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Gold/Mining/Energy : Til Capital Ltd.

TIL 4.000

0.0%

May 2 5:00 PM EST

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From: Sailing2	12/11/2012 10:39:46 PM
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Premier Royalty (NSR.TO) vs Golden Predator, From Metal Augmentor Out of the gate Premier Royalty (“NSR”) is being valued at about $150 million for its 5 producing net smelter return (NSR) royalties churning out about 5,000 ounces per year. In other words, NSR is being valued at about $30 million per 1,000 ounces of production. Not bad at all. We’ll plan to take a closer look at the two warrants to see whether or not they might be a more compelling way to play this story. For now let’s do a simple comparison between Premier and Golden Predator which owns its own impressive royalty portfolio and on top of this is expected to be a gold producer in 2014 at its funded Brewery Creek project in the Yukon. Although none of its royalties are producing just yet, for those with patience the potential reward is obvious. For example, if we only consider its 4% NSR on Midway Gold’s Pan project we’re talking about 3,000+ ounces per year beginning 2014. Applying that same multiple of $30 million per 1,000 ounces we’re looking at a $90 million valuation compared with today’s ~$40 million market capitalization. That’s a better than double without giving any value to its other royalties or Brewery Creek!

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