worth over 10c based only on fmg royalty , page-6

Slow down enthusiasts!

"FMG has the rights to all iron on the tenements subject to a royalty on production paid to FDL. The royalty is equal to 1.0% of FOB value of ore produced, subject to a cap at 8 million tonnes after which no royalty is payable"

Does this imply that the royalty is 1% of the sale of 8 million tonnes and nothing for the nine million tonne?

On this basis, the royalty is 8,000,000/100 * FOB 100? = 8 million dollars?

Is that math correct? 8 million?

The implication of the above quaotation is that's it!
ie the cap means FMG get 100% of the 9th and every tonne above?


on a different part of the map,
FDL do get 100% on the hamersley tennament, which is part of the conceptual estimate 325-390.

Just how I read it. Could be mistaken, check it out properly.

DYOR