TNR Gold: Transitioning to a Cash-Flow-Generating Royalty Business
In a recent interview with Proactive, TNR Gold’s (TNR’s) CEO, Kirill Klip, discussed the company’s latest developments and its transition to a cash-flow-generating royalty business. This shift in business strategy is a significant move for TNR, and Klip highlighted the company’s key projects that will contribute to this transition.
Los Azules Copper Project
One of the projects TNR holds royalties on is the Los Azules Copper project in Argentina. This project is considered one of the world’s largest undeveloped copper deposits, containing an estimated 4.5 billion pounds of copper. The project is being developed by McEwen Mining, and TNR holds a 2% net smelter return (NSR) royalty on the project. The NSR royalty entitles TNR to receive a percentage of the revenue generated from the sale of copper produced from the mine.
Mariana Lithium Project
Another project that TNR holds royalties on is the Mariana Lithium project in Argentina. This project is located in the heart of the Lithium Triangle, which is known to hold a significant amount of lithium resources. TNR holds a 3% NSR royalty on this project, which is being developed by Lithium Americas Corp. The Mariana Lithium project is expected to become one of the largest lithium mines in the world, with an estimated production capacity of 50,000 tonnes of lithium carbonate equivalent per year.
Impact on TNR Gold Shareholders
The transition to a royalty business model is expected to generate significant cash flow for TNR. With royalties on projects as significant as Los Azules Copper and Mariana Lithium, TNR shareholders stand to benefit from the revenue generated from these projects. Additionally, the royalty business model provides TNR with minimal operational risk, as the company does not have to bear the cost of exploration, development, or production.
Impact on the World
The transition of TNR to a royalty business model is not just significant for the company and its shareholders but also for the global mining industry. The royalty business model allows companies to participate in mining projects without the need for large upfront capital investment. This can lead to more companies entering the mining industry and contributing to the development of new mines and the exploration of new resources. Additionally, the revenue generated from royalties can be used to fund further exploration and development, leading to the discovery and production of new mineral resources.
Conclusion
TNR Gold’s transition to a cash-flow-generating royalty business is an exciting development for the company and its shareholders. With royalties on significant projects such as Los Azules Copper and Mariana Lithium, TNR is well-positioned to benefit from the revenue generated from these projects. Furthermore, the royalty business model is a significant development for the mining industry as a whole, allowing for more companies to participate in mining projects and contributing to the discovery and production of new mineral resources.
- TNR Gold is transitioning to a cash-flow-generating royalty business.
- The company holds royalties on significant projects, including Los Azules Copper and Mariana Lithium.
- The royalty business model provides TNR with minimal operational risk.
- The transition to a royalty business model is expected to generate significant cash flow for TNR and its shareholders.
- The royalty business model allows for more companies to participate in mining projects and contribute to the discovery and production of new mineral resources.
