Common use of For Other Minerals Clause in Contracts

For Other Minerals. Net Smelter Returns, in the case of Other Minerals, shall be determined by multiplying (i) the Monthly Production by (ii) the average of the New York Commodities Exchange final daily spot prices for the preceding calendar month of the appropriate Other Mineral, and subtracting from the product of (i) and (ii) only the following if actually incurred: (a) charges imposed by the Payor for smelting, refining or processing Other Minerals contained in the Monthly Production, but excluding any and all charges and costs related to Operator’s xxxxx or other final processing plants constructed for the purpose of milling or processing Other Minerals, in whole or in part; and (b) penalty substance, assaying, and sampling charges imposed by the Payor for smelting, refining, or processing Other Minerals contained in the Monthly Production, but excluding any and all charges and costs of or related to Operator’s xxxxx or other final processing plants constructed for the purpose of milling or processing Other Minerals, in whole or in part; (c) the net amount of mining and severance taxes assessed directly on the production of Other Minerals, but excluding without limitation all such taxes paid directly by Franco and any and all taxes based upon (i) the net or gross income of the Operator and (ii) the value of the Property or the privilege of doing business, and other similarly based taxes; (d) all reasonable transportation costs to a smelter, mint or refinery including, without restricting the generality of the foregoing, any and all costs of insurance in respect thereto; and (e) costs and expenses of marketing, if any. In the event smelting, refining, or processing of Other Minerals are carried out in custom toll facilities owned or controlled, in whole or in part, by Operator, which facilities were not constructed for the purpose of milling or processing Precious Metals or Other Minerals, then charges, costs and penalties for such smelting, refining or processing shall mean the amount Operator would have incurred if such smelting, refining or processing were carried out at facilities not owned or controlled by Operator then offering comparable services for comparable products on prevailing terms, but in no event greater than actual costs incurred by Operator with respect to such smelting and refining. In the event Operator receives insurance proceeds for loss of production, Operator shall pay to Franco the Royalty percentage of any such insurance proceeds which are received by Operator for such loss of production.