RE: RRR : Mt Ida Royalty & Juno, ASX [Mt Ida], 2 June 20262 Jun 2026 15:46
Some figures: From the Mt Bevan PFS, the "adjacent" magnetite project to Juno's Mt IDA, the GROSS REVENUE a year is A$1.8 BILLION TO $2.5 BILLION for a 12MT production rate which will require a CAPEX of $3bnillion USD which is A$5billion. Cost is $90/t. I am using these figures as is the norm to use PEER analysis. The synergies of Mt Bevan & Mt Ida sharing Juno's infrastructure is compelling given Juno owns the North West Menzies siding [to load on to the rail and on to Port Esperance] , Cassini village camp [mining], 27km HAUL ROAD now being constructed MAY 2026 , water permits etc. As one Lundy said on Twitter, no point having double of everything.
So, taking 1.5% RRR GROSS REVENUE ROYALTY ON MT IDA comes to 1.5% x A$1.8 billion to A$2.5 billion gross revenue comes to==== A$27MILLION PER YR=== for the master royalty of 1.5% which Red Rock Resources Plc holds. RRR SOLD 1/2 of this royalty of 0.75% to Anglo-Pacific, then a FT 250 Royalty co when there was NOTHING in the Yilgarn, Western Australia ie ==NO MT BEVAN & GINA RINEHART == in 2012 for US$14m [$8m still to be paid upon 2 milestones].
So, RRR could therefore earn $27M OR $37.5 MILLION AUD [A$] A YEAR ON THE MASTER 1.5% MT IDA ROYALTY. =GROSS REVENUE=. In British £, take 1/2 at approx conservative exchange rates = £13.5 MILLION " a year [A$1.8bn gross revenue] or £18.75 MILLION a year. DR MICHAEL GREEN, a well known mining analyst @GECR in his 12 Feb 2012 broker note commissioned by RRR stated : $8M USD for 50 YEAR LIFE OF MINE = $400M cash flow over the life of mine at Mt Ida. FOR THE AVOIDANCE OF DOUBT: So, looking at it which ever way , given Edison broker report in 2013 had higher figures for RRR remaining 0.75% Royalty than Dr Green.
The Mt Ida Royalty ASSET was tweeted on Twitter recently and both Helpful and Chairman Bell stated, last RRR RNS in 2012 which will be the time of the said sale to Anglo Pacific, now called ECORA Royalties [listed in UK, Canada etc].
OF INTEREST: I have NOT VERIFIED yet as I have not tweeted to Chairman Bell to check but I understand from general search subject to MISTAKES that the MT IDA magnetite [green iron ore which fetches a higher price than hematite shovel and ship [DSO] ] is "better" or more superior , lets put it that way.
WILL RRR ROYALTY ONLY TRIGGER ON PRODUCTION? NO, As Helpful has provided the link to the JUNO 2021 IPO Admission Document REPLACEMENT, the RRR royalty is on PAGE 234, NOTE 4 and it states in black and white: "ON PRODUCTION OR OBTAINED." Operative word "obtained" means taken via shovel or dug up for mixing etc. Hence, the coming JV if it occurs will be of interest as the JV PARTNER will specifiy what is intended and the picture will be in a definitive legal metric. ROYALTY 101: The closer it is to a legal trigger etc the market moves forward and by the time of the contractual trigger IF, RRR has it legally water tight means the BUYER then will have to pay a HIGHER price as Theory of Royalties/FACTORI
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