value of the 2 percent royalty , page-13

Not sure what you are getting at Jantimont.

GDN has handed over title to their Johnstone Range lease for $3m. They retain a 2% royalty on the fe and other minerals.

The announcement calls it a 'non-refundable prepayment of future royalty payments', so in effect, if Cliffs never produce enough fe to cover the original upfront royalty payment of $3m then GDN still get to keep the money. If Cliffs produce above the pre-payment threshold, then GDN start receiving the 2% royalty.

So how much mineable fe does the Johnstone Range lease have? Who knows, but if it is more than say, 1.5mt (estimate only, based on 1.5mt x $100pt average price x 2% = $3m) then GDN will start to get the additional royalty payments.

That's my understanding of the announcement. Had it been a sale of their lease, plus a royalty then they would've been entitled to a 2% royalty from the first tonne of fe sold.

Does anyone else think differently?