RoyaltiesNovember 20 2011 at 7:45 AM
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|Ralph Hamilton |
Response to Re: Royalties are on gross sales - not after expenses
Royalties (usually paid to the Govt0 are on the gross tonnage FOB.
However "the devil is in the detail" or at least in the fine print. What everyone has to be careful of is the "share of the profits" arrangements. Hihlands Pacific pulled that swiftie for years.
It arranged with its finaciers, to ship more than it ever produced, and at a price below market price too. Therefore, it had to buy at spot prices to make up the shortfall, Thus the finacier was making $A300.00 to $A400.00 an ounce, without getting off his chair. Nice work if you can do it, eh?
Thus, any LOs who were to get a share of the profits, got SFA.
So the point of my posting is: Be very careful. Make sure of what the clauses mean, before anything is signed. Make sure of what all clauses mean. Get an independent lawyer, even if you have to go overseas to get one. The wording of these contracts, is designed to conceal, rather than elucidate.
Even with my intimate knowledge of my native tongue, I would not trust myself to interpret one of these contracts, without professional help. Nau, Engis i no Tokpes bilong ol. Man i meri bilong village, i no kisim save long dispela contract. Plus, you have the politicians and their hangers on, urging you to sign things, so they can get paid by the companies for sevices rendered., or rip you off themselves. Remember. In business, 90% of the people ho cross your path, are trying to swindle you.
Mi tok tru mate......Ralph.
- Re: Royalties - George Hamlovabitch on Nov 21, 2011, 10:36 AM
- Edit - Ralph Hamilton on Nov 21, 2011, 10:52 AM