Duke Royalty Share Chat (DUKE)

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Duke Royalty	LSE:DUKE	London	Ordinary Share	GG00BYZSSY63	ORDS NPV

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	+0.00p	+0.00%	44.50p	44.00p	45.00p	44.50p	44.50p	44.50p	343,210	07:32:58

Industry Sector	Turnover (m)	Profit (m)	EPS - Basic	PE Ratio	Market Cap (m)
General Financial	0.0	-1.4	-0.2	-	88.07

Duke Royalty Share Discussion Threads

Showing 51 to 75 of 75 messages

Chat Pages: 3 2 1

Date	Subject	Author	Discuss
08/8/2018 12:43	So I have taken a slug this am at just under 45p.	melody9999	Read Full Thread Reply
08/8/2018 12:10	Substantial risk to all companies in the event of a global recession. DUKE are bringing the concept from the US / Canada - so tried and tested. I also believe their partner selection criteria is robust. Must be encouraging that Blackrock have 10% ie 20M share or £8.8M invested.	melody9999	Read Full Thread Reply
17/7/2018 14:58	I think there must be a substantial risk to Duke in the event of a global recession. The nearest comparator I can think of is Intermediate Capital. They specialise in Mezanine finance, ie something between straight debt and equity, very much like Duke IMO. They did well for years but were hammered by the financial crisis. ( I have bought and sold them 3 times over the years and luckily wasn't holding them in 2008) In terms of company specific risk, each of the investee companies is taking Duke's money to make a change in the business, such as make a capital investment for expansion. Such changes do bring risks. I was having a quick look at the Alaris Royalty website and at their latest presentation: https://www.alarisroyalty.com/upload/media_element/attachments/266/Alaris,P20Investor,P20Presentation_May,P202018_FINAL,P20-,P20Web,P20version.pdf.pagespeed.ce.mlqZmRrrrx.pdf Alaris have exited a number of investments and made substantial losses on 3 although the successes vastly out weigh the losses. Worth a look.	stevie blunder	Read Full Thread Reply
17/7/2018 14:47	dsct, Thank you for your frank reply. I only recently took up a small position in DUKE having spent about a week going through the RNNs' and entering all in my database. What is still to be done is checking the Partners. I have seen DUKE mentioned on other bbs and believe that it is not a bad idea to clear the air for the doubters .... .... and then we can perhaps leave off till the share consolidation which will no doubt be necessary sometime. GLA, P.	piedro	Read Full Thread Reply
17/7/2018 13:57	Firstly, apologies to the readers here for turning this previously quiet board into a near daily-posting situation - The lack of posts, and those that were here, being informative and useful was one (minor) reason I invested ! lol @Piedro I first looked at DUKE in April - an article in Shares magazine I believe, but although interested, never researched any further until June. A 'too good to be true' attitude, I believe is a benefit when investing, to stop over-zealous or impulsive purchases - speaking from experience and looking at some of the dogs in my 'folio ;^) I think the two main downsides for DUKE could be: 1) - Failure of one (or more) of their Royalty Partners (RPs). The ever-increasing diversification should lessen this impact. I think it will happen at some stage, but their selection criteria appears quite robust. I have read investor's concern about this while they only have/had 4 RPs. 2) Global recession - Increasing the possibility of 1) above. More potential RPs but with obvious added risk(s). Knock-on effect when trying to raise funds. As far as I'm aware, the placing is with new and existing Insitutional/large investors. This may be for speed/cost reasons, but maybe one day there could be a placing or rights issue for all shareholders. The £2m costs of the £44m placing (approx. 5%), plus the 44p placing being a 7.6% discount to the share price, equals a 12.5% one off-cost. I've no idea if this is good, bad or otherwise in comparison to the norm.	dsct	Read Full Thread Reply
17/7/2018 10:02	dsct, I am also impressed with the business model, but wary as seems "too good to be true" Should we not be receiving a placing document to subscribe for new shares?	piedro	Read Full Thread Reply
16/7/2018 12:33	@Piedro, As I said in my post #40, I presumed they'd be making a placing to enable them to invest more/faster, but expect them to be self-funding at some point, unless they have a large and/or high quantity of investment(s). If they have £80m invested with Royalty Partners, at 12% p.a., returning £800k per month, less costs of say £50k p.m., so every 4 months, they can self-fund a £3m Royalty, which would also increase their income stream. As a bonus, I'm quite pleased with the near 10% share price rise since investing less than a month ago :o) As you may tell, I'm impressed with their business model, especially so when reading the positive reports from their Royalty Partners.	dsct	Read Full Thread Reply
