binwood,
With respect, you don't seem to know how a cashflow model works. With a discount rate of 10% p.a. the impact of the royalty payments diminishes over time and the impact on NPV reduces. Yes, there is a positive benefit, but the payment is out of future income - not upfront capital.
The only reason it works is because the company is describing a PROJECT NPV. If the assessment was done at the company level and included the $50m upfront payment (at time 0) then the NPV would be negatively impacted. If the assessment was a whole of company assessment of cashflows, then I don't believe you would be as ecstatic.
You need to know the difference between a project assessment and what is communicated to shareholders and the market.
Ann: Pilbara Minerals Reaches Agreement with Mineral Resources,MIN-PLS.AX, page-201
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