Jurek, do the royalties apply on a pod-by-pod basis, or to the project as a whole. Perhaps they have the entire land asset demarcated as a single project? If that was the case, then perhaps the Algar costs are added onto the GD costs, which means that even though pod1 production revenue will exceed pod1 costs, pod1+pod2 production will not exceed pod1+pod2 costs.

Failing that, at least the royalty rate, once past the gate, should average out to about 15.5%? Ie. pod1 will be at 30% and pod2 will be at 1% for a period of 18-24 months.