But that is true in either case, so it isn't worth worrying about when discussing price movements.
If you do the maths on it, A40 actually ends up with a higher price net of royalties without it, albeit a few dollars/tonne.
5% royalty + 15% repayment from US$880/t = US$704/t net price
5% royalty from $US750/t = US$712.5/t net price.
If they can lock in pricing at US$750 for Burwill and a new offtake partner, the incoming cashflow will be indistinguishable from having maintained the US$880 deal.
Cheers
A40 Price at posting:
20.0¢ Sentiment: Hold Disclosure: Held
