Hi Slyxer,
So, as an example, if the tonnage was 2 million for the quarter with a FOB of $50 per ton average, (total $100 million), then 1% of that ($1 million) is paid as a royalty. If you to have 4 quarters (for the purposes of the exercise) that were the same tonnage and FOB, then $4 million is paid out for a $20,000,000 loan or 25% interest rate for the year.
If the tonnage is higher the more royalty is paid and conversely if the tonnage was less then less royalty is paid.
Hi Slyxer,So, as an example, if the tonnage was 2 million for...
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