New Found Gold (TSXV: NFG) gained by 6.98% today to $6.59 per share and now has a market cap of $1.156 billion.
Earthlabs (TSXV: SPOT)'s 0.2% NSR royalty in NFG's flagship Queensway Project covers the highest grade zones and its royalty goes up to 0.5% for the rest of the property.
A 0.2% NSR royalty is worth approximately 2.0% of the property value, because SPOT doesn't need to pay for any of the $50 million+ NFG is spending on drilling each year and SPOT won't need to pay for the $1 billion+ in initial CAPEX to build a future mine.
2.0% of NFG's market cap of $1.156 billion = $23.12 million
There are dozens of royalty companies that would happily pay SPOT $23.12 million for its NFG royalty today!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 30,500 shares of SPOT in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
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