Slow down enthusiasts!
"FMG has the rights to all iron on the tenements subject to a royalty on production paid to FDL. The royalty is equal to 1.0% of FOB value of ore produced, subject to a cap at 8 million tonnes after which no royalty is payable"
Does this imply that the royalty is 1% of the sale of 8 million tonnes and nothing for the nine million tonne?
On this basis, the royalty is 8,000,000/100 * FOB 100? = 8 million dollars?
Is that math correct? 8 million?
The implication of the above quaotation is that's it!
ie the cap means FMG get 100% of the 9th and every tonne above?
on a different part of the map,
FDL do get 100% on the hamersley tennament, which is part of the conceptual estimate 325-390.
Just how I read it. Could be mistaken, check it out properly.
DYOR
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flinders diamonds limited
worth over 10c based only on fmg royalty , page-6
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