This was an excellent report covering FNC's position for a near-future income generator. It could be even nicer if it explained the difference between the Net Smelter Royalty and Royalty in the report.

A Net Smelter Royalty (or Net Smelter Return) is a royalty that is a certain percentage of the revenue generated by the mine by selling its product, minus the expenses of producing the product, usually with a limit on what can be deducted.

Most royalties include more deductions: the costs of building the mine and infrastructure, the cost of exploring to find the deposit, the cost of repaying the loans needed for construction, and so on. It's possible for a mine to operate for years (indeed, theoretically possible for it to go its entire lifetime if it;s not making much money) without paying a royalty.

The advantage of an NSR is that while it can pay less than a royalty, it starts generating income immediately.

http://agoracom.com/ir/Fancamp/forums/discussion/topics/504580-nsr-net-smelter-return-vs-royalty/messages/1605868