RE: RE: RE: RE: RE: RE: deal coming or pullback... A perfect example is LIM, which is in production but is still in its first year of ramping up to full commercial production. LIM sold 385,898 tonnes of product in 2011, but posted a $13 million earnings loss for the 9-months ended Dec 31, 2011 (and a $1.3 million loss for the quarter).
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If LIM had a joint venture partner with a 20% equity stake would that partner be entitled to 20% of the revenue from the 385,898 tonnes sold in 2011? Of course not. The partner only gets paid once there are actually positive earnings and those earnings are distributed.
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This is the disadvantage of an equity stake or a net profits interest. You don't get paid until the joint venture is profitable. (Royalty holders get paid immediately upon sales of product.)