16/7/2018 10:55	Chill - good rise post a placing tends to be a very good sign	davr0s	Read Full Thread Reply
16/7/2018 09:57	What does "Upon full capital deployment" mean? The placing capital? And then they will be back again for more money For more capital to deploy. It is nice to have a hefty dividend but as noted above, placings can be expensive and the free cash could be reinvested. AIMO.	piedro	Read Full Thread Reply
16/7/2018 08:57	"Upon full capital deployment, the Board believes that Duke will be able to increase the Company's dividend to a near double digit yield."	stevie blunder	Read Full Thread Reply
16/7/2018 07:28	44p is good going, but agreed re size - 100m more shares, and £2m in costs it seems (raising only £42m net).	spectoacc	Read Full Thread Reply
13/7/2018 18:59	As a recent investor, having bought in during the last week of June, I received my first divi a couple of days ago - very nice. The small share price rise since purchasing has also been a bonus. The placing today, I presumed would happen, from what I'd read during my DYOR. More diversification - Geographical and Sector. A small(?) discount (7.6%). Existing and new investors taking up the placing. £200k from Directors taking part in placing. A majority of proceeds already earmarked. Repayment of £3.5m loan - I'm pleased about this, as this was, I though a negative. Long term incentive plan issued equivalent of just over 1% of number of shares in this placing. I presume we should (could?) be getting RNS holding notices shortly after the placing. Both increase and decrease in holdings percentage. All in all, this seems according to plan, and I can't see any negatives, so this should hopefully plod on, distributing an increasing divi to us holders. Time for me to top-up already ? lol GLA	dsct	Read Full Thread Reply
13/7/2018 18:05	Not crazy.They launched to prove the N American model would work in Europe and have proved it does so now ramping up.	igbertsponk	Read Full Thread Reply
13/7/2018 17:07	£44m placing!! Thats crazy when MCap is only £52m	discojames	Read Full Thread Reply
10/7/2018 15:10	Duke Royalty Limited £DUKE - big dividends and the appeal of royalty investment. New Premium Research article from Investors Champion tells you more about this unsual investment opportunity	investorschampion	Read Full Thread Reply
03/7/2018 21:25	Hi piedro Hopefully this will be a bit less of a wild ride than with APF :) The presentation linked in the header talks about a £46 million pipeline of deals, so a lot of shares to be issued Hopefully at ever higher prices as we get some “ yield compression “	stevie blunder	Read Full Thread Reply
03/7/2018 08:33	Hello Stevie and others, I bought my first splurge yesterday This appears to be a "too good to be true" company but hopefully not. Income should be reaching £4m p.a. Now that they have spent all their fundings, I presume there will be further placings for future royalties.	piedro	Read Full Thread Reply
29/6/2018 21:50	@Stevie Blunder Thanks for your replies - very informative. I did go through their website - Who, what, when, how etc. and when looking at the media section, recalled reading about DUKE in the Shares magazine in April and thinking I should DYOR as it looked interesting. Anyway, I've now had a dabble, pre-divi. Initially, I was more interested in the divi return than potential share price increase, but it looks as though the latter could improve as they get more Royalty Partners (even if they have to issue more equity), due to their near-fixed costs.	dsct	Read Full Thread Reply
25/6/2018 10:57	I missed this May presentation on the website http://www.dukeroyalty.com/~/media/Files/D/Duke/documents/investor-presentation-may-2018.pdf?pdfdata=1	stevie blunder	Read Full Thread Reply
25/6/2018 09:10	Hi Dsct, Ill do my best to answer your points, however you seem do have done your homework, so you probably know as much as me :-) I wouldnt class the funds as loans for the simple reason, as you state, they are not repayable. The agreements entitle Duke to a % of turnover of the underlying business assessed annually and subject to a collar and cap. ( the collar and cap is not a feature of royalties in the mining industry so the analogy with mineral royalties is not an exact one and may be misleading rather than helpful) The effective interest rate of 13-14% may seem high, but is not out of line with mezzanine financing options. Looking at the announcement of the first Royalty with Temarca:- "The term of the Financing is for a period of 