Great update Quickdraw, but remember, talking to the company, you will hear all the positive stuff.
<<<Barb indicated the 3% NSR was considered as standard and should not be considered as onerous.>>>>, as we showed Barb is not correct, along with 25 million dollar payment, it is onerous. Maybe she never sat down and worked it out.
<<<<She noted that the 3% is off the value of what is mined. >>>>, exactly, but this what will make the IRR lower. When someone is going to take over the company they look at the IRR, and than place a bid. But here they will have to buyout the owner, the shareholders and still be stuck with this NSR, this will be all factored in. She doesn't see a problem, but wait until the report comes out. The NSR will take off a 1 or 2 bucks off the stock price. This is why I say there is a lot of promotion here. The companies who will take over PFG will look at the NSR, and will give a lower bid. Barb, we will wait and see.
<<<<<The formula I used in an earlier post seemed to bother her, in particular the $30US figure. She suggested the range could typically be anywhere from $10US to $90US.>>>,, 90US, wake up Barb. 30US is the better number. Why, add in the purchase price and the NSR. She was upset because it's the truth. In addition, this NSR must be paid during payback. Too much.
Thanks for calling and sharing the information. |
