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Eagle Royalties Holds Royalties on Thirty-Eight Metals Projects in CanadaBob Moriarty It won’t be news to any of my readers but the penny dreadfuls have been hammered lately in spite of a new record high for gold a month ago and the highest price for silver since 2011. Clearly something is sucking the money out of the resource industry. I think it’s the cliptocurrencies. I also believe they have topped or are about to. The Dalai Lama just came up with his own version. It has been said that they don’t ring a bell at the top. But I think they did. In March of 2000 I read on the internet that inmates in jail in Baltimore, Maryland were holding stock picking contests. Every market will climb until it runs out of buyers. In March of 2000 the Nasdaq ran out of buyers and began a brutal crash. The clipto market has been on a tear lately with some of the 10,000 variations of Bitcoin rocketing 152% higher in just the last month. When the clipto market returns to earth as it will someday that money is going to have to go somewhere. One of the easy bets is that some is going to flow back into the junior resource market. While gold touched just over $2800 a month ago, the DSI never got above 88. That is not a top. We had a correction and gold/silver are back showing renewed strength again with the DSI hovering at 60 for gold with 41 for silver as of last Friday. We are in the midst of Tax Loss Silly season for the next three weeks or so. A lot of quality shares are on the bargain table just waiting for someone to snap them up. One I like a lot and own is Eagle Royalties (ER-C), a spin off of royalties from Eagle Plains. At Friday’s close, Eagle Royalties closed at $.09 giving the company a $5.14 million market cap with over $3.5 million in the bank and a $1.25 million promissory note due to them. So with a $5.14 million market cap, if you subtract the cash and cash equivalent you have a company with 38 individual royalties that the market give a $39,000 value to entirely. That’s absurd. The flagship royalty is their deal with the AurMac deposit of Banyan Gold with different royalties of 2%, some at 1% and 0.5% all with no buyback provision. Banyan shows a 7 million ounce gold resource at 0.63 g/t gold. If we were to use a 1% royalty figure and presumed the company could only mine 4 million ounces of the 7 million in the 43-101, at $2700 gold, that 1% would bring in $108 million in USD. Use any figure you want and you will realize Eagle Royalties is dirt cheap. In June of 2024 the ER management team sold 12 non-core uranium royalties for $3.75 million but retained a total of 38 core royalties. That makes an enterprise value of $39,000 look absurdly wrong. The company is only 18 months old, going public in May of 2023 by spinning off 1/3rd of a share of ER for each share of Eagle Plains. The initial financing was done at $.30. Eagle Royalties is an advertiser. I participated in the initial spin off of shares from Eagle Plains so that is how I got my shares. I am naturally biased so do your own due diligence. Eagle Royalties ### Bob Moriarty 321gold Ltd |
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