Capex, construction time & payback is key

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CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)

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MoneyK

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Capex, construction time & payback is key

posted on Sep 23, 2020 09:20AM

In 2013, construction was estimated to take 6 years and payback was 6.5 years, for a total of 12.5 years before making a profit!

In the 2019 report, my expectation is that with the new bridge, highway, etc., capex and construction time will be reduced. Also, because SC should generate a lot more cash flow due to the current exchange rate and metal prices, the payback time should be much lower. Overall, I'm expecting this 12.5 years to be reduced in the order of 40 to 50% and this is what will have the most impact on the net present value of this project.

Any other improvements, reducing the cost to extract a pound of copper, will be a bonus.