Royalty Holder……Euro Ressources
Revenue……………..…..…………....$29m
Mine Life...……………..…............7 years
Commodity……………….................Gold
Operator…….................Iamgold Corp

#1 Rosebel

Euro Ressources, which is listed in Paris, owns a royalty over the Rosebel gold mine in Suriname, a former Dutch colony bordering Brazil and French Guyana.

The royalty is hefty, equal to 10 per cent of the gold price above $300 to $350 per ounce, whilst the mine reliably churns out around 300,000 ounces per annum, generating royalty reciepts of €6.9m last quarter, or $25m to $30m a year. The terms of the royalty are complicated, varying with rock type, but every $100 move in the gold price translates into around $3m of royalty revenue.

Rosebel has a huge mining concession and Iamgold Corp, which owns the mine, is continually pushing out the mine-life, currently sitting at seven years. Iamgold has locked up the majority of Euro's stock, holding 89.7 per cent of the shares, but arguably the royalty revenue would be more valuable to a listed royalty group, which could jack the revenue up onto a royalty-type premium.

 

 

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