Claudes market value is so distorted from reality. Just using the last NSR payment at a price of $12M for a 3% stake would equate to a $400M value for that property alone. Even if you back out the $42M in debt, you are looking at a $358M valuation. That would translate to a $1.93 per share price. That does not even include the cash from the almost 10M shares of Lar. Gold or or the $12M cash from the NSR or the payment from Madson or the Amisk mine. That means if someone were to purchase Calude and had their own management, $1.93 would be the minimum market expectation based on the NSR.
You're not calculating that correctly. they are getting 3% of claude's production, but are incurring NONE of the costs. You have to keep that in mind.
It is hard to figure out what the 3% royalty "imputes" the value of claude as a whole to be. In any case, I certainly agree with you that the stock is undervalued. In fact, as far as I know, I am the largest shareholder of the company.
That is not correct. The NSR is not gross revenue. It is revenue based on the average gold price for the month minus mining costs. This is why I subtracted out the debt costs. You may be the largest shareholder as I do not have that information. I am a substantial shareholder as well.
As far as safety, I calculate the the book value on this company to be $0.79. The companies stated book value is $0.76. So with the book being $0.79 and the latest transaction valuing the company at a minimum of $1.93, this stock is being vastly undervalued by the market.