James Fraser | January 31, 2017 | Pennyminingstocks.com: The new investment is what I have found to be the cheapest royalty company listed on the TSX or TSX Venture.
The company is an early-stage royalty stock Morien Resources (TSXV: MOX).
Here are the first part of my due diligence notes on Morien. Morien Resources is an early stage royalty company.
Royalty companies have fantastic business models as all they do is sit back and collect cheques.
The key for Morien is that in the next 4-6 weeks coal production at the Donkin Mine in Nova Scotia will commence providing Morien with cash flow.
As reported in a recent CBC article on December 2nd “The Donkin coal mine could start small-scale production soon” Transportation Minister – Geoff MacLellan
Morien is scheduled to receive a gross production royalty of between 2 and 4 percent at Donkin.
“Morien is entitled to a gross production royalty of 2% on the first 500,000 tonnes of coal sales per calendar quarter, net of certain coal handling and preparation costs, and 4% on any tonnage above 500,000 per calendar quarter, net of certain coal handling and preparation costs.”
Once full production commences the royalty is expected to bring in between $4 and $6 million per year depending on coal prices.
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