royalty, page-2

"The royalty at $40.2/t and given further on in the ANN as 8% appears to be far larger than the usual 2% Net Smelter figure that I've seen on many other projects.
Does anyone have a handle on this figure and who it is that will get the royalty revenue stream?"

Griff, this is the simple explanation.
The NT differs from the typical govt royalty rates.
Typically royalty is a smaller amount and is charged on revenue. You have to pay it regardless of how small your profit might be. Not good if you have low margins but would have been better for us with our very high margins.
With NT, it is a higher rate but is only applied to your reportable profits.
Its actually 18% of reportable profit as I understand it and the 8% shown in the study is the equivalent rate calculated as a percentage of revenues.