GREY:RNKLF - Post by User
Post by
pierregon Apr 09, 2020 4:58pm
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Post# 30895859
Royalty leverage
Royalty leverageRoyalty leverage @Nihilism: https://ceo.ca/rnx?c995bc9884e1 & https://ceo.ca/rnx?65fd6c25df64 « MMX has leverage in that sense, that they don't have to move. But RNX has leverage in that they don't have to mine. So both companies host some leverage to work it out. MMX lowering the royalty, but including a clause about minimum mining amounts, or putting in a tiered system whereby the royalty lessens as more gold is produced, could earn them more money overall while still allowing RNX more profit for increasing mined tonnes and giving them incentive to do so. »
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« If both managements are fair and reasonable, both companies could earn more from a tiered royalty or turning the royalty into a gold purchasing agreement or some other scheme which encourages RNX to mine, while still getting MMX stable revenue. »