Thanks Joel, yeah, sorry, still got my trainer wheels on with...

Thanks Joel, yeah, sorry, still got my trainer wheels on with this one. I saw the $9m upfront compensation for the Linden project but passed over the royalty.

No mention of any royalties paid to them in the FY23 financial statements (only revenue was $127k from camping fees and licenses!) so I guess they have not produced the minimum 75k ounces there yet. But suppose they produce 20k for FY24 from the Second Fortune Gold operation at say A$3k per ounce and with a 1.5% royalty that indicates an income stream to Warriedar for FY24 of $0.9m so better than a poke in the eye I guess.

I did see that Warriedar has to pay the vendor of the Golden Dragon and Fields Find properties $20 per ounce up to $18m (which at A$3k per ounce would not be not too onerous).

Also, mention of the camping fees reminds me that in yesterday's post I was perhaps a touch too cavalier in writing off the existing production camp. The mill itself sounds not fit for purpose but of course they have all the existing infrastructure and permitting already in place which has to have some value. Though my assumption is that if Warriedar finds anything decent in the Golden Corridor that ore would more likely end up going through either the Checkers mill at Mt Magnet or the Deflector mill than one built onsite and owned by Warriedar.

Final observation before I give it a rest: I reckon slide 7 of the 8 May 2023 presentation was really on-point about how much of the value of a number of the existing mines in the region comes from way way deep (of course to make it worth going deep they need to start off relatively shallow - exhibit A is Never Never). Not sure if the rocks that Warriedar has are similar to the rocks in those other mines so not sure how analogous they all really are.