Teck’s undisclosed royalty worth billions on Barrick’s Fourmile could stymie IPO plans
- •As someone who's been looking at precious metals exposure for my retirement portfolio, this kind of hidden risk is exactly what keeps me up at night.
- •I remember back in '08, a junior miner I was invested in had some weird legacy claim issue pop up that absolutely tanked their valuation.
- •It’s a good reminder that you really have to dig deep into the S-1 filings and historic agreements.
Hey everyone, just read this article on Mining.com about Teck and Barrick's Fourmile project, and man, it’s a doozy: https://www.mining.com/tecks-undisclosed-royalty-worth-billions-on-barricks-fourmile-could-stymie-ipo-plans/
So, apparently, Teck holds a 10% net legacy profits interest right over a "meaningful" part of Barrick's Fourmile discovery. Analysts are saying this could be worth billions and potentially really throw a wrench in Barrick's plans if they were looking to spin off or IPO some of their assets. As someone who's been looking at precious metals exposure for my retirement portfolio, this kind of hidden risk is exactly what keeps me up at night. I remember back in '08, a junior miner I was invested in had some weird legacy claim issue pop up that absolutely tanked their valuation. It’s a good reminder that you really have to dig deep into the S-1 filings and historic agreements. Teck not disclosing this until now is quite something, especially given the scale. Makes you wonder what else is out there, right?
What do you all think about this? Does this change your outlook on Barrick at all, or Teck for that matter? I’m holding some Teck for its copper exposure, but this just adds another layer to their asset value I hadn't fully considered. Interested to hear your takes, especially if anyone has more experience with these sorts of legacy mining claims!