Any thoughts as to what the new royalty rate schedule for Queensland may be? And when it will take effect? I think the change in the royalty, which will be announced with the Queensland budget on Tuesday, is the reason the SMR share price has been hit more than other coal companies recently.
Repeating what someone's already posted, here's the current schedule:
- Up to and including $100 – 7% of value
- Over $100 and up to and including $150
- First $100 – 7% of value
- Balance – 12.5% of value
- More than $150
- First $100 – 7% of value
- Next $50 – 12.5% of value
- Balance – 15% of value
I think this means that the rate is 7% if the price realized by SMR is $100/tonne or less. And 12.5% if the price is between $100 and $150. And 15% if over $150/tonne.
My wild guess is that they'll impose a couple of new bands with higher royalty rates at higher prices. No one appears to be even speculating as to the new rates. That appears to be a closely guarded secret. This makes me fearful the increases will be higher than people expect -- maybe the government is trying to ward off lobbying by the miners and mining communities by being tight lipped. Hopefully that's all more than priced into the share price though, or at least I'm betting it is.
(20min delay)