Ann: Royalty Update, page-34

Note 40 annual accounts
" TCM has alleged that the consolidated entity is liable for non-payment of royalties and
related damages, including loss and damage for the royalties payable prior to the date of termination and in
respect of future royalty payments that TCM would have received pursuant to the royalty arrangements with TCM.
The consolidated entity is confident that TCM’s claim in respect of future royalty payments after the date of
termination will be unsuccessful and intends to defend the Claim. Royalties payable prior to the date of
termination have been fully accrued under trade and other payables in the attached audited Consolidated
Statement of Financial Position."

Trade and other payables totaled $21.6 million at Dec 31 2020. The only breakup is in the annual accounts where the total was $17.7 at 30 June, but only $2 million related to trade and other payables and $1.8 million to royalties. The rest relate mainly to operating and development costs or unpaid bills due in 30-60 days. So it is not clear what the dollar value accrued for royalties is. It appears to be less then $15-20 million.
It would help if the company clarified what provision has been made, though effectively I assume any payments need to be made from current cash, cash flow or borrowing.