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Re: DanWebzster post# 385

Wednesday, 07/15/2020 6:43:19 AM

Wednesday, July 15, 2020 6:43:19 AM

Post# of 438
OR uses 'accelerator' model to enhance value their royal streams during periods of rising gold prices.

Accelerator model means taking the risk of getting involved earlier in the life of a project and taking equity positions in these projects.

In 2020, they have the following producing royalties:

- Malartic 5%
- Eagle 5%
- Elenore ~3%
- Island Gold ~2%
- Seabee ~3%

About 25% of assets are equity positions, including 100% of Barkerville Gold. Progress at the Cariboo project is a key to the future of OR stock.

OR has a higher margin and higher exposure by revenue than FNV or Royal Gold.

Their equity position in Falco has been a drag on OR. In the past they have written down part of this equity position. It's possible that there will be more write-downs in the future. It may be that the Falco project in Quebec will never be economic to bring into production.
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