Commodore, I agree with you 100% and I don't see how a binding MOU can be reached without both parties knowing exactly what royalty will be paid for the product. No enterprise in the world would enter a binding deal without a firm indication of price.
There is no doubt in my mind that IOH and FMG have agreement on the exact details of the royalty scheme.
On the other hand, I do have faith in Alwyn. He has not put a foot wrong to date and I don't believe we are about to be skewered by the details of this deal. Certainly it would have to fly with our largest shareholder, and unless Kerry has suddenly lost the plot I think the royalty scheme is probably going to look very good albeit dependant on medium-long term iron ore pricing.
I'm assuming that the exact details of the royalty scheme will be released upon finalisation of contracts etc. and I guess I'm comfortable waiting for now, knowing that our management team is working in our best interests.
I do believe the share price will run to above $2 upon release of the royalty scheme, although if she keeps creeping like this on a daily basis she may be there before formalisation of the deal.
IOH Price at posting:
$1.67 Sentiment: Hold Disclosure: Held
