Quote:
Originally Posted by crazy_eoj
How does a project never reach payout... unless it's unprofitable?
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You call new projects "expansions" within the same royalty ring fence of an old project that is approaching payout. It basically piles a bunch more capital into the "to be paid off column" and keeps that original project in pre-payout for much longer.
It's a bit of a grey area, but for the most part I agree with Harry Lime. New projects should be their own ring fence and the scope of old projects should largely be frozen for royalty purposes. However companies should still be allowed to include true ongoing sustaining capital in the scope of the original ring fence.