Lithium Brine Royalty Rate Estimator

Estimate royalty income from lithium brine leases by combining price assumptions, expected tonnage, and the negotiated royalty rate. The tool surfaces annual cash flow, a ±10% price sensitivity band, the production needed to achieve your target royalty revenue, and whether the plan over- or under-delivers versus that goal.

Expected realised price for battery-grade lithium carbonate equivalent (LCE).
Tonnes of LCE your brine operation plans to deliver each year after recoveries.
Royalty share payable to mineral owners (enter 5 for 5%).
Optional — defaults to $12,000,000. Set a revenue goal to calculate the output required to hit it.

Royalty agreements vary widely. Consult legal and financial advisors to review contract language, deductions, and applicable taxes before finalising mineral lease decisions.

Examples

  • Example 1 — LCE price $35,000 per ton; output 8,000 tons; royalty 5.00%; default target $12,000,000 ⇒ Annual royalty cash flow: $14,000,000.00 | ±10% price sensitivity range: $12,600,000.00 to $15,400,000.00 | Output needed to hit target royalty: 6,857.14 tons | Target royalty surplus: $2,000,000.00
  • Example 2 — LCE price $28,000 per ton; output 6,500 tons; royalty 4.50%; target $9,000,000 ⇒ Annual royalty cash flow: $8,190,000.00 | ±10% price sensitivity range: $7,371,000.00 to $9,009,000.00 | Output needed to hit target royalty: 7,142.86 tons | Target royalty shortfall: $810,000.00

FAQ

Can I account for sliding-scale royalties?

Run the calculator at each price tier with the corresponding royalty percentage, then weight the results based on your price outlook to approximate sliding-scale contracts.

How do transportation or processing fees impact the estimate?

Deduct those costs from the LCE price input if your royalty is calculated on net proceeds instead of gross revenue, or reduce the royalty percentage accordingly.

Does the tool include recovery or grade variability?

No. Combine it with resource or processing models that translate brine grade and recovery rates into saleable tonnage, then feed the resulting LCE output into this calculator.

What about government royalties or taxes?

Enter the post-tax royalty rate if sovereign royalties apply on top of private agreements, or subtract expected statutory royalties from the target revenue before running the calculation.

Additional Information

  • Royalty cash flow multiplies realised LCE pricing by annual tonnage and the negotiated royalty rate.
  • Sensitivity band applies ±10% swings to price assumptions while holding volume and rate constant to gauge upside and downside.
  • Target output shows how many tons of LCE must be produced to meet a royalty revenue goal at the entered price and rate.
  • Surplus or shortfall quantifies how far the projected royalty deviates from the revenue target, highlighting headroom or gaps.
  • Assumes royalties are paid on gross revenue without deductions; adjust inputs if net smelter return provisions apply.

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