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1.2¢ estrella resources limited

Ann: ESR secures Strategic Investment to advance Timor-Leste, page-31

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GKeden

3,379 Posts.

210

02/09/24

19:37

Post #: 75494820
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Originally posted by GKeden: ↑

Hello. Yes. Its difficult to understand the royalty. Say ESR produced 500,000 tonnes over 5 years sold for US$300/t. The royalty might be US$375,000. That's a large gift for investing $350,000.

Say the investor invested $5M and ESR produced 500,000 tonnes over 7 years sold for US$300/t. The royalty might be US$1,050,000. That's a reasonable bonus for investing $5M.

But the 0.25% royalty for investing a mere $350,000 is difficult for me to understand.

On and from the Tranche 1 Completion Date, the Company
grants the Subscriber (or its nominee) a 0.25% gross revenue
royalty on the sale of manganese ore extracted and
recovered from the Timor-Leste Project (“Royalty”). The
obligation to pay the Royalty continues for 5 years from
commencement of first production. In the event the
Subscriber subscribes for and is issued $5,000,000 worth of
Shares under the Tranche 2 Subscription, the percentage of
the Royalty will increase to 0.5% and the term of the Royalty
will increase to 7 years from commencement of first
production.

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Hello. The above said, 100,000 tonnes per annum is a tiny operation. Say the mine ran for 50% of year. This would amount to 7 x 80 tonne trucks per day.

ESR Price at posting: 0.6¢ Sentiment: None Disclosure: Held
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Last 1.2¢		Change 0.000(0.00%)		Mkt cap ! $21.81M

Open	High	Low	Value	Volume
1.2¢	1.2¢	1.2¢	$11.32K	943.2K

Buyers (Bids)

No.	Vol.	Price($)
1	530000	1.1¢

Sellers (Offers)

Price($)	Vol.	No.
1.2¢	467323	4

View Market Depth

No.	Vol.	Price($)
1	530000	0.011
5	5813000	0.010
3	2332122	0.009
1	500000	0.008
1	1000000	0.007

Price($)	Vol.	No.
0.012	467323	4
0.013	2717341	7
0.014	3355946	8
0.015	2803155	8
0.016	2274007	3

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