Homestake acquired Plutonic Resources at the end of April 1998. Plutonic shareholders were issued 3.4 shares in Homestake for every 10 Plutonic shares held. Western Australia introduced a royalty on gold production of 1.25% from July 1998. The royalty increased to 2.5% in July 2000 at gold prices above A$450/oz; remaining at 1.25% if the price is below A$450/oz. In the accompanying analysis we have assumed an effective royalty rate of 1.875% for calendar 2000 and 2.5% for 2001 onwards.