a wise owl told me, page-3

Hi tewks,

at this point I have no idea of the royalty figure other than comments from the company saying that MT has done exceptionally well.

When speaking to MT he used analagies which included figures of around 5 - 8% however that is not to say that that is where the figure is.

So, the question Beggs.....what is exceptional for this type of project and industry.

When I asked him about figures of the 60ktpa plant he said he is not allowed to comment....BUT....he referred me to news a fews years ago and brokers reports that disclose figures on the 60ktpa....they look very good.

Once the 3000ktpa plant is built BHP could choose to go 60ktpa (I would have thought they would go much much bigger) and if so it will almost certainly be in the Basin.

If APG go the 60ktpa from company comments I think APG will JV it with BHP and it will be smack bang between the Ginko and the Douglas (BMX/Cristal and Iluka)


It will not be a royalty stream as it is not a BHP deposit and I do not think APG will let BHP fund it ALL as APG now have insto's wanting to throw money at them.

The Royalty will only apply to BHP projects where BHP own the deposit and the APG technology is used.

The position i referred to above is ideal due to road and rail transport. It is also ideal as ILU are puting their ilmenite back into the ground (which the victorian mines dept are not happy about) and instead they could sell it to APG for around $30/t.

Of course the plant can also upgrade the ilmenite from the Ginko at the same time....BUT....they just may crack the agglommeration and all the ilmenite will be from the wim150.

Either way, by the time the 3000ktpa plant is built we would have had a One Steel announcement, probably another steel anouncement, ongoing BHP announcements/updates a great gold announcement and maybe something else so the mind boggles as to where the sp will be when they announce the turning on of the 3000ktpa plant.

and....I do have to agree with g64.....the future is very bright!