I don't think anyone will be able to tell you. It is up to EGR to determine if they buy back the royalty,
I am sure once FID is made and the company has secured its finance, lease and offtake agreements. Andrew and the board will be able to calculate is it cheaper to pay Mr Frey $2mil AUD or pay him the royalty of x% for the 20 years of operation.
EcoGraf Kwinana is expected to have annual revenues of US$71.5mil ($100mil AUD) and EBITDA of $58mil AUD per year with an operating life of 20 years,
$2mil in payments works out to be $5 dollars per tonne produced over the life of the operation,
Based on Annual revenues EGr would need to pay a royalty of 0.1% to match the upfront cost, or if it is based on the EBITDA the rate would need to be 0.17%
If we secure the royalty and the IP for AUD$2mil, it will be extremely cheap if we build multiple plants or use it to purify black mass.
Thanks for pointing out another positive GL77.
EGR Price at posting:
6.7¢ Sentiment: None Disclosure: Held
