yep, they pay out 100% NPAT,
Borrowing against the currently unused $350 mill credit facility to buy further, likely lesser quality, royalties would be the worst result.
Re decline in iron ore price, this risk is lessened by the forecast 30% increase in production in BHP MAC b/w now and mid-2024. So effectively hedged risk, with plenty of upside. BHPs development of additional royalty areas should take the production growth even beyond the forecast 145wmtpa, so greater than 30% growth if so
This is why I am here ... if iron ore price were static we get a 30% increase in revenue, which should equal profit if our simple model stays as is, in the next 12 months. Then we get to lock an 8% yield in until CY2045-50
Ann: Calendar of Key Events for 2022, page-15
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