Hi mh,
thanks dan..that piece helped explain rgld, which IS hard to understand, and although ive been mentioneding it since last fall, and have traded it well, usually <G> i never quite understood it fully, after your link and the one i posted from Lance Lewis it is much clearer to me what they do, how they do it, etc.
I kept the other 2 trading positions which are just slightly under water overall, that may change today....i also dont see all the political-race risk in S african miners many do, at least not short tern. although the rand situation is a problem.
Fwiw, I don't own any RGLD (yet <gg>)because, until now, I've never really understood it's royalty based biz model either.
Methinks I should thank that gal from Barron's for penning that 'poison pen' article that elicited the flood of responses from the RGLD defenders that spelled out the royalty schedules in such fine detail. RGLD's theoretical revenue numbers are spectacular when extrapolated with my initial high triple figure PoG objective.
I see somewhat more potential S. African political/race risk than I did a few months ago because the SA Gov't now seems more committed to keeping the details behind closed doors and that to me is usually a cause for concern. In any event, the five/ten year time frame for the SA mining companies to implement whatever comes to pass should tend to mitigate any particularly onerous changes to the way the miners operations.
I find the continued and future potential strength of the SA Rand vs the US Dollar to be particularly bothersome and is the only factor keeping me from considering adding to my dwindled SA mining positions.
Regards,
Dan
Dan 
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