Hang on Miningnut, work with me here.Where are you getting your...

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CtMonteCristo

110 Posts.

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20/05/20

16:58

Post #: 44732295
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Originally posted by miningnut: ↑

I was hoping that this conversation about silver would just go away so let's kill it now.
NCZ received $2.04mil in net smelter receipts for silver in the March20 quarter and from this paid $1.77mil in silver royalties to Varde so kept the grand sum of $270k.
It is important to note that Varde are paid 30% of PAYABLE silver, that is before treatment charges that come in the form of free metal calculated as 3 ozs per kt of concentrate. This charge works out at 59.2% of PAYABLE silver.
So again Varde's royalty is worked out before the treatment charge. In the end, Varde gets 86.75% of the net smelter receipts for silver and NCZ gets 13.25%.
It's petty cash that NCZ currently earns from the silver content but at least it's paying part of Varde's finance charges - if they hadn't of got that then they would be charging a higher interest charge.
Varde's first facility limits their take of their silver royalty to $US5mil that should be reached by March next year but in the second facility the 10% royalty seems never-ending.

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Hang on Miningnut, work with me here.

Where are you getting your numbers from? What sort of creating accounting are you cooking up here.

Lets look at the Dec19 Quarter first

From the Dec19 Quarter announcement I get ~300000 ounces of silver looking at 162g/t from 57000 t of concentrate.

Last edited by CtMonteCristo: 20/05/20

NCZ Price at posting: 25.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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