Yesterday, NIA received a must see graph created by Barrick Gold for internal review of their long-term gold production estimates. Based on this chart, Barrick is relying on the Robertson gold project to generate a significant amount of its future gold production!
Coral Gold (TSXV: CLH) is building major momentum and closed yesterday up for its third straight day, finishing at $0.47 per share. You have seen NOTHING yet! In NIA's opinion, CLH must rise significantly higher because it already has $0.382 per share in cash and is only receiving $0.088 per share or CAD$4.2 million in value for its sliding-scale NSR royalty in Robertson, which is currently worth 1.5% and will rise to 2.25% when gold breaks $2,000 per oz!
If Robertson isn't in production by year-end 2024, Nevada Gold Mines on January 1, 2025 will be required to begin making large annual advance royalty payments to CLH of USD$500,000 or CAD$660,450 until Robertson enters production (for up to ten years)! With CLH guaranteed to at least receive another CAD$6,604,500 or $0.14 per share in cash in the future, NIA considers CLH the biggest steal in the entire market below $0.522 per share!
From talking to the CEOs of many gold royalty companies, it seems like there are at least 3-4 gold royalty companies out there that would immediately jump to pay CLH a minimum of USD$10 million or CAD$13,209,000 for the Robertson NSR royalty if CLH wanted to sell it. Therefore, the absolute minimum enterprise value that CLH will likely reach in the upcoming days is CAD$13.209 million, which would value CLH at $0.66 per share.
Keep in mind, in any sale to a third-party, Barrick/Newmont have the right to match the sale price and acquire the royalty back for themselves! For a gold royalty company to have a realistic chance of acquiring CLH's Robertson royalty, they would need to offer CLH between USD$20-$30 million (CAD$26.42 million-CAD$39.63 million), which if accepted would increase CLH's cash position to between $0.94-$1.21 per share!
Robertson was originally acquired by Coral Gold (TSXV: CLH) back in 1985 at the urging of legendary geologist Dr. Ralph Roberts who is credited with the discovery of both the Carlin and Cortez gold belts in Nevada, which together account for the majority of America's total all-time cumulative gold production! After convincing CLH to acquire Robertson in 1985, he convinced Barrick Gold to acquire Goldstrike in 1986! Dr. Ralph Roberts' advice caused Barrick to become the world's largest gold miner! Since 1986, Goldstrike has produced 42 MILLION oz of gold! We have now come full circle because Barrick's existing gold mines will see their production cut in half over the next decade! For Barrick to continue prospering, they MUST bring Robertson into production, the other Nevada gold project that Dr. Ralph Roberts loved!
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. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
