NOTES : from Presentation...
Investment Highlights
•2.70% NSR on the Voisey¡¦s Bay mine forms cornerstone
-One of the world¡¦s largest mineral royalties
-Open pit / underground nickel, copper, cobalt mine-Long life, low-cost producer
-Exposure to Canada¡¦s premier new nickel mine
-Acquisition subject to meeting ordinary closing conditions
•Over 60 other royalties
-Exposure to multiple commodities, geography, project status-Energy component with coal and oil royalties-Diamond royalties on 20+million acres
-Majority located in North America: politically stable regions
•>2,000 other royalties identified and to be investigated
•Growth through deal making / royalty creation
•High margin business: high return on capital
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Concentrates ¡¥000 t1,6121,9442,0162,1312,190Gross Revenues US$ MM$659 $872$738$724$723Smelting, Trans., Refining US$ MM $ 98$129$129$127$126Net Smelter Return:US$ MM$561$743$608$598$5962.70% NSR:US$ MM$15.1$20.1$16.4$16.1$16.1Labrador Tax:US$ MM$ 3.0$ 4.0$ 3.3$ 3.2$ 3.2Net Revenue:US$ MM$12.1$16.0$13.1$12.9$12.9CAD$ MM$16.1$21.4$17.5$17.2$17.2Based on IRC¡¦s Qualifying Report: 0.7500 CAD$:US$ Exchange rate: US$5.00 / lbNi in 2006-2007, 2008 forward: $4.00 / lb NiFirst Quarter 2006 first royalty received
Review of other potential IRC Royalties
Williams (Hemlo) Gold Royalty
Williams ¡VDavid Bell is the largest gold mine in Canada
Williams mine
•0.25% NSR
•Open pit / underground mining
•Teck Cominco / Barrick operator
•CAD$ 500,000 / year IRC NSR
•10+ years remaining mine life
•2.7 million ounces Reserves1
•1.5 million ounces Resources1
•Cash Costs of US$226/Oz1
Summary
•Voisey¡¦s Bay: long-term, low cost
•Provides cash for future growth
•Database of > 2,000 royalties
•High revenues & low costs = High margin business
•Strong management; uniquely qualified
•Royalties are a better way to invest in commodities
•Exposure to commodity prices, exploration discovery and strong cash flow without the risk of varying capital and operating costs
Review of other IRC royalties
Feasibility-stage royalties Property Royalty Operator Belahouro, Burkina Faso2.5% NSRGoldbeltRes. Caber, Canada 1.0% NSR MetcoRes. Hasbrouck, USA 1.5% NSRVista Gold Kubi Village, Ghana3.0% NPIAngloGold Mara Rosa, Brazil1.0% NSRAmarillo Gold Soledad Mtn, USA Capped Sliding NSR Golden Queen Ulu, Canada 5.0% NSRWolfdenRes.
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