Hi Hummmsssss...
I'm pleased that you looked into "typical" royalties. When I assumed 5%, then others thought I was overly optimistic, then Earnie presented figures based on what looked to be around 1%..... I thought that I may be missing the mark by a long shot. My assumption was a rough stab at what I thought would be reasonable if there was a significant difference in profitability for an operation, so I'm pleased that it landed in the middle of your straw poll.
I would hope that any royalty would be based on the technical advantage in capital and/or production efficiencies. It would be illogical to have a "one-figure-fits-all", since there are clearly huge differences between one technological innovation and the next. You would think that the relevant parties would do some sort of cost/benefit and insert a royalty in between that bridges the range of alternatives while still providing mutual benefit. That's how I'd try to come up with a figure, anyway.
7% does have a nice ring to it though... :)
Soooo.... we have 1% at one end and 7% at the other so far. Even though either figure should give a SP above $0.15, it shows that the market really does need something to hang its hat on.
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