Hi roblun,Thanks for the detailed info, doesn't look like the...

Hi roblun,

Thanks for the detailed info, doesn't look like the annual ML fees are particularly onerous.

No mention of the compensation costs for "exclusive use", maybe a multiple (x10? = A$400/h?) of the annual ML fees between land clearing, mining, tails deposition, restoration and handing back (5 years turnaround?) for the areas being actively mined. No idea what a local farmer would typically expect to make per hectare/year, but I believe Uganda is generally quite fertile.

You would have to assume that the gov. would grab the maximum 15% free carry, particularly if it is making money! Royalties of 5% of the "gross value" may be a challenge depending on your gross revenues/ASIC (i.e. net profit margins). 50% profit margins would equate to 10% "net" royalty, 25% profit to 20% "net" royalty etc...so a bit steep unless you have very high margins... but generally you would be allowed to factor in some costs before calculating royalty $ figure.

I believe a revised DFS for Makuutu is in the works so all these details should be factored into a revised NPV, but you will need to be demonstrably profitable at realistic RE pricing, so still profitable after factoring in a reasonable discount to some of the fanciful (IMO) RE pricing forecasts from the likes of Adamas.

Anyway GLTAH, I'll be watching with interest!