25 years, will be senior secured and Duke has provided Temarca with a buyback option." Without seeing the paperwork relating to the agreement, I couldn't say what the exact meaning of "senior" is in this context, also like you I would imagine that the buy-back would rely on a net present Value calculation It seems that they are able to tailor the agreement to each partner, for example they are taking an equity stake here: https://www.investegate.co.uk/duke-royalty-limited--duke-/rns/new-royalty-finance-agreement/201803050700056117G/ · 2.5 per cent. equity interest in Trimite granted at no additional consideration Again this is not out of line with mezzanine finance. So would they be exposed in a recession? Yes is the answer, but they seem to be investing in businesses that have survived at least one recession and are relatively stable. AS for the recent loan, I dont know the reasoning behind that, perhaps the hope to get a placing away at a higher price and cause less dilution later in the year? or they plan a bigger placing rather than a succession of smaller ones which could be more costly in advisors or brokers fees. your guess is s good as mine. I do think this is quite a risky investment and only have about 1.5% of my folio invested. All the best	stevie blunder	Read Full Thread Reply
23/6/2018 19:43	I've been looking into DUKE, and have a few questions/notes and I'd be grateful for any answers to, or confirmation that I'm thinking along the right lines. It appears these Royalties, are a loan in all but name, but as a senior security, presume they have seniority (unsurprisingly lol) over other loans, in the event of a company going bust. i.e. The claims against a companies assets being Taxman, Senior security, (bank) loans, creditors and finally equity holders. I can see the idea behind the equity fundraising to enable them to provide investments at a faster rate, but not sure about their recent loan, at what appears a high interest rate. I understand the loan is only a short term (1 year) term, and hopefully, once up to a certain level of Royalty Partners, they'll be able to self-fund these investments, unless there's a rapid influx for some reason. Does anyone have any thoughts on how DUKE will cope if there's a general economic downturn? I understand they're diversified with respect to sectors, geographies etc., but would this situation be beneficial (more potential Partners), or detrimental (more defaults on repayments). The investments are 25 or 30 years (or perpetual), and they receive monthly returns of approx. 1%, so quite a nice return, for what should be a near-fixed expenses base (salaries, tax, fees, etc.) They state on their website "no repayment of principal at end of life of royalty" - Why is this ? Regarding the buy-back option incurring a penalty - I presume this is based upon the remaining term, so if a Partner wants to repay the principle after 10 years, a calculation is made to see how much DUKE would have been repaid over the remaining term, and a figure agreed based upon that. I like the fact they're the first-mover on this within the UK, but wonder what's to stop other competitors jumping in if they see it becoming a success, or possibly those in Canada/USA expanding to the UK. IF I do decide to have a dabble on DUKE, my next decision will be pre- or post- the divi date next week. p.s. So nice to have an informative, ramp/de-ramp free board on ADVFN ! Just 30 post in a year, although I may have now screwed that up !	dsct	Read Full Thread Reply
14/6/2018 10:51	Looks like they wanted to clinch an exclusive deal on this investment in a hurry and with no money in the coffers,were forced to take out a short term loan to close the deal quickly.There will be a cash call shortly no doubt but fully justified. Id be happy to subscribe given a chance!	nurdin	Read Full Thread Reply
14/6/2018 08:56	Looks like an excellent investment.However not sure about the financial logic to fund it...	nurdin	Read Full Thread Reply
26/5/2018 09:29	This came up on my Google News feed: https://www.professionaladviser.com/professional-adviser/analysis/3033004/five-income-incubators-from-the-small-cap-market Five 'income incubators' from the small-cap market After completing due diligence on the underlying royalty partners, DMI has taken a 5.16% position in the equity of Duke Royalty. This is a significant position, equivalent to around 4% of the portfolio. Our forecasts suggest that we can expect an initial yield of 6.3% growing at a compound rate in excess of 30% over the next two years, resulting in a yield on cost of 8.8%.	stevie blunder	Read Full Thread Reply
09/5/2018 09:26	Creeping up nicely.	nurdin	Read Full Thread Reply

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