4       Royalty formulae

(1)     The percentage mentioned in section 3(1) is-

0.5 + [earnings before interest and taxes/(gross sales in respect of refined mineral resources x 12.5)] x 100.

(1A)   The percentage mentioned in section 3(1A) is-

2 + [earnings before interest and taxes/(gross sales in respect of refined mineral resources × 12.5)] × 100.

[Subsection (1A) inserted section 55(1)(a) of Act 17 of 2023 with effect from 1 January, 2024 and applicable in respect of years of assessment commencing on or after that date]

(2)     The percentage mentioned in section 3(2) is-

0.5 + [earnings before interest and taxes/(gross sales in respect of unrefined mineral resources x 9)] x 100.

(3)

(a)     The percentage determined in terms of subsections (1) and (1A) must not exceed 5 per cent.

[Paragraph (a) substituted section 55(1)(b) of Act 17 of 2023 with effect from 1 January, 2024 and applicable in respect of years of assessment commencing on or after that date]

(b)     The percentage determined in terms of subsection (2) must not exceed 7 per cent.