Good question. I have no insight. The right royalty level clearly depends on cost structures. If it's not that profitable to extract gold, a high royalty would deter capital investment. We can't tell whether the rate is sensible without knowing something of costs.
In fact, it’s incredible that such a one sided deal has been negotiated for what is literally our patrimony; our national inheritance. It seems like either incompetence, corruption, or theft. No?
2% of net profits on gold seems ridiculous. Nz has exported gold since our earliest days, why do we not have an soe or commercial royalty level?
Good question. I have no insight. The right royalty level clearly depends on cost structures. If it's not that profitable to extract gold, a high royalty would deter capital investment. We can't tell whether the rate is sensible without knowing something of costs.
They make about $1500 profit per ounce mined.
Of which 2% is not very much.
In fact, it’s incredible that such a one sided deal has been negotiated for what is literally our patrimony; our national inheritance. It seems like either incompetence, corruption, or theft. No?
Hi Tim, happy new year! …any thoughts on the above? Might it be worth your critical attention? All the best for 2025