Brian MacArthur: Okay. My second question and maybe this is better off-line, it talks about you got to — the cash consideration of — and then the cash flow interest received of $25 million. Why is it $0.5 million for that free cash flow interest? I assume that’s calculated on an NPV basis post 2030 or something. But on the offset of that, you might have to make cost [indiscernible] support payments. So, like if it’s too complicated, we take it offline. But like I’m just not quite sure I understand where those values came from. And the reason I asked is I’m still trying to feel like — figure out the value of the deal, right, because there’s if it’s cash tax payment, it changes what the value of the deal is.
Bill Heissenbuttel: Yes, Brian, let me just focus on the free cash flow royalty a little bit. Okay. That was, as I called it, when I asked for it, it’s idiot insurance, right. The metal prices go up so high. They didn’t actually need our cost support. The mine would have been fine, and we didn’t need to change anything. So, all we wanted was something to test. If the metal prices go up really, really high, and this thing is making cash — is cash flowing. I want a share in it, even to a small amount, and it’s carried. We don’t have to contribute to cost. It’s not a joint venture interest or anything like that. And I will say that when we were doing our calculation at the time and at the prices — the long-term prices we were using, there just wasn’t a lot of free cash flow that we thought might be there.
And so, we really heavily discounted it, and we just came up with a value of $500,000. Now at today’s price, it’s probably worth more. But that — it’s pretty far in the future because you get to 2030, they’ve got to be thinking about expanding the tailings storage facility. They’re going to be costs that will be incurred that would get deducted from any free cash flow interest. So, — it was just — it was something I wanted just to we think — look, kind of dumb for giving up something today if we didn’t need to five or six years from now.
Brian MacArthur: No, it makes sense to me. In fact, I was trying to think about it the other way because if you extend the mine through the 20, 40 or 50 or 60, then doesn’t that thing become quite valuable?
Bill Heissenbuttel: Well, it could be. But all we’ve got right now is a two-year extension of reserves, and they’re working on a PEA. So that might be a conversation to have when the PEA comes out.
Brian MacArthur: Right. Okay. So that was kind of calculated in 2035. I guess. Okay. That helps. Clear.
Operator: [Operator Instructions]. We currently have no further questions. So, I’d like to hand back to Bill Heissenbuttel to conclude.
Bill Heissenbuttel: Well, thanks, everyone, for taking the time to join us today. We certainly appreciate your interest in Royal Gold, and we look forward to updating you on our progress during the next quarterly call. Take care.
Operator: This concludes today’s call. Thank you for joining. You may now disconnect your lines.
