so using net prices AVB should make $6000 profit per ton on...

so using net prices AVB should make $6000 profit per ton on copper and say $600 profit per once of gold in the first few years.

Gold - 7000*600*.25 = 1050 000
Copper - 12000*6000*.02 = 1 440 000

gives a royalty of 2 490 000 in first year

In year 2-3 profit will decrease to say 4000 per ton of copper and 300 per ounce of gold as production is started on stage 2.

Gold - 23333*300*.25 = 1 749 975
Copper - 40000*4000*.02 = 3 200 000

Total royalty for year 3 could be 4 949 975.This means blackrock could have their money back within 3 to 4 years while they collect a royalty for the life of the mine. quite a good investment for blackrock