GBG 0.00% 2.9¢ gindalbie metals ltd

Roberto,Mining contracts typically have a Minimum Take Or Pay...

  1. 79 Posts.
    Roberto,

    Mining contracts typically have a Minimum Take Or Pay (MTOP) component so that the contractor going in has at least enough income to warrant their commitment. KML will be paying whether they utilise a little or a lot upto a certain point of production then it reverts to a cost on usage.

    Think of the many and various components going in.

    The obvious: Mining services, power, trains, port.

    The less obvious: Messing, accomodation, cleaning, flights.

    As well as a core of employees on healthy wages, whether they are flat out or standing around.

    cheers
    Surly
 
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