Agoracom: Small Cap Investment - Copper Fox Metals Inc. - NPV

Welcome To the Copper Fox Metals Inc. HUB On AGORACOM

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%)

Dear Agoracom Family,

I want to thank all of you for your patience with us over the past 48 hours and apologize for what was admittedly a botched launch of our new site.

As you can see, we have reverted back to the previous version of the site while we address multiple forum functionality flaws that inexplicably made their way into the launch.

To this end:

1.We have identified 8 fundamental but easily fixable flaws that will be corrected in the coming week, so that you can continue to use the forums exactly as you've been accustomed to.

2.Additionally we will also be implementing a couple of design improvements to "tighten up" the look and feel of the forums.

Sincerely,

George et al

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MoneyK

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NPV - the basics

posted on Sep 26, 2020 11:38AM

In the next couple of posts, I'll try to elaborate more on the approach I'm using to calculate NPV's. I don't claim being an expert, just sharing what I understand from it and hope it can help interested people to learn more about this concept. First let's start with the basics.

1) You need a calculator. I found this one was pretty easy to use.

https://www.calculatorsoup.com/calculators/financial/present-value-cash-flows-calculator.php

2) You need to understand the different parameters

Interest rate: value that money loses for each year that passes (8% in our case)
Compounding: number of periods in a year where the interest is compounded (assuming 2 periods in our case)
Cash flow: amount of money in and out of the business

3) For Schaft Creek (100%), see below the approximate stream of net cash flows (in millions) based on the 2013 FS.

Year -5: -100	Year 1: -225	Year 6: 725	Year 11: 50	Year 16: 25
Year -4: -300	Year 2: 800	Year 7: 625	Year 12: 200	Year 17: 400
Year -3: -1000	Year 3: 650	Year 8: 525	Year 13: 425	Year 18: 675
Year -2: -1000	Year 4: 475	Year 9: 425	Year 14: 575	Year 19: 800
Year -1: -825	Year 5: 575	Year 10: 250	Year 15: 225	Year 20: 900
				Year 21: 325

4) Entering all these values in the calculator should give you a NPV (8%) around 520M.

Conclusion: The 2013 FS had a positive result of 513M, so the assumptions used above provide good enough results for the purpose of the exercise.

IMO.

MoneyK

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