Ann: Mineral Hill Operations Update and Funding Arrangements-KBL.AX, page-22

The metal which will be streamed to Quintana under the MPA will represent some 24.1 % of payable copper, lead, zinc, silver and gold produced at Mineral Hill until a specified delivery hurdle quantity has been met for each metal (Delivery Hurdle) and then the streaming percentage for that metal will reduce to 12.1%. Under current production forecasts the Delivery Hurdle will be met following approximately 4 years of production. KBL will be paid for metal streamed to Quintana at the prevailing market price for that metal, except that if the market price is more than a specified fixed price then the lower fixed price is to be paid.

These fixed prices (subject to a 1% increase each year starting on the third anniversary of the Commencement Date)

provide the

    

benefit to Quintana and are:

for copper, US$ 0.75 per pound until the Delivery Hurdle of 8,761,905 pounds and thereafter US$ 1.125 per pound.
for gold, US$ 290 per troy ounce until the Delivery Hurdle of 22,452 troy ounces and thereafter US$ 435 per troy ounce.

for silver, US$ 4.00 per troy ounce until the Delivery Hurdle of 234,381 troy ounces and thereafter US$ 6.00 per troy ounce.
for zinc, US$ 0.25 per pound until the Delivery Hurdle of 3,395,238 pounds of zinc and thereafter US$ 0.375 per pound.

for lead, US$ 0.25 per pound until the Delivery Hurdle of 7,338,095 pounds of lead and thereafter US$ 0.375 per pound.


25% of gold and silver that already produced is - 5k ounces of gold and 50k of silver @ cost of us 290 for gold and us 4 for silver
Use your calculator 1250-300= 950 us x 5000 = us 5 m= 7+au m from gold sales for Quintana
+ 50k silver 16-4 = 12 x 50.000= us650 k= 1m au from silver
8m they already covered for Quintana without touching copper zinc lead....
But to cover the loss from giving Quintana gold @ us 290 means another 25% of the gold producing has not to be count if their c1 cost is us 700 now .... How they going to make profit ?
Whats the full cost to get the 30m dollars worth from that pit ?