Tanya Jakusconek: Yes. I just because those ones we cover already from the operator, so we kind of well know those ones and those are already in our model. So, I’m just wondering maybe there are some smaller ones that we can get to, but we’ll take it offline. My second question is just on the transaction environment, if I could. Every call, I ask every company, what they’re seeing out there. I asked again, I know in the Investor Day, but wanted to circle back because it’s very dynamic. So, I wanted to hear from you, again, today what are you seeing size-wise for deals. Hopefully, by now, Newmont have put and open the data room for these Newcrest and other assets for sale. So just wanted to see size-wise understand whether it’s still mine build, financing, balance sheet repairs. And then I want to understand the structure of the deals, whether you’re focused mainly on just royalty streams? Or would you also look at equity and/or debt component. So that would be helpful.
Bill Heissenbuttel: Sure. Lots to unpack there. The one comment — I’m going to turn this over to Dan, the one comment, I would say, is we’re not going to comment on anything specific that we might be looking at, but Dan can certainly give you a feel for what we’re seeing.
Dan Breeze: Sure, Bill. Tanya, thanks for the question. And I think you’ve heard this from some of our peers publicly already with their comments. The pipeline is pretty robots at the moment. I think that’s the best way to describe it. We’re quite busy right now with reviews on a number of opportunities. And I think the higher commodity prices are really starting to settle in, Tanya, I think that’s moving projects forward and I think we’re seeing the equity markets really opening up and that source of capital is coming into the sector and that helping projects move forward as well. But — I think as we look at the debt markets, and thinking out and looking at where interest rates are, where they might remain elevated for a while.
I think that’s also going to keep counterparties interest of looking at other sources of capital like royalties and streams. So, I always tell you that the size range, Tanya is the $100 million to $300 million level. I think that’s broadly fair still here. We are aware of a few larger opportunities in the market. And I think it’s fair to say that those opportunities are generally related to improving balance sheet and liquidity and so forth, mainly over base metal assets that we would be on a byproduct, precious metals in those cases. But I also just mentioned, you heard from Paul in his comments on our liquidity, and we have lots of internal liquidity with almost $1 billion to look at those kinds of transactions as well. So, we feel pretty good about the market.
On the smaller end, it’s still very busy for us. I mentioned the equity opening up a little bit, but there are some interesting sub $100 million type opportunities earlier stage projects and whatnot that we’re looking at as well. So hopefully, that gives you a little bit of flavor from our side with what we’re seeing.
Bill Heissenbuttel: Yes. And let me just complete the last part of your question, which was doing equity and debt. And I think we’ve been pretty consistent. We’re relatively open to it. It’s not our core business. We wouldn’t earn our valuation premium on a debt investment or an equity investment. At the same time, if the price is — the stream is a very large percentage of an overall financing package where we can provide all of those things, but we’re certainly open to it. You’ve seen us do debt at Khoemacau and Wassa. So certainly, wouldn’t close the door on it and say we’re not going to play in those markets, but the stream has got to be the price.
Operator: [Operator Instructions]. Our next question comes from Brian MacArthur from Raymond James. Please go ahead.
Brian MacArthur: Just back to Cosmos’ question about the tax. So, if I understand this right, you paid $13 million in tax on the $25 million cash payment from Centerra. Is that all cash? And secondly, like why is the tax rate so high on that?
Bill Heissenbuttel: Paul, I’m going to hand that right back to you.
Paul Libner: Yes. No, it’s a fair question. And again, this really goes back to that the accounting and the tax on this transaction, it was unique, and it was unique in the sense that the treatments differed. So — for U.S. income tax purposes, the U.S. income inclusion rules, the value of the consideration that we’ve received when we entered into the transaction, that was immediately taxable. And again, the consideration that we received was the $24.5 million, the value of the 50,000 deferred gold ounces as well as the free cash flow interest. So, when we took that entire value, which the majority of that was the value of the deferred gold, which I think was roughly $2,000 an ounce when we enter in the transaction, that’s about $100 million. So, that’s $125 million. So, then you apply the GILTI rate to that, which is at 13% and that gets you roughly to that $13 million that we paid in taxes there in Q1.
Brian MacArthur: And that was all cash?
Paul Libner: Correct.
Brian MacArthur: Not deferred or anything, you don’t. Okay.
Paul Libner: Correct. Yes. And then as I mentioned to Cosmos, going into the future, Again, that value of that deferred gold, it could go up. And if that happens, then at a future date when we receive the delivery of those cold ounces, we could pay that same cash tax, the GILTI rate 13% in the future. But on the flip side, again, too, if we — if that value should go down, then we could see a cash tax benefit come through.
Brian MacArthur: Okay. But we’re talking all cash to this, not just book accounting?
Paul Libner: Correct.
