Fortescue Western Hub FOB royalties
There's been a bit of chatter about the FOB royalties that Cullen currently holds and a bit of "misinformation" that the royalties will earn money soon for Cullen Resources now that the Fortescue Western Hub is operational.
- The only projects approved for mining in the Western Hub are Eliwana and Flying Fish with Flying Fish coming online later. Wyloo is not part of the development and therefore the royalty payments won't happen for some time
- Eliwana and Flying Fish will be around for a number of years (10+ year mine life). Therefore it may take some time before Wyloo will be approved for development by Fortescue
- The map attached also shows that Wyloo is not in the blue box (area approved for mining) of the Western Hub. In fact, it falls far west of "The Edge" which is outside the map.
For those holding due to the royalties and potential cashflow from FMG, I'm not attempting to downramp. Just want to highlight the fact that it could be a long wait. I think CUL in most of their presentations never highlight this fact with the expectation that the FMG royalty payments could be realised soon.
I used to hold CUL but sold out after realising the poor communication on the likelihood of Wyloo being approved by Fortescue when they probably already have their hands full with Eliwana and Flying Fish. Optimisitic case for Wyloo being approved for development would be 2-3 years but definitely not within a year. Also my guess would be the Brockman Syncline and The Edge will be approved next before Wyloo.
