Comments on: “Nevada’s Filthy Rich Royalties”

By: Malcolm Thorpe

Malcolm Thorpe — Sat, 09 Aug 2008 14:37:59 +0000

Remember that quote from Mark Twain, “A Gold Mine is just an hole in the ground with a fool on top”.

By: Rod D

Rod D — Sat, 22 Mar 2008 20:23:47 +0000

For those interested in monthly income, instead of mining royalties, consider Algonquin Power Income Fund (APF-UN.TO), trades on the Toronto Exchange, available through most U.S. discount brokers, has paid $.92 per year (but paid monthly) dividend since 2001 and has an current annual yield of about 13%. Why like mining – it generates hydroelectric power, wind farm power, burns solid waste to generate power and operates 17 water utilities in the U.S…..all more stable than mining!

By: Tony V

Tony V — Fri, 21 Mar 2008 22:21:14 +0000

I recently bought the Oil Report for $49 to see if it would compliment several other utility and oil newsletters I receive now. The “Nevada Royalties” report was included and I was intrigued. However the report states having a “program” for these royalties that will make you “rich” but give no clue whatever as to what that “program” is. He touts Royal Gold and International Royalty that pay no dividend. Royal Gold is paying out a quarterly dividend of .26 a quarter. This was in stark contrast to the teaser ad that I saw for a “Mr. Wilkes” who was receiving payouts each month from January to September (no year noted) of amounts ranging from $293 to a $12,000 single payout. My calculations figured a person would need an investment of roughly $94,000 at $29.00 per share (RGLD’ s price earlier this week) to receive the monthly payout enjoyed by Mr. Wilkes as shown in that teaser advertisement. The Jan. payout would mean that Mr. Wilkes needed to own 3271 shares of RGLD, but still leaves a huge question unanswered: the Sept.12th payout of $12,899.46. Any thoughts on the validity of the monthly payouts in the teaser ad? By the way they provide two examples in the ad with similar dollar results.

By: StockGumshoe

StockGumshoe — Wed, 12 Mar 2008 15:39:12 +0000

James, neither I nor the newsletter writers can give you individual advice. I can tell you that royalties are payments that go TO Franco-Nevada from the mine operators, shareholders don’t get royalties directly. Franco-Nevada has announced that they plan to pay a modest dividend of about 1.5% based on the amount of cash flow they get from the royalty-generating investment they’ve made in gold mines and other resource extraction activities.

By: James

James — Wed, 12 Mar 2008 15:22:33 +0000

I’m working a not so great paying job right now. Would it be wise for me to invest $1,000 in Franco Nevada? I realize the risk but how exactly do the returns work? Once you sell, you get the cut of royalties? Most of the things i’ve read sound too good to be true. I need answers.