Ann: Second High-Grade Copper-Gold and Base Metal Zone Discovered, page-28

Does anyone have details on the royalty?

I know: Talisman Mining Limited has a royalty agreement with the Wonmunna Iron Ore Mine, which is operated by Mineral Resources Limited. Under this agreement, Talisman is entitled to an uncapped 1% gross revenue royalty on all metals produced and sold from the mine. This means that Talisman receives 1% of the total revenue generated from the sale of the iron ore, irrespective of the quantity produced or the market price of iron ore.

But..

• Hypothetically, if TLM was to pay this dividend as a royalty, the 7MAUD royalty revenue would account to about 14% dividend return to shareholders at a 50MAUD market cap.
• If they did this, SP would balance such that it would equate to dividend percentages of other royalty companies (e.g. Deterra pays about a 7% royalty every year). So Market Cap of TLM would be fair value on revenue at 100MAUD Market Cap such that the dividend return is 7%.

So why is this revenue being discounted so much TLM market cap is at 50M. Is it purely because the money is being spent in the ground instead of in peoples pockets? With the rip n tear deposit and upside of Durnings, it seems miss-valued.

So, is there something about the royalty i am missing? Are revenues expected to decline from this in the near term or medium term? When does that royatly tenement run out of ore. Pretty key questions for anyone investing so if anyone knows might be good to spread the info as its hard to dig up...

Cheers