Impact on Revenue Due to Change in Royalty Expenses in OZ Minerals

RESEARCH PROJECT

Table of Contents
TITLE..............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
Overview of the Research:..........................................................................................................3
Background of Research :............................................................................................................3
Significance of the Research:......................................................................................................3
Aim of Research:.........................................................................................................................4
Research Objectives:...................................................................................................................4
Research questions:.....................................................................................................................4
Time Scale:..................................................................................................................................4
LITERATURE REVIEW................................................................................................................5
Causes of Royalty expense in an organization............................................................................5
Impact on Revenue due to Royalty Expenses in OZ Minerals....................................................7
RESEARCH METHODOLODGY.................................................................................................8
Types of Investigation.................................................................................................................8
Research Design..........................................................................................................................8
Research Philosophy....................................................................................................................9
Data collection tools....................................................................................................................9
Ethical Consideration...................................................................................................................9
FINDINGS AND ANALYSIS......................................................................................................10
DISCUSSION................................................................................................................................13
CONCLUSION AND RECOMMENDATION............................................................................14
CONCLUSION..........................................................................................................................14
RECOMMENDATION.............................................................................................................14
REFERENCES..............................................................................................................................15

TITLE
“Impact on Revenue Due to Change in Royalty Expenses in OZ Minerals”
INTRODUCTION
Overview of the Research:
Revenue is an income which business earn from their regular course of business exercise
such as sales of goods and services. Revenue is majorly affected by the changes in royalty
expenses. Royalty is payment made by one party, the licensee or franchisee to another which
owns a particular asset, the licensor or franchisor for right to continuous use of that asset. It is
usually paid monthly or quarterly and is calculated as percentage of gross sales. The mining is a
very old and major source of revenue for organisations and for government. The OZ mining is an
Australian copper mining organisation is selected for understanding the concept. It is a mining
organisation which has its major focus on generating sales and revenues.
Background of Research :
In present era of dynamic business environment, the main objective of every business is
to earn revenues and accomplish competitive advantage. There are different variables which
make impact on business and its revenues such as enhancement in royalty expenses and sales etc.
To better understand this concept OZ Mineral is being selected for this present report. It was
founded in year 1932 and it is a modern mining company which is based in Adelaide, Australia.
The company has a growth strategy which is mainly focuses on creation value for stakeholders.
OZ Minerals was formed in 2008 by merger of two Australian non-ferrous metals mining
businesses that is Oxiana and Zinifex. Organisation is dealing copper mining at a large level and
generating its revenues (Wetcher-Hendricks, 2011).
Significance of the Research:
The particular research work is based on the study of impact on revenues of organisation
due to the change of royalty expense. Royalty is an expense which is paid by large organisation
to the government or owner of particular asset for utilization of that asset. So if there is any
changes made in royalty expenses than it would depict changes in company's revenues (Nagle &
Müller, 2017). This is a financial as well as management research which shows the statistical
part and theoretical part of topics (David, 2011). The mining industry is very old and effective
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