AVZ Discussion 2022

[Hodlandwin69]

What are royalties in selling mining assets??

 

[Aeolian]

Kobold can f*** right off with a 67.5cps. Absolute bare minimum is “NET” AUD$1.38 actually in shareholders bank accounts (that being a minimum of at least the ATH).

Anything less, Kobald, Rio, the DRC and all of them can f*** off and let’s see how they like ICSID play out.

 

[Mute22]

NF's inbox tomorrow.

 

[Winenut]

What are royalties in selling mining assets??

I suspect a trailing income from the mine when in operation

A percentage of revenue in perpetuity while the mine operates

Royalties often apply in resource activities

Bass strait oil is a case in point

 

[aanti.dumb]

$0.675 AUD per share + royalties.

Sounds like we get royally screwed, I really hope that's not true. I would rather go to court.

Is this RIO buttering up a lowball offer?

This could work but depends on what the royalty is. Will take 18 months to 2 years for the mine to begin operations but when operating imagine a gross royalty paid quarterly of 15c per share for 30 years..

Assume share holding of 500,000 x $0.675 = $337,500 up front cash.
Then when the royalties start (again depends on what the royalties are)

500,000 x 0.15 = $75,000 (quarterly?) x 30 years = 9 million

Also leaves AVZ to begin new projects, preferably in Australia.

Its fun to think about but $12 a share cash is a pipe dream.

 

[Winenut]

Kobold can f*** right off with a 67.5cps. Absolute bare minimum is “NET” AUD$1 actually in shareholders bank accounts and really the minimum should be at least the ATH.

Anything less, Kobald, Rio, the DRC and all of them can f*** off and let’s see how they like ICSID play out.

IMO the absolute "bare minimum" is well beyond AUD$1 "net" in shareholder's bank accounts......well beyond

 

[JNRB]

Ultimately, at that price I can't see CATH letting this slip away.
I will tin-foil-hat that the Chinese are somehow behind the lowball offer being leaked through the 'reputable' AFR

 

[Goldenboy]

I suspect a trailing income from the mine when in operation

A percentage of revenue in perpetuity while the mine operates

Royalties often apply in resource activities

Bass strait oil is a case in point

View attachment 80814

$1.50 per share nett in the bank with $1 per share per year fully franked in perpetuity and that’s all in US $ ( goes with out saying ).

 

[Hodlandwin69]

Royalties doesn't sound too bad tbh

 

[Winenut]

This could work but depends on what the royalty is. Will take 18 months to 2 years for the mine to begin operations but when operating imagine a gross royalty paid quarterly of 15c per share for 30 years..

Assume share holding of 500,000 x $0.675 = $337,500 up front cash.
Then when the royalties start (again depends on what the royalties are)

500,000 x 0.15 = $75,000 (quarterly?) x 30 years = 9 million

Also leaves AVZ to begin new projects, preferably in Australia.

Its fun to think about but $12 a share cash is a pipe dream.

Not sure where you get numbers like that

15c royalty per share every quarter is no more in the realms of possibility than $20 per share up front with tax breaks

 

[aanti.dumb]

Not sure where you get numbers like that

15c royalty per share every quarter is no more in the realms of possibility than $20 per share up front with tax breaks

What's a more realistic royalty in your opinion?

 

[Winenut]

Let's not confuse Royalties with Dividends peeps........just sayin'

edit (not directed at you there a.d)

 

[RHyNO]

how does this ding dong get his numbers! The only number in here with absolutely no supporting evidence. Who is putting these details to the media? The lazy pricks who want to pay us SQUAT for our Li. Dream on rio. All time highs at least!!

 

[Hodlandwin69]

Let's not confuse Royalties with Dividends peeps........just sayin'

edit (not directed at you there a.d)

What's the practical difference?

 

[aanti.dumb]

Let's not confuse Royalties with Dividends peeps........just sayin'

I agree, just easier for me to wrap by head around.

 

[Winenut]

What's a more realistic royalty in your opinion?

Good question and you've made me stop to ponder my intitial reaction

The calculation method needs to be considered

Fixed per unit of output, % of revenue, % of net return

Really haven't run the numbers so I think your question is very valid and yeah....I'm not quite sure of the answer

Good point for further discussion and research

 

[Winenut]

What's the practical difference?

Franking credits....

EDIT. Possibly.....might depend who or what entity receives the royalty and how it is treated as income in the hands of the recipient

 

[Hodlandwin69]

What is concerning is "if all goes well AVZ could on-sell the Manono interest for UP TO 1.5BILLION"
Up to?!?!
Wtaf

 

[BRICK]

RIO can take that and fk off.
How does such a number even leak when clearly must be a joke

Jeeze feel like we are in a gangbang.

Getting fucked by everyone, even our own countrymen.

Just goes to show the significance of the resource.

 

[Winenut]

So now I'm down a rabbit hole on Royalties thanks to RIO and the Australian and a US Special Envoy