Royalties at Fruta del NortePerusing 43-101 gold and silver production has a 6% NSR attached, which is very high imo, of which 5% go to gubmint. There is also a windfall tax should gold and silver prices exceed certain levels but no detail in 43-101 explaining how high gold and silver prices must be to incur ecuador gubmint windfall taxation and how high these windfall taxes potentially are? Also 50% of benfit(read profits) generated from Fruta del Norte go to gubmint of Ecuador once cost of building mine are paid off after 4.5 years of gold production. Paying ecuador gubmint 50% of profits necessarily will drive up AISC by half of profit margin or about $500 per oz, assuming $1850 gold price, starting once mine paid off. It doesnt appear to me that this increase in cost is included in table 1-7 of 43-101 that show mine operating statistics. I guess it was Kinross that negotiated this crappy deal for LUG shareholders which is worse than deals for building mines in west africa. Biggest beneficiaries of fruta del norte are bankers doing mine finance, that get paid first, land handsomely, and ecuador gubmit that get 50% of profits and have no risk in running mine. Shareholders only get half an apple and bear all risk.