RNC Restructures Royalty at Higginsville, my calculation RNC Restructures Royalty at Higginsville Gold Operations to Unlock Significant Production Potential and Lower Costs
My calculation, in AUD & excluding the specificity of « A flat 2% NSR on ounces sold in excess of 10,000 per annum, which will become payable after the first 37,500 ounces are sold from HGO production. »
50,000 ounces sold
Old royalty:
50,000 * 2208 = 110,400,000 * 1.75% = 1,932,000
2208 * 1340 = 868
868 * 50,000 = 43,400,000 * 50% = 21,700,000
Sum = 1,932,000 + 21,700,000 = 23,632,000
New royalty:
10,000 * 2208 = 22,080,000 * 1.75% = 386,400
868 * 10,000 = 8,680,000 * 27.50% = 2,387,000
40,000 * 2208 = 88,320,000 * 2.00% = 1,766,400
Sum = 386,400 + 2,387,000 + 1,766,400 = 4,539,800
Difference: Old royalty - New royalty = 23,632,000 - 4,539,800 = 19,092,200