Royalty Holder…………..Royalco Res
Revenue……………..…..……………$1.2m
Mine Life...……………..…………………n.a.
Commodity……………..Oil, Zinc, Gold
Operator…………………………………..n.a.

#20 Royalco Resources

Like Morien, Melbourne-based Royalco Resources is a royalty hopeful, turned takeover bait.

Once part-owned by Anglo Pacific, Royalco has claims over the Mount Garnet zinc mine in Queensland and OceanaGold's Blackwater gold deposit in New Zealand. In 2013, it also bought a 1 per cent interest in a 2.5 per cent royalty (equal to a net 0.025 per cent claim) in the massive Bass Strait oil field off Australia, co-owned by Exxon and BHP Billiton.

The royalty cost $8.5m and Royalco's total royalty receipts are currently just shy of $300,000 per quarter. The company is also sitting on cash of A$3.8m, versus its dwindling market cap of A$11m ($8m), making Royalco a deep value play for royalty acquirers.

 

 

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