Does Callinan's 777 royalty apply to the precious It was stated at the AGM that it does, but the 777 43-101 report says differently.
From page 20, emphasis mine.
The NPI is calculated as 6 2/3% of the NPI cash flow which is defined as follows:
• Revenue from sale of copper and zinc concentrate, less:
o Mining costs (operating and capital)
o Milling costs (share of Flin Flon concentrator)
o Administration charge (11% of mining and milling costs)
o Mill Stay-In-Business charge (4% of milling)
It goes on to describe the streaming agreement with SLW
On August 8, 2012 Hudbay entered into a precious metals stream agreement with Silver
Wheaton Corp. for 100% of payable gold and silver from 777 Mine until the latter of
December 31, 2016 and satisfaction of a completion test at its Constancia project in Peru
and thereafter 50% payable gold and 100% payable silver. Hudbay will receive cash
payments equal to the lesser of the market price and US$400 per ounce for gold and
US$5.90 per ounce for silver, subject to 1% annual escalation after three years.
If they're SUPPOSED to be due royalties from the gold and silver, they should sue! Wait.
Well... they should at least conduct an audit. Wait.
It's always "wait."