Wow, not what I expected but I'm trying to wrap my brain around...

Wow, not what I expected but I'm trying to wrap my brain around some numbers.

As RD says, $45 Mill cash if FMG go ahead with the development. Nice, and I really like the non refundable nature of the $25 Mill up front. FMG are serious.

Appears to be zero costs for IOH going forward.

The 2%-5% royalty range... I'm assuming this will move on a sliding scale depending on the FOB price (I believe the spot price is $142 p/t at the moment). So I'm thinking they've agreed to pay 5% if the FOB price sinks to (say) $80 p/t and 2% if the price rises to (say) $200 p/t and they will slide the royalty up or down depending on the FOB price to deliver about $4 p/t to IOH. Make sense? I'm just guessing here but 2%-5% is a big range so it's hard to get a fix on that...

Anyway, IV at PFS was flagged as 12-15Mtpa so we might be looking at $48Mill-$60Mill p/a if my assumptions are correct and the royalty is $4. To be honest anything less would be disappointing and surely $4 p/t for a product that currently sells at $142 p/t is not too much.

I especially like the Maitland River mention in this deal. We can use the $25 Mill to drill the guts out of it and complete a few studies there...

Overall I like it, it's probably not as much as we had all hoped for but I think once again Alwyn deserves some praise as he has brought a serious player to the table & made a deal happen.