Royalties › Kambalda Royalty
The Kambalda Royalty Deed is between WMC and Harbour Capital (WA) Pty Ltd, a wholly-owned subsidiary of Metals X.
The royalty is payable over lands comprising Certificate of Title Volume 1929 Folio 287 and the whole of the land comprising Certificate of Title Volume 1676 Folio 056 (Figure 1). The Kambalda Royalty has a terminal date of 31 August 2009.
Figure 1 — Kambalda Royalty Area
Metals X receives a royalty of 1.35% of the total contained nickel in concentrate or ore produced and dispatched from the royalty area.
The price received by Metals X is the lower of the LME Nickel Settlement Price Average or the LME Nickel 3 months seller average, both expressed in US dollars and then converted back into Australian Dollars average of the Hedge Settlement rates for the months making up the quarter.
The Kambalda royalty has a terminal date of 31 August 2009.
The production and financial summary of the royalty for the current year compared with previous years is summarised below:
| Kambalda Royalty | 2006 | 2005 | 2004 |
|---|---|---|---|
| Ni in Concentrate Despatched | 9.71 Kt | 10.74 Kt | |
| Avg. Ni Price Received A$/tonne | 18,985 | 18,642 | |
| Royalty Receipts A$ | 3.94 Million | 2.49 Million | 2.70 Million |
The royalty areas held by Metals X covers the northern portion of the Kambalda dome which is one of the world's most significant nickel producing regions. In particular the royalty area covers significant current and previous nickel mines. The royalty area currently captures production from the Long and Otter-Juan nickel mines. The royalty gives Metals X continued exposure and benefit from additional production and exploration of highly prospective nickel tenure.