No Shite Romeo
posted on
Nov 15, 2011 06:28AM
Net Smelter Return
NSR royalty is based on the gross
revenue received by the mine less
costs incurred subsequent to
concentrating, which includes
smelting, refining, marketing,
transportation, and insurance. Usually
no provision is made for deducting
direct mine operating costs. The NSR
royalty is simple and straight forward, blah blah. (Pincock et al)
Or something like that. You see them all the time. We didn't get one because DeBeers already has one as someone pointed out. Would have been a decade or so til we saw a cheque anyway so not a huge issue. Also if a company has adjoining properties to mine and an NSR on yours, they can choose to mine theirs and sit on yours for decades more.
I used to have some Probe, and I think that situation occurs there, with Agnico Eagle tho I don't know how that is progressing.
TTFN
LTATW (For Vancouver Folks)
Truck