandfire are building, that is capped at $2m - while nice, it is a sideshow. The real value is the uncapped 2%NSR over the rest of the area. Uncapped means exactly that, they’ll be taking their 2% for while ever MTR is an entity and copper is being extracted from these areas - 30+ years???
Check through the thread, you will see the potential value of this NSR is truly astonishing. And it’s all for FREE!!! No capex required from MTR, just hand out and take the money. It is a company making asset.
Two numpties will say oh no money til the dirt is out the ground. Yes that is true but there is still a hell of a lot of value in the NSR, a hell of a lot, and it will only increase as Sandfire continue to explore. And now MTRs own project KML I’m has started drilling - we have an uncapped NSR over this ground aswell.
Company making asset. ATB
Could somebody please explain ...in simple terms....the capped and uncapped Net Smelter Royalty NSR...and how it works...
“Metal Tiger holds 6.2m shares in the A$1.2bn market capitalisation Australian Stock Exchange-listed company worth A$42.3m (15.2p a share) in addition to a capped US$2m Net Smelter Royalty (NSR) on Sandfire’s T3 Motheo Project, and an uncapped 2 per cent NSR over 8,000km2 of Sandfire’s adjacent licence holdings, which includes the A4 resource area.”
Thanks in advance.