Why I’m Buying This Junior Resource Royalty Stock

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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.

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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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