Friday 9 October 2020

TNR Gold Los Azules Copper Royalty Holding Receives A Valuation Benchmark After Royalty Deal. Rob McEwen: "Taca Taca Serves As A Good Proxy For The Value Of Los Azules."


TNR Gold receives a very good valuation benchmark for our Royalty Holding on the entire giant Los Azules Copper Project which is being developed by the legendary Rob McEwen. All our long-term followers remember that McEwen Mining was stating in their news releases that "Taca Taca serves as a good proxy for the value of Los Azules".

McEwen Mining Chairman, Chief Owner and CEO Rob McEwen said: "With First Quantum acquiring Lumina Copper and their Taca Taca project, Los Azules moves to the forefront in terms of world-class, undeveloped, high-grade copper assets not owned by a major mining company. As we have said in the past, Taca Taca serves as a good proxy for the value of Los Azules and we believe this transaction demonstrates value in projects located in Argentina." 

Now deal by Nova Royalty provides all our devoted followers with more information to crunch the numbers and arrive at their own conclusions about the potential valuations for TNR Gold. Below you can find more information for your own research.


McEwen Mining

Nova Royalty pays for 0.24% of NSR Royalty on Taca Taca USD$12.75 million, TNR Gold holds 0.36% NSR Royalty on the entire giant Los Azules Copper project.

"Nova Royalty Corp. said on Thursday that it has struck royalty purchase agreements with private parties to acquire an existing 0.24% net smelter return (NSR) royalty on First Quantum Minerals Ltd’s Taca Taca copper-gold-molybdenum project, in Argentina for around US$12.75 million in a cash-and-stock deal."

 


It is important to note for all calculations of the potential valuations that TNR Gold Los Azules NSR Royalty does not have any buy back provisions which applies to Taca Taca Royalty valuation:

"The royalty is subject to a buyback right based on the proven reserves at Taca Taca in a feasibility study completed by a recognized, international consulting firm that is contracted by mutual consent, including the royalty holders. Nova said the buyback amount will be equivalent to the amount of the proven reserves multiplied by the prevailing market prices of all applicable commodities within Taca Taca."

 





"TNR also holds a 0.36% NSR on the Los Azules Copper Project, located in San Juan Province of Argentina. The Los Azules Project is owned 100% by McEwen Mining Inc (NYSE:MUX) and is expected to be the 26th largest copper mine in the world once it reaches production. 
A PEA at the project completed in September 2017, demonstrated a post-tax NPV8 of US$2.2bn with a post-tax IRR of 20.1%. Based on the PEA figures the mine is expected to generate average revenue per annum of U$953mln, which could generate around US$3.5mln a year to TNR over 37 years."

 




GEM Royalty TNR Gold Powered By Tesla rEVolution: Rob McEwen - "Los Azules Has Resources Of Greater Than 50 Million Gold Equivalent Ounces".



We have discussed with you in-depth that Tesla rEVolution has already propelled Copper into the powerful Golden Cross and the significance of the break out above the $3 dollar Copper price. You already know that TNR Gold is plugged into this rEVolution and the coming mass market for Electric Cars with our NSR Royalty Holding on the entire Los Azules Copper project under the development by the legendary Mr Gold Corp. - Rob McEwen. Today Rob McEwen himself is describing the magnitude of the Los Azules Copper project for your further research: "Los Azules has resources of greater than 50 million gold equivalent ounces."

The mining world is relatively small and it is getting much smaller once you will account all capable people with the real money who can move giant projects like Los Azules Copper into the next stage. To add a few more pieces for this Energy rEVolution value play puzzle we must remember that Warren Buffett bought a $564 million stake in Barrick GoldBarrick Gold is looking for a strategic Copper and Rob McEwen is "derisking this asset (Los Azules Copper), improving the access, and improving its attraction for a potential JV partner". 

"Also, in Argentina is the company's large, 100%-owned Los Azules copper project. "To give you a sense of its size I will convert the pounds of copper to gold equivalent ounces (by dividing the gold price by the copper price, then take the product and use it to divide the number of Indicated and Inferred pounds of copper to arrive at the number of gold equivalent ounces) and to that number add the gold and silver ounces in the deposit. Based on current metal prices, Los Azules has a resources of greater than 50 million gold equivalent ounces. We have focused on derisking this asset, improving the access, and improving its attraction for a potential JV partner," Rob explained."






Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. 
Do Your Own Research.